$20 BAT ZIMBABWE APPOINTS NEW MD: Page 31

BAT ZIMBABWE APPOINTS NEW MD: Page 31 $20

News Worth Knowing Calls for rand use escalate: Page 3

October 10-16 2019 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette

ZSE Report The All Share Index added 0,26 percent on Wednesday to close at 233,38 points. Zimre Holdings gained 15,17 percent to end at $0,082, while CAF- Zim is on CA traded 6,67 percent higher at $1,60. OK Zimbabwe gained 4,07 percent to close at $0,6038. The In- dustrial Index was up by 0,26 percent to close at 779,13 points, while the Top 10 Index was up by 0,33 percent at 218,81 points. The Minings Index was flat at 278,28 points. Currencies (Bloomberg) % change USD:ZAR 15,1732 0,70 ◀ ◀ EUR:USD 1,0981 0,22 autopilot, ◀ GBP:USD 1,2225 0,05 ◀ USD: JPY 107,3600 0,25

Stock Markets ◀ ZSE (All Share) 233,38 0,26 ZSE (Minings) 278,28 0 12 776.00 0.96 JSE ◀ ◀ FTSE 100 7 176.98 0.47 ◀ Dow 26 304,89 0.54

Commodities ◀ business Gold 1 506.83 0.09 0,43 Platinum 886,15 ◀ ◀ Brent Oil 58,90 1,13

Grains (Grain SA) ◀ White Maize ZAR 2 378,14 3,1 ◀ Soya ZAR 5 164,15 1,4 ◀ Wheat ZAR 2 806,50 3,1 Old Mutual Kudabemoans Chideme laws which experts say are choking both com- Markets Editor merce and industry. This comes as the government has just effected board faces jail XPERTS say it is becoming increasingly an outright ban on the local use of the American OLD Mutual has made an impassioned plea to the South African High Court, say- difficult to discern a coherent government dollar, in addition to controlling certain aspects of ing the potential imprisonment of board Eplan to fix the country’s shrinking, diseased mobile money services and implementing foreign members — if they are found guilty of economy — with many of the policies that have currency duty-exemptions for a few select com- contempt of court for not allowing ousted been implemented by authorities over the past panies. chief executive Peter Moyo to return to two years described as slipshod at best. “These are difficult times, with the govern- work — would be “excessive and inap- While many economists accept that President ment either unwilling to take the necessary tough propriate”. Emmerson Mnangagwa’s administration inherit- decisions or implementing a raft of poorly-con- It was responding to Moyo’s applica- ed an economy in bad shape from the regime of ceived policies such as many of the recent statu- tion at the high court in Johannesburg to his late predecessor Robert Mugabe, they are con- tory instruments. declare the insurance group’s 13-member Basil Dionisio, Simbisa Brands' group chief executive, says board to be in contempt of court for block- cerned that things are getting worse by the day — “One sometimes even gets the unfortunate im- constrained consumer spending and depressed trading ing him from returning to his office three with the stewardship of the country’s key national pression that the country is on autopilot at the mo- activity will remain a challenge for the business in 2020. The times. affairs seemingly on autopilot. ment,” an exasperated chairman of a Zimbabwe fast food retail giant’s revenue increased by 79 percent to Moyo has been prevented from re- Among the ill-considered policies that pan- Stock Exchange-listed company told The Finan- $255 million in the year to June 30, 2019. suming his duties as CE despite the court icking authorities have taken recently are a raft cial Gazette this week. Picture by Freedom Mashava ordering twice that he should be temporar- of statutory instruments (SIs) and other knee-jerk To Page 2 ily reinstated as CE. — Moneyweb Page 2 | October 10-16 2019 The Financial Gazette National News Zim is on autopilot, business bemoans From Page 1 omy “is dead”, experts are surprised that the a negative impact on interbank trades, which “Zimbabwe’s economy is facing serious “The policy inconsistencies are of grave concern to government has veered off its ambitious plan to bankers say have gone down to zero. headwinds and what it needs now is protec- investors,” Victor Bhoroma, an economist, said. revive the sluggish economy by restoring order In the meantime, experts say, the economy tion of investment and policies that stimulate “Policy inconsistencies make it difficult for prospec- to public finances — particularly with the Inter- is slowly re-dollarising, with some businesses growth. Sadly, that is not happening at the mo- tive and committed investors to plan. It also reduces bank national Monetary Fund (IMF) having warned continuing to charge in foreign currency despite ment,” it said. lending ratios and financial planning at corporate level,” the country that it has a slim chance of success- the government ban on the local use of foreign At the same time, many experts also con- he said, adding the “recent change from the multi-curren- fully re-balancing its books. currencies, as inflation also continues to batter tend that Zimbabwe’s economy will not bounce cy regime to bond notes and then RTGS dollar as well as This comes as the government has flip- the local currency and the economy at large. back to life in the absence of a bailout pack- latest exchange rate directives ranked among the biggest flopped on the funding of the controversial Meanwhile, local think-tank Econometer age in the region of US$2 billion — funds examples of policy chaos ”. command agriculture programme, while the Capital Global has also expressed misgivings which the country cannot currently access. “The same can be said about the recent ban on grain new exchange control regulations have had about economic developments in the country. [email protected] movement through SI 149 of 2019 and suspension two months later,” Bhoroma said. “There is an urgent need to separate key institutions such as central bank operations (monetary policy) from political decisions. It’s also vital for the government to consult... the Confederation of Zimbabwe Industries, bankers and farmer unions,” he said. “There is also need to practise due diligence before announcing market defining policies today and changing direction tomorrow,” Bhoroma added. Jacques Nel, an economist with think-tank NKC Af- rican Economics, said confidence in the government remained low — adding that the recent re-introduction of the Zimbabwean dollar was among the biggest policy miscalculations for the country’s fragile economy. “Zimbabweans still have little faith in the government’s ability to create and maintain its own sovereign currency, but the dire situation has forced many to adopt its usage and go along for the ride,” he said. “Cash shortages continue to hamper economic activity, and addressing this remains one of, if not the most pressing economic issue,” Van der Linde said. “However, dusting off the printing presses will by no means be the solution to the problem, with much harder work required on building confidence in fiscal finances and attracting hard currency to give the local unit some semblance of credibility,” he said. Industry minister Mangaliso Ndlovu commissions ZFC's new fertiliser blending plant in Aspindale, Harare, on Monday. The plant — And with Mnangagwa himself having acknowledged valued at US$500 000 — has the potential to produce 300 000 tonnes of blended NPK fertilisers per year, which is an upgrade from the in his recent state of the nation address that the local econ- previous one that produced 150 000 MT. NRZ US$400m deal in limbo John Kachembere dled to less than 4 600. Assistant Editor Neglect, lack of spare parts and obsolete equipment have led to a situation where only part HE National Railways of Zimbabwe of the railroad network is in good condition. (NRZ)'s US$400 million recapitalisation The company is sinking in debt, making it im- Tdeal is in limbo after Transport minister possible to get out of the quagmire without exter- Joel Biggie Matiza opened it to new investors. nal help. Freight declined from 18 million tonnes Government last year signed an exclusive in 1998 to 4 million tonnes in 2015. deal with the Diaspora Infrastructure Develop- Vandalism has paralysed the communications ment Group (DIDG) and South Africa’s railway system and the geographical spread of the net- giant Transnet to resuscitate NRZ. work made it almost impossible to adequately Although President Emmerson Mnangagwa protect and guard it. last week said he was happy with the US$420 Local think-tank Econometer Global Capital million raised by DIDG — through the Afrex- (Econometer) last week warned that continued imbank and other regional banks —Matiza threw delays in implementing the deal could jeopardise the cat among the pigeons when he unilaterally revival of the parastatal, which is key in econom- removed the exclusive clause on the deal ic revival. The Zanu PF legislator said government is “The NRZ deal reminds many of the failed still actively looking for other investors to rope resuscitation of Ziscosteel,” Econometer said. into the recapitalisation project. This is despite “There was pomp and fanfare when Indian the fact that DIDG has provided proof of funding investors were announced as saviours for the and the Martin Dinha-led NRZ board has also Joel Biggie Matiza yesteryear steel giant. The deal collapsed due to given its blessings to the deal, which has dragged ing the project with DIDG,” said a senior gov- disputes over concessions and bureaucratic red on for the past ernment official. tape. The chances of reviving Ziscosteel are al- 18 months due Financing term sheets seen by this publica- most remote.” to conflicted se- tion show that Standard Bank is ready to inject Indian firm Essar Africa Holdings in 2011 nior government US$317 million, Absa US$200 million, Nedbank promised to inject $750 million into Ziscosteel, officials and - ad US$200 million and the Industrial Development but the deal collapsed in 2016 leading to Essar’s visors. Corporation of South Africa US$100 million. unceremonious exit. Officials fa- However, Matiza’s comments have bred fears Essar had undertaken to take over Ziscosteel’s miliar with the that unless Mnangagwa and his office keep close debts, invest in new iron ore fields in Chivhu and transaction said tabs on the deal, which involves acquiring rolling pay off its 3 000 workers’ salaries. the DIDG deal stock, signalling and information communication But conflict in the then inclusive government was the closest technology equipment, its implementation could led by President Robert Mugabe’s ZANU-PF NRZ has ever suffer a still birth. and the late Prime Minister Morgan Tsvangirai’s been to recapi- There have been several attempts to attract MDC between 2009 and 2013 precipitated col- talisation, hence investment to recapitalise the NRZ in the last 15 lapse of the Essar deal, whose abrupt departure the need to oper- years, and all the previous efforts failed at various even surprised government. ationalise it. stages before conclusion mainly due to govern- Econometer said the fact that reputable Zim- “The official ment’s bureaucracy and indecision. babwe Stock Exchange-listed firms are strug- statement by… For instance, the African Development Bank gling to raise funding pointed to the roadblocks Mnangagwa in 2003 tabled its proposal to revive NRZ, while that awaited investors like DIDG in its efforts to during his state the Development Bank of Southern Africa and find capital for NRZ. of the nation ad- Group 5 also made attempts in 2012 and two NRZ’s performance has been affected by a dress is a huge years later Transnet’s bid also hit a snag due to slump in freight due to extensive de-industriali- step forward government red-tape. sation in Zimbabwe, as well as foreign currency and bureaucrats The Chinese also offered to revive the para- shortages that have affected its efforts to import should now statal in 2017 at an estimated cost US$7 billion, spares. swiftly move but the bid was rejected after government said it There has been a shortage of locomotives from negotiating was unsustainable. and wagons, while extensive damage to railway and analysis and At its peak, NRZ employed 17 000 workers tracks has seen an increase accidents. start implement- in the late 1980s, but staff complement has dwin- [email protected] The Financial Gazette October 10-16 2019 | Page 3 National News Calls for rand use escalate USINESSMAN George Manyere, pictured, says Zim- staffer said. also be shored up with caps “once a reasonable figures “because they are trying to contain this situa- babwe “has a good opportunity to bring stability to its “... you then legalise rand pricing, payments... point is reached”. tion, but since we are an import-dependent country... Beconomy through a referencing of its currency to the and allow them to operate as a dual currency be- “We cannot have fuel price adjusted upwards pricing of goods is not being done on market forces South African rand”. cause they are operating on a 1:1 basis. We will every week because we have a continuously (but) exchange rate movements, and this is particu- This comes as debate has intensified over the adoption of basically be adopting an exchange rate free-falling exchange rate, the rate we have been larly being driven by uncontrolled parallel market the Pretoria unit and as the currencies have converged on Hara- protection policy, which is fine -be free-falling no longer justifies a market-driven activities”. re’s interbank market. cause there is nothing wrong with exchange rate,” Manyere said. “And yes, you can never eliminate the parallel “To back stop the current runaway free-falling currency, I protecting your own currency, “... the reality of what is going on now market activities completely, but the parallel market believe we have a unique opportunity... where our Zimbabwe because you also cannot have is absolutely not normal. I think the Zim- rate should never be a reference for economic activ- dollar... is trading at the same level as the South African rand, a free-falling rate. When a cur- babwean psyche will get used and accept ities in a country. so I strongly believe that... both private sector and government rency falls uncontrolled, ev- a peg of the Zimbabwe dollar to the rand. "Parallel market activities, even in SA are there, must seriously engage and evaluate this reality...,” Manyere erybody gets hurt,” Manyere As I have said, we have had a significant but they are at a level where they are unrecognised said at the weekend. said. devaluation of our currency, which has and inconsequential to the functioning of the econ- “And if we do not do that, I think we are likely to see a con- With the Zimbabwean dol- impacted all of us ... pensions have been omy, and people play in the parallel market for ex- tinued runaway falling currency. And it might not be because lar tumbling by more than 510 lost once again, balance sheets wiped out, tremely different reasons,” Manyere said. there are no fundamentals to justify that free-fall, but it is just percent — barely seven months companies struggling to remain open et cet- “ ... but in Zimbabwe it has become a threat to eco- that the market needs... (to have) confidence and... a reference after its introduction — he said era. It has created significant instability in nomic stability ... even to the stability of the country point in its movement..,” he said. that the dismal performance was our economy. It has pushed us again on because you cannot have any successful economic While Manyere emphasised that the “exchange rate can be linked to a lack of a reference the brink of hyperinflation,” he said. reforms ... when your exchange rate is devaluing 15 today and even 30 tomorrow”, the ex-International Mone- point. Government, the Harare even at one percent per day, which has been the case tary Fund (IMF) senior staffer says Zimbabwe’s currency re- As such, the inter- businessman said, has had in our country over the course of this year,” he said. forms can only get better with a one-on-one peg to the South bank market must to stop printing inflation — Staff Writer [email protected] African rand — and even if it is in the short term. The country, he said, primarily dollarised because the Zimbabwean dollar had been rendered useless and such that a reference point was key in restoring confidence, price stability and stemming hyperinflation — while the other benefits of economic reforms kick in. “... the weakness in having a basket of currencies — which was pretty much a dollarised environment — is that the Ameri- can dollar is the most traded currency in the world and ... it can be exported anywhere in the world..,” Manyere said, adding “it was a matter of time before the greenbacks were depleted both in cash and nostro balances as well as being an import-dependent country”. “Now ... the solution was to dump the United States dollar and adopt a local currency. I think on the face of it ... we were in a situation where we were going to do that anyway. But I think the challenge that was there ... was the lack of critical in- gredients ... to underpin any currency i.e a reference point,” the former banker said. Since Zimbabwe had embarked on currency reforms with a free-floating and dollar-referenced currency — in the hope of imminent price discov- We cannot have fuel price ery — this “has caused adjusted upwards every significant pain because week because we have a mentally you are moving continuously free-falling from 1:1 exchange rate to $15 and the amount of val- exchange rate, the rate ue destruction associated we have been free-fall- with it”. ing no longer justifies a And as the country market-driven exchange undergoes major eco- rate. nomic reforms, it will experience “significant and much-needed pain for us to come out of the bad situation we have gotten ourselves into over the last two decades, and especially in the case or scenario of an open-ended and free-falling currency”, Manyere said. “South Africa (SA) is Zimbabwe’s biggest trading partner. Trade between the two countries has grown quite substantial- ly in the past decades, with more than 60 percent of our trade being with SA. We have exported a significant chunk of our population — probably 20 percent — into SA..,” he said in his further arguments for a tie-up to Pretoria. “If you look at industry in Zimbabwe right now, it has a strong link with SA. A lot of private sector activities are linked ... whether in terms of importing or exporting goods. So when you tick off all these things, we are going to have significant positives in inflows ... in terms of remittances, which at an average of 1 000 rand per year... (can be) three billion rand of physical cash ... which can be used for transacting if we are pegged to the South African rand and this will help in reducing our money supply..,” Manyere said. Apart from significant foreign direct investment inflows flows from SA — as a result of the intertwining of economies — quite a number of key corporates have their parent companies in that country and, so, a peg could encourage more investment into the country. With the South African economy’s liquidity — the largest in Africa — the potential for government and various private sector players to obtain credit lines would also be greater, he argued. “...the South African rand is in the top 20 of the most trad- able currencies across the world... You are not talking of a currency without credibility (but) a credible global reference point..,” Manyere said. “We have seen Namibia, Swaziland and Botswana economies, they have all functioned reasonably well pegged or linked to the South African rand, and I think it is very logical for the Zimbabwean economy to fit into that basket as well, even if it is unofficial. The qualitative aspects of formalising that arrangement can be dealt with at the appropriate levels over a period of time,” he said. But for the process to succeed, a serious mind-set change or shift has to occur. “... without getting into the bureaucratic processes of offi- cialising this position, we need to configure the mind-sets here, adjust our legislations here, particularly ... statutory instrument (SI) 212 ... which banned all foreign currency (and) it should be adjusted to outlaw all other currencies and only allow the Zimbabwe dollar and the South African rand,” the ex-IMF Page 4 | October 10-16 2019 The Financial Gazette National News Insurers urged to adopt technology

Omega Ukama long and complex contracts and are distributed ter understanding of customer needs through Senior Staff Reporter through costly networks of agents and brokers data analytics. that only reach the urban elite. “It bridges the digital gap that exists be- IMBABWEAN insurers have been "Insurers must digitise to remain relevant tween us and the rest of the global markets,” urged to adopt digital service models and viable and especially in order to achieve she said. to improve insurance penetration rate real industry growth which can only be IPEC, which is aiming for the local indus- in the country. achieved by reaching the un-insured majority. try to achieve a penetration rate of 20 percent, ZAccording to Ernst & Young, Africa’s insur- "Digitisation of channels is vital for African has also been pushing for the adoption of new ance penetration is about 3,5 percent compared insurers because it fosters financial inclusivity technologies. to a global average of about seven percent. and supports lower operating costs for insur- The regulator says it will move a gear up The Insurance and pensions Commission ance delivery,” she said. and adopt electronic surveillance which will be (IPEC), puts Zimbabwe’s insurance penetra- Francis noted that insuretech also creates done on a real time basis. tion at below two percent. new cost-efficient business models to address Plans are afoot to transform the insur- “The traditional insurance providers of Af- new risk categories including low income and ance and pensions industry, including adop- rica and Zimbabwe have failed in reaching the rural sectors. tion of blockchain technology, mobile in- financially excluded. They have been slow to The needs of the average insurance custom- surance, cloud computing, the Internet of tailor their products and services to the local re- er have been changing with advances in tech- Things (IoT), advanced analytics, telemat- alities,” Zelina Francis, ZimSelector’s business nology, while these developments have also ics, the global positioning system (GPS), development director said at a recent industry created an environment for future generations digital platforms, drones, smart contracts meeting. that will be “digital natives”. and artificial intelligence, among others. “Traditional insurance companies have Francis said going digital also enables bet- [email protected] Zelina Francis ZECO’s troubles persist Omega Ukama Senior Staff Reporter

ZECO Holdings (ZECO)'s problems have persist- ed after the engineering company incurred a loss of $885 605 during the half-year to June 30, 2019, compared to a loss of $581 086 in the prior period. The company has not made a profit since 2009. “The group mainly relies on infrastructure projects and construction materials, due to the challeng- ing economic environment, the group's performance was adversely affected as no major projects were undertaken during the period under review due to inflationary pressures resulting in the suspension of major projects,” Philip Chiyangwa, ZECO’s board chairman said in the company’s results. This comes as the operating environment in Zim- babwe remained highly-volatile during the period under review, characterised by significant policy changes in a market plagued by foreign currency shortages, tight liquidity and high inflation. Annual inflation reached 176 percent in June 2019 before the government discontinued publishing the year-on-year statistics. Chiyangwa said this will make measurability of performance very difficult. Government has also, reintroduced the Zimba- bwean dollar as the sole tender. “This has resulted in a number of projects, which the group was poised to benefit from, being either shelved or delayed,” Chiyangwa said. The company is, however, optimistic that the monetary and fiscal policies being implemented by government will “improve the operating environment”. “In the short-term, inflationary pressures may persist with gradual improvement. “The group will continue to innovate and maximise on an opportunity which avails itself including prospects of linkages with local and regional players,” the chairman said. Meanwhile, ZECO shareholders have continued to hold on to the struggling company’s stock on the Zimbabwe Stock Exchange (ZSE). According to official ZSE data, the company’s shares have only traded on three instances this year. In comparison, most counters have traded more frequently since the beginning of this month. This comes as the share price of the company has deteriorated to 0,0002 cents over the years, giving the company a market capitalisation of a paltry $93 000. “Shareholders are not willing to sell their holdings at the current prices,” said an equity analyst who preferred anonymity. “It is not that there have not been any bids for the company’s shares, if you look at the online trading portal today, you will find open bids but there have not been any sellers,” the analysts said. “The value that someone is willing to pay for a company that has not made a profit for a decade is very low, as you would expect, this is why this particular counter has not seen much action,” he added. The company’s results show that the company had net assets of about $18,6 million as of June 2019. This means that its stock is technically undervalued by a factor of 99,5 percent. [email protected] The Financial Gazette October 10-16 2019 | Page 5

TheThe Board, Board, Management Management and staff of the Zimbabwe and National staff Road Administration of the Zimbabwe (ZINARA), would like toNational congratulate the Road following onAdministration their recent appointments. (ZINARA), would Thelike Board, to congratulate Management andthe stafffollowing of the Zimbabwe on their Nationalrecent Roadappointments. Administration (ZINARA), would like to congratulate the following on their recent appointments.

Gilfern Moyo is part a cohort of 22 academic ambassadors who represented Zimbabwe in the prestigious British Chevening Scholarships in 2015. He is a double master who graduated with a taught Master of Business Administration- General management (Merit) from the University of Hull in England and a Master of Public Administration (Merit) from the University of Zimbabwe. He holds a Chartered Management Institute United Kingdom Level MOSES CHIGONYATI VIEW MUZITESeven Diploma in StrategicGARIKAI Management MBANDA and NAPHTALI STRAUSS TEMBO TECHNICAL SERVICES DIRECTOR CORPORATE SECRETARY AUDIT MANAGER FINANCE MANAGER Leadership and a Certificate in Entrepreneurial Moses Chigonyati is a qualified View Muzite holds aTraining Master of from Arnhem University in the Naphtali Strauss Tembo is a Civil Engineer with over 20 years Laws Degree in Commercial Garikai Mbanda is a qualified holder of BSC(Hons) degree, GILFERN MOYO of experience gained in the and a Bachelor of LawsNetherlands. GilfernChartered holds Certified a B.Sc. Honors in ACCA, CIS and MBA(UZ) ADMINISTRATION AND HUMAN RESOURCES DIRECTOR built environment. He has Honours Degree. ShePolitics is and AdministrationAccountant (ACCA),from the Certified University specializing in Financial worked in various capacities in married and has twoof children. Zimbabwe andInformation an IPMZ Systems Diploma Auditor in People services. He has twelve years of Gilfern Moyo is part a cohort of 22 academic the Public and Private sector in (CISA), Certified Internal Auditor experience in Finance, with 9 ambassadors who represented Zimbabwe in the Zimbabwe and Botswana. Management. Gilfern(CIA), Institutehas held of Chartered the positions years in the private sector, 3 prestigious British Chevening Scholarships in 2015. He is During this period, Moses has of Group HumanSecretaries Resources and AdministrationDirector, years in the Media Industry. He a double master who graduated with a taught Master gained invaluable knowledge Group Human Resources(ICSAZ), Control and Objectives Administration for is a registered Public of Business Administration-General management and experience and his key Information and Related Accountant. Naphtali has (Merit) from the University of Hull in England and a competencies include Executive, BusinessTechnology Development Assessor (COBIT Executive, 5). previously held the position of Master of Public Administration (Merit) from the infrastructure design, and Manager HumanHe has ResourcesBSc in Applied for several Acting Director Finance and University of Zimbabwe. He holds a Chartered construction supervision and listed and non -listedAccounting entities and in is botha Global the Licensing in the Media sector Management Institute United Kingdom Level Seven project management. He holds MOSESMBA finalist. CHIGONYATI He has vast years before joining ZINARA. VIEW MUZITE NAPHTALI STRAUSS TEMBO Diploma in Strategic Management and Leadership a Bachelor of Technology private and publicof in-depth sectors experience in a career in both GARIKAI MBANDA and a Certificate in Entrepreneurial Training from (Hons) Civil Engineering (UZ), spanning TECHNICALover 18External years. SERVICESand Gilfern Internal chaired Auditing DIRECTOR the Air CORPORATE SECRETARY AUDIT MANAGER FINANCE MANAGER Arnhem University in the Netherlands. Gilfern holds a Master of Business Transport Industryand Employers has worked Association in both private and B.Sc. Honors in Politics and Administration from the Administration (UZ) and Post and public sector. He has Naphtali Strauss Tembo is a University of Zimbabwe and an IPMZ Diploma in Grad Diploma in Project was also MosesChairman Chigonyatiworked of the for theHuman Comptroller is a Resources qualified and View Muzite holds a Master of People Management. Gilfern has held the positions of Management (PMZ). 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She is both the private and public sectors in a career children workedaudit in variousdepartments. capacities Garikai is in married and has two children. Information Systems Auditor services. He has twelve years of spanning over 18 years. Gilfern chaired the Air married to Babra Mbanda nee (CISA), Certified Internal Auditor experience in Finance, with 9 Transport Industry Employers AssociationGilfern and was alsoMoyo is part a cohort of 22 academic the PublicMatsikidze. and They Private are blessed sector in TheThe Board,Board, ManagementManagement andand Chairmanstaffstaff ofof of thethe the HumanZimbabweZimbabwe Resources NationalNational Committeeambassadors RoadRoadfor the AdministrationAdministration who represented (ZINARA),(ZINARA), Zimbabwewouldwould likelike toto incongratulatecongratulate the thethe followingfollowingZimbabwewith onon 3 beautifultheirandtheir recentrecentBotswana. and intelligent appointments.appointments. (CIA), Institute of Chartered years in the private sector, 3 National Employment Council for the Air Transport daughters. Secretaries and Administration years in the Media Industry. He Industry. He is married to Olivia prestigiousand has three British Chevening Scholarships in 2015. He is During this period, Moses has progenies, Vladimir, Sasha and Claus.a double master who graduated with a taught Master gained invaluable knowledge (ICSAZ), Control Objectives for is a registered Public and experience and his key Information and Related Accountant. Naphtali has Visit our website: www.zinara.co.zwof Business Administration-General management Send us email: [email protected] (Merit) from the University of Hull in England and a competencies include Technology Assessor (COBIT 5). previously held the position of Master of Public Administration (Merit) from the infrastructure design, He has BSc in Applied Acting Director Finance and University of Zimbabwe. He holds a Chartered construction supervision and Accounting and is a Global Licensing in the Media sector Management Institute United Kingdom Level Seven project management. He holds MBA finalist. He has vast years before joining ZINARA. of in-depth experience in both

