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Wednesday, 26 April 2023

A World Heritage Designation Can Be a Blessing, or a Curse

 To the north up the Kenyan coast is Lamu Town, its small streets humming with the sounds of chisels and hammers crafting Swahili doors, and donkeys carrying heavy loads of coral limestone. Locals and tourists jockey for space in the zigzagging alleys, with shops selling everything from silver jewelry to body products made with locally grown baobab.


Down the coast, in neighboring Tanzania, is Stone Town of Zanzibar, with its bustling fish market, where hauls of octopus and snapper come in daily from dhow boats, and countless Polish, English, Italian and Mandarin-speaking travelers shuffle through on tours that also take them to a memorial near the site of the city’s former slave market.

And between the two sits Old Town Mombasa and at its eastern tip, Fort Jesus, an imposing 16th-century structure built by the Portuguese, its multiple openings offering glorious views of the Indian Ocean, and gentle breezes that help stave off the coastal heat. But while these streets are busy, too, here in Old Town Mombasa, it’s mostly locals, unlike in the other two locales, where throngs of tourists flood the streets.

Lamu Old Town, Stone Town of Zanzibar and Fort Jesus are all UNESCO World Heritage sites, with Old Town Mombasa serving as a buffer zone, but Mombasa, unlike Lamu and Stone Town, is more of a stopover point en route to the Swahili Coast, an expanse of shoreline stretching from Somalia to Mozambique. So, any expectations locals might have had, of tourism arising from Fort Jesus becoming a World Heritage site, have not been met.

“We could be as good as Zanzibar, as good as Lamu for tourism,” said Peter Tolle, a local historian who guides tours in French, English and German. “Locals don’t want to talk about being a World Heritage site anymore and they feel shortchanged. Our houses are shabby, we have the money, but we cannot fix them.”

“We are trapped by their rules but there are no funds,” he continued, referring to UNESCO regulations around the changes that can and cannot be made at and near World Heritage sites.

Lamu Town, Stone Town and Fort Jesus exemplify the critiques that experts working in preservation and tourism level at UNESCO’s World Heritage List — a list of landmarks or natural areas that have been designated by the multilateral organization as having historical, scientific or cultural significance. These places include Machu Picchu, the historic center of Florence and the Taj Mahal.

They contend that being on the list can be a poisoned chalice, of either overtourism or undertourism. On one side, there is, as Mr. Tolle suggested, an expectation that being added to the list will somehow be a game changer for the community, bringing in money not only from UNESCO but also from tourism-focused investments and infrastructure projects. But Mike Robinson, professor of cultural heritage at Nottingham Trent University in England, noted in an interview that, in reality “there is no money and it has to rely on donors.”

In addition, the international agency has been blamed for what the Italian journalist Marco D’Eramo deemed UNESCOcide, when he wrote that being added to the list is a “kiss of death” and that it “all too often cures the disease by killing the patient”; that is, in acknowledging that a site is worth protecting, UNESCO can, itself, drive unsustainable levels of tourism.

Florence, Italy, where the Art for Tomorrow conference is taking place this week, became a World Heritage site in 1982, and it has long suffered from overtourism. It was estimated that in 2019, 15 million tourists — 20 times Florence’s population of 708,000 — visited the city that is home to the Uffizi Galleries and the Duomo di Firenze.

Aptly, the subject of UNESCO sites will be explored at the conference. The annual event was founded by The New York Times, and is now convened by the Democracy & Culture Foundation, with panels moderated by Times journalists.

That conversation will contribute to the debate over the heritage list, around what the benefits of being on it are, if in some places, the tourism the designation brings ruins a locale’s charm, while in other cases, inclusion on the list brings unrealistic hopes for greater change.

A History of Preservation

The idea for the UNESCO World Heritage list, which now has 1,157 sites, grew out of a project to rescue the monuments of Nubia, which include Abu Simbel, the site of two temples carved into a sandstone cliff in the Nubian Valley in Egypt in the 13th century B.C. In the 1950s, local engineers planned to build a dam along a portion of the Nile River to control flooding and generate electricity.

