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Mukachana Hanyani
The month of October, especially the 25th of this month, has been promulgated by the SADC bloc for all countries in the region and beyond to call for the lifting of the sanctions that were imposed on Zimbabwe by Western countries more than two decades ago.
For more than 20 years now, Zimbabweans have had to contend with socio-economic challenges due to the sanctions which were imposed on them in 2001 by the United States and its allies as punishment for reclaiming their land from white former farmers.
Those born after 2000 may be forgiven for thinking that Zimbabwe is not capable of great socio-economic life as is the case in other countries.
Many now think that good life is the preserve of the wealthy only yet a good life for all is possible if the sanctions that are strangling our economy are removed.
Sanctions should go to enable all Zimbabweans to enjoy their lives as citizens of the country.
For the uninitiated, Zimbabwe, which embarked on the land redistribution programme in 2000 triggered bilateral disagreement with her former colonial masters, Britain.
The British government under the leadership of Tony Blair, of the Labour party, mobilised the Western world to impose economic sanctions against the country claiming human rights abuses and governance issues.
The British government further justified the punitive measures by claiming that the Zimbabwean leadership was not respecting private property ownership rights hence the imposition of the illegal and punitive sanctions on Zimbabwe and her people.
Blair also convinced the European Union (EU) to get into a bilateral matter between its erstwhile colony, Zimbabwe, and itself leading to the bloc imposing economic sanctions on the country.
Although they were technically said to be targeted at top ZANU PF and Government leadership, the measures are affecting everyone and every facet of Zimbabwean life.
Contrary to the claims of being targeted, over the years’ experience has shown that the sanctions are effecting all Zimbabweans.
Despite pitching itself as the global policeman of democracy, human rights and good governance, the US government under George W Bush even came up with legislation to enforce the sanctions against the innocent people of Zimbabwe.
In 2001, the US government enacted the Zimbabwe Democracy and Economic Recovery Act (ZIDERA) of 2001.
The piece of legislation was put in place ostensibly to provide for a transition to democracy and to promote economic recovery.
The whole world wondered why a whole global power descended on a small southern African country of less than 15 million people wielding legislation over an internal matter.
While the law’s naming and reasons were diplomatic, former US assistant secretary for African Affairs, Chester Crocker explained the reasons for the sanctions when he told Congress that “to separate Zimbabwean people from ZANU PF, we are going to make their economy scream.”
Zimbabwe was punished for setting a precedent which the US felt other countries could follow thereby upsetting the imperialists’ enterprise across the globe.
The US government urgently wanted ZANU PF out of power using protests resulting from anticipated from suffering Zimbabwe.
Earlier in 2000, the Bush administration had put in place the African Growth and Opportunities Act (AGOA).
The legislation provides duty-free treatment to goods of designated sub-Saharan African countries (SSAs).
Its main goal is given as the promotion of economic growth through good governance and free markets.
While Zimbabwe’s neighbours such as South Africa benefited from the programme, Zimbabwe was, as expected, excluded to punish it for taking its land back from whites without compensation.
Following the enactment of ZIDERA, Zimbabwe’s access to international credit markets was blocked.
The country was then forced to virtually operate on a hand to mouth basis, and a significant build-up of external debt arrears became visible and a menace to the country.
This unfavourable development worsened the country’s credit worthiness and credit rating as the country’s international financial risk profile became obvious.
As it became apparent that the country’s financial profile was fragile, external financiers and grant offers withheld their financial assistance to the country.
As such, Zimbabwe felt the drying up of her traditional sources of external finance from the International Financial Institutions (IFIs).
The country then failed to receive financial support from the African Development Bank, the International Monetary Fund (IMF) and the World Bank (WB) once sanctions became effective.
In essence, the IFIs stopped their support to Zimbabwe by instituting a number of suspensions on balance of payments (BOP) support, technical assistance, voting and related rights by the IMF, and declaration of illegibility to access fund resources.
All these measures by the IFIs to Zimbabwe meant the country had to struggle to make ends meet.
Despite the US’ claims that the sanctions were targeted these effects trickled down to the ordinary people.
With no financial inflows to the country, Zimbabwe failed to honour its financial obligations to the IMF and World Bank.
For that reason, the Bretton Woods Institutions suspended BOP support and technical assistance to the country.
Consequently, the country’s external payment arrears continually increased from about US$109 million in 2000 to US$5,4 billion in 2017. The arrears have been rising, and now stand at around 70 percent of the total external debt.
Currently Zimbabwe is saddled with about US$10.5 billion of debt owed to IFIs including the Paris Club, the African Development Bank and the World Bank, which have effectively cut it off from multilateral lenders.
Regrettably, the lending programme from the World Bank is inactive due to accumulated arrears and sanctions.
With effect from October 2000, the World Bank placed all its International Bank of Reconstruction and Development loans and International Development Association credits to, or guaranteed by Zimbabwe in non-accrual status, resulting in the country being unable to access any loan.
The combined effects of the arrears situation and sanctions have resulted in Zimbabwean companies finding it extremely difficult to access offshore lending, thus, crippling their operations.
Pre-sanctions era, loan inflows to Zimbabwean companies increased from US$134 million in 1980 to US$480 million in the 1990s but fell significantly to an average of US$80 million between 2000 and 2008.
Currently, where the private sector manages to secure offshore financing, it is usually at punitive and exorbitant interest rates.
Moreover, Zimbabwean importers are asked to pay cash upfront resulting in a significant squeeze on private sector cash flows.
Using cash upfront instead of loans makes companies struggle as some used to get credit then repay after making profits. So sanctions have destroyed all those privileges on Zimbabwean companies.
For those still thinking and believing that sanctions are targeted at the ZANU PF leadership they should think again.
Zimbabwean companies that have nothing to do with ZANU PF have not been spared on sanctions issues.
They are not able to trade with some American companies as the country is under sanctions.
The sanctions, for over two decades, have caused the Zimbabwean economy to be fragile.
Raising inflation has led to companies closing down businesses and unemployment rate has sky-rocketed to alarming levels.
With unemployment rate rising, Zimbabweans have taken economic refuge in other countries for greener pastures.
This also led other countries to carry extra burden of providing services to Zimbabweans in their countries.
The economic refugee status of some Zimbabweans in the region has made them vulnerable to some citizens of their host countries.
The cases of xenophobia against foreigners in South Africa, especially Zimbabweans, by groups such as Operation Dudula abound.
In view of the foregoing, the calls for the lifting of the sanctions by different leaders in Africa and beyond especially recently at last month’s United Nation General Assembly (UNGA) in New York are welcomed by all progressive Zimbabweans.
Presidents Cyril Ramaphosa of South Africa and Dr Hage Geingob of Namibia among others used this year’s UNGA to call for the removal of the sanctions.
Zimbabweans need to complement the call for removal of sanctions by those leaders so that the Western countries bow to the pressure and remove the sanctions.
As October 25, the SADC Anti-Sanctions Day, draws near, all Zimbabweans irrespective of their political affiliations should come together and call for the lifting of sanctions so that, as Zimbabweans, we move forward.
Sanctions have destroyed our past and present and we should not allow it to ruin our future as well. We can only ensure a sanctions-free future if we unite as a nation in pressing for the removal of the illegal and punitive measures.
Online Reporter