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### Viewing cable 03HARARE2024, NEW UTETE LAND AUDIT REPORT OFFERS LITTLE

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03HARARE2024 | 2003-10-07 10:17 | 2011-08-24 16:30 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Harare

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 06 HARARE 002024

    SIPDIS

    SENSITIVE

    NSC FOR SENIOR AFRICA DIRECTOR J. FRAZER
    LONDON FOR C. GURNEY
    PARIS FOR C. NEARY
    NAIROBI FOR T. PFLAUMER
    PRETORIA FOR SREYNOLDS

    E.O. 12958: N/A
    TAGS: ECON EAGR PGOV ZI
    SUBJECT: NEW UTETE LAND AUDIT REPORT OFFERS LITTLE

    ¶1. (SBU)  Summary:  The Utete commission report on anomalies
    in the land resettlement program, widely anticipated as an
    indicator of how the GOZ will address the chaotic situation
    in the agricultural sector, is a non-event.  Despite
    stringent attempts to keep this document secret, Post
    recently obtained a copy, which may indicate that the
    "leaked" report will soon be widely distributed.  While some
    rumors had indicated that the Utete report would be
    "explosive" if actually implemented, a careful reading
    discovers nothing new.  The report acknowledges that some
    problems regarding multiple farm ownership by beneficiaries,
    political inconsistency in the allocation of land, and lack
    of funding for input schemes for new farmers must be
    resolved.  Further, the report concedes that resolution of
    those pesky outstanding legal details (such as inconsistent
    application of procedures, discrepancies between the law and
    the constitution, and the issue of title) must be addressed.
    However, this report is nowhere near as explosive as the
    permanently unpublished Buka report, which "named names" of
    the political beneficiaries (including a number of ministers)
    who had manipulated the system by seizing multiple prime
    farms -- lock, livestock, and standing crops.  This report,
    by contrast, whines plaintively about "the activities of
    certain persons," "certain prominent persons," and even "some
    Governors... themselves" who are possibly guilty of engaging
    in "political interference" in the allocation process.  This
    latest commission report continues to blame drought, outside
    political interference, and ephemeral Western sanctions for
    the agricultural mess which Zimbabwe must now address.  End
    summary.

    --------------------------
    "New and Improved" Numbers
    --------------------------

    ¶2. (SBU)  Despite continued claims in the GOZ-controlled
    press that 300,000 families have been settled under the A1
    (communal land decongestion) model, and 54,000 families have
    been settled under the A2 (de-segregation of communal
    farming) model, the numbers reported by the Utete commission
    are considerably lower.  The Utete report states that only
    127,192 families have been settled on 4,321,080 hectares
    under the A1 model (representing a 97% "uptake" rate), and
    7,260 beneficiaries have been settled on 2,198,814 hectares
    under the A2 model (average of 66% "uptake").  These numbers
    should be balanced against an estimated 300,000 displaced
    commercial farm worker families.  At any rate, the new,
    realistic, downward-revised numbers are one of the few
    indications of credibility in the entire report.

    ¶3. (SBU)  Other signs of credibility include suggestions for:
    the Grain Marketing Board's monopoly on grain purchases and
    sales to be partially de-controlled; renewed efforts to
    create a single farmers' union; new efforts to create private
    sector partnerships with agro-businesses; efforts to develop
    an Agricultural Development Bank to fund farmers at all
    levels; and efforts to increase skills among the new farmers.
     However, in a theme which runs throughout this report, there
    is no advice as to how to implement even the most
    self-evident strategies.  One of the most significant
    recommendations is that the GOZ should reinvent the wheel and
    once again split the Ministry of Land, Agriculture and Rural
    Resettlement into two bodies:  the Ministry of Agriculture
    and a proposed Ministry of Land Affairs.  However, there is
    little hope that a series of small, isolated actions
    (unsupported by massive infusions of foreign exchange) can
    turn the land resettlement program, as it currently stands,
    into a success.

