As I live and breathe! Who thought we would see the sanctions the country was on lifted? The United States of America removed its sanctions on Zimbabwe, hallelujah. Then the USA began a new sanction regime, wait, what?
To understand what’s going on, let’s go back to Executive Order 13288. Following the terribly planned and executed land reform programme and rampant political violence in Zimbabwe in the early 2000s, the USA, under George W. Bush signed Executive Order 13288 in 2003. It had the following provisions:
- it declared a national emergency and blocked the property of certain individuals and entities in Zimbabwe
- it cited the “unusual and extraordinary threat to the foreign policy of the United States” posed by the actions and policies of certain members of the Zimbabwean government
- its justification was that the Zimbabwean government was engaged in actions and policies that undermined democratic processes and institutions, including violence, intimidation, and repressive legislation
- it authorised the US government to freeze the assets of individuals and entities deemed responsible for undermining democratic processes in Zimbabwe.
This Executive Order was terminated yesterday by the US under Joe Biden.
Biden says he is concerned about human rights abuses and corruption in Zimbabwe – we all are, Joe. However, he believes the national emergency is no longer necessary. Makes sense.
This is great news and some of you owe the Zimbabwean govt an apology. You thought they were lying when they said the country was under sanctions. Right?
That’s where the good news ends. If you were having a good day up to this point, just stop reading right here and it won’t be spoiled.
Sanctions remain
The US is removing the designation of a national emergency regarding Zimbabwe. This doesn’t mean a change in their stance on human rights and other issues that warranted the sanctions.
It merely demonstrates a shift in how they will address them. The US will still use existing sanctions to target individuals involved in corruption and human rights violations. Exactly like Executive Order 13288.
Executive Order 13288 was terminated by Executive Order 14353 and in Shona they say, ‘ngoma ndiyo ndiyo’ loosely translated as ‘more of the same’.
The only things that have changed are that the national emergency designation was lifted and some new individuals and corporations were added to the list of sanctioned persons.
The US will continue to utilise existing sanctions authorities to hold accountable individuals it deems are involved in corruption and human rights abuses in Zimbabwe.
Following the new order, National Security Council Spokesperson Adrienne Watson released a statement which included the following excerpt:
In response to new and continuing corruption and serious human rights abuse, the United States is refocusing and elevating its efforts to hold accountable the individuals and entities that are responsible for this exploitation. Today, the United States is employing a new set of tools in Zimbabwe,…
…Specifically, the Department of the Treasury is designating three entities and eleven individuals, including President Emmerson Mnangagwa, Vice President Constantino Chiwenga, Brigadier General (Retired) Walter Tapfumaneyi, and businessman Kudakwashe Tagwirei…for their involvement in corruption or serious human rights abuse.
…These designations build on recent U.S. Government actions, including pausing U.S. participation in the African Development Bank Dialogue…
Targeted sanctions
The above are textbook targeted sanctions. They are not imposed on the country but rather on certain individuals and entities. In fact, Watson makes it clear,
Sanctions on these individuals and entities do not represent sanctions on Zimbabwe or its public.
This was the case with the terminated Executive Order. It targeted specific individuals whilst the country remained unsanctioned.
That all sounds good but in practice, it doesn’t quite work out like this. Though targeted, the sanctions end up disproportionately affecting the very people under oppression by the Zimbabwean govt.
Yes, these sanctioned individuals may struggle to travel to some countries and their business interests might face some challenges. However, as we know, they are looting the country dry and are living like kings. The same can’t be said for the rest of us.
Strive Masiyiwa has stated that the targeted sanctions have affected his company’s ability to work with Western firms, particularly concerning capital-raising efforts. Many other individuals and businesses not under sanctions have raised similar concerns.
OFAC penalties
Some of this comes from American companies being overly cautious. There are severe penalties to working with a sanctioned person and for a small market like Zimbabwe, not many investors are willing to take on that risk.
Here’s what some OFAC lawyers have to say about the penalties:
Civil penalties of up to $289,000, or twice the amount of underlying transaction, may be imposed against persons who violate Zimbabwe sanctions.
My friend, even in the US, $289,000 is a lot of money. Worse still, the penalty could be as high as twice the amount of the transaction.
A multi-million-dollar deal with a Zimbabwean firm that turns out to have significant shareholding by a sanctioned individual could bankrupt someone.
Do you remember the allegations against the former ICT Minister Mandiwanzira about using shell companies to hide his shareholding and providing preferential treatment to some companies? Western companies have to consider that risk before working with a Zimbabwean individual.
The OFAC lawyers add,
For individuals with business interests in Zimbabwe, it is critical to screen any transactions in the country or with the government for sanctions compliance. Since the penalties for sanctions violations can be severe, individuals should exercise due diligence and ensure their transactions are permissible.
More of the same
So, Executive Order 14353 does not change anything really. We are where we were before it came. It’s just that this is no longer considered an emergency.
So, expect the Zimbabwean govt to use the sanctions as an excuse for all their failings. An activist is assaulted? – but the country is on sanctions. Corruption runs rampant in govt? – those sanctions man.
As they play that game, abusing human rights like it’s a sport, the sanctions will remain.
The US is aware that the sanctions are counterproductive, but they won’t lift them to maintain consistency and avoid appearing weak. You may have noted that the “unusual and extraordinary threat to the foreign policy of the United States” is probably the biggest reason the sanctions remain.
The Zim govt gets its all-important excuse and life goes on. All this could end if the Zim govt just stopped its corruption, intimidation and violence but I’m not holding my breath for that.
What’s your take? Cancel reply