US embassy cable - 02HARARE2214

UNCLAS SECTION 01 OF 03 HARARE 002214 
 
SIPDIS 
 
SENSITIVE 
 
ROME PASS TO AMBASSADOR TONY HALL, MAX FINBERG 
AND TIM LAVELLE AT FODAG 
STATE FOR AF/S 
USAID/W FOR DCHA,OFDA,FFP AND AFR 
 
E.O. 12958: N/A 
TAGS: EAID, ZI 
SUBJECT: MAJOR ISSUES FOR AMBASSADOR TONY HALL'S VISIT 
TO ZIMBABWE, OCTOBER 8 - OCTOBER 11 2002 
 
 
SENSITIVE BUT UNCLASSIFIED, PLEASE PROTECT ACCORDINGLY. 
NOT SUITABLE FOR INTERNET POSTING. 
 
1.  (SBU) The US Mission in Zimbabwe welcomes the visit 
of Ambassador Anthony Hall to Zimbabwe.  Ambassador 
Hall's schedule includes several meetings with donors 
and NGOs working on the delivery of humanitarian 
assistance, senior Government of Zimbabwe (GOZ) 
officials and civil society leaders. 
 
We expect that these meetings will focus on the 
following seven major issues: 
 
------------------------------------------ 
Issue 1:  GOZ Policies and the Food Crisis 
------------------------------------------ 
 
2. (SBU) The economic and political policies of the 
GOZ have created the food crisis in Zimbabwe.  This 
mismanagement has been aggravated by the lack of rain 
during the critical growing period last season.  Many 
of the same policies have hindered the domestic and 
international response to the crisis. Most importantly, 
the Grain Marketing Board's monopoly on the purchase of 
grain from local producers and on the import of grain, 
along with government price controls on basic 
commodities (including maize) far below market price 
deters production and prevents the private sector from 
ameliorating the crisis.  The impact of the fast track 
land reform program is well known.  The lack of foreign 
exchange, due to the unrealistic fixed exchange rate, 
has limited the GOZ's ability to import food and fuel 
to move the food.  This has contributed to a black 
market in basic foods which has pushed them outside of 
the ability of many even with some money to purchase 
staple foods.  The implosion of the economy has also 
significantly limited the GOZ's ability to provide 
agricultural inputs (seed, fertilizer, and land 
preparation) to the new farmers, guaranteeing a 
continuation of the food crisis after the next harvest. 
 
-- Post recommends that you raise these policy issues 
in meetings with GOZ officials in order to facilitate 
the operation of the donors trying to respond to the 
food crisis and to permit the participation of the 
private sector.  A change in these policies would 
lessen the severity of the inevitable continuation of 
the crisis next year. 
 
------------------- 
Issue 2:  Food Gap 
------------------- 
 
3. (SBU) The recently released Emergency Food Security 
Assessment report indicates that a more realistic 
estimate of the food gap may be 5-600,000MT prior to 
the next harvest season.  The food gap is defined as 
the total amount of food needed to prevent massive 
hunger minus the sum of food in country, food the GOZ 
and private sector can import and food commitments by 
the donor community.  Without significantly greater 
food commitments to the WFP EMOP or a significant 
policy change by the GOZ to permit the private sector 
to participate, Zimbabwe faces a potentially 
significant human catastrophe.  Although the GOZ claims 
to be covering much of the gap, there are serious 
doubts that it will be able to import the additional 
650,000MT of grain it has promised.  Post does, though, 
recommend that you encourage the GOZ to meet its public 
commitments.  Even if the GOZ does fully meet this 
commitment, a significant gap will still exist (over 
100,000MT). 
 
-- Post recommends that you highlight this gap in 
discussions with WFP and other donors in order to 
encourage increased contributions, and with GOZ 
officials and in press contacts to push for policy 
changes that will permit the private sector to 
participate in the relief effort. 
 
------------------------------- 
Issue 3:  Biotech Food Imports 
------------------------------- 
 
4. (U) The USG has committed to providing significant 
food contributions to the current crisis.  However, 
current GOZ policies related to biotech food imports 
have impeded our efforts to meet this commitment.  The 
first round of this issue has been resolved with the 
signing of an MOU to swap GM whole kernel corn from the 
US with current non-GM maize held by the GOZ for 
distribution by WFP.  The GOZ will take responsibility 
for milling and distribution of the US grain.  This 
agreement only covers 17,500MT of corn currently held 
in Durban, RSA.  There is no formal agreement from the 
USG, WFP, or the GOZ on future imports of whole kernel 
corn from the US.  We are waiting to see how successful 
this swap will be. 
 