Diploma in Strategic Management and Leadership a Bachelor of Technology Laz DI620840-D27 The Board, Management and staff of the Zimbabwe National Road Administration (ZINARA), would like to congratulate the following on their recent appointments. and a Certificate in Entrepreneurial Training from (Hons) Civil Engineering (UZ), External and Internal Auditing Arnhem University in the Netherlands. Gilfern holds a Master of Business and has worked in both private B.Sc. Honors in Politics and Administration from the Administration (UZ) and Post and public sector. He has University of Zimbabwe and an IPMZ Diploma in Grad Diploma in Project worked for the Comptroller and People Management. Gilfern has held the positions of Management (PMZ). He is Auditor General of Zimbabwe, Group Human Resources Director, Group Human currently reading for an MSC Tel One, National Social Security Authority, ZIMASCO Group of MOSES CHIGONYATIResources and Administration Executive, Business Construction Project VIEW MUZITE GARIKAI MBANDA NAPHTALI STRAUSS TEMBO Companies and Zimbabwe TECHNICALTECHNICAL SERVICESSERVICESDevelopment DIRECTORDIRECTOR Executive,CORPORATE and SECRETARY Manager Human AUDIT MANAGERManagement with NUST.FINANCEFINANCE He is MANAGERMANAGER Resources for several listed and non -listed entities in married to Mettie and has two Energy Regulatory Authority’s Moses Chigonyati is a qualified Naphtali Strauss Tembo is a View Muzite holds a Master of children audit departments. Garikai is Civil Engineer withboth over 20the years private andLawsLaws DegreeDegreepublic inin CommercialsectorsCommercial in a careerGarikai Mbanda is a qualified holder of BSC(Hons) degree, GILFERN MOYO of experience gainedspanning in the over 18 andyears. a Bachelor Gilfern of Laws chaired the AirChartered Certified ACCA, CIS and MBA(UZ) married to Babra Mbanda nee ADMINISTRATION AND HUMAN RESOURCES DIRECTOR built environment.Transport He has Industry EmployersHonours Degree. Association She is and was alsoAccountant (ACCA), Certified specializingspecializing inin FinancialFinancial Matsikidze. They are blessed worked in various capacities in married and has two children. InformationInformation SystemsSystems AuditorAuditor services.services. HeHe hashas twelvetwelve yearsyears ofof MOSES CHIGONYATI NAPHTALI STRAUSS TEMBO with 3 beautiful and intelligent Gilfern Moyo is part a cohort of 22 academic thethe PublicPublic andand PrivatePrivateChairman sectorsector ininof the Human Resources Committee for theVIEW(CISA),(CISA), MUZITE CertifiedCertified InternalInternal AuditorAuditorGARIKAI MBANDAexperience in Finance, with 9 TECHNICAL SERVICES DIRECTOR CORPORATE SECRETARY AUDIT MANAGER FINANCE MANAGER ambassadors who represented Zimbabwe in the ZimbabweZimbabwe andand NationalBotswana.Botswana. Employment Council for the Air Transport(CIA),(CIA), InstituteInstitute ofof CharteredChartered yearsyears inin thethe privateprivate sector,sector, 33 daughters. prestigious British Chevening Scholarships in 2015. He is During this period, Moses has Moses Chigonyati is a qualified View MuziteSecretariesSecretaries holds a Master andand of AdministrationAdministration yearsyears inin thethe MediaMediaNaphtali Industry.Industry. Strauss HeHe Tembo is a Industry. He is married to Olivia and has three Garikai Mbanda is a qualified holder of BSC(Hons) degree, gained invaluable knowledge Civil Engineer with over 20 years Laws Degree(ICSAZ),(ICSAZ), in Commercial ControlControl ObjectivesObjectives forfor isis aa registeredregistered PublicPublic a double master who graduated with a taught Master GILFERN MOYO of experience gained in the Chartered Certified ACCA, CIS and MBA(UZ) progenies, Vladimir, Sasha and Claus. and a BachelorInformationInformation of Laws andand RelatedRelated Accountant. Naphtali has of Business Administration-General management ADMINISTRATIONand experienceAND HUMAN RESOURCES and his key DIRECTOR built environment. He has Honours Degree. She is Accountant (ACCA), Certified specializing in Financial (Merit)(Merit) fromfrom thethe UniversityUniversity ofof HullHull inin EnglandEngland andand aa competencies include worked in various capacities in married andTechnologyTechnology has two children. AssessorAssessor (COBIT(COBITInformation 5).5). Systems Auditorpreviously held theservices. position He has of twelve years of Master of Public Administration (Merit) from the Gilfern Moyoinfrastructureinfrastructure is part a cohort design,design, of 22 academic the Public and Private sector in He has BSc in Applied (CISA), Certified InternalActing Auditor Director experienceFinance and in Finance, with 9 ambassadors who represented ZimbabweVisit our in website:the www.zinara.co.zwZimbabwe and Botswana. Accounting and is a Global(CIA), Institute of CharteredLicensingLicensing inin thethe years MediaMedia in the sectorsector private sector, 3 University of Zimbabwe. He holds a Chartered construction supervision and During this period, Moses has Secretaries and Administration years in the Media Industry. He prestigious British Chevening Scholarships in 2015. He is MBA finalist. He has vast years before joining ZINARA. Management Institute United Kingdom Level Seven a double masterproject who graduatedmanagement. withSend a taught He usholds Master email: [email protected] invaluable knowledge (ICSAZ), Control Objectives for is a registered Public Diploma in Strategic Management and Leadership of Business aAdministration-General Bachelor of Technology management and experience and his key of in-depth experience inInformation both and Related Accountant. Naphtali has Technology Assessor (COBIT 5). and a Certificate in Entrepreneurial Training from (Merit) from (Hons)(Hons)the University CivilCivil EngineeringEngineeringof Hull in England (UZ),(UZ), and a competencies include ExternalExternal andand InternalInternal AuditingAuditing previously held the position of Master of Public Administration (Merit) from the infrastructure design, and has worked in both Heprivate has BSc in Applied Acting Director Finance and Arnhem University in the Netherlands. Gilfern holds a Master of Business construction supervision and Accounting and is a Global Licensing in the Media sector University of Zimbabwe. He holds a Chartered and public sector. He has B.Sc. Honors in Politics and Administration from the ManagementAdministration Institute United (UZ)Kingdom and Level Post Seven project management. He holds and public sector. He hasMBA finalist. He has vast years before joining ZINARA. University of Zimbabwe and an IPMZ Diploma in Diploma in StrategicGrad Diploma Management in Project and Leadership a Bachelor of Technology worked for the Comptrollerof in-depth and experience in both External and Internal Auditing People Management. Gilfern has held the positions of and a CertificateManagement in Entrepreneurial (PMZ). HeTraining is from (Hons) Civil Engineering (UZ), Auditor General of Zimbabwe, Master of Business and has worked in both private Arnhem Universitycurrently in the readingNetherlands. for anGilfern MSC holds a TelTel One,One, NationalNational SocialSocial SecuritySecurity Group Human Resources Director, Group Human B.Sc. Honors in Politics and Administration from the Administration (UZ) and Post and public sector. He has Resources and Administration Executive, Business University of ConstructionZimbabwe and Project an IPMZ Diploma in Grad Diploma in Project Authority, ZIMASCO Groupworked of for the Comptroller and

Development Executive, and Manager Human People Management.Management Gilfern has with held NUST. the positions He is of Management (PMZ). He is Companies and ZimbabweAuditor General of Zimbabwe, Laz DI620840-D27 Group Humanmarried Resources to Mettie Director, and Group has twoHuman currently reading for an MSC EnergyEnergy RegulatoryRegulatory Authority’sAuthority’sTel One, National Social Security Resources for several listed and non -listed entities in married to Mettie and has two Authority, ZIMASCO Group of Resources and Administration Executive, Business Construction Project audit departments. Garikai is both the private and public sectors in a career Developmentchildren Executive, and Manager Human Management with NUST. He is Companies and Zimbabwe spanningspanning overover 1818 years.years. GilfernGilfern chairedchaired thethe AirAir Resources for several listed and non -listed entities in married to Mettie and has two married to Babra MbandaEnergy nee Regulatory Authority’s TransportTransport IndustryIndustry EmployersEmployers AssociationAssociation andand waswas alsoalso both the private and public sectors in a career children Matsikidze. They are blessedaudit departments. Garikai is spanning over 18 years. Gilfern chaired the Air with 3 beautiful and intelligentmarried to Babra Mbanda nee Chairman of the Human Resources Committee for the Matsikidze. They are blessed Transport Industry Employers Association and was also daughters. National Employment Council for the Air Transport Chairman of the Human Resources Committee for the with 3 beautiful and intelligent Industry.Industry. HeHe isis marriedmarried toto OliviaOlivia andand hashas threethree National Employment Council for the Air Transport daughters. progenies, Vladimir, Sasha and Claus. Industry. He is married to Olivia and has three progenies, Vladimir, Sasha and Claus.

Visit our website: www.zinara.co.zw Visit our website: www.zinara.co.zw SendSend usus email:email: [email protected]@zinara.co.zw Send us email: [email protected] Laz DI620840-D27 Laz DI620840-D27 Laz DI620840-D27 Page 6 | October 10-16 2019 The Financial Gazette National News Zim current account deficit declines Tabitha Mutenga er structural policies, the country’s exports were Cumulative merchandise exports for 2019 up Managing Editor expected to improve by next year. until July increased by 7,2 percent from US$1,96 Ziyambi to officiate “By December 2019, cumulative exports are billion during the same period in 2018, to US$2,1 IMBABWE’s current account deficit is expected to record US$5 billion, against im- billion. This is despite a decrease in gold exports, expected to decline by 83 percent to close ports of US$6,3 billion to give a current account and largely on account of nickel and tobacco. at human rights Zthe year at US$238 million from US$1,4 deficit of US$238 million,” he said in his 2020 Consequently, the trade deficit decreased by billion in 2018, Finance minister Mthuli Ncube pre-budget strategy paper. 60 percent from US$1,3 billion recorded be- discussion forum has said. “This reflects a major shift towards a balanced tween February-June 2018 to US$542 million JUSTICE minister Ziyambi Ziyambi will be the guest Market experts, however, assert that the de- current account through export promotion sup- recorded in the period under review. speaker at a high-powered human rights discussion fo- cline is more to do with foreign currency short- ported by import management measures, which Zimbabwe’s exports were dominated by pri- rum to be held in Harare today at stand number 6996, ages and increased cases of smuggling than im- prioritise essential inputs and capital equipment mary commodities such as semi-manufactured corner Lezard Avenue and Bates Street in Milton Park. proved local production. as opposed to non-essential imports.” gold, nickel ores and concentrates, nickel mattes, The event, organised by the Daily News, will The southern African country’s current ac- In 2020, exports are projected at US$5,5 bil- flue-cured tobacco, ferrochromium, diamonds, also feature Beatrice Mtetwa, a celebrated human count deficit narrowed from a peak of US$2,7 lion with imports growing to US$6,6 billion on jewellery, raw cane sugar, chromium ores and rights and award-winning lawyer, Zimbabwe Human billion in 2011 to US$1,4 billion in 2018 at a account of higher imports of essential inputs and concentrates and platinum. Rights Commission chairperson Elasto Mugwadi, time domestic industries are struggling with equipment, including electricity and fuel. The bulk of the country’s imports in the pe- Zimbabwe Peace Project director Jestina Mukoko, high production costs emanating from electricity “In the outlook, emphasis will also be on ex- riod under review remained heavily skewed Evangelical Fellowship of Zimbabwe president Nev- and water shortages, as well as lack of access to port diversification and beneficiation of primary towards consumptive products which com- er Muparutsa, MDC secretary for elections Jacob cheap funds. commodities to increase the value of exports, prise fuel, wheat, medicines and vehicles, Mafume and Zimbabwe National Liberation War Ncube said with continued implementation that way reducing risks from international price [email protected] Veterans' Association chairperson Chris Mutsvangwa. of fiscal and monetary policy reforms and oth- shocks,” he said. According to the organisers, the discussion forum, which will also feature government representatives, human rights activists, political parties and the Church, is meant create a platform for State actors to interface with representatives of civic society to discuss the current human rights situation and map the way forward on how the country could deviate from the current trajectory that has been blighted by a spate of abductions. “The Discussion Forum is an absolute necessity and a catalyst for peace building mechanisms that can be used to bring together diverse stakeholders (State and non-State actors alike) in getting Zimbabwe to work again,” said Hama Saburi, the Associated News- papers of Zimbabwe (ANZ) chief operating officer. Francis Mushaninga, ANZ’s general manager - sales and marketing, also encouraged non-govern- mental organisations, human and civil rights defend- ers, political party representatives, parliamentarians, councilors, opinion leaders, labour unions, government representatives and diplomats to participate. “The involvement of MPs and councillors will enhance their understanding of human rights issues, while making them change agents in communities within which they serve. In the case of lawmakers, it will further enhance their oversight role as they hold members of the Executive to account,” Mushaninga said. In recent months, there has been an alarming spike in the abductions and torture of government critics despite the fact that Constitution guarantees civil lib- erties, including freedom of speech, press and media, assembly and association. According to rights groups, over 50 civil society FROM LEFT: Zimbabwe Consolidated Diamond Company acting CEO Roberto De Pretto, board chairman Engineer Killian Ukama, Stan- leaders and opposition activists have been abducted in dards Association of Zimbabwe director-general Eve Gadzikwa and deputy minister of Mines Polite Kambamura pose for a group picture the middle of the night and tortured since the start of after the diamond miner received three internationally-recognised certificates, ISO 9001-2015 (QMS), ISO 14001-2015 (EMS) and the year. – Staff Writer 45001-2018 (OHSAS) on October 10 2019 in Harare. Picture by Freedom Mashava Simbisa Brands targets regional growth Nelson Gahadza market share in Zimbabwe with the opening of Staff Writer 17 new counters between 30 June 2018 and 30 June 2019 to close the year with 209 counters. SIMBISA Brands (Simbisa) says it will focus on “This included the launch of the new Nan- regional expansion to counter subdued perfor- do’s ‘Casa’ casual dining format which has been mance on its largest market. met with enthusiasm from our customers and is Zimbabwe’s economy has been marked by in line with our strategy to grow our casual din- hyper-inflation, shortage of foreign currency, ing, upper LSM market segment.” acute power outages, price distortions, poor He said a total $18,4 million was outlaid infrastructure, service delivery and general eco- during the period under review for expansion nomic uncertainty. and maintenance of our existing counters to a Basil Dionisio, Simbisa’s chief executive, best-in-class standard. said notwithstanding the fiscal and monetary In Kenya, he said, customer counts grew 4 interventions by the government of Zimbabwe, percent compared to prior year on a same store the environment remains difficult. Penetrating regional markets is now the key focus of Simbisa Brands. basis and 8 percent compared to prior year when “The region is now the key focus. It is criti- including the new stores opened in the period cal that we scale up market reach in the region He also noted that regional operating mar- year-on-year as a result of the aforementioned under review, with the full financial impact to capture the hard currency we so require,” he gins improved from 7,3 percent in 2018 to 8,1 pressure on consumers which has dampened projected to come through from the first half of said during an analyst briefing for the compa- percent this year. consumer spend across the entire Zimbabwe FY2020. Kenya closed the year with 141 count- ny’s financials for the year ended June 30, 2019. “Growth in the regional business has been led consumer sector,” he said. ers in operation. He said during the period under review, cus- by Kenya where 18 new counters were opened Dionisio noted that inflationary-driven price “Kenya has been identified as a key growth tomer counts went down by five percent while between June 2018 and June 2019 including the increases saw average spend increasing 89 per- market in our regional business due to a grow- average spent was at 89 percent. new Grill Shack brand which was opened in cent compared to prior year. ing middle-class population, high and improv- In the region, customer counts grew six per- January 2019 and is performing above expec- Total revenue for the period in Zimbabwe ing consumer income levels and stability in the cent from prior year and average spend in hard tations,” he said. increased 79 percent to $255,1 million from trading environment,” Dionisio said. currency terms remained firm, despite currency The listed fast foods retailer’s boss also high- $142,3 million in 2018. According to Dionisio, In Zambia there has been marked improve- devaluation experienced in Ghana and Zambia lighted that focus in other regional markets has same store revenue increased 72 percent comment in business performance following the where the respective local currencies dropped been to streamline the business, defend market pared to the prior year. restructure in which the group acquired the mi- 13 percent and 29 percent against the United position and ensure existing operations generate “Efforts to defend the Zimbabwe operation’s nority interest to own 100 percent of the Zambi- States dollar. positive returns on investment. margins paid off and the gross profit margin im- an business. Dionisio said in Mauritius, Ghana, “Revenue generated by our regional opera- Simbisa’s Zimbabwean operations contrib- proved versus the prior comparable period as Namibia and DRC focus will be on enhancing tions increased 12 percent year-on-year in USD- uted 64 percent to group performance, but the did operating profit margins, which increased operating efficiencies and ensuring existing op- terms and 118 percent from prior year in Zimba- group is targeting to grow its regional contribu- from 16 percent 2018 to 20,8 percent in 2019,” erations generate positive returns on investment. bwe Dollar terms to $135,9 million,” Dionisio tions to over 50 percent. he said. [email protected] said. “Customer counts dropped five percent Dionisio said the group continued to grow See full interview on Page 11 The Financial Gazette October 10 - 16 2019 | Page 7 Page 8 | October 10-16 2019 The Financial Gazette Leader Page

News Worth Knowing Chaotic policies dragging Zim economy backwards SUCCESSIVE Zanu PF governments have since 1980 mastered the art of indicating right and turning left. However, under President Emmerson Mnangagwa, policy flip-flops have gone a notch up — they are not only legendary, but also ludicrous to say the least. In the past year, government has made various policy pronouncements and acted in a manner that is diametrically opposite to its policies. Officials — including Finance minister Mthuli Ncube and his Reserve Bank of Zimbabwe (RBZ) counterpart John Mangudya — told anyone who cared to listen that the local currency would only be reintroduced once the key economic fundamentals were in place. Sadly, we believed them. How wrong we all were. Within a few months, the discredited Zimba- bwean dollar was back on the streets. As if that was not enough, government banned the stability-inducing multiple currency system, which served the economy well for the past 10 years. Contrary to Mnangagwa’s “open for business” mantra, government also imposed a two percent tax on all electronic transactions at a time citizens were being urged to embrace a cash-lite society and ease the burden on cash MEN AT WORK: Eureka Gold Mine recently spent US$4.5 million on procurement of new equipment and is transactions. currently embarking on the de-watering of open pits. The Guruve-based mining firm is confident of producing The decision has not only made goods and services in the country expen- up to 200kg of gold a month by 2021. See story on p24 Picture by Freedom Mashava sive, resulting in skyrocketing inflation hovering at over 500 percent within 12 months, but also flies in the face of those willing to invest in the country's sickly economy. In his wisdom — or clearly lack of it — Ncube introduced the country to austerity measures in December last year. Exposing Eddie Cross’ big lie! He promised to rein in budget deficits, cut government expenditure and bring fiscal discipline. To date, government expenditure has ballooned while Zimbabwe’s budget deficit is expected to shoot through the roof by over $4 HEN one goes through Eddie That really smells badly and the min- Command Agriculture scheme. billion. Cross’ articles, there is one ister needs to come out clean as to his It is public knowledge and Cross Despite the creation of two distinct bank accounts for local and foreign Wthing that permeates through thinking behind not only such a pathetic knows it too well that the Command Agri- currency, through legal instruments, there are rumours that government is them all — a monolithic narrative that but corrupt appointment. Anyway that’s a culture scheme is not and has never been a raiding individual and company accounts for foreign currency and credit- suggests Finance minister, Mthuli Ncube case for another day. central bank programme but a government ing them with the domestic currency on the prevailing interbank rate — as the best thing that has ever happened Coming back to the subject of the day, initiative whose merits and demerits have though RBZ has denied this. to Zimbabwe and whose performance is Cross wants us to believe that we have a been a subject of debate since its inception. With all these well-documented policy inconsistencies, it then doesn’t exceptional to the extent of being magic crazy psychopath of a governor who just Therefore, to blame a single individual for come as a surprise that Zimbabwe finds itself in a hell-hole. from the “gods”. wakes up and prints money or make unso- a whole government programme smacks Yesteryear blunders are repeated while previously failed policies are By the same token, albeit in a com- licited payments for government to create of dishonesty on the part of Cross. dusted and tabled as new ones without any due diligence on why they ini- pletely opposite direction, Cross con- imbalances in the economy. It’s not the responsibility of the gov- tially failed. stantly seeks to paint the Reserve Bank of Like seriously? ernor of the RBZ to stop the Command Sound government policies are suspended not because of their demerits Zimbabwe (RBZ) in general and it’s Gov- Conveniently, Cross tries at every step Agriculture scheme, nor to publicly share to the economy but for political expediency. ernor, John Mangudya in particular, as to evade the reality that the RBZ could his views on the programme. Cross is free To restore the economy, the government needs begin to walk the talk on some centre of ineptitude that stands as the just be a banker to government and works to approach the relevant offices without improving the ease of doing business and policy consistency. It will also be biggest stumbling block to the all-know- under instruction or closes life-threatening blaming the “Banker to government”. crucial for government to decisively deal with corruption in the corridors ing professor’s efforts in taking Zimbabwe financing gaps that, you know who would Besides, the Finance minister sits in of power. from the proverbial Egypt to some sort of have left unattended to in pursuit of some Cabinet where government programmes Investors flock to countries whose administrations respect human and an imagined macro-economic Canaan. narrow academic aggrandisement at the are deliberated upon. Ncube has the priv- property rights. Resultantly, it comes as no surprise that expense of real livelihoods. There is a rea- ilege to raise his concerns regarding the Any committed movement in this direction by Mnangagwa's govern- almost all of Cross’ contributions to the on- son for that omission: seeking answers to funding or otherwise of the Command ment is one step closer towards attracting the much-needed foreign capital going macro-economic discourse in Zim- such questions would not fit into the narra- Agriculture scheme without having to use injection. babwe starts, include or conclude with his tive they want to feed to the nation. his proxy to fight against government pro- now predictable, though largely baseless, The big lie that Cross and certainly grammes. “Mangudya must go” mantra. his handlers are trying to feed the people Why, for example, would the Trea- Unfortunately, a good number of sury boss not budget for the financing of Southern Africa’s Leading Business and Financial Newspaper Zimbabweans, including some self-styled the summer crop or make the necessary Established 1969 pundits and economic commentators Open Forum arrangements to ensure that such activity Publisher: Modus Media seem to have gullibly fallen for the failed takes place? Cross, as a member of the politician’s stunts. While these stunts with MPC, is also in a position to seek clarity or EDITORIAL MARKETING appear to make sense at face value, they interrogate these issues from the governor General Manager - Marketing Editor-In-Chief & Chief Oper .zw easily crumble when subjected to even the Cuthbert Ndoro without choosing the megaphone route. Christopher Goko: gokoc@fingaz.co.zw most basic logic test. Parliament’s Public Accounts Com- Associate Editor Brand Executive - Advertising While Mangudya is certainly not a mittee (PAC) has raised concerns over Eric Chiriga: chirigae@fingaz.co.zw Edwin Vengesa: ev .zw saint and has his weaknesses just like all of of Zimbabwe is that a mere central bank the way the Finance ministry is incurring Senior Assistant Editor Senior Sales Executives us, I find Cross’ attempt to paint him as the governor can single-handedly create mac- debt and recently the High Court made a Chris Gumunyu: gumunyuc@fingaz.co.zw Christobel Washaya: cwashay .zw Managing Editor .zw author of the macro-economic problems roeconomic chaos while no one can do ruling on the legality of the two percent tax Tabitha Mutenga: mutengat@fingaz.co.zw .zw affecting Zimbabwe to be dangerously anything about it other than secretly em- (which was later regularised). Cross has shallow if not hopelessly dishonest. In the ploying hatchet men to write newspaper not taken his colleague to task over these Assistant Editor Sales Representatives - Harare John Kachembere: kachemberej@fingaz.co.zw .zw same breath, the former MDC official’s articles despising that governor. Indeed, issues. Markets Editor Frank Nyandoro: fny .zw attempt to hoodwink Zimbabweans into a nothing can be further from the truth than As long as it involves, the minister of Kudakwashe Chideme: chidemek@fingaz.co.zw Edreck: emudzingany .zw simplistic view that Ncube’s uncalculated such a lopsided narrative, especially after Finance he “hears and sees no evil”. To Group Digital Editor Sales Representative - Bulawayo and largely textbook austerity measures, noting that the position of governor in him, the minister is just being frustrated Paul Nyakazeya: nyakazeyap@fingaz.co.zw Clever Pedzisai: [email protected] that are reminiscent of the failed Econom- Zimbabwe is so subject to the whims of by the governor. It is undeniable that under Companies Editor ic Structural Adjustment Programme, are central government. This is the tragedy the Transitional Stabilisation Programme Shame Makoshori: makoshoris@fingaz.co.zw Brand Executive - Events an act of genius is pathetic. that comes with focusing on personalities – whose basic ideals mirrors that of eco- K .zw Chief Sub Editor Cross’ narrative becomes even more at the expense of objective analysis. nomic structural adjustment programmes Tawanda Chiwara: chiwarat@fingaz.co.zw Brand Executive - Subscriptions suspicious when one takes note of reports It is common cause that the Zimbabwe- – the economy has worsened, with rising Staff Writers Tatenda Taka: t .zw an economy has been facing deep-seated Omega Ukama: [email protected] that suggests the very same minister being inflation levels, worsening poverty levels Adelaide Moyo: [email protected] Subscriptions Representatives praised for intentions instead of delivery, problems for more than two decades now and a general reduction in gains made in Nelson Gahadza: [email protected] Ronald Madiviko: rmadivik .zw tried to appoint him as his special advisor and any attempt to personalise those prob- the previous decade in social sectors such Elizabeth Nyamaruze: eny .zw Freedom Mashava: [email protected] before being stopped by some astute Pub- lems and ascribe them to a single individ- as education and health. All these issues Production Supervisor Chief Executiv lic Service Commission (PSC) officials on ual, be it former president Robert Mugabe, seem to ignore the attention of Cross, Kudzai Rushambwa: rushambwak@fingaz.co.zw .zw grounds of procedure. Whilst the PSC was President Emmerson Mnangagwa, for- whose obsession with the governor and Bulawayo able to scuttle the appointment of Cross, it mer RBZ governors Leonard Tsumba or the central bank is now bordering on a Editorial, Advertising & Circulation 1st Floor, Princess Court, is clear that he continues to play a key role Gideon Gono and now Mangudya would “psychological case”. 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. of being the minister’s hatchet man against be at best delusional. It is therefore, clear that dishones- Tel: +263-242-781 572 Tel: (029)75873/75270 the unsuspecting RBZ Governor. Under both Presidents and different ty, political expedience and greediness Website: www Distributed by: ANZ The dots become even more connect- Governors, the blame-game has been has taken over the pursuit of diligence, ed when one starts to reflect on his recent irrational, one-sided, creates biases and integrity, and professionalism. This VOLUNTARY MEDIA COUNCIL OF ZIMBABWE The Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced appointments to the RBZ Monetary Poli- is not about seeking to understand what best sums up the behaviour of Cross. news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of cy Committee (MPC). It boggles the mind happened or taking responsibility. A case n Ndoro is a retired banker who Zimbabwe at: how he awarded with membership in the in point is Cross’ attempt to blame Man- writes here in his personal capacity. No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz revered MPC without a known track re- gudya for the imbalances resulting from Zimbabwe cord in economic research. the government’s model of financing the See full version on www.fingaz.co.zw The Financial Gazette October 10-16 2019 | Page 9

