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The Politics of Reform — Much Ado About Nothing
The Politics of Reform — Much Ado About Nothing
Standoff in Zimbabwe as Struggle to Succeed Mugabe Deepens
Standoff in Zimbabwe as Struggle to Succeed Mugabe Deepens
Op-Ed / Africa

The Politics of Reform — Much Ado About Nothing

Originally published in Zimbabwe Independent

The call for political and economic reform in Zimbabwe has been a constant refrain for almost two decades.

For Zanu PF, reform necessitates the reconfiguration of the economy and ownership, centred on its controversial land reform and, more recently, indigenisation policies. It is a selective agenda wrapped in revolutionary rhetoric intended to correct discriminatory historical legacies, but that in practice has been employed to buttress Zanu PF’s political hegemony against growing opposition to misrule and to feed political patronage and self-enrichment.

Opposition formations and many civil society groups seek the removal of Zanu PF, calling for reforms that would strengthen governance and the rule of law and tackle the array of democratic deficits that underwrite Zanu PF’s incumbency. For the most part, Zanu PF has rebuffed these calls, accusing its proponents of pursuing a regime change agenda directed by external interests and has employed an array of repressive measures to undermine its opponents, culminating in a terror campaign, the illegitimate June 2008 elections and regional intervention.

The negotiated 2008 Global Political Agreement provided a framework for comprehensive reform, although this was largely avoided; many aspects of this reform were “parked” in the new constitution adopted in February 2013 and remain subject to a contested terrain of constitutional alignment. This includes the reworking of over 400 pieces of legislation and the introduction and/or reconstitution of new democracy-supporting bodies. In addition, several high-profile cases challenging existing statutes have been brought before the Constitutional Court, although numerous issues remain unattended.

The momentum for political reform receded in the face of diminished opposition representation and debilitating internal rivalries.

The Southern African Development Community (SADC), opposition and civil society groupings pointed to an array of reforms that should have been addressed before the 2013 polls, but Zanu PF’s victory enabled these to be pushed aside, instead elevating its own transformation agenda under the policy prescripts of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) economic blue-print.

The momentum for political reform receded in the face of diminished opposition representation and debilitating internal rivalries; funded civil society has also recalibrated as the realities of the resuscitated Zanu PF incumbency prompted a move towards constructive engagement, encouraged by donors keen to re-engage. Consequently, robust critique of civil and political concerns has been stifled on multiple fronts, as economic and financial sector reforms have moved centre-stage.

Deteriorating economic conditions have exposed the limitations of Zanu PF’s campaign promises that ZimAsset and/or that government’s “Look East” policy provide realistic options to kick-start recovery. Conditions on every front have in fact worsened. Desperate for new credit lines, the government focused more on reconnecting with international creditors; it introduced a Staff-Monitored Programme (SMP) with the International Monetary Fund (IMF), intended to demonstrate a commitment to repair relations severed by payment defaults and to correct its financial delinquency.

In this regard there has been some progress, although this only lays the foundation for more fundamental reforms that are now required. Indeed, the SMP was not politically taxing, yet provided space for those promoting an incremental engagement agenda to demonstrate that the government was committed to mending its ways, albeit through this narrow lens of reform.

Zanu PF, it was argued, had no choice as economic conditions forced a reality check on its limited available options. President Robert Mugabe’s own broad endorsements for reform, outlined in a 10-point plan in his state of the nation and opening of parliament speeches in August and September 2015, were a tacit admission of his government’s policy failures.

Significantly, he delivered these speeches without his stock allegations that sanctions and Western powers were responsible for Zimbabwe’s impoverishment. His support enabled Finance minister Patrick Chinamasa and Reserve Bank of Zimbabwe governor John Mangudya to present government’s reform strategy to development partners and creditors in October 2015. The plan set out an incremental agenda that would secure funds to pay debt arrears (estimated at almost US$2 billion) by mid-2016, which would enhance prospects for accessing new lines of credit. It was well received but, curiously, not shared with ordinary Zimbabweans, until it was leaked four months later.

