Sadc reiterates call for removal of all sanctions against Zim
SADC yesterday reiterated its call for the removal of all forms of sanctions imposed on Zimbabwe to pave way for the country’s socio-economic transformation and economic development.
All Sadc member states held solidarity marches yesterday against the illegal embargo.
In a statement, Sadc Executive Secretary, Dr Stergomena Lawrence Tax said the removal of sanctions will benefit Zimbabweans and the regional bloc by enhancing cooperation with the European Union (EU) and the United States (US).
She said Sadc was deeply concerned about the prevailing sanctions imposed by the EU and US. “These sanctions have proved to be directly affecting entities beyond the so-called targeted individuals, and have a negative impact on the credibility of Zimbabwe and serious trickle-down effects on the economy and people of Zimbabwe, and by extension, the Sadc region,” said Dr Tax.
In recognition of the socio-economic impact of the sanctions on Zimbabwe, the 39th Sadc Summit of Heads of State and Government recently held in Tanzania, all member states expressed solidarity with Zimbabwe and called for the immediate lifting of the sanctions to facilitate Zimbabwe’s socio-economic recovery.
The EU sanctions on Zimbabwe comprise of an arms embargo, as well as an asset freeze and travel ban on targeted people and entities.
“The nature of USA Sanctions on Zimbabwe are in two key instruments namely; the Zimbabwe Democracy and Economic Recovery Act ( ZIDERA) and the
“targeted sanctions programme”, which comprises a list of individuals and entities, and specifically instructs US nationals not to do business with these designated entities or their affiliated entities,” said Dr Tax.
The current list as of October 2019 includes 13 state owned enterprises; 13 so called “other” enterprises; 25 farms; three Zanu-PF owned enterprises; and about 100 individuals. Dr Tax said State-owned enterprises traditionally contribute significantly to Sadc economies including that of Zimbabwe.
“State owned enterprises contributed close to 40 percent of the Zimbabwean economy, and as at now, is estimated to contribute about 14 percent of Zimbabwe’s GDP, making these entities a key part of the economy. The prevailing sanctions on Zimbabwe, including the unlawful restrictions on multilateral financing and business dealings with US companies have negatively impacted on the strategic economic sectors of Zimbabwe and presents barriers to innovation, investment and growth,” she said.
Dr Tax said the sanctions on these entities directly impact on employment and income generation opportunities, and thus the livelihoods of the ordinary Zimbabweans.
“The imposition of sanctions therefore, have had significant spill-over effects on a number of sectors that have had serious ramifications on the growth and development, and therefore on the livelihoods and social well-being of ordinary Zimbabwean citizens,” she said.
Since 2001, International Financing Institutions (IFIs) such as the World Bank, International Monetary Fund and the African Development Bank are barred from extending financial support to Zimbabwe.
Despite the accumulation of arrears on the part of
affected Sadc’s ability to achieve its collective targets in the social, economic and financial spheres.
He however, added that Zimbabwe would remain strong and emboldened by the spirits of sons and daughters of the soil who sacrificed their lives for the independence of the country.
“Today we do not mourn, but we renew our resolve to succeed as a nation, despite the odds against us. Together, in love, peace, unity and harmony. Vision 2030 shall become a reality. My Government will continue to take measures to mitigate against the impact of these illegal sanctions.
“To date we have maximised revenue collection and ensure efficient utilisation of scarce resources to boost critical areas,” said President Mnangagwa.
He said Government had elected to take a decision to embark on political and economic reforms.
“We are opening up both our political and economic space. Under my leadership, constitutionalism, democracy, rule of law, transparency, accountability and the inalienable human rights of all citizens, shall continue to be the hallmark of our great country.
“The engagement and re-engagement policy, as well as the peaceful coexistence with all nations of the world, are now the key pillars of our foreign policy. The culture of dialogue, peaceful resolution of disputes and the acceptance of divergent views will continue to be inculcated among our people,” said President Mnangagwa.
Zimbabwe, the IFIs have deliberately avoided to enrol Zimbabwe on special recovery programmes like other countries in similar circumstances.
Dr Tax said the sanctions over the years have extended to the strategic economic sectors of Zimbabwe such as the mining and agriculture sectors.
She said this development, coupled with the lack of external financing support and lack of foreign direct investment have negatively impacted on expansion programmes and investment in agriculture, hence the deterioration in production capacity.
Minerals Marketing Corporation of Zimbabwe (MMCZ) and the Zimbabwe Mining Development Corporation (ZMDC) were sanctioned in 2008 and 2012, respectively. The sanctioning of these entities, particularly the MMCZ, has resulted in constrained financing for mining operations, loss of revenue, and reduced ability to access new markets. “The cancellation of business ties with US-based and US linked firms and companies has negatively impacted the manufacturing sector, as the sourcing of industrial technologies and supplies was disrupted, including loss of supply and market contracts in the international markets,” Dr Tax said.
Sanctions on the Infrastructure Development Bank of Zimbabwe, an entity mandated to provide long and medium-term funding for key infrastructure projects in the transportation, housing, energy, ICT, and water and sanitation sectors, has resulted in the loss of credit lines worth $100 million and equity partnerships.
Dr Tax said sanctions have affected targeted infrastructure investments in the related sectors, especially capital intensive ones.
“As a result of sanctions, the aviation industry and the tourism sectors, most European Airlines have left the Zimbabwean aviation industry since 2003, affecting not only the aviation industry, but also the tourism sector,” said Dr Tax.
She said the tourism sector is further constrained by the stringent Visa requirements for Zimbabwean nationals, bad publicity and travel advisories given to tourists as part of the calculated sanctions against Zimbabwe.
“It is evident that the strategic sectors of the Zimbabwean economy are constrained by the imposition of the sanctions (targeted or not targeted) as they are a barrier to innovation, growth, profitability and investment. Sustained sanctions will imply continued lack of access to multilateral financing and therefore no prospects for economic resuscitation,” said Dr Tax.
She said the impact of the sanctions at the regional level has resulted in lack of financial support for infrastructure development, leading to dilapidation of critical rail and road networks in Zimbabwe, which were traditionally utilised by neighbouring countries as transit networks in support of regional trade. “Sanctions have reduced Zimbabwe’s capacity to take part in regional programmes that are supported by International Cooperating Partners, thus impacting negatively on Sadc development and integration agenda,” she said.
Dr Tax said regardless of the terms used to define the sanctions, international finance and investment entities take a pre-cautionary approach and inadvertently restrict the extension of financial support to Zimbabwe, and investment across economic sectors.
She said contrary to the argument that the sanctions are targeted at individuals, they were affecting ordinary Zimbabweans and the region. — @mashnets