Mildred Chiri ‘Govt lacks internal controls’ Omega Ukama Senior Staff Writer

UDITOR-GENERAL Mildred Chiri says weak internal control systems in State enterprises have allowed Amismanagement and abuse of resources. This comes as her audit reports have over the years revealed various acts of negligence, outright incompetence and malfeasance at parastatals. “Because of weak internal controls, we have been encoun- tering the same challenges over-and-over again,” Chiri said at an accountant’s convention in the capital recently. “We have inadequate record-keeping; inadequate asset management and we also have the issue of revenue control where there are inadequate revenue collection systems. For example, you will find that some buildings where people rent from government, they are paying sub-economic rentals, while some leases have expired and some are not even paying because there are no follow-ups,” she said. In corporate governance, "internal controls" are processes and systems for assuring an organisation's objectives in operational effectiveness, efficiency and compliance with laws, regulations and policies. Chiri said her recent audits had also showed that “there is an absence of For example, you will find payroll reconciliation” in the gov- that some buildings where ernment. people rent from government, “You cannot they are paying sub-economic tell whether we rentals, while some leases have are paying to the right people be- expired and some are not even cause there have paying because there are no been discrep- follow-ups ancies here and there,” she said. This also comes as the struggling country’s wage bill has dragged its fiscus for years, amid reports of payroll mismanagement and fraud. Chiri also noted that some government departments had gone for years without boards posing a threat to corporate governance. “You will find that the permanent secretary ends up being in charge of many of these entities. “There, however, has been notable improvement in this space since the new State Enterprises Law was gazetted,” she said. The Public Entities Corporate Governance Act of 2018 states that the relevant minister of a parastatal should fill board vacancies within 90 days. The southern African nation has recently been ranked 160 out of 180 on Transparency International (TI)’s 2018 Corrup- tion Perceptions Index (CPI) and Harare’s efforts to stamp out graft and mismanagement have pretty much proved to be an uphill task. Chiri’s 2018 report showed that lack of due diligence in State entities resulted in cases of some payments being made without subsequent delivery. Notable cases included the Zimbabwe Electricity Trans- mission and Distribution Company, which she said, at the time, had not taken delivery of transformers nine years after paying US$4,9 million for them. “The same contractor was also paid … US$561 935 by the Zimbabwe Power Company … In addition, ZPC also paid ZAR196 064 in 2016 to York International for gas… (and) the Grain Marketing Board also made an advance payment for maize worth $1 014 163 in 2016..,” she noted. [email protected] Page 10 | October 10-16 2019 The Financial Gazette National News 'Zim economy to grow by 4,6pc'

Tabitha Mutenga cently warned that Zimbabwe was experi- Managing Editor encing severe economic difficulties. In 2019, severe exogenous shocks re- INANCE minister Mthuli Ncu- lated to climate change caused drought and be has set an ambitious economic a cyclone which compromised agriculture Fgrowth target of 4,6 percent in 2020 activities and electricity generation with ex- despite the country slipping into recession tended effects on other sectors, forcing the this year. economy into recession. Zimbabwe is expected to register a neg- Negative growth in agriculture is ex- ative growth of six percent in 2019 on the pected to be at least 16,3 percent in view back of a poor agriculture season character- of unfavourable 2018/19 weather condi- ised by a severe drought and Cyclone Idai tions and mining is expected to fall by 12,3 in some parts of the country, as well as the percent. incessant power cuts. Export earnings from minerals for 2019 In a pre-budget strategy paper ahead of have so far plunged, missing government’s his budget statement, Ncube said he was US$4 billion target, owing to various pro- confident the economy will rebound in the duction constraints, as well as increased next few months. side-marketing activities and smuggling as “The economy is, therefore, projected the economic crisis deepens. to underperform by as much as –3 percent The mining sector registered a 15 per- to –6 percent in 2019. The sectors projected cent decline in mineral production in the to slow down include electricity and water, first quarter of 2019 due to the depressed agriculture and mining, with all other sec- operating environment, as the country was tors being also affected through close link- targeting a 28 percent increase in mineral ages. export earnings to US$4,2 billion from “However, in 2020, the economy is US$3,2 billion last year. projected to turn around building on the “Consistent with projected GDP success of the ongoing reform initiatives growth of 4,6 percent and nominal GDP of and as a result, the economy is projected to $20,3 billion in 2020, revenues are expect- grow by 4,6 percent in 2020,” he said. ed at $24,8 billion (11,8 percent of GDP), The growth is premised on improved while expenditures are estimated at $28,5 rainfall season which should enhance ag- billion (13,6 percent of GDP),” Ncube said. riculture production and electricity gener- Revenue collections to year end in ation with trickle-down effects to all other 2019 are projected at $14,1 billion, while sectors, recovery in aggregate demand, expenditures are estimated to reach improved foreign currency availability and $18,6 billion, to give a modest deficit of improved macro-fiscal stability and busi- 3,3 to 4 percent of GDP in line with the ness confidence. Staff Monitoring Programme and the With the fourth industrial revolution already underway, many jobs will become redundant while new Ncube’s surprise focus comes at a time Transitional Stabilisation Programme. ones emerge. Artificial intelligence has over recent years been the major cause of job losses inmanysec- the International Monetary Fund (IMF) re- [email protected] tors. The above study focuses on India, which apart from being one of the fastest growing economies, has a population of 1.37 billion . Infograph by Darius Mutamba The Financial Gazette October 10-16 2019 | Page 11

Plummeting Zim dollar a headache

IMBISA Brands, which currently operates 438 quick service restaurants in nine countries across Africa, is mulling aggres- S sively expanding into the region to counter Zimbabwe’s deteriorating economic conditions. Our reporter Nelson Gahadza (NG) this week spoke to Basil Dionisio (BD), the group chief executive, as well as Baldwin Guchu (BG), the group finance director, to understand how the company has managed to navigate through the environment and its future plans. Below are the excerpts of the interview.

NG: How have you fared in the strict cost-control strategy has also current operating environment? been key to maintaining margins BD: Economic challenges have in the financial year under review continued in our largest market, and management have performed Zimbabwe. The environment has commendably in this regard. been marked by hyper-inflation, Customer counts dropped five shortage of foreign currency, acute percent year-on-year as a result of power outages, price distortions, poor the aforementioned pressure on infrastructure, service delivery and consumers which has dampened general economic uncertainty. consumer spend across the entire Notwithstanding the announced Zimbabwe consumer sector. fiscal and monetary interventions by Inflationary-driven price increases the government of Zimbabwe, the saw Average Spend increase 89 Basil Dionisio Baldwin Guchu environment remains difficult. percent compared to prior year. Total Management, with assistance from revenue for the period increased that inflation has put pressure on the outlet expansion? launch of our new dial-a-delivery the board, has proactively sought to 79 percent to $255,1 million. Same currency. BD: In Zimbabwe there are a lot of mobile application in Zimbabwe and manage these challenges, making bold store revenue increased 72 percent As a result, a lot of people and shops that we are opening. We have Kenya in 2019, our focus in the 2020 decisions along the way. Despite these compared to prior year. suppliers are pegging their prices in a good pipeline of shops and we are financial year will be to further develop challenges, the group Customer US dollars and each time we engage opening countrywide. and grow our delivery business in has remained resilient counts in them, they rate us. NG: Within the region which order to tap into a previously under- and continues to pursue the regional So from an overhead pressure point country has the strongest contribution serviced online market and improve a growth strategy in all business grew of view, the currency depreciation is a to the group? on the convenience of our customers’ its markets. 6 percent from major factor on our costs. However, BD: Growth ordering NG: Would you ...in an prior year and we have always engaged with our in the regional experience. provide a general average spend suppliers to negotiate the best terms business has This will overview on business environment in USD-terms and conditions. been led by be achieved performance for the remained firm, NG: What is your monthly foreign Kenya where 18 through the roll year ended June 30, where you are despite currency currency requirement? new counters out of our mobile 2019. constrained, devaluation BG: We require in excess of were opened ...from an overhead application BG: The experienced US$700 000 to US$900 000 in a between 30 pressure point of through the deteriorating either you are in Ghana and month to run our cost of sales. June 2018 and remainder of economic conditions Zambia where So in an environment where you 30 June 2019 view, the currency our markets in Zimbabwe have getting that the respective are constrained, either you are getting including the and exploring resulted in erosion of money off the local currencies that money off the interbank market, new Grill Shack depreciation is a opportunities consumer earnings dropped 13 or internally, its difficult. brand which to include third which in turn have interbank market, percent and As you know we have a Zimbabwe was opened in major factor on our party delivery negatively impacted 29 percent Tourism Authority (ZTA) license, we January 2019 and costs...” services. our sales volumes and or internally, its against the US are allowed to get US dollars from is performing We have seen a general trend of dollar over the tourists, so in areas like Victoria above adopted a customer down trading. difficult...” financial year Falls and Beitbridge, we are getting expectations. proactive strategy to manage the High and escalating under review. good volumes of US dollars and this The focus in our other regional specific economic challenges inflation and foreign Revenue is helping us in our foreign currency markets has been to streamline the pertaining to the Zimbabwe QSR currency exchange rates are putting generated by our regional operations requirements. business, defend our market position market. downward pressure on gross profit increased 12 percent year-on-year NG: To what extent has the and ensure existing operations This involves putting in place and operating margins. The Group’s in USD-terms and 118 percent from interbank market helped you access generate positive returns on robust measures to hedge against response has been to establish prior year in Zimbabwe Dollar terms foreign currency? investment. inflation and currency volatility and an optimal pricing strategy with to $135,9 million in 2018. Regional BG: It is a mixed bag. But what Our medium-term target is that we a pricing strategy to optimize revenue controlled price adjustments necessary operating margins improved from 7,3 we can say is that we have very strong want it to be 50:50 between the local while maintaining margins. to maintain our margins whilst also percent in 2018 to 8,1 percent in 2019. banking partners. Therefore, in terms market and the region within the next We will continue to grow the keeping our prices competitive and NG: What has been the impact of prioritisation, each time they have three years. Currently, 65 percent of market through a controlled roll out of affordable to an increasingly price- of the trading currency on your currency, they call us. We have a 30- the market is in Zimbabwe. only ‘grade A’ sites that will optimise sensitive market. operations? year relationship with banks and we NG: How successful has your dial the allocation of limited foreign Disciplined cost of sales BG: Because the currency is do a lot of banking with them. a delivery concept been? capital resources and maximise management and implementing a depreciating, you will appreciate NG: What is your thrust in terms of BD: Following the successful shareholder returns.

OGAAT Hulett, which has been bat- bwe, is also considering selling assets, rais- tling to restore investors’ confidence ing capital through a share sale, or a com- T after announcing in April it would Tongaat postpones results bination of the two in order to reduce the have to restate prior financial reports, has group’s debt, it said. postponed its results statement for the latest Tongaat said debt restructuring talks with full year, it said on Monday. South African and Mozambican creditors are Audited financial statements for the year progressing well, and that it is looking to to March 31 will not now be available by the conclude agreements as soon as reasonably previously anticipated date of October 31, possible. Tongaat said in a statement, adding that it The firm said earlier this year that it will update shareholders on a new release would restate prior financial information date on November 18. after a formal review revealed accounting Chairman Louis Von Zeuner said that the practices that required remedial action. process of identifying the restatements had A forensic review by Pricewaterhouse- been “thorough, with the right level of gov- Coopers has been completed and the final ernance”. “We are cognisant of the need to report has been issued to law firm Bowman provide stakeholders with reliable financial Gilfillan, Tongaat said, adding that an over- information,” he said. Tongaat owns sugarcane estates in Zimbabwe view of the report will be provided to share- “The board, together with management, holders “at an appropriate time”. continues to relentlessly drive the turnaround plan with the preservation of shareholder The sugar producer, which has operations — Moneyweb value being the key priority,” he added. in South Africa, Mozambique and Zimba- October 10-16 2019 Page 12 Companies&Markets The Financial Gazette STARAFRICA TO BOOST EXPORT VOLUMES — 13 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) STARAFRICA Corporation says it will boost export sales volume to compensate for potential revenue that was lost due to stock outs that were influenced by power shortages. 0,06% 1,88% 1,34% 0,05% 0,58% 11,0559 12,52 61,00 17 905,06 1 653,68 Listed firms adopt Padenga goes hi-tech Omega Ukama survival strategies Senior Staff Writer ADENGA Holdings (Padenga), Zimbabwe’s largest crocodile skin producer, says it plans to pursue scien- Ptific methods to improve product quality. Adelaide Moyo Themba Sibanda, the listed firm’s board chairman, said Staff Writer the group has already established a research laboratory facility at its crocodile farms. IMBABWE Stock Exchange (ZSE)-list- “Management will pursue advanced scientific initiatives ed firms are adopting new expansion and relevant to further improving skins produced and fully un- Zdiversification strategies to survive the derstanding the origin and control methodology for defect country’s highly volatile and harsh operating en- responsible for reducing skin quality,” he said. vironment. “The facility will enable evidence-based research to This comes as the southern African country enhance good animal health and husbandry operations that is mired in its worst economic crisis in a decade, advance customer satisfaction with the products produced.” with triple-digit inflation, rolling power cuts and Last year, the company also completed the construction shortages of United States dollars, basic goods, of a stand-alone research trial facility to allow for focused medicines and fuel. and applicable trials on disease transmission and skin qual- This has resulted in some companies scaling ity. down operations with the majority adopting strat- “There is positive improvement evident from these ef- egies that will ensure their survival and balance forts and we anticipate this to be reflected in the finished sheet preservation. skin quality grades towards in the near future,” Sibanda Turnall Holdings, which manufactures build- said. ing materials, said it is now focused on the re- Padenga, which recently diversified into gold produc- gional market and expects to export to South Af- tion, is expected to pursue initiatives implemented in the rica and Mozambique in order to generate foreign Turnall plans to export its products to South Africa and Mozambique. first half of the year within both crocodile and alligator currency. operations. Sibanda said the initiatives will ensure that the “The group expects exports to increase sig- aging foreign creditor positions, securing ad- supporting viability and growth of the milk sup- company operates effectively and will meet the end-con- nificantly compared to the previous year,” the ditional inventory as well as managing gearing ply chain as an import substitution and export sumer's expectations of good quality, good husbandry firm said in its financial results. levels and this will be done in tandem with envi- growth strategy. practice and compliance with animal welfare standards and National Tyre Services said it is mulling ven- ronmental changes,” Ngwerume said. Rainbow Tourism Group (RTG) said it will norms. turing into the property sector as a way of diver- Dawn Properties said it is banking on proper- continue to pursue asset-light growth which does And the company’s initiative to design and install a sifying its revenue streams and create value for ty development as the firm starts to roll out more not require fresh investment. wastewater treatment plant in Zimbabwe to process pen shareholders. projects, good performance from the timeshare “The model leverages on the immense brand discharge water is “progressing according to plan”. Luke Ngwerume, Axia Corporation (Axia)’s rentals and an increase in rentals from African value of the company in Zimbabwe and beyond. “The design proposal has been approved by manage- chairman, said the company is looking into ex- Sun. RTG will grow the existing rooms portfolio as ment and efforts are underway to obtain approval from the pansion projects, which will create and preserve Hospitality group African Sun said it has in- well as venture into new revenue streams, whilst relevant authorities to commence the project,” said Siban- value for all stakeholders, even when the mac- tensified its investment in sales and marketing exploiting the benefits of innovation on the ICT da. ro-economic environment is full of pitfalls. initiatives to support and promote international front,” the firm said. Meanwhile, the company’s profit before tax for the six “Given the current economic environment, and regional tourism as the hotelier anticipates Mashonaland Holdings said it will continue months under review amounted to $266 million against the sourcing of local funding as well as foreign the domestic market to remain subdued. looking for portfolio diversification opportuni- $7,75 million for the prior period. currency to procure inventory and settle foreign “In addition, we will continue leveraging our ties through acquisition of strategic land banks in “The unseasonal increase in profit results from fair val- suppliers remains a priority for the group as a way foreign currency generation capacity to invest in emerging development zones around the country. uation of biological assets in line with the change in the to manage foreign currency exposure,” he said. our refurbishment programme to ensure that our General Beltings said despite policy flu- functional currency. We sold 17 722 skins compared to 19 The speciality retail and distribution group’s hotels are in line with international standards and idity and a rising inflation, it is expected to 863 skins in the comparable period in 2018,” he said. chairman also indicated that Axia will continue comply with franchisors’ brand standards where withstand the headwinds to preserve value The Padenga boss also noted that the company’s solar to evaluate investment opportunities with export required,” the firm said. while taking advantage of any opportunities project continued during the period under review with wir- potential even if they are outside its mandate. At the same time Anthony Mandiwanza’s that may arise in the key markets it serves. ing at the second phase having been completed. “The group’s key focus areas will be on man- Dairibord Holdings (Dairibord) is focusing on [email protected] [email protected] Page 13 | October 10-16 2019 The Financial Gazette Companies & Markets Starafrica to boost export volumes Nelson Gahadza “It takes time to develop export markets, so with ZETDC in August 2019,” he said. Mutyiri said under Staff Writer as time goes on we should be able to do 20 per- the agreement, the company is paying the bills at higher cent but by year end we are aiming for 10 per- rates in local currency and has got a dedicated line that is TARAFRICA Corporation (StarAfrica) cent,” he said. supposed to be shielded from the load shedding. says it will boost export sales volumes to He added that the company is exploring mar- At Country Choice Foods, volumes were negatively im- Scompensate for potential revenue that was kets in Tanzania and Kenya and expects to start pacted by continuous shrinking of disposable incomes and lost due to stock-outs that were influenced by exporting there by next year. preference for basic consumer products during the period power shortages. “To date, export tonnage into the region under review. Regis Mutyiri, the group’s chief executive, stands at around 700 tonnes compared to 1 900 “Uptake from bakers and confectioners slowed down as said the sugar processor has since secured a con- tonnes at the close of 2018 financial year,” he these customers were suffering from insufficient raw mate- tinuous power supply agreement with the Zim- said. rials like flour and reduced production levels due to power babwe Electricity Transmission and Distribution In a trading update for the five months to Au- outages experienced in July 2019,” he said. Company (ZETDC). gust 2019, Mutyiri said sales volumes at Gold- Mutyiri said while the company continues to pursue “The company has already started exporting star Sugars suffered from product shortages fol- new products, focus is currently directed at exports whose granulated sugar and Country Choice Foods lowing prolonged power outages in July which inflows will be critical for accelerated new product devel- products to regional markets and we are expect- curtailed production, but despite that, volumes opment. ing an acceleration of volumes in this market were ahead of the comparative period. Mutyiri also noted that discussions are ongoing with segment to recover lost revenues,” he told share- “The loss of sales experienced in July and the remaining scheme creditors with a view to having out- holders at the company’s annual general meeting part of August 2019 due to power outages, re- standing scheme of arrangement debts addressed before the recently. versed the headway made by the group and re- expiry of the secondary scheme of arrangement in 2022. Mutyiri said in addition to traditional markets duced the period’s performance to 90 percent of At as the end year ended March 2019, about 72 percent in Botswana and South Africa, the company has the comparative period last year. of creditors had exercised their conversion option. expanded market reach in new territories like Regis Mutyiri “Power supply to the plant has improved sig- [email protected] Democratic Republic of Congo (DRC). nificantly upon the conclusion of an agreement

RBZ says the total value of transactions processed through the National Payment System surpassed $10 billion. NPS transactions hit $10 billion Paul Nyakazeya Group Digital Editor

HE total value of transactions processed through the National Payment System (NPS) breached the T$10 billion mark for the first time since the country adopted mobile money as the preferred form of transacting in response to persistent cash shortages. According to latest figures from the Reserve Bank of Zimbabwe (RBZ), NPS stood at $10,18 billion, during the week ending September 13 from $9,82 billion registered in the previous week ending September 6. The increase was due to transactions processed through the Real Time Gross Settlement (RTGS) system which increased by 9,72 percent, to close the week under review at $6,5 billion. “NPS transaction values were distributed as follows: RTGS, 64,23 percent; mobile, 26,3 percent; Point of Sale (POS), 9,34 percent; Automated Teller Machine (ATM), 0,12 percent and cheque, 0,01 percent,” said RBZ. The total volume of transactions processed through the NPS however, decreased by 13,23 percent to 44,88 million transactions from 51,72 million, during the period under review. Mobile-based transactions dominated NPS transaction volumes, accounting for 83,41 percent; POS, 16,02 percent; RTGS, 0,51 percent; ATM, 0,06 percent and cheque, 0,01 percent. Most service providers in both the public and private sectors have adopted mobile money as a means for processing payments, placing the channel as the most common alternative for the country’s unbanked population, largely dominated by the informal sector. Meanwhile RBZ said average deposit rates for savings deposits, deposits of one-month and three-month tenors remained unchanged at 3,91 percent, 4,87 percent and 4,81 percent, respectively. Commercial bank-weighted lending rates for individual clients decreased by 0,34 percentage points, to close the week under review at 14,87 percent. Weighted lending rates for corporate clients also increased by 1,91 percentage points to close at 19,78 percent during the same week. [email protected] The Financial Gazette October 10-16 2019 | Page 14 Companies & Markets Zimre, investors in deadlock Nelson Gahadza Information at hand shows that the group is now Staff Writer working on internal solutions and has so far raised US$4 million of the US$10 million required in the first phase of IMRE Holdings (Zimre) says it terminated its pro- the capitalisation project. posed $10 million fund-raising initiative after the The Emeritus International structure is expected to Zcompany encountered a valuation deadlock with strengthen the market position of the reinsurance oper- potential funders. ations and position them for growth as well as allowing Stanley Kudenga, Zimre chief executive, said the di- the operations to benefit from economies of scale and versified group would have lost a majority stake in its re- scope once it is well capitalised. insurance unit, Emeritus International, had it gone ahead Emeritus Re International recently received a credit with the transaction. rating upgrade from the Global Credit Rating agency “Using their valuations and in terms of what we want- which shows the company now has an enhanced claim ed to raise we could have gone below 51 percent and that paying ability. is where we got stuck,” he said. Leo Huvaya, the company’s managing director, told The group, which has been trading under a cautionary, Zimre rebranded its reinsurance operations to Emeritus International in 2018. Financial Gazette that the rating upgrade has been a re- last week notified the withdrawal of the cautionary amid sult of the group’s restructuring and rebranding which indications that the company has already started working Zimre which completed consolidation ment on the Botswana Stock Exchange has strengthened the balance sheet. on internal capital raise solutions. and rebranding of its reinsurance opera- (BSE). He noted that the restructuring exercise saw the group Apart from Emeritus Reinsurance in Zimbabwe, oth- tions to Emeritus International registered The capital raise was to be conducted disposing off Zimre Centre building, and used the pro- er operations in the region are in Malawi, Mozambique, in Botswana in 2018, was targeting to on a phased approach with the initial raise ceeds to construct the Sawanga Mall in Victoria Falls. Botswana and Zambia. raise $30 million through a private place- of $10 million. [email protected] Lafarge eyes expansion

