US embassy cable - 00HARARE4611

NEW TRADE MINISTER MOYO IS A BREATH OF FRESH AIR

Identifier: 00HARARE4611
Wikileaks: View 00HARARE4611 at Wikileaks.org
Origin: Embassy Harare
Created: 2000-08-17 16:34:00
Classification: CONFIDENTIAL
Tags: PREL ECON PINR PHUM ZI EFIN EAGR
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

171634Z Aug 00


                           CONFIDENTIAL     PTQ1036

PAGE 01        HARARE  04611  01 OF 03  171638Z 
ACTION AF-00    

INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00  
      SMEC-00  CTME-00  DINT-00  DODE-00  DOEE-00  DOTE-00  SRPP-00  
      DS-00    EB-00    EUR-00   EXIM-01  E-00     FAAE-00  FBIE-00  
      VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00    ITC-01   
      LAB-01   L-00     VCE-00   AC-01    NSAE-00  OIC-02   OMB-01   
      OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00     SP-00    
      SSO-00   SS-00    STR-00   T-00     USIE-00  PMB-00   DSCC-00  
      PRM-01   DRL-02   G-00     NFAT-00  SAS-00   SWCI-00    /013W
                  ------------------7B0632  171711Z /38    
FM AMEMBASSY HARARE
TO SECSTATE WASHDC PRIORITY 6873
INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
AMEMBASSY LONDON 
AMEMBASSY PARIS 
AMEMBASSY THE HAGUE 
USDOC WASHDC
NSC WASHDC
DEPTTREAS WASHDC
C O N F I D E N T I A L SECTION 01 OF 03 HARARE 004611 
 
SIPDIS 
 
STATE FOR AF, AF/S, AF/EPS, EB/IFD/ODF, EB/TPP/ODC 
TREASURY FOR ED BARBER, GRACE SONE, AND HOFFMAN BARAK 
USDOC FOR 2037/ERIC HENDERSON 
STATE PASS USTR/RWHITTAKER 
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH 
                       CONFIDENTIAL 
 
PAGE 02        HARARE  04611  01 OF 03  171638Z 
LONDON FOR CHARLES GURNEY 
 
E.O. 12958: DECL: 08/17/05 
TAGS: PREL, ECON, PINR, PHUM, ZI, EFIN, EAGR 
SUBJECT: NEW TRADE MINISTER MOYO IS A BREATH OF FRESH AIR 
 
REF: HARARE 3910 
 
CLASSIFIED BY AMBASSADOR MCDONALD, REASON 1.5 (B), (D) 
 
SUMMARY 
------- 
 
1.  (C) NEW INDUSTRY AND INTERNATIONAL TRADE MINISTER 
NKOSANA MOYO TOLD THE AMBASSADOR AUGUST 15 THAT PRESIDENT 
MUGABE WAS DETERMINED TO SEIZE 3,000 FARMS AND HAD NO 
INTENTION OF PROVIDING COMPENSATION.  MOYO CLAIMED THAT 
MOST CABINET MEMBERS WERE IN FAVOR OF A FAIR, 
TRANSPARENT LAND REFORM EFFORT, AND ADMITTED THAT THE 
GOVERNMENT DOES NOT HAVE THE RESOURCES TO PROVIDE 
SIGNIFICANT ASSISTANCE TO RESETTLED FAMILIES.  MOYO 
SHARED THE AMBASSADOR'S CONCERN ABOUT LAWLESSNESS IN THE 
RURAL AREAS.  THE AMBASSADOR STRESSED THAT SEIZURE OF 
FARMS WITHOUT COMPENSATION IS ILLEGAL AND IS NEARLY 
ELIMINATING ANY NEW FOREIGN INVESTMENT, AND SAID THE 
GOVERNMENT'S ACTIONS WOULD SPEAK LOUDER THAN ITS WORDS. 
MOYO IS AN ACCOMPLISHED BUSINESSPERSON AND A CAPABLE 
POLITICAL INDEPENDENT WHO INTENDS TO WORK TO REVERSE SOME 
OF THE GOVERNMENT'S RUINOUS POLICIES.  HE IS AN 
INEXPERIENCED POLITICIAN, HOWEVER, AND WE ARE SKEPTICAL 
THAT MUGABE WILL GIVE HIM SUFFICIENT ROOM TO MANEUVER, 
                       CONFIDENTIAL 
 
PAGE 03        HARARE  04611  01 OF 03  171638Z 
BUT THE EMBASSY WANTS TO ASSIST HIM.  END SUMMARY. 
 
