26th December 2023
Hello Herman,
I am starting this while waiting for guests to arrive for lunch – my wife is an inveterate entertainer so needs little excuse to get friends around and of course today is a holiday so that’s what we are doing. Not sure when I’ll get to finish…
It’s an el Niño year so rainfall has been erratic so far; a heavy fall in October and then nothing for six weeks so crops are not looking great for those who don’t have irrigation available. There is a lot of fuss and bother in the various weather groups on various social media platforms whenever rain is forecast and then much soul searching when it doesn’t happen. People forget that forecasting is far more accurate than a few years back, even in this part of the world, and that hey, we get droughts in southern Africa! We have had 3 good years in succession and are due a drought, so all is normal in that respect.
I guess I could be cynical and say that the incompetence and corruption that we see all around us are also just about normal for this part of the world too. The road to my work is being resurfaced as we speak, and we are delighted but I fear there is an ulterior motive. The President has an interest in a housing development out beyond my business, and I think that is a prime motivation. Just by chance it goes past a big rubbish tip project that one of his sons has taken over. It looks like it’s being run properly, now we just need to get the city council to collect our garbage on a regular basis. Roads elsewhere in the city are in a dismal state and it’s not uncommon for local communities to take up the challenge and fill in the potholes on their own initiative.
I have just read in an article in The Economist that Indonesia built 300,000km of roads in the last 10 years. It is of course a vast country, bigger than the USA, but there’s an example here that our government could follow.
Zimbabwe is still in the bizarre situation of having two currencies: our own dollar and the US dollar. The local dollar is treated with contempt by all except the government who have just brought out a proposed budget with LOTS of zeros involved (the street rate for conversion is around 7,000 local dollars to the US dollar – officially it’s 6,000). Various members of parliament refused to vote for the budget to pass unless, amongst other demands, they got new 4×4 Toyota Landcruisers so that they could get over bad roads to visit their constituents. Nobody pointed out that the roads were such a mess in the first place due to the inefficiency and corruption. Fortunately, there were other bad ideas in the proposed budget that were also ditched – an annual tax on houses over a value of US$100,000 being one of them. Who was going to do the valuation was never revealed and quite how they were going to get around bribing the evaluators was not discussed either.
My business plods along. It pays the bills and that’s about all. We are charging less than we were in 2014 largely due to the proliferation of small seedling nurseries around town whose quality is dismal and who almost certainly don’t pay tax and cut a lot of other corners, but we cannot compete with their prices. I suspect a lot of people either don’t know what a quality seedling is or don’t care. Our core customers are commercial farmers and I think most of them do appreciate our commitment to quality – well that’s what one told me last week!
Of greater concern is a building project encompassing two neighboring farms in the form of a giant wall. The farms have been “acquired” by Grace Mugabe, wife of the late president, and word is she wants to have a 700-house project built on the enclosed 400ha. The wall is quite something (it has been nicknamed The Great Wall of Pomona after the area) – it’s not visible from space but is from 5,000m altitude on Google Earth. It is 3m high, has a reinforced concrete core and a course of bricks on the outside and inside. I asked a constructor what it might cost, and he suggested US$300-400 per metre. Given that the whole structure is 9km long that’s at least $27 million! The enclosed area is a rough rectangle but the property on which my business is located is a triangle jutting into the northeast corner. The big question is: what will they do when they get to the triangle, will they go around (an extra 500m), or will the wall cut the triangle off? Grace Mugabe is close to the President so wields disproportionate power and probably could just take the property if she felt like it. Perhaps she will force my landlady to sell the property, so she gets the title deeds? We will find out within the next 3 months or so when the wall will get to our boundary.
Despite the poor performance of the Zimbabwe economy the building sector is booming. Likely it’s due to money laundering. Al Jazeera TV did a documentary series (“Gold Mafia” in 4 parts) on this and explained that gold was being exported illegally, mainly to Dubai, by politically well-connected fat cats who were then bringing the cash back with the tacit approval of the President who is taking a 15% cut. The money is then invested in construction projects. Indeed, the suburbs are thick with construction projects of various descriptions – apartments, shopping centres, restaurants – which are often approved without the consent of residents. One of my cousins is in a street which is fighting the proposed construction of a Chinese restaurant. The Chinese are our friends so it’s almost a given that they will get permission.
