Friday, 30 July 2021

Whose Gold? Cementing Oligarchy in Zimbabwe.

 By Takura Zhangazha*

The government of Zimbabwe has decided to privatize its gold refinery, Fidelity Printers and Refineries.  In a report carried by NewZwire it turns out the parastatal is now going to be majority (60%) owned by at least ten unnamed gold mining companies that paid a total of $US49 million to the Zimbabwean government.

For many a Zimbabwean this may be a run of the mill business transaction.  Or they wouldn’t even bother with any follow up questions on either the necessity let alone accountability of this specific development.  Let alone its far reaching impact on not only gold mining but also the broader political economy of the country. 

What has however been in the public domain about gold has been stories and allegations of gold smuggling.  Even most astoundingly at our own international airports.  So the narrative is one of cartels and shady operations about gold.  Including the more tragic ones concerning gold-panners and so called ‘illegal miners’ commonly referred to as ‘makorokoza’. With the latter always being in the media for either violent incidents or tragic deaths in collapsed disused mine shafts. 

What gets lost in translation is the fact that the mineral that is gold is a key component of our national wealth.  Initially by way of historical symbolism.  It is recognized on our national flag and it is also recognized as having been key to not only the establishment of our revered ancient civilisations but also what racist colonial settler capitalists initially envied and sought to conquer us for.  So the given national assumption via historical consciousness is that we, as Zimbabweans, own our gold.  It represents a key component of our national wealth and therefore must be utilized for the general public good and not the aggrandizement of individuals let alone corporate profiteering. 

That the government can, with relative ease,  privatize not only its mining but now its actual refining and end process global marketing should give us pause to reflect on a number of issues.

With the initial emerging question being, “To whom does our gold now belong?”  Given recent developments it now evidently belongs to a select private sector.  With probable links to our ruling political elites in one form or the other.  With an assumption, probably from state officials, that there shall be some trickle down benefit to the masses with the passage of time.  And we have been here before as a country via what was then the Economic Structural Adjustment Programmes (ESAPs) of the late 1980s through to the year 2000.  Large scale privatization of the national wealth meant the loss of jobs due to following the arbitrary dictates of a global market.  All of which came to undermine our national social well being while protecting global capital’s interests. 

The second element that emerges with this new move by the government is where and when it is juxtaposed against the whole idea of the Fast Track Land Reform Programme (FTLRP) of 2000 going forward.  

So assuming we took the land from our previous oppressors for revolutionary ownership purposes, how do we then privatize a key mineral asset such as gold?   It comes from underneath the very soil we claim to have fought for but our government is of the view that it cannot be nationalized for the public good? Never mind the fact that we were accusing former white commercial farmers of illegal gold and diamond mining during the FTLRP.  And even now we are compensating them at competitive global market prices for the same land we popularly argue we reclaimed.  It is as contradictory as it is an incremental reversal and sacrifice of nationalist ideological causes at the altar of neoliberalism.

In the third instance, the privatization of gold does not appear to have a bigger plan that the people of Zimbabwe can appreciate as impacting any improvement in their everyday lives.   Sure enough Mnangagwa’s government has embarked on infrastructural rehabilitation projects. But in the majority of the examples that can be given for these projects it is in order to enable what he has referred to as the ‘ease of doing business.’  There is limited room to doubt the priority of private capital’s interests with this government.  Whereas in Venezuela or Bolivia major mineral extraction plans focused on large scale national welfarist programmes, despite global capital’s hostilities and sanctions, it was evident that the national wealth was to be spent on the majority poor in those countries.  Here in Zimbabwe we appear to be keen on assuming that if we satisfy private capital, we satisfy the people.  This has been historically proven to be a false assumption and one that can only lead to a  result which I outline as a final point in this write up.

Lastly, when political elites find common ground with owners of local and global private capital, it is a recipe for the establishment of national oligarchies. It is as American a model as it can be Chinese.  In the former they create revolving doors between business/private capital and politics.  In the latter they expand a one party state into a global corporation that resists challenges to its overall hegemony.  We are probably in the early stages of either of the same in Zimbabwe.  That’s is a combination or alliance of the political and corporate/private capital elite in order to establish a permanency to their new found potential hegemony.  Hence the latest scramble after the scramble for the control of gold production and profits.  We would still however, as Zimbabweans, need to answer this question, "Whose gold is it anyway?"  

*Takura Zhangazha writes here in his personal capacity (takura-zhangazha.blogspot.com)

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