Private hospitals in Zimbabwe are charging massive amounts of money - in foreign currency - for Covid-19 treatment.
With government hospitals ill-equipped, and with doctors and nurses on strike, the only hope available for those needing treatment is private care - something beyond the reach of many.
“Kindly be advised that all Covid patients are required to pay USD (American dollars) deposits, $60 (R1,080) for casualty, $3,000 (R54,000) for General Ward and $5,000 (R90,000) for ICU (Intensive Care) hospitalisation,” Obedience Ncube, credit controller for the Catholic run Mata Dei Hospital in Bulawayo, said in a statement.
A government worker earns the equivalent of US$30 (R540), which is about half the fee for a basic Covid-19 test at a private hospital.
Nurses this week said “no USD salaries, no work” as they vowed to stay away.
“The salaries we are currently earning are meagre. They amount to slave wages ... to those who have been subsidising our employer by going to work, mostly because you have an alternative source of income, we call upon you to reconsider this and withdraw your labour as well,” the Zimbabwe Nurses' Association (Zina) said.
The situation has been made worse with the skeleton staff at public health-care facilities testing positive for Covid-19, thereby being sent home for quarantine. Sixty-eight nurses (student and managers) tested positive in one day at the United Bulawayo Hospitals and they have since been sent home. They were tested after one patient died of the disease.
The government this month began hiring newly graduated nurses but some of them don’t want to report to work.
“I was assigned to a Covid-19 centre. I won’t go because my contract stipulates that I have three months to report for duty. This is like being deployed to the war front after training and above all there’s no money,” said a male nurse.
In Harare, The Avenues Clinic said it has put in place “elective admissions” whereby “emergency cases should have at least an RTD (resistance temperature detector) done”.
The hospital also said all admissions should provide proof of a Covid-19 negative test.
To date, Zimbabwe has recorded 605 confirmed cases, 166 recoveries and seven deaths out of 68,400 tests.
Zimbabwe’s state-run Sunday mail reported that Zimbabwe has sufficient foreign currency reserves to sustain the reintroduced foreign currency auction system, citing the Central Bank Governor, John Mangudya.
According to the governor, local lenders have almost $1 billion in their Foreign Currency Accounts (FCA).
“It’s about sufficient resources utilization of resources,” Mangudya was quoted as saying in the Harare-based newspaper.
“The first thing is that we do not expect the exchange rate to continue to go up because there is now a formal market of foreign exchange,” he said.
Zimbabwe reintroduced the foreign currency system on June 23, the first time in 16 years, in a bid to curb the local currency rout that was introduced a year ago.
“Just to put things into perspective, the interbank sysytem which we tried earlier in the year failed because the banks could not trade among themselves due to counter party limits, as well as issue of de-risking,” he said.
“The exchange rate will be driven by effective demand from corporates,” he said.
He added that he expects “the exchange rate to stabilize at a level which allows users of foreign exchange to price their goods and services appropriately while at the same time providing good value for money for exporters.”
Every month, Zimbabwe exports $350 million to $400 million and receives $50 million to $60 million as remittances from abroad.
Crackdown on dissent is on the rise in Zimbabwe even as the country is under COVID-19 lockdown. The nation is recording a spate of abductions and torture common under late former leader, Robert Mugabe.
Three opposition activists from the Movement for Democratic Change-Alliance (MDC-Alliance) disappeared in May after being detained by police while on their way to an anti-government protest.
The women were found badly injured outside the capital Harare nearly 48 hours later and immediately hospitalized. They say they were abducted, sexually abused and forced to drink their urine.
Their abusers remain unidentified but as the women were abducted from police custody, it is assumed they were some kind of state agent.
The three women, member of parliament Joanna Mamombe, Cecilia Chimbiri and Netsai Marova, have since been arrested on charges of lying about their abduction and torture.
'Pattern of disappearances and torture'
Their rearrest came as the United Nations expressed its concerns over what it calls a "reported pattern of disappearances and torture that appear aimed at suppressing protests and dissent" in Zimbabwe.
According to the UN, 49 cases of abductions and torture were reported in the country in 2019 alone.
Thirty-eight-year old rights activist Tatenda Mombeyarara, who was taken from his home by heavily armed men in August 2019, is one of these.
