ZANU-PF GOVERNOR FORCING HIMSELF ON AMCIT-OWNED CONSERVANCY

UNCLAS SECTION 01 OF 05 HARARE 000444

SENSITIVE
SIPDIS

AF/S FOR B. WALCH
DRL FOR N. WILETT
ADDIS ABABA FOR USAU
ADDIS ABABA FOR ACSS
NSC FOR SENIOR AFRICA DIRECTOR M. GAVIN
STATE PASS TO USAID FOR L.DOBBINS AND E.LOKEN
STATE PASS TO FISH AND WILDLIFE SERVIE FOR M. GADD

E.O. 12958: N/A
TAGS: ASEC SENV PGOV PHUM PREL KDEM CASC ZI

SUBJECT: ZANU-PF GOVERNOR FORCING HIMSELF ON AMCIT-OWNED CONSERVANCY

REF: 07 Harare 598

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SUMMARY
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1. (SBU) After years of successfully avoiding land invasions,
Zimbabwe's private conservancies now face the threat of forced
"indigenous partnerships" that--if carried out--will likely deter
further investment and derail significant conservation gains. Under
the Wildlife-Based Land Reform Policy--an internally approved policy
not backed by legislation--private conservancy owners will allegedly
have to give up the titles to their land in exchange for a 25-year
lease and must take on "indigenous" partners to own at least 51
percent of the property. Several landowners in the Save Valley
Conservancy (SVC),including one American, have been summoned to the
Masvingo governor's office to meet the new ZANU-PF-affiliated
partners that the governor is attempting to force upon them.
Importantly, the SVC is the largest privately-owned wildlife
conservancy in Africa and home to about one fifth of Zimbabwe's
rhinoceros. Unlike in Zimbabwe's national parks, rhinos have
demonstrated high reproduction rates in the SVC thanks largely to
the Conservancy's vigorous and expensive anti-poaching and
conservation efforts. If these partnerships are forced upon the
landowners, continued investment and vigorous anti-poaching efforts
will likely wane, further endangering both rhinos and investor
confidence in Zimbabwe. END SUMMARY.

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Background: Save Valley Conservancy
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2. (U) The Save Valley Conservancy (SVC) is a privately-owned
wildlife reserve of one million acres in southeastern Zimbabwe, an
area commonly referred to as the Lowveld. The Conservancy comprises
22 properties that share a common boundary fence. In the mid-1980s,
with the end of cattle ranching subsidies and due to continued
outbreaks of foot-and-mouth disease, landowners hired a consultancy
firm to evaluate the economic and environmental feasibility of
converting the cattle ranches back to wildlife. The study confirmed
the shift could be difficult and expensive at first, but in the long
run profitable. During the late 1980s and 1990s, owners pooled
their resources and restocked the conservancy by transporting
elephants, giraffes, black rhinos, white rhinos, and other big game
to the area.


3. (U) When SVC was officially formed in 1991, the 18 original
owners intended to market photographic tourism. As tourism declined
in the past decade, SVC operators began to rely on the more
lucrative hunting market for the majority of their revenue. Most of
the landowners have small lodges where they operate photographic and
hunting safari operations. Working with Zimbabwe's parastatal
Qhunting safari operations. Working with Zimbabwe's parastatal
National Parks and Wildlife Management Authority (Parks),the SVC is
given a quota of animals for hunting in any given year.

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Amcit-Owned HAMMOND Ranch
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4. (SBU) American citizens Weldon and Kathy Schenck purchased one
property, HAMMOND Ranch in 1996, converted it from a cattle ranch

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into a game ranch, restocked indigenous animals, and joined the SVC.
They received approval from the Zimbabwe Investment Center (ZIC)
and met and exceeded all of ZIC's investment and employment
criteria. Their ZIC Permit was recently renewed. The Schencks
built a safari lodge in 1998 and have since been operating
photographic and hunting safaris. Their combined operations at
HAMMOND---including a safari operating and marketing
partner--generate a minimum of US$250,000 annually for Zimbabwe.
They employ over 40 people full time and more part time, and provide
financial and other support to the local communities surrounding
HAMMOND.


5. (SBU) Like other SVC landowners, the Schencks have made an effort
to help the surrounding communities. For example, the Nyangambe
Embroidery Project started by Kathy Schenck in the community
adjacent to HAMMOND to the south provides part time, piece-work jobs
to over 600 women in the Nyangambe Resettlement Area. In addition,
the Schencks are currently funding the development of a unique
wildlife project in which the Nyangambe community has joined the SVC
by devoting 7,500 acres of land to wildlife. The Schencks have
provided the community with fencing, restocking, anti-poaching, and
marketing. The community receives trophy fees, which totaled about
US$5,000 last year in addition to the meat from all animals shot on
their land. This is a first: direct community involvement by a
community in the wildlife industry without inclusion of District
Councils (per Zimbabwe's CAMPFIRE program - Communal Areas
Management Program for Indigenous Resources) and other higher-ups
which often prevent the financial benefits from reaching the
community.

