Are America’s sanctions gone?

THE United States has announced a new Zimbabwe sanctions regime, keeping measures on President Emmerson Mnangagwa and his allies. America is also pulling out of talks for a debt relief deal for Zimbabwe.

What does the new sanctions programme really say? Have sanctions been lifted? Have they gone a step up? Here, newZWire explains what has changed, and what has not.

Are sanctions gone?

Not quite. The US is simply using a different stick.

The US President, Joe Biden, has scrapped the sanctions programme that the US has used to impose measures on Zimbabwe since 2003, called Executive Orders.

But he has done so only to make way for a new regime of measures under a different programme, known as the Magnitsky sanctions. Targeted are three companies and 11 individuals.

Among the listed are Mnangagwa, Vice-President Constantino Chiwenga, businessman Kuda Tagwirei and deputy security chief Walter Tapfumaneyi.

The measures include travel bans and asset freezes, the same as under the previous regime of sanctions.

Tagwirei was already designated.

The US is also maintaining the Zimbabwe Democracy and Economic Recovery Act, a separate set of sanctions that it imposed on Zimbabwe in 2001, in response to land reform and rights abuses. Repealing this law would require legislation by US lawmakers.

What has changed? What happens to “old” sanctions?

The previous sanctions regime, under executive orders, now falls away. This means individuals and companies that were listed are now no longer sanctioned.

According to the US government: “All persons blocked solely pursuant to EO 13288, EO 13391, or EO 13469 (the authorities of the Zimbabwe sanctions programme) will be removed today from OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List; All property and interests in property blocked solely pursuant to the Zimbabwe sanctions programme will be unblocked today; and OFAC will remove the Zimbabwe Sanctions Regulations from the Code of Federal Regulations.”

Those off the list include Vice President Kembo Mohadi and Emmerson Mnangagwa Junior.

Among the key State companies now no longer under sanctions are State mining firm ZMDC, the Minerals Marketing Corporation of Zimbabwe, Zimbabwe Defence Industries and Ziscosteel.

However, if someone was penalised for sanctions under the older orders, and the case is still pending, they still have to face the punishment.

While the executive order falls away, and Western companies can transact with formerly sanctioned companies, they are likely to still consider in the risk of dealing with businesses from a country whose leader is under US measures.

So, who is sanctioned? And why?

A total of three companies and 11 people remain on the sanctions list. Mnangagwa is the only sitting president under the Magnitsy sanctions.

On Mnangagwa, the State department said: “Mnangagwa provides a protective shield to smugglers to operate in Zimbabwe and has directed Zimbabwean officials to facilitate the sale of gold and diamonds in illicit markets, taking bribes in exchange for his services.”

First Lady Auxillia Mnangagwa is also now sanctioned. The US said: “The First Lady of Zimbabwe, Auxillia Mnangagwa, facilitates her husband’s corrupt activities.”

The US also sanctioned Tagwirei and his wife, Sandra, accusing her of being “instrumental in Tagwirei’s business activities.” Their company, Sakunda, is also sanctioned.

Also listed is Tagwirei’s business associate Obey Chimuka and his companies Fossil Agro and Fossil Contracting, one of the local companies currently working on government infrastructural projects such as the Beitbridge Highway.

The US said the Fossil group of companies were being sanctioned because they “received government of Zimbabwe contracts that have facilitated acts of corruption”.

Fossil Agro was listed in December 2022.

Remaining under sanctions are government and security officials, including Chiwenga, Defence minister Oppah Muchinguri-Kashiri, Police Commissioner-General Godwin Matanga and his deputy Stephen Mutamba, Tapfumaneyi, and Owen Ncube.

The US has also pulled out of talks, led by the African Development Bank and including the European Union and other creditors, for debt relief for Zimbabwe.