PRESIDENT Emmerson Mnangagwa’s administration has taken privatisation to an all-time new high.
This week, we learnt of the private development in Victoria Falls under a joint partnership where the State is a minority shareholder.
This is not new, but a continuation of a trend that has been ongoing since the November 2017 coup.
The State is going full neoliberal without any attempts to hide its intentions.
Zimbabwe is now in the “making money” season, serious money, by political exposed persons.
On Tuesday, the Cabinet announced that it had approved a proposed public private partnership for the development of bulk infrastructure on Lot 1 of Jafuta Estate in Masuwe Special Economic Zone, Victoria Falls, between Mosi oa Tunya Development Company and JR Goddard Private Limited.
The proposed development is a diversified, high-value hub integrating tourism, financial services and sustainable real estate on 1 200 hectares of prime land in the resort location.
The Cabinet said the deal encompasses the following: surfacing of 8km of internal road network; the upgrading of 9km of gravel roads; the construction of a 13km water pipeline covering the entire 1 200 hectares and the neighbouring communities; the construction of a package water treatment plant, a sewerage reticulation system, effluent re-use storage ponds, a power sub-station; and the provision of management services for the special economic zone.
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It is important to note that, Cabinet confirmed: “The joint venture will incorporate a 25-year structured profit recoup period, under the management of a proportionally represented board chaired by Mosi oa Tunya Development Company and will be guided by the governance framework to ensure strategic alignment with the objectives of the country’s National Development Strategy 2.”
In simple terms, this is a private or concession city.
It will be in private hands for 25 years after it starts operating, which makes it a 2060 project.
They will be minting money until 2060 from public assets.
For US$66,9 million investment for the construction of the bulk infrastructure, JR Goddard Consortium will have 61% of the project, while the government, through Mosi oa Tunya Development Company, will have a 39% shareholding.
The Victoria Falls development becomes the second city that is privately controlled after new city at Mt Hampden.
The Mt Hampden development shareholding is murky and little has been put in public domain, except that it would be run by an independent board.
It is clear from the developments in the new city to see who is who in the political circles.
The contracts awarded and public land traded show a pattern of the new owners of the city.
We have also noted the privatisation of services such as waste management and water supplies.
Geo Pomona, a company controlled by Dilesh Nguwaya and one of Mnangagwa sons, according to filed company registry documents, is now in charge of waste management in Harare and soon other cities across the country.
Geo Pomona has a 30-year contract to supply waste management to the city.
Thirty years of billing the city and collecting without fail.
This, by any means, is not linked to how clean Harare is: the city has to settle or its devolution funds are channelled to Geo Pomona.
Then enters Farai Jere’s Helcraw Investments, which was awarded a contract to supply prepaid smart water meters to the City of Harare.
This week, the country was made to believe the company has installed 40 000 smart meters.
It’s money in the bag.
And more will be installed before the end of the year.
However, water supplies to residents have not improved.
In fact, another scheme is in the making — Presidential Boreholes for the city.
On Helcraw on water meters, with reports stating that more than 40 000 households in the capital have been fitted with prepaid smart water meters under the city’s ongoing water management modernisation programme, authorities say they are targeting 100 000 houses by end of 2026 financial year.
Said the council: “Currently, the plant is producing on average, slightly over 300 mega litres a day, but with the coming in of Helcraw, production is expected to rise to around 520 mega litres a day, on completion of works currently underway.”
It goes without saying that 529 mega litres a day does not meet the requirements of residents in Harare and the satellite municipalities.
So, in short, private companies are selling a dream and reaping the rewards in hard cash.
Zimbabwe under Mnangagwa is entering a new age, a country where those who can pay for services have their own countries --- cities.
They have their own private boards running their affairs and the rest is left to the vagaries of poor, illiterate councillors and corrupt council executives.
The aforementioned may seem a bit harsh, but mainstream media coverage of Harare are sufficient to be an example on illiterate councillors and corrupt council executives.
It is important not to lose the ball, whether Mnangagwa leaves office in 2028 or 2030 as he openly harbours, the man has changed the administration and provision of services in cities to the detriment of the majority.
He has introduced privatisation on steroids and the trend is now a raging fire.
This is mainly pushed by “making money” and making it in truckloads.
They are using public assets for self-enrichment.
Perhaps, we have to ask with one clear and loud voice: What is in it for the poor working class when cities are privatised?
Do these developments embody the values of the liberation struggle and the people’s struggles?
The short answer is a big NO!
Privatisation has to be stopped or else we will have two states in one country — one for the rich and affluent and another for the working poor and peasants.
I’m out!
