US embassy cable - 03HARARE448

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Econ 101 for Mugabe's Finance Minister

Identifier: 03HARARE448
Wikileaks: View 03HARARE448 at Wikileaks.org
Origin: Embassy Harare
Created: 2003-03-03 14:30:00
Classification: UNCLASSIFIED//FOR OFFICIAL USE ONLY
Tags: ECON EINV ETRD ZI
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.


 
UNCLAS HARARE 000448 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF/S 
NSC FOR SENIOR AFRICA DIRECTOR JFRAZER 
USDOC FOR 2037 DIEMOND 
PASS USTR ROSA WHITAKER 
TREASURY FOR ED BARBER AND C WILKINSON 
STATE PASS USAID FOR MARJORIE COPSON 
 
E. O. 12958: N/A 
TAGS: ECON, EINV, ETRD, ZI 
SUBJECT: Econ 101 for Mugabe's Finance Minister 
 
1. (SBU) We have learned of an exchange between Finance 
Minister Herbert Murerwa and Dairiboard CEO Anthony 
Mandiwanza.  14 CEOs had recently called on Murerwa to 
plead for an end to the GOZ's convoluted macroeconomic 
policies.  The Finance Minister began the session by 
apologizing that his office was unable to purchase milk 
for the tea and coffee on the table.  Dairiboard's 
Mandiwanza, who also heads the Confederation of 
Industries, seized the moment and suggested that milkless 
beverages should be the meeting's first topic.  He 
explained that firms he represents pay farmers 
Z$120/liter for milk.  On average, each liter carries an 
additional Z$200 of overhead by the time it reaches the 
retail market.  "That's why, Mr. Minister," he concluded, 
"your staff can't get a liter of milk at the controlled 
price of Z$80." 
 
2. (U) Comment: It's not rocket science. 
 
Sullivan 

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