The timeline for arrears repayment has already shifted and is contingent on accessing new loans that creditors must have confidence will be honoured. This process must also be complemented by “bold policy reform measures aimed at debt sustainability and improving the socioeconomic environment”. The IMF acknowledges progress in some of these areas, but continues to highlight key issues that require urgent government attention. These include:

  • Reducing the civil service wage bill and re-orienting spending priorities;
     
  • Improving debt management and administration of revenue administration;
     
  • Improving the business environment, including clarity on indigenisation provisions and land reform (including a framework for compensation) and improved transparency in the mining sector;
     
  • Reform of state owned enterprises; and Tackling corruption.

Reform in these areas is hampered by acute resource constraints, and as economic growth slows, the government is being squeezed on every front. While trying to raise funds to underwrite payments for its debt arrears, it has been forced to borrow heavily elsewhere, simply to keep the state functioning and to finance its ballooning budget deficit, exacerbated by a worsening balance of payments crisis and an unsustainable wage bill for public servants.

Limited success in reducing expenditure in some areas belies the fact that over US$2 billion of Treasury Bills have been issued to keep the wheels in motion. This means government must now find an additional US$250 million annually to service this new debt. This deficit is also at the heart of a crippling liquidity crunch that has further undermined confidence in Zimbabwe’s shaky banking system.

Even if financing to cover debt arrears is secured — by no means straightforward or at this stage guaranteed — progress in these reform areas will determine prospects for the approval of new loans. The IMF executive board meeting with the World Bank and African Development Bank last month was expected to assess progress, but conditions are not in place to secure new lines of credit at this juncture. Unlike the SMP, there must now be substantial headway around issues such as civil service cuts that have thus far been avoided. Although technically not engaged on a political platform, progress around sensitive law and order, governance and human rights issues will be required to secure US buy-in.

But headway in these areas is patchy at best, and unlikely to be pursued with any vigour in the run-up to elections, which explains why many are sceptical and believe it is premature to discuss new funding. Government is trying to tick the requisite boxes by meeting with civil society and business groupings, but this has not arrested depreciating levels of confidence. Indeed, there is a strong feeling that the “theatre of reform” belies a political agenda to retain political hegemony.

An assessment of progress therefore requires a more robust assessment of major implementation challenges.

Limited success in reducing expenditure in some areas belies the fact that over US$2 billion of Treasury Bills have been issued to keep the wheels in motion.

Civil Service Wage Bill

The wage bill for civil servants, including those attached to the security and intelligence sectors, has grown dramatically, in turn preventing much-needed expenditure on public investments and social services. There is still considerable ambiguity about the size and make-up of the civil service and where cuts will be made.

How government addresses this challenge will be a primary indicator of its intent. But progress, even of an incremental nature, appears to have been made only glacially since the promises by the finance minister in December 2014.

In mid-April 2016, Chinamasa told the IMF that the government would retrench workers and freeze salaries as part of its strategy to reduce the wage bill to 50% of total expenditure by 2019. What this means in practice remains unclear and has already been contradicted; at Independence Day celebrations, Mugabe promised civil service salaries would be increased to match the poverty datum line. And Public Service, Labour and Social Welfare minister Prisca Mupfumira told a gathering on Workers Day that there will be no job cuts.

It is difficult to see how government will cut public spending, lay off civil servants and privatise state-owned enterprises (with accompanying job losses) ahead of the elections, leading some to suggest that progress on this front may be delayed until after the polls. But the wage expenditure, now estimated at 83% of government expenditure, continues to tighten the noose around government, as evidenced by its increasing difficulties in honouring due payments timeously. This has exacerbated tensions with what remains the country’s last bastion of formal employment.