    -----------------------------------------
    White Commercial Farmers Remain A Factor?
    -----------------------------------------

    ¶4. (SBU)  One of the more interesting elements of this report
    is the "documented" number of white commercial farmers
    remaining in the agricultural sector.  Despite continuous and
    ongoing listing of farms for acquisition (the latest lists of
    81 farms were "gazetted" on October 3, 2003), the report
    presents a picture of some 1,377 farms remaining in white
    hands.  The report cites this as "about 3% of land in the
    country, excluding land held by corporate entities."  The
    Commercial Farmers Union (CFU) and Justice for Agriculture
    (JAG) concede that there are still a number of white farmers
    on the land, but both claim that many of these farmers are
    merely holding out until the last possible moment.  Some of
    these commercial farmers are still in operation, and some are
    attempting to farm after voluntary sub-division of their
    property, but some are cultivating only a fraction of their
    land, while others are simply occupying their homestead
    despite ongoing attempts (both legal and extra-legal) to
    evict them.  These two farmers' groups agree that only about
    600 former commercial farmers are still fully in possession
    of their land.  In fact, even the Utete report is a bit
    ambiguous on the status of its claim, stating that "The
    presence or otherwise of these farmers on the land could not
    in all cases be verified at the time of the compilation of
    this Report," which raises the question of what other basis
    could be used for such a figure.

    ----------------------------
    One Man, One Farm -- Sort Of
    ----------------------------

    ¶5. (SBU)  The biggest surprise, after the brutal frankness of
    the Buka report (produced by a commission headed by
    Government minister Flora Buka), was the bland tone taken by
    the Utete commission on the issue of multiple farm ownership
    by new beneficiaries.  Whereas the Buka report listed
    numerous ministers who had acquired two, three, or even more
    prime pieces of commercial farm property through the
    resettlement program, the Utete report barely acknowledges
    this.  Instead, the Utete report repeatedly claims that the
    decongestion of the rural areas has been compromised by A1
    settlers who receive a new A1 plot without returning their
    original communal plot.  This is undoubtedly true; the
    infrastructure, including availability of schools, clinics,
    roads, and water, in the newly resettled A1 areas is grossly
    inadequate.  Many A1 settlers have moved to their new plots
    while leaving wives and school-going children on their old
    communal holding.  In addition, many A1 settlers have been
    "relocated" from one acquired farm to another as new
    claimants or errors in allocations have emerged, convincing
    many to retain their communal entitlement as a backup.  The
    report calls for enforcement of the one man, one farm
    concept, which is cast not as a policy, but rather as a
    "guideline"  for sharing a scarce resource between the
    numerous land-hungry peasant farmers.  Any hope that this
    report would compel the worst A2 offenders to relinquish part
    of their spoils is apparently futile.

    ¶6. (SBU)  The report states, however, that "Any beneficiary
    of the land resettlement program whether on A1 or A2 models
    with more than one piece of land is expected to surrender
    excess land."  It goes on to claim that a total of 24,562
    hectares, which will be re-allocated to A1 settlers, have
    actually been recovered.  The commission suggests that "one
    family, one farm" might be a better way to address the
    situation, but even so it cites the difficulties of enforcing
    compliance.  For instance, the report addresses the
    complications inherent in polygamous marriages and marriages
    where both spouses are ex-combatants, and where the wives
    would therefore want to maintain "ownership" in their own
    right.  In its typically noncommittal fashion, the report
    continues that "Government has still to firmly pronounce
    itself on this matter."

    ¶7. (SBU)  Many of the former commercial farmers have used
    this "one man, one farm" mantra to justify their own legal
    challenges to compulsory acquisition.  The report, however,
    states that "In the case of a single owned farm being
    acquired due to its being contiguous to a communal area,
    Government undertook to provide the affected farmer with
    another elsewhere around the country."  Currently, neither of
    the farmers organizations are aware of any white commercial
    farmer receiving such an offer.  In fairness, it is unlikely
    that many commercial farmers would accept this offer, since
    it implies that any beneficiary would have to voluntarily
    relinquish claim and title to the first farm.

