Econ 101 for Mugabe's Finance Minister

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TREASURY FOR ED BARBER AND C WILKINSON
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E. O. 12958: N/A
TAGS: ECON EINV ETRD ZI
SUBJECT: Econ 101 for Mugabe's Finance Minister


1. (SBU) We have learned of an exchange between Finance
Minister Herbert Murerwa and Dairiboard CEO Anthony
Mandiwanza. 14 CEOs had recently called on Murerwa to
plead for an end to the GOZ's convoluted macroeconomic
policies. The Finance Minister began the session by
apologizing that his office was unable to purchase milk
for the tea and coffee on the table. Dairiboard's
Mandiwanza, who also heads the Confederation of
Industries, seized the moment and suggested that milkless
beverages should be the meeting's first topic. He
explained that firms he represents pay farmers
Z$120/liter for milk. On average, each liter carries an
additional Z$200 of overhead by the time it reaches the
retail market. "That's why, Mr. Minister," he concluded,
"your staff can't get a liter of milk at the controlled
price of Z$80."


2. (U) Comment: It's not rocket science.

Sullivan