After being severely beaten with metal rods, Mombeyarara was dumped in a quarry. At hospital, it was found he had a broken leg and bruised ribs.
During the beatings, Mombeyarara's attackers accused him of being involved in organizing protests.
Mombeyarara also faces charges of subversion from a previous arrest dating back to May 2019.
'Petrified and terrified'
The May abduction and torture of the three opposition activists has made him even more fearful.
"I am petrified and terrified. It is a difficult situation to become a villain when you are the victim," Mombeyarara told DW. "You are forced to decide to keep to yourself to prevent further victimization. You have to remain gagged to heal. The nature of harm caused on you goes beyond physical."
Zimbabwe under President Emmerson Mnangagwa (center) is still intolerant of basic rights, peaceful dissent and free expression, says Human Rights Watch
The identity of Mombeyarara's attackers is also unknown. But human rights organizations say in most incidences, the pattern of the violations points towards the state being the primary perpetrator of the abuses.
Zimbabwe's government, however, has denied any responsibility.
"Government does not engage or permit any of its agencies and institutions to use any methods such as torture, forced disappearances or abductions," Zimbabwe's home affairs minister Kazembe Kazembe said at a press conference last week.
He accused the opposition of working with foreign organizations to destabilize the government of President Emmerson Mnangagwa.
"Torture and forced disappearances are alien to us," Kazembe said. "We believe they have been brought from foreign environments to generate negative sentiments against our government."
There is increasing tension between Mnangagwa's government and citizens as a result of the poor state of the economy.
The cost of living has gone up dramatically from the beginning of the year especially under the COVID-19 lockdown. Inflation is now pegged at over 700% and long winding fuel queues are an almost permanent feature in the country's towns and cities.
Zimbabweans have been calling on the government to address the situation, but it appears as if the state is instead responding by silencing critical voices.
Failure to follow up
Zimbabwe has also been accused of failing to investigate and persecute the disappearances.
"Zimbabwe's failure to decisively deal with cases of abductions disappearances and torture severely undermines the standing of the country within the international community," said Human Rights Watch Southern Africa Director Dewa Mavhinga.
In early 2000, rights violations resulted in the sanctioning of political leaders in Zimbabwe, then ruled by Robert Mugabe.
The atrocities also led to the isolation of the southern African country from the international community.
Analysts say promises that were made in 2017 when Mugabe was removed from power have become empty. Hope was raised but it was naive because the systems used by Mugabe remained intact.
"The country need to end impunity if Zimbabwe is to be respected. Failure to do so undermines the country's reengagement efforts with the international community," Dewa Mavhinga told DW.
Credit: Deutsche Welle
Zimbabwe’s governing party, Zanu-PF, has summoned finance minister Mthuli Ncube and Reserve Bank of Zimbabwe governor John Mangudya to explain the country’s economic meltdown, the Zimbabwe Independent reported.
Members of the party’s most-senior decision-making body are concerned that the economy’s collapse — marked by inflation of 766% and a currency collapse — threaten the party’s popularity and could cost it the 2023 elections, the Harare-based newspaper reported.
The two officials told the party’s leaders at a closed-door session of the politburo that there is little they can do unless the government comes up with an economic-recovery strategy, the newspaper said. Patrick Chinamasa, Zanu-PF’s secretary for finance and acting spokesman for the party, wasn’t immediately able to comment on the Zimbabwe Independent story when contacted on Friday.
President Emmerson Mnangagwa has blamed the economy’s woes on the private sector. He told the same meeting of the politburo that the country’s currency, reintroduced last year, was under attack, Zimbabwe Independent said.
The Zimbabwe dollar is trading at 90 per US dollar on the black market, according to marketwatch.co.zw, nearly four times above the official peg of 25.
Zimbabwe’s central bank is limiting the number of internal bank transfers customers can make to two a day, as the central bank moves to curb trading in the parallel currency market.
Some “entities” were using their accounts to purchase foreign currency using a network of buyers, the Harare-based central bank said in a letter dated June 4 and seen by Bloomberg.
“These illicit transactions manifest in the form of daily, multiple payments from one account to beneficiaries who hold accounts in the same bank,” the central bank’s financial intelligence unit said in the letter.