----------------- 
MOYO'S OBJECTIVES 
----------------- 
 
2. (C) AMBASSADOR MCDONALD ASKED RECENTLY-APPOINTED 
MINISTER OF INDUSTRY AND INTERNATIONAL TRADE NKOSANA MOYO 
ON AUGUST 16 WHAT HE HOPED TO ACCOMPLISH IN HIS NEW 
POSITION.  MOYO SAID HIS PRIMARY FOCUS WOULD BE TO HELP 
THE ZIMBABWEAN GOVERNMENT FORGE A MORE COOPERATIVE 
RELATIONSHIP WITH THE PRIVATE SECTOR.  HE ALSO PLANNED TO 
TRY TO REPAIR SOME OF ZIMBABWE'S BILATERAL AND 
MULTILATERAL RELATIONSHIPS. 
 
----------- 
LAND REFORM 
----------- 
 
3.  (C) MOYO THEN TURNED TO THE LAND QUESTION, 
ACKNOWLEDGING THE PROBLEM OF LAWLESSNESS ON THE FARMS. 
HE TERMED THE GOVERNMENT'S PUBLIC RELATIONS EFFORT 
"APPALLING," AND SAID IT MUST DO A BETTER JOB OF 
EXPLAINING THE RATIONALE FOR ITS ACTIONS.  PRESIDENT 
MUGABE IS SERIOUS ABOUT SEIZING 3,000 FARMS AND WANTS ALL 
OF THEM IDENTIFIED NOW AND RESETTLED AS SOON AS POSSIBLE. 
MOYO EXPRESSED HIS VIEW THAT MANY OF THESE FARMS HAD LONG 
BEEN IDLE, SO THEIR RESETTLEMENT WOULD NOT HAVE A SERIOUS 
IMPACT ON PRODUCTIVITY. 
 
4.  (C) THE AMBASSADOR NOTED THAT THE GOVERNMENT DOES NOT 
                       CONFIDENTIAL 
 
PAGE 04        HARARE  04611  01 OF 03  171638Z 
HAVE THE NECESSARY RESOURCES FOR AN EFFECTIVE 
RESETTLEMENT EFFORT AND THAT SUCH AN EFFORT WOULD 
SUBSTANTIALLY HURT AGRICULTURAL PRODUCTION.  THE FARM 
OCCUPATIONS, HE STRESSED, ARE ILLEGAL, HAVE BEEN TERRIBLY 
DISRUPTIVE, AND GIVE ZIMBABWE A BLACK EYE ABROAD.  THE 
UNITED STATES AGREES THAT LAND REFORM IS NECESSARY AND A 
MATTER OF SOCIAL JUSTICE, BUT IT SHOULD BE DONE IN A 
FAIR, TRANSPARENT PROCESS.  IN ADDITION, SEIZURES OF 
FARMS WITHOUT COMPENSATION WILL SOUR RENEWED DONOR 
SUPPORT FOR LAND REFORM.  IT IS CRITICAL THAT THE 
GOVERNMENT ADDRESS THIS AND ITS OTHER ECONOMIC PROBLEMS 
SERIOUSLY, AS MORE AND MORE INDUSTRIES, INCLUDING MINING, 
ARE SUFFERING, AND THE PATIENCE OF THE INTERNATIONAL 
COMMUNITY IS WEARING THIN. 
 
5. (C) MOYO ACKNOWLEDGED THAT THE GOVERNMENT WOULD BE 
UNABLE TO PROVIDE RESETTLED FAMILIES WITH SIGNIFICANT 
RESOURCES, BUT THOUGHT MANY WERE PEASANT FARMERS WHO 
WOULD BE ABLE TO LOOK AFTER THEMSELVES.  HE AGREED THAT 
COMPENSATION WAS IMPORTANT BUT DID NOT THINK HE COULD 
REVERSE THE GOVERNMENT'S DETERMINATION NOT TO PAY FOR THE 
SEIZED FARMS.  THE GOVERNMENT, MOYO ADMITTED, HAS DUG 
ITSELF INTO A HOLE, BUT ITS PRIDE MAKES IT DIFFICULT TO 
DO WHAT IS NECESSARY TO DIG ITSELF OUT.  HE HOPED TO 
TRAVEL SOON TO LONDON TO TRY TO ESTABLISH A MORE 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ1037 
 
