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FTSE 100 6 865,42 ◀ 0,52 Staff Reporters babweans as well,” he said, adding that “if the 1,00 president wants to restore confi dence, he must Dow 24 647,49 USINESS confi dence in the country has engage his opposition ... A political solution will Commodities (Bloomberg) 0,34 once again hit rock bottom owing to Zim- rid this country of half the problems it has”. Gold 1 279,10 ◀ ◀ babwe’s worsening operating environ- Former Finance minister Tendai Biti also con- Platinum 792,12 0,14 ◀ B Brent Oil 61,83 0,54 ment and the erratic decisions of President Em- curred saying Zimbabwe was battling an acute merson Mnangagwa’s government. confi dence crisis which could only subside if the This comes as the economy has recently suf- government addressed the country’s economic Grains (Grain SA) White Maize ZAR 2 079,91 0,2 fered severe new shocks in the form of steep fuel fundamentals. ◀

Soya ZAR 4 656,99 ◀ 0,4 price hikes, galloping infl ation, escalating pro- “Confi dence is the main problem. Zimbabwe- ◀ Wheat ZAR 2 669,162 0,8 duction costs, growing labour unrest and an in- ans do not trust the system and they are justifi ed creasingly unstable political situation. in their suspicion. To restore confi dence, cer- “It has been like a see-saw since tain fundamentals need to be fi xed,” he I will not tolerate November 2017. Business con- said. fi dence was considerably high “They need to deal with fi scal insurbodination: ED until last September when we indiscipline, the budget defi cit PRESIDENT Emmerson Mnan- started to have serious shortag- and also implement structural gagwa has condemned “the vio- es of foreign currency which reforms. Issues like contain- lence and misconduct” by his led to shortages of raw mate- ing the wage bill, monitoring security forces in the aftermath rials,” Confederation of Zim- expenditure and getting rid of of January 14 to 16’s fuel riots. babwe Industries (CZI) pres- corruption are also important,” This also comes as the Zanu ident, Sifelani Jabangwe, told Biti said. PF leader has reportedly sur- The Financial Gazette this week. “We are where we are be- vived an ouster bid by legislative “The lawlessness that we saw cause of a lack of confi dence and members of his party, two loyal- last week, with destruction of proper- this needs to be addressed urgently,” ist supporters claimed Monday. ty and business disruptions, is also likely the feisty lawyer said. “...l announced measures to to dampen confi dence levels,” he said. Apart from the security-linked concerns, stabilise our nation’s crucial fuel “At this point, the outlook for the fi rst quarter investors’ confi dence in the country has been supply. I was aware that these ZIMBABWE International Trade Fair marketing and public re- of 2019 is dark because of all the prevailing hin- dented by some large corporates’ — including measures may not be popular… lations manager Stella Nkomo in Bulawayo recently. The annual drances,” Jabangwe added. cigarettes maker BAT, Delta Corporation, cement What followed was regrettable exhibition, which is turning 60 in April this year, provides an ideal Chris Mugaga, the Zimbabwe National producers Lafarge and PPC as well as South Af- and tragic. Chaos and insubor- engagement platform for both local and international investors, Chamber of Commerce (ZNCC) chief executive, rican Airways’ — failure to repatriate hundreds dination will not be tolerated,” offering consultative opportunities that are crucial for economic weighed in saying the country was now reeling of millions of dollars in dividends, and funds to Mnangagwa said on Twitter. growth. from a “serious confi dence defi cit”. their foreign shareholders. To Page 2 — Staff Reporter Page 2 | January 24-30 2019 The Financial Gazette

National News ‘Confidence at its lowest level in Zim’

From Page 1 Ndlovu has, however, accused local busi- new Zim dollars are malignant and must be in 12 months have added fuel to the econo- As a result, foreign direct investment — which nor- nesses of “failing to take responsibility” for removed,” he said. my’s woes, analysts said. mally follows domestic direct investment (DDI) — is their part in the mess that the country finds “If left in the monetary system, Gresh- And Zimbabwe’s paltry foreign reserves at its lowest level since DDI has also suffered from itself in. am’s Law will continue to force US dollars — which had plummeted to $200 million, a hostile local environment marked by runaway infla- “Of course, we have a confidence prob- out of the system and to be put ‘under the against a required $1 billion cover as at the tion, policy inconsistencies and other dangers precipi- lem in this country and as government we are mattress’ — causing a huge artificial short- end of September 2018 — are said to be too tated by Mthuli Ncube’s austerity measures. doing our best to address this through vari- age of US dollars,” Hanke said. inadequate to sustain a local currency. The problems also include resurgent factionalism ous policy measures,” he said. “Just how does one remove Zimbabwe’s Many experts have already warned the in Mnangagwa’s Zanu PF, alleged palace coups and “However, I have realised business is not monetary malignancy before it kills the pa- government that the mere mention of a return multiple centres of power. taking its share of the blame. Measures like tient? The government must announce that it of the local currency would not only further And Tuesday, acting Chinese ambassador Zhao import substitution could have saved us had will not rob the holders of bond notes and dampen confidence in the country, but hurt Baogang said low levels of confidence in the country they been implemented timeously,” Ndlovu RTGSs. They were issued at par to the US the economy. were not good for economic growth. said. dollar, and they will be redeemed at par by And International Crisis Group senior “Confidence is more important than gold…Only “Investor confidence will be our biggest the issuer: the Zimbabwean government,” consultant Piers Pigou’s observations that dialogue and hard work can bring more prosperity to knock from recent events. There is a delega- the John Hopkins University lecturer added. South Africa “cannot simply pour out money Zimbabwe,” he said. tion we were expecting in the country next Peter Mutasa, the Zimbabwe Congress of to Zimbabwe” — under an envisaged bailout And Prosper Chitambara, another economist, says week but which has since abandoned the Trade Unions president, said the government package — without necessary political re- Mnangagwa’s government must urgently prioritise mission fearing for their lives,” he added. had squandered “immense goodwill” and forms also speaks to a confidence crisis. business and labour engagement in order to “find each Steve Hanke, an applied economics pro- now needed to work on regaining it for the “It’s an act of self-delusion if you think other” and foster equal participation by all stakehold- fessor, said Zimbabwe’s confidence crisis sake of the country’s economic revival. you can avoid talking politics as you engage ers, as it is key in confidence building. emanated from the fact that the government “Unfortunately, the government failed to Zimbabwe…,” he said. “Lack of effective participation has also eroded was in denial that the country already had a harness both the approval of the internation- “To pull off that reform, it needs broad trust between the government and citizens, which has currency of its own. al community and the approval of citizens political consensus, including within both weakened political and economic confidence,” he said. “Zimbabwe has its own money and this is, and we are back to where we were a decade the ruling party and the opposition, but also Brett Chulu, a researcher, said the recently an- in fact, the source of Zimbabwe’s problems. ago ... in a confidence crisis charaterised by within other social constituencies. nounced fuel price hike had dealt a major blow to the This is revealed by the fact that the new Zim disputed electoral results and a debilitating “The country is polarised on multiple little confidence that was left in the country. dollars are issued at par to the US dollar, but economic crisis,” he said. fronts — ideally, the government would “It was a bad call, a wager that was not strategic at trade at a massive discount to the dollar,” he Meanwhile, Zimbabwe is also fast-ap- commit to supporting the development and all. Granted that the previous fuel pump prices were said. proaching hyperinflation levels, after its offi- implementation of some form of nation- sub-economic ... well below the 75 US cents per litre, Hanke also pointed out that confidence cial month-on-month inflation for December al reconciliation strategy to at least start to the landing cost under fair market conditions ... the would remain low if Zimbabwe continued to 2018 increased 11 percentage points to close heal these divisions. For now, however, such apparent attempt by government to remove the implied churn out bond notes and use RTGSs. the year at a staggering 42 percent. a strategy is not even part of political dis- subsidy was executed wrongly,” he said. “Zimbabwe will continue to be in the At the same time, under-fire Ncube’s course,” Pigou said. “It is difficult to wrap one’s brain around the logic grips of a monetary death spiral. Indeed, the plans to relaunch the Zimbabwe dollar with- [email protected] behind the timing of the hike. When the Government of National Unity folded, all the pillars of a stable economy that had underwritten a stable and recovering economy were systematically collapsed,” Chulu said in his weekly column. He also said Mnangagwa’s administration had not done enough to inspire confidence. Industry calls for dialogue However, Chulu added, “our self-made crisis can be solved by reversing the bad policy decisions gov- Omega Ukama The survey remains a major way for providing ernment took post the GNU”. Business Reporter policy direction for the manufacturing sector, While admitting that Zimbabwe is indeed suffering hence CZI continues to carry out the survey an- from a confidence crisis, Industry minister Nqobizitha IMBABWE’S deteriorating economic sit- nually,” he said. uation and rising labour unrests could be The recent protests were incited by a 140 per- Zimproved through dialogue between gov- cent increase in fuel prices, which was announced ernment, business and labour, a leading industri- by Mnangagwa on January 12. alist has said. Since November, 2017 when Mnangagwa This was after it had emerged that last week’s took over from Robert Mugabe, his administra- stay away, which left at least 12 people dead and tion has implemented a number of rapid “eco- more than 170 injured, could have cost the coun- nomic reforms”, most of which it claims to have try as much as a quarter of a billion in lost produc- been in consultation with business. tion — apart from the damage to property which The reforms have however been received has been estimated at “millions of dollars”. poorly by the general public, which seems to Sifelani Jabangwe, the Confederation of Zim- have been left out of economic policy direction babwe Industries (CZI) president, said there’s an discussions. urgent need for relevant parties to engage in a tri- Commentators say the recent protests were partite negotiating forum. the public’s show of discontentment to govern- “We feel that such a forum will improve dia- ment’s apparent exclusive agendas. logue and insure that some of the incidences that Still, the “new dispensation” has persistently we witnessed this week could be avoided. As CZI announced its intentions for inclusivity. we acknowledge the right to peaceful protest as Its Transitional Stabilisation Programme is described in the constitution and we denounce said to be focused on attaining strong, sustainable violence that leads to loss of lives and property,” and “shared” growth. he said. Meanwhile, the confederation says “if there is “The property that was destroyed during the no drastic change in policy direction, foreign cur- protests was actually investment, which the coun- rency shortages will persist and the 1:1 exchange try needs more right now. But for us to increase Sifelani Jabangwe rate is affecting availability of foreign currency”. investment, we need assurance from all parties “There is need for a foreign exchange trading that investment will be secure,” he said. civic leaders. platform so that foreign currency is traded at a fair President Emmerson Mnangagwa, who However, Jabangwe said there is need to take value. This will enable product availability, price skipped the World Economic Forum in Davos, bold steps to address the current economic chal- stability and business viability,” Tafadzwa Ban- on Tuesday also called for a “national dialogue” lenges. dama, CZI’s chief economist. among all political parties as well as religious and “In doing so, there is need for consultations. [email protected] The Financial Gazette January 24-30 2019 | Page 3 National News Sakunda boss buys chrome miner