However, the dam would have flooded the valley and submerged hundreds of ancient monuments, so the Egyptian and Sudanese governments turned to UNESCO for help. The resulting project, during which Abu Simbel was moved, in pieces, up to a higher altitude, helped spark the 1972 Convention Concerning the Protection of the World Cultural and Natural Heritage, which set up the heritage list.


Interestingly, tourism was mentioned only once in the document that arose from that convention, in relation to the threat it could pose to sites. “But, of course, we didn’t have the scope of international tourism then,” said Professor Robinson, who has done consulting for UNESCO on sustainable tourism, and who recognizes that tourism — in itself — doesn’t always have to be detrimental. “Time has moved on, we need to update that to say tourism is not just a threat, but it’s also a valuable opportunity.”

It is difficult to assess the direct economic impacts of becoming a World Heritage site. For example, Dubrovnik, Croatia, is on the list, but the city’s tourist invasion is very likely also related to the its role as a filming location for “Game of Thrones.”

However, a 2015 report by the United Kingdom National Commission for UNESCO discovered that Scottish UNESCO projects generated an estimated 10.8 million British pounds (or $13.4 million) from 2014 to 2015 through their connection with the heritage list.

That has meant that a number of countries, often in the developing world, want to get their sites on the list. Professor Robinson said that was partly because state parties “see it as a way of boosting tourism” and so “the motivation has shifted from site protection to site valorization.”

UNESCO Looks Ahead

There have been critiques that a change in who sits on the World Heritage Committee — a group of representatives from 21 countries who have final say over which sites are added to the list — has led to the list’s being politicized.

“You do get places moving forward for inscription that the advisory bodies have recommended not go forward because the care isn’t adequately in place,” said Susan MacDonald, head of buildings and sites at the Getty Conservation Institute. “When those places go on the list, when they clearly haven’t got the right systems and policies and processes in place, there’s always a problem.”

She added, however, that almost 50 percent of the heritage sites were in Europe and North America, so there was a feeling that the list needed to be more representative.

UNESCO suggests that representatives to the World Heritage Committee be experts in preservation and conservation, but leaves the ultimate selection up to the countries themselves. “So, you started to get this shift from a completely expert body to one that was sort of a mixture,” Ms. MacDonald said. “And when that happens, you get lobbying.”

What often is not well articulated to local communities is that when sites — which include both cultural sites, like the Vietnamese town of Hoi An, and natural sites, like Yellowstone National Park — go on the list, it is the obligation of local and national governments of those countries to take care of everything from maintaining and marketing the site to controlling the number of tourists who visit.

“Once a site is inscribed, it is first the responsibility of the government of the country where the site is located to put in place all measures to protect the site,” said Lazare Eloundou Assomo, the director of the UNESCO World Heritage Center, which maintains the list.

So, while UNESCO does help countries develop sustainable tourism practices and give advice, inclusion on the list doesn’t automatically mean solutions in terms of conservation or community development and investment.

“When you get something inscribed on the World Heritage List, it is not that the UNESCO police suddenly start coming in,” joked Joseph King, senior director at the office of the director general at the International Center for the Study of the Preservation and Restoration of Cultural Property, who in the 1980s and ’90s was a consultant for UNESCO. “You’d be surprised at how many people actually think that is the case like, ‘Why isn’t UNESCO stopping this from happening?’”

People like Mr. Tolle, the tour guide in Mombasa, find the whole process complicated and bureaucratic, and often misunderstand what becoming a site will mean for their communities. “They hear about it, and they understand it to be like the goose that laid the golden egg,” said Ms. MacDonald. “That sometimes doesn’t trickle down to them, unless governments have been careful to put in place systems and practices that empower local communities in the management of the place.”

 

Covid dramatized that point in places like Ethiopia’s lower Omo Valley, a region inscribed to the list in 1980. Before 2020, and the onset of the pandemic and the war in the north of the country, tiny remote villages like Dildi would get around 15 tourists a day, and the villages became dependent on the extra cash. But now, according to local Mursi chief Baradi Birabi, the visitors have all but dried up.