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Land Reform and Indigenization
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6. (U) Because the SVC is conservation land, it has been governed by
legislation under the Parks Authority and the Ministry of
Environment, which has saved it from fast-track land reform that has
redistributed farm land since its inception in 2000. However, under
the Indigenization and Economic Empowerment Act of 2008, all
businesses should seek to have majority indigenous partners
(reftel),which SVC owners do not have.


7. (SBU) Schenck told us that he has been trying to identify local
partners since 2002. Last year, working with the Parks Authority,
the SVC owners established three possible means to bring on local
partners: (1) current owner plus the local community, (2) current
owner plus local investor, (3) current owner plus Parks. All of the
current owners have a strong desire to bring on additional investors
who are committed to wildlife conservation and who understand that
Qwho are committed to wildlife conservation and who understand that
it is a long-term investment with significant up-front costs and a
slow financial return.


8. (SBU) However, last year the Ministry of Environment (which
continues to be led by Minister Francis Nhema) reportedly adopted a
new policy, termed the Wildlife Based Land Reform Policy. (NOTE:
After numerous attempts to obtain the policy from the Ministry and
Parks, a Parks staffer finally sent us a copy of the policy--a 2004
document that is still marked "draft." He was unaware of any other
policy or amendments to this draft document. END NOTE.) One
provision of this draft policy states that when land is acquired by
the State and re-distributed on a leasehold basis, leases should be
between 20 and 99 years. The document further explains that for
land that remains freehold (as in HAMMOND's case) the units should

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be owned by companies in order to facilitate the transfer of
shareholders to new participants. The policy concludes by saying
that new entrepreneurs that wish to take up shareholdings shall be
required to purchase the shares in accordance with the Ministry of
Environment and Tourism (now two ministries, both controlled by
ZANU-PF). These applicants will be selected on the basis of their
ability to purchase equity in the wildlife business, as well as
their knowledge and commitment to the venture. However, a group of
ZANU-PF heavyweights in Masvingo have twisted thi policy--which is
not terribly egregious on paper--and informed the SVC landowners
that they need to take on specific "indigenous partners" and trade
in their title deeds in exchange for a 25 year lease. The new
partners have not offered to purchase any shares or make any
contribution to the conservancy.

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Here's Your Partner
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9. (SBU) On May 13, Masvingo Governor Titus Maluleke summoned SVC
Chairman Clive Stockil and the SVC Vice Chairman to a meeting on May
16 to discuss new partners for the Conservancy. At the meeting,
attendees saw, but were not given, lists of new partners for various
properties within the SVC.


10. (SBU) Several other landowners were summoned to the provincial
administrator's office for a May 22 meeting to meet their new
partners. The Schenck's local manager, George Hulme, was informed
that the new partners for HAMMOND Ranch would be Governor Maluleke
and Lieutenant Colonel David Moyo. In the meeting, the governor
explained to Hulme that the inclusive government had agreed that the
land reform process would not be reversed and said he was carrying
out a policy that could not be reversed. In all, 10 of the 22
properties have been allocated new partners through this program.


11. (SBU) Several ZANU-PF heavyweights either attended one of the
meetings or were listed as prospective partners. (NOTE: Most or all
are affiliated with Emmerson Mnangagwa. END NOTE.) In addition to
Governor Maluleke, those involved include:

-- Minister of Higher and Tertiary Education Stan Mudenge
-- Former Masvingo Governor Josiah Hungwe
-- Director of Conservation in the Parks Authority Vitalis Chadenga.
Chadenga was involved in the uncompensated takeover of another
American-owned conservancy in Midlands province in 2002.
-- Major General Engelbert Rugeje, Chief of Staff to the Zimbabwean
Army. Rugeje was previously reported to us for his involvement in
election-related violence in 2008, particularly for use of the Army
in intimidating and coercing voters.
-- Chiredzi South MP Aaron Baloyi. In 2001, Baloyi and a group of
Q-- Chiredzi South MP Aaron Baloyi. In 2001, Baloyi and a group of
war vets abducted and held a group of game wardens hostage for three
days while they looted a white-owned farm.
-- Former Chipinge South MP Enock Porusingazi. Porusingazi is
notorious for using violence in Chipinge South. He was most
recently involved in bringing a case against the current MP, Mathias
Mlambo, for obstruction of justice in April 2009.
-- Former Gutu South MP and Former Deputy Minister of Youth Shuvai
Mahofa.


