VZCZCXRO5350
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSB #0610/01 2050808
ZNR UUUUU ZZH
R 240808Z JUL 09
FM AMEMBASSY HARARE
TO RUEHC/SECSTATE WASHDC 4751
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RHEHAAA/NSC WASHDC

UNCLAS SECTION 01 OF 02 HARARE 000610 
 
DEPT FOR EEB/CBA 
STATE PASS TO USAID FOR L.DOBBINS AND J. HARMON 
COMMERCE FOR ROBERT TELCHIN 
 
SIPDIS 
 
E.O.12958: N/A 
TAGS: ECON EINV BEXP BEXP ETRD ZI
SUBJECT: BFIF-FUNDED FORUM FOCUSES ON GOOD GOVERNANCE 
 
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Summary 
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¶1.  (U) On April 2, the Institute of Directors of Zimbabwe (IODZ), 
supported by the State Department's Business Facilitation Incentive 
Fund (BFIF) and by local businesses, held its annual Director of the 
Year Award Ceremony highlighting good governance.  BFIF also 
supported a related workshop on the private sector's role in 
speaking out for good governance in the public sector.  The latter 
event generated a frank discussion on why business leaders have been 
so timid in demanding both economic and political reforms from 
government.  Subsequent to the two events, the IODZ announced the 
establishment of a corporate governance resource center as a focal 
area of its activity.  In addition, a private initiative was 
undertaken to develop a Code of Corporate Governance for Zimbabwe. 
A small sum of BFIF support succeeded in nudging the private sector 
forward to participate more actively in strengthening Zimbabwe's 
civil society.  End Summary. 
 
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Encouraging and Rewarding Good Governance 
----------------------------------------- 
 
¶2.  (U) On April 2, the Institute of Directors of Zimbabwe (IODZ), 
supported by the State Department's Business Facilitation Incentive 
Fund (BFIF) and by local businesses, held its annual Director of the 
Year Award Ceremony.  The event recognizes outstanding Directors in 
large and listed enterprises, in small and medium enterprises, and 
in parastatals, non-governmental organizations and public sector 
enterprises.  The Institute of Directors worldwide seeks to take the 
lead in promoting good corporate governance.  In Zimbabwe the 
Director of the Year Awards program is the Institute's premier 
vehicle for the promotion of corporate governance.  In selecting the 
winners, particular emphasis is placed on contributions made by 
nominated companies and institutions to sound corporate governance 
procedures in their respective categories. 
 
¶3.  (U) The guest of honor at the Awards Ceremony, attended by about 
250 leading Zimbabwean businessmen and women and by Ambassador 
McGee, was Ali Mufuruki.  A prominent Tanzanian businessman, 
Mufuruki was instrumental in establishing the Africa Leadership 
Initiative in East Africa.  He addressed the audience on the subject 
of leadership in Africa and related the history of the Initiative. 
 
¶4.  (U) To take maximum advantage of Mufuruki's visit to Zimbabwe, 
the Institute of Directors, again with BFIF support, hosted a round 
table breakfast on he morning of the awards ceremony on the subject 
of leadership and governance in Zimbabwe.  Members of the IODZ 
Council and prominent businessmen and women, including present and 
past presidents of Zimbabwe's dominant business association, the 
Confederation of Zimbabwe Industries, engaged in a lively discussion 
on business leaders' role in moving from success in their respective 
fields to playing a significant role in strengthening civil 
society. 
 
¶5.  (U) Mufuruki challenged the captains of industry to publicly 
demand good governance in the public sector.  Putting attendees on 
the spot, he asked why business leaders had not been at the 
forefront in insisting on reform as Zimbabwe's economy melted down 
and political instability increased in 2008.  Participants, rather 
uncomfortably, admitted their fear of reprisal, both economic and 
political: they mentioned loss of access to deeper concessionary 
loans from the Reserve Bank, loss of contracts with government, 
prosecution on trumped up charges or for contravening onerous 
Qprosecution on trumped up charges or for contravening onerous 
exchange control laws or price control regulations, and the prospect 
of imprisonment or forced exile. 
 
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Private-Sector-Led Follow Up 
---------------------------- 
 
¶6.  (U) Following wide and favorable press coverage of the Director 
of the Year Awards program two related developments have occurred: 
 
 
- The Institute of Directors Zimbabwe has listed the following among 
its Focal Areas for 2009: 1) establishment of an Institute of 
Director Zimbabwe corporate governance resource center; and 
2)establishing the Institute as a point of reference on all matters 
of corporate governance in both the private and public sectors. 
 
- In addition, a private initiative is underway to develop a Code of 
Corporate Governance for Zimbabwe similar to that established in 
South Africa by the King Commission.  The IODZ is seeking government 
support for this private initiative through the Ministry of Finance. 
 It is also seeking assistance from the World Bank's Multi-Donor 
Trust Fund to finance the initiative. 
 
HARARE 00000610  002 OF 002 
 
 
 
¶7.  (U) Comment.  Using a modest amount of USG funding to help put 
the spotlight on governance in Zimbabwe - whether in the private 
sector or in the intersection of private and public sectors, as the 
workshop did - is certainly money well spent.  The fact that IODZ 
and a separate private sector initiative have subsequently taken 
steps to strengthen institutions that support governance is a step 
forward in bolstering this oft neglected yet potentially powerful 
segment of civil society in Zimbabwe.  End Comment. 
 
 
DHANANI