Omega Ukama Senior Staff Writer

AFARGE Ce- ment Zimbabwe L(Lafarge) says it has plans to upgrade its manufacturing plant to improve production capacity and efficiency. Kumbirai Katsande, the company’s board chairman said the business had already invest- ed $2,7 million in new plant and machinery upgrades. Kumbirai Katsande “The business is working on a project to upgrade its cement milling and Dry Mortar Mix manufacturing platforms,” he said in a statement accompanying the company’s results for the six months to June 2019. “This will significantly improve production capacity and efficiency, particularly for high strength cement. Both projects are scheduled to kick off in the third quarter and will be completed over the next 24 months,” he said. Katsande said the project had been awarded “Na- tional Project status”, adding that the company was working closely with the Reserve Bank of Zimbabwe to secure adequate forex for the procurement of the imported components. “The business will continue to focus on improving plant reliability and has scheduled major shutdowns in order to fully renew its plants and ensure that cement demand can be adequately serviced,” the chairman said. Meanwhile, the company anticipates a decline in full-year volumes as demand remains constrained due to the deepening liquidity crisis being experienced in the market. During the first half of the year sales volumes declined by 3,4 percent to 162 000 tonnes. “Although full-year volumes are expected to remain behind prior year due to the liquidity challenges prevailing in the market, demand for cement should remain stable for the rest of the year,” Katsande said. “The deteriorating exchange rate will result in increased costs for the business,” he said. During the period under review, the company achieved revenues of $87 million compared to $33 million achieved in the first half of 2018. Gross profit came out to $36,5 million, which represents 42 percent of sales compared to the prior comparative period’s 33 percent. This all culminated in an after-tax profit of $2,9 million from a loss of $1,8 million in the prior year. [email protected] Page 15 | October 10-16 2019 The Financial Gazette Companies & Markets Ethiopian Airlines eyes SAA stake

THIOPIAN Airlines Group would consider buying but to allocate additional funds to debt-ridden companies, a stake in South African Airways (SAA) — should from power utility Eskom to the South African Broadcast- ESouth Africa decide to sell equity in the struggling ing Corporation. State carrier. Ethiopian is Africa’s biggest aviation success story, with SAA hasn't made a profit since 2011 and last week de- main rivals SAA and Kenya Airways struggling with loss- layed the release of annual earnings due to its precarious es and relying on government support. The Horn of Afri- financial state. ca carrier has looked to invest in other airlines around the While the ruling African National Congress has fre- continent, including new carriers planned for Ghana and quently said that it would consider selling equity in the Zambia. airline, there's been no visible strategy for such a plan, "We have recently signed a shareholders agreement with said Tewolde Gebre Mariam, the chief executive officer of the Ghanaian government," Tewolde said. Ethiopian, Africa's biggest and only consistently profitable "Hopefully it will be up and running in the next six airline. months". "We are interested in supporting South African Air- In contrast, SAA is cutting routes and needs R2 billion ways," he said in an interview at Ethiopian's head office alone to fund working capital for the remainder of its fi- near Addis Ababa airport. nancial year through March 2020. The airline has been If South Africa asked Ethiopian to buy a stake, "we SAA has not made profit since 2011. held back by mismanagement and corruption, particularly would consider it," Tewolde said. during the scandal-hit presidential tenure of Jacob Zuma. Ethiopian and SAA are already partners in the Star Al- chronic debt problem, with banks withhold- replacement for Jarana. African operators now have 20 percent of the continent's liance. ing further loans until the airline can pres- The parlous financial state of South market compared with 60percent two decades ago, mainly The group had discussions with SAA's former Chief ent a repayment plan for R9,2 billion ($611 Africa's weak state-owned enterprises is due to the growth of Gulf-based carriers, Tewolde said. Executive Officer Vuyani Jarana before his resignation in million) of borrowings. weighing on the economy, with Finance "It's a continuous decline," Tewolde said. May, Tewolde said. A deal may involve help with SAA's SAA hasn't yet appointed a permanent Minister Tito Mboweni having little choice – Bloomberg

Sibanye wants to separate its gold assets to a subsidiary of the holding company. Sibanye plans to list gold unit

IBANYE Stillwater — the world's biggest producer of platinum, the second-largest palladium pro- Sducer and a major gold miner – plans to restructure its holding structure. It wants to separate its gold assets to a subsidiary of the holding company. This effectively requires a new holding company to be listed with the same shareholders and exactly the same shares in the new holding company to be issued to existing shareholders. The new holding company will be called Sibanye-Stillwater and the gold subsidiary will retain the name Sibanye Gold Limited. The current corporate structure of Sibanye Gold has the current South African gold assets at holding company level. With the growth of the company the platinum group metals (PGMs) acquisitions of Aquarius, Rustenburg Platinum, Stillwater and more recently Lonmin have been incorporated as subsidiaries of the holding company. "To ensure structural flexibility and efficiency it is deemed appropriate to have the gold assets included as a subsidiary of the holding company," Sibanye states in an announcement made on Friday. The transaction entails that Sibanye-Stillwater will acquire all of the Sibanye Gold shares, with each shareholder receiving one Sibanye-Stillwater share for each Sibanye Gold share. Sibanye Gold will then become a wholly-owned subsidiary of Sibanye-Stillwater. The Sibanye-Stillwater shares will be listed on the main board of the JSE and the Sibanye Gold shares will be delisted. Sibanye Stillwater's local gold mines reported a R2,9 billion loss (before interest, taxes, depreciation and am- ortisation) following a lengthy strike. It more than can- celled out the R2bn in earnings delivered by its local platinum mines. – Fin24 The Financial Gazette October 10-16 2019 | Page 16 Companies & Markets Zimplats shells out US$45m dividend Nelson Gahadza In 2013, Zimplats refused to foot a $17 erment Act, which would be consistent with the Staff Writer million consultancy bill levied by Brainworks “Zimbabwe is Open for Business” thrust. Capital who were contracted by then dissolved “However, the law is yet to be amended in IMPLATS, the country’s largest platinum producer, National Indigenisation and Economic Empow- line with these pronouncements and Zimplats paid a final dividend of US$45 million for the year erment Board (Nieeb) to structure and facilitate will continue to engage the government for clari- Zended June 30, 2019, reflective of the group’s strong the empowerment deal. ty on this matter,” said Mhembere in the group’s profit position achieved during the year. Mhembere said following the amendments integrated 2019 annual report. Alex Mhembere, the group’s chief executive, said the made by the Finance Act, 2018, the government He said Zimplats continues to support the dividend equates to US$0,42 per share higher than US$0,19 made a number of public pronouncements that government in its endeavours to empower indig- per share declared during the interim period to February 20, reflected new thinking, indicating its intention enous Zimbabweans and to develop the econo- 2019. to repeal the 51 percent indigenous equity re- my. This was after the platinum producer’s profit for the quirement for the diamond and platinum mining Mhembere said the group has put in place an period grew more than 5 387 percent to $114,86 million sectors. employee share ownership plan which holds 10 compared to $6,64 million same period in 2018. Finance Minister Mthuli Ncube, in his 2019 percent of the issued shares in the company. The group’s revenue in the period under review, how- mid-year Budget Review and Supplementary “This was done through the establishment ever, grew marginally by 8,32 percent to $630,98 million Budget, announced that platinum and diamond of a trust, Zimplats Employee Share Ownership compared to $582, 54 million during 2018. miners would now be removed from the reserve Trust (ESOT), which holds the shares for the Meanwhile, Zimplats says it will continue to engage list and essentially that the 51 percent-49 percent benefit of the participating employees,” he said. government on its indigenisation plan after platinum and shareholding structure would therefore no longer He added that the ESOT was established in diamonds were removed from the reserve sector list. be required for platinum miners. Zimbabwe and its beneficiaries are the perma- The plan, which was first mulled in 2012 and is yet to “The minister stated that the Indigenisation nent employees, excluding the executive direc- be approved, has been subject to confrontation with gov- and Economic Empowerment Act would be re- tors and the company secretary. ernment. Alex Mhembere pealed and replaced with an Economic Empow- [email protected] Foreign participation on ZSE declines Paul Nyakazeya Group Digital Editor

OREIGN investor participation on the Zimbabwe Stock Exchange (ZSE) weakened in September, accounting for F16 percent of total trades from 34 percent recorded in Au- gust. A barometer of investor sentiment — the ZSE has been drifting lower in recent months as foreign investors, who have previously dominated the market, continue to leave in droves. In its monthly review for September, MMC Capital said foreign sellers marginally outweighed buyers, with the ratio of foreign sales to total turnover at 16 percent compared to 28 percent in August against foreign purchases to turnover ratio of 15 percent from 40 percent in August. “Overall investor participation has been trending south- wards, closing the month of September at 16 percent, compared to a high of 82 percent witnessed in February 2019,” said MMC Capital.

Foreign participation was mostly concentrated on Delta Corporation 29 percent, Dawn Properties 16 percent, Seedco 15 percent and Old Mutual 14 percent on the sell side. Most interest from buyers was concentrated on Old Mutual 47 percent, Delta 28 percent, Innscor Africa 5,7 percent and Simbisa 3,5 percent. Traded volumes on the ZSE for September increased by 184 percent from $117,92 million shares traded August to $335,37 million. Resultantly, total turnover for the month came in at $166,56 million up 53 percent from $109,03 million recorded in Au- gust,” MMC Capital said. The market value of listed companies for the month further strengthened, adding 40 percent to $30,53 billion on the back of significant jumps in prices during the second week of Sep- tember. Significant price increases were witnessed in Simbisa, OK Zimbabwe and PPC, with the companies’ market values more than doubling by the end of September. Topping the gainers list was Simbisa, adding 167 percent to 146,95 cents. OK Zimbabwe and PPC gained 139 percent and 102 percent to close the month at 70,37 cents and 424,75 cents respectively. Proplastics and Bindura prices at 70 cents and 18 cents were 84 percent and 71 percent higher respectively. “A sectorial analysis shows that retail counters outshined other sectors in the month buoyed by gains in OK Zimbabwe,” said MMC Capital. On the shakers side, Afdis lost eight percent in the month to close at 165 cents. Rio ZIM and TSL shed off two percent apiece to settle at 218c and 74c respectively. Meanwhile MMC Capital said the manufacturing sector’s outlook remains gloomy in light of the persistent economic headwinds. [email protected] Page 17 | October 10-16 2019 The Financial Gazette Motoring Audi Q8 55 TFSI quattro Does it run rings around its rivals?

TOP GEAR with Richard Wiley

y personal preference in motoring is driven by a belief that smaller is better but I do Mhave to confess to enjoying the odd fling in a sizable SUV ‘cos there’s something innately satisfying about looking down on those around you. The relatively fresh Audi Q8 is just such a vehicle. It’s quite a bruiser in dimensional terms – something you get to know about when it comes to cleaning the roof – and it does demand something of a climb to get behind the wheel. But hold on a mo as this is not a blue-blood SUV in the mould of its square-jawed blood brother, the 7-seat Q7 that spends a lot of its time winning comparative tests in the UK. It’s actually a coupe-inspired SUV, a more rakish take originally cooked up by Audi’s primary rivals, BMW and Mercedes, whose X6 and GLE Coupe derivatives look positively overweight around the Sporty looks and huge alloy wheels for the Q8. posterior compared with the altogether more slinki- ly-wrought Audi. That Beemer from the rear looks like a mobile sumo wrestler by comparison, an ob- servation that gains traction when you discover how many covetous eyes surreptitiously focus on the Q8 when it’s caught at the inevitable red light. It’s definitely endowed with a pleasing blend of muscle, curves and carefully crafted creases that are given added sparkle by a coat of paint that has to be the envy of the industry. The deep blue example on test positively glowed, an impression further mas- saged by astonishingly close and even panel gaps. As is becoming common practice these days, the Q8 shares its platform with SUV models from Porsche, VW, Bentley and Lamborghini but happily, the designers of each have ensured that brand differentiation is obvious, albeit that Audi has introduced new elements especially obvious in the more complex grille shape and in the sweeping rear lamp clusters that play all sorts of alluring games when they are activated. Collectively, all the massaging works as this Audi is one good looking beast, attest- ed to by my opposite neighbour’s regular forays to make a closer inspection. The interior, as is expected from any model emanating from Ingolstadt, is beautifully executed with near-magical precision using super-high-quality materials, albeit that the lowest regions are not Simple elegance marks out new Audi design language. Nicely resolved rear end styling. the ultimate in tactile pleasure. The fragrance that Audi “engineers” into its interiors is appealing quite beautifully but with sufficiently low intensity tive figure, I am sure) and 500Nm of twist which rience strongly suggests that anyone who will dare enough to encourage a few deep intakes to allow to not be a distraction for the driver. combine to provide the most relaxed shove you can to venture off-road would be well advised to pick the nostrils to soak up the aroma, but it’s the eyes In terms of space, the Q8 barely suffers from imagine. On the cruise, that engine and the 8-speed the air option as the system deals with corrugations that will be drawn unerringly to the all-new dash adopting a sloping roof and is much less claus- torque converter auto are mouse quiet. Creamy is quite brilliantly. execution which takes many leaves out of the A8 trophobic in the rear than the X6 or GLE Coupes. the most appropriate word to describe the delivery Audis haven’t always been blessed with the luxury saloon’s book. While the Q7’s spatial expanses cannot quite be as the big SUV coupe wafts along with disdainful most precise power steering with critics referring to There’s a minimalist look to focus on that’s matched, four adults will find plenty of lounging ease, but apply some welly and the Q8 gathers up an imprecise, wooden feel being part of the DNA, sourced in the use of two large hi-definition screens space and be seated high enough to look down on its body colour skirts with alacrity to despatch the but happily, those days are long gone. All recent Au- endowed with haptic feedback that provides audible lesser mortals casting envious upward glances. The 0-100km/h run in 5.9s. dis that have passed through my hands have been proof that a command has been executed. While the huge and expandable carpeted boot will also accom- Under the whip, that V6 emits a delicious mildly much more responsive and nicely weighted, and the upper screen focuses on infotainment and informa- modate most of madame’s shopping bags thanks in off-beat thrum so typical of the best sixes but nev- Q8 fits that mould. tion including nav, the lower screen’s primary func- part to the fact that an inflatable mini spare is hidden er sounds as though it’s trying too hard. Part of the A glance through the huge multi-spoked alloys tion is to tell the climate control unit how to keep the under the boot floor, itself an admission that the Q8 credit must go to the 8-speed auto, which while its reveals calipers so muscular that even Mike Tyson occupants super-comfortable. There’s also a digital is going to spend most of its time on tar. actions are influenced by which driving mode is se- would back away, and that tells you that stopping writing pad to accept destination inputs scrawled As you have the right to expect, equipment lev- lected, and rather naturally by whether you choose power is not a problem at all. Less charming was the with a finger. els are super-high and include every electronic aid to use the paddle shifters, changes cogs positively over-boost in evidence at low speeds, a condition On first acquaintance, it’s a bit daunting to get known to mankind. Aside from the obvious, there’s and quickly and with commendable smoothness that demands a practised foot to avoid snatchiness the hang of all the functions awaiting a touch in- keyless entry and start, more air bags than you’ll even if downshifts at lower speeds can sometimes when coming to a complete halt. put, but with familiarity comes greater confidence, find in the House of Commons, a sliding rear seat, feel a trifle uncertain. Word has it that diesel power will soon be avail- something that’s enhanced by the fact that the pri- park sensors front and rear, huge door pockets, a sun Naturally, being an Audi, all four wheels are able for the Q8, but for now, have no fears about the mary instrument display, or all-digital Virtual Cock- roof, auto close tailgate, connectivity points every- driven courtesy of the latest quattro system which capability of that velvety petrol V6 that does strug- pit in Audi-speak, is linked and is fully configurable where, electric steering wheel adjustment, cruise does everything for you, so traction is never an is- gle to use less than 13.5l/100km of juice. It does a in its own right such that nav images can be brought control and much, much more which is all detailed sue. And in this case, optional air suspension was most convincing job of moving along this capacious up in full line of sight while the two primary instru- on the aforementioned website. fitted which raises and lowers the car according to SUV coupe that exudes quality in every seam, in- ment displays reduce in size. Interestingly, and doubtless as part of the more- which mode is selected. Naturally, off-road is part of side and out. For my tastes, it’s a tad too big to em- I’m not sure that some functions are not made sporty look exuded by the Q8, the side windows that menu even if a Sandton driveway is the nearest ploy in the daily traffic grind but for those who still more complex than necessary by these digital dis- are frameless and slide fore and aft on opening and most owners will get to venturing off the straight believe size matters, the Q8 is a truly excellent piece plays but rest assured that this one lacks for noth- closing, a feature which ensures truly excellent sup- and narrow. of equipment in that it’s lovely to pilot, it’s lovely ing in terms of clarity and depth of functionality. pression of wind noise despite the lack of support Included in this optional package were gargantu- to sit in and it’s lovely to look at and all these nice- To learn more about the specific detail, please visit frames for the glass. an alloy wheels around which were wrapped huge ties are capped off by that gorgeous cabin aroma. It www.audi.co.za I should also make the point that Talking of noise suppression, and by implication, 285/40 R 22 tyres. A profile like that ensures that a truly is the ringmaster in this segment even if you a night ride is a must to get the full picture of the refinement levels, the Q8 is masterful. The familiar measure of firmness is always at play but the air need nearly R1.4 million before extras to confirm ambient lighting options that make the cabin glow 3.0V6 turbo motor offers up 250kW (a conserva- succeeds in masking any discomfort and past expe- my verdict. The Financial Gazette October 10-16 2019 | Page S1

RBZ NEW BOARD FEATURE RBZ gets new board

INANCE minister Mthuli Ncube . . . govt says working on plan to restore autonomy to the central bank Fhas appointed a new board for the Re- serve Bank of Zimbabwe (RBZ) chaired by gover- nor John Mangudya. Seasoned industrial- ist Kumbirai Katsande has been appointed vice chairman alongside 10 other directors. Zvinechimwe Churu John Mangudya a principal director in the ministry of Finance is part of the 12-member board. Presidential advisor and in- dustrialist, Busisa Moyo is also part of the board. Matilda Dzumbunu, Edwini Manikai, Lindiwe Sibanda, Emma Fundira, Caleb Fundanga who is a former governor of the bank of Zambia, Belinda Musakwa and Jerry Parwada are also in the board. Former board members including Rita Likukuma and eight others were booted out. Ncube said the appointments come after consultation with the President Emmerson Mnangagwa. The appointments also come after the Treasury boss recently said government is working on a plan to restore autonomy to the central bank. In functional economies, an independent central bank facilitates price and financial sector stability, which are conducive to sustainable economic growth. But in Zimbabwe, successive Zanu PF-led governments have been using the RBZ as an extension of the Exec- utive, and sometimes unduly relying on the institution for funding. For instance, the central bank’s lending to government through the overdraft facility had reached $2,3 billion in August last year, which was 59,4 percent of the previous year’s revenue against 20 percent of the previous year’s revenues, as stipulated in the Reserve Bank Act. However, Ncube said the new administration is taking a break from the past and wants the central bank’s independence to play an important check on government-controlled fiscal policy. “We support the independence of the central bank and we have been making progress on that,” he said. Ncube said that the recent monetary reforms will also result in the central bank being more independent. “If you have a 1:1 exchange rate, it means that everyone is dependent on the central bank, including government, but once you introduce a market-based mechanism you have a proper monetary policy and a The Board, Management and Sta of ECGC extend their supporting fiscal policy then you are on the journey to independence. congratulations to the Reserve Bank of Zimbabwe new board “So that independence is happening and also engen- of directors, being chaired by Dr John P Mangudya. dered by the new monetary measures that were put in place to make sure that there is a market-determined exchange rate,” he said. We wish the entire Board success in their positions. Still, the provisions of the RBZ Act make the apex bank an extension of Treasury and analysts say this has resulted in conflict between the political goals of government and the central bank’s objectives. A 2015 study by William Kavila, the central bank’s deputy director of economic research, found that Zim- babwe’s hyperinflation episode of 2008 was caused by a politically-influenced expansionary monetary policy. Brains Muchemwa, a local economist, implored Treasury to guarantee the independence of the central bank. “For many years, the footprint of the reserve bank has been so huge and distorting in the economy,” he said. “In South Africa, if you talk about the reserve bank governor, even among bankers, most of them have never met him and they don’t know him. “But in this country, the millers know the governor, Covering You inTrade Insurance and even the oil expressers know the governor. It means that we have an unhealthy arrangement in this economy. Confine the central bank to issues to do with monetary policy, period.” — Staff Writer Page S2 | October 10-16 2019 The Financial Gazette

The Institute of Internal Auditors New Presidium Feature

The cornerstone of good governance NTERNAL auditing plays a central role in • Stakeholder satisfaction The Institute of Internal Auditors (IIA) is fession our aim is to enable organisations to realize the organisational governance, contributing to: It is often called the cornerstone of good the global voice of the profession. It is the stan- full potential of a high performing internal audit function. I • Operational efficiency governance. By maintaining an attentive, in- dard setter, chief advocate, representative, and The Global Advocacy Platform has been developed to • Awareness of risk and opportunity (current quisitive, objective, and independent perspec- primary resource to its 185 000-plus members support the advocacy efforts of IIA institutes, chapters, and emerging) tive on all aspects of an organisation — its and the wider profession beyond. volunteers, members, and other practitioners and stake- • Transparency strategy, operations, resources, and operating A strong internal audit function operating holders of the profession. • Accountability environment — it is able to serve as the board’s in accordance with internationally-recognised Advocacy is an important and necessary task to ensure • Probity trusted advisor, helping the board navigate standards is the best way to serve the interests that a clear and consistent understanding of the value of • Attainment of organisational goals through uncertainties to continued and greater of all an organisations’ stakeholders. internal auditing prevails around the world. This, in turn, • Long-term sustainability success. As the local representative of the global pro- will enable internal auditors to maximise their contribution to good governance and organisational success. The six Pillars of Good Governance, each under- pinned by four supporting statements capture in plain terms the central role internal auditing plays in helping organisations achieve their goals. They are intended to be bold and impactful without being highly-technical. Unlike the International Professional Practices Frame- work® (IPPF®), which is directed toward practitioners, the Pillars address those with a stake in internal auditing. The Pillars comprise key statements that can be used in communications with relevant stakeholders, such as in presentations, training programs, conferences, media interactions and press releases, articles, letters, email, face- to-face conversations, campaigns, advertisements, and webpages. Because the content is not part of the IPPF, the wording may be adapted as necessary for each audience. Generally, the Pillars will benefit from context and examples to strengthen the message by addressing topics of relevance to the recipient. See pillars on Page S5 The Financial Gazette IIAZ NEW PRESIDIUM SPECIAL FEATURE October 10-16 2019 | S3 Meet the IIAZ presidium . . . AWERE is the associate direc- Risk Management (ERM) policies and tor at PwC Zimbabwe and the procedures. Mcurrent IIAZ president. • Facilitating strategic risk assess- She is an experienced associate direc- ments. tor with a demonstrated history of work- • Business process mapping and ing in the private and public sectors. benchmarking. She is skilled in enterprise risk man- • Review of the adequacy and effec- agement, internal audit, risk manage- tiveness of corporate governance pro- ment, accounting, and external audit. cesses and structure. Mawere is a strong professional certi- • Workshop presentations and train- fied by IIA Global-CIA, CRMA, CSCA, ing on related subject matter for clients post-Grad Diploma in Business Man- and on behalf of the Institute of Internal agement, BCom Honours Degree in Ac- auditors. counting. She has 25 years experience gained Her areas of expertise include: from working in Zimbabwe and South • Handling all aspects of internal Africa, Zambia and Malawi. audit, including managing fully and In her long career, Mawere has also partially outsources internal audit func- worked for Deloitte Consulting in South tions. Africa, the Rural Electrification Agency, • Quality assurance reviews of inter- the ZESA, Post and Telecommunications nal audit functions. Corporation and the Comptroller and • Reviewing/developing Enterprise Auditor General’s office. IIAZ president Tambu Mawere IIAZ first vice president Richard Majilana ICHARD Majilana is currently the Internal Audit Manager at the Postal and Telecommunications RRegulatory Authority of Zimbabwe (POTRAZ). He is the first vice president of the institute. He is a career audit practitioner with professional experience spanning over 20 years in both external and internal audit in the public sector. Majilana has been an active member of the Institute of Internal Auditors of Zimbabwe (IIAZ) since 2000. Over the years, he has been a CIA Exam Writer, a regular Continuous Professional Education (CPE) pre- senter on the Internal Auditing profession and practice, a member of the IIAZ CPE Committee since 2013 and Chairperson of the same Committee since 2016, as well as being a member the IIAZ Ethics Committee for the past two years. He earned a Bachelor of Accountancy (Hons) degree and a Master of Business Administration at the Univer- sity of Zimbabwe and the Zimbabwe Open University, respectively. He is a Certified Internal Auditor (CIA) and holds a Certification in Risk Management Assurance (CRMA) both from the Institute of Internal Auditors (IIA) Global.