“With the money from tourists we could buy medicine for our people or our cattle,” he said, as one of the villagers tried to sell a clay lip plate to a lone Israeli tourist. “But now we have to sell the cattle, so we do hope tourists will come back.”

That’s a problem UNESCO is trying to work on, including a visitor flow management tool that will be extended to all sites by 2029, Peter DeBrine, who works on UNESCO’s sustainable tourism program, wrote in an email.

“Tourism can bring economic benefits to local communities and raise awareness about the importance of heritage preservation, but it can also have negative impacts on sites, such as overcrowding, societal changes, damage to fragile ecosystems and degradation of cultural monuments,” he added. “This is why UNESCO has strengthened its responses and tools in this area, and that it is committed to the development of sustainable tourism.”

Source: A World Heritage Designation Can Be a Blessing,or a Curse (New York Times, 25th April 2023)

Saturday, 22 April 2023

Masuwe Special Economic Zone project implementation on course

 The implementation of the Masuwe Special Economic Zone is progressing well, with various infrastructure projects expected to kick-off before the end of the year.

Last month, Cabinet approved implementation of the Masuwe Special Economic Zone project (MSEZP) after a feasibility study endorsed the profitability of the plan.

The Special Economic Zone will comprise amenities such as a four-star hotel with a 5 000-seater conference facility, medical tourism facilities, a golf estate and a shopping mall.

Government outlines the timelines of the project.

Minister of Environment, Climate, Tourism and Hospitality Industry Honourable Mangaliso Ndhlovu stated, “The next steps that follow are town planning and cadastral surveys that have to be done. Zimbabwe National Geo-Spatial Agency whom we are in talks with to be able to most of the services.”

“Our idea is that we should be able to open that area’s infrastructure investment towards the last quarter of the year. Certainly, by the end of the year if we have serious investors we would want to see them on the ground,” he said.

The development has been met with excitement in the resort city where boundless opportunities lie ahead.

City of Victoria Falls, Ward One Councillor Tonderai Mutasa noted, “The economy of the City of Victoria Falls will certainly improve and the city’s GDP will also go up as a result of this improvement which is coming at Masuwe.”

“The issue of employment is something to take note of because it is going to create employment as many people will get employed on that side of the city.”

“This development will also enhance tourism, I have seen that there will be sporting activities happening on that side, meaning sport tourism will also go up. So this project is indeed something to look forward to.”

The project will be implemented within two years in two separate phases at an estimated cost of 205 million United States dollars.

Phase One entails construction of bulk water supply systems for the project and development of internal water, sanitation, roads and storm water drains at an estimated total cost of 120 million United States dollars.

Phase Two will witness the development of the remaining 930 hectares at approximately 85 million United States dollars.

Source: Masuwe Special Economic Zone project implementation on course (20th April 2024)

Thursday, 20 April 2023

Masuwe Special Economic Zone civil works to start end of year

 GOVERNMENT has said civil works on the Masuwe Special Economic Zone project in Victoria Falls will begin before the end of the year.

Last month, Cabinet approved the implementation of the Masuwe Special Economic Zone project following a feasibility study that found the scheme to be highly profitable.

Old Mutual carried out the feasibility study.

The Cabinet approval paves way for implementation of the project as the feasibility study has proven that the project is viable.

To set the ball rolling, Environment, Climate, Tourism and Hospitality Industry Minister Nqobizitha Mangaliso Ndlovu followed up by meeting the board and management of Mosi-oa-Tunya Development Company to discuss the implementation matrix.

Mosi-oa-Tunya Development Company (Pvt) Ltd, is a State Enterprise which was set up as an investment vehicle for the Government in the development of tourism in Victoria Falls.

It owns 274,1 hectares of prime land in Masuwe Estate, which is a significant complement of the Victoria Falls Special Economic Zone, about 10km out of the current city centre.