Indigenisation

The implementation of Zimbabwe’s indigenisation and economic empowerment legislation and its regulatory framework remains a litmus test for government reform. Introduced in 2008, the controversial legislation, designed to promote and impose indigenous Zimbabwean ownership of foreign firms, has been central to Zanu PF’s economic transformation agenda and an important tool in its populist posturing. But there has been a consistent and “wide disjuncture between the law (as it is), government pronouncements of the law (as they would like the public to believe it to be) and the policy in practice”. This confusion was identified as a central obstacle by donors and international financial institutions, who have consistently called for “clarification” on key aspects of the law.

A commitment to “simplify and streamline the investment process” was included in the government’s Lima strategy for clearing debt arrears and carrying out supportive economic reform. But following his appointment in September 2015, Youth and Indigenisation minister Patrick Zhuwao who is also Mugabe’s nephew, vehemently contradicted efforts by Chinamasa to provide this clarification, at one point threatening to expel companies and seize their assets if they did not comply.

Mugabe allowed the confusion to prevail until mid-April 2016, finally reining Zhuwao in, acknowledging the confusion must be resolved and that a “one-size-fits-all” approach to indigenisation would not be adopted. He promised the confusion would be remedied, but another verbal commitment brought neither clarity nor certainty, instead highlighting “deep policy flaws and inherent confusion in government”.

How the legislation and its accompanying regulations are amended will be watched closely. Thus far, Zhuwao has sat on his hands in what several local economists have described as wilful resistance, an approach Mugabe either tolerates, endorses or is unable to control. In the current economic quagmire, repealing the indigenisation law and replacing it with a coherent framework would significantly strengthen the reform agenda, but such a move is unlikely to pass political muster.

Land Reform and Compensation

How issues of property rights, compensation, unresolved issues of legal and illegal occupation and clarity on beneficiaries of the fast-track land reform programme are dealt with remain key indicators of the government’s commitment to strengthening the rule of law. The government acknowledges that resolving these matters is central to prospects of boosting productivity on the land.

In mid-March 2016, Chinamasa tabled a memorandum in parliament establishing a special fund responsible for raising and administering compensation for seized land. This is an important symbolic attempt to demonstrate government’s commitment to compensate farmers evicted during the fast-track land reform programme. If successful, this could also help expedite unresolved tenure issues. The state points out it has never denied its responsibility to compensate, but for what and at what rate has never been clarified. The suggested compensation plan would entertain claims for land, improvements and equipment, signalling a major shift in government policy if adopted.

Zimbabwe's President Robert Mugabe and his wife Grace attend a meeting of his ruling ZANU-PF party's youth league in Harare, Zimbabwe, on 7 October 2017. Philimon Bulawayo/REUTERS
Commentary / Africa

Standoff in Zimbabwe as Struggle to Succeed Mugabe Deepens

President Robert Mugabe plunged Zimbabwe into political crisis by firing his long-time ally and enforcer Vice President Emmerson Mnangagwa on 6 November 2017. In this Q&A prior to an apparent army coup in Mnangagwa's favour on 14-15 November, Crisis Group’s Senior Southern Africa Consultant Piers Pigou gives the background to the struggle to succeed the 93-year-old president.

This Q&A on the background to Zimbabwe’s political crisis of November 2017 was published just before an apparent army coup on the night of 14-15 November.

What’s behind the new political crisis in Zimbabwe?

The crisis began on 6 November when President Mugabe fired Emmerson Mnangagwa and expelled him from the ruling Zimbabwe African National Union – Patriotic Front (ZANU-PF) party. This was not unexpected. The powerful vice president had become a serious rival and threat to the physically weakened but still astute Mugabe.

Since Vice President Joice Mujuru’s unceremonious removal from office in late 2014, there has been a debilitating factional battle within ZANU-PF over who would succeed the aging president. It pitted Mnangagwa and his supporters against a group of powerful senior and vocal party members – dubbed the “G40”. They rallied around First Lady Grace Mugabe and by mid-2016 it was evident Mugabe tacitly favoured his wife’s associates, who dominated ZANU-PF’s Youth and Women’s Leagues.

