Thursday, December 17, 2009

Minister Moyo speaks on 2009 in Retrospect

2009 in Retrospect – An Address by the Minister of State in the Prime Minister’s Office, Honourable Gorden Moyo, to Bulawao Business, Political and Civil Society, 11th December, 2009


Ladies and Gentlemen,


Thank you for allowing me this opportunity to address you today concerning what may well be one of the most important years in our nations history.

In February of this year, the new, inclusive Government, guided by the Global Political Agreement (GPA) set out to achieve the twin objectives of economic stabilization and democratization. Therefore, the past year should be measured against these deliverables.

This event followed a decade of sharp economic decline which resulted in a dramatic decrease of public funding in real terms and led to a severe deterioration of the health and education delivery system, as well the weakening of social protection systems and mechanisms.

Health and education services, once amongst the finest in Africa were, by the end of 2008 almost at the point of total collapse with mostly the poor and vulnerable groups and individuals failing to access essential services.

Ladies and Gentlemen, as you are all aware, we have come a long way in the past eleven months. Unfortunately, the progress of this Government and our nation has not been without its obstacles. The sucesses of the first half of the year have been diluted by a degree of stagnation on both the economic and democratic fronts.

However, it is important that we acknowledge the progress that has been made.

On the economic front, inflation has been slashed from trillions of percent to single digits and is expected to end the year in negative territory.

Revenue collections have dramatically increased from a mere $4m in February 2009 to just over $100m in October with bank deposits in the banking sector have grown threefold from $300m to $1 billion during the same period.

Basic commodities are readily available in shops with local products beginning to be more visible as industry production capacity levels have increased from below 10% to an average of 45% during the same period .

The BIPPA with South Africa has finally been signed after being on the cards for over 4 years, paving way for conclusion of pending deals not only with South Africa but also with the rest of the world.

The re-opening of the major referral hospitals and essential drug availability rising and essential drug availability at health institutions has increased to between 60 – 80%. All schools have re-opened and we have seen a significant retun in the number of teachers at these institutions.

In addition, Government has secured free agricultural inputs for the current season for for 760 000 households in communal areas as well as agricultural subsidies for A2 and resettled farmers

Ladies and Gentlemen, despite these achievements our nation continues to face significant challenges to further progress.

The primary one of these and the one that is of mort concern to Zimbabweans is the crisis in confidence of the new political dispensation as a result of the failure by all parties to fully implement the GPA.

Confidence forms the foundation of all growth, particulalrly that of business and its absence erodes our ability to rebuild our nation.

I can assure that the Prime Minister is seized by this obstacle and has out the full weight of his office behind finding realistic solutions to the obstacles of implementation as well as the on-going violations to the GPA.

Other challenges include, but are not limited to industry capacity utilization targets not reached partly because of the lines of credit that were not forthcoming including those that were pledged but not availed – this like many of the obstacles we face can be traced back to the delay in the full implementation of the GPA.

There also persists a shortage of liquidity and low disposable income as government and industry are still struggling from the effects of years of erosion of real incomes and the absence of direct budget support as donors preferred to support beneficiaries through the NGO networks.

The endemic rise of corruption within our is impacting negatively on the image of the country as well as revenue collection.

Poverty, marginalization and vulnerability are pervasive and deepening in Zimbabwe.

Poverty is a multifaceted social phenomenon that includes lack of access to productive assets, adequate food, health, education and other basic social amenities. It also includes the condition of gender inequality. Addressing inequalities and facilitate access to social services and fundamental needs, that severely deteriorated during the last crisis, will be key factors in consolidating peace and strengthening social cohesion as we move into the new year.

Despite these challenges, I remain optimistic that progress is inevitable that we will overcome the current challenges. This optimism is shared by the majority of Zimbabweans.

A survey to be released later today has established that 75% of Zimbabweans say that their economic conditions have improved since a year ago. More importantly, almost the same number believe that things will continue to improve over the coming 12 months.

Ladies and Gentlemen, the path that Zimbabwe has embarked upon to create a new Constitution and a new political environment is irreversible. However, we all have apart to play in this process.

The politicians must live up to the commitments contained in the GPA and the mandate that we have from the people to deliver real change.

The business community must demand from Government commitments to open and transparent business practices and a climate that is conducive to investment and growth. In addition, you need to work with Government to stamp out corruption before its effects on our economy become irreversible.

Finally, and probably most importantly, is the role to be played by civil society. I call upon you to partner Government in our progressive programs, to hold us to account on the delivery of freedoms to the people, and to provide the framework for the people’s expression and the amplifier for their voice.

Only if the voice of the people rings out loud and true will we be sure that Government stays on course to deliver real change.

By remaining united in the quest to rebuild our nation, to deliver a society that respects the rights of the individual and that protects those rights and a country that encourages and promotes economic growth, we will be able to once again take our position as a proud, prosperous member of the region and a beacon of hope and freedom.

