VZCZCXRO5837
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0444/01 1491209
ZNR UUUUU ZZH
R 291209Z MAY 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4538
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 2290
RUEHAR/AMEMBASSY ACCRA 2847
RUEHDS/AMEMBASSY ADDIS ABABA 2966
RUEHRL/AMEMBASSY BERLIN 1405
RUEHBY/AMEMBASSY CANBERRA 2229
RUEHDK/AMEMBASSY DAKAR 2594
RUEHKM/AMEMBASSY KAMPALA 3014
RUEHNR/AMEMBASSY NAIROBI 5455
RUZEHAA/CDR USEUCOM INTEL VAIHINGEN GE
RUEAIIA/CIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEFDIA/DIA WASHDC
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
RHMFISS/JOINT STAFF WASHDC
RHEHAAA/NSC WASHDC
RUEHGV/USMISSION GENEVA 2138

UNCLAS SECTION 01 OF 05 HARARE 000444 
 
SENSITIVE 
SIPDIS 
 
AF/S FOR B. WALCH 
DRL FOR N. WILETT 
ADDIS ABABA FOR USAU 
ADDIS ABABA FOR ACSS 
NSC FOR SENIOR AFRICA DIRECTOR M. GAVIN 
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN 
STATE PASS TO FISH AND WILDLIFE SERVIE FOR M. GADD 
 
E.O. 12958: N/A 
TAGS: ASEC SENV PGOV PHUM PREL KDEM CASC ZI
 
SUBJECT: ZANU-PF GOVERNOR FORCING HIMSELF ON AMCIT-OWNED CONSERVANCY 
 
REF: 07 Harare 598 
 
------- 
SUMMARY 
------- 
 
 
¶1. (SBU)  After years of successfully avoiding land invasions, 
Zimbabwe's private conservancies now face the threat of forced 
"indigenous partnerships" that--if carried out--will likely deter 
further investment and derail significant conservation gains.  Under 
the Wildlife-Based Land Reform Policy--an internally approved policy 
not backed by legislation--private conservancy owners will allegedly 
have to give up the titles to their land in exchange for a 25-year 
lease and must take on "indigenous" partners to own at least 51 
percent of the property.  Several landowners in the Save Valley 
Conservancy (SVC), including one American, have been summoned to the 
Masvingo governor's office to meet the new ZANU-PF-affiliated 
partners that the governor is attempting to force upon them. 
Importantly, the SVC is the largest privately-owned wildlife 
conservancy in Africa and home to about one fifth of Zimbabwe's 
rhinoceros.  Unlike in Zimbabwe's national parks, rhinos have 
demonstrated high reproduction rates in the SVC thanks largely to 
the Conservancy's vigorous and expensive anti-poaching and 
conservation efforts.  If these partnerships are forced upon the 
landowners, continued investment and vigorous anti-poaching efforts 
will likely wane, further endangering both rhinos and investor 
confidence in Zimbabwe.  END SUMMARY. 
 
----------------------------------- 
Background: Save Valley Conservancy 
----------------------------------- 
 
¶2. (U) The Save Valley Conservancy (SVC) is a privately-owned 
wildlife reserve of one million acres in southeastern Zimbabwe, an 
area commonly referred to as the Lowveld.  The Conservancy comprises 
22 properties that share a common boundary fence.  In the mid-1980s, 
with the end of cattle ranching subsidies and due to continued 
outbreaks of foot-and-mouth disease, landowners hired a consultancy 
firm to evaluate the economic and environmental feasibility of 
converting the cattle ranches back to wildlife.  The study confirmed 
the shift could be difficult and expensive at first, but in the long 
run profitable.  During the late 1980s and 1990s, owners pooled 
their resources and restocked the conservancy by transporting 
elephants, giraffes, black rhinos, white rhinos, and other big game 
to the area. 
 