Speaking at Press briefing soon after listing of African Sun Limited on the Victoria Falls Stock Exchange last Friday, Minister Ndlovu said much time had been wasted seeking services of a consultant.

However, the consultant is now in place hence work can begin.

“We had our feasibility study which was done by Old Mutual and the next step that follows involves mainly town planning and cadastre surveys.

“I was worried about time taken and we needed to get our timelines corrected hence now we have a Government entity called Zimbabwe National Geo Spartial Agency equipped to do most of the work and we are in talks with it to provide services,” said Minister Ndlovu.

He said with the feasibility study at hand, it was now time to open the area to investors
Government has over the years been courting investors to develop Masuwe which is set to become a modern city with state-of-the-art facilities.

Masuwe will have a multi-million dollar five-star hotel, and a 5 000-seater conference and exhibition centre, medical facilities, a golf estate and a shopping mall.

Government wants to make the tourism destination of Victoria Falls its conference capital, and this dovetails with the Meetings, Incentives, Conferences and Exhibition drive.

“We should be able to open that area for infrastructure investment towards the end of the last quarter of the year and so by the end of the year we want to see investors on the ground,” said Minister Ndlovu.

He said Government was open to private sector partnership and investment and will continue pushing the Zimbabwe is open for Business mantra.

The Mosi-oa-Tunya Development Company nine-member board chaired by Mrs Shiela Sidambe was appointed in 2021 and was given the mandate to deliver infrastructure development in Victoria Falls by expediting feasibility studies for bulk infrastructure and appropriate diligence to register the company’s presence with a solid brick and mortar project.

The Government expects that the company delivers on its mandate to grow the tourism product base in Victoria Falls and this is a must deliverable in the lifespan of the National Development Strategy (NDS1) (2021 to 2025).

The Masuwe area was declared a Special Economic Zone in order to ensure that the project raises funds for self-financing.

A Masterplan will be developed in order to guide implementation of the project. 

Source: Masuwe Special Economic Zone civil works to start end of year (19/04/2023)

Friday, 7 April 2023

Zanu PF-linked gold baron loses land tussle

 RULING Zanu PF party-linked gold baron Pedzisai “Scott” Sakupwanya has lost a spirited attempt to evict a leading tour operator from prime land in the resort town of Victoria Falls, after the local council this week voted down his controversial bid.

If the gold baron’s proposal had sailed through, it would have resulted in the eviction of giant tour operator Wild Horizons from the land, to which it holds the rights until 2029.

The award-winning tour operator — known for its exciting sunset cruises on the Zambezi River — has operated from the area for three decades, having become one of the country’s most recognised tourism industry players.

In February, Wild Horizons walked away with two important industry trophies at the inaugural Twalumba National Tourism Awards, which were organised by the Zimbabwe Tourism Authority.

The Zimbabwe Independent understands that BetterBrands, a firm controlled by Sakupwanya, had planned to construct a US$50 million luxury hotel after the eviction of Wild Horizons.

It is not clear how much Sakupwanya had offered for the land.

But land prices in Zimbabwe’s prime resort city have rocketed since it was declared an international financial centre about a decade ago. In December 2020, it was also granted city status.

Sakupwanya, a flamboyant dealer who frequently courts public rebuke for flaunting bullion and wads of United States dollars on social media, has risen to become one of the country’s biggest gold market players.

He was allegedly unprocedurally given exclusive rights to the land, which is quoted in Victoria Falls council minutes as stand number 1392A.

Victoria Falls City Council did not flight a public notice to dispose of the commercial stand when moves to allocate it to the Zanu PF politician were made as required at law.

The Zimbabwe Independent can report that following a full council meeting this week, Victoria Falls town clerk Ronnie Dube was instructed to advise Wild Horizons that its lease would not be cancelled.

The council’s Health, Housing and Community Services committee chairperson Nkanyiso Sibindi told the Independent that councillors unanimously agreed to uphold the lease of Wild Horizons — which employs over 1 000 staff in the resort town.

