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NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

From austerity to neoliberalism

Opinion & Analysis
Zimbabwe is now a full neoliberal state from the promise of socialism at 1980.  

DEAR Dad, 

IT’S now eight years dad since you left to the land yonder.  

So many things have changed, but the most striking is the politics and our economics.  

Zimbabwe is now a full neoliberal state from the promise of socialism at 1980.  

In my last letter, I told you that Emmerson Mnangagwa took over as President in November 2017 after staging a coup against Robert Mugabe.  

Mnangagwa promised an inclusive growing economy, zero tolerance to corruption, infrastructure development, jobs and enough energy (electricity) for everyone. 

These were sweet words to all who yearned for freedom and prosperity.  

He even brought young and educated ministers into his Cabinet, just like Mugabe in 1980.  

However, the similarities end there as once cannot compare the social development within the first decade of independence compared to the last eight years. 

For a recap, Mugabe made education and health top priorities.  

Primary education and primary health care were entirely free.  

Prices of goods and services were aligned to the minimum wage, which under Mugabe were religiously announced every July 1 during the national budget statement. 

The Zimbabwe dollar was then easily convertible and one of the strongest currencies in the world.  

The mines were churning out ore and industries were bustling with activity.  

Civil servants were among the happiest workers in the region. 

This has all changed. Mining is now dominated by artisanal miners: Miners who have no regard to the environment or laws regulating mining.  

Industries and warehouses are now mega churches or derelict.  

The civil service is now the worst despised employer because of low wages and no signs to get promoted. 

Mnangagwa has hired an Oxford don as his minister of Finance.  

The don is so much fixated with quantitative economics. 

Every year since 2018, he boldly states that the economic is growing.  

He has even told the citizens and the world that the economy has more than doubled in size since 2020. 

The don even says Zimbabwe will be an upper middle income by 2030, with income per capita at above US$3 400.  

Just a week ago, the don said Zimbabwe’s economy will be US$52 billion in 2026.  

This is huge. It means Zimbabwe’s economy will become the biggest in the Sadc region outside South Africa. 

The don, dad, in his first budget statement in 2018, spoke of austerity --- tightening of the belts by the poor.  

It could only be the poor who have tightened their belts since then as Zanu PF honchos and apparatchiks have ballooned in size.  

Some these days can’t walk for 100 metres without being breathless. 

For the first time since independence, citizens withdrawing money have to pay a percentage to the fiscus.  

Banks no longer offer interest to holders of savings accounts.  

The red POSB bank book no longer exists. Bank accounts are now transitory in nature.  

Salaries, for the few privileged 12% of workers still formerly employed, are deposited and withdrawn and in most cases within 48 hours. 

Public schools are no longer funded by the State.  

Even the small amounts appropriated for Basic Education Assistance Module (Beam) are not remitted to schools.  

In 2024, Beam funds were diverted to fund the Sadc Conference. 

Some of the President’s associates have grown very rich since the coup.  

They get advance payment for goods and services to the State, but they never deliver and are never prosecuted. 

Other cronies are now privately offering public services such as refuse collection in towns, private schools and private medical facilities.  

They are squeezing every cent out of the working poor who want an education for their kids or good health. 

The First Lady is the biggest philanthropist at the moment.  

She promotes health, tourism and even teaches women how to cook mufushwa.  

They actually gave it a new name: gastronomy tourism. 

Oh, I was forgetting to tell you that her Foundation has no endowments, but gets some funding from the government for some of its projects. 

This is how far we have progressed. 

There is a new private vault of wealth for the elites.  

It is called Mutapa Investment Fund (MIF).  

It took control of all State-owned enterprises.  

The companies now have been exempted from following procurement laws or paying taxes.  

They are only answerable to the President. 

The Fund can dispose shareholding privately in the companies and even bank the proceeds offshore without parliamentary oversight.  

It is all done in the name of posterity.  

This year, the Fund was valued at US$16 billion. 

Never mind this mind-boggling figure, which is twice the national budget, the government fails to provide water, electricity, sewerage, primary education and primary health to its burgeoning poor.  

The poor, according to the Zimbabwe National Statistics Agency, are now at 49% of the population, albeit in a growing economy. 

This cannot be compared to the President’s thriving private enterprise at Precabe, just outside Kwekwe.  

The farm is highly mechanised and its production figures are 10 times bigger than national average figures.  

Even foreign presidents have visited this tourist attraction and centre of excellence to learn new farming techniques. 

Just a thought, Mnangagwa may still be president in 2030 if Zanu PF wishes triumph over the constitution.  

And the economist don might as well be there perfecting neoliberalism in a once socialist Zimbabwe. 

It would be remiss of me not to tell you about the family. We are doing well under the circumstances.  

We sometimes visit each other, call each other once in a while.  

By the way, your grandson named after you, Samson, wedded earlier this year and even migrated to start a family. 

This is the new reality here.  

I hope you are having frequent family gatherings that side too. 

I still remain hopeful that things may take a turn for the better, having Zimbabwe steered back to a democratic socialist state. 

Till then, dad, I will write to you again in 2028 giving another update of your beloved Zimbabwe. 

Comradely, 

Paidamoyo 

 

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