¶3. (U) When SVC was officially formed in 1991, the 18 original 
owners intended to market photographic tourism.  As tourism declined 
in the past decade, SVC operators began to rely on the more 
lucrative hunting market for the majority of their revenue.  Most of 
the landowners have small lodges where they operate photographic and 
hunting safari operations.  Working with Zimbabwe's parastatal 
Qhunting safari operations.  Working with Zimbabwe's parastatal 
National Parks and Wildlife Management Authority (Parks), the SVC is 
given a quota of animals for hunting in any given year. 
 
------------------------- 
Amcit-Owned Hammond Ranch 
------------------------- 
 
¶4. (SBU) American citizens Weldon and Kathy Schenck purchased one 
property, Hammond Ranch in 1996, converted it from a cattle ranch 
 
HARARE 00000444  002 OF 005 
 
 
into a game ranch, restocked indigenous animals, and joined the SVC. 
 They received approval from the Zimbabwe Investment Center (ZIC) 
and met and exceeded all of ZIC's investment and employment 
criteria.  Their ZIC Permit was recently renewed.  The Schencks 
built a safari lodge in 1998 and have since been operating 
photographic and hunting safaris.  Their combined operations at 
Hammond---including a safari operating and marketing 
partner--generate a minimum of US$250,000 annually for Zimbabwe. 
They employ over 40 people full time and more part time, and provide 
financial and other support to the local communities surrounding 
Hammond. 
 
¶5. (SBU) Like other SVC landowners, the Schencks have made an effort 
to help the surrounding communities.  For example, the Nyangambe 
Embroidery Project started by Kathy Schenck in the community 
adjacent to Hammond to the south provides part time, piece-work jobs 
to over 600 women in the Nyangambe Resettlement Area.  In addition, 
the Schencks are currently funding the development of a unique 
wildlife project in which the Nyangambe community has joined the SVC 
by devoting 7,500 acres of land to wildlife.  The Schencks have 
provided the community with fencing, restocking, anti-poaching, and 
marketing.  The community receives trophy fees, which totaled about 
US$5,000 last year in addition to the meat from all animals shot on 
their land.  This is a first: direct community involvement by a 
community in the wildlife industry without inclusion of District 
Councils (per Zimbabwe's CAMPFIRE program - Communal Areas 
Management Program for Indigenous Resources) and other higher-ups 
which often prevent the financial benefits from reaching the 
community. 
 
------------------------------ 
Land Reform and Indigenization 
------------------------------ 
 
¶6. (U) Because the SVC is conservation land, it has been governed by 
legislation under the Parks Authority and the Ministry of 
Environment, which has saved it from fast-track land reform that has 
redistributed farm land since its inception in 2000.  However, under 
the Indigenization and Economic Empowerment Act of 2008, all 
businesses should seek to have majority indigenous partners 
(reftel), which SVC owners do not have. 
 
¶7. (SBU) Schenck told us that he has been trying to identify local 
partners since 2002.  Last year, working with the Parks Authority, 
the SVC owners established three possible means to bring on local 
partners: (1) current owner plus the local community, (2) current 
owner plus local investor, (3) current owner plus Parks.  All of the 
current owners have a strong desire to bring on additional investors 
who are committed to wildlife conservation and who understand that 
Qwho are committed to wildlife conservation and who understand that 
it is a long-term investment with significant up-front costs and a 
slow financial return. 
 
¶8. (SBU) However, last year the Ministry of Environment (which 
continues to be led by Minister Francis Nhema) reportedly adopted a 
new policy, termed the Wildlife Based Land Reform Policy.  (NOTE: 
After numerous attempts to obtain the policy from the Ministry and 
Parks, a Parks staffer finally sent us a copy of the policy--a 2004 
document that is still marked "draft."  He was unaware of any other 
policy or amendments to this draft document.  END NOTE.)  One 
provision of this draft policy states that when land is acquired by 
the State and re-distributed on a leasehold basis, leases should be 
between 20 and 99 years.  The document further explains that for 
land that remains freehold (as in Hammond's case) the units should 
 