PAGE 01        HARARE  04611  02 OF 03  171639Z 
ACTION AF-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00 
      SMEC-00  CTME-00  DINT-00  DODE-00  DOEE-00  DOTE-00  SRPP-00 
      DS-00    EB-00    EUR-00   EXIM-01  E-00     FAAE-00  FBIE-00 
      VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00    ITC-01 
      LAB-01   L-00     VCE-00   AC-01    NSAE-00  OIC-02   OMB-01 
      OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00     SP-00 
      IRM-00   SSO-00   SS-00    STR-00   T-00     USIE-00  R-00 
      PMB-00   DSCC-00  PRM-01   DRL-02   G-00     NFAT-00  SAS-00 
      SWCI-00    /013W 
                  ------------------7B0638  171712Z /38 
P 171634Z AUG 00 
FM AMEMBASSY HARARE 
TO SECSTATE WASHDC PRIORITY 6874 
INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 
AMEMBASSY LONDON 
AMEMBASSY PARIS 
AMEMBASSY THE HAGUE 
USDOC WASHDC 
NSC WASHDC 
DEPTTREAS WASHDC 
 
C O N F I D E N T I A L SECTION 02 OF 03 HARARE 004611 
 
SIPDIS 
 
STATE FOR AF, AF/S, AF/EPS, EB/IFD/ODF, EB/TPP/ODC 
TREASURY FOR ED BARBER, GRACE SONE, AND HOFFMAN BARAK 
USDOC FOR 2037/ERIC HENDERSON 
STATE PASS USTR/RWHITTAKER 
                       CONFIDENTIAL 
 
PAGE 02        HARARE  04611  02 OF 03  171639Z 
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH 
LONDON FOR CHARLES GURNEY 
 
E.O. 12958: DECL: 08/17/05 
TAGS: PREL, ECON, EFIN, EAGR, PINR, PHUM, ZI 
SUBJECT: NEW TRADE MINISTER MOYO IS A BREATH OF FRESH AIR 
 
CONSTRUCTIVE, BACK-CHANNEL DIALOGUE WITH BRITAIN ON LAND. 
(IN A ONE-ON-ONE AFTER THE FORMAL MEETING, MOYO TOLD THE 
AMBASSADOR THAT THESE CONTACTS WOULD ORIGINATE THROUGH 
STANDARD CHARTERED BANK IN THE UNITED KINGDOM, HIS 
PREVIOUS EMPLOYER.)  WITHOUT ELABORATING, HE SAID 
PRESIDENT MUGABE HAD GIVEN HIM THE GREEN LIGHT TO MOVE 
FORWARD ON A RANGE OF KEY ISSUES. 
 
6.  (C) THE AMBASSADOR COMMENTED THAT THE GOVERNMENT HAS 
USED LAND REFORM AS A POLITICAL TOOL TO GARNER ELECTORAL 
SUPPORT.  MOYO ACKNOWLEDGED THAT LAND REFORM IS A 
POLITICAL ISSUE FOR SOME CABINET MEMBERS, BUT NOT FOR 
MUGABE, WHO PERCEIVES IT AS A CORRECTION OF AN INJUSTICE. 
MOYO SAID HE THOUGHT SOME POSITIVE MOVEMENT COULD BE 
ACHIEVED ON LAND REFORM, SINCE MOST OF THE CABINET WAS ON 
THE "RIGHT SIDE" OF THE ISSUE.  HE THOUGHT MUGABE COULD 
BE CONVINCED TO TONE DOWN HIS PUBLIC RHETORIC, BUT SAID 
HIS MAIN CONCERN WAS WITH INFORMATION MINISTER JONATHAN 
MOYO, WHO CAN DO THE MOST DAMAGE.  A CHANGE IN RHETORIC 
WOULD CERTAINLY BE HELPFUL, THE AMBASSADOR NOTED, BUT 
POSITIVE, CONCRETE ACTIONS WOULD SEND THE MOST POWERFUL 
MESSAGE.  THE FUNDAMENTAL POINT, HE EMPHASIZED, WAS THAT 
THE RULE OF LAW MUST BE RESTORED.  THE AMBASSADOR SAID 
THE U.S. WANTS TO HELP, BUT NOT UNDER THESE CONDITIONS. 
                       CONFIDENTIAL 
 
PAGE 03        HARARE  04611  02 OF 03  171639Z 
 
----------------------------------------- 
NEW PARLIAMENT AND MOYO'S ROLE IN CABINET 
----------------------------------------- 
 