GROUP of investors led by Sakunda Holdings “The Sakunda owner probably fash- quisition agreement it had entered into with Balasore, but founder and chief executive Kuda Tagwirei has re- ioned this acquisition at the back of an the Indian investor says their deal is still alive and they were Aportedly acquired a majority stake in Zimbabwe Al- off-take agreement with global commodity only waiting for “conditions precedent”. loys Limited (ZimAlloys) for $30 million, sources say. traders solely to lay his hands on a resource Following indications that the ZimAlloys’ judicial man- Although one of the company’s principal owners and that would give hard cash to finance his core ager had opted to terminate a court sanctioned scheme en- Benscore shareholder Farai Rwodzi has denied knowledge fuel business and imports. And the two en- tered with Balasore, the company allegedly received consid- of a deal with the oil baron, at least three independent sourc- tities, which are backing him, are likely to erable interest from a number of local and foreign investors. es have confimed that the controversial tycoon had expand- be the buyers of his chrome too,” they said. Last year, ZimAlloys reportedly started looking at initia- ed his chrome interests by snapping up the former Anglo Apart from this new asset, Tagwirei re- tives to secure funding for the refurbishment of its furnaces American subsidiary. portedly owns another 30 percent of Zunaid at the Gweru plant. “Kuda has not bought anything in ZimAlloys. We are Moti's African Chrome Fields. The ferrochrome miner is also working on its dump now in discussions with an international investment com- While Rwodzi says ZimAlloys had which is inclusive of nother dump that was commissioned pany, which is invested across many sectors, including min- signed up other investors, judicial manager in 2013 in a partnership with a Chinese firm, JinAn in a deal ing,” he said, adding they had ditched Indian firm Balasore Reggie Saruchera's deputy Bulisa Mbano worth $2,3 million. Alloys' offer and which has also ended in a lawsuit against insists the Pramod Mittal deal was still on The ferrochrome miner — acquired by Benscore for the Midlands-based company. the table. $10 million in 2005 — had failed to flourish due to a hostile However, sources said: "Tagwirei has bought out Ben- “We are still looking for investors. We economic environment, closure of its four furnaces, poor score, which owned 90 percent of ferro-alloys producer and have also been trying to see if we can work international metal prices and other operational challenges. after Rwodzi's partner Adam Molai had completely sold his something out with regards to the Balasore ZimAlloys was placed under judicial management in shares, and we also understand that the ex-banker has re- deal,” he said. 2014 after its debt had risen to alarming levels. — Staff tained a minority interest in the venture, and structure” Last year, ZimAlloys terminated an ac- Kuda Tagwirei Reporter [email protected] Oliver Mtukudzi dies NTERNATIONAL musical icon Oliver Mtukudzi has died at a private Harare hospital after a long battle with Idiabetes, his family and close associates confirmed yester- day. The 66 year-old was one of a few Zimbabwean singers to have established or put up a professional record management company and acquired tangible assets such as his Pakare Paye arts centre in Norton. With 66 albums to his name and major collaborations with other globally renowned artistes, including South Africa’s Hugh Masekela, Ringo Madlingozi, and Ladysmith Black Mambazo, Mtukudzi was appointed a United Nations’ good- will ambassador in 2011. — Staff Reporter [email protected] SA mulls short-term credit to Zimbabwe OUTH Africa is reportedly planning to extend short-term credit to heavily indebted Zimbabwe to Sassist its neighbour clear over $7 billion in external debts, it has been learnt. Reports out of South Africa over the weekend indicat- ed Pretoria was in discussions with Harare over clearance of Zimbabwe’s debts, amid indications Tito Mboweni, South Africa’s treasury chief, had dismissed plans for the adoption of the rand by Harare. South Africa’s treasury chief told Daily Maverick that the two countries were discussing the possibility of South Africa extending an existing credit facility of just short of R100 million which Zimbabwe had with the South Afri- can Reserve Bank. Mboweni said that Zimbabwe had provided collateral for this loan in the form of its holding of SA Land Bank bills. The extension of this facility depended on Zimbabwe being able to provide further collateral, he said, insisting Zimbabwe had always repaid its loans under this facility in the past. He said South Africa was also discussing ways of helping Zimbabwe lift its debt to international creditors. Without mentioning a specific figure, Mboweni said this debt “is not a lot of money” and that he was sure Zimbabwe was looking not only to South Africa but to “other friends and institutions” to help it clear the debt. However, some critics believe that South Africa is just tinkering with the Zimbabwean crisis and that any mon- ey that it channels to Zimbabwe will be wasted unless it persuades the ruling Zanu-PF party to make fundamental political and economic reforms. “It’s an act of self-delusion if you think you can avoid talking politics as you engage Zimbabwe, as in many other places,” Piers Pigou, senior consultant to the In- ternational Crisis Group, said in response to Mboweni’s disclosure. Harare is clearly desperate for a bailout from South Africa or any of its allies to resolve an economic crisis which is slipping out of control. Zimbabwean President Emmerson Mnangagwa has been in Russia, Belarus, Kazakhstan and Azerbaijan, supposedly seeking financial help from these old allies to rescue the crashing economy. This comes as Dondo Mogajane, director-general of the South African National Treasury, told Sunday Times that South Africa had declined a request for a bailout of $1,2 billion which the Zimbabwe government had made to the South African government on December 26. According to Finance minister Mthuli Ncube, Zimba- bwe has a total national debt of $16,9 billion, of which its external debt is $7,4 billion, with $5,6 billion in arrears. — Staff Writer [email protected] Page 4 | January 24-30 2019 The Financial Gazette National News ‘Finance Bill illegally implemented’

