Gambakwe Media speaks LIVE to Ideal Zimbabwe President, Tinashe Jonas about the report titled Cartel Power Dynamics In Zimbabwe.
The report, which was produced by anonymous people in Zimbabwe, was published by the Daily Maverick of South Africa in January 2021.
Key Points From The Report
1. The study found out that there are three types of cartels:
– Collusive relationships between private sector companies.
– Abuse of power by public officials for self enrichment.
– Collusive relationships between Public officials and the private sector.
– The study defined a cartel as corrupt business practices with collusion of political leaders.
2. The report concluded that Political patrons are at the heart of all cartels.
3. Cartels are harming ordinary people.
4. Private citizens should lobby external players to disengage from cartels.
5. illicit border transactions have cost Zimbabwe between $570 million to $3 Billion Dollars per year.
6. A payment to Kuda Tagwirei devalued the ZWL by 23%
7. 82% of Zimbabwe government expenditure in 2018 was irregular.
8. $15 Billion was stolen in Zimbabwe’s diamond sector in Marange.
9. Over 60% of Zimbabweans don’t trust Mnangagwa and government officials.
10. Transparency International ranks Zimbabwe as the 21st most corrupt country in the world.
11. Key systems of the country are controlled by cartels ( Judiciary, NPA, ZACC, Police)
12. Zimbabwe has the largest informal sector in the world.
13. Diaspora remittances make up 10% of Zimbabwe’s forex receipts and these are set to decline as diaspora earnings fall and the SA Rands depreciates.
14. Winner takes all approach to elections enables cartels.
15. Zimbabweans have limited social cohesion, which means they can not coalesce around a common purpose.
16. Zimbabwe’s laws are used selectively against political opposition.
17. Sabi Gold Mine was a joint venture with Chandawana. It was transferred to Kuda Tagwirei’s SOTIC in mid 2020.
18. Tagwirei bought cars for the Presidium in 2018
19. Sanctions have contributed to the rise of Cartels.
20. John Bredenkemp is assisting the Zimbabwe government to avoid sanctions.
21. Tobacco is exported to China through SA based intermediaries who then export it and retain most of the funds in SA.
22. Reserve Bank of Zimbabwe farm mechanization program/ Command Agriculture was part of cartel activities.
23. Banning of Urban taxis, ZUPCO buses are being hired from PEP.
24. There are runners and money men. Tagwirei is a powerful money man.
25. Senior Military in the Zimbabwe Army have their own interests that spill into cartel behavior.
26. ZINARA – Engineer Michael Madanha and Super Mandiwanzira both have General Chiwenga as their patron.
27. Kuda Tagwirei controls the Feruka – Masasa pipeline. Access to Forex at the RBZ at low rates which they sale at the RBZ.
28. After the coup, there was a tug of war between Chiwenga and Mnangagwa to lure Tagwirei.
29. Kuda Tagwirei is involved in various agriculture cartels such as command agriculture.
30. Cigarette cartels – Adam Molai is a nephew of Mugabe ( He owned Pacific Brands of Cigarettes’). Gold Leaf Tobacco is owned by the Rudland family.
31. Mining Cartels – Mugabe and Obert Mpofu enriched themselves through Marange Diamonds.
32. Mugabe’s loss of power has created multiple patrons in Mnangagwa and his vice president and the military.
You can read the full report at the bottom of this post.
Jonas will discuss the following:
- Who developed the report? Who owns Daily Maverick?
- What was the purpose of the report? Is Zimbabwe unique?
- Is the report accurate? Are these cartels of syndicates?
- Who owns Daily Maverick?
- Was the report correct on the impact of sanctions?
- Have the cartels survived Mugabe?
- Are the solutions suggested making sense?
Please read the full report below:
Zimbabwe Cartels Report
