Zimpapers Logo

The Government has a number of longstanding obligations that it has been battling to meet.

Due to the prevailing economic challenges caused by illegal western sanctions, we had no idea how the Government was to pay compensation to white former commercial farmers for improvements they made on the land that was compulsorily acquired to resettle formerly landless blacks. The total bill, according to the Global Compensation Deed Agreement signed in July last year, is US$3,5 billion.

Sovereign wealth funds are important vehicles to harness revenues being raised today through depleting resources such as minerals for the benefit of future generations. Many countries have trillions housed in the funds, guaranteeing that those who will live after the present generations would enjoy the savings made before them. Our country set up its own fund, but the challenge has been how to begin financing it in a sustainable manner.

Cognisant of the big role they played in liberating their country, the Government has not only a moral, but also constitutional obligation to ensure that war veterans lead decent lives. A number of them are struggling, which is unfortunate for a country like ours that values its liberation from colonial rule. The Government paid them lump sums more than 20 years ago in a bid to improve their livelihoods. More recently, a board charged with working to improve their welfare was appointed. We had no idea how it was going to secure funding to begin its agricultural and mining projects.

Also, some pensioners are impoverished as the Government is failing to pay them their pensions.

The foregoing are some of the legacy obligations that the Government has. As indicated, many of us could not find ways through which money could be raised to clear them.

However, as a result of much innovation, there is now a ray of light at the end of what we thought was a long, impossible tunnel.

On Wednesday, a vehicle set up by the Government to meet the above and other commitments delivered a whopping US$5,2 million for the purpose. Kuvimba Mining House has unlocked value in a number of mines that had been abandoned to be able to pay the dividend to shareholders within one and half years of starting operations.

Thanks to Kuvimba Mining House, white former commercial farmers will receive US$1 million from the US$5,2 million dividend. War veterans, pensioners and the sovereign wealth fund will receive their portions too.

“The investment in Kuvimba is also in line with Government’s aim of driving robust and rapid economic growth and the transformative thrust of moving the economy up the value chains,” said Finance and Economic Development Minister Professor Mthuli Ncube.

“During the National Development Strategy 1 (NDS1) period, Government priorities have been placed on developing and strengthening already existing value chains, decentralisation of industrialisation initiatives and provision of a consistent, stable policy environment for the mining sector. In this regard, Government has taken the opportunity to partner with willing and able private sector players who believe in the National Vision and are desirous to participate in the economic prosperity of the people of Zimbabwe. In the same vein, Government is also demonstrating to all existing and potential partners that Zimbabwe is capable of meeting its domestic financial obligations.”

The Government, through Kuvimba deserves plaudits for, as it were, thinking outside the box.

We acknowledge that the payments at the Wednesday dividend declaration are small — US$1 million against the total US$3,5 billion bill due to white former commercial farmers, US$520 000 into the sovereign wealth fund, US$560 000 for the Public Service Pension Management Fund.

However, Wednesday represents a great start.

This is money derived from only 18 months of work. There are many more high potential assets that Kuvimba is reviving and initiating.

With time and astute leadership, the mining house will grow and be able to raise more resources to pay the obligations that the Government has. We urge the company management to intensify their very good work so that the Government does not continue under the burden of unmet obligations.

We must be able to pay our debts, as Prof Ncube said. We are starting to do so.