https://www.facebook.com/share/p/159F45HRWM/ Thursday, 06 February 2025 *Bleeding a Nation Dry: How Zimbabwe's Toxic Mix of Over-Taxation, Corruption, and Elite Greed is Suffocating its People, Exacerbated by the USAID Funding Stoppage* MRP PRESIDENT MRP Joins the Topical Discussion!!! THE WITHDRAWAL OF USAID FUNDING TO AFRICAN COUNTRIES. THE EFFECTS, IMPACTS AND WHAT IT MEANS FOR ZIMBABWE AND ZANUPF. ONE OF THE BIGGEST AREAS IMPACTED BEING THOSE LIVING WITH HIV AND AIDS RELYING ON MEDICATION SUPPORTED THROUGH USAID FUNDING. Mthuli Ncube's recent announcement that Zimbabwe will resort to domestic taxes to raise funds, following the US cut in funding for the World Health Organization, is a stark reminder of the government's reckless handling of the economic situation. Instead of tackling the root causes of the country's economic woes, the government is piling more burdens on already overtaxed citizens. This move is a clear indication that the government has been caught off guard, too busy looting public funds to realize that donor funds would eventually dry up. The suspension of USAID funding has thrown the population into chaos, exposing the government's hypocrisy in attacking NGOs and American aid by day, while secretly begging for American support by night. It's ironic that government leaders often claim that activists are on the payroll and NGOs are on life support, relying on USAID support, when in reality, it's the government itself that's struggling to survive without foreign aid. The US has provided over $5 billion in humanitarian and development assistance to Zimbabwe since its independence, with over $1 billion in the past three years alone. The government's decision to increase domestic taxes will only exacerbate the economic crisis, further impoverishing the already struggling population. It's time for the government to take responsibility for its actions and find sustainable solutions to the country's economic problems, rather than relying on Band-Aid fixes and foreign aid. Zimbabwe's reliance on foreign aid is a stark paradox or a mere absurdity, considering the country's vast mineral resources and national wealth. Despite receiving over $200 million annually from PEPFAR, the government's dependence on American donations and aid from other nations raises eyebrows. Meanwhile, immoral politicians, businessmen, and their Chinese associates clandestinely plunder the country's mineral resources, leaving the nation impoverished. The irony is further exacerbated by high-ranking officials seeking luxurious medical treatment abroad, while the majority of Zimbabweans suffer in decrepit medical institutions lacking basic equipment and drugs. This blatant disregard for the nation's welfare is a testament to the government's misplaced priorities and corruption. Zimbabwe's economic crisis is largely a product of its own making, with staggering sums of money siphoned off through illicit financial flows into secret personal offshore accounts and individual foreign currency stashes, as well as rampant smuggling and corruption. Instead of investing in vital sectors like healthcare, education, and infrastructure, the government has prioritized individual opulence and extravagant spending. Politicized overgenerous donations and lavish parties have become conduits for reckless spending, with public funds being squandered on non-essential items. The country's elite have grown accustomed to living large, while the majority of Zimbabweans struggle to make ends meet. The numbers are staggering: between 2000 and 2020, Zimbabwe lost over $32 billion to illicit financial flows, with an estimated $3 billion lost in 2019 alone. This money could have transformed the country's healthcare system, improved education outcomes, and upgraded infrastructure. However, Zimbabwe's government has consistently failed to harness its own resources, relying instead on foreign aid to mask its inability to govern effectively. The country's dependence on foreign aid has created a cycle of dependency, undermining its economic sovereignty. The government's actions have turned Zimbabwe into a laughing stock, with China becoming the de-facto owner of the country's mines and mineral resources. The money generated from these resources lines the pockets of corrupt government officials and their ZanuPF cronies, rather than benefiting the Zimbabwean people. Furthermore, the government's new tax regime, which includes taxes on sugary drinks and other basic commodities, will only serve to increase the burden on ordinary Zimbabweans. The sugar tax, for instance, has already generated over $8 million, but it's unclear how this revenue will be utilized. It's time for the government to take responsibility for its actions and develop a comprehensive economic plan that prioritizes the needs of the Zimbabwean people. This includes addressing corruption, promoting transparency, and ensuring that the country's resources benefit all citizens, not just a select few. Zimbabwe's taxation system is facing scathing criticism for being regressive, oppressive, and detrimental to the country's economic growth. The system's flaws are likely to be exacerbated by the withdrawal of USAID funding, which could lead to increased tax burdens on citizens. This move would not only worsen the economic plight of Zimbabweans but also perpetuate inequality, as the tax system already disproportionately affects low-income households. The government's reliance on taxation as a primary revenue source is concerning, given the country's struggling economy. With tax rates ranging from 14% to 45% for personal income tax, and 25% for corporate tax, the burden on taxpayers is substantial. Moreover, the tax system's complexity and lack of transparency have created opportunities for corruption and tax evasion, further undermining the country's economic stability. The following are some aspects of the negative taxation regimes currently employed to fund corruption in the country: 1. Multiple Taxes on Basic Commodities The government has introduced various taxes on essential goods and services, such as: - Value Added Tax (VAT) on basic foodstuffs, like bread and maize meal - Sugar tax on sweetened beverages - Fast foods and betting tax - Livestock tax - Tax on airtime and data services - Carbon tax - Tax on fuel, which affects transportation costs and, subsequently, the prices of goods - Other taxes 2. Increased Tax Burden on Low-Income Earners The tax system disproportionately affects low-income earners, who spend a larger portion of their income on basic necessities. This leaves them with little disposable income, exacerbating poverty. 