Tabitha Mutenga was invalid, in particular because it was Features Editor not authorised by the statute under which it was purportedly made. Hence the tax ERITAS Zimbabwe (Veritas) could not and still cannot be legally lev- says government jumped the gun ied.” Vby illegally implementing some Veritas, has repeatedly stated that the provisions of the Finance Bill before the two percent tax on money transfers im- document is enacted. posed by Finance minister Mthuli Ncube The Finance Bill was passed by the was still illegal and unconstitutional be- National Assembly on December 20 last cause the minister does not have the pow- year and will be presented in the Senate er to amend the Income Tax Act. when Parliament resumes sitting on Jan- “The first point to make is that the uary 29, 2019. Bill is not yet a law, it has not even been The general rule is that a Bill does not presented in Parliament, so it cannot au- come into force as an Act of Parliament thorise the Minister to do anything, much until it has been passed by the Nation- less collect a tax,” Veritas added. al Assembly and the Senate, and then The two percent tax seeks to expand signed by the President, and published in government’s capacity for capital fund- the Government Gazette. ing and retooling of the manufacturing The parliamentary watchdog insists sector. that before being implemented, all Bills “Bills cannot come into force as should be passed by Parliament. Acts of Parliament until they have been “Some of the Bill’s provisions are al- considered by the Senate. This applies ready being implemented, for example, equally to Money Bills. So even though the two per cent tax on electronic money the Senate’s power to alter the Budget transfers, but there is a question wheth- Bill may be restricted, the Senate cannot er the Bill can be implemented before it be by-passed. It must consider the Bill.” has been passed by the Senate and duly Senate only has eight sitting days to promulgated as an Act of Parliament,” pass the Bill or the National Assembly Veritas said. can resolve to send it to the President “The statutory instrument which orig- without waiting for the Senate’s input. inally imposed the tax (SI 205 of 2018) [email protected] US rapper Snoop Dogg invests in fintech firm

NOOP Dogg is better known for his work in the music business — but Sthe US rapper is now throwing his weight behind fintech. Swedish online payments firm Klarna recently said Snoop Dogg had invested in the business and would promote it as part of a new marketing campaign. Klarna, known for its “Smoooth Pay- ments” slogan, has dubbed the 47-year- old music artist “Smoooth Dogg” as part of the campaign. A video ad posted to Klarna’s You- Tube channel shows the rapper at a “cor- onation” where he is presented with a set of bling emblazoned with the “Smoooth Dogg” name. “Ive been looking for an opportunity to expand my tech investment portfolio to Europe and seeing the way Klarna op- erates and how they challenge the status quo, I think it’s a match made in heaven. I'm very excited about this partnership,” Snoop Dogg said in a statement. Klarna, founded in 2005, provides payment solutions for consumers and merchants. It has 60 million shoppers and 100 000 merchants using the platform, and is available in 14 countries. Snoop Dogg It counts fellow European firm Adyen and US tech giants PayPal and Square as at $2,25 billion in 2015, making it one of competitors, and was granted a banking Europe’s largest fintech unicorns — pri- license by the Swedish financial regulator vately held companies that are valued in 2017. at more than $1 billion. Other notable “Snoop is not only a rap legend, but shareholders include H&M and Visa. also a successful businessman, with a Snoop Dogg has previously invested genuine interest in tech, retail and e-com- in weed-related companies through his merce,” Klarna chief executive Sebastian venture capital firm Casa Verde Capital. Siemiatkowski said in a statement. Its portfolio includes pot-tracking plat- “He has a great understanding of con- form Metrc, marijuana delivery service sumer behaviour and is exceptional when Dutchie and medical cannabis research it comes to branding and marketing.” firm Oxford Cannabinoid Technologies. The firm was last valued by investors — CNBC The Financial Gazette January 24-30 2019 | Page 5 National News HCZ, NSSA due for arbitration next month

HE dispute between Housing Cor- Building Society and directly — 10 000 poration of Zimbabwe (HCZ) and housing units by December 2017, and Tthe National Social Security Au- via fi ve housing developments worth a thority (NSSA) over the $300 million cumulative $78 million. Caledonia housing estate is due for com- Hence, the state-run institution roped mercial arbitration on February 4, The in private sector players to escalate the Financial Gazette can reveal. delivery of 600 houses in Dzivaresekwa, While the Mauritian-backed develop- Globeny Construction’s Gweru cluster, er’s lawyer Rose Zigomo and offi cials at another lot by Tarcon in Marondera, the Harare commercial arbitration centre a Mutare complex of 1 000 units and (CAC) could neither confi rm nor deny similar number in Zvishavane by SMM the latest developments, sources say the Holdings Limited. matter would be heard early next month. And despite having been shown some “I can’t say anything to the press un- 53 completed units — as part of HCZ’s less I talk to my client. The matter is con- fi rst phase commitment of 250 houses — fi dential,” Zigomo said yesterday. on March 15 last year, NSSA wrote to Under the CAC process, HCZ will Zimnat on July 25 to demand payment not only seek to reinforce a course of ac- of the compensation fee and which was tion it initiated in April 2018, but obtain challenged by HCZ. remedies on fi ve key points that it feels “It is the applicant’s contention that NSSA neglected or failed to execute in Nssa’s letter of demand calling on the line with their July 2017 off-taker agree- performance bond is fraudulent and ment. marred with falsehoods because it (Dug- “On 08 May, HCZ referred the matter gan’s company) has delivered some to arbitration and… recording the various housing units... It averred that there was diffi culties experienced by it, the breach- never… communication by NSSA say- es by NSSA..,” company chief executive ing that the applicant had failed to deliv- Stephen Duggan said in a May 29 letter er in terms of the contract and that it was forming part of legal papers challenging going to call on the bond,” Muremba’s the compulsory pensions fund’s desire order stated. to invoke the former’s $16 million per- “Now that the dispute has been re- formance guarantee with Zimnat Lion ferred to arbitration, the balance of (Zimnat). convenience favours the granting of the “The disputes were identifi ed… as be- interdict because… it means fi nancial ing NSSA’s failure to… deal with HCZ’s consequences to the applicant,” it said, infl ation claim, appoint an engineer… adding HCZ had resorted to legal action in terms of the off-take agreement, sign — which was permitted under clause the mutually agreed addendum for Ns- 27:11 of the principal agreement — since sa’s request to accelerate delivery of 250 Zimnat had not given any assurances that houses... record in writing the fulfi lment it was not going to pay the statutory fund. of the pre-construction obligations date While the court papers expressly in accordance with clause 8.2 and its fail- show that the parties had entered com- ure to co-operate… and not to engage in mercial arbitration by August last year, activities that be detrimental to the proj- it appears that NSSA chose to ignore ect,” he said. this dispute resolution path and push And pursuant to the August 2018 for a cancellation of the Caledonia con- application by HCZ, High Court judge tract, which also gave rise to the fl awed Esther Muremba prohibited the state-run charges against Molai, Vela and Chihota. institution from fraudulently seeking to “In view of the foregoing… I am in- invoke the performance bond. clined to grant the interdict the applicant Even, though, the disputes have is seeking. It is alleging fraud on the part resulted in people like Adam Molai, of NSSA. In the meantime… the grant- ex-NSSA chairman Robin Vela and chief ing of the interdict as it will ensure that property investment offi cer Kurauone the status quo ante is maintained until Chihota facing criminal charges, the pro- a determination is made on the issue. visional order also upheld the validity of Allowing Zimnat to pay on the perfor- the contract between Duggan’s company mance bond has fi nancial consequences and the pensions authority, and that this to the applicant, which will be called on was essentially a commercial dispute. to make good the loss that will be suf- “Pending determination of the mat- fered by Zimnat,” Muremba said. ter… an interim order is hereby grant- Even, though, issues around the Cale- ed in the following terms: The second donia case make much of the charges respondent (NSSA) be and is hereby against Molai and company, Muremba’s interdicted, and restrained from seeking interim order — and the collapse of the to execute on its letter of demand in re- case against Chiota — have the possible lation to the performance bond or receiv- effect of hobbling the state’s case against ing any payment from the guarantor and the Harare businessman. fi rst respondent (Zimnat)..,” Muremba While the judge also makes the strong said in an October 2018 ruling, adding case that the parties had a subsisting con- the bond issue and clause was added into tract supported by a security guarantee, the agreement for “the benefi t of Nssa as it somehow resonates with Vela’s claims UNTIL JANUARY 31st the developer was guaranteeing the ful- — in a voluminous letter to President fi lment of the contract”. Emmerson Mnangagwa — that: 2019 “The guarantor (Zimnat) be… in- “The developer provided a third par- terdicted and restrained from making ty institutional (Zimnat) performance any payment to the benefi ciary (NSSA) guarantee… for funds advanced to it al- under, and in terms of the performance together with a caveat on the land, which bond..,” she said, noting further that the had a value of some $30 million. In total fi nal order or relief sought would declare — NSSA has tangible security of some that “the letter of demand… calling on three times the amount of $16 million 31st of January 2019. the performance bond dated 25 July 2018 released. All requisite approvals were in and received by Zimnat on 6 August place,” he said. 2018 was fraudulently issued..” Meanwhile, the court papers also According to state papers, HCZ was show that HCZ had up to 2022 to deliver to acquire land and develop 8 000 low- the low cost houses, NSSA only sought cost houses, which were to be sold to the to acknowledge its partners’ CAC pro- compulsory pensions fund as part of gov- cess two months after laying criminal ernment’s command housing initiative. charges against Molai and Chihota has Under the ambitious project, Nssa returned to work too. — Staff Reporter was to deliver — through its National newsdesk@fi ngaz.co.zw Page 6 | January 24-30 2019 The Financial Gazette