During this period, veterans of the liberation war, a key pillar of Mugabe’s support, broke ranks and fell behind Mnangagwa. However, Mnangagwa was unable to embrace them, fearful this would be used against him as further evidence of disloyalty. Instead, he distanced himself from those who supported and promoted him, which made him look weak and indecisive.

His eventual fall played out in awkward slow motion, with the pendulum of his political fortunes swinging back and forth as analysts feverishly speculated whether or not his ambitions to succeed the president would be thwarted. Some expected Mnangagwa’s removal to play out at the party’s extraordinary congress in December. There is speculation that Mugabe acted ahead of this out of fear that his health might rapidly deteriorate.

Where does the army and security sector stand on Mnangagwa’s firing?

Mnangagwa’s support within the security sector, which is crucial to ZANU-PF’s continued rule, supposedly made him too big to fall. Evidently, this was not the case. But his removal has lifted the lid on growing discontent.

A public statement on 13 November by the commander of the defence forces, General Constantine Chiwenga, sent an unambiguous warning that internal dynamics in ZANU-PF, including counter-revolutionary infiltration into the party and hostile attitudes toward the security sector from certain politicians, were destabilising Zimbabwe and generating insecurity. Without mentioning Mnangagwa, Chiwenga called for an end to the unfolding purge of party elements with a liberation history, warning that if the integrity of Zimbabwe’s revolution was threatened, the army would intervene. Although couched in defence of the Zimbabwe’s commander in chief, President Mugabe, Chiwenga implicitly was pointing his finger at him, the first lady and certain G40 elements.

This unprecedented public intervention has sharpened tensions within both ZANU-PF and the security forces. How Mugabe responds to this will be critical if further tensions are to be avoided. He has allowed senior officers to make political statements before, but generally when these were about the opposition. On several occasions in the last two years, he publicly has expressed displeasure at their intervention in internal party affairs. Chiwenga’s statement goes beyond previous interventions, and Mugabe will have to employ all his guile if he intends to ensure continued accommodation with the armed forces.

What does Mnangagwa’s dismissal mean for Zimbabwe’s mutating political landscape?

Mnangagwa’s networks within the party and state administration insulated him to some extent from Mugabe’s machinations and the clear intent of the first lady to bring him down. By mid-2017, it was clear that the G40 was in fact Mugabe’s own project (albeit one he may not have full control over), employed along with his wife as a foil to contain Mnangagwa’s ambitions. As the noose tightened, the crude choreography of accusations against him crescendoed into a series of public humiliations, during which he was accused of disloyalty, deceit and tribalism. It all pointed to his inevitable removal. Yet, inexplicably, he hung on, seemingly without a coherent plan and unable to convincingly push back.

G40 acolytes in the provinces have drawn up a list of Mnangagwa allies they want purged. This includes long-time State Security Minister Kembo Mohadi and recently fired Finance Minister Patrick Chinamasa, who has been the public face of re-engagement with international financial institutions. Some may be expelled from the ZANU-PF, but most will be enmeshed in internal disciplinary processes that will significantly frustrate any possible organised pushback from within ZANU-PF’s provincial structures. A purge of senior civil servants perceived as aligned to Mnangagwa also is expected.

President Mugabe turns 94 in February and remains the party’s presidential candidate for the 2018 election. What kind of succession is he planning and will he support the elevation of his wife, Grace Mugabe, to the vice presidency?