3. Taxation on Informal Sector The government has extended taxation to the informal sector, which accounts for a significant portion of Zimbabwe's economy. This move has been met with resistance, as many informal traders and businesses struggle to comply with the complex tax requirements. The lavish lifestyles of Zimbabwe's elite, including government officials, ZanuPF politicians, and connected individuals, tells a different story about Zimbabwe and is a stark contrast to the country's economic struggles. These "falsely rich" ZanuPF connected individuals, such as the Ginimbis, Chiyangwas, Scot Sakupwanya, Wicknel Chivayo and many others flaunt their wealth through extravagant displays of opulence, leaving many to question the sources of their seemingly unending riches. Their lavish spending and claims of having substantial offshore accounts and resources are particularly irksome, given the country's dire economic situation. It's astonishing that they can afford to live in such extravagance while the majority of Zimbabweans struggle to make ends meet. The Gold Mafia scandal, exposed by Al Jazeera, involved several high-profile individuals and politicians. These are some of the key figures implicated: - Uebert Angel: Zimbabwe's “ambassador-at-large” to Europe and the Americas - Henrietta Rushwaya: President of the Zimbabwe Mining Association and niece of President Emmerson Mnangagwa - Kamlesh Pattni: A businessman accused of pocketing hundreds of millions of dollars through a gold smuggling scheme - Ewan Macmillan: A gold smuggler - Alistair Mathias: Macmillan's business partner - Simon Rudland: One of Zimbabwe's richest men - President Emmerson Mnangagwa's allies and officials Additionally, other individuals mentioned amongst many in the scandal include: - Guvamombe - Wicknell Chivayo - Scott Sakupwanya Their lavish lifestyles and extravagant spending have raised eyebrows, with many questioning the sources of their wealth. Philip Chiyangwa, a prominent ZanuPF politician, has an estimated net worth of $2 billion, which is shrouded in controversy. The disparity between the rich and the poor in Zimbabwe is staggering. While the elite enjoy their lavish lifestyles, the majority of the population struggles with poverty, unemployment, and a lack of access to basic services like healthcare and education. While the Zimbabwean government appears to be indulging in luxuries, allegedly financed by corrupt activities, the nation is left bewildered and concerned. The majority of HIV and AIDS patients face a dire situation, as their lives hang in the balance due to the government's potential failure to provide essential medication. It's imperative that the government takes decisive action to address the pervasive corruption and economic inequality plaguing the nation. The people of Zimbabwe deserve a leadership that prioritizes their well-being over personal gain. The government's inability to provide basic services, such as healthcare, is a stark reminder of the need for accountability and transparency. The fight against corruption should remain a top priority to safeguard public resources and ensure a better future for Zimbabweans. Matabeleland, a region with its own distinct identity, has been inextricably linked to Zimbabwe, much to the detriment of its people. The scars of the Gukurahundi atrocities, perpetrated by the ruthless Fifth Brigade, still linger, with many victims deliberately infected with HIV and other illnesses. These victims have relied heavily on HIV and AIDS treatment funded by USAID projects, but their access to adequate medication is now under threat. The corruption and mismanagement that plague Zimbabwe have had far-reaching consequences for Matabeleland. The region's resources have been exploited, and its people have been marginalized and excluded from decision-making processes. The Mthwakazi people have had enough, and their desire for self-determination and independence is rooted in a desire to escape Zimbabwe's corrupt and tribal rule. As the MRP leadership has emphasized, Matabeleland is not Zimbabwe, and its people will no longer be treated as mere spectators in Zimbabwe's political circus. The call for independence is not about secession, but about restoring the region's autonomy and self-governance, which was lost when Mashonaland and Matabeleland were amalgamated in 1923 without the consent of the local population. The evidence of Zimbabwean corruption is overwhelming, and it's clear that Matabeleland has been dragged down by the same corrupt systems. It's time for the people of Matabeleland to take control of their own destiny and forge a new path, free from the shackles of corruption and mismanagement. The MRP's pursuit of independence is not merely a reaction to Zimbabwe's misrule but a proactive effort to reclaim the Mthwakazi nation's rightful place in the world. It is time for the international community to acknowledge the Mthwakazi people's legitimate claim to self-determination and support their quest for freedom and independence In conclusion, the ruinous state of Zimbabwe's economy and healthcare system is a direct result of the corrupt and inept leadership's barbaric behaviour. The country's ranking of 149th out of 180 countries in Transparency International's Corruption Perceptions Index, with a score of 24 out of 100, is a stark reminder of the pervasive corruption. President Trump's decision to stop USAID funding was a timely move, as it exposed the government's misplaced priorities. Instead of relying on foreign aid, the government should utilize its resources and assets to revitalize the economy and healthcare sector. The people of Mthwakazi, who have suffered greatly under the current regime, deserve better. The MRP's resolve to separate Mthwakazi from Zimbabwe is a testament to their desire for self-determination and national sovereignty. It's time for the Ndebele people to reclaim their rightful place in Zimbabwe's history and society, and to ensure that their rights and interests are respected and protected. The struggle for Mthwakazi national freedom is a quest for dignity, justice, and equality. In Pursuit of Justice and Peace during our Lifetime Sisonke Sibambene SinguMthwakazi Sesikulungisa Prepared and Presented by Mqondisi Moyo, President of Mthwakazi Republic Party