‘Military tag killing confidence’

YEAR into President Emmerson Mnan- The other key issue, I know most jour- eracy level of 95 percent. You and productivity. Zimbabwe is not producing. gagwa’s rule, Zimbabwe’s economy is nalists are not comfortable with this, is get what I am saying? To There is no activity on the farms. In terms of once again on the brink ― fast approach- we need to remove the tag of the mil- understand the problem, wheat cover, we can only sustain about two to A itary touch in government. It intim- look at the move to set three months, the other 10 months we have to ing the horrendous 2008 levels. According to the latest Confederation of Zimbabwe Industries idates a lot. There is a time when up a foreign currency import. The land tenure system of 1999 is not (CZI)’s latest report, industry’s capacity utili- Zimbabwe will need to walk out of allocation commit- working. No one wants to fund agriculture ac- sation levels dropped from 48,2 percent in Au- the military straitjacket. The per- tee…and you think tivity, no wonder why government is resorting gust 2018 to 42 percent in November, and are ception is you are still military. It we are solving a to command agriculture, and command is now projected to fall further to 34 percent this year. is a problem which also needs to problem? Why creating unsustainable spending. If you look at The depressed performance is on the back of be solved. set up a foreign (the) command agriculture last year compared higher infl ation ― which increased to 42 percent SM: You are speaking currency alloca- to now, in terms of spending, it has grown by as at December last year from three percent in candidly. But most Zim- tion committee? almost 242 percent. But! How do you close that January ― and acute foreign currency and fuel babwean business leaders Do we need it? gap without creating a policy that drives appe- shortages. To better understand the state of af- have always been timid. SM: We tite to fund agriculture? It is an issue because no fairs, and businesses’ projections for 2019, The They seem to discuss im- don’t need bank will give you money if you bring a 99-year Financial Gazette’s Companies Editor, Shame portant issues behind closed such a com- lease. So, ED has to look at that, if farmers in Makoshori (SM), interviewed Zimbabwe Na- doors. Is what you are saying a mittee? this country are to do well. tional Chamber of Commerce chief executive shared sentiment? CM: We have SM: My feeling is that Finance minister Christopher Mugaga (CM). Below are excerpts CM: It is diffi cult to ignore always done Mthuli Ncube has made big mistakes. But of the discussion. political attention be- without it. To authorities argue that the foreign currency tween the two major me, the crisis will be dealt with in 12 months. What parties. People do you think? SM: What do you think are the solutions do not want CM: Our problem is not necessarily the to the crises and upheavals that confront to talk currency crisis. The problem is government’s Zimbabwe today? The nation was hopeful hands which are everywhere. If government lib- that the fresh minds in government would eralises the foreign currency market, you will lead us on a new trajectory? see that the foreign currency problem will end. CM: Our problems are a result of a build-up, The reason why you feel like we have a serious it is not like we woke up with these problems. foreign currency problem is because you cannot But I have always said the major challenge that get it. And if you get it (on the parallel market) Zimbabwe faces today is the independence of you will be jailed for 10 months for trading on institutions, which is lacking. So, that lack of the black market. Who wants that? When you independence of institutions has affected us. are pricing foreign currency at the rate of 1:1 to There has been corruption in this country. Then the US dollar, just imagine the torture that you there is the issue of money supply growth that about it. But these are two major political par- committee is not necessary. People who are go through at a supermarket till when they ar- we have to address. ties that both scored two million-plus voters. qualifi ed to run institutions are not yet there. gue that swipe has the same value with foreign But how do you plug these problems, if you You cannot ignore one of them completely. I They have either left the country or corrup- currency? That’s what we are pushing people to are not promoting the independence of institu- also think that ED (Mnangagwa) has to deal tion has compromised the quality of skills. The do. It can’t work. So, economic freedom has to tions? A central bank which is not somewhat in- with the legacy of his own party. There could sharpest minds will always end up in South Af- improve in this country. We don’t want a case dependent of Treasury will not be able to carry be those who are pulling down the system. The rica (SA). where members of the executive go to negotiate out its duties. A judiciary which is not as inde- difference between ED and (former president SM: How do you compare SA and Zimba- salaries for medical doctors. We don’t need that! pendent as you would want may not deal with Robert) Mugabe is that Mugabe was dealing bwe in terms of skills? Allow institutions to fl ow. Who is supposed corruption the way we want. So, corruption (is with a united ZANU PF. ED has to deal with CM: You cannot compare Zimbabwe and to be in those meetings? That is what we are being) dealt with in political courts. But politi- a not-so-united ZANU PF, and the opposition. SA. No, no, no you can’t. I have gone to SA talking about. cal courts, unfortunately, don’t prosecute. My impression is that this is at a more elevated countless times as a speaker. The quality of SM: You are talking like a real represen- SM: You mean there is endemic rot of key scale. In addition to what I have said, there is questions you get, compared to here ahh! Even tative of business. Your problem is that when institutions and government is not acting? need for political dialogue in this country. you journalists munombojoker sometimes (you you come face-to-face with government min- CM: If we start dealing with the indepen- SM: You give the impression that we may journalists can be a joke). You ask inept ques- isters, you will be busy saying ‘boss, boss, dence of institutions as a country, we improve be in the doldrums for some time because tions, I am sorry to say this. But I don’t blame boss’. Are they your bosses? Or you want to the confi dence of investors in Zimbabwe. some of your insights may be impossible for you journalists, I blame media freedom. Maybe please them? Without that, investors will start thinking that politicians to address. Do you think we have you are afraid. CM: You mean in meetings with the system? Zimbabwe does not respect property rights, or the skills and capacity to deal with this crisis? SM: So, have I asked you useless questions SM: Yes. Zimbabwe does not respect human rights. This CM: I think skills are an issue, people are in this interview today? CM: No, we have always been discussing the is a critical issue that people rarely talk about. not competent in a number of offi ces. There was CM: (Laughs) I am saying this to you be- real issues affecting this economy. Even behind We also need to address fi scal problems, gov- a skills audit in the country and we are talking cause we are having an honest discussion. But closes doors, you can ask those that attend our ernment’s desire to spend. It is not sustainable. of a skills level of about 38 percent versus a lit- back to our discussion, don’t forget production meetings. newsdesk@fi ngaz.co.zw Belgian delegation cuts short Zim mission Ndakaziva Majaka the spiking cost of living. The cost of living has been An estimated 12 lives were lost in the protests. Mthuli Ncube said he expected production to grow Markets Editor worsened by raging infl ation. Sifelani Jabangwe, CZI’s president, estimated lo- to $31 billion in 2019 from $24,7 billion in 2018, a As at November, annual infl ation as measured by cal businesses lost about $70 million daily as a direct 26 percent rise before adjusting for infl ation. BELGIAN business delegation that landed the consumer price index was reported at 31 percent, result of the shutdown caused by the protests. A net growth of three percent was however ex- on Tuesday has cancelled the Bulawayo leg up from 20 percent in October and fi ve percent in “While protesting is a constitutional right, as pected after infl ation, meaning government expected Aof its Zimbabwean tour following civil unrest September. The sharp monthly surges eroded the business we got the short end of the bargain. There infl ation to average above 20 percent in 2019. in the country, a Cabinet minister has said. purchasing power of salaries which barely moved. is absolutely nothing wrong with exercising this “As at Thursday, Harare had little traffi c, with Industry minister Nqobizitha Ndhlovu said last Most basics rose by about 300 percent in line with constitutional right but the loss to infrastructure and commuter omnibuses which ferry most of the work- week’s three-day stayaway called for by the Zimba- the parallel market exchange rate. Zimbabwe could business is unthinkable. As an estimate, I can safely ers to and from work, largely scarce, implying a fur- bwe Congress of Trade Union had seen the Belgian enter offi cial hyperinfl ation this month after it re- put this loss at about $70 million daily,” Jabangwe ther drag in the status quo of stayaway. delegation abort a trip to the second largest city, once corded a month-on-month infl ation rate of 42 per- said. “It is now likely that normal business will only regarded as the country’s industrial hub. cent for December 2018 after fi rming 11 percentage Independent data from Equity Axis estimated the resume next Monday, assuming political calmness “Investor confi dence will be our biggest knock points. three-day strike could have potentially cost Zimba- and affordability are addressed. from this. A Belgian delegation has abandoned plans The black market rate was used predominantly bwe $250 million in lost production. “If the stayaway stretches to fi ve days, the mag- to travel to Bulawayo for twinning meetings. because most of the goods traded either as fi nished “The fi gure could go up if the stayaway stretches nitude of economic loss may even widen to an esti- “Their aim was to visit certain companies in Bu- or inputs estimated at about 65 percent are sourced to fi ve days, a possibility given the transport chal- mated $426 million, which would be a huge cost to lawayo and arrange twinning arrangements but this from the region as imports, according to Equity Axis. lenges and the lack of money to commute. The the economy,” Equity Axis said. will no longer happen because they fear for their Government went on to announce a 250 percent economy could have already lost $255 million in In terms of government revenue, which is target- lives in light of recent events,” he said on the side- increase in the price of fuel almost a fortnight ago, potential GDP had the economy not shut down. This ed at a bullish $6,2 billion in 2019, an estimate $51,9 lines of a Confederation of Zimbabwe Industries triggering massive civil unrest. The rationale, ac- estimate loss is derived from a 2019 potential nation- million was potentially lost over the three-day strike (CZI) meeting in the capital. cording to government, was to stem speculation in al produce of $31 billion,” Equity Axis said in a note and the fi gure could have gone up to $85 million as Zimbabweans were demonstrating against a the fuel market, which was caused by under-pricing released last week. the situation only partly normalised this Monday. sharp rise in fuel prices and lower wages relative to of fuel in the country relative to the region. In his budget presentation, Finance minister newsdesk@fi ngaz.co.zw The Financial Gazette January 24-30 2019 | Page 7 Page 8 | January 24-30 2019 The Financial Gazette Leader Page

