By: Bathandwa Mbola


Speaking at the UN General Assembly in New York on Thursday, 25 September 2008, Mugabe said sanctions were hampering the restoration of Zimbabwe's economy.

"Once again, I appeal to the world's collective conscience to apply pressure for the immediate removal of these sanctions by Britain, the United States and their allies, which have brought untold suffering to our people," Mugabe told leaders.

European Union governments imposed stiffer sanctions on Zimbabwe in July, including freezing assets and denying travel visas to a further 37 associates of Mugabe.

EU sanctions previously hit 131 of his allies. A US proposal for an arms embargo, travel ban and asset freeze on 14 Zimbabwean officials was vetoed by China and Russia at the UN Security Council in the same month.

President Mugabe pledged to respect the spirit and the letter of the power-sharing deal which he and Movement for Democratic Change (MDC) leader Morgan Tsvangirai signed on 15 September.

During his first formal public appearance following the signing of the agreement, Mr Mugabe paid tribute to former South African President Thabo Mbeki for mediating the power-sharing agreement earlier this month.

Mugabe lauded Mr Mbeki "whose patience, fortitude, sensitivity, diplomatic skills and painstaking work made it possible for the Zimbabwean parties to overcome what had appeared to be insurmountable and intractable difficulties to reaching agreement."

Under the deal, a new government is to be formed with ministers from both Zanu-PF and the MDC.

Negotiations on completing the cabinet, to be shared between the MDC and Mr Mugabe's Zanu-PF party are continuing in Harare while the President is in New York.

Zimbabwe is in its 10th year of economic recession and has the world's highest inflation rate, 11,2 million percent, following a land-redistribution campaign which begun by Mr Mugabe in 2000.

The program, in which white-owned commercial farms were seized for redistribution to black farmers deprived of land during colonial rule, cut agricultural output and led to shortages of basic commodities including flour and cooking oil.

The European Commission has committed to providing an extra 10 million Euros in humanitarian relief aid to Zimbabweans, impoverished by the country's crippled economy.

This is over and above the 15 million Euros in food aid already allocated this year, the EU executive said in a statement.

Meanwhile, according to the Zimbabwean newspaper The Herald, Zimbabwe's central bank on Thursday licensed 600 shops to sell goods in foreign currency. This will help curtail the black market trade and scarce supplies of basic commodities.

This is the latest in a series of central bank policies meant to ease the effects of a devastating economic crisis.

Reserve Bank Governor Gideon Gono, speaking to The Herald, said that allowing motorists to buy fuel and some shops to charge in foreign currency would stop thousands of Zimbabweans from going shopping in neighbouring countries and revive struggling manufacturers.

Basic goods are scarce in Zimbabwe and when they become available they are sold at high prices.

However, the Reserve Bank said the Zimbabwe dollar remained the official currency and that basic commodities like maize-meal, sugar, cooking oil, school uniforms and medicines would be sold in local currency unless there was proof they had been imported.

Article published courtesy of BuaNews

[29 Sep 2008 09:19]

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