Magufuli is coming from Namibia where he was on a
two-day state visit after attending the inauguration of
South African President Cyril Ramaphosa on Saturday.
Zimbabwe and Tanzania enjoy cordial relations dating
back to Zimbabwe’s liberation struggle and are both
members of the Southern African Development Community.
Mnangagwa visited Tanzania in June last year as part
of his tour of African nations to thank them for their
support after he took power in November 2017.
During the Tanzanian visit, the two leaders agreed to
further cement economic and trade cooperation.
Prices of basic
commodities continue to soar across Zimbabwe
as government admits it has no powers to arrest
HARARE, Zimbabwe (Xinhua) --
Prices of basic commodities
and drugs continue to gallop in Zimbabwe amid government
admission that it is helpless when it comes to punishing
Although bread prices and maize meal have remained
stable for a while, prices of other basic commodities
such as cooking oil, rice, cordial drinks and soaps
continue to soar as some retailers begin to peg prices
using black market foreign exchange rates.
For instances, the most popular orange crush, Mazoe,
which was selling at about 8 RTGS dollars on Saturday
was selling for about 11 RTGS dollars on Monday.
"Every time delivery trucks bring in more
commodities, we know that they also bear new prices,"
said a supervisor at one of the major retail shops in
At the weekend, some shops under one of the country’s
major retail brands was selling its commodities in
United States dollars but still accepted the local RTGS
dollar at a rate of 1:8.
Finance and Economic Development Minister Mthuli
Ncube told the House of Assembly on Monday that the
government could not arrest retailers for profiteering
and was also not in a position to impose price controls
as this would cause "major problems" for the economy.
Some legislators were agitating for authorities to
punish retailers of pricing goods out of the reach of
"Quite clearly there is indiscipline.
"That is unethical (but) you cannot arrest people for
that; neither can you start instituting price controls.
"That will cause major problems.
"Our hope is that sanity will come back to the
"We will restore confidence and will stabilize the
exchange rate to a point where retailers see that they
ought not to do that.
"We cannot use the law to enforce an exchange rate in
that way," he said.
exporters keeping U.S. $900 million dollars in
HARARE Zimbabwe (Xinhua) --
Zimbabwe has not yet received
an outstanding 900 million U.S. dollars from its export
earnings over the last 17 months at a time when the
country is facing acute foreign currency shortages, a
senior government official said on Monday.
George Guvamatanga, permanent secretary in the
ministry of finance, told a parliamentary portfolio
committee on budget and finance that the country’s
exports in 2018 stood at 1.4 billion U.S. dollars and
out of this 500 million was still outstanding.
Between January and May 2109 the country’s exports
were 1.4 billion dollars and 400 million was still to be
repatriated to the country.
An additional 800 million dollars was sitting in
exporters’ local foreign currency accounts, Guvamatanga
"There is 1.7 billion U.S. dollars that should be
available in this economy to pay for the
pharmaceuticals, to pay for the fuel and all the
requirements we need as an economy," he said.
"The issue is how do we enhance the inter-bank market
so that those export proceeds can be liquidated on the
Zimbabwean exporters have 90 days to repatriate their
export earnings to the country, but they are allowed to
retain a prescribed percentage of their export proceeds
in hard currency for 90 days after which the unused
funds will be released onto the market at the prevailing
The central bank introduced an inter-bank foreign
exchange market in February, discarding the 1:1 parity
between the local currency and the U.S. dollar.
Staring at 2.5 to the U.S. dollar, the local RTGS
dollar is now trading at 5 to the U.S. dollar on the
inter-bank market, compared to black market rates of
around 7 to the greenback.
kills eight people engaged in unauthorized mining
HARARE Zimbabwe (Xinhua) --
At least eight people died at a mine in
Mazowe, about 40 km north of Harare, after a mine shaft
they were working in collapsed following an explosion,
the information department in the Zimbabwean government
The Ministry of Information, Publicity and
Broadcasting Services posted on Twitter that the
incident involved illegal miners.