News Worth Knowing Govt’s austerity measures ‘evil’

F THIS was the pain that President Emmerson Mnangagwa and his Finance minister Mthuli Ncube have been talking about, then nothing Idescribes the impact of Saturday, January 12’s sharp fuel price hikes than sinister and pernicious. What makes the timing and reasoning behind these insensitive correc- tive measures ― which the Zanu PF leader himself acknowledges were likely to be unpopular ― more objectionable, and absurd is that the gov- ernment had even been warned by people like Eddie Cross in September. “One week ago, l announced measures to stabilise our nation’s crucial fuel supply. I was aware that these measures may not be popular and this was not a decision we took lightly,” Mnangagwa said in a series of tweets this week, adding “but it was the right thing to do”. And while there is no rabid opposition to the ex-Intelligence supremo’s attempts in righting the economy through various instruments, which has spawned numerous theories that the latest policies might have been in- formed by Ncube’s “obsession” with containing the parallel market by FOREX WOES: A Kadoma Textiles employee checks a weaving machine at the company’s premises liquidating the $9,5 billion electronic balances, it does not take a Albert recently. The country’s largest textile firm, which is struggling to retool due to Zimbabwe’s acute foreign Einstein to know that the Cambridge professor’s ceteris paribus exper- currency shortages that have seen several firms either scaling down operations or temporarily shutting iment has produced unbearable hardships for Zimbabweans in many down, is seeking at least $0,5 million to refurbish its units. Picture by Freedom Mashava. ways. According to Munhumutapa watchers, the government has been so desperate to raise more money through the $2 tax per litre of fuel to extin- guish the fictitious money and “wean the Reserve Bank of Zimbabwe, and national fiscus of the burden of subsidising the commodity”. Zimbabwe should start But in an environment where monthly incomes, foreign currency and product supply remain patchy, and there is a general feeling that the “pain is not being shared equally”, who can blame the masses’ reaction to these abrupt and excruciating austerity measures? exploring electric cars Was there no moral obligation on the Harare administration’s part to ensure that the intensity of these lethal actions is lessened through a drip- feed process or ensuring that they are introduced over three to five years HE current debilitating of waiting more than 10 hours in a ing to experts. ― assuming that anyone has taken any lessons from Greece and Spain? fuel crisis has, once again, fuel queue. China and India ― the world’s Again, there is no price for guessing that austerity brings untoward Tbrought to the fore the If only his story can be repli- largest and fifth-largest automo- suffering, pain and in most cases hampers economic growth. need for lasting solutions to deal cated across the country, then in- bile markets, respectively ― are Through Jaime Guajardo and Andrea Pescatori, the International with this decades-long problem. dustrial production is likely to in- great examples of what is possible Monetary Fund has recently concluded that austerity measures ― after a Already, rising petrol prices are crease as employees would spend in emerging markets with the right study of 17 countries and period covering 30 years ― have brought about making life difficult for many more time at work as opposed to policy interventions. Both Asian hard times, and social pain. Zimbabweans, with the poor suf- be milling around service stations. countries aim to switch to electric Worse still, there was no effective communication of government’s in- fering the most, as always. I understand that given our cars to improve their energy se- tentions and goals ― as has always been the case with this cabal ― such When prices of diesel or petrol present circumstances, this might curity, reducing long-term depen- that the measures were interpreted by the public as just needless pain go up, so does everything else: sound a preposterous idea, but dency on imported oil ― in 2016. and suffering. food, clothing, medicines, you with proper vision and planning, This stood at around 66 percent of The povo is already reeling from queues, potential retrenchments at name it. Yet, technology has a per- this is very achievable. What we crude oil consumption in China Capri, Olivine and Surface Wilmar, among others, and the two percent fect solution that will completely need now is significant infrastruc- and 80 percent in India. tax, yet we have an executive that wants to pile more misery on us. eliminate our reliance on fossil ture investments such as power Another key driver for their fuels. plants, dedicated charging stations adoption of electric vehicles has As such, there ought to be a cautious implementation, if not rethink, The world is quickly moving and grid integration, as well as been both countries’ rapidly wors- on these “corrective steps” ― lest Zimbabwe remains a nation of wildcat towards electric vehicles and it change in consumer attitudes and ening urban air quality. India is riots, low investment and rising human cost. is prudent for entrepreneurs and behaviour. seeking a completely electrified business people to start consider- Already, Chinese electric mo- vehicle fleet by 2030. China’s Southern Africa’s Leading Business and Financial Newspaper ing investing or partnering with torbikes are on sale in downtown government anticipates that “New Established 1969 Harare, with a distributor plan- Energy Vehicles” will reach five Publisher: Modus Media ning to set up shop in Zimbabwe percent of total vehicle market de- Open Forum this year. So, if successful, electric mand by 2020 and 20 percent by EDITORIAL MARKETING cars could be the next logical step. 2025. Both countries are imple- Editor-In-Chief & Chief Operating Ofcer General Manager - Marketing Christopher Goko: gok .zw .zw In addition, as more and more menting policies and subsidies to with used electric vehicles come onto realise these goals. The Chinese Brand Executive - Advertising Deputy Editor Edwin Vengesa: evengesa@ngaz.co.zw the market from the traditional government has already spent $3 .zw John Kachembere source markets of Japan, the Unit- billion on promoting electric cars. Senior Sales Executives Managing Editor Christobel Washaya: cwashay .zw ed Kingdom and South Africa, we This is the perfect time for Zim- .zw should start to see more used elec- babwe to explore the potential of Senior Assistant Editor .zw renowned vehicle manufacturers tric cars on our roads. this new phenomenon. Since 2009 Chris Gumunyu: chris@ngaz.co.zw to set up a plant that assembles The electric cars market is we have seen many corporates and Sales Representatives - Harare electric cars in Zimbabwe. already growing at exponential individuals making commitments News Editor .zw John K .zw Frank Nyandoro: fny .zw With adequate government rates, with more than three million and large investments in power Edreck: emudzinganyama@ngaz.co.zw support, the move will not only vehicles sold globally. Every ma- capacity. If all these projects come Markets Editor Sales Representative - Bulawayo significantly reduce our fuel im- jor automobile manufacturer now on board in the next few years, the Ndakaziv .zw Clever Pedzisai: [email protected] port bill, which is around $2 bil- has hybrid and full plug-in electric country will have enough elec- Companies Editor Brand Executive - Events lion a year, but also help in low- cars in commercial production. By tricity to meet demand from the Shame Makoshori: smak .zw Kerina Chizemo: kchizemo@ngaz.co.zw ering transport costs and reducing 2040, 54 percent of new global car anticipated rise in vehicle owner- Online Editor Brand Executive - Subscriptions carbon emissions for a cleaner en- sales and 33 percent of the world’s ship, given population growth, in- Paul Nyakazeya: pnyakazey .zw Tatenda Taka: ttaka@ngaz.co.zw vironment. car fleet will be electric, accord- creased urbanisation and a rising Subscriptions Representatives Cheaper transportation means middle class. Features Editor Ronald Madiviko: rmadivik .zw .zw lower prices, extra disposable in- As such, Zimbabwe has an op- Elizabeth Nyamaruze: eny .zw come and a healthier economy. At the moment it is portunity to pursue an energy-se- Production Supervisor Chief Executive Ofcer Couple electric cars with emerg- not surprising that cure and lower-cost path, taking Kudzai Rushambwa: krushambwa@ngaz.co.zw .zw ing solar technologies, and we “businessman and Nash advantage of the strong global could soon have vehicles that are Paints founder Tinashe electric cars trend, before locking Bulawayo cheaper to run, thanks to an unlim- itself into greater dependence on Editorial, Advertising & Circulation 1st Floor, Princess Court, Mutarisi is the only one 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, ited supply of clean energy from smiling after he recently imported fuel and a