owned by German citizen Heinrich von Pezold. “The German embassy notes with great concern that
property rights of German nationals and their investments in Zimbabwe are being put under threat,
in clear violation of international law”. The letter added: “Despite repeated confirmations of high
ranking representatives of the Zimbabwean government about its intention to honour the BIPPA
(bilateral investment protection and promotion agreement) in full, the development on the ground so
far shows insufficient commitment to follow up on its declarations.”29 The embassy said continued
violations of the bilateral trade agreement between the two nations will jeopardize chances of the
southern African country receiving financial support from Germany through a multi donor trust fund
(MDTF) — a basket fund coordinated by the international community to support the inclusive
government.
Pricing of Agricultural Commodities: Another issue to dominate news headlines has been the poor
prices for cotton farmers. This comes at a time when cotton production has already decreased from
last year due to poor prices. Government, cotton farmers and buyers have been at loggerheads over
pricing. Farmers unions report that the current pricing system, if not improved, will throw farmers
(most of them rural) into poverty and make them unable to produce for the next season. In a move
that flies in the face of government’s public posturing on indigenisation and empowerment, the
Ministry of Agriculture is reported to be refusing to formerly register an Association of Cotton Growers
from Bindura.
Food Security: National wheat production is set to decline drastically to record low levels (lower than
2009) for the 2010 winter season owing to power shortages, disruptions at the farms, lack of funding
and inputs, among other reasons. By 1 June 2010, only 8,96330 hectares of wheat had been planted
representing 13% of the government target, less than 3% of national requirement and 47% of 2007
production. Projections reveal that only 10 000 tonnes out of a national requirement of between 400
000 to 450 000 tonnes will be harvested according to the Commercial Farmers Union (CFU). To worsen
matters, the then Energy and Power Development Minister Alois Mudzuri31 announced that farmers
will have to manage with even fewer supplies as he directed the national power supplier to prioritise
FIFA World Cup viewers – by making sure that there is no rationing during the matches and that those
with outstanding bills are not disconnected32. “I have directed ZESA to suspend disconnections to
allow the public to enjoy this once-in-a-lifetime opportunity,” he was quoted in The Herald of June 10.
A food deficit has been reported in 11 of the country’s districts33.
Trade pact violation endangers aid: Germany by Sebastian Nyamhangambiri Friday 18 June 2010:www.zimonline.co.za
29
The Herald, 1 June 2010.
30
Mudzuri was sacked in June 2010 by Prime Minister Morgan Tsvangirai over poor performance.
31
This is despite the fact that several places among them Chegutu town 100 km south west of Harare continued to experience power disruptions even during live
32
matches.
Tendai Biti (Minister of Finance), 2010 Mid-Term fiscal Policy review.
33
CIVIL SOCIETY MONITORING MECHANISM (CISOMM)
SIX MONTH SHADOW REPORT ON THE PERFORMANCE OF THE INCLUSIVE OF ZIMBABWE
19
Select target paragraph3
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