HARARE 00000444  003 OF 005 
 
 
be owned by companies in order to facilitate the transfer of 
shareholders to new participants.  The policy concludes by saying 
that new entrepreneurs that wish to take up shareholdings shall be 
required to purchase the shares in accordance with the Ministry of 
Environment and Tourism (now two ministries, both controlled by 
ZANU-PF).  These applicants will be selected on the basis of their 
ability to purchase equity in the wildlife business, as well as 
their knowledge and commitment to the venture.  However, a group of 
ZANU-PF heavyweights in Masvingo have twisted thi policy--which is 
not terribly egregious on paper--and informed the SVC landowners 
that they need to take on specific "indigenous partners" and trade 
in their title deeds in exchange for a 25 year lease.  The new 
partners have not offered to purchase any shares or make any 
contribution to the conservancy. 
 
------------------- 
Here's Your Partner 
------------------- 
 
¶9. (SBU) On May 13, Masvingo Governor Titus Maluleke summoned SVC 
Chairman Clive Stockil and the SVC Vice Chairman to a meeting on May 
16 to discuss new partners for the Conservancy.  At the meeting, 
attendees saw, but were not given, lists of new partners for various 
properties within the SVC. 
 
¶10. (SBU) Several other landowners were summoned to the provincial 
administrator's office for a May 22 meeting to meet their new 
partners.  The Schenck's local manager, George Hulme, was informed 
that the new partners for Hammond Ranch would be Governor Maluleke 
and Lieutenant Colonel David Moyo.  In the meeting, the governor 
explained to Hulme that the inclusive government had agreed that the 
land reform process would not be reversed and said he was carrying 
out a policy that could not be reversed.  In all, 10 of the 22 
properties have been allocated new partners through this program. 
 
¶11. (SBU) Several ZANU-PF heavyweights either attended one of the 
meetings or were listed as prospective partners.  (NOTE: Most or all 
are affiliated with Emmerson Mnangagwa.  END NOTE.)  In addition to 
Governor Maluleke, those involved include: 
 
-- Minister of Higher and Tertiary Education Stan Mudenge 
-- Former Masvingo Governor Josiah Hungwe 
-- Director of Conservation in the Parks Authority Vitalis Chadenga. 
 Chadenga was involved in the uncompensated takeover of another 
American-owned conservancy in Midlands province in 2002. 
-- Major General Engelbert Rugeje, Chief of Staff to the Zimbabwean 
Army.  Rugeje was previously reported to us for his involvement in 
election-related violence in 2008, particularly for use of the Army 
in intimidating and coercing voters. 
-- Chiredzi South MP Aaron Baloyi.  In 2001, Baloyi and a group of 
Q-- Chiredzi South MP Aaron Baloyi.  In 2001, Baloyi and a group of 
war vets abducted and held a group of game wardens hostage for three 
days while they looted a white-owned farm. 
-- Former Chipinge South MP Enock Porusingazi.  Porusingazi is 
notorious for using violence in Chipinge South.  He was most 
recently involved in bringing a case against the current MP, Mathias 
Mlambo, for obstruction of justice in April 2009. 
-- Former Gutu South MP and Former Deputy Minister of Youth Shuvai 
Mahofa. 
 
¶12. (SBU) The current landowners plan to use their usual strategy of 
not signing anything and avoiding direct confrontation while seeking 
diplomatic and other advocacy to stop the attempted forced 
partnerships.  One particularly vocal German property owner has 
 
HARARE 00000444  004 OF 005 
 
 
received assurances from Secretary to the Prime Minister Ian Makone 
that Minister Nhema has confirmed that no partners will be forced on 
operators.  According to Makone, Nhema confirmed this arrangement to 
Tsvangirai before the May 22 meeting in Masvingo. 
 
¶13. (SBU) Even if the MDC and ZANU-PF figureheads in Harare have 
worked out an arrangement, it appears the ZANU-PF provincial 
authorities in Masvingo are carrying on with their mission to impose 
themselves on SVC owners.  Given that the proposed governor for 
Masvingo province, Lucia Matibenga, is from the MDC, it appears the 
current governor is trying to push the partnerships along quickly 
before Matibenga is sworn in.  Tsvangirai has said the new governors 
will be sworn in "at the soonest opportunity." 
 