“Regarding stand 1392A, which is under lease by Wild Horizons, we agreed as a committee chaired by the mayor that the town clerk should revoke the letter he wrote to Wild Horizons on December 30, giving Wild Horizons three months to vacate,” Sibindi told the Independent.

“He should revoke that letter and give them a new letter stating that they will be there until their lease expires. It also means they also have the right of first refusal to buy that piece of land if council decides to sell.”

A councillor who spoke to the Independent on condition of anonymity said the decision was unanimous.

“Council resolved that the town clerk writes a letter to withdraw the letter of relocation that was served to Wild Horizons on December 30. The decision was based on the understanding that the town clerk was not authorised by council to evict Wild Horizons. The essence of that resolution is that BetterBrands Jewellery’s application to buy that same commercial property is no longer valid. BetterBrands Jewellery has been advised that if they are still interested in building a hotel and wellness centre, they should look for another stand,” the source said.

On December 30 last year, Dube unilaterally directed Wild Horizons to vacate the land.

He said council had decided to repurpose the area.

His move subsequently triggered a fierce dispute between the local authority and Wild Horizons, which stood its ground.

Wild Horizons argued that it had the right of first refusal on any sell of the land, according to documents seen by the Independent.

In February, Victoria Falls City Council mayor Somvelo Dhlamini told this publication that the local authority was legally bound to respect its contract with Wild Horizons.

Two months ago, Dhlamini told the Independent that Dube had “acted unilaterally because he should have written the letter after council had met”.

“This is so because council has the final say,” Dhlamini said.

This week, Dhlamini did not respond to questions sent to him on WhatsApp seeking understanding on the impact of council’s resolution over stand number 1392A.

Questions posed to the Dube had also not been responded to at the time of going to print.

His mobile phone was not being answered.

The Independent wanted to understand whether Dube had written to Wild Horizons informing the tour operator that its contract with the city was still in force.

This publication also wanted to understand if the local authority had formally informed BetterBrands that its application had been turned down.

Wild Horizons chief executive officer Gary Archer also turned down a request for comment.

At the time of going to print, BetterBrands had not indicated how it plans to respond to the council decision.

Sakupwanya did not respond to questions on whether BetterBrands would seek an alternative piece of land.

This is not the first time that Dube has been accused of acting unilaterally in important matters relating to public assets.

Last year, he was accused by council of single-handedly giving Jackelberry Investments the green light to buy Chinotimba Brewery, which is owned by the local authority.

In another dispute relating to the disposal of Victoria Falls City Council assets, which is before the courts, the local authority is being sued by various stakeholders for granting permits to Adage Success Private Limited and Scanner Investments Private Limited to set up commercial interests at the heart of the Victoria Falls rain forest.

The property in question sits on over nine hectares and is believed to be worth millions of United States dollars. Wild Horizons operates a lucrative boat landing business known on the site.

Source: Zanu PF-linked gold baron loses land tussle (06/04/23)

See also:

Victoria Falls Bits and Blogs (6th February 2023) Victoria Falls City Council in ultimatum tiff with Wild Horizons.

Victoria Falls Bits and Blogs (24th March 2023) How a ‘Gold Mafia’ is looting Southern Africa, washing dirty cash.

Victoria Falls Bits and Blogs (6th April 2023) Zanu PF-linked gold baron loses land tussle.

Victoria Falls Bits and Blogs (30th April 2023) Mnangagwa ally suffers another Victoria Falls blow.

Victoria Falls Bits and Blogs (16th May 2023) FIU unfreezes accounts of ‘Gold Mafia’ suspects.

Saturday, 1 April 2023

Victoria Falls US$5 car park opens

MOTORISTS, tourism players included, will from tomorrow, 1 April, start paying US$5 per vehicle per day to use the car park next to the entrance of the Victoria Falls Rainforest after the National Railways of Zimbabwe (NRZ) who own the land, leased the property.

NRZ leased out idle land including the existing car park in Victoria Falls for development into eco-tourism properties and businesses.