Having removed his major rival, Mugabe can now stage-manage his own succession, which likely will occur only after he dies in office. ZANU-PF’s extraordinary congress, scheduled 12 to 17 December, will see a reconfiguration and possible expansion of ZANU-PF’s presidium to include three vice presidents (also known as 2nd secretary), most likely the incumbent, Vice President Phelekezela Mphoko, Grace Mugabe and Defence Minister Sydney Sekeremayi. The latter has been enthusiastically promoted over the last few months by Grace and the G40 as the man Mugabe trusts most. But, like everyone else, Sekeremayi is a mere appointee and serves at the president’s pleasure. He does not have his own power base, and in late 2014 he had to be rescued by Mugabe after being caught in the cross-hairs of the anti-Mujuru purge.

ZANU-PF’s Women and Youth Leagues, now supported by Vice President Mphoko, have called on Mugabe to appoint Grace as vice president. She is undoubtedly ambitious and may well have her sights on the top job. Mugabe, the final arbiter, has supported his wife’s controversial foray into the political battlefield, where she has been effectively promoting his political interests. But he is aware that she is not popular and that such a blatant dynastic move may well galvanise the fragmented opposition, as well as disgruntled elements within ZANU-PF. Her elevation to first vice president would also not guarantee that she take over once Mugabe dies. Indeed, her political cachet is likely to be significantly diminished when her husband is no longer in office.

Can Mnangagwa stage a comeback?

When the axe fell last week, Mnangagwa fled to Mozambique, fearing for his own safety. This was an irony not lost on those who welcome the downfall of a man nicknamed the Crocodile, with a reputation for brutality and once regarded as untouchable. His first public pushback, a statement from an unknown location, attacked the first family for treating ZANU-PF as their personal property and promising he would be back to take control of the situation within a matter of weeks.

Mnangagwa’s options are certainly now more constrained. It is unclear whether he will attempt to undermine ZANU-PF’s election preparations or if he has the capacity to do so. There is also the question of how he should relate to the opposition and especially its principal leader, Morgan Tsvangirai, who heads the Movement for Democratic Change (MDC-T), with whom he has been accused of secretly conspiring. To join the opposition would be used as further “evidence” of his alleged complicity, and may well further divide the opposition, many of whom want nothing to do with a man accused of an array of gross human rights violations and of having sought to disrupt the opposition. But to strike out on his own (as Mujuru did when she formed her National People’s Party) likely would have him heading only a small and marginal party in a fragmented political landscape.

What does this development mean in terms of improving Zimbabwe’s prospects for re-engagement with international creditors, reform and recovery?

There is widespread uncertainty regarding what will happen next. Tsvangirai, whose own health problems have fed speculation that he may not be able to lead the major opposition coalition, the MDC Alliance, in national elections expected in April 2018, has rightly warned that the political environment is dangerously unstable.

Economic conditions have visibly deteriorated over the last two months. The volume of physical money circulating in both the formal and informal economy has contracted sharply. Inflationary pressures exacerbated by this liquidity crisis have driven up the cost of living, leading to a crash in the purchasing power of salaries paid into bank accounts. At the same time, the government is continuing along a dangerous path of deficit financing, with the new Finance Minister Ignatius Chombo announcing the budget deficit will climb to $1.82 billion this year (the total budget is $5.6 billion). The government has no plan beyond the limited option of domestic borrowing, which has skyrocketed since 2013. Zimbabwe is once again heading back into hyperinflationary territory.

Mnangagwa was held out by many as the best hope within ZANU-PF for piloting an economic recovery predicated on re-engagement with international creditors and a package of reform that would instil a measure of much needed confidence. Yet evidence that he would or could deliver on this front is not persuasive.

Those now in the ascendency within ZANU-PF in any event are unlikely to explore these options, especially before the elections. They have demonstrated no intention of doing so. In theory, Mnangagwa could lay out the re-engagement, reform and recovery plan that he apparently was unable to deliver because he was constrained by internal ZANU-PF factionalism. That said, if he does not come up with a coherent strategy that moves beyond efforts to clawback power within ZANU-PF, few will be convinced that he has the vision to pilot such a comeback, let alone confront the bigger challenge of a national recovery plan.