    ------------------------------------
    Land Subdivisions -- or Lack Thereof
    ------------------------------------

    ¶8. (SBU)  The report offers a fascinating glimpse into the
    power struggles which must have consumed all players in this
    process.  Provincial governors complain that they have been
    ignored, and cite for support the situation regarding
    voluntary subdivision of white commercial farms.  Apparently,
    some provincial governors (such as Governor Msipa of the
    Midlands province) were fairly assertive about negotiating
    farm reductions with some of their larger landowners.  Many
    landowners actually signed over either a second farm, or a
    portion of their single farm, via a GOZ-generated LA3 form.
    Many others complained that they were never given the
    opportunity to reduce their holdings.  Most farmers who did
    voluntarily yield part of their land did so under the belief
    that they would then be allowed to stay on their reduced
    landholding, and in their own home.

    ¶9. (SBU)  However, the Ministry of Land did not formalize any
    of the voluntary reductions, and in fact has allegedly said
    that it would not do so, as it had not participated in the
    process.  In the meantime, many farmers who had submitted to
    the authority of the land resettlement program found
    themselves evicted, either through a continuation of the
    legal process or by gangs of war vets.  In typical fashion,
    the report advised that "a conclusive position be taken on
    the allocation of land subdivisions to which the LA3 forms
    were designed to apply," without advising what position would
    be most beneficial.  A response from the GOZ, incorporated
    into the report, states that an exercise to settle this issue
    would include interviewing farmers still interested in
    pursuing farming, after which the Land Acquisition Act will
    be amended.  Under these amendments, "Affected farmers will
    be given offer letters and allocated either parts of their
    original farms or given alternative land elsewhere in the
    country."

    -----------------------------
    Legal Issues, Including Title
    -----------------------------

    ¶10. (SBU)  This report acknowledges the legal morass
    surrounding the land resettlement exercise.  Many former
    commercial farmers have built legal cases by demonstrating
    that their land did not fit into any of the categories
    identified for compulsory acquisition -- derelict land,
    underutilized land, land under multiple ownership,
    foreign-owned land, or land adjoining  communal areas.
    Others have cited their exemption under one of the published
    categories -- church-owned land, agro-industrial or
    plantation land, land protected by a Bilateral Investment
    Promotion and Protection Agreements, land designated as a
    Export Processing Zone, or projects approved by the Zimbabwe
    Investment Center.  The report attempts to bypass these
    original criteria by stating that these were never
    "policies," but merely guidelines ("neither a legal
    requirement nor conclusive criteria") to help the Land
    Identification Committees to prioritize land for acquisition.

    ¶11. (SBU) In addition to admitting errors in processing
    acquisitions and allocating plots, the Commission concedes
    that the entire process is not quite constitutional.  "Above
    all, there was a major contradiction observed as between the
    1992 Land Acquisition Act as amended, which provides for the
    compulsory acquisition of land, and the provision embedded in
    the Constitution which requires that such acquisition be
    confirmed by the Administrative Court.  This contradiction
    ought to be removed (last sentence bold and italic in
    original)."

    ¶12. (SBU)  The issue of title to the newly acquired land
    continues to present difficulties for the GOZ.  The report
    recognizes that leases or "other forms of legal title" are
    necessary to allow A2 farmers to finance commercial
    agriculture.  However, the Commission seems to sidestep the
    issue of competing claims by existing title deed holders, and
    recommends long-term (and possibly inheritable) leases
    several times in the lengthy document.  In fact, the report
    states several times that A2 beneficiaries should only be
    leased land on a complete cost-recovery basis, and suggests
    passing the complete burden of compensation onto the new
    farmers.  The report calls several times for comprehensive
    assessment of all improvements, including houses, barns,
    irrigation systems, and moveable equipment, so that a proper
    lease price can be determined.  Regarding A1 beneficiaries,
    the report states that "the issue of tenure is still under
    consideration, although indications are that the tenure
    system is likely to be similar to the one obtaining for
    communal areas (e.g., no bankable title)."

