Understanding impact of sanctions

08 Oct, 2023 - 00:10 0 Views
Understanding impact of sanctions

The Sunday Mail

Farai Marapira

IN light of recent developments, it is crucial to shed light on the complex issue of sanctions on Zimbabwe and delve deeper into how they have affected ordinary people.

After 22 years of unjustified political coercion, it has become paramount to provide a comprehensive background to these sanctions while emphasising their far-reaching consequences on lives.

The imposition of sanctions on Zimbabwe — primarily initiated by the United States and later joined by other Western countries — dates back to the early 2000s.

These measures were purportedly a response to concerns over so-called human rights violations.

However, they were actually a direct response to the successful Land Reform Programme by the ZANU PF Government, which did not only seek to correct colonial imbalances but also to fulfil the fundamental aspiration of the liberation struggle, in which thousands paid the ultimate price.

For more than two decades, Zimbabwe has been reeling under illegal sanctions, external political persecution and economic suffocation at the behest of the US and the European Union (EU).

The US has imposed numerous sanctions on Zimbabwe.

Some of the notable directives and legislation issued are Executive Order 13288 (2003), which authorised the blocking of property and “prohibited” transactions with certain individuals and public entities in Zimbabwe; the Zimbabwe Democracy and Economic Recovery Act of 2001 (ZDERA), which prohibits US support for multilateral financing to Zimbabwe; and the Zimbabwe Sanctions Regulations (2019), which provide a legal framework for the enforcement of sanctions.

The EU has also imposed sanctions on Zimbabwe, including travel bans and asset freezes on individuals and public entities.

The above-mentioned sanctions imposed on Zimbabwe are by nature illegal as they violate provisions of international law.

Ab initio, the sanctions violate the United Nations Charter, Article 2(4), which prohibits the threat or use of force against the territorial integrity or political independence of any state.

In addition, the sanctions infringe the African Charter on Human and Peoples’ Rights, particularly Article 23, which guarantees the right to participate freely in the government of one’s country.

The International Covenant on Civil and Political Rights Article 25 guarantees the right to take part in the conduct of public affairs, directly or through freely chosen representatives.

Sanctions indirectly affect this right by impeding the normal functioning of a government.

The report by the UN Special Rapporteur, Professor Alena Douhan, concluded that the unilateral coercive measures by the West negatively impact the enjoyment of human rights and mainly affect vulnerable groups such as children, women, the youth, people living with disabilities and the elderly, especially during the prevalence of pandemics such as Covid-19 and the HIV/Aids scourge.

Against the backdrop of Zimbabwe being under three forms of sanctions by the US and its allies — ZDERA, the African Growth and Opportunity Act (AGOA), and Office of Foreign Assets Control (OFAC) — it is imperative for Zimbabweans to know how they are affected by them.

ZDERA blocks access to credit for both Government and the private sector. AGOA impacts Zimbabwe’s access to US markets.

OFAC impacts banking, as it classifies Zimbabwe as a high-risk country.

It has resulted in most Zimbabwean banks losing global correspondent banking connections.

Overall, this affects the ability of Zimbabwe’s financial institutions to access lines of credit.

Limiting access and movement of money in and out of Zimbabwe affects the country’s ability to participate in global trade, which violates the World Trade Organisation’s agreements and correspondent principles of non-discrimination, most-favoured nation and national treatment.

If one closes the market for the innocent tobacco farmer in Hurungwe, it affects hundreds of thousands who could have been employed in the value chain.

So, in essence, if sanctions affect access to US markets, access to credit for local banks and companies, as well as banking relationships for local banks, this ultimately impacts on job creation, growth, opportunities and livelihoods of ordinary Zimbabweans.

Zimbabwean banks have spent millions of dollars in systems to comply with OFAC requirements.

Barclays Bank of Zimbabwe was fined US$2,5 million for processing three transactions for a sanctioned entity.

The bank had to spend in excess of US$12 million to comply with further requirements placed on it by OFAC and the US Treasury.

Today, most banks in Zimbabwe cannot undertake international USD transactions, creating additional costs for banks and increasing the time taken to conclude cross-border transactions.

It is common for cross-border transactions to take over a month to be processed, as overseas banks seek authorisations. Similarly, in 2018, the US fined Standard Chartered Bank US$18 million for violating sanctions relating to Zimbabwe.

 The bank was accused of processing transactions involving individuals and entities under US sanctions.

In 2019, the Reserve Bank of Zimbabwe revealed that it was struggling to access foreign currency from international banks to import essential goods and services.

The sanctions have limited the bank’s ability to maintain international banking relationships and engage in normal cross-border financial transactions, despite being the country’s lender of last resort.

It is impossible to overlook the extensive impact sanctions have had on Zimbabwe’s economy.

They have severely restricted the nation’s ability to cooperate with international financial institutions and impeded both foreign direct investment and economic growth.

This has inevitably led to increased unemployment rates, hyperinflation and affected living standards.

So, the US’ argument that sanctions only affect a few is a lie meant to justify crimes against humanity.

As if sanctioning public entities was not enough, the US unjustifiably extended sanctions to individuals with no Government ties or influence, including Mr Kuda Tagwirei, on the basis of being one of the biggest domestic investors, and Mr Emmerson Mnangagwa Junior on the basis of his relationship to the President.

Zimbabwe — once a breadbasket of Southern Africa — witnessed a significant blow to its agriculture sector in the first 17 years of sanctions.

Restrictions on trade, access to farming inputs and limited funding for the sector resulted in declining productivity.

This, in turn, led to a decline in food production and consequently impacted food availability and affordability for ordinary citizens.

Government had to go the extra mile to bring back the breadbasket status, thanks to the acumen of President Mnangagwa and the Second Republic.

But Government has had to jump over extra hoops to achieve success.

The impact of sanctions on critical sectors like health and education is also often overlooked.

Limited access to financial resources, technology and expertise has hampered the development and improvement of these essential services.

Due to sanctions, Zimbabwe was one of the few countries that failed to get international financial support at the peak of the Covid-19 pandemic, setting the stage for a potential disaster.

Reduced funding for healthcare facilities and educational institutions has had a detrimental effect on the quality of services provided to ordinary people, and this is the legacy of the US and its allies.

Sanctions have affected the most vulnerable in society — the elderly, children and those with chronic illnesses.

While the negative impact of sanctions on ordinary Zimbabweans is undeniable, it is essential to highlight efforts made by Government and international partners to improve people’s lives.

Initiatives aimed at diversifying the economy, strengthening regional partnerships and implementing reforms have been undertaken to minimise the adverse effects and chart a path towards sustainable development.

In this regard, calls by African leaders during the just-ended United Nations General Assembly, coupled with the SADC declaration of October 25 as a day to call for the unconditional removal of sanctions, will go a long way in assisting Zimbabweans to fight this unwarranted war of attrition that compromises international laws, peremptory norms and abrogate fundamental human rights for the ordinary people.

Farai Muroiwa Marapira is the ZANU PF Director of Information and Publicity.

 

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