This will be the first car park to have pre-paid parking system in Victoria Falls.

The car park is currently used largely by tourism players’ transfer vehicles and buses carrying tourists to the Rainforest and Victoria Falls Bridge, and hundreds of curio and souvenirs vendors, and dance groups also operate within the premises.

NRZ owns significant amounts of land in and around Victoria Falls City and has leased some to hotels, tour operators, property developers and individuals who have ventured into various kinds of businesses.

One of the leases is Across Zimbabwe Private Limited, an indigenous company formed in 2016 with interests in the lower tourism value chain where it is working with curio vendors.

The company was offered a five-year lease to operate the pre-paid car park and a nearby recreational park.

Responding to questions, NRZ spokesperson Mr Andrew Kunambura said the leases are valid for five years.

He could not be drawn into revealing other beneficiaries, but the Chronicle understands two big tour operators and a property developer have been offered land near the gorges.

“As railways the thrust is to grow the real estates’ portfolio and in this regard we have been leasing out land that has been lying idle for a long time. We have seen people applying to lease land and as a result they are developing it into eco-tourism and some are developing tourism tents for their clients,” he said.

He said the leases being issued are five year leases renewable subject to the lessee paying diligently on the agreed rental among other conditions.

Victoria Falls was designated a Special Economic Zone and Government wants to make the city its conference capital with state-of-the-art facilities and products and activities that meet international best tourism standards to make Victoria Falls a destination of choice.

Cabinet recently approved the implementation of the Masuwe Special Economic Zone project following a feasibility study that found the scheme to be highly profitable.

Masuwe is a piece of land 10km outside Victoria Falls city and is earmarked for development into a new satellite city for the Victoria Falls.

“Across Zimbabwe is one of our clients who have applied for land and wants to do eco-tourism at the park. They also want to preserve the park and keep it as natural as possible,” said Mr Kunambura.

In an interview, Across Zimbabwe Pvt Ltd director Mr Mathew Muleya said vendors will not be evicted from the car park.

He said the company’s objective is to empower citizens with income generating projects.

“We have been leased the Victoria Falls Rainforest car park by NRZ and from April 1, 2023 the car park will be a pre-paid parking zone charged US$5 per vehicle for the whole day,” said Mr Muleya.

“People will not be evicted. This is a business and if we remove those operating there how will we make money and how will the people benefit. It’s only in Victoria Falls where we don’t have pre-paid parking and we are just introducing a concept that is inevitable.”

He said part of the money that will be generated from the car park will be ploughed into pristine Victoria Falls activities and community programmes such as taking care of the elderly at the Old People’s Home.

Mr Mulaye said Across Zimbabwe has also started sprucing up the image of the premises which will see new shops being built for convenience of tourists.

He said Across Zimbabwe aims to promote youths and the elderly in the city of Victoria Falls through employment creation.

“That land should benefit ordinary citizens and we look forward to create space for youths at the car park where they can sell their wares. We have 120 curio vendors operating under Across Zimbabwe at the Big Tree where we are working on repairing the shade and we are also engaging the Victoria Falls City Council to allocate alternative land to vendors that operate illegally at Comesa Market as it is our aim to protect their interests.

Mr Muleya said Across Zimbabwe also supports vendors operating at Truck Stop and has helped the local authority clear illegal vendors form the streets.

He said efforts are being made to engage tour operators on implementation of the pre-paid parking systems.

Employers Association for the Tourism and Safari Operators president Mr Clement Mukwasi said the industry is not opposed to the pre-paid parking system as long as there is clarity on operational issues.

He said tour operating companies would be comfortable with paying over a certain period of time such as quarterly or half yearly.

Source: Victoria Falls US$5 car park opens (31/3/23)

See Also:

Victoria Falls Bits and Blogs (17th June 2022) Vendors find home at Vic Falls’ Big Tree curio market.


Sunday, 26 March 2023

Old Mutual gets Vic Falls

FINALLY, Al Jazeera aired the first of the four-part series documentary Gold Mafia. Social media went into overdrive, with many people condemning the attitude and character of some of those implicated.