    ¶13. (SBU)  The unspoken conflict is that the GOZ seems
    determined to maintain control of the allocations in a manner
    which would make title -- even a transferable lease --
    useless.  At various points throughout the report, the
    Commission emphasizes the need for both A1 and A2 farmers to
    submit to the GOZ's need to control agricultural planning,
    and its right to assess and confirm productivity.  At the
    same time, the report concedes that investment in property
    will only flourish where the landowner has the security of
    knowing that he (or his financier) will reap the benefits of
    his investment.  While the GOZ is understandably concerned
    with food security, any system of title or lease which allows
    the holder to be dispossessed based on the whims of a
    government functionary defeats the purpose.

    -------------------------------------
    Former Farm Workers Blamed, Dismissed
    -------------------------------------

    ¶14. (SBU)  The lack of attention to this vulnerable group is
    startling.  The report claims, several times throughout the
    text, that the former farm workers fall into one of three
    groups:  some farm workers were given A1 plots; some have
    found employment with the new farmers; and some returned to
    their rural homes or "opted to ... return to their country of
    origin" (despite the fact that many are third- or
    fourth-generation Zimbabwe-born).  The report advises that
    most in this third category  remain in their former
    compounds, a festering problem waiting for GOZ action.  In
    several instances, the report blames much of the lawlessness
    (illegal squatting, illegal gold panning, crop theft,
    vandalism, poaching, misuse of farm equipment, and "general
    criminal activities") on the farm workers.  In several
    others, the report states that "they were reportedly
    unwilling to work for the newly resettled farmers, preferring
    to be engaged in gold panning activities which they
    considered to be more lucrative.  Whilst unwilling to take up
    employment, they remained a burden to the new farmers in
    terms of water and electricity usage..."  It must be noted
    that according to GAPWUZ (the union previously representing
    the bulk of commercial farm workers), the "new farmers" were
    in January strenuously fighting an increase in the minimum
    wage from around Zim $5000/month to $7,500/month (an increase
    from US $3.36 to US $5.05 per month).

    ¶15. (SBU)  The total number of the approximately 300,000
    former farm workers who reportedly received some land in the
    program is detailed below.

    Province     Total workers    Total beneficiaries

    Manicaland    90,000 (est.)   1,080
    Mash Central  not provided    "a small number"
    Mash East     not provided    "some"
    Mash West     not provided    "some," but very few
    Masvingo      not provided      128
    Mat North     not provided      225
    Mat South     not provided      361
    Midlands      not provided      377
                          Total   2,171

    -----------------------
    Status of Conservancies
    -----------------------

    ¶16. (SBU)  Many of the wildlife conservancy landowners,
    including several Amcit couples, had hopes that the Utete
    commission would help resolve the ongoing threat to the
    peaceful possession of their property.  Unfortunately,
    nothing in this report offers any respite.  While the report
    decries the "attempt to subdivide these areas into individual
    plots which would clearly be unviable," there is no
    suggestion that land ownership revert to the existing model.
    Rather, the Utete commission recommends "a corporate-type
    model (of ownership) with a component to provide for local
    community participation."  "A2 beneficiaries would be
    allocated shares in and participate in managing the entities
    running the Safari farms, Plantations or Conservancies."

    ¶17. (SBU)  The report also addresses the situation of illegal
    occupiers in Gonarezhou, the national park to be incorporated
    into the Zimbabwe-South Africa-Mozambique Transfrontier Park.
     Although the governor of Masvingo reportedly "settled" the
    families in Gonarezhou, the report states that "Government
    stance on National Parks and Gazetted Forests is that such
    areas should be exempted from acquisitions and resettlement.
    With particular reference to the Gonarezhou National Park,
    the Provincial Governor of Masvingo... is in the process of
    finding alternative land to resettle the families currently
    occupying" the park.