12. (SBU) The current landowners plan to use their usual strategy of
not signing anything and avoiding direct confrontation while seeking
diplomatic and other advocacy to stop the attempted forced
partnerships. One particularly vocal German property owner has

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received assurances from Secretary to the Prime Minister Ian Makone
that Minister Nhema has confirmed that no partners will be forced on
operators. According to Makone, Nhema confirmed this arrangement to
Tsvangirai before the May 22 meeting in Masvingo.


13. (SBU) Even if the MDC and ZANU-PF figureheads in Harare have
worked out an arrangement, it appears the ZANU-PF provincial
authorities in Masvingo are carrying on with their mission to impose
themselves on SVC owners. Given that the proposed governor for
Masvingo province, Lucia Matibenga, is from the MDC, it appears the
current governor is trying to push the partnerships along quickly
before Matibenga is sworn in. Tsvangirai has said the new governors
will be sworn in "at the soonest opportunity."

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Rhinos Thrive on Private Land, Face Poachers Elsewhere
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14. (U) In addition to the obvious concerns about these forced
business partnerships, wildlife stands to lose as well. Thanks
largely to the expensive protection and anti-poaching efforts by SVC
landowners, wildlife has thrived in the Conservancy. The rhino
population, in particular, has demonstrated exceptional growth rates
of 8-10 percent annually in the SVC and other privately-owned
conservancies in the Lowveld (normal levels are 2-5 percent).
Currently, over 70 percent of Zimbabwe's remaining rhinos live in
the Lowveld conservancies, and 20 percent live in the SVC alone. In
fact, when we visited the SVC in March, we were fortunate enough to
see two of Zimbabwe's remaining 282 white rhinos.


15. (SBU) Unfortunately, poaching pressure has dramatically
increased in the last three years. According to Raoul du Toit, a
rhino expert with the World Wildlife Fund in Harare, Zimbabwe's
rhino population declined from 846 in 2005 to 805 in 2008. Given
the high rates of reproduction, Zimbabwe's population should have
been about 980 at the end of 2008, leading him to estimate that 175
rhinos were lost to poaching during that three year period.


16. (SBU) Remarkably, of the more than thirty suspected poachers who
have been arrested not one has been convicted, even when they have
confessed or there has been ballistic evidence. For example, in
December, poachers were caught at a roadblock near Masvingo with an
AK-47 rifle and cartridges. The pair admitted to having the gun
illegally. The gun had been seen earlier near a site where a rhino
was shot, and there were marks in the ground where the rifle had
been partially buried near the rhino. However, some evidence was
not presented in trial and they were mysteriously acquitted of
Qnot presented in trial and they were mysteriously acquitted of
possessing an arm of war.


17. (SBU) Poaching has been most predominant in Zimbabwe's national
parks and communal lands where Parks guides lack the resources to
conduct effective anti-poaching patrols. Conservationists fear that
if these partnerships go through, investors will not have the
resources or will to continue funding expensive anti-poaching
efforts. In addition, some believe that ZANU-PF heavyweights in the
police, military, and Parks (e.g. Chadenga) are behind the
corruption that is believed to be behind the lack of poaching
convictions.


18. (SBU) In March 2009, the Secretary General of the Convention on
International Trade in Endangered Species (CITES) contacted
Zimbabwean authorities asking them to prepare an evaluation of
Zimbabwe's rhino population and anti-poaching efforts in advance of

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next year's CITES conference. If rhino poaching continues to
increase and enforcement is lax, Zimbabwe may face consequences at
the CITES conference.

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COMMENT
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19. (SBU) While the inclusive government continues to tout its
success in achieving unity and moving forward with "problem" issues,
we continue to see cases of the old guard acting as if nothing has
changed as they continue with arbitrary arrests, politically
trumped-up charges, and land seizures. The saga in the Save Valley
does not surprise us, but it certainly does disappoint. Ironically,
the Minister of Tourism is hosting a conference in a few weeks on
Tourism Investor Confidence; we hope the Save issue will be raised
as a barrier to investment. Although we can hold out hope that
respect for property rights and rhinos will win the day, we know
better than to expect ZANU-PF to do the right thing. In all
likelihood, the landowners in SVC will face long, drawn out battles
with their new forced partners as they wait for the implementation
of pro-business and pro-conservation policies in Zimbabwe.

MCGEE