However, the gold mafia is only but one of those things happening as privatisation of public land is also on the increase.

The frightening thing about the gold mafia is how its activities are abetted by the State in the name of sanctions busting.

Secondly, the big players in gold smuggling or money-laundering are Anglo-Saxons or Indians.

Indigenous players do not have the international exposure and connections with the humongous amounts of money needed.

Uebert Angel, the Zimbabwe ambassador-at-large to Europe and Americas, at some point in the documentary admitted that he and his syndicate had never washed US$1,2 billion because most of their deals rarely topped US$300 million.

This is a big boys’ league and the players show it. Flying first or business class on the Fly Emirates everyday pushing gold is no joke.

In the meantime, let us get back to the continued privatisation of land under the Emmerson Mnangagwa administration.

The ink has not dried on the US$60 billion new Mount Hampden City that is being privately developed and will be run by a company for 15 years.

In Cabinet briefing number 2 of 2023, government was clear that the new city plan will be replicated.

Less than a month later, we are now aware that another private city is being developed in Victoria Falls as a joint venture between financial behemoth Old Mutual and the government of Zimbabwe.

The Zimbabwean government in 2013 created the Mosi-oa-Tunya Development Company for the hosting of the United Nations World Tourism Organisation conference.

The company’s mandate has since been broadened to spearhead the development of the Masuwe Special Economic Zone on a 1 200-hectare (ha) piece of land.

In a post-Cabinet statement, government said: “In August 2020, Cabinet broadened the mandate of the company to cover tourism infrastructure development in Victoria Falls. The company subsequently entered into a joint venture partnership with Old Mutual Life Assurance Company for financing a feasibility study for the development of backbone infrastructure for the Masuwe Special Economic Zone, measuring 1 200 hectares.”

Old Mutual has lots of properties in all urban areas. It has shopping malls and high rise buildings across the country.

However, the Victoria Falls gig will become one of the biggest single investments in Zimbabwe and more importantly creating an offshore financial hub.

In the signed agreements, Old Mutual will develop the project in two phases. The first phase entails construction of bulk water supply systems for the entire Masuwe and development of internal water, sanitation, roads and storm water drains at an estimated total cost of US$120 million.

Phase 2 of the project will witness the development of the remaining 930ha at an expected cost of US$85 million. The project is expected to be complete in 24 months.

It is easy to understand why Old Mutual jumped at the project. The project is a simple money spinner and will churn out good profits.

Cabinet said: “The feasibility study appraisal indicated that the development project is viable, with an acceptable profit margin of US$57 696 447, which is 15,5% and 18,2% of gross development value and development cost, respectively.”

The financial group will have a free pass to construct a four-star hotel with a 5 000-seater conference facility, medical tourism facilities, a golf estate and a shopping mall on land which government will allocate. The project will also use green energy in the form of solar.

Government has further sweetened the deal by declaring Masuwe a special economic zone. This means it is exempt from many of the labour and tax laws that affect any other investor operating in Zimbabwe.

It should be restated that since Mthuli Ncube became Finance minister, he has been working hard to make Victoria Falls an offshore location or a tax haven like Monaco and Jersey Islands.

This will make it a playground for the rich and famous who want to make super profits, pay the least in taxation and easily transfer their money to other destinations without cumbersome paperwork: The exact conditions that capital wants to feed its insatiable appetite without regard for the communities surrounding them.

The modus operandi of developing the New City in Harare is being replicated in Victoria Falls.

Cabinet says the status of a special economic zone would ensure that the project raises funds for self-financing. This will be another city run by a private company with zero accountability to anyone.

On a serious note, Zimbabwe is speeding into the territory of charter cities.

As a means to contain a fallout with citizens, Cabinet said the government will have “a shareholding on every portion of the land earmarked for development projects in Victoria Falls”.

The fact remains that the plan is opaque and has not been subjected to scrutiny by citizens’ representatives in Parliament. The tax incentives for the special economic zone should be debated and passed by Parliament. It should not be merely an Executive decision.