We are cursed in this country with a wealth of minerals, especially gold. It’s just about everywhere you care to dig. My brother came out from the UK in October and as part of our travels we took a trip through the village where my mother lived after my father’s death. It was established as a gold mining area at the end of the 19th century. The commercial scale miners have long since moved on but the small-scale miners are everywhere and the place is a rubbish tip. One can only but wonder about the mercury pollution and mining safety. Health and safety are not concepts they care about.
The countryside is still largely beautiful. We got invited to an old school friend’s safari camp on the Zambezi River in Mana Pools National Park. I guess it’s about 200km downstream of Kariba Dam. While the game was not as plentiful as it usually is at that time of year due to unseasonal rains, we still had a great time in a beautiful part of the country. Drifting down the Zambezi in canoes at sunset was memorable – crocs and hippos notwithstanding!

Earlier this year I had a bit of an “episode” early one morning. I can’t remember much about it but thought I should go to my doctor about it. She thought it was probably just what is known as Transient General Amnesia (TGA) but given my age thought it worth a spate of tests just in case it was something else. I had mentioned it to some friends of roughly my age and they both said they’d experienced it. Indeed, after much prodding, imaging and blood taking that conclusion was reached. The physician at the final consultation was impressed with the state of my health, structural issues notwithstanding, and commented; “Well, whatever kills you in the end it won’t be your heart!”. I wasn’t sure if that was good news or not – I am of the age now that how I “go” has become a subject of some importance and going quickly is the preferred option.
The degeneration of the structural issues necessitated a lower spine operation in April. It was deemed successful by the surgeon, but it necessitated 3 weeks of bed rest which have had a lasting effect on my mobility. The general anaesthetic also had a lasting effect in the form of POCD (post-operative cognitive dysfunction) which also causes episodes – a sense of disconnecting with the world which the physician said would eventually pass.
It’s New Year’s Eve now and fortunately it has stopped raining! Such is the erratic nature of the climate we find our selves in. The experts tell us it’s all symptomatic of climate change i.e. it’s becoming more extreme though I’d hesitate to attribute a few days of exceptional weather to that just yet.
So, what can we expect from the New Year? You have and election coming up, the Olympic Games are in Paris, the war will continue in Ukraine – the cynical French expression plus ca change, plus c’est la meme chose does come to mind!
Hope ’24 is a good year for you…
Andy











Taxed if you do, taxed if you don’t
26 08 2023It had to be a mistake, I couldn’t possibly owe the tax department (ZIMRA – Zimbabwe Revenue Authority) that amount. Even if I converted it to US dollars it would amount to an impossible figure – about 17,500 at the unofficial rate and 23,000 at the bank rate. I checked the email address – it was from a person with whom I’ve corresponded over the years. Then there was the wording; FINAL DEMAND. Where were the other demands? I did what any sensible person would have done and contacted my bookkeeper in a state of panic.
Alison was more than a bit puzzled but told me she couldn’t do anything without seeing how they’d got the figures. “Your are entitled to see what’s going on” she said. “Ask them for the ledger”
The ledger was duly sent and the waters immediately became a lot murkier. It stated the figures were in US dollars and the numbers, if the currency was US dollars, were impossible. I sent it on to Alison. It was a while before she came back to me by which time my imagination had run riot. What if I really did owe 105 million dollars? I would have to buy it on the open market with my US dollars and would be left with no operating capital and nothing with which to pay wages. The company would be unlikely to survive.
Alison assured me that the figures on the ledger were Zimbabwe dollars and I probably did owe the 3,835,807 listed. She had no idea where the 105 million came from. “Ask them” she said. So I did.
The reply was abrupt; the 105 million was to be ignored (RTGS is another way of saying Zimbabwe dollars). The amount on the ledger was also incorrect as it didn’t account for some US$550 that I’d paid in presumptive tax (they are called Quarterly Payment Due or just QPD) which would have reduced the amount owed close to zero.
I speculated to Marianne that it was all just a bit of psychological bullying to get me to pay attention to the outstanding amount, then two days ago I bumped into Gary whose wife had had a strikingly similar experience.