--------------------------------------------- --------- 
Rhinos Thrive on Private Land, Face Poachers Elsewhere 
--------------------------------------------- --------- 
 
¶14. (U) In addition to the obvious concerns about these forced 
business partnerships, wildlife stands to lose as well.  Thanks 
largely to the expensive protection and anti-poaching efforts by SVC 
landowners, wildlife has thrived in the Conservancy.  The rhino 
population, in particular, has demonstrated exceptional growth rates 
of 8-10 percent annually in the SVC and other privately-owned 
conservancies in the Lowveld (normal levels are 2-5 percent). 
Currently, over 70 percent of Zimbabwe's remaining rhinos live in 
the Lowveld conservancies, and 20 percent live in the SVC alone.  In 
fact, when we visited the SVC in March, we were fortunate enough to 
see two of Zimbabwe's remaining 282 white rhinos. 
 
¶15. (SBU) Unfortunately, poaching pressure has dramatically 
increased in the last three years.  According to Raoul du Toit, a 
rhino expert with the World Wildlife Fund in Harare, Zimbabwe's 
rhino population declined from 846 in 2005 to 805 in 2008.  Given 
the high rates of reproduction, Zimbabwe's population should have 
been about 980 at the end of 2008, leading him to estimate that 175 
rhinos were lost to poaching during that three year period. 
 
¶16. (SBU) Remarkably, of the more than thirty suspected poachers who 
have been arrested not one has been convicted, even when they have 
confessed or there has been ballistic evidence.  For example, in 
December, poachers were caught at a roadblock near Masvingo with an 
AK-47 rifle and cartridges.  The pair admitted to having the gun 
illegally.  The gun had been seen earlier near a site where a rhino 
was shot, and there were marks in the ground where the rifle had 
been partially buried near the rhino.  However, some evidence was 
not presented in trial and they were mysteriously acquitted of 
Qnot presented in trial and they were mysteriously acquitted of 
possessing an arm of war. 
 
¶17. (SBU) Poaching has been most predominant in Zimbabwe's national 
parks and communal lands where Parks guides lack the resources to 
conduct effective anti-poaching patrols.  Conservationists fear that 
if these partnerships go through, investors will not have the 
resources or will to continue funding expensive anti-poaching 
efforts.  In addition, some believe that ZANU-PF heavyweights in the 
police, military, and Parks (e.g. Chadenga) are behind the 
corruption that is believed to be behind the lack of poaching 
convictions. 
 
¶18. (SBU) In March 2009, the Secretary General of the Convention on 
International Trade in Endangered Species (CITES) contacted 
Zimbabwean authorities asking them to prepare an evaluation of 
Zimbabwe's rhino population and anti-poaching efforts in advance of 
 
HARARE 00000444  005 OF 005 
 
 
next year's CITES conference.  If rhino poaching continues to 
increase and enforcement is lax, Zimbabwe may face consequences at 
the CITES conference. 
 
------- 
COMMENT 
------- 
 
¶19. (SBU) While the inclusive government continues to tout its 
success in achieving unity and moving forward with "problem" issues, 
we continue to see cases of the old guard acting as if nothing has 
changed as they continue with arbitrary arrests, politically 
trumped-up charges, and land seizures.  The saga in the Save Valley 
does not surprise us, but it certainly does disappoint.  Ironically, 
the Minister of Tourism is hosting a conference in a few weeks on 
Tourism Investor Confidence; we hope the Save issue will be raised 
as a barrier to investment.  Although we can hold out hope that 
respect for property rights and rhinos will win the day, we know 
better than to expect ZANU-PF to do the right thing.  In all 
likelihood, the landowners in SVC will face long, drawn out battles 
with their new forced partners as they wait for the implementation 
of pro-business and pro-conservation policies in Zimbabwe. 
 
MCGEE