Markets are unfazed by Mugabe’s mini cabinet reshuffle
THE ZIMBABWE Stock Exchange (ZSE) showed little concern for President Robert Mugabe’s mini cabinet reshuffle on Monday.
The changes saw Finance Minister Patrick Chinamasa re-assigned to head a new cybersecurity ministry and were epitomised by the appointment of former home affairs minister Ignatius Chombo to head the Treasury.
Traders told Business Report yesterday that the ZSE had been on an upward rally that has continued despite the reshuffle late on Monday.
Mugabe removed Chinamasa from the finance ministry and re-assigned him to head a new cyber security, threat detection and mitigation ministry.
By the close of Tuesday’s session, Barclays Zimbabwe, BAT Zimbabwe and Edgars Zimbabwe traded unchanged at 0.07 cents, 36.4 cents and 0.05 cents per share.
Econet Wireless moved up from 1.3 cents to 1.45 cents while Old Mutual inched up from $11.72 to $12.50.
The reshuffle comes ahead of elections next year.
Experts described the reshuffle as “nothing to do” with the performance of ministers.
They said the reshuffle was aimed at whittling down the influence of ministers allied to Vice-President Emmerson Mnangagwa, tipped to take over from Mugabe but facing opposition from the veteran leader’s wife, Grace.
Law expert Alex Magaisa said: “President Mugabe’s reshuffle had little to do with performance but everything to do with succession and preparations for the Zanu-PF conference in December.”
He said the re-assignment of Chinamasa, who has previously clashed with Mugabe on civil servants’ bonus payments, was tantamount to “constructive dismissal”. Chinamasa now has to deal with cybersecurity issues in his new role.
Mugabe’s spokesperson, George Charamba, said Mugabe wanted the “new cybersecurity minister to draw from the experience of other countries” and had made reference to Russia, China and the Koreas.
Cyberspace
“The president says the new cybersecurity ministry is our trap to catch those who do mischief in cyberspace. He was very clear in that this is a new area and it needs legal development,” Charamba said.
Chombo is a Mugabe ally and has been described as willing to toe the line.
Mugabe has also re-assigned Patrick Zhuwawo from the Ministry of Youth and Indigenisation to the Ministry of Public Service, Labour and Social Welfare, while Simon Khaya Moyo is the new Minister of Media, Information and Broadcasting Services, taking over from Christopher Mushohwe.
Walter Mzembi had been re-assigned to head up Foreign Affairs after the re-assignment of Simbarashe Mumbengegwi to the Ministry of Macro-economic Planning and Investment Promotion. A new appointment, that of Edgar Mbwembwe to head Tourism and Environment, is among the new faces in Mugabe’s cabinet.