carbon-inten- P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. the sun. sive energy grid. Tel: +263-242-781 572 Tel: (029)75873/75270 took delivery of his elec- Website: www Distributed by: ANZ At the moment it is not surpris- In Kenya, entrepreneur Francis ing that businessman and Nash tric car ― a Tesla Model X Romano, who imported his first VOLUNTARY MEDIA COUNCIL OF ZIMBABWE Paints founder Tinashe Mutarisi is ― and is being spared the electric vehicle, a Nissan Leaf, in e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced pain and anguish of wait- 2016, has over the years discov- news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of the only one smiling after he re- Zimbabwe at: cently took delivery of his electric ing more than 10 hours in a ered that he can run his entire taxi No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 car ― a Tesla Model X ― and is fuel queue.” business without petrol, saving up Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz Zimbabwe being spared the pain and anguish to 70 percent a year on fuel. The Financial Gazette January 24-30 2019 | Page 9 National News Construction VACANCIES IN A COMMERCIAL LAW FIRM 1. BUSINESS DEVELOPMENT MANAGER Role Description The purpose of this role is to lead, drive and advise on business development activity for the firm. Emphasis will be on sector to enhancing current business development processes and initiating new ones to advance the firm’s strategic objectives. Responsibilities • Work closely with firm management committee and staff members to create, manage, budget for and implement remain business and marketing plans. This will include acting as advisor to the firm in relation to the marketplace and how to approach it as well as a leader in the commercial implementation of these plans. • Deliver and participate in client facing, marketing driven initiatives such as events, seminars, client workshops and roundtables and attend marketing opportunities with partners and lawyers. depressed • Manage and coordinate the firm’s participation in pitches, contributing to the progression of new business opportuni- ties and driving activities with a view to closing new business. • Apply a sophisticated approach to the use of data, web, SEO, analytics, business analysis, client targeting and the until 2026 development of content for business development. Nelson Gahadza Experience, Skills & Knowledge Business Reporter • Significant business development experience working in a professional services environment • Experience of developing and implementing business and marketing plans, including budgeting are a must IMBABWE is seen remaining one of the small- • Understanding of the basics of data driven and digital marketing est construction markets in the sub-Sahara Africa • Experience of driving through change in a challenging environment (SSA) region until 2026 as an unfavourable busi- • Marketing and/or business administration degree or related qualifications required. Legal background or legal training Z is an added advantage ness environment will weigh down the sector’s potential growth. • Drive, energy and the determination to create a rewarding and impactful role in an ambitious firm where change is BMI Research, in its latest Zimbabwe Infrastructure occurring rapidly Report noted that only Chinese investments will likely • Commercial focus remain the supporter of the sector due to existing com- • Ability to interact positively at all levels and a good team player mitments. • Excellent written and verbal communication skills “Zimbabwe’s unfavourable business environment is • Excellent interpersonal and customer facing skills likely to weigh on its construction sector growth, with • Able to prioritise and multi-task particularly when working under pressure and to tight deadlines the country set to remain one of the smallest markets in • Can demonstrate initiative and the ability to be proactive, while also being able to implement assigned tasks and pro- SSA through 2026. vide support to the firm’s management committee “Chinese investment is likely to be the main support- • Can carry out all responsibilities in a way which supports the practice’s values and promotes its equal opportunities er of industry growth over the coming years due to large and diversity principles existing commitments,” said the report. The research company indicated that the considerable 2. HEAD OF FINANCE risk associated with investment in Zimbabwe will result Role Description in the nominal industry value reaching $800 million by The purpose of this role is to manage the financial affairs of the firm particularly in a challenging and constantly changing 2026, suggesting that the country's construction market economic environment to ensure that the firm remains financially viable. will remain among the smaller ones in the world. “We forecast the industry to expand by an average 4,3 Responsibilities percent annually in real terms up to 2026, on the back • Prepare and control the firm’s budgets of Chinese investment in industry and special economic • Produce and present regular financial reports to the firm management committee zones,” BMI said. • Administer the payroll The Construction Industry Federation of Zimbabwe (CIFOZ) is of the view that most construction firms sus- • Prepare and file all tax returns (payroll and statutory tax returns) and ensure that the firm’s tax affairs are in order pended projects owing to continued disparities between • Interface with auditors, tax advisors and revenue authorities the Real Time Gross Settlement (RTGS) and the US dol- • Monitor and reconcile cash balances lar values. • Institute efficient controls for cash management CIFOZ believes that the four-tier pricing system cur- • Processing supplier invoices and ensuring timely payments rently obtaining in the economy is unsustainable for the • Apply a sophisticated approach to the use of data and analytics in financial planning and financial management of the sector, which requires significant amounts of foreign firm currency as working capital, amounting to at least $1,5 million monthly. Experience, Skills & Knowledge Overall, the sector requires in excess of $350 million • Accounting bachelors’ degree from a reputable institution and a professional accounting qualification. Being a qualified to recapitalise, retool and sustain operations. and registered chartered accountant is an added advantage However, according to the BMI report, some of the • At least 5 years’ experience working in a professional services environment; experience working for a busy law firm or Chinese-supported projects include the Gwayi-Shangani chartered accounting firm an added advantage Dam construction. • Able to work with automated billing and payment systems The report also noted that South Korean firms are • Experience with tax planning and interfacing with tax authorities undertaking a market study in Zimbabwe to assess bank- • Business administration experience an added advantage able energy projects, targeting investment in a 100MW • Able to maintain discretion and confidentiality plant. • Can demonstrate initiative, innovativeness and the ability to be proactive, while also being able to implement assigned Meanwhile, in an effort to support the sector, the Re- tasks and provide support to the firm’s management committee serve Bank of Zimbabwe (RBZ) last year established a • Can carry out all responsibilities in an ethical manner, with professionalism and in a way which supports the practice’s $50 million construction industry finance facility, meant values and promotes its equal opportunities and diversity principles for re-tooling and working capital requirements to be disbursed through banks at 10 percent interest. 3. OFFICE MANAGER The sector, according to CIFOZ, has been financing Role Description the various projects through construction bonds. The purpose of this role is to coordinate the firm’s activities and operations as guided by the firm’s strategic objectives and Zimbabwe’s construction sector is this year project- to undertake administrative tasks as may be assigned by the firm management committee. ed to register a 4,5 percent growth from negative levels in the past years on the back of revival of projects that had been stalled due to limited foreign currency and high Responsibilities production costs. • Recruit and supervise support staff Over the last decade, most construction companies • Manage procurement of office supplies in accordance with the firm’s policies relocated to other countries while some folded opera- • Provide implementation support to the firm management committee and the Business Development Manager tions due to limited opportunities. • Create and update records and databases with personnel, financial and other data [email protected] • Set up and maintain integrated electronic and paper-based filing systems • Plan and coordinate staff trainings • Promote and ensure compliance with firm policies and procedures in work flows • Prepare and submit timely reports and presentations as required or assigned by management committee