I thank you.

Minister Moyo Launches Dunlop 50th Anniversary

Speech delivered by Honourable Minister of State in the Prime Minister’s Office Mr Gorden Moyo on the Dunlop Zimbabwe 50th Anniversary Launch in Bulawayo on 18th November 2009


Your Worship the Mayor of Bulawayo, Councillor Thaba Moyo,
Members of Parliament and Senators here present;
The Chairman of Dunlop Zimbabwe, Dr Luis Ceneviz,
Management and employees of Dunlop
Invited Guests,
Ladies and Gentlemen,

It gives me great pleasure to be the guest honour at the launch of the Dunlop Zimbabwe 50th Anniversary Celebrations. This occasion is a milestone in the history of the Apollo Group of Companies and Dunlop itself and in the history of Bulawayo and indeed of Zimbabwe.

As many of you know, the Ndebele praise name for Bulawayo City is Kontuthuziyathungqa – loosely translated as the Factory City. Bulawayo is also widely known as the City of Kings and Queens.


It is forward looking and results oriented companies like Dunlop that have enabled Bulawayo to establish itself as the manufacturing hub of Zimbabwe. I acknowledge and thank the Management and employees who over the years have built this company into the great brand that is has become.

Since 1959, before most of you were born, Dunlop has proved its staying power by managing to remain operational when most companies succumbed to economic pressure. In the said period, Zimbabwe went through the Nationalistic 60s, followed by the Liberation war days of the 70s. Between 1980 and mid 1990s, Zimbabwe enjoyed economic prosperity. However from 1996 until recently Zimbabwe went through a difficult political and economic phase.

This period was characterised by political and economic instability. As far as the economy was concerned there were numerous shortages, e.g. forex, fuel, skills and goods in general. Various elections during this period added to this political instability. Virtually all the economic sectors in Zimbabwe registered negative growth rates. The country’s image abroad suffered greatly as isolation gathered momentum.

The economic mal-performance was made worse by a Price Control system that further made business unviable as hyperinflation took root in the economy.

However in spite of all these problems Dunlop remained committed to Zimbabwe in general and to the motoring public in particular. I am advised that Dunlop went into toll manufacturing with South Africa and Zambia as a survival strategy.

At this stage I need to pay special tribute to Apollo Tyres of India for showing confidence in Zimbabwe at a time when most foreign investors were shunning the country. Not only did they buy equity in the business they also advanced financial support to the local Dunlop company to enable it to sell tyres in the region. They also supplied the expertise and raw materials to allow Dunlop Zimbabwe to continue operating when most companies were closing.

Today with us is the Apollo representative Luis Ceneviz who is also the Dunlop Chairman. I welcome you to Zimbabwe and ask you to help us spread the good things we are doing here to your business associates overseas.

The launch of the Inclusive Government this year has brought with it a positive change in the country. Dunlop together with other companies has seen an improvement in the business climate.

Shortages of fuel, forex, goods, etc, are no more. Price Control has been abolished. The Inclusive Government is working on improving our country’s risk profile so that we can attract foreign direct investment and balance of payment supports. This will assist banks improve lending conditions to the business sector and so improve your working capital position. Government wants to see Dunlop and other businesses increase capacity utilisation and employment and this was clearly articulated in the STERP Document and will also be included in the Medium Term Economic Plan.

We want to see our people coming back from the diaspora to assist in rebuilding this wonderful nation. The Minister of Finance is projecting a 6% GDP growth rate next year, which can only be possible if companies like Dunlop start to do well.



Zimbabwe needs companies like Dunlop because they produce good quality tyres, which are safe, compared to some dubious cheap imports, which are risky. This was confirmed by my brief factory tour conducted before I came to this room. All credit goes to the maintenance team.
In addition Dunlop is a good corporate citizen through its honesty in paying all taxes and in being a good employer. I understand that although most companies are failing to pay salaries Dunlop’s salary account is up to date.

I urge companies to reconcile employees’ expectations of increased salaries with the company’s ability to pay. We don’t want to kill the goose that lays the golden egg.

The question is: What further measures will government take to continue improving the business climate? The Minister of Finance has publicly stated that the forthcoming December budget will contain measures designed to transform the economy into a growth phase. In addition, government will tighten its revenue collection efforts as far as smuggled products including tyres are concerned.

We are aware that some tyres on the local market are evading paying duty and ZIMRA is being urged to identify the culprits and deal with them. By creating a business friendly environment my government will add further impetus to economic growth and thereby improve our people’s living standards.

Having said this it now gives me great pleasure to declare the Dunlop 50th Annivesary celebrations officially launched. I hope Dunlop will enjoy 50 more and beyond years in Zimbabwe. It will be my honour to unveil the plaque at reception. I thank you.