The new measure follows a limit imposed last month by the central bank on the amount that banks may transfer via a payment platform with 2 million users. Companies that need to make more than two internal bank transfers a day will need to obtain approval from the lender’s management, it said. Central bank Governor John Mangudya was in a meeting and unavailable when sought for comment.
The Zimbabwean dollar trades at about 76 to the U.S dollar on the parallel market, while authorities have pegged the exchange rate at 25 to the greenback.
Foreign Currency Account holders with Zimbabwean banks – among them units of Standard Bank, Standard Chartered and Nedbank – have expressed apprehension about what they fear could be a run on their funds by the government, as the central bank kicks in new monetary measures.
Foreign currency availability has been a problem in Zimbabwe, whose productive sectors continue to encounter headwinds against a huge import bill for fuel, medicines and raw materials for industry. This has worsened in recent weeks, as FCA account holders have started to face challenges withdrawing hard cash from their accounts.
Chiedza Madzima, the head of operational risk for Fitch Solutions, said Zimbabwe’s foreign currency accounts were facing pressure as depositors rushed to withdraw US dollar funds “amid much lower market confidence.”
FCA account holders with Zimbabwean banks say they have in some cases been turned away by their bank branches, with varying explanations.
Standard Chartered Zimbabwe last month told local media that “the Covid-19 induced lockdown has resulted in some constraints in cash importation”, while some bank chiefs say they have been asked by the central bank to prioritise foreign currency allocations.
However, depositors with various banks have reported bottlenecks in withdrawing cash from FCAs. Zimbabwean authorities have previously said FCA accounts will not be raided, but some depositors are nonetheless expressing concerns.
“The branch manager said I could not get cash because my account was funded through an FCA transfer from another bank. They are prioritising those accounts which have cash deposits, and now I am stuck because I cannot access my funds and at the same time I cannot convert into local currency at the official rate, which is much lower,” said an FCA account holder at foreign-owned bank in Harare.
Funds in FCA accounts have to be utilised within 30 days, according to a new directive by the Reserve Bank of Zimbabwe. Governor John Mangudya this week said the central bank resolved to “re-instate with effect from 1 July 2020 the 30 day-limit of liquidating surplus foreign exchange receipts from exports in order to ensure that more foreign exchange is released” on to the market.
Banks such as Stanbic Zimbabwe and Standard Chartered have been touting alternatives to cash withdrawals such as internal transfers, online and mobile application payments for FCA accounts.
A branch manager with a local bank told Fin24 on Wednesday: “We are having challenges meeting demand for cash for FCAs. There is a lot of pressure we are facing and sometimes we are left with no option other than to lower withdrawal limits for US dollar accounts.”
The current fixed exchange rate of 1:25 for the Zimbabwe dollar versus US dollar is at odds with parallel market rates of 1:70.
Zimbabwean economist Vince Musewe said Zimbabwe’s key export commodities such as minerals and tobacco “will not deliver sustained growth or adequate US dollars” for Zimbabwe while United States-based economics expert, Steve Hanke, tweeted last night that “the connected few profit off access to the official, artificial, cheap” US dollar rate.
Zimbabwe's Health Ministry has announced that all local and foreign investors venturing into the production of cannabis will be offered 100% ownership of their farms and licences to improve competitiveness.
In 2018, the Zimbabwean government approved the production of cannabis for medicinal purposes.
Last year, it announced that 37 local and private investors had shown interest in cannabis farming.
In a letter addressed to cannabis licencees by Health Minister Obadiah Moyo, the offer is with immediate effect.
"Following Cabinet decision and high-level meeting, a policy change enabling investors to hold 100% ownership of Medicinal Cannabis licences was made in order to improve the competitiveness of the sector both regionally and globally," Moyo said.
"At the same meeting, it was also agreed that investors had the option to utilise private land for cannabis project.
"In order to regularise the policy changes a draft Investment Stabilisation agreement is being reviewed by the Attorney General's office. The finalisation has been delayed somewhat due to the focus in controlling the global Covid-19 pandemic."
One company, Alternative Health Oils (AHO), a joint venture between the government and a private firm has seen the State ceding its 40% to the former.
Government directors seconded to AHO board have also been ordered to resign with immediate effect leaving the private firm in total control of the entity.