    -------------------------------------------
    Claims of Increased Productivity Misleading
    -------------------------------------------

    ¶18. (SBU)  There are several credible and rational
    assessments included in this report, but few concrete
    suggestions for meaningful action. These are interspersed
    with unexpected claims of high crop production and
    beneficiaries making "full use of the land allocated to
    them."  In one case, the GOZ's own figures belie its previous
    claims.  According to this report, in the 2000 growing
    season, when most commercial farmers were still planting and
    harvesting, commercial farms had 160,577 hectares under
    maize, which produced 680,942 metric tonnes of grain.  In
    that same year, communal farmers had 1,217,115 hectares under
    maize, which produced 808,709 metric tonnes.  While it is
    clear that seven times more communal land than commercial
    land was cultivated for maize, it is not true that the
    communal farmers largely carried the burden of feeding the
    country (a statistic often repeated and seldom supported).
    Elsewhere, the report claims that "Many of those (A1
    beneficiaries) whom the Committee met stated that even
    against the unfavourable weather conditions in the 2002 to
    2003 agricultural season (note:  when rains were delayed, but
    average in amount, end note), they had harvested better
    yields than in the past."  This could be entirely true yet
    completely misleading.  Even when a communal farmer increases
    his yield from .66 tonnes/hectare, he still does not begin to
    reach the commercial productivity of 4.2 tonnes/hectare.

    ¶19. (SBU) In fact, the report claims, "For both old and new
    farmers, but particularly the latter, the prevailing
    macro-economic environment, and in particular the relentless
    capital equipment and input price inflation, represented a
    serious challenge if not a major obstacle to the
    significantly increased production on the land envisaged
    under the Programme."  It is unclear why the GOZ would have
    envisaged such an increase in production by deconstructing a
    highly sophisticated and functional system.

    -------
    COMMENT
    -------

    ¶20. (SBU)  This is a bland and sanitized report.  Given the
    contents, there is little explanation for the GOZ's great
    secrecy.  The tone combines a selective history lesson,
    outdated anticolonial jargon, platitudes,
    blame-apportionment, and self-absolution.  The style is
    filled with passive voice and arms'-length references, as if
    the commission is commenting on remote and distant events.
    The international community was looking to this report as an
    indication of whether the winds of reform are blowing.  Based
    on this report, they are not. The three elements which must
    be addressed in order to "reform" the crisis-ridden
    agricultural sector are developing a viable economic model,
    tackling the issue of compensation, and reining in
    politically-connected A2 abuse.  Not one of these issues has
    been confronted.  The fact that the Buka report, which could
    have formed the basis for reform, has been summarily shelved,
    is telling.

    ¶21. (SBU)  The report raises more questions than it answers.
    Despite claims that wholesale gazetting of new properties is
    over, new lists appear in the GOZ press on a weekly basis.
    Regarding indigenous landowners who bought multiple farms
    before the resettlement program, the report states that "At
    this state, they are, also not targeted for compulsory
    acquisition."  The report hints at a third model of
    resettlement, euphemistically entitled a "Peri-Urban/Green
    Zone Resettlement Scheme," which is being finalized even now.
     Although this is described as a way to "create space for the
    development of peri urban agriculture or green belts around
    urban areas...,"  there are insufficient details as to what
    this will entail.

    ¶22. (SBU)  Although the report takes an obligatory swipe at
    "Western sanctions" which are destabilizing the economy, it
    does concede that national macro-economic instability has
    adversely affected smooth implementation.  That being said,
    it makes no suggestions for repairing the macro-economic
    environment.  The report addresses the problem of bringing
    all farms into compliance with the maximum farm size, but
    offers no recommendations as to how to combine this with its
    proposed farm-size flexibility.  The Executive Summary
    states, "it is also critical that value addition to
    agricultural produce be undertaken as a matter of deliberate
    policy.  For example, there is no plausible reason in the
    country exporting bulky cotton lint instead of weaving it to
    boost the textiles and clothing industry."  The unspoken
    plausible reason is that few independent investors would want
    to brave the perils of the Zimbabwean economy when investing
    in exports from AGOA-eligible countries is so much less risky.

    ¶23. (SBU)  In places, the report does not refrain from utter
    falsehoods -- as in its claims that the GOZ fulfilled, but
    Britain did not honor, their respective commitments under the
    September 2001 Abuja agreements.

    ¶24. (SBU)  The Executive Summary ends with the claim, "There
    can be no alternative to the Programme's success... Neither
    stagnation nor regression can be contemplated."  Therein lies
    this commission's raison d'etre:  justification of a
    fundamentally flawed program, the enormous costs (social,
    political and economic) notwithstanding.
    SULLIVAN

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