7.  (C) ASKED FOR HIS ASSESSMENT OF THE NEW PARLIAMENT, 
MOYO SAID BOTH THE RULING ZANU-PF AND THE MDC ARE SHOWING 
"INCREDIBLE IMMATURITY," WHICH WOULD PROBABLY PREVENT HIM 
FROM JOINING A POLITICAL PARTY IN THE NEAR FUTURE.  THE 
AMBASSADOR ASKED WHETHER MOYO FELT UNCOMFORTABLE AS A 
MEMBER OF THE CABINET, GIVEN HIS REPUTATION AS A 
POLITICAL INDEPENDENT (REFTEL).  ON THE CONTRARY, MOYO 
REPLIED.  HE FELT INCREDIBLE FREEDOM AND WAS NOW 
CONVINCED THAT NOT JOINING A POLITICAL PARTY WAS THE BEST 
THING HE HAD EVER DONE.  HE HAD NOT BEEN REQUIRED TO JOIN 
ZANU-PF AND, IN FACT, HAD GIVEN A SPEECH ON ZIMBABWEAN 
TELEVISION AFTER HIS APPOINTMENT MAKING IT CLEAR THAT HE 
WAS NOT A MEMBER OF THE RULING PARTY AND EXPRESSING HIS 
DETERMINATION TO BE A MINISTER FOR THE COUNTRY AS A 
WHOLE.  MANY PEOPLE SUBSEQUENTLY HAD ASKED HIM WHY HE HAD 
JOINED THE CABINET.  HE TOLD THEM HE CONSIDERED IT HIS 
OBLIGATION TO DO ALL HE COULD TO PREVENT THE ZIMBABWEAN 
SHIP FROM SINKING. 
 
---------------------- 
FINANCIAL DIFFICULTIES 
---------------------- 
 
8.  (C) ASKED HOW THE GOVERNMENT PLANNED TO ADDRESS ITS 
SERIOUS ECONOMIC DIFFICULTIES, MOYO SAID HE IS WORKING 
CLOSELY WITH FINANCE MINISTER SIMBA MAKONI ON NEXT STEPS. 
                       CONFIDENTIAL 
 
PAGE 04        HARARE  04611  02 OF 03  171639Z 
IN THE NEAR TERM, THE GOVERNMENT HAD TALKED TO THE DUTCH 
ABOUT ACQUIRING ASSISTANCE TARGETTED AT RESETTLEMENT OF A 
LIMITED NUMBER OF FARMS, AS WELL AS THE FUEL AND 
ELECTRICITY SECTORS.  IN ADDITION, THE CABINET HAD 
APPROVED THE MILLENIUM ECONOMIC RECOVERY PLAN THE 
PREVIOUS WEEK.  THE PLAN SEEKS, INTER ALIA, TO REDUCE THE 
BUDGET DEFICIT FROM 14 TO 10 PERCENT, ESTABLISH A 
REALISTIC EXCHANGE RATE, DOWNSIZE THE BLOATED CIVIL 
SERVICE, AND RE-ESTABLISH RELATIONS WITH THE IFI'S. 
 
9. (C) THE ECONOMIC RECOVERY PLAN, MOYO CONTINUED, ALSO 
STRESSED THE NEED TO BETTER "MANAGE" THE ISSUE OF TROOPS 
IN THE DROC.  HE ASKED WHY UN TROOPS HAD NOT YET BEEN 
DEPLOYED THERE.  MONUC DEPLOYMENT HAD NOT BEEN EXPANDED, 
THE AMBASSADOR EXPLAINED, BECAUSE SUFFICIENT SAFETY 
GUARANTEES WERE NOT IN PLACE.  BEFORE SUCH A DEPLOYMENT 
COULD OCCUR, KABILA HAD TO MEET HIS LUSAKA ACCORDS 
COMMITMENTS, AND ZIMBABWE COULD PLAY A POSITIVE ROLE IN 
PRESSING KABILA TO DO SO, THE AMBASSADOR POINTED OUT. 
 
---------------------- 
ANTI-AMERICAN RHETORIC 
---------------------- 
 
10.  (C) THE AMBASSADOR EXPRESSED CONCERN ABOUT RECENT 
ANTI-AMERICAN STATEMENTS FROM GOVERNMENT OFFICIALS, 
 
                       CONFIDENTIAL 
 
                           CONFIDENTIAL     PTQ2063 
 
PAGE 01        HARARE  04611  03 OF 03  180009Z 
ACTION AF-00 
 
INFO  LOG-00   NP-00    AGRE-00  AID-00   ACQ-00   CEA-01   CIAE-00 
      SMEC-00  CTME-00  DINT-00  DODE-00  DOEE-00  DOTE-00  SRPP-00 
      DS-00    EB-00    EUR-00   EXIM-01  E-00     FAAE-00  FBIE-00 
      VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00    ITC-01 
      LAB-01   L-00     VCE-00   AC-01    NSAE-00  OIC-02   OMB-01 
      OPIC-01  PA-00    PM-00    PRS-00   ACE-00   P-00     SP-00 
      SSO-00   SS-00    STR-00   T-00     USIE-00  PMB-00   DSCC-00 
      PRM-01   DRL-02   G-00     NFAT-00  SAS-00     /013W 
                  ------------------7B23FE  180009Z /21 
P 171634Z AUG 00 
FM AMEMBASSY HARARE 
TO SECSTATE WASHDC PRIORITY 6875 
INFO SOUTHERN AFRICAN DEVELOPMENT COMMUNITY 
AMEMBASSY LONDON 
AMEMBASSY PARIS 
AMEMBASSY THE HAGUE 
USDOC WASHDC 
NSC WASHDC 
DEPTTREAS WASHDC 
 