"Having noted the need for pragmatism in this matter, Alternative Health Oils (AHO), a government company which is being administratively managed by the Ministry of Health and Child Care (MOHCC), will initiate the termination of Joint Venture Agreements, ceding 40% ownership and the resignation of AHO directors from the Special Purpose Vehicles (SPV) with immediate effect.
"On the completion of the processes amendment of the licence would be required."
An Investor for cannabis farming will be issued with a five-year renewal licence.
Previously, production and possession of the drug was illegal and attracted a sentence of up to 12 years.
However, the recreational use or possession of the drug remains illegal.
Source: New Zimbabwe
President Mnangagwa has challenged Africa to pursue the vision of the founding fathers and promote economic integration and sustainable development for the continent.
In his address to the nation today to mark the 57th anniversary of the founding of the Organisation for African Unity, now the African Union, on May 25 1963, the President commended Africans for defending the continent's independence.
"As we celebrate Africa Day, we are jubilant that the vision of our founding fathers has been by and large realised, kept and is jealously defended," he said.
"Above all, that vision continues to be elaborated upon, notably through Agenda 2063 which envisions an economically integrated continent of Africa which will be a global powerhouse by 2063.
"Our continent's desire is to achieve sustainable development, through concrete manifestations of the Pan-African drive for unity, self-determination, freedom, progress and collective prosperity."
President Mnangagwa said the African Continental Free Trade Area that seeks to create a prosperous future was now in force and called for the scaling up of integration and cooperation at all levels. He said cooperation was imperative in the continent's quest to achieve food security and to mitigate the impact of climate change and threats posed by disease outbreaks.
"Conscious of Agenda 2063, we must continue to explore and exploit our vast natural resources. The value addition and beneficiation of our various resource endowments must be harnessed to modernise and industrialise Africa's economies.
"In this 'Decade of Action', let us give impetus to innovation. We must drive all facets of socio-economic development, leveraging on science, technologies as well as our rich heritage, history and cultures," said the President.
The promotion of human development and the economic empowerment of youth and women must result in an Africa that produces goods and services for itself through its own innovations and initiatives.
"The realisation of sustainable development and the great vision of an improved standard of living for our people must remain a top priority."
President Mnangagwa called on Africans to deepen the culture of democracy and good governance as taught by the continent's founding fathers. Former colonial powers had no authority to lecture Africa on democracy as the continent had fought to achieve the democracy being enjoyed to this day. Africans should not be shy to express the rich cultural heritage, languages and identities.
"Zimbabwe continues to pursue robust cooperation with our neighbours and the continent as a whole; subscribing to a fully integrated continent of Africa. We must now urgently consolidate the implementation of cross-border projects, to improve our road networks, water, energy and ICT infrastructure, among others. This will inevitably accelerate multi-faceted sustainable development in the region and on the continent," he said.
The continent continued to face various challenges despite development made in other areas with civil wars and terrorism being experienced in some areas. He said the Extraordinary SADC Organ Troika Summit recently met to address the terrorism scourge experienced in some parts of Mozambique.
"Let me reiterate our unequivocal rejection of terrorism, in all its forms and manifestations, and our strong condemnation of all terrorist acts, which will never be justified.
"Zimbabwe remains committed to play its part in all regional and continental initiatives as our modest contribution towards a prosperous and peaceful world order," he said.
President Mnangagwa condemned some Western nations for meddling in the internal affairs of countries on the continent. Zimbabwe continued to suffer from unwarranted interference and endure illegal sanctions imposed as punishment for reclaiming land.
"However, we are buoyed by the fact that we have re-united with our land, which is now irreversibly reposed into our hands, we its true owners," he said.
"As we commemorate and celebrate the unity of our continent, we in Zimbabwe deeply thank our Sadc region and the whole continent of Africa for standing with us. Africa has rejected and denounced the sanctions against Zimbabwe and the Sudan, urging those responsible for these illegal, heinous measures to immediately lift them without conditionalities.
"They are illegal, unjust, spiteful and undeserved. Above all, they go against the grain and spirit of civilised international relations as espoused in the United Nations Charter. We reiterate that sanctions have no place in modern international relations."