Gary works for a seed company that occasionally uses my nursery to grow seedlings for various trials. They have a trial on ART Farm which is a neighbour to my nursery and I sometimes use it access my nursery so as to avoid the appalling direct road and take in a bit of soothing farm scenery on the way. Gary was having a look at one of their trials near the road so I stopped to chat.
We discussed various things then I related my experience with the tax authority. He said that Clare, his wife who works as a bookkeeper for a local church, had received a final letter of demand for payment from ZIMRA for an impossible amount about three months ago. She replied that as a church they were not liable for tax and any money made was given away to various charities and nothing more was heard. He agreed with me that as the government was desperate for money it was likely endorsing ZIMRA’s intimidation tactics to get in whatever money they could, maybe they were even giving a commission.
On getting to work I related the story to my senior foremen. They were decidedly cynical. “They are all on the take” opined Chingedzerai. “Yes”, added Fabian, “they see the rest of the government officials stealing and think that they should have some of the pie too. They see what they can bully you into paying and then split the extra between themselves”. It was obvious that they thought I was being naïve.
Marianne had been doing some questioning of her own and posted my problem on the local community WhatsApp group. Someone had responded with a name and phone number of a senior official at ZIMRA whom he thought would be able to help. I gave him a call and related my problem and asked if it was official ZIMRA policy to send out threatening demands based on nothing much at all. His indifference was striking; I should send him a copy of all the correspondence and documents and he’d forward it to the relevant manager. I duly sent him the copies but I am not expecting a reply.
It’s no secret that Zimbabwe is in deep financial trouble. Mismanagement, corruption and incompetence have seen our GDP plunge after the Mnangagwa government took power in a coup back in 2017.
At the time it was welcomed by the majority of the population who were relieved to be rid of the much hated and feared Mugabe regime but it was not long before the new government of E D Mnangagwa revealed its true colours of repression and corruption. Chingedzerai reminded me that the current administration has never bothered to investigate the estimated US$15 billion worth of diamonds that went unaccounted for from the Chiadzwa diamond fields in the east of the country in the latter part of the Mugabe era. More recently there was the gold smuggling exposé by al Jazeera that showed how top Zimbabwean officials were, with the highest approval, smuggling gold out of Zimbabwe and laundering the resulting cash. Indeed, for a country that is struggling financially, there is an eye-opening amount of property development around town. In the past this would have attracted the attention of ZIMRA who would have demanded to see the accounts of owners of expensive properties and made to account for the development. Now it’s easier, and more personally profitable, to send out threatening letters.
I paid wages on Tuesday. We chose the date years ago when getting cash from the bank at the end of the month meant enduring long queues and not getting the desired breakdown. Chingedzerai had heard the income tax limits had been increased and asked me to check on the internet before he entered the attendance and overtime figures on the computer. I was fairly sure it was only the Zimbabwe dollar tables that had changed but checked on the US dollar tables anyway (I have been paying my staff in the latter currency since August last year).
In Zimbabwe salaries are taxed monthly and the system is known by its acronym PAYE; Pay As You Earn. The rates are iniquitous. Wages are taxed from US$100 per month upwards! Given that the minimum agricultural wage starts at US$60 before any of the required allowances, most of my staff are taxed. Some do get age exemptions but the rest of them have to endure.
Such is the government’s demand for money that it has taken to taxing money transfers at 2% per transfer. It goes without saying that most transactions are cash though it’s not always possible. The government used to tax cash withdrawals from banks but gave up when it became evident that people were simply not depositing cash in order to avoid paying the tax.
Given the high cost of living and taxation in Zimbabwe one would assume that the majority of the population would be keen for a change of government. Indeed, given that we had a general and presidential election on Wednesday, one could be forgiven for thinking it imminent. With the recent exception of Zambia, southern African is not known for changing its governments and Zimbabwe is not about to become an exception too.
My foremen and I were all in agreement on this; the incumbent ZANU-PF party, which has maintained its grip on power since 1980 by means mostly foul, will certainly cheat its way to victory; only the level of the fiddle is not known. So far it’s been “limited” to delaying delivering voting papers to polling stations in regions known to be opposition strongholds, sending voters to polling stations where they found they weren’t registered, making sure one couldn’t check the online registration database and of course blatant intimidation. Few, if any, believe the logistical problems to be anything but deliberate. We remain cynical.
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Tags: corruption, general election, tax, ZIMRA
Categories : Blogroll, Economics, Social commentary