IIAZ second vice president Tafireyi Nyamazana

AFIREYI Nyamazana is a seasoned audit practitioner who has worked for and with organisations Tacross different sectors. He is the second vice president and his focus is to: • Deepen the relationships with other professional institutes as well as fellow institutes. • He will work with the various committees to enhance the institute’s responsiveness to the needs of its members through enhanced communication channels between members, the front office and the board. The Board, Management and Sta at POTRAZ would like to congratulate • Increase visibility and brand value of the Institute in commerce through increased interaction with stakehold- RICHARD MAJILANA on being elected ers especially employer organisations. He has been a member of IIAZ for over 15 years and the new rst vice President of the Institute of Internal Auditors. is currently a board member of the Institute of Internal Auditors (IIA). He has served on different committees in- We wish him all the best, and we are proud to be associated with IIAZ. cluding the Continuing Professional Education Commit- tee and Membership Committee. His professional qualifications are CIS, ACCA, and CIA (Certified Internal Auditor). He currently works for Mimosa Mining Company where he is the manager responsible for Enterprise Risk Management. He has worked for Old Mutual, Regatta Financial Advisory Services as well as Ernst & Young. Page S4 | October 10-16 2019 IIAZ NEW PRESIDIUM SPECIAL FEATURE The Financial Gazette Ready or Not — Here come the 2020s INSTITUTE of Internal Auditors (IIA) we live and work. This is not surprising if one considers However, this shouldn't stop us from trying. When President and CEO Richard Chambers, We are now less than three months from that our ability to predict the impact of we make a concerted effort to look ahead, we open CIA, QIAL, CGAP, CCSA, CRMA, shares the dawn of a new decade, and at such mile- technology is limited by the way our minds our minds to see beyond the day-to-day. It lets us see his personal reflections and insights on the stone moments it is a very human charac- work. the big picture and provides an opportu- internal audit profession. teristic to look both backward and forward. Celebrated entrepreneur, in- We are now nity to think strategically and set ambi- Indeed, the definition of a milestone is novator, and founder and chair- less than three tious and achievable long-term goals. T MY age, the dawn of a new de- a marker along a path or road that offers a man of the X Prize Foundation Through the end of the year, I will cade should not be that big of a deal. reference point to see where we have been Peter Diamandis addresses this months from focus several blog posts on what we can AAfter all, the middle of the coming and where we are going. in his talks about linear versus the dawn of a expect in the 2020s — at the macro level, decade will mark 50 years since I shed my Already, there are dozens of blog posts, exponential thinking. new decade, as a profession, and personally. I will rely college graduation gown and went to work articles, and studies examining what we can So what does this have to do and at such heavily on great minds in many fields and in internal auditing. Since that time, I have expect to happen in the 2020s. But predict- with what we can expect in the milestone glean from them the most powerful and watched the calendar turn to a new decade ing the future can be a humbling exercise, 2020s? Lots. Humans are linear relevant predictions. I begin here at the four times. as often our best guesses are driven by what thinkers, but technology is accel- moments it is macro scale. Each time, I tried to imagine what the we know and feel most deeply today. erating exponentially. a very human 5 Predictions For the 2020s That coming decade would hold, and each time, Another pitfall of forecasting is underes- Our best guesses about tech- characteristic Could Have a Profound Impact on events unfolded that no one could have fore- timating the impact of technology. In 2010, nological advances and their im- to look both Our Lives seen. The OPEC oil embargo in the 1970s, there was little indication that by the end pacts on our lives likely will miss backward and The line of human/machine interface the fall of the Soviet Union in the 1980s, the of the decade there would be more than 2,1 the mark. What's more, the influ- will be permanently blurred. The "phygi- explosion of the Internet in the 1990s, the billion smartphones in the world, or that cy- ence of technology on econom- forward. tal" world (combining physical and digi- global financial crisis in the 2000s, and the berattacks would compromise the personal ics, business, politics, and social tal) will become entrenched in society and explosion of social media in this decade all information of millions, if not billions, of norms and ethics complicate the the workplace. Today the phygital world had profound impacts on the world in which people around the world. art of prognostication even further. is primarily focused on consumer convenience, such as security systems that will tell you when you've left the garage door open or refrigerators that will alert you when you're out of milk. In the next decade, advances in medicine, virtual and augmented reality, and an increasing acceptance of human and machine as one will drive us toward things such as implantable mobile phones, bionic body parts, 3D-printed organs, and "memory harvest- ing" in the form of digital personas that live beyond a person's physical life. The world will be tested by a series of significant political/economic crises. The retirement of the Baby Boom generation in the United States, increasing global migration, increasing nationalistic movements, trade wars, growing humanitarian crises fueled by climate change, and the full integration of artificial intelligence (AI) into the workplace will combine to stress political and economic systems that historically have focused on creating value, peace, and prosperity by providing jobs for all able-bodied people. I believe one significant crisis is very likely, but the likelihood of multiple crises is a risk that cannot be overlooked. Several economies will adopt basic/universal income models. Dramatic changes to job creation, driven by advances in AI and machine learning, will make a segment of the population permanently un- employable. While there is reason for optimism that AI will create millions of jobs, and that human-machine interactions will lead to remarkable advances in science, medicine, productivity, and quality of life, these improvements will leave many behind. Adapting economic models to guarantee a basic or minimum income for all individuals will become necessary to avoid political and social upheaval. The principle driver of cybercrime will evolve from direct financial gain to personal and political manipulation. We have already seen the evolution of cyber hacking from simple ways to make money il- legally — phishing, identity theft, ransomware — to nation-state schemes designed to influence elections. In the 2020s, cyber hacking will take on a greater social focus designed to influence what people think and do. US economic dominance will wane significantly. Some are predicting China will overtake the US in terms of gross domestic product (GDP) as soon as 2020.Whether that happens next year or not, it is almost certain to happen in the coming decade. Rising economies in China, India, and other Asian nations will allow them to exert greater influence on global trade. The Standard Chartered Bank, a British multina- tional banking and financial services company, predicts that by 2030, the US will trail China and India in GDP with Indonesia ranking fourth. In my research, I found dozens of other specific predictions about technology (e.g., driverless cars, virtual dating), medical advances (e.g. bionic eyes, nanobots), finance (e.g. blockchain, disappearance of banks), politics (e.g. increased nationalism, declin- ing trust), and more. I've tried to pull these disparate ideas together to arrive at my top five list. It could easily have been a list of 10 or 20. Many of the predictions paint a gloomy picture of what to expect in the next decade, primarily because society, politics, and culture won't be able to keep pace with technology. However, I have unwavering confidence in the human spirit. People around the world have the uncanny ability to adapt to and endure the conditions in which they find themselves. I want to end on a positive note, and it is provided by Peter Diamandis, who is known for his list of Peter's Laws. Number 17 on the list is, "The best way to predict the future is to create it yourself." — theiia.org The Financial Gazette IIAZ NEW PRESIDIUM SPECIAL FEATURE October 10-16 2019 | S5

Delegates follow proceedings at a recent IIAZ conference. Pillars of good governance Pillar 1: Pillar 4: Internal audit is most effective OVERNANCE is essential to or- when its resource level, competence, and ganisational success and requires structure are aligned with organisational Gan open, trusting relationship strategy, and it follows IIA standards. among the board, management, and Internal auditors have a professional re- internal audit. sponsibility to improve their proficiency and All organisations require governance if the effectiveness and quality of their services they are to remain viable and continue meeting continually through education and develop- their objectives. ment. Organisational success is sustainable only if Internal audit’s resourcing and its efficient it serves the interests of all internal and external and effective deployment must be aligned with stakeholders. organisational strategy to maximise the posi- Governance is exercised through various tive impact on organisational success. processes and structures with the aim of nurtur- The chief audit executive should possess a ing transparency, accountability, and fairness, thorough understanding of IIA standards and and maintaining a healthy balance among the ensure their adoption in internal auditing. interests of all stakeholders. The credibility and trust of internal audit Governance requires an open, ethical cul- are significantly enhanced through continuous ture. review and improvement. Pillar 2: Internal audit is essential to Pillar 5: Internal audit contributes the governance and fosters trust, transparency, most value when it is relevant, objective, and accountability. attentive to risk and opportunity and All organisations benefit from internal au- future focused. dit. To be relevant, internal audit must support Internal audit is increasingly important as long-term viability and value protection and organisations grow and develop, become more creation through an appropriate balance of as- complex and mature, strive for improvement, surance and advisory services that are aligned and seek positive change. with organisational strategy and are reflective Internal audit is essential for organisations of the operating environment. that seek to contribute to economic and social Objectivity of internal auditors is ensured well-being. This includes but is not limited to: through a systematic and disciplined approach • Government departments free from bias and undue influence. • Financial institutions Internal audit empowers management • Publicly traded companies and those through concise communication of risk-based seeking legitimacy in the capital markets assessments of current and future conditions • Public utilities (water, electricity, educa- that test an organisation’s preparedness for en- tion, health care, etc.) ablers and inhibitors of success. Internal audit builds trust through frequent Internal audit makes a positive contribution and meaningful interactions with the board and to organisational value when its assurance, in- management. sight, and advice are credible, trustworthy, well Pillar 3: Internal audit contributes to communicated, and readily accepted by man- success, positive change, and innovation by agement. delivering assurance, insight, and advice. Pillar 6: Internal audit must be free By delivering insights on governance, risk, from undue influence and demonstrates its and control, internal audit provides a robust independence by reporting functionally to challenge to organisational practices and pro- the board. vokes positive change and innovation. Management is responsible for designing Internal audit is best able to provide insight and operating an effective system of gover- and advice when it combines independence nance, risk, and control. and objectivity with a deep understanding of Internal audit is responsible for evaluating the organisation, its governance, and its operat- the design, efficiency, and effectiveness of gov- ing environment, and by drawing on the power ernance, risk, and control. of data. As articulated by its charter, internal audit Internal audit encourages innovative think- requires full, free, and unrestricted access to ing by maintaining an active awareness of any function or activity under review with no developments in the profession and adopting organizational function or activity considered leading-edge practices. to be outside of its scope. Through the provision of assurance on the The chief audit executive must report func- effectiveness of governance, risk, and control, tionally to the board to allow internal audit to internal audit inspires organizational confi- fulfill its responsibilities independently and for dence and enables competent decision making. it to be recognised as an authoritative voice. Page S6 | October 10-16 2019 The Financial Gazette

Reference:

Telephone: 253136/792918 MINISTER OF FINANCE AND ECONOMIC Fax:757737 DEVELOPMENT NEW GOVERNMENT Telefax: 2141 COMPOSITE OFFICE COMPLEX CNR Telegrams: ‘’MINFIN”, Harare SIMON VENGAI MUZENDA STREET/SAMORA MACHEL AVENUE Private Bag 7705, Causeway HARARE Harare, Zimbabwe ZIMBABWE 4 October 2019 PRESS STATEMENT BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT ON URGENT WATER AND SEWER SERVICES INTER- VENTIONS FOR TARGETED LOCAL AUTHORITIES

Following Government’s recent interventions in the City of Harare, it has come to our attention that other local authorities face similar problems with regard to water and sewer provision within their localities. Lack of investments by councils towards maintenance and rehabilitation of infrastructure assets has resulted in high water losses along the distribution networks with some local authorities having water losses above 60%. Additionally, most councils are failing to collect billed amounts from residents, and hence, have accumulated huge bills for water treatment chemicals which has resulted in suppliers suspending services. Disposal of waste also remains a huge challenge for most local authorities because of the proliferation of illegal solid waste dumps in most locations. If left unchecked, there is a real threat of the re-emergence of water borne diseases such as cholera and typhoid, which caused untold suffering for our people. Based on the submissions from affected councils, Government will be disbursing ZWL$9.770 million from the Inter-Governmen- tal Fiscal Transfers allocation towards Chegutu and Kwekwe City Council as indicated in the table below.

AREA OF INTER- LOCAL AUTHORITY CHALLENGE TARGETED INTERVENTION ALLOCATION (ZWL$) VENTION Chegutu Sewer Inadequate pumping Purchase of SIX Sewage 2,250,000 Reticulation capacity Pump sets Pipe work modiﬁ cations to suit the new pumps 125,000 Installation of Pump rails 200,000 Labour cost for the Pump sets and pipework installations 125,000 10% Contingency 270,000 Partial rehabilitation of water and sewer network for Pfupajena and Chegutu Suburbs. 1,000,000 Sub-Total 3,970,000 Kwekwe City Council Water Supply Limited Pumping Procurement and installation of an Capacity Induction Electric Motor and a Pump Set for Dutchman’s Pool Water Treat- ment Plant 1,000,000 Procurement of the gate valves for rehabilitation of the rising mains from Dutchman’s Pool Water Treatment Plant to ZISCO steel 1,500,000 Procurement of a submersible Pump for the Town Inlet Pump Station Procurement of pure water bulk ﬂ ow recorders 800,000 Completion of Mbizo 3 Trunk line sewer upgrade project. 2,000,000 Procurement a new compressor and Biodigester Plant Non-Functional Bio- repair of diaphragm to resuscitation of digester Plant the biodigester plant 500,000 Sub-Total 5,800,000 Total 9,770,000

It should be noted that the path to recovery of critical infrastructure assets within local authorities will take time, resources and effort by all parties. I therefore call upon all concerned stakeholders to harness their energies and contribute towards this important effort. Government will continue to monitor the situation and intervene where necessary.

Hon. Prof. Mthuli Ncube / Minister of Finance and Economic Development The Financial Gazette October 10-16 2019 | Page 18 Column Collective bargaining in this volatile environment COLLECTIVE bargaining is a process of strengthen their bargaining position because does not allow determining the terms and conditions of in the end they benefit • Collective Bargaining agreements result “employment in your workplace by agreement • Most Board members have scant in legal obligations to the employer. Look with your employees.” - International Organisation of knowledge of labour statutes. Only 13 at the implications and factor them in your Employers (IOE). percent of boards in Zimbabwe have an HR business. More importantly once agreed In Zimbabwe, it takes place at firm level or at Expert on the Board. Less than 5 percent comply. sector level National Employment Council (NEC). of HR Board Committees are chaired by an • It is too inflexible and slow to change The Constitution of Zimbabwe under Section 65 gives HR Person. Over 90 percent of HR Board in the face of rapidly changing markets and employees the right to collective bargaining. Committees have no single member with commercial environments. This is supported by s24, s25A, s74 of the Labour HR background Over and above, the challenges outlined Act. The above implies that an employer cannot • Restive workforce above, the National Employment setup fails refuse to bargain and must make an effort to bargain • Everyone depending on fixed income to recognise and accommodate the diversity in good faith {s75}. supply such as wages and salaries is of businesses, even within one sector. Section 65 of the Constitution provides other rights struggling to survive as the wages and This includes issues such as the capacity such as safe labour standards and the right to a fair salaries have been eroded by inflation and to pay. In the next installment, we look at wage. The question is do employees have a right to currency depreciation the strategies employers can use when demand a “living wage”? SI 33 of 2019 gave false • It is a process — Employers should collective bargaining. value to the local currency versus USD. HR Perspective understand this process, understand The consequence was that the local currency lost with the opportunities it presents and use it n Nguwi is the managing consultant of value. Further monetary policy changes through SI 42 Memory Nguwi strategically. It is a regulated process, and it Industrial Psychology Consultants (Pvt) of 2019, banned forex trading as legal tender for all is important to know what the law does and Ltd. He writes in his personal capacity. local transactions. The consequences were that people lost confidence in local currency. It continues to lose value. Is it then a good store of value? The fact that the general populace is questioning its ability to store value brings with it a number of challenges for workplace collective bargaining. This is why workers have been clamoring for employers to peg their salaries against the USD. A request very few employers can afford. Collective bargaining in the current environment is further complicated by the fact that most goods and services are tracking the exchange rate. Question is for how long and is it sustainable? Wages and Salaries are not tracking the exchange rate because it is not sustainable. There many more other challenges impacting on collecting bargaining and I list them below: • At NEC level most employers send junior staff for collective bargaining. The process is cumbersome because

most of these people do not have the power to make decisions • The general trend of wage increase is random and not related to productivity improvements • Where wage increases are given they do not take into consideration individual performance • Despite the new amendment to the Labour Act emphasising the need to take into consideration productivity when bargaining, this is not happening • Governance challenges: Although the new Labour amendment (audited accounts) tried to breath fresh air on governance at the NEC level a lot still needs to be done • The governance structures in most organisations make it difficult to make decisions related to collective bargaining. Most Boards want to approve the staff budget and in most cases, bargaining changes are not factored in advance • Bargaining at the industry level is constrained because employers in the same industry are competitors. They rarely share important performance information required for collective bargaining • There is scarcity key performance data for most sectors to enable effective collective bargaining at the sector level. The default position for most NECs is to use national data e.g. inflation, the food basket and now forex rate {all outside the control of the employer} • While statutes give scope for firm-level collective bargaining; decisions and firm-level are non-statutory • The Labour side seems more prepared when it comes to collective bargaining than the employer side (they understand labour statutes better) • Most of the unions are militant and prefer an adversarial approach to collective bargaining likely scaring away some of the executives from this process • Most people on the employers' side benefit from most of the collective bargaining agreements by default e.g. when non-managerial employees make noise, adjustments are done which in most cases also extends to managerial employees. We have heard cases where very senior managerial employees pass on information to non – managerial employees to 19| October 10-16 2019 The Financial Gazette Column Tax rules for services between associated entities independent persons. to those between related entities. Tax law such as time sheets, working papers, log books, Transfer pricing rules normally impact normally takes the view that transactions clock books among others. Secondly, the service international companies which operate in between associated parties seek to is expected to provide the recipient with economic more than one tax jurisdiction and have manipulate their profits to reduce tax or commercial value to enhance its commercial Tax Matters cross border transactions with associate liability. position. with companies. Local entities which are The legislation therefore sets forth the This suggests that the provision of the service Marvellous Tapera involved in intercompany transactions with criteria required to be met for a service must have been done for a justifiable economic associates are also affected by the transfer charge between associated parties to be benefit to both the service provider and the recipient. he Zimbabwean transfer pricing laws pricing rules. considered arm’s length. In other words it must make economic sense. regulate services between associated The legislation provides criteria to Firstly, a service charge is considered Thirdly, the amount must correspond to that parties. The requirement is that the determine whether services between to be consistent with the arm’s length which would have been agreed between independent T associated parties (intra-group services) principle when it is charged for a service enterprises for comparable services in comparable prices for such services must be at arm’s length. The arm’s length principle requires are at arm’s length. Transactions between that is actually rendered. Proof that a circumstances. that transactions between related entities independent enterprises are ordinarily service has been actually rendered will have This condition suggests that the price will have should not differ from those applicable to determined by market forces as opposed to be substantiated through documentation to be compared with that being transacted by independent parties for the same service. Sometimes, services may be rendered by a taxpayer jointly to various associated persons and it is not possible to identify specific services provided to each of them. In such instances, the total service charge must be allocated among the associated persons that benefit from the services according to reasonable allocation criteria. Allocation criteria will be viewed as reasonable where it is based on a variable or variables that take into account the nature of the services, the circumstances under which they are provided and the benefits obtained by the persons for which the services are intended. Furthermore, the allocation criteria must relate exclusively to uncontrolled, rather than controlled, transactions; and is capable of being measured in a reasonably reliable manner. The transfer pricing law also specifies circumstances where a charge for services to a taxpayer will not be consistent with the arm’s length principle. They include costs relating to the reporting requirements of the parent company of the taxpayer such as consolidation of reports; and costs related to raising funds for the acquisition of participations, unless those participations are directly or indirectly acquired by the taxpayer where he benefits out of them. Any service charges made on the taxpayer by an associated person solely because of the shareholders ownership interest in one or more group members for instance costs or activities related to the structure of the parent company of the taxpayer are considered to be inconsistent with the arm’s length principle. Taxpayers are required to have transfer pricing documentation which justify that their transactions with associated parties are consistent with the arm’s length principle. The transfer pricing documentation must be furnished to ZIMRA upon request. Furthermore, taxpayers are now obliged to file annual transfer pricing returns in respect of such transactions. The Commissioner General of ZIMRA is empowered to make adjustments when prices for services are not consistent with the arm’s length principle. The adjustments may yield additional taxes. Over and above additional taxes, penalties of up to 100 percent are imposed on a taxpayer. It is important to bear in mind that the need to make adjustments to approximate arm's length conditions arises irrespective of any contractual obligation undertaken by the parties to pay a particular price. Thus, a tax adjustment under the arm's length principle would not affect the underlying contractual obligations for non-tax purposes between the associated enterprises. It is a mere book entry done for tax purposes to ensure that the parties pay their fair share of taxes to the tax authority. In conclusion, taxpayers must ensure that any prices charged by or to associated entities are at arm’s length as discussed above. Transfer pricing documentation must be in place to support that the prices charged or any adjustments made by taxpayer are at arm’s length. That way, taxpayers will avoid unnecessary inconveniences arising from additional taxes and penalties. Meanwhile, we are currently at Troutbeck Inn, Inyanga for the Tax and Business Interface 2019 being hosted by Matrix Tax School, running from the 9th to the 12th of October 2019. n Tapera is the founder of Tax Matrix and chief executive of Matrix Tax School. He writes in his personal capacity. The Financial Gazette October 10-16 2019 | Page 20 Column Top 10 leadership qualities EADERS today are continuously challenged by the grounded human being and understanding there is no potential without financial payment. Authentic leaders complexity and pace of change in business and surrounding need to be or play a hero. inspire others to step up and lead in situations where Lenvironments. They have to think on their feet and maintain Humility: People relate positively to those who they can excel. relationships while moving their organisation forward. portray themselves as being at the same level with them. Perspective: Maintaining a balanced view of Change Partners, a global Executive Coaching entity asked its Seeking and being open to feedback for one’s own the situation at hand and all its ramifications is a highly executive coaches what leadership qualities they believed to be the development is a virtue. A good leader creates a culture priced virtue of a leader. Problems are always more most enabling both for the leader and those who support him or her where the team gives open feedback to one another. complex and protracted than they seem, thus requiring in the achievement of sustainable business results. They articulated Courage: Being in a position of leadership deep analysis to structure an appropriate solution. the qualities below in no order of importance. denotes loneliness as you preside over other people’s Listening: First seek to understand before you Leading change: Change is the only constant factor in today’s sensitive aspects. You need the courage to take action, can be understood. This is one of Steven Covey’s world which places high demands on those in leadership. The best Executives Only Corner deal with difficult situations and be responsible for the seven habits of most successful people. Effective way to manage change is to create it in order to be able to control with consequences of your decisions. The simple ethical leading requires being fully present to each person who its pace and impact on your organisation. The leader must have Shepherd Shonhiwa principle dictates that courage is what it takes to stand deserves your attention. Eye contact and body language the authenticity to walk the talk in order to give credibility to their up and speak for the right. are vital to support your listening while the other person the right time through the team they lead. An able instructions. Sensitivity: Human beings have delicate feelings is communicating to you. Thereafter, you can respond team creates the critical mass which makes it possible Openness: Leading entails delivery of the right results against and perceptions all the time. The leader must always fully and appropriately. to overcome major hurdles and deliver extraordinary pre-determined goals. Performance management is imperative create a safe space for engagement, innovation and “The mind is like water, when it is turbulent it is results. The leader must work with their team to drive which requires sometimes uncomfortable conversations with creativity to elicit the best from the followers. difficult to see but when it’s calm everything is clear” interdependence rather than division or competition. subordinates, peers and superiors. This calls for openness of mind Encouragement: Motivation is the hay on which – Prasad Mahes Authenticity: Followers must not see their leader to have courageous conversations so that the focus is on purpose the human mind feeds at all times. Young and old alike l Shonhiwa is a chartered director and has as a demi-God or supernatural because that leads to a and outcomes. go an extra mile in response to encouragement. As a authored books on leadership. He writes in his cult personality. A leader must remain being oneself, a Collaboration: An effective leader gets the right results at leader you empower your team to deliver at their full personal capacity. Old Mutual, Moyo feud splits shareholders LD Mutual shareholders are split on whether the South African insurer should pony up and settle with Chief OExecutive Officer Peter Moyo or run the risk of a R250 million damages claim. All Weather Capital is up for a settlement if it will end the feud. Allan Gray, Old Mutual’s second-biggest investor, is against the idea. Sanlam Investment Management wants to wait and see how the court process unfolds, while Prudential Investment Managers reckons a payout of that magnitude would be “egregious.” Moyo fired the salvo when he issued Old Mutual with a summons seeking damages if he can’t get his job back. The 174-year- old firm shot back, saying it will vigorously defend any claim, and that it was correct to dismiss the CEO. The battle spilled into the open when Moyo was suspended toward the end of May and then fired three weeks later, which he successfully challenged in court as being unfair. “We are not opposed to a R250m settlement if it achieves an expedited closure to this unfortunate and costly dispute,” All Weather Capital Chief Investment Officer Shane Watkins said in response to emailed questions. The board should then independently re-evaluate whether Trevor Manuel should continue as chairman, he said. “The board has handled this matter appallingly and changes are necessary and desirable,” Watkins said. All Weather Capital holds about R300 million of shares in Old Mutual. While Prudential Investment Managers, which owns four percent of Old Mutual, would prefer an out-of-court settlement to a long legal process with “uncertain outcomes,” the price is too high, said the Cape Town-based company’s head of equity Johny Lambridis. “It appears particularly excessive in a society like ours that is plagued with inequality,” he said. It “unfortunately speaks to the fact that executive pay in South Africa and globally has grown to levels dangerously out of kilter with what society seems willing to tolerate and what shareholders are willing to pay.” The amount Moyo is seeking is in addition to the 36 million rand he earned in salary and incentives in 2018, and 4 million rand for his six months notice period, the insurer said. Moyo, 56, has denied wrongdoing and said he should’ve been through a disciplinary process before being dismissed. His contract was due to expire when he turns 61. At present Moyo and Old Mutual are not negotiating a settlement or payout, the fired CEO said. Allan Gray, which holds 10 percent of Old Mutual and has consulted with the company, is fully behind the board. “We believe company boards, as shareholder representatives, should be able to dismiss executive officers and there should be no need for cash settlements,” said portfolio manager Jacques Plaut. “The board is following the correct course of action.” Patrice Rassou, head of equities at Sanlam Investment Management, said Old Mutual’s reasons for dismissing Moyo have not yet been tested in court, making for a difficult call on whether the parties should settle. While the matter has been handled very poorly, “I don’t think we have a full picture,” he said. Old Mutual’s board fired Moyo for an alleged conflict of interest over NMT Capital, in which he and Old Mutual both own 20 percent. Old Mutual said it should’ve been paid preference-share dividends before NMT declared ordinary dividends to its shareholders. Those payouts also caused a fallout with the Industrial Development Corp., which wrote off a portion of a loan to a unit owned by NMT without knowing of a windfall NMT had made from another investment. The spat — which has seen Moyo been turned away from reporting for work three times — has pitted the fired CEO against his chairman amid allegations and counter-accusations of conflicts of interests, claims they both deny. Manuel, a former South African Finance minister who oversaw the country’s longest stretch of economic growth, has said court rulings against the company have created a “massive headache for corporate governance.” Moyo, who has accused Manuel of spearheading his dismissal, wants to defend his reputation. The Public Investment Corp. continues “to engage both parties to register its concerns and urging them to find a solution to this dispute,” the insurer’s biggest investor and the continent’s largest money manager said in an email. — Bloomberg Page 21| October 10-16 2019 The Financial Gazette Column Law against forex use now irrelevant VIDENCE that the public has lost Once such a currency becomes loathed in heavy penalties, will continue to trade in foreign currency. confidence in the Zimbabwean dollar can preference of others, then that goes to show While government has imposed a sledge hammer Ebe seen in the proliferation of deals now the extent to which the currency would have tactic, against use of foreign currency by the public, it being done in foreign currency. become worthless. continues to have a strong appetite for the same foreign This is despite the attempt by government to In recent months, if not years, Zimbabwe has currency. legislate against the use of foreign currency. become a thriving market for other currencies, This is utter hypocrisy. Section 4 of Statutory Instrument Statutory Instrument 212 of 2019 was notably the United States dollar, British pound, 212 of 2019 has a long list of instances where government hastily brought into life in an attempt to thwart Botswana Pula or even the Euros. can receive foreign currency for certain payments. the prevalence of the use of foreign currency in While the law remains clear that only the Certain fuel service stations are under Section 5, domestic transactions. Zimbabwean dollar is the legal tender locally, allowed to accept foreign currency only from “Guests of Government did not end there. the public in general or even highly placed the State” who are by definition, diplomats and members Another Statutory instrument 213 of 2019 politicians, their spouses and children have of staff of gazetted regional or international organisations. was simultaneously launched with the former started to have faith in currencies of mainly I have, however, seen numerous such service stations and is laden with heavy sanctions to punish western countries. directly accepting foreign currency from individuals who those that continue to use foreign currency for This then goes to show the hypocrisy by are not Guests of the State. purchases and other transactions. Legal Matters some politicians who at times fail to practice Statutory Instrument 213 of 2019 is itself controversial Section 10 of the Exchange Control with what they preach. by reason of it being introduced under Presidential Regulations of 1996 had a void and hence, VOTE MUZA The solution lies in addressing economic temporary measures. Statutory Instrument 212 had to be introduced factors that have triggered inflation and hence, The question arises whether it is fair to entrust the to make the law clearer in so far as penalisation A currency, just like an airline, is a proud without any practical solution being proffered Reserve Bank of Zimbabwe with the power to impose fines against use of foreign currencies was concerned. carrier of a country’s flag, image and reputation. the public despite the plethora of legislation and some of which are much higher than those imposed by Magistrates who themselves are trained judicial officers.