President Mnangagwa also urged Africans to remain alert to the threats of Covid-19 pandemic despite the continent recording low infection and mortality figures as compared to other continents.
"We must therefore, continue with the concerted efforts towards a continental response, and a united global response under the World Health Organisation. Covid-19 knows no borders; hence our response both on the continent and beyond must reflect this undeniable reality," he said.
The President urged Africans to re-dedicate themselves to defend the continent's liberty and unity and commit to fight for lasting justice and sustainable development, which leaves no one behind.
Source - The Herald Zimbabwe
Zimbabwe welcomed the U.S. decision Thursday to remove two of its banks from the sanctions list, saying the move will allow them to easily obtain credit to address the country's moribund economy.
However, the ruling ZANU-PF party is calling for more from the U.S. and other Western countries that imposed the sanctions in 2002.
The U.S. Treasury Department's Office of Foreign Assets Control gave Infrastructure Development Bank of Zimbabwe and Agricultural Development Bank of Zimbabwe a clean bill of health. Mthuli Ncube, the country's finance and economic development minister, could not hide his joy over the news to reporters in Harare.
"Of course, any removal of any institution, especially a financial one, is very positive indeed," he said. "This will help the bank access credit lines and remove any restrictions that pertain to KYC — know-your-customer — challenges, which is really what happens when a bank is on the spotlight, the way they were. Now that they [sanctions] have been lifted, the banks will find it easier to do business going forward. So this is a very welcome development indeed."
Tafadzwa Mugwadi, the director of information in the ruling ZANU-PF party, said the party is not satisfied, though President Emmerson Mnangagwa's efforts to reengage the West are bearing fruit.
"We are not happy as long as part of these sanctions, the major parts of these sanctions are still in place," Mugwadi said. "Our position as ZANU-PF is that the illegal sanctions imposed on Zimbabwe from the United States of America have no place in this civilized world, so that the people of Zimbabwe can fully realize their full potential without any hinderances, so that the government can be measured on the basis of its capacity without these hinderances, without sanctions in place."
The U.S. and several Western countries and institutions, like the European Union, imposed sanctions on some state institutions and some senior party officials in 2002 following reports of election rigging and human rights abuses. Harare blames the sanctions for the country's moribund economy, while critics blame bad government policies for causing the economy to catch a cold.
People queue for cash at an ATM which dispensed the new Zimbabwean ten-dollar notes, in Harare, May 20, 2020. The higher denomination bank note was introduced to help ease perennial shortages of cash in the country.
Rejoice Ngwenya, an independent political commentator, said the U.S. may have lifted sanctions on the two banks to help the country fight the COVID-19 pandemic but ruled out giving in to ZANU-PF demands.
"The present government has not shown any appetite for reforms. Given their response to the abductions of the [opposition] MDC Alliance youth leaders, it would be really unlikely that the local American embassy recommend removal of any political leaders, unless those political leaders are targets of possible liberal reform," Ngwenya said.
The U.S. Embassy in Harare was not immediately available for a comment.
Earlier this month, three members of Zimbabwe's main opposition party were allegedly abducted and tortured after taking part in a protest demanding that the government pay those affected by the ongoing coronavirus lockdown. The government has said it is investigating the matter.
Zimbabwe’s state power transmission company has invited bids for the construction of 500 megawatts (MW) of solar power plants as part of a drive to increase its use of renewable energy and end power cuts.
The southern African nation since last year has endured cuts, known locally as load shedding, lasting up to 18 hours after a devastating drought reduced dam levels at its hydro plant while ageing thermal stations constantly break down.
Supplies have improved since the country entered a coronavirus lockdown at the end of March, forcing industry to close.
Zimbabwe also paid off arrears to South African power supplier Eskom, guaranteeing supplies of up to 400MW daily.
Zimbabwe is currently producing 987MW of electricity daily.
“The Zimbabwe Electricity and Distribution Company (ZETDC) is intending to contract 500MW of PV solar plants of varying capacities at different identified strategic locations,” the company said in a public notice.
ZETDC said solar power would help mitigate against climate change-induced risks and reduce imports, saving scarce foreign currency.
Zimbabwe’s largest hydro station Kariba has a capacity of 1,050MW but is only producing 600MW due to low water levels.