"Government received tragic news of a mining incident
at Jumbo Mine in Mazowe.
"Information at hand indicates that some people
engaged in unauthorized mining exploded dynamite in one
shaft causing a collapse in an adjacent shaft."
"Eight bodies have been recovered so far.
Investigations (are) underway," the ministry said.
Zimbabwe in February suffered one of its worst mining
disasters in recent years when 28 miners died in Kadoma
after their mine shafts were flooded following heavy
Zimbabwe rules out
electricity tariff increase amid power shortages
HARARE Zimbabwe (Xinhua) --
The Zimbabwean government on Monday ruled
out tariff increases on electricity as the nation faces
its worst power shortages in three years.
Instead, the government said it will try to increase
power imports and improve power generation efficiency to
alleviate the situation.
Finance Minister Mthuli Ncube said this while
appearing before parliament’s budget and finance
A legislator had asked if it was sustainable for the
power utility to continue charging the same tariff.
The legislator argued that Zimbabwe’s current power
tariffs had become the cheapest in the Southern African
"Any ill-advised tariff increase to bring it in line
with regional levels will trigger another round of price
increases and inflation.
"The only strategy to deal with this problem is to
increase supply through imports," Mthuli said.
"We have to allocate more resources and import more
power to supplement local supplies," Mthuli said.
The power utility has previously applied on numerous
times for a tariff increase without any success.
The country is facing acute power shortages due to
low generation at main power plant Kariba as well as
foreign currency shortages, which have forced the he
power utility to introduce biting load shedding to
manage the situation.
utility reverts to "normal" load shedding hours
HARARE Zimbabwe (Xinhua) --
The Zimbabwe Electricity Transmission and
Distribution Company (ZETDC) has reverted to Stage 1
load shedding after fixing a fault at the Hwange Thermal
Power Station which had forced it to extend load
The company announced overnight on Sunday that the
fault had been repaired and consumers would no longer
suffer periods of load shedding under State 2 which it
had announced on Saturday morning.
Consumers experience around eight hours of load
shedding under the Stage 1 schedule, with Stage 2 coming
in when power supplies deteriorate further.
The company introduced load shedding mid-May
following depressed generation at the Kariba Hydro Power
Station where authorities have begun rationing water
allocations due to low water levels in the lake caused
by the severe drought of 2018/19.
Zimbabwe had enjoyed more than four years without
load shedding, but the drought has pushed the Zambezi
River Authority (ZRA) to reduce water allocation to
ZETDC’s sister company - the Zimbabwe Power Company -
from 19 billion cubic meters to 16 billion cubic meters
for 2019, thus reducing power generation to 358MW for
Zimbabwe and 392MW for Zambia and resulting in the two
countries rationing the available power.
The rationing is meant to ensure that the plant
continues to run until the next rainy season.
Zimbabwe is currently generating less than 820MW from
three power stations against a daily peak demand of
1,600MW in winter and 1,400MW in summer.
Power generation at Hwange and the smaller thermal
power stations of Harare, Bulawayo and Munyati remains
fragile because of aged equipment.
Chinese company Sinohydro is currently refurbishing
Hwange at a cost of 1.5 billion U.S. dollars to add two
generators each producing 300MW.
The power station currently has an installed capacity
of 920MW but cannot generate at optimum level because of
the aged equipment.
ZRA said recently that Mozambique’s Hydro Electrica
de Cahorra Bassa had offered Zimbabwe and Zambia power
imports in exchange for further reduced power generation
by the two countries at their Kariba Dam plants.
Cahorra Bassa Dam is overflowing following recent two
cyclone-induced floods, and authorities in Mozambique
favor having Zimbabwe and Zambia storing more water in
Kariba Dam, which is upstream of Cahorra Bassa on the
Zambezi River, to reduce inflows into the downstream dam
and thus protect the infrastructure at Cahorra Bassa.