. . . the overwhelming use of foreign currency in broad daylight by many members of the public is a clear sign that the law penalising use of foreign currency as a medium of exchange has become superfluous, absurd and totally unacceptable.

History teaches that no amount of criminal civil sanctions can arrest offences brought about by strong economic forces. People at all levels secretly accept foreign currency as the medium of exchange. The public now realises that real value in their assets can only be retained through demanding stable currencies rather than our own battered, and bruised dollar. The fact that such business conduct is now commonplace and highly popular with the public does not make it lawful. Authority must still be sought from the Reserve Bank of Zimbabwe if one intends to alienate an asset in foreign currency, and in the event of defaulting, then one’s conduct will not only be unlawful, but criminal since such conduct will be in flagrant contravention of the Foreign Exchange Regulations. But why must a law be openly violated when it is still being part of our statue books? The answer can easily be located in jurisprudence, where it is stated that the public generally registers its displeasure with law through openly flaunting it. Once a law becomes unreasonable, static and unresponsive to the public’s needs and expectations, then such a law would have ceased to be relevant.

Thus, the overwhelming use of foreign currency in broad daylight by many members of the public is a clear sign that the law penalising use of foreign currency as a medium of exchange has become superfluous, absurd and totally unacceptable. Well, just like what other men of wisdom keep saying; Zimbabwe is not ready for its own currency. Only such an interim move can for the time being, serve our economy well. There are others who have been major beneficiaries of our present eschewed exchange rate policy who may resist dollarisation and characterising it as sabotage, but I urge all those keen on genuine economic recovery to lobby for this move. Remember that Cuba, today proudly allows the United States dollar to trade freely, and Cubans allowed this to happen aware of the economic rewards. n Muza is a Harare-based legal practitioner. He writes here in his personal capacity. The Financial Gazette October 10-16 2019 | Page 22 Column Green HR adoption: Winning the war for talent Marcus Mutanga and Patience Siwadi • High achieving graduates in a study done organisations • Employees should be motivated through in the UK reported judging the environmental Challenges that may be faced in implementing incorporating GHRM aspects in performance HERE has been growing interest in protecting the performance and reputation of an organisation as a GHRM policies management and appraisals, pay and reward environment from climate change, harm and pollution basis for deciding on an employer (CIPD, 2007) Shaban (2019) identifies the following as some systems, employee involvement, empowerment and Tglobally (Renwick, Redman & Maguire, 2012, Bombiak • Over 75 percent of employees consider it as of the challenges that an organisation might face in engagement, supportive cultures for Environment &Marciniuk-Kluska; 2018). Scholars have advocated for important that an organisation should have a policy implementing GHRM: Management making use of employee tacit Strategic Human Resources Management (SHRM) to to reduce carbon emissions when choosing an • Difficulties in changing employee behaviours knowledge and encouraging employee unions to incorporate environmental management issues (Osland and employer (Felgate, 2006) • Employees may not have the play a role in environment management Osland, 2007) as cited by Renwick, Redman & Maguire • Some employers are becoming more same levels of motivation with Concern about the environment is and a reality (2012). Incorporating environmental management aspects in concerned about recruiting candidates who are regards to the concept of GHRM and has become a global concern. Organisations HRM is referred to as Green Human Resources Management concerned with green issues (Brochett, 2006) • Recruiting green talent may be that focus on the here and now and neglect thinking (GHRM) (Bombiak &Marciniuk-Kluska, 2018). GHRM • It is easier to hire quality employees if difficult for organisations about the future generations are destined for can also be defined as the use of HRM policies to promote the organisation has a positive environmental • Measuring the effectiveness of extinction. As a result of the importance attached sustainable use of resources within organisations as well as reputation (Banisal and Roth, 2000) GHRM practices is difficult to sustainable development, all functional areas of the environment generally (Sharma & Gupta, N.D). GHRM • Recruiters in some organisations in Brazil • It can increase pressure to organisations are now concerned with green issues, provides an opportunity for organizations to become employers prefer candidates with environmental knowledge perform on HRM professionals hence the recent nomenclatures such as green of choice. There is, therefore, need to integrate environmental and motivation (Jabbour et al, 2010) Implications to policy makers marketing, green supply chain, and indeed green management with Human Resources Management (Sharma & • There is growing interest in training on green • There is need for an environmental knowledge human resources management, thus a new basis on Gupta). issues in some countries (Phillips, 2007) base (Lo, 2003) because environmental knowledge which organisations can achieve a basis of achieving Sustainable development refers to development that satisfies • A trade union body on sustainability was formed has been found to be a predictor of environmental competitive advantage. the needs of present generations in a way that does not prejudice in the UK showing increasing concern about the behaviours at individual level future generations from satisfying their own needs (World environment (Renwick, Redman & Maguire, 2012) • Senior management must be trained on GHRM n Mutanga and Siwadi are from Midlands Commission on Environment and Development). Sustainable • International standards are being put in place • Business schools must come up with curriculum State University, Graduate School of Business development can be looked at from three dimensions which to benchmark the environmental accountability of that incorporate GHRM Leadership. are ecological, economic and social. Sustainable ecological development is concerned with protecting the environment and its natural resources, while economic development is concerned with effective use of resources, materials and workforce. Sustainable social development is concerned with improving the living conditions and safety of all people (Bombiak &Marciniuk-Kluska; 2018). Organisations are increasingly showing interests in sustainable development (Bombiak &Marciniuk-Kluska; 2018). This interest is driven in part by increased level of awareness among stakeholders, technological changes, institutional and legal conditions that provide direction on how organisations should operate as well as the search for new sources of competitive advantage. In view of the increasing concern about the environment, the HRM function cannot be left out as it is the human factor that facilitates the different environmentally friendly practices. Green HRM practices Green HRM focuses on making employees’ green and concerned about the environment. This can be achieved by applying green policies, practices and systems. HRM practices that provide an opportunity for environmentally-friendly outcomes include green recruitment and selection, green induction, green training and development, green performance appraisals, green reward management systems and employee relations (Shaban, 2019). An organisation’s job analysis and design should be made to emphasise environmental issues. During HR planning organisations should focus on searching for experienced candidates who have a lot of drive for initiative. Recruitment and selection initiatives should focus on those who are familiar with sustainable training and development methods. On-line recruitment methods should be used in order to reduce carbonate footprint. All employees should be trained on the significance of reducing effect to the environment. Performance appraisals should be done online. Green-related targets should be made part of the measurable items of the performance appraisals. The reward system should recognize the contribution made by employees on green activities. Through such practices some benefits can accrue to the organizations. Benefits of GHRM According Shaban (2019), GHRM practices improve employee morale as well as attitude towards protecting the environment. Shaban (2019) citing Bangwal and Tiwari (2017) notes the following additional benefits: • It improves the rate of retention of employees • It leads to an improved public image for the organisation • It results in an improvement in the sustainable use of resources • It leads to a reduction in practices that cause degradation of the environment • It may result in tax benefits for the organization or reduced litigious exposures Empirical evidence in favour of GHRM There are several studies that have been done that indicate that GHRM that suggest that there are converging views about the importance of considering the environment and embracing environmental aspects in the HR practices of organisations. Renwick, Redman & Maguire (2012) summarises the following research findings favour of embracing GHRM: • It is a form of employer branding • Younger generation employees are becoming increasingly aware of environmental concerns • Environmental reputation and image is becoming an increasing ethical issue and therefore becoming prominent in recruitment efforts • Concern for GHRM by organizations has a signalling effect during recruitment • A study by Albinger and Freeman (2000) indicated that job seekers with high levels of job choice (and thus high levels of skill and education) prefer organisations with a high corporate social performance index • University students are attracted to working for entities that have a high pro-environment image (Bauer & Aiman-Smith, 1996; Backhans et al, 2002) • In a study done in the USA over half of MBA students reported preferring working for an environmentally responsible organisation as compared to working for an organisation that offers a higher salary but is less environmentally responsible (Dolan, 1997) Page 23 | October 10-16 2019 The Financial Gazette Column Of corporate climate-related disclosures Barbara Davidson Public policy efforts are also growing, including recommendations by the Financial Stability Board’s E are all aware that action is needed Task Force on Climate-related Financial Disclosures to address the effects of climate (TCFD) for disclosing climate-risks and opportunities, Wchange. In 2018 the world’s largest the EU’s guidelines on reporting climate-related companies reported US$1 trillion at risk from information and a recently formed Project Task Force climate impacts. on Climate-related Reporting. Recent scientific information calls for While many companies support these endeavours, making "finance flows consistent with low there has been limited uptake. greenhouse gas emissions and climate- Investors are frustrated by the lack of transparency resilient development". and inconsistent information around the financial The European Commission (EC) estimates impacts of climate change on businesses and the that €180bn a year in additional investments resilience of company strategies, both of which are is needed to meet EU climate and energy critical inputs to investment valuations and decisions. targets alone. In response, there is talk about mandating corporate To evaluate and respond to climate risks Mandating a single set of disclosures would, among other things, help investors identi- climate-related disclosures. But is now the right time? and opportunities, investors need good data. fy opportunities, such as technologies that can contribute to a low-carbon economy, so And if so, should a single body oversee this? A variety of organisations recognise this. lowering the cost of capital. To mandate or not? The Global Reporting Initiative, the Investors need reliable information that is easy to Sustainability Accounting Standards Board, find and comparable across entities. This non-financial the CDP (formerly Carbon Disclosure Standards Board (collectively, the NGOs) are frameworks and standards for companies to (or extra-financial) information is typically outside Project), and the Climate Disclosure among the more prominent bodies to develop use to provide such information. financial accounting and reporting boundaries. It is not standardised, making it less comparable. It is frequently located in separate, company-specific sustainability reports, and is rarely assured. Mandating a single set of disclosures would: • Force companies to incorporate material climate or environmental, social and governance (ESG) matters into their governance framework, and liaise across functions, including senior management, to evaluate risks, impacts and strategies • Increase transparency and improve stakeholder dialogue • Help investors identify opportunities, such as technologies that can contribute to a low-carbon economy, so lowering the cost of capital • Ensure information is prepared to similar levels as accounting information, is assured and is included within annual reports. This cannot be fixed overnight. It takes time for companies to gather the information. Those that have started implementing the TCFD recommendations need two or three more years to get them right.

Despite this, some argue that it is still too soon to go down the mandatory disclosure path. Standards and enforcement The current variety of guidance, standards and frameworks causes confusion among companies and investors. A single set of disclosure standards would eliminate this, while also reducing costs. Although the NGOs in this space have been working to identify areas of alignment, they have different missions and governance structures. Some target different stakeholders. These distinctions may inhibit their ability to merge or to cede responsibility to a single organisation. One solution would be to leverage existing accounting standard-setting infrastructure. For example, the International Accounting Standards Board (IASB) develops standards to bring "transparency, accountability and efficiency" to global financial markets. It is familiar with the growing pains that non- financial reporting is experiencing. It has strong due process, a funding procedure, a clear governance structure, and focuses on a primary stakeholder group: investors. It would not have to reinvent the wheel; it could consolidate and codify the wealth of existing guidance from NGOs and governments, drawing from their vast knowledge and experience. It could address concerns around issues such as materiality. However, this is not currently within accounting standard-setters’ remits, so agreeing on their role in this process could present a significant barrier. The "long-term" effects of climate change are happening today. A clear understanding of the associated financial risks, as well as opportunities and strategies, is key to ensuring effective financial markets. Voluntary measures, while laudable, have not yielded sufficient information in a timely fashion. Urgent action is required. Stakeholder support is strong and there is ‘political will’ in many countries for a single mandatory set of disclosures. Oversight by a single body will help us move forward. Whatever happens next, the effects of climate change will not wait. So why not act now while we still can?

n Davidson has 20 years experience in international financial markets and was formerly head of investor engagement at the IASB. Page 24 | October 10-16 2019 The Financial Gazette National News Power cuts, invasions hit Eureka Mine Freedom Mashava up our security, as at times they will be more than the process of acquiring a 50,1 percent sharehold- Staff writer a 100 of them. Police are also helping us by ar- ing equity in Dallaglio. resting the artisanal miners, but they always come The diversification into gold mining will NCESSANT power cuts and invasions by back.” reduce risk concentration and create value for artisanal miners have delayed the revival of “We are confident that by 2021 we will be shareholders, a local research firm has said. IEureka Gold Mine in Guruve, an official has producing up to 200kg of Padenga intends to acquire said. gold a month. This will be Power supplies have been our 9 036 shares, representing a Zimbabwe is enduring 18-hour power cuts achieved during the first major challenge as we need 50,1 percent shareholding eq- daily and Michael Fowler, chief executive of Dal- quarter of 2021. to decommission the water in uity in Dallaglio, to be settled laglio, which owns Eureka, said power outages Eureka which suspend- our mining shaft. Once this by way of a cash injection in were scuttling plans to de-water pits. ed operations in 2000 was has been resolved, nothing $90,36 and about US$20 mil- “Power supplies have been our major chal- reopened last year after Vast will stop us from achieving lion to be paid in kind by the lenge as we need to decommission the water in Resources —through its sub- delivery of mining equipment our mining shaft. Once this has been resolved, sidiary Dallaglio Investments our targets. to Dallaglio. nothing will stop us from achieving our targets,” — acquired a 95 percent in- The company’s sharehold- he told reporters during a tour of the mine in Gu- terest in Delta Gold Zimbabwe ers unanimously approved ruve last week. for US$4,5 million. the deal at a recent extraordinary general meet- “Besides power cuts, we have a problem of Padenga Holdings which sells crocodile and ing and the deal now awaits regulatory approval. artisanal miners flocking this area. We had to beef alligator skins on the international markets is in [email protected] Michael Fowler Karo completes phase one exploration Adelaide Moyo Vacancy Notice Staff Writer

• Monitor implementation of roads works by Road Authorities to ensure conformance to ApplicationsApplications are invited are invited from suitably from suitablyqualified qualifiedand experienced and candidates toset fill standards. the following position HARISA Plc says Karo Resources has complet- experienced candidates to fill the following position • Submit monthly progress reports on key result areas to the CEO ed the first phase of exploration at its Zimbabwe FINANCE DIRECTOR • Maintain National Road Network database operation. 1. DIRECTOR ADMINISTRATION & HR • Formulate departmental Budget and monitor adherence to the approved budget. T • Maintain effective communication with all stakeholders and advise on quality standards The London Stock Exchange-listed miner bought a JOB JOB PURPOSE PURPOSE and proper usage of funds. 26,8 percent stake in Karo which is expected to open the The positionThe job exists exists toto provide ensure administration financial and trackinghuman resource and man reportingagement services systems to the are• in placeManage to and effectively coordinate stakeholder manage information provided dissemination funds inand feedback a timely, to ensure complete and first of four open pit mines in 2020. organisation to ensure departments have adequate material and human resources support their needs are attended to timely “Extremely pleasing is our Zimbabwean develop- accurate manner. The designation ensures resources are utilized efficiently• Analysewithin of theinformation, organisation resources and to technical avoid requirements any financial of stakeholders loses whilst providing timelyDUTIES and AND reliable RESPONSIBILITIES financial information and analysis that leads to effectiveand decision provides ZINARA making. Executive with updated information required for effective ment pipeline, especially with Karo Platinum complet- • Contribute in mapping the strategic direction of the organisation in line with mandate maintenance programme execution. ing phase one of the exploration programme with posi- DUTIES• ANDPut in RESPONSIBILITIESplace a performance management system for strategy implementation and review • Create a culture of prudence and cost management in the department, thereby tive results apparent at this early stage,” Tharisa said in a • Define the scope of the department in relation to human resources management, general maximizing shareholder value administration and logistics support to ensure adherence to professional standards • Inspire good leadership values to all supervisory positions and provide exemplary production update. • • DrawsDevelop up financial shared departmental policy vision of the and strategiesorganisation in line with that organisational governs vision financial and mattersleadership in the organisation. The mining project, which is expected to produce 1,4 • Advisesstrategy the Chief Executive Officer on all aspects of Financial Management of the Organisation to enable him/her to make informed deci- million ounces of platinum annually, will create Zimba- • sions.Ensure the Departmental strategies are shared and understood by all staff and integrate Education, Professional Qualifications and Work Experience • BSc Honours Degree in Civil/Construction Engineering bwe’s largest integrated platinum mining and refinery • Ensuresdepartmental that systems activities with are other put departments in place to ensure road user funds are paid in time to provide adequate financial resources for the organisation’s • Develop a structure to identify the functions of the Department and map flow charts on • Master’s degree in Business Administration/Leadership operation. operations.departmental core activities to ensure efficiency and accountability • At least a Diploma in Project management Recently, Karo chairperson Loucas Pouroulis said • Matches the available financial resources with the organisation’s Strategic• Must objectives have a minimum and of sevenmake tothe ten years’ necessary relevant experience,adjustments. with 5 years at senior • Contribute to formulation of policies in relation to human resource management, general Karo had secured an • Preparationadministration of and the logistical organisations support budget in an accurate and reliable mannermanagement for use levelin indecision road works making implementation by management. The shallow depth Environmental Pro- • • ComparisonsMonitor implementation of actuals of humanto budgets resource onand administrationa monthly polbasisicies andto standardsprovide the current state of the use of financial resources to ensure management for effectiveness Applications including CVs and certified copies of certificates should be submitted not later of the Main Sul- make informed decisions within divisions and the organisation. spectus from the Envi- • Analyse monitoring reports from Administration, Logistics and Human Resources than 4:30p.m. on 07 June 2019 to: ronmental Management • Preparemanagement budget and documents submit a consolidated with reportthe assistance to the CEO for of info Headsrmative decisionof divisions andThe Acting pipeline Director budgets Administration for onward & Human submission Resources to the Chief Executive Offi- phide Zone of the cer. making Zimbabwe National Road Administration Great Dyke allows Agency (EMA) and has • • ReviewArticulate actual the capitalexpenditure requirements against of the Department the budget as a cont andribution explain to the variancesBudget with489 Runiville, the relevant Glenroy divisional Crescent members to correct any anomalies if any and initiated field work and • Develop operational budgets and manage departmental costs Highlands, Harare for initial open-cast the exploration drilling • provideMonitor solutions. expenditure levels of the Department to remain within the acceptable variances • • EnsureCreate that a culture road of user prudence charges and cost thatmanagement have inbeen the departm collectedent, thereby have been distributed to road authorities equitably according to need. mining before de- programme. • Craftmaximizing financial shareholder policies value that can be used in the administration of theCORPORATE road Fund SECRETARYto ensure standardization of financial processes. veloping the shal- “Stakeholder con- • • ReviewsInspire Bank good leadership reconciliation values to all supervisorystatements positions on anda providemonthly exemplary basis to trackJOB organisational PURPOSE performance and review (Nominal ledger) Control Ac- sultations have been leadership low underground counts reconciliations on a quarterly basis The Corporate Secretary position plays a leading role in governance by providing legal advice workings. concluded by the en- • Education, Prepare Professional and review Qualifications periodic and financial Work Experience reports ensuring timely submissionand counsel according on Board responsibilities to agreed and schedules logistics, in additioto providen to recording information minutes and otherfor decision vironmental consultant • makers.BSc/BA Honours in Business/ Administration/Human Resources/Social sciences documentation that meets legal requirements. It also exits to provide legal advice to ZINARA and over the mining lo- • • ReceivesMaster’s monthly degree in businessmanagement administration/leadership accounts and reviews them to verify overseeaccuracy internal and & externalthe financial legal resources position necessary forof thethe operations organisation. of ZINARA. • Professional Qualification (e.g. CIPS, IPM(Z),) cation and the final environmental impact assessment • • SubmitsMust havemonthly a minimum management of seven to ten years’accounts relevant to with the 5 years Chief at senior Executive management Officer DUTIES for AND information. RESPONSIBILITIES (EIA) and management programme has been submitted • Ensurelevel production of annual financial statements for the organisation• in Producescompliance a calendar/ with diary the of meetings governing to be heldstatutes in the year and where the meetings are to EMA for approval, post the interim reporting period,” to be held annually. • Ensure the production of daily cash flow projections for planning purposes for the total organisation. he said. • ApplicationsMaintain including and Review CVs and of certified the fixed copies asset of certificates register should and be coordinatingsubmitted not later fixed • assetLiaises verification with the chairperson to ensure of the board that for the the contents company’s of the agenda fixed to knowassets what are properly than 4:30p.m. on 07 June 2019 to: will be discussed in the meeting and raises notice and agenda for the meeting to be held “The digital terrain mapping and high resolution air- safeguarded to avoid any loses. The Acting Director Administration & Human Resources • Collects reports from departments and prepare meeting packs and circulates packs at borne geophysical surveys have been completed. The • Undertake biannual verification of the Asset Register to ensure there is balanceleast 7 days with before what’s the meeting on the ground and the Register since this has an Zimbabwe National Road Administration quality assurance and quality control programmes are 489implication Runiville, Glenroy on Crescentthe Financial Statements. • Takes minutes at all Committee and Board meetings • Highlands, Review Harare of depreciation charge and assets disposal computations to• ensureMaintains that assets an attendance values register, are andaccurate. a declaration of interest register running concurrently with the drilling programme and • Circulates minutes of the Board meeting within 2 weeks after the Board meeting to adhere to industry best practice,” Pouroulis said. • Assist the Audit Manager to ensure that the audit function is executed diligentlyenable members and accurately to attend to matters to assess arising any loses or potential loses to the “The shallow depth of the Main Sulphide Zone of the DIRECTORorganisation. TECHNICAL • Communicates Board resolutions to departments affected and on action items advises • JOB Drafting PURPOSE of Statutory Instruments in legal form in liaison with Corporate Secretary.departments on issues they are meant to action Great Dyke allows for initial open-cast mining before • Supervises preparation of venue, coordination of transport, accommodation, payment of developing the shallow underground workings. The position is responsible for planning, controlling, organizing, monitoring and evaluation of Board fees and allowances for Board meetings "The results from the assay work and metallurgical Education,maintenance andProfessional development ofQualifications road works, technically and finan Workcially Experience to ensure stakeholder • Maintains a register of all current and expired contracts. a) value. Degree in Finance or Accounting • Reviews contracts annually or if there are legal changes to be effected or if the contracts test work will be used as the basis of the next phase of b) Relevant Master’s Degree are coming up for a renewal. the project.” c) DUTIES Chartered AND RESPONSIBILITIES Accountant • Receives detailed instructions from the user departments for new contracts in writing He said subsequent stages would include on-going • Ensure submission of annual road maintenance programmes by Road Authorities. and holds a meeting to discuss the requirements. d) • ProfessionalCompute annual qualification funds allocation fore.g. Road CIMA, Authorities CIS, to ACCAfacilitate the attainment of • Carries out legal research by checking with the law on the type of contract to be drawn drilling, resource estimation and feasibility studies for e) MustZINARA’s have a mandate. minimum of 10 years’ relevant working experience as Finance upDirector, and the substance Head ofof legal Finance issues involved. or equivalent designation. the mine design, infrastructure and beneficiation plants. f) • CleanCheck class and 4approve driver’s submitted license road maintenance programmes so that Road Authorities • Draws up draft contracts where no issues have been raised with the contract and Meanwhile, Tharisa upped production in its lat- can access funds. circulates draft contract to parties involved for comments. • Monitor implementation of road maintenance works against planned proposals for • Prepares final contract for signing in adequate copies and retains original copy for est quarter as benefits from a restructuring of its plati- Applicationsadherence including to quality andCVs standards and certified and ensure efficient copies use of of certificatesfunds. should be submittedrecords and not makes later copies than4:30p.m. for circulation on to Friday user departments 25 October and other 2019 affected to: - num and chrome mine in South Africa started to come • Check acquittal reports for road works implemented to ensureDirector adherence Administration to standards and Humandepartment. Resources through. and quality. • Reviews and analyses and gives advice on contracts that have been submitted for Zimbabwe National Road Administration Tharisa said it remains confident of achieving its • Coordinate final evaluation of road maintenance programmes and capture489 Runiville,best practise Glenroy Crescentsigning and gives legal opinion on whether it should be signed or not signed. from work emerging from stakeholders (road authorities, contractors). • Cross checks with relevant Acts and Legislation to ensure ZINARA’s compliance on all Vision 2020 strategy of delivering 200 000 ounces per Highlands, Harare • Allocate and timely disburse road maintenance funds in consultation with the CEO. issues that affect ZINARA’S operations. year of PGMs and two-million tonnes a year of chrome • Researches into areas requiring legal advice and giving legal opinions. concentrates by the end of the 2020 calendar year. [email protected] The Financial Gazette October 10-16 2019 | Page 25 National News Zimbabwe’s milk output increases IMBABWE’S raw milk production in eight lion litres is the highest so far followed by In order to improve production, the months to August 2019 increased by 9,98 percent July output at 6,76 million litres. European Union (EU) is also supporting Zto 52,51 million litres, from 47,84 million litres However, February output is ranked a four-year equipment and infrastructure recorded in the same period last year, largely driven by the lowest at 5,95 million litres largely initiative targeting dairy farmers under increased contribution from heifer importation schemes. due to prevailing drought. the Zimbabwe Agriculture Growth pro- The country’s milk output has been consistently go- The country’s raw milk production gramme funded to the tune of about €2.1 ing up since the introduction of the Dairy Revitalisation was projected to grow by an average of million. Programme (DRP) in 2014, which saw players injecting 12 percent in 2018. The programme will see at least 1 000 over US$40 million towards boosting the heifer herd as However, despite surpassing the av- in-calf dairy heifers being distributed to well as upgrading processing plants. erage growth last year, Zimbabwe’s milk farmers on a revolving basis, while at Figures from the Agriculture ministry’s dairy ser- output was 38 percent below the nation- least 4 000 farmers will be capacitated. vices department shows that milk intake by processors al demand, with the gap being covered The dairy sector in Zimbabwe still increased by 11 percent to 47,7 million litres from 42,95 through imports. faces several obstacles such as high cost million litres in the comparable period in 2018. Production levels in Zimbabwe plum- of production, inefficient production sys- Milk processors in the country include Dairibord meted dramatically from the early 1990s tems and the unavailability of long-term Zimbabwe Limited, Nestle Zimbabwe, Dendairy, Alpha peak of 260 million litres with output av- funding. and Omega among other small players. eraging between 45 million and 60 mil- In addition, factors such as shortage of However, retailed milk by producers marginally de- lion litres of milk per year in the past few water and stock feeds as well as erratic clined by 2 percent from 4,89 million litres recorded in years, a figure still far below the national rains also impact negatively on produc- the prior period last year to 4,81 million litres. The country’s milk output has been going up demand of 120 million litres of milk per tion. — Staff Writer According to the figures, August output at 6,97 mil- since 2014. annum. [email protected] Syngenta launches early maturity maize variety

