The Zimbabwean president, Robert Mugabe, speaks to aides during the summit of the Southern African Development Community in Johannesburg on Aug 17 2008.
The Zimbabwean president, Robert Mugabe, speaks to aides during the summit of the Southern African Development Community in Johannesburg on Aug 17 2008.

Zimbabwe opposition politicians held



HARARE, ZIMBABWE // Two Zimbabwe opposition politicians were arrested today as they entered parliament to be sworn in, their party said. The arrests, and a government announcement that the Zimbabwean president, Robert Mugabe, had appointed loyalists to several posts, were likely to fuel opposition accusations Mr Mugabe is undermining stalled power-sharing negotiations. One of the men arrested today, Eliah Zembere, was among seven Movement for Democratic Change (MDC) activists police have said they were seeking, alleging they were involved in election violence.

The other, Sure Mudzingwa, was not on the list, and the two uniformed and three plainclothes officers who made the arrests did not say why nor where the two were being taken. In a statement, the opposition party said police also tried to arrest a third member, who is on a team trying to negotiate the power-sharing agreement, but he "was rescued by other MDC members of parliament". Police spokesman Wayne Bvudzijena said he was unaware of today's arrests, adding: "It would be illegal for anyone to be arrested while they were proceeding to parliament."

Independent human rights groups have said Mr Mugabe's forces were responsible for most of the violence since the opposition won the most seats in the March 29 legislative elections. Opposition leader Morgan Tsvangirai beat Mr Mugabe and two other candidates in presidential elections held alongside the legislative balloting, but did not gain the simple majority of votes needed to avoid a runoff. Mr Mugabe and Mr Tsvangirai have entered into power-sharing negotiations. Opposition spokesman Nelson Chamisa said the MDC remained determined to take up seats in parliament, which Mr Mugabe was due to open tomorrow for the first time since the elections nearly five months ago.

Mr Chamisa said that the arrests were politically motivated, an attempt by Mr Mugabe's ZANU-PF party to regain control of parliament. ZANU-PF had controlled parliament from independence in 1980 until the March vote. "ZANU-PF are in a desperate attempt to try and stop or abort our victory," Mr Chamisa said. "It's a struggle. We have to fight it out." Mr Tsvangirai's party has 100 seats in the 210-seat legislature, Mr Mugabe's party has 99, and a faction that broke away from the opposition has 10. An independent politician who broke away from Mr Mugabe's party has the remaining seat. Mr Tsvangirai had criticised the reconvening of parliament given the deadlock in power-sharing talks mediated by South African President Thabo Mbeki.

Leaked documents from the talks show Mr Tsvangirai balked at signing a deal based on an offer making him prime minister with limited powers and answerable to Mr Mugabe, who would remain as president. The documents show the prime minister would be deputy chairman of the Cabinet, and the president and the prime minister would need to agree on ministerial posts. With the prime minister reporting regularly to the president, Mr Mugabe's power would be left virtually intact.

Today, state media reported that Mr Mugabe had appointed eight governors and three senators, all ZANU-PF loyalists. One of the new senators, Patrick Chinamasa, is a Mugabe hardliner who lost his parliamentary seat in March and who has led the ZANU-PF team in the power-sharing negotiations. The opposition has argued that the appointed governor positions should be abolished, saying their only function is to provide power and salaries for Mr Mugabe's "cronies". The political impasse has worsened Zimbabwe's economic meltdown. Official inflation is given as 11 million per cent, but independent financial institutions say it is closer to 40 million per cent amid acute shortages of food, gasoline, medicine and most basic goods.

* AP

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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