Experience, Skills & Knowledge • Bachelor’s degree in business administration; MBA and/or human resources qualification is an added advantage • Prior office management experience a must • Excellent organizational and leadership skills • Basic financial literacy an added advantage • Knowledge of MS Office programs and office management software • Able to work without supervision • Able to handle confidential information • Can demonstrate initiative and the ability to be proactive, while also being able to implement assigned tasks and pro- vide support to the firm’s management committee • Can carry out all responsibilities in a way which supports the practice’s values and promotes its equal opportunities and diversity principles

If you meet the requirements for any of the above vacancies, please send a detailed CV with traceable references, application letter and supporting documentation of qualifications to [email protected] by no later than 15 February 2019. Construction of the Gwayi-Shangani Dam Page 10 | January 24-30 2019 The Financial Gazette National News Manufacturing sector in $843m trade deficit Omega Ukama lor made for the local market” and Business Reporter that “local products cannot compete on the international market”. NDUSTRY minister Mangaliso Meanwhile, CZI says in 2018, Ndlovu says the local manufac- Zambia had the lion’s share of im- Ituring sector incurred a trade ports for locally manufactured deficit of $843 million in 2018. products, with 26 percent of the This comes as Zimbabwe strug- companies exporting to the southern gles with a persistent trade deficit, African country. which has become one of the coun- “Zambia is an attractive export try’s major challenges in its quest destination for local products be- for economic recovery, with offi- cause the goods are invoiced in cial data showing that the cumula- United States dollars,” Bandama tive trade shortfall since 2009 has said. breached $20 billion. She said Malawi was the second “In 2018, government provid- Mangaliso Ndlovu major export destination, with 19 ed foreign currency support to the cess to foreign markets, we could percent of market share while South manufacturing sector of more than still double our exports in less than Africa came third as an export desti- Choppies, Mphoko $1,066 billion, an increase of two two years,” Ndlovu said. nation at 14 percent in 2018. percent from the 2017 allocation. He said manufacturers should Ndlovu encouraged the sector to This accounted for 24 percent of the look ahead into 2019 with a focus pursue the Zambian market, adding total allocations made by govern- on boosting exports and import sub- that industry should assist govern- divorce finalised ment during this period. stitution. ment with policy direction in order “Despite such support, export “Despite considerable support to open other markets. Ndakaziva Majaka Choppies Botswana had brought in $25 earnings from the sector for 2018 from government, the industry still The CZI survey found that over- Markets Editor million from Barclays Bank of Botswa- were only $222,6 million. This gives experienced foreign currency short- all output for the sector grew by 12,1 na ― the underwriters of the funding us a sector trade deficit of $843 mil- ages, resulting in lost days totalling percent in 2018. Turnover increased OTSWANA-headquartered su- ― for the setting up of Choppies opera- lion,” the minister said at the launch to three months for some companies. by 20,49 percent after increasing permarket chain Choppies says it tions in Zimbabwe. of the Confederation of Zimbabwe “If we do not emphasise the im- 21,57 percent in 2017, while the has amicably solved its protract- “… The shareholders and directors Industries’ (CZI) State of The Man- portance of exports, we may find sector’s exports increased 10,6 per- B ed shareholder wrangle with Zimba- of Nanavac Investments, a subsidiary ufacturing Sector Survey for the pe- ourselves discussing a declining cent after increasing 3,51 percent in bwe’s former vice president Phelekezela of Choppies operating in Zimbabwe, riod September 2017 to August 2018 trend,” the minister said. 2017. Mphoko. have amicably resolved and settled all in Harare last week. Speaking at the same event, Ta- The confederation says output The retailer’s board ― which yes- issues, matters, cases and disputes be- The minister said the situation fadzwa Bandama, CZI’s chief econ- increased in tandem with improve- terday formally notified shareholders tween Nanavac and Siqokoqela and was unsustainable, adding that the omist, said reasons for the sector’s ment in capacity utilisation, which through a regulatory filing that the gro- Phelekezela Mphoko,” the board said in sector could do better. subdued exports during the year in- recorded a 3,1 percent increase from cer had resolved its litigation process ― its filing. “Notwithstanding the effects of cluded “high costs of production”, 45,1 percent in 2017 to 48,2 percent is anticipated to buy back shares held by Relations between Choppies and sanctions, which have limited ac- the fact that “some products are tai- in 2018. [email protected] the Mphoko family. Mphoko began souring last year when “In the initial agreement, the the latter’s son, Siqokoqela, was ac- Mphokos were given a 51 percent stake cused of looting funds and resources to comply with indigenisation laws from the company. Consequently, the but they never actually invested in the regional retailer dragged the former vice Foreign investors pull $2,1bn business … The initial agreement al- president’s son to court. lowed Choppies to buy back these When the squabbles erupted, Chop- shares whenever the group wanted to,” pies was already battling to contain a from Nigeria’s stock market a source said from Gaborone. crisis occasioned by a delay in publish- After being given seven percent ing its financials, which resulted in the free-carry shares as a token for facili- Johannesburg Stock Exchange and the OREIGN investors sold off Nigerian stocks valued at boost recovery following a 2016 recession could lift stocks tating the business’ operational set-up, Botswana Stock Exchange suspending 642.65 billion naira ($2,1 billion) last year, stock ex- by the second half. Mphoko then received an additional its shares late last year. Fchange data showed, 48 percent more than in 2017 as The main index, which was flat on Tuesday, has fallen 2 44 percent Choppies shares on paper The retail outlet is now hoping Pres- worries over weak growth amidst lower oil prices depressed percent so far this year. It shed 17.81 percent in 2018 after a to constitute a 51 percent black Zimba- ident Emmerson Mnangagwa’s govern- sentiment. strong rally the previous year. bwean majority as required by the coun- ment will allow it to retain majority con- Risk aversion triggered by interest rate rises in the Unit- Foreign investors increased the pace of stock market out- try’s laws then. trol in the Zimbabwe chain after recent ed States reversed capital flows to frontier markets including flows from May, selling out of the relatively liquid banking, By the admittance of Ramachandran pronouncements indicated that foreign Nigeria, coupled with mounting political risk in the run-up consumer and oil sectors as the capital flight worsened, put- Ottapathu, Choppies’ chief executive, companies could do so, with the excep- to elections next month, accelerated losses for the stock ting pressure on the local naira currency. the company’s operations in Zimbabwe tion of those in diamond and platinum market. OPEC member Nigeria suffered severe dollar shortag- are owned, “in the main, by Choppies mining. The exchange put the value of transactions by foreign in- es after prices of crude, its top export and main source of Enterprises Limited”, which is regis- Choppies has about 34 outlets in vestors at 1.219 trillion naira last year, compared with 1.208 foreign exchange, plunged in late 2014, prompting the in- tered in Botswana and the Mphokos Zimbabwe and intends to bump up its trillion naira at the end of 2017. troduction of capital controls in 2015. It now has multiple were only a front to bypass the county’s presence in the country to 60 stores, ac- Stock exchange chief executive Oscar Onyema has said exchange rates against the US currency and has been selling indigenisation law. cording to executives at the company. market sentiment in the first half of 2019 would be driven the dollar on the interbank market to boost liquidity after Ottapathu last year revealed that [email protected] by oil prices and election risk. But government spending to floating the naira for investors. – Reuters January 24-30 2019 Page 11 Companies&Markets The Financial Gazette BARCELOS TARGETS $4,5M CAPEX IN ZIM - P13 BARCELOS Flame Grilled Chicken (Barcelos) is plan- USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) ning to spend over $4,5 million this year in Zimbabwe as the South African fast food firm expands into the 0,52% 0,77% 0,11% 0,03% 0,35% region. 10,4934 12,93 723,21 11 699,95 1 344,46 CZI warns of big drop . . . as industry misses SI 122 Omega Ukama in capacity utilisation Business Reporter NDUSTRY has suffered significantly from the suspension Nelson Gahadza of Statutory Instrument 122 of 2017 with a Confederation of Business Reporter IZimbabwe Industries (CZI) survey showing that its amend- ment has reversed gains attained since 2016. HE Confederation of Zimbabwe In October last year, government suspended sections of the Industry’s (CZI) has warned of law to increase the flow of basic goods into the market after panic a gloomy outlook for 2019, pro- and speculative buying left some shelves empty, triggering short- T ages of some commodities. jecting capacity utilisation to decline to 34,3 percent this year from 48,2 percent According to the CZI “State of the Manufacturing Sector Sur- recorded in November 2018 as economic vey”, industry’s capacity utilisation declined by 6,2 percent to 42 fundamentals continue to decline. percent in November 2018 compared to 48,2 percent in August The economy is currently faced with a 2018. myriad challenges ranging from soaring Tafadzwa Bandama, CZI’s chief economist, last week said the inflation, fuel price increases, which re- decline was in part, “a result of policy inconsistencies, such as the sulted in riots last week, and foreign cur- suspension of SI 122”. rency shortages. Even though there were other factors causing economic de- A Confederation of Zimbabwe Indus- cline during the period, such as intensifying foreign currency try (CZI)’s 2018 Manufacturing Sector shortages, the survey shows that industry had made considerable Survey, which covered the period from strides on account of the law. September 2017 to August 2018, said Bandama said competition for markets had shifted to the do- waning confidence in the economy due to mestic front during the period September 2017 to August 2018. lack of a clear policy direction on curren- “In 2018, 46,6 percent of respondents faced competition from cy issues, among other factors, will result domestic enterprises compared to 26,8 percent in 2017. in companies scaling down operations. “The import substitution instruments that government put in “If the policy direction does not place in the form of SI64 of 2016 and SI122 of 2017 helped di- change, this is what industry expects in vert competition from imports to the domestic frontier,” Bandama 2019,” Tafadzwa Bandama, the CZI chief said. economist, said at the survey presentation Consequently, capacity utilisation rose by 3,1 percent from last week. 45,1 to 48,2 percent during the period under review. She said that at 34,3 percent capacity that capacity utilisation at 48,2 percent shortages of foreign currency,” Bandama “In August some companies were operating at very high ca- utilisation, some companies may close. in 2018 was 3,1 percentage points higher said. pacity utilisation levels, which were above 80 percent. Fears abound of possible, large-scale than 45,1 percent in 2017, on account of She said most companies highlighted “Capacity utilisation rose on account of import substitution job losses, with projections of the coun- import substitution and export promotion during the survey period that they were and export promotion policies that were implemented starting try’s labour market facing a difficult phase policies implemented from 2016. affected by antiquated machinery and from 2016,” she said. in 2019 as several companies have indi- “In August 2018, some companies were equipment breakdown. Statutory Instrument 122, which replaced SI 64 introduced in cated they may fail to resume operations operating at very high capacity utilisation “Most companies are using machinery 2016, had removed a range of products from the Open General due to deteriorating economic fundamen- levels, which were above 80 percent. The and equipment aged 20 years and more, Import Licence in a desperate bid by government to protect the tals. foodstuffs, drinks, tobacco and beverages, exposing the firms to high operating costs, local industry. Poor government policies have led to wood and furniture and other manufactur- which end up eating into working capi- Meanwhile, CZI said most businesses reported the cost pre- serious challenges impacting industry and ing goods had average capacity utilisation tal,” she said. mium of accessing foreign currency increased by more than 20 the economy at large, leading to compa- of above 50 percent. According to the CZI survey, the US percent. nies scaling up retrenchments, closures “However, compared to August 2018 dollar economy made local industries The industry body called for the encouragement and support and scaling down operations. On its part, capacity utilisation in November 2018 uncompetitive compared to industries in of value addition and beneficiation in order to boost value. government is also retrenching as it seeks declined by 6,2 percentage points to 42 neighbouring countries that produced in “We should liberalise the foreign exchange market in order to to cut its bloated wage bill. percent due to policy inconsistencies that weaker and non-convertible currency en- minimise foreign exchange transactions on the parallel market. Upon assuming power in November culminated in the suspension of Statutory vironment. “Companies also highlighted the need for transparency in 2017, President Emmerson Mnangagwa Instrument 122, which provided for the “As a result, they produced cheap in foreign currency allocation by the Reserve Bank of Zimbabwe,” promised to turn around the economy’s protection of local industry from cheap their countries and sell in Zimbabwe in Bandama said. fortunes and create jobs. imports. US dollars,” Bandama noted. “This will enable, product availability, price stability and busi- Bandama said in the survey report “The period was also characterised by [email protected] ness viability,” she said. [email protected] Page 12 | January 24-30 2019 The Financial Gazette Companies & Markets ZNCC demands skills review Shame Makoshori commerce had either been compromised by has compromised the level of skills in Zim- Companies Editor the brain drain or rampant corruption in the babwe, which now faces serious shortages of country. professional in the critical medical, finance HE Zimbabwe National Chamber of “People who are qualified to run institu- and education sectors. Commerce (ZNCC) says government tions are no longer there. They have either left Mugaga said Zimbabwe also needed to Tshould come up with mechanisms to the country or corruption has compromised guarantee property rights for investors and plug the skills gap in the local market. the quality of skills. The sharpest minds will make sure that institutions like the defence In the wake of an economic crisis that has always end up in South Africa. We also need a forces are kept away from business as this affected Zimbabwe for almost two decades, review of our skills because they are no longer sends wrong signals to investors. millions of the country’s top brains have fled in line with what we need as a country,” he He added that Zimbabwe's leaddership the country to seek better opportunities in oth- said must also engage in dialogue to defuse po- er nations. The trained economist further indicated that litical tensions between the country’s major It is estimated that over one million of these there was need to establish institutions that are political parties.’ have migrated to South Africa, while more independent in executing their mandates. The ruling ZANU PF, said the ZNCC chief, than two million are now resident in countries These include institutions like the Reserve should realise that the major opposition, the like Britain, New Zealand, Australia and the Bank of Zimbabwe and a judiciary system that MDC Alliance, garnered over two million United States of America. guarantees the rule of law and property rights. votes during general elections in July last year. Christopher Mugaga, the ZNCC chief ex- He said poor skills were part of a broad This makes it an important player in the de- ecutive officer, told The Financial Gazette last range of issues affecting the development of cisions that grow the economy, Mugaga added. week that the level of skills in industry and the economy but were rarely mentioned. This [email protected] Christopher Mugaga Forex shortages stall Proplastics’ planned move to new plant