Nelson Gahadza Staff Writer

YNGENTA has unveiled an early Smaturity maize hybrid seed that is expected to cushion farmers from drought losses. This comes as the country and the region at large have been experiencing drought as a result of climate change, leaving millions of people food insecure. Vangelis Haritatos, Vangelis Haritatos the deputy Agriculture minister, said government has clearly spelt out the need to increase agricultural production and productivity in order to derive economic growth and recovery. “This this can only be achieved through use of high yielding and drought tolerant crop varieties coupled with effective agro chemicals,” he said at the launch of the new seed variety. The maize seed, SY5944, was launched concurrently with the Lumax Maize herbicide. “The two innovations have come at the most opportune time when the nation is preparing for the forth-coming 2019/20 growing season,” said Haritatos. He added that Syngenta continues to provide farmers and rural communities with integrated solutions to boost productivity by adopting higher yielding varieties to boost food security. “It is the first agro-business entity operating in- Zim babwe to introduce the integrated crop solutions concept, where farmers get all they need from seed, pesticides, insec- ticides, herbicides and grain protectants,” he said. Syngenta — a research and development company — invents crop protection chemicals and breeds hybrid maize, sunflower, vegetables, wheat and barley as well as soya beans. Such varieties bring important characteristics such as improved yields, drought and disease tolerance, higher grain quality as well as long shelf-life. “As part of these commitments, Syngenta in Zimbabwe trained 32 000 farmers in 2016, 40 000 in 2017 and 70 000 in 2018 on Good Agricultural Practices (GAP) — including the safe and responsible use of agro-chemicals. This is highly commendable,” noted Haritatos. “To this end, he added, the government is investing in dam construction for irrigation development; capacity building through training of agricultural science professionals who in turn train farmers; and development of sustainable financing schemes. Globally, an estimated 500 million smallholder farmers depend on rain-fed crop production, and they produce 80 percent of food consumed in developing countries. [email protected] Page 26 | October 10-16 2019 The Financial Gazette National News Exporters’ conference on next week

HE need to increase Zimbabwe’s exports will come under the spotlight when government, local export- Ters, industry players, academia, researchers and sector experts meet at the 2019 ZimTrade Annual Exporters’ Conference — to which The Finacial Gazette is a media partner — from October 17-18 in Bulawayo. President Emmerson Mnangagwa and several government ministers are expected to participate in the conference in efforts to boost the country’s exports and foreign currency earnings. “The conference, taking place under the theme, Rethink, Reform, Export! is set to discuss best approaches aimed at addressing challenges faced by local businesses. “It will also bring together local exporters and buyers from other countries to share ideas that will boost exports of local industries,” ZimTrade said. From issues raised during the Annual Exporter’s Con- ference, key outcomes that are industry-driven will be produced. These resolutions will inform engagement activities that ZimTrade will use to facilitate on improving Zimbabwe’s export capacity and the ease of doing export business. “In line with the devolution drive by the Government of Zimbabwe, this is the first time the conference is being held out of Harare and given the status that Bulawayo has as an industrial hub and the declaration of the city as a Special Economic Zone.” Delegates will also benefit from engagements with several regional and international speakers who have been invited to share their knowledge and experiences. Among the international speakers is Ashraf Mahate, a UAE-based trade and export market development expert. To expose local exporters to opportunities in international markets, the Exporters’ Conference will be followed by a Buyer-Seller meeting scheduled for 18 October. Export opportunities and entry requirements from different markets of the world will be presented by buyers from Botswana, Democratic Republic of Congo, Namibia, Mo- zambique, United Arab Emirates and United Kingdom. — Staff Writer [email protected] Nissan bets on a foreigner to steer revival ISSAN named the head of its Chinese business as its next chief executive on Tuesday, picking an Nexecutive known for close ties to top shareholder Renault and for a frank, straight-talking manner that has marked him as an outsider. By selecting senior vice president Makoto Uchida, Nis- san’s board has gone with someone slightly at odds with its traditional corporate culture. He joined the carmaker mid-career in 2003, a rarity in a country where top executives usually spend their entire working lives at the same company. Known for his unflagging work ethic and relentless focus on cost control, Uchida was described by one long-time associate who spoke on condition of anonymity as a “foreigner with a Japanese face” — direct and to the point in conversations. He will be joined by newly appointed chief operating officer (COO) Ashwani Gupta, currently COO of junior partner Mitsubishi Motors Corp, in trying to find new ways to revive a business that has been struggling for months with plunging profits, management scandal and tensions with Renault. Japan’s second-largest automaker has been shaken in particular by the arrest of former Chairman Carlos Ghosn last year on allegations of financial misconduct, which he denies, and the more recent departure of CEO Hiroto Saika- wa after he admitted to being improperly overpaid. Whether the 53-year-old former theology student can deliver a miracle turnaround — particularly at Nissan’s business in the United States — and repair ties with Renault will now be a focus for investors. “The biggest business challenge for Nissan is speeding up,” the head of Nissan’s nominations committee, Masaka- zu Toyoda, told a news conference. “Speedy decision making is a challenge that Uchida raised, and to this end he said that he wants to empower people as much as possible, so we decided to ask Uchida to take on the CEO role.” One source close to Renault described the selection as “a victory for the alliance”, saying that both Uchida and Gupta knew the business and were ready to help Nissan recover. — Reuters The Financial Gazette October 10-16 2019 | Page 27 Foreign News Samsung beats China Mobile eyes Cell C estimates as REPORT on Tuesday suggested China bile market, particularly in light of the Chinese voice and data operations, fixed broadband, Mobile may be about to swoop to the company’s deep pockets, technical expertise and other information and communications Arescue of embattled mobile operator and buying power. services, according to its website. demand picks up Cell C. Telkom is also rumoured to be circling. In an e-mailed response to a query from The China Mobile speculation comes less ITWeb, an online technology publication TechCentral, Cell C said: “We cannot com- than two weeks after Cell C said it had report- — citing an unnamed source who it said has ment on behalf of Telkom or China Mobile. ed an R8-billion net loss for the 12-month pe- for note, iPhone “knowledge of the matter” — said that talks Cell C will keep the door open to any conver- riod to 31 May 2019, much of which was the are taking place between Cell C and China sations that will assist the company’s future result of impairments. AMSUNG posted earnings that handily beat ana- Mobile and that a “deal is imminent”. viability.” Cell C is in advanced discussions with po- lyst estimates as stronger smartphone demand off- TechCentral could not immediately inde- China Mobile, which is ultimately owned tential funders, led by the Buffet Consortium, set price declines in the memory chip business. pendently determine the veracity of the report, by the Chinese government, is the world’s with a view to recapitalising the business and S Operating income was 7,7 trillion won (R98 billion) but has heard from several sources in recent largest mobile operator by subscribers. How- repairing its distressed balance sheet. in the three months ended September, compared with the weeks that Telkom may again showing some ever, the company hasn’t expanded aggres- Chief financial officer Zaf Mahomed said 6,97 trillion won analysts had forecast, according to esti- sort of interest in Cell C. Telkom CEO Sipho sively outside of its home market. in a recent interview with TechCentral that the mates compiled by Bloomberg. Maseko had said earlier this year that compa- The scale of its operations in China is company hopes to have the recapitalisation Still, that is a profit decline of more than 50percent ny was no longer interested in buying the mo- eye-watering: as at December 31, 2018, it ser- deal concluded before the end of the year. for the Suwon, South Korea-based company. bile operator. viced total connections of more than 1.6 bil- Cell C is also expected to announce a new Samsung, the world’s largest producer of mobile If the ITWeb report is correct, and China lion, had almost 460 000 employees and had roaming agreement in the coming weeks phones and smartphone displays, is benefiting from sol- Mobile does buy a stake in the operator — and annual revenue of 736.8 billion yuan (R1.6 with rival MTN South Africa that will al- id demand for its Note 10 and for Apple’s iPhone 11 Pro, especially a controlling stake — it could have trillion). low it to reduce its capital expenditure. which uses the company’s OLED displays. a significant impact on the South African mo- Its businesses primarily consist of mobile — NewsCentral Media Yet, the memory chip business has been its most profitable and uncertainties there have lingered because of the ongoing US-China trade war and Japanese restric- tions on the export of materials essential for chip and display production. IMF boss warns of ‘painful’ Brexit “It’s better-than-expected results as mobile business made a huge improvement,” said Park Sung-soon, analyst at Cape Investment & Securities. HE new head of the International Mone- Shares rose as much as 1,4 percent and had climbed tary Fund (IMF) has warned that Brexit in 23 percent this year through Monday’s close. Twhatever form will be “painful”, adding Sales for the third quarter were 62 trillion won, beat- to the effects of a global slowdown. ing the average projection compiled by Bloomberg of Kristalina Georgieva said the split will hurt 61,14 trillion won. not only the UK and European Union, but also Samsung won’t provide net income or break out di- low income countries with economic ties to visional performance until it releases final results later them. this month. IMF data show that growth has already Samsung’s new high-end smartphones, including the slowed in almost 90 percent of the world. Galaxy Note 10 and Galaxy Fold, helped cushion profit “It is very obvious that this (Brexit) is going declines in the memory business. to be painful,” she told the BBC. Its display business is recovering from a slump, with Georgieva said UK politicians will have to strong demand for OLED displays for smartphones such figure out how to shield people hurt by Brexit — as Apple’s iPhone 11. but the options available to fund those measures The volatile business environment due to the US-Chi- are limited. na trade war and South Korea-Japan spat has fuelled un- “The choices are not that many — you either certainties and made it harder for the market to gauge borrow or you look at the (tax) increase,” she demand. said. As Japan’s export curbs on key materials used in Georgieva, who spoke to the BBC ahead of chips and display production kicked in early July, cli- the IMF’s annual meeting in Washington next ents raised their inventories of memory components to week, said the IMF is also concerned about the minimize risk, according to a note from TrendForce on effect of Brexit outside of the UK. September 26. “I particularly worry about low-income “The stock-up demand was stronger than expected countries that are in a significant way dependent this third quarter due to the seasonal tailwinds and the on the European Union and the UK,” she said. pulling forward of end product shipments ahead of a “Unfortunately this is not great news,” she possible new round of US tariff increases in December,” said of Brexit. “And it comes at a time of com- said TrendForce. pounded other factors that slow down growth.” “Consequently, the overall trend of contract prices The US and China are locked in a trade war also shifted from decline to stability during the third over state subsidies and technology theft that quarter.” has led the two sides to impose tariffs on billions Analysts raised operating profit estimates in recent of dollars worth of each other’s goods. weeks as dynamic random-access memory shipments US president Donald Trump has also picked improved in the third quarter. fights with allies such as Europe and Canada Citi estimated Samsung would report semiconductor over cars, steel and aluminium. profits slightly higher than its previous estimates, sup- The disputes have brought trade growth to ported by a 30 percent increase in DRAM shipments a “near standstill” and hurt manufacturing and quarter-on-quarter, despite a 20 percent drop in DRAM business investment, Georgieva said. Kristalina Georgieva prices. In 2020, the IMF predicts that they will Concerns over the impact on the production of chips knock almost 1 percent off of global growth in and displays have eased among some market watchers as The White House has said the tariffs are “That is not a good excuse if you can say, 2020 — or roughly $700 billion. Japan approved shipments of key materials to Samsung. meant to force China to change its policies and you know what, I’m a loser, but you’re a bigger “What is most significant is that it is not the Liquid hydrogen fluoride — a highly purified chemi- dismissed concerns about growth, arguing that loser than me,” Georgieva said. direct impacts of tariffs that are most harmful. cal used to refine chips in production — has not been ap- any harm to the US pales in comparison to the “I don’t think that this is what people expect Most harmful is the loss of confidence,” Geor- proved for shipment to South Korea so far, but multiple damage on China. from leadership.” — BBC gieva said. reports and analysts indicate a local supplier may be able to provide substitutes. “Although DRAM and NAND demand is recovering and shipments in the third quarter were quite robust, there is scepticism about the sustainability of the SA treasury irregular spend hits R1bn demand upturn,” said Sanjeev Rana, technology analyst at CLSA. With the trade war issues hanging over the tech in- TATE entities falling under Nation- 16 entities reporting to National Treasury cent of the auditees. dustry, Micron Technology Inc. warned that the tensions al Treasury incurred a combined R1 went from R960 million in the 2017/18 fi- “When it comes to supply chain man- may prolong a memory-chip industry slump and gave a billion in irregular expenditure in the nancial year to R1bn in the 2018/19 financial agement, we found that contracts awarded disappointing profit forecast. S Despite the cautious outlook, investors are growing 2018/19 financial year, Parliament’s Stand- year. differed from original invitations for bidding ing Committee on Finance heard on Tuesday. “The biggest contributor of irregular ex- and contracts extended or modified without more bullish on Samsung amid hopes for an end to the The committee was addressed by a dele- penditure was National Treasury itself and approval of a delegated official,” Kestlmeier. slide. gation from the office of the Auditor General. SARS. Irregular expenditure incurred by Kestlmeier said instability and prolonged “As inventory de-stocking cycles end at major cus- Irregular expenditure, according to the National Treasury amounted to R466 million vacancies in key positions had the potential tomers, we expect the memory industry to enter a re- Auditor General’s auditing standards, is and R454 million was incurred by SARS,” to cause competency gaps and that this had a covery stage in 2020, while the magnitude of recovery any expenditure outside of the procurement Kestlmeier said. negative effect on audit outcomes. will be more gradual (especially for DRAM) relative to guidelines, even though goods or services Kestlmeier said the majority of the ir- Over the past five years, the audit out- previous upturn cycles,” J.P. Morgan said in an October were received. regular expenditure was caused by a lack of comes in the National Treasury portfolio 3 note. Liezl Kestlmeier, senior manager at the proper adherence to procurement processes. regressed from 44 percent unqualified audits In the third quarter, contract prices for 32-gigabyte Auditor General SA, told the committee that Kestlmeier said uncompetitive and unfair with no findings in the 2014/15 financial DRAM server modules fell 13,8 percent compared to the combined irregular expenditure for the procurement processes were found at 47 per- year to just 25 percent in 2018/19. — Fin24 the previous quarter while those for 128 gigabit MLC NAND flash memory chips rose 12,3 percent, according to inSpectrum Tech. — Bloomberg Page 28 | October 10-16 2019 The Financial Gazette National News Innscor to enjoy moderate growth Adelaide Moyo ens in South Africa and Zimbabwe. Staff Writer Probrands, Probottlers and Prodairy registered notable growth in volumes of 34 percent, 52 percent and 76 per- NNSCOR Africa (Innscor) will continue to enjoy mod- cent in line with the product diversification strategy. erate growth in volumes despite the current economic Total assets increased 240 percent sustained by the re- Ienvironment characterised by inflation and weak con- valuing of Property, Plant and Equipment (PPE), biolog- sumer spending, a local equities advisory firm has said. ical assets, investments and foreign monetary assets at a “We anticipate volumes to marginally improve due rate of USD/ZWL — four subsequent to the reintroduction to the higher base effect whilst revenue grows 83,5 per- of the local currency. cent to $2,36 billion as inflationary pressures sustain The rebasing of the assets resulted in an increase in eq- price increases and volumes in full year 2020. We project uity through the creation of a change in functional curren- EBITDA margins to soften as consumer incomes remain cy reserve of $399,42 million. subdued whilst cost of production increases,” said IH Se- EBITDA grew 234 percent to $258,02 million outpac- curities (IH) in a recent note. ing the growth in revenue as the group realised improved The Protein segment experienced growth across Colcom, AMP and Irvine's. Innscor reported a 390 percent increase in profit after margins from an improved product mix, a strategic pro- tax to $238,84 million during the year ended June 30, 2019 umes within the Maize and Stockfeed divi- growth across Colcom, AMP and Irvine's, curement methodology, lag in some operating expenses compared to $48 million in prior comparable period. sions, offsetting an eight percent decline in with notable growth in table eggs of 81 and growth in volume and market share. Revenue was 104 percent higher at $1,286 billion bread volumes. percent post the full recovery of Irvine's Fair value adjustments on livestock and listed equities compared to $631,282 million in line with volume growth Profeeds also increased its volumes of from the avian influenza. contributed $41,39 million from $0,96 million amidst the across most business lines. feed and chick sales up 35 percent and 23 Between May and August of 2017, the introduction of a local currency and increase in livestock National Foods recorded a 12 percent increase in ton- percent, respectively. lethal and highly contagious flu hit the re- inventory within the protein segment. nage to 610,800 tonnes sustained by the growth in vol- The Protein segment experienced gion, killing more than one million chick- [email protected] Zim spends US$23m on power importss

IMBABWE’s cash-strapped government is spending US$23 million every month to im- Zport electricity from South Africa and Mo- zambique to alleviate the current power crisis. The Zimbabwe Energy Regulatory Authority (ZERA) yesterday said the national power utility successfully negotiated for increased electricity imports from Eskom and Hidroeléctrica de Cahora Bassa (HCB) based on prepayment terms with the provision that outstanding arrears need to be paid on a consistent basis. Zimbabwe is currently importing 400 mega- watts (MW) from Eskom and 100 MW from HCB. “The total monthly import requirements from external sources are about US$19,488 million. The figure goes to about US$23 million when wheeling charges are included,” ZERA said in a statement. This was after the authority had approved a 320 percent electricity tariff increase to $162,16 per kWh effective October 3, 2019, up from $38,61 per kWh — pegged in August. About two months ago, various stakeholders agreed that the previous tariff of US$0,01 was un- viable as the power utility was struggling to supply enough power to the productive sectors leading to long hours of load shedding. Local electricity production has been subdued due to low water levels at Kariba power station. The Hwange power station has been unreliable due to the deferred maintenance which requires US$3,1 million. Besides the approval of a tariff increase, ZERA also approved electricity sales to consumers of 1,8 billion kWh for the period October to December 2019 and a revenue requirement of $2,9 billion for the same period. “The actual tariffs recognise the need to cushion the domestic customers as well as the agricultural sector. In the domestic sector, the lifeline band covering 50 units is still maintained at a price of $0,41 per kWh. There is also a special tariff structure for agricultural customers as a way of cushioning that sector.” With the approval of the new tariff, ZERA expects a significantly improved electricity supply position from the Zimbabwe Power Company as the firm can procure enough coal stocks. The regulator is also expecting reduced load shedding hours and improved reliability of supply from the Zimbabwe Electricity and Transmission Distribution Company as the firm is now able to import electricity from the Southern African Power Pool. — Staff Writer [email protected] The Financial Gazette October 10-16 2019 | Page 29 Page 30 | October 10-16 2019 The Financial Gazette The Financial Gazette October 10-16 2019 | Page 31 National News BAT Zim Zim’s telecom trends worrying HE Postal and Telecommunica- cuts lasting as long as 16 hours a day. appoints tions Regulatory Authority (Po- Operating costs increased by 25,7 Ttraz) has just published the sector percent in the second quarter of 2019, to performance report for the second quarter $233,7 million from $185,9 million in the of 2019. previous quarter. While a cursory reading of the report But that does not tell the entire story. might show some numbers, which mask That cost containment could be Kimesh Naidoo the creeping malaise in the sector, a deep- achieved at the expense of network qual- new MD dive reveals worrying trends that raise ity is a concern. Paul Nyakazeya serving our customers, growing val- ence across the fast moving consumer legitimate questions about the long-term Tucked inside the report is a sharp 93 Group Digital Editor ue for our shareholders and creating goods sector, both operationally and viability of the industry. percent decline in capital expenditure, re- a great working experiences for our technically, from his time at British Of particular concern is the status flecting the foreign currency crisis. Only RITISH American Tobacco employees,” he told The Financial American Tobacco South Africa and of mobile network operators (MNOs), $1,58 million was spent on capital ex- Zimbabwe (BAT) has ap- Gazette. before that at AB InBev South Africa namely Econet Wireless, NetOne and penditure in the second quarter of 2019, pointed South African Kimesh “I really look forward to this new (formerly South African Breweries) Telecel. compared to $22,98 million the previous B Although MNOs’ revenue grew nom- quarter. Naidoo as the company’s new manag- chapter of my career.” both at senior management level.” ing director with effect from October Naidoo is coming at the time the “…Nyabadza who acted as interim inally by 50,1 percent to $375 million At least 65 percent of MNOs’ costs 22. company is experiencing a fall in managing director during this transi- from $249,9 million in the previous quar- are foreign-currency denominated. The Naidoo takes over from Clara volumes. Volume across the business tion period, returns to his substantive ter, this growth significantly lags behind firms continue to struggle with both Mlambo who stepped down on June portfolios decreased 20 percent driv- role in BAT Southern African Markets inflation. sub-economic tariffs as well as failure to 30 this year to join Liquid Telecom. en by reduced consumer disposable (which includes Zimbabwe) as the The three MNOs’ combined revenue access foreign currency. Steven Nyabadza, BAT’s company incomes. senior manager: legal and external af- for the second quarter of 2019 shows a The long-term effects of MNOs’ secretary, has been the acting manag- Requirements to pay duty in for- fairs. He had been tasked by the board 28 percent increase from the same peri- failure to maintain and upgrade their ing director since July. eign currency have also negatively to manage the transition and has now od last year, when revenue was $292,9 networks are too ghastly to contem- Naidoo is expected to immediately affected BAT’s premium brand, Dun- returned to his role. The board is grate- million. plate, but the current state of the national focus on reviewing the brand portfolio hill, lowering volumes by 87 percent ful for his commitment and leadership This increase is considerably lower power utility ZESA should be a sobering to ensure that it remains consumer rel- given the obtaining foreign currency during this transition period,” he said. than the 175,66 percent inflation recorded reminder of the damaging impact of un- evant and to align the company’s cost shortages. Naidoo is a qualified chartered between June 2018 and June 2019. der-investment in critical, national ser- structures to the current realities in the Lovemore Manatsa, BAT’s chair- accountant with the South African The Potraz report shows how MNOs vice provision sectors. market so that the business remains man, told The Financial Gazette Institute of Chartered Accountants have largely managed to contain costs, MNOs have also not been spared the competitive. that the board of directors appointed with over 11 years in financial man- even as inflation surged and at a time effects of collapsing aggregate demand. “I look forward to working close- Naidoo after a “thorough and rigorous agement, audit, sales and customer in- when huge amounts were spent on pro- Mobile data usage declined by 8,2 per- ly with the talented leadership team selection process”. teraction in the fast-moving consumer viding back-up power to keep their net- cent, the first decrease in one and a half and exceptional board of directors we “…Naidoo is an outstanding lead- goods industry. works running during the ongoing elec- years. — Staff Writer have in this company, in driving and er who brings with him wide experi- [email protected] tricity crisis, which has seen daily power [email protected]