C O N F I D E N T I A L SECTION 03 OF 03 HARARE 004611 
 
SIPDIS 
 
STATE FOR AF, AF/S, AF/EPS, EB/IFD/ODF, EB/TPP/ODC 
TREASURY FOR ED BARBER, GRACE SONE, AND HOFFMAN BARAK 
USDOC FOR 2037/ERIC HENDERSON 
STATE PASS USTR/RWHITTAKER 
NSC FOR SENIOR AFRICA DIRECTOR GAYLE SMITH 
                       CONFIDENTIAL 
 
PAGE 02        HARARE  04611  03 OF 03  180009Z 
LONDON FOR CHARLES GURNEY 
 
E.O. 12958: DECL: 08/17/05 
TAGS: PREL, ECON, EFIN, EAGR, PINR, PHUM, ZI 
SUBJECT: NEW TRADE MINISTER MOYO IS A BREATH OF FRESH AIR 
 
PROMPTED BY THE U.S. CONGRESS' ACTION ON THE ZIMBABWE 
DEMOCRACY ACT.  SUCH RHETORIC WAS NOT A HELPFUL WAY TO 
CONDUCT OUR BILATERAL BUSINESS, AND HE HOPED WE COULD 
DISCUSS OUR DIFFERENCES IN A MORE LOW-KEY, PRIVATE 
MANNER.  MOYO AGREED. 
 
------- 
COMMENT 
------- 
 
11.  (C) MOYO IS A WELL-REGARDED, CAPABLE FIGURE, WHOSE 
APPOINTMENT TO THE CABINET WAS A SURPRISE, GIVEN HIS 
REPUTATION AS A POLITICAL INDEPENDENT.  A WELL-TO-DO 
INVESTMENT BANKER AND CLOSE CONTACT OF THE EMBASSY, MOYO 
APPEARS MOTIVATED BY A GENUINE DESIRE TO SERVE HIS 
COUNTRY AND REVERSE THE GOVERNMENT'S DISASTROUS POLICIES. 
HE IS NOT AN EXPERIENCED POLITICIAN, HOWEVER, WHICH COULD 
HINDER HIS EFFECTIVENESS, PARTICULARLY IN THE CURRENT 
TOUGH POLITICAL ENVIRONMENT.  IN THE ONE-ON-ONE AFTER THE 
FORMAL MEETING, MOYO TOLD THE AMBASSADOR HE HAD NOT BEEN 
CONSULTED ABOUT THE CABINET POSITION, BUT HAD LEARNED OF 
HIS APPOINTMENT ON TELEVISION.  ALTHOUGH MOYO BELIEVES HE 
HAS THE PRESIDENT'S CONFIDENCE, WE ARE SKEPTICAL THAT 
MUGABE WILL GIVE HIM THE NECESSARY MANEUVERING ROOM TO 
EFFECT A SIGNIFICANT CHANGE EITHER IN THE GOVERNMENT'S 
                       CONFIDENTIAL 
 
PAGE 03        HARARE  04611  03 OF 03  180009Z 
HISTORICAL MISHANDLING OF THE ECONOMY OR ITS APPROACH ON 
LAND.  HE HAS BEEN OUTSPOKEN, HOWEVER.  THE DAY AFTER HIS 
MEETING WITH THE AMBASSADOR, MOYO REPORTEDLY TOLD THE 
CONFEDERATION OF ZIMBABWE INDUSTRIES THAT THE LAWLESSNESS 
WAS DAMAGING ZIMBABWE'S INTERNATIONAL IMAGE AND THAT 
FOREIGN INVESTMENT WAS UNLIKELY TO BE FORTHCOMING IN THE 
CURRENT ENVIRONMENT.  WE DO WANT TO HELP MOYO AND WILL 
LOOK FOR WAYS TO DO SO. 
 
MCDONALD 
 
                       CONFIDENTIAL 
 
> 

Latest source of this page is cablebrowser-2, released 2011-10-04