I cannot help but conclude by paraphrasing Naomi Klein in her book, The Shock Doctrine: The Rise of Disaster Capitalism.

Klein compellingly argues that in times of disaster when people are shocked, capitalists and governments introduce a crude dosage of capitalism.

In the last three years post the COVID-19 outbreak, Zimbabwe has privatised health, education and now even cities, while the people are still in shock.

Parliament should for once have a spine and scrutinise these deals where public land is being put into private hands for development of charter cities in an arbitrary manner.

The deals should be tabled in Parliament for debate, nothing short. Otherwise, we will wake up back in 1890 with a new version of the British South Africa Company running Zimbabwe.

Source: Old Mutual gets Vic Falls (25/03/2023)

See Also:

Victoria Falls Bits and Blogs (15th September 2019) Old Mutual to construct ‘massive’ hotel in Vic Falls.

Victoria Falls Bits and Blogs (2nd June 2021) Old Mutual, Govt strike Vic Falls land deal for new hotel project.

Victoria Falls Bits and Blogs (24th March 2023a) How a ‘Gold Mafia’ is looting Southern Africa, washing dirty cash.

Victoria Falls Bits and Blogs (24th March 2023b) Govt okays Victoria Falls SEZ.


 


Friday, 24 March 2023

Govt okays Victoria Falls’ SEZ

THE Government has okayed the development of the Masuwe Special Economic Zone in the resort city of Victoria Falls by the Mosi-oa-Tunya Development Company, which is expected to accelerate project implementation and promote tourism development in the greater Victoria Falls area.

Cabinet on Tuesday received and noted the update report on the Mosi-oa-Tunya Development Company Feasibility Study on the Development of the Masuwe Special Economic Zone the Minister of Environment, Climate, Tourism and Hospitality Industry, Honourable Nqobizitha Ndlovu.

Mosi-oa-Tunya Development Company (MOTDC) is a special-purpose vehicle that was mandated to spearhead the construction of a conference facility that hosted the United Nations World Tourism Organisation General Assembly in 2013.

In August 2020, Cabinet broadened the mandate of the company to cover tourism infrastructure development in Victoria Falls.

“The company subsequently entered into a Joint Venture Partnership with Old Mutual Life Assurance Company for financing a Feasibility Study for the development of backbone infrastructure for the Masuwe Special Economic Zone, measuring 1 200 hectares. The feasibility study appraisal indicated that the development project is viable, with an acceptable profit margin of US$57 696 447.00 which is 15.5 percent and 18.2 percent of gross development value and development cost, respectively,” reads the latest Cabinet report.

The project implementation shall be rolled out in two phases.

“Phase One entails construction of bulk water supply systems for the entire Masuwe Special Economic Zone and development of internal water, sanitation, roads and storm water drains at an estimated total cost of US$120 million. Phase Two will witness the development of the remaining 930 hectares at approximately US$85 million. The overall estimated project implementation period is 24 months,” read the report.

Cabinet was also informed that Old Mutual Life Assurance Company will construct a four-star hotel with a 5 000-seater conference facility; medical tourism facilities; a golf estate and a shopping mall on land which Government will allocate. The project will comply with all relevant environmental statutes, including the use of solar to provide clean energy.

The Masuwe area has been declared a Special Economic Zone in order to ensure that the project raises funds for self-financing. A Master Plan will be developed in order to guide the implementation of the project. The Government will maintain a shareholding on every portion of the land earmarked for development projects in Victoria Falls.

@NyembeziMu

Source: Govt okays Victoria Falls’ SEZ (22/03/23)

See Also:

Victoria Falls Bits and Blogs (15th September 2019) Old Mutual to construct ‘massive’ hotel in Vic Falls.

Victoria Falls Bits and Blogs (2nd June 2021) Old Mutual, Govt strike Vic Falls land deal for new hotel project.

Victoria Falls Bits and Blogs (26th March 2023) Old Mutual gets Vic Falls.