For theFor weekthe week ending ending 13 9 MarchOctober 20120199

For the week ending 13 March 2019 The Financial Gazette October 10-16 2019 | Page 32 News Role of parliament in mining contracts HE utilisation and exploitation of ural Wealth and Resources Contracts (Re- mineral wealth in any country is view and Re-negotiation of Unconsciona- Tundertaken under the administration ble Terms) Act of Tanzania goes on to spell and direction of the presiding government. out the expected role of Parliament in the It is acknowledged that these gov- finalization and oversight of any contracts ernments act in a representative capacity relating to natural resources. having been tasked as stewards of and on This Act gives Parliament the mantle behalf of their citizens. to review and make recommendations of International law reiterates this duty existing contracts and the terms being ne- through the United Nations General As- gotiated in any current contracts prior to sembly Resolution 1803 which emphasizes finalization. Any terms which are found to state sovereignty over its natural resources be unfair or likely to jeopardize the interests and the mandate for such resources to be of the country will be referred for re-nego- used in the furtherance of national interests tiation or alternatively be expunged if they and development and for the well being of cannot be renegotiated. Whilst the review the people of the state concerned. of contracts can bring about great appre- Therefore, every time a government hension to existing companies, it should be negotiates on a mineral resource project viewed by the industry as an opportunity to or structures policy for the exploitation, address and level issues that currently poses sale and use of natural resources they are serious political and social risk to business The Portfolio Committee on Mines and Energy is tasked with superintending over the goings-on in the sector. doing so as an agent and with the ultimate interest. purpose of unlocking benefit and develop- As discussed above, tensions have been public however, the Parliament is the most Wealth and Resources (Permanent Sover- ment for all its citizens. While governments directly influencing the rules that guide the steadily been rising over socio-economic is- effective and wide reaching vehicle that can eignty) Act makes the important declara- generally act in a representative capacity at mining sector, it is not always afforded the sues in the mining sector. Thus, while there collect and consolidate the views and aspi- tion that government is only a steward of all times, their role as agents in the mineral space and definitive mandate to proactively is sound international jurisprudence for in- rations of citizens and further enforce these natural resources for and on behalf of the resource sector is a scenario of special note oversee particular aspects of critical deci- sulation against material variations that fun- aspirations into the regulatory and gover- people of Tanzania. This position reinforces because they preside over assets that are sions that are made by the Executive. damentally alter the rights and obligations nance framework of the State. the basis of accountability and ensures that non-renewable. Once a deposit is extracted, The ethos behind the principle of the within contracts, it is not prudent to refuse One of the duties of Parliament is to current and future governments are remind- disposed and depleted its potential cannot separation of powers is that different arms good faith re-negotiations because it merely keep an eye on actions of the State. In order ed of the duty to actualize and prioritize the be revisited. that make up the state, that is the Executive, escalates political, social and economic risk to effectively undertake this wide ranging aspirations of its people through its natural Each deposit embodies a single chance the Judiciary and Parliament, are separated to commercial interest. function of oversight Parliament usually resources. of maximising the potential and benefit that and run independently in order to act as This being said, it is important for gov- constitutes “Portfolio Committees” that It’s always important to re-state this can be derived from its existence. Follow- window for checks and balances, constant- ernments not to wield such powers in a shadow and cover every area presided over seemingly obvious point. If left unstated it ing the same, it is important to review the ly watching over the other. manner that undermines the stability of the by designated Ministries. is easy for administrations to lose sight of capacity of citizens to influence the deci- This function of oversight should be sector. Such powers should not become a Through these Committees, Parliament the duty to ensure that ordinary citizens can sions made by government in managing emphasized in the mining industry because tool of selective application and opportun- can review the actions of government and always positively relate to the benefits of the sector and how such views can be suc- of the nature of the sector and the magni- ism by governments, any issue that requires make recommendations on improving mineral resources and for the need to deliv- cessfully integrated into the sectors devel- tude of potential loss to current and future re-negotiation has to be executed in accord- governance workings and systems. For er products of wealth that transcend gener- opment trajectory. generations when the country enters bad ing to the principals of fairness, certainty, instance, in Zimbabwe, the function of ations. The Act further states that all organs, A presumption normally exists that deals or rolls out bad policy. uniformity and with the good faith. watching over the mining industry is tasked persons or authorities exercising executive, governments at all times know and can in- The ethos behind the power should be with the Portfolio Committee on Mines and legislative and judicial functional shall be terpret public interest, or that the solutions to reorganize the industry for long term vi- Energy. required to take cognizance of the provi- they proffer will satisfy public aspirations. ability and not for short term revenue op- The Committee has been very active sions of the Act. However, the tensions’ popping up in portunities. Indeed this is where most states in its function of trying to shape the social, In particular, to always prioritize the the mining industry between communi- have failed, the mining sector has in some economic and governance issues in this interests and indelible rights of the people ties, governments and companies in Africa instances been utilised to answer short to sector. A number of hearings have been of Tanzania in any arrangement concerning shows that there may have been a lapse of medium terms problems. conducted over the last few years that have the exploitation and development of natural relatedness at some point. Indeed even the This has weakened the ability of gov- taken government to task over certain ad- resources which resources should be used strong emergence of the artisanal sector on ernments to provide stable and certain en- ministrative and executive decisions in the Selina Zhuwarara for the furthering of the independence and the continent shows that the industry re- vironments because the regulatory frame- mining industry. Mining Consultant self reliance of the country. quires re-structuring. work is constantly changing in response However, It is my view that the powers Considerable criticism has been raised There have been various efforts to re- to commodity prices and immediate fiscal of Parliament to investigate and constitute over the potential impact of various restructure the industry which have record- To date the performance of the mining pressures. It is important for any mineral Hearings is primarily retrospective and source nationalist initiatives that Tanzania ed moderate to weak improvement. An sector in Africa and its impact on the attain- resource regulatory framework to visual- should be coupled with mandatory author has made over the last three years; however important question therefore emerges as - ment of broad based development has been ize and define the industry in terms of the it is important to look beyond the procedur- to whether the pool for ideas and minds ity to have oversight and participate and weak and part of that weak performance is nations long term goals, this will produce a al and technical provisions to give thought structuring the industry should be further influence the process of crafting policy and owing to governments not opening up the stable foundation that can adequately bal- to the trend of thought that is now prevalent expanded to give citizens a more definitive in the review of mining contracts prior to platform for wider views and ideas into the ance current and future needs and cater for in many mineral rich countries in Africa. chance to share and influence the sector. It finalization by the State. At this stage Par- management of the industry from their own commercial stability. It is important identify that there is an is strong contention that it may be worth- liament can have sight and proffer advice in people. The position taken by Tanzania to allow acknowledged consensus that mineral while for governments to acknowledge that relation to various issues such as the appro- Given that Parliament is the ultimate ex- the disclosure of mineral resources con- citizens require better insight and space to priateness and adequacy of the commercial, pression of public representation; it should wealth has not achieved what is should for tracts is an important first step in avoiding proactively influence the industry in order social and environmental provisions being be afforded the opportunity and space to these nations and has actually developed in the sadly common fate and damaging his- for policies to speak and offer answers to bargained. infuse its view and recommendations into a manner that has left a feeling of discon- tory of bad deals in mineral rich countries. the questions, problems and aspirations of It is important to recognise that policy, continuing processes that shape and set the nection and alienation of ordinary citizens It promotes accountability and reinforces the day. laws and legal instruments concluded in the tone for the sector. There is more room for in its workings or wealth. governance mechanisms that are inclusive. One common feature of any democratic furtherance of commercial interest in the Parliaments to play a stronger role in en- Following from the same, frustrations Encouraging the proactive participation system of governance is the existence of a sector all together represent the foundation suring that there is inclusive and efficient have increased and a fundamental shift of Parliament presents the strongest surety Parliament. A body that is made up of elect- of any mining sector. Structured purpose- governance of the sector. There are very in mind set and governance has become in ensuring that public interest is effectively ed officials representing all the constituen- fully these instruments have the ability to few mechanisms that can efficiently and necessary. This pressure on governments defined and represented in the running of cies and the electorate within a country. In drive economic and transformative devel- effectively impart instruction and guidance to deliver fundamental change is not only the mining sector. other words, this is the closest an ordinary opment however; when they are ill-struc- from public interest and sentiment in the necessary for economic stability but has This does not mean that other initia- citizen can have a front seat to actively con- tured it results in a dysfunctional frame- manner offered by the structures and pow- become critical for political and social sta- tives for accountability are less important, tribute and participate in governance struc- work that stifles the ability to harness and ers of Parliament. bility as well. these should promoted and continue to be tures. In an ideal scenario there is timely maximize the potential of possessing min- In 2017 Tanzania enacted two import- It is inevitable that mistakes and adjust- entrenched with the backing of public and feedback from the electorate through their eral wealth. It is therefore important to get ant pieces of legislation, the Natural Wealth ments will be made during this movement private resources. representatives such that the functions of these basic instruments right from the onset and Resources(Permanent Sovereignty) for change however, is important for the However giving an additional arm of House are always guided by the matters in order to achieve effective utilization of Act and the Natural Wealth and Resources minerals industry to acknowledge, embrace the State the space to oversee the mandate of the day. There are various methods that mineral resources. Whilst Parliament has Contracts (Review and Re-negotiation of and anticipate these changes so as to guide over mineral resources widens the pool of can be utilised to mobilise the views of the the sacrosanct role of legislating, therefore Unconscionable Terms) Act. The Natural them towards sustainable goals. The Nat- ideas that influences the sector. India to become net iron-ore importer NDIA is poised to become a net were expiring on March 31, 2020. (Regulation and Development) Act India was last a net importer of Limited (SAIL), free merchant sale of importer of iron-ore during the next However, with delays in holding (MMDRA) was promulgated in 2015, iron-ore in 2015, when the MMDRA iron-ore from its captive mines. Ifinancial year, as the domestic mar- the auction process looming large, the auctions had been made mandatory for was put into force. According to an official, to ensure ket shifts from surplus to deficit. domestic iron-ore market was critically the allocation of all mineral assets. The country imported 10,6 million raw material availability of domestic Supply-side disruptions could lead poised to enter a deficit market over the However, the Indian mining indus- tonnes during 2015/16 and exported steel mills, SAIL would be allowed to an estimated deficit of about 50 mil- next few months. try has put the blame squarely on man- 4,3 million tonnes during the financial free merchant sale of iron-ore up to lion tonnes during 2020/21, forcing “We are facing a bleak situation. datory auctions, maintaining that it is year. During 2018/19, the country ex- 25 percent of its production from its imports of between 25 million and 30 If we cannot produce, we will have to the best practice and that ‘first-come, ported 18,3 million tonnes, while im- 20 captive iron-ore mines, for the next million tonnes a year. import,” FIMI secretary general R K first-served’ is a more efficient process ports were recorded at 15,89 million two years. According to the Federation of In- Sharma said.“This year, everybody is for allocation of such assets. tonnes. SAIL operates 20 iron-ore mines dian Mineral Industries (FIMI), state trying to extract as much as they can. “The auction has been a total failure As a palliative to the imminent across Odisha, Jharkhand, Chhattisgarh governments of iron-ore-bearing states But we don’t know what will happen and even after three to four years many shortage of iron-ore, the Mines Min- and West Bengal, producing an aver- were scheduled to put up for auction after March 31, 2020,” he said. of the projects so awarded are far from istry last month permitted State-run age 28-million tons a year of iron-ore. 48 iron-ore blocks where mining leases Since the Mines and Mineral production,” Sharma said. steel producer, Steel Authority of India — miningweekly Life & ArtsNews Worth Knowing October 10-16 2019 Page 33 Fluffy pancakes @ The Hub in Chisipite he invention of the wheel goes nanotechnology, 5G and 3D can only and tomato. Looks can be deceiv- back to the stone age, when a increase. ing, and the beef pattie was tough Tcanny workman fashioned a sol- Just off busy Hindhead Road in Chi- and dense. The addition of a few id wooden disk to be used as a potter's sipite is The Hub, a small collection of breadcrumbs or crushed cream wheel. Evolving for use in the automo- busy enterprises in an attractive set- crackers, although not included in tive industry, the wheel now has a cen- ting, shaded by msasa trees. Coffee @ the traditional patttie mixture, tral part known as the hub. the Hub, a newly-opened coffee shop would have created a lighter, more While a functioning hub keeps a car looking onto a green lawn overhung by tender texture. running smoothly, focal points and purple Jacarandas and flowering George, who loves burgers in centres of activity, also known as hubs, shrubs, is owned and managed by Del- any guise, offered to exchange my are attracting people to a variety of ac- marie, who in a previous life, worked burger for his cajun chicken wrap tivities all around Harare. for a coal merchant. Delighted with her ($46). Although the wrap was Moto Republik, a new creative hub, new occupation, Delmarie greeted and slightly doughy, the well-seasoned is set to open next month in Harare. chatted to the many patrons arriving cajun chicken and fresh, ripe avo- Sam Monro, the founder of Moto Re- for lunch on a busy Saturday afternoon cado filling was delicious. publik, says this exciting space with last week. There are very few restaurants high speed internet will give artists, in Harare capable of serving deli- creative entrepreneurs and journalists a cious chips. When I asked Chef place to meet, work and exchange A Matter of Taste Donni why some of the chips ideas. It will also have a cafe to provide served with my burger tasted raw, the sustenance and relaxation workers with he explained the difficulty of lo- require to stimulate their creative pro- cally sourcing top quality pota- cesses. Charlotte Malakoff toes. It has been reported that On another level, Impact Hub Hara- Zimbabwean researchers partner- re, based in Baines Avenue, is part of a ing with Korean scientists at global network around the world. De- Chef Donni, aka Donovan Layton, SIRDC have come up with a hy- scribing itself as an 'innovation lab', it is the newly-appointed chef. After brid seed potato resistant to dis- aims to shape local communities in graduating from The Culinary Arts eases. The countrywide quality of positive ways, including raising aware- Academy in Harare, Chef Donni gained potato production could be about ness for neglected tropical diseases experience in restaurants in Montecasi- to improve. such as bilharzia and river blindness. A no in Johannesburg. Back in Harare, he For dessert we shared a plate of birth certificate acquisition project run made use of his skills in Cordon Bleu Scotch pancakes ($25), prettily by Impact Hub in Bulawayo has helped cookery during a stint at Emmanuels garnished with strawberries and numerous under-privileged individuals fine dining restaurant at The Bronte blueberries, with a jug of Rosella have the means to take control of their Hotel. After two years as resident chef syrup and a small container of lives. for the American Ambassador, it was cream on the side. Freshly-made Focusing on STEM (science, tech- time for a change, and he moved to the and fluffy, these were garnished nology, engineering and mathematics) small but busy kitchen at Coffee @ The with popped amaranth seeds and subjects, the Zimbabwe government Hub. served with a hot and aromatic has opened six innovation hubs at state Beef Burger with chips ($60), cho- cappuccino ($23). Scotch pancakes at Coffee @ The Hub universities around the country. En- sen from a menu of light meals, looked After visiting Coffee @ The couraging innovation and technical ad- the real deal. A nice-sized beef pattie Hub, take time to look in on well- Indian spices, tasty delights and cake shop and an estate agent vances, the latest hub was recently inside a large, fresh bun, was garnished stocked Casa Fina for all your fab- fresh vegetables. In addition, a make The Hub in Chisipite one of opened at UZ. Given time, the number with bacon, caramelized onion and ric and interior decorating require- hairdressing salon, a wine mer- the busiest places to meet. of Zimbabwean experts in robotics, AI, melted cheese, and layered with lettuce ments, and Sugar and Spice, for chant, a picture framing gallery, a Comments to: [email protected] Benefits of being financially literate

HORT-term lender Wonga recently towards saving so that they can start to move asked over 1 000 of its customers about beyond a hand to mouth existence with some S their attitudes towards money. cash in the pocket for emergencies. It found that, despite 88 percent believing If you want to improve your financial lit- that financial health was “extremely import- eracy, there are free online learning resources ant”, most (66 percent) claimed to have only available to help you take better care of your an amateur knowledge of money manage- money: ment. *The Money Academy is a learning portal “Financial literacy is key to financial with video lessons and quizzes that teach you health. It can help people to manage their about the four pillars of personal finance: money better, to ensure that they prioritise debt, saving, budgeting and investing. their spending where it's needed most. 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It is fun Saving also helps achieve the goals that ing so that you can access credit when you to spare, it can also help them allocate money and engaging. – IOL CHELSEA striker, Tammy Abraham says England are prepared to walk off the pitch if they are targeted by racist abuse in their Euro 2020 qualifiers this week. England face the Czech News Worth Knowing Republic on Friday — then play Bulgaria on Monday in a partially-closed stadium because of Sport fans' racist behaviour in June. Page 34 October 10-16 2019 SPORT SHORTS Typhoon threatens World Cup THE Japan Meteorological Agency (JMA) confirmed on Wednesday a category five super typhoon remains on course to hit mainland Japan at the weekend, which may disrupt the Japanese Grand Prix and a series of key Rugby World Cup games. Category five is the highest category of typhoon, with sustained winds of 157mph or higher. The JMA projects Typhoon Hagibis could be "the strongest to hit Japan this year", with high winds and heavy rain set to reach southern Japan on Saturday. An earthquake measuring 4.6 on the Richter scale was also felt in Japan around 4 am ET on Wednesday, with the epicentre located near the Izu Islands. The Japanese Grand Prix is scheduled to take place at the Suzuka circuit, south-west of Osaka, meaning both qualify- ing and the race itself could be impacted. —espn Motsepe eyes top rugby team WITH South Africa having all but secured a place in the quarter-finals of the Rugby World Cup in Japan, two of the sports-mad country’s richest people may buy the Blue Bulls rugby team, which regularly provides more than its fair share of players to the national side. A tweet of support for Hong Kong protesters, sent by Houston Rockets general manager Daryl Morey, elicited a flurry of apologies and a wave of criti- The Blue Bulls Rugby Union has received a joint offer cism, both of Morey and of the league’s response. Rockets star players James Harden (with beard) and Russell Westbrook have apologised over the tweet from Remgro, the investment company of Johann Rupert, and said they loved China. — Graphics by clutchpoints.com and African Rainbow Capital Investments, which is backed by Patrice Motsepe, Johannesburg-based Rapport reported, citing the union’s president, Willem Strauss. Remgro already owns half of the Blue Bulls Co. together with the Blue Bulls Rugby Union. The deal will see Rem- gro reducing its share to 37,45 percent and Motsepe’s ARC taking up 37,45 percent, giving the two businessmen a con- NBA loses sponsors as trolling stake in the Pretoria-based side. Motsepe, the country’s richest black person also owns Mamelodi Sundowns, a top soccer team in the country’s premier league. – Moneyweb China flexes muscles Ibrahimovic statue in Sweden A STATUE of former Manchester United striker Zlatan HINA is flexing its economic muscle for po- challenges mount on various fronts. A trade war is “values of equality, respect and freedom of expres- Ibrahimovic has been built in his hometown in Sweden. litical ends, with more local sponsors of the exacerbating a slowdown in its $13,6 trillion econ- sion” in its most promising market. Tencent, which The bronze structure, commissioned by the Swedish FA, National Basketball Association’s mainland omy, while pro-democracy protests in Hong Kong holds digital broadcast rights for NBA games in was unveiled in front of hundreds of fans outside Malmo's C stadium on Tuesday. events suspending their ties with the league over a are raising questions about its ability to control the China, said 490 million users watched one or more tweet that backed Hong Kong’s protesters. semi-autonomous territory. That made the now-de- games on its platforms in the 2018-19 season, triple "No matter where you come from, where you are, no Following Tuesday’s decision by China’s state leted tweet by Daryl Morey, general manager of the number from four years ago. matter what you look like, the statue is the symbol that any- television and tech giant Tencent Holdings Ltd. to Houston Rockets, particularly inflammatory to Bei- The league’s position also stands in stark contrast thing is possible," said Ibrahimovic. not show pre-season NBA games, the country’s larg- jing. The Mengniu Group, which owns a dairy com- to brands from Versace to Calvin Klein that were The 38-year-old scored 62 goals in 116 games for Swe- est sportswear maker and the second-biggest dairy pany and is a long-time NBA marketing partner, said forced by an army of Chinese internet users to apol- den between 2001 and 2016. The statue, created by Swedish firm joined in distancing themselves from the US in a statement Tuesday that it “resolutely opposes all ogize this year for wrongly labeling Hong Kong as a artist Peter Linde, is 8ft 9in tall and weighs almost 500kg. organisation. Smartphone maker Vivo said it was words and deeds that challenge China’s national sov- country, and not as a Chinese city. Ibrahimovic started his career with Malmo before going on pulling out, while Master Kong, a maker of instant ereignty and endanger China’s social stability.” Cathay Pacific Airways Ltd. has come under in- to play for Ajax, Juventus, Inter Milan, Barcelona, AC Mi- noodles and beverages, said it ended all NBA-linked Anta Sports Products Ltd., a rising sportswear tense pressure to crack down on its employees after lan, Paris St-Germain and United. marketing activities. and sneaker firm that signs NBA stars as brand am- some workers participated in the Hong Kong march- He moved to the United States to play in the MLS in In the latest China controversy involving the bassadors, said Morey’s tweet was “wrong.” es, leading to the exit of its two top executives. 2018. There is also an Ibrahimovic effigy at the Grevin wax NBA, Beijing is resorting to a time-tested strategy of Luckin Coffee Inc., a local rival to Starbucks The NBA’s woes in China also revive memories museum in Paris. – bbc.com targeting businesses it deems to challenge its politi- Corp., also suspended all cooperation with the of the wrath faced a few years ago by brands from cal interests — especially those questioning its sov- NBA’s local events. Ctrip.com International, an on- Hyundai Motor Co. to Amorepacific Corp., which Osaka eyes one more trophy ereignty over certain territories. line travel agent, said on its Weibo account that it was saw their sales plunge from a boycott. K-pop perfor- The furore, triggered by last week’s tweet by an removing all tickets and products related to the NBA mances were canceled and retail conglomerate Lotte NAOMI Osaka has achieved great success this Asian Swing, official with the Houston Rockets, has imperiled the from its website. was harassed by officials after South Korea allowed but the World No.3 is setting her sights on keeping her current NBA in a multibillion-dollar market. A “fan night” planned for Wednesday evening, the deployment of a US missile defense system. hot streak alive and winning the WTA Finals at Shenzhen at “Beijing takes a zero-tolerance attitude to any featuring NBA players and Chinese pop stars, was In the US, the reaction has been mixed. James the end of the month. perceived foreign interference in its internal affairs,” canceled. The local celebrities had decided to pull Harden, the most-valuable player for 2018 who “It’s gonna be the last push of the year, honestly I just want said Hugo Brennan, principal Asia analyst at global out of the event earlier this week. Workers were seen plays for Houston Rockets, a team made popular to keep this streak going,” she told WTA Insider Courtney risk consultancy Verisk Maplecroft. stripping a giant NBA banner in a mall in downtown in China by homegrown star Yao Ming, apologized Nguyen on Sunday after claiming the China Open title. “This explains why it is adopting such a hard-line Shanghai, while state-run CCTV said the league and said “we love China.” Standing next to All-Star “I really want to win Shenzhen too, so that’s my main goal stance.” should apologise to Chinese fans and withdraw its teammate Russell Westbrook, he added, “For both and I know that I’m just going to train really hard for that.” The fracas has cast a shadow on what was set comments. Some users demanded refunds from of us individually, we go there once or twice a year. Osaka, who has had her share of struggles over the last to be a key week for the NBA in China, with two Tencent for their NBA subscriptions after the black- They show us the most important love.” six months, says she knew she had to give more of herself in top teams scheduled to play exhibition matches. out of the preseason games. Yet some US lawmakers have blasted the NBA order to get her season properly back on track this fall. She The Brooklyn Nets — recently bought by Alibaba The backlash has intensified after NBA - Com for kowtowing to China. told Nguyen that at times she has struggled with expectations, co-founder Joe Tsai — and the Los Angeles Lakers missioner Adam Silver defended Morey’s right to The NBA had earlier said in a separate Chinese and also regret. will clash in Shanghai on Thursday, and on October free speech. Silver refused to apologise and said the statement that the league was “deeply disappointed” “I just feel like for me the expectations when I play a tour- 12 in Shenzhen, just across the border from Hong NBA doesn’t dictate what people can or can’t say, with Morey’s “inappropriate” comment. nament are like finals, so anything below that is just kind of Kong. sparking further anger in a nation that restricts free “What you do and say represents America to the I’m not performing how I should be,” she said. “I’m fine with The row has also raised doubts if the matches will speech. China’s Communist Party-backed Global world,” Senator Josh Hawley wrote in a letter to Sil- losing if I know I tried my best. When I played my last match indeed proceed to plan. Both the teams, already in Times fired back in a tweet saying “free speech is ver, the NBA commissioner. in the US Open I know there was a part of me that held back. Shanghai, are due to speak to the media on Wednes- never free.” “And for an American organisation to help the For me it’s just hard to unlock that part and it’s not something day. The NBA’s defiance shows the league is willing most brutal of regimes silence dissent in pursuit of I can readily control and that’s why I have a lot of ups and China has become increasingly sensitive as to pay the price for upholding what Silver called profit is appalling.” — Bloomberg downs.” – tennisnow.com