-- Post recommends that you discuss with GOZ officials 
and with WFP officials alternative means for future 
importation of US whole kernel corn, including the 
potential for further swaps or funding options for 
milling. 
 
---------------------- 
Issue 4:  NGO Capacity 
---------------------- 
 
5. (U) It is clear that Zimbabwe will need all the food 
it can get.  Non-GOZ food distribution is done through 
NGOs.  The NGOs that participate in the WFP program 
must be registered with the Ministry of Social Welfare. 
Currently, the WFP works with 7 international NGOs, 
and has only been able to reach less than half of its 
food distribution goal of 55,000MT per month.  WFP and 
the UN Resident Coordinator have been pressing this 
issue, but it is proving very difficult for additional 
NGOs to get registered; e.g., OXFAM, CRS and Save the 
Children (UK) were all rejected while at least 3 others 
are still waiting to be registered.  More international 
NGOs will be needed to meet the food requirements of 
the people. 
 
-- Post recommends that you bring up this critical 
issue in your meeting with the Minister of Social 
Welfare, July Moyo, whose Ministry is responsible for 
the registration of the NGOs. 
 
6. (SBU) Post is also concerned about the capacity of 
the NGOs already implementing programs to fulfill their 
numerous obligations.  USG and WFP policies are to use 
international NGOs to lead the implementation of their 
humanitarian assistance (HA) food distribution 
programs, some in partnership with local organizations. 
There are a very limited number of such NGOs registered 
to do this work in Zimbabwe.  Therefore, there is 
significant overlap of implementers between bilateral 
and multilateral food distribution programs.  In fact, 
the main NGOs (World Vision, CRS, and CARE) are used 
by both operations, in addition to their own programs. 
 
In addition, OFDA is entering into a seed distribution 
program with these same NGOs. 
 
-- Post recommends that you express concern about the 
capacity of the existing NGOs to carry out so many 
programs simultaneously when you meet with these 
groups. 
 
---------------------- 
Issue 5:  The PVO Law 
---------------------- 
 
7. (SBU) The GOZ has signaled its intention to crack 
down on the operation of Private Voluntary 
organizations (PVOs) (including Trusts), particularly 
those involved in democracy/human rights and in 
humanitarian assistance.  As many as 2/3 of the local 
NGOs could face closure and/or criminal penalties by 
being declared in violation of the current registration 
laws.  A new draft PVO law is also rumored to prohibit 
local PVOs from receiving support from sources outside 
of the country.  This could have far reaching impact on 
the entire US assistance program and cripple the 
current humanitarian assistance efforts of the donor 
community. 
 
-- While we are certain that WFP and NGOs will raise 
this issue with you, you should be sure to raise it 
with GOZ officials. 
 
--------------------------------------------- 
Issue 6:  Internally Displaced Persons (IDPs) 
--------------------------------------------- 
 
8. (SBU) Current estimates indicate that there are 
750,000 - 1 million IDPs in Zimbabwe.  Most of these 
are economically and/or physically displaced farm 
workers.  It is expected that this number could reach 2 
million IDPs by next year.  Both the USG and the UN are 
assessing the situation, but no one has programmed 
significant funds to deal with the problem. 
-- Post recommends that you raise this issue in 
discussions with the UN and others outside government 
and solicit views on what more can be done to address 
the problem.  We also recommend that you encourage the 
UN Resident Coordinator to get promised OCHA support in 
place as soon as possible. 
----------------------------------- 
Issue 7:  Monitoring Food Delivery 
----------------------------------- 
 
9. (SBU) You should be aware that there have been 
documented accusations of political bias in the GOZ's 
emergency food distribution program. The major food 
donors have been working with the UN to establish a 
food delivery monitoring unit ("Information and 
Verification Unit" - IVU) to investigate such charges 
related to all food distribution programs.  It has been 
agreed to set up this unit in the Relief and Recovery 
Unit (RRU) of the Office of the UN Resident 
Coordinator.  While the RRU has never been a strong 
player in donor coordination we had hoped that 
additional support from OCHA would strengthen their 
performance.  That support has not yet been put in 
place.  Unfortunately, the management of the RRU has 
continued to deteriorate and the donors have concerns 
about the viability not only of the RRU but of the 
much more important IVU. 
 
-- We recommend that you raise the future of the RRU 
and the IVU in your meetings with the Resident 
Coordinator as well as with other major food 
donors - most notably the EU Ambassador (the EU will be 
providing the bulk of funding for the IVU) and the High 
Commissioner of the UK (the other major food donor). 
SULLIVAN