Nelson Gahadza Business Reporter

ROPLASTICS says its plans to Pmove into a new factory has been ham- pered by the prevail- ing foreign currency shortages. Zimbabwe is bat- tling its worst eco- nomic crisis in a de- cade due to a severe shortage of foreign currency largely caused by huge an- nual trade and budget Kudakwashe Chigiya deficits, mounting debt and illicit financial inflows, among other things. Kudakwashe Chigiya, Proplastics’ chief executive, told The Financial Gazette that the listed industrial concern was expected to start using its new plant in November 2018, but has since shifted the dates to this year. “New factory construction is now at 93 percent complete, and the remaining seven percent is due to foreign currency constrains that we are facing to im- port auxiliary equipment. These include cables and transformers that require foreign currency,” he said. Chigiya said the company has, for the past 12 months, failed to secure enough foreign currency to meet its daily needs. The new modern plant sits on 5 200 square metres and is expected to further give the company necessary competitiveness to penetrate attractive export markets. Some of the plant's components were imported from Italy. Meanwhile, the Proplastics boss said demand for the company’s products is currently subdued due to limited activity in the market. He said several projects, where the company is sup- plying material, have stalled due to lack of liquidity in the economy. According to Chigiya, the company has since 2016 been on a thrust to improve efficiencies, which culmi- nated in the construction of the new factory. He, however, noted that the export market is cur- rently not competitive due to the United States dollar indexed cost of production. Proplastics is among a host of companies that bene- fitted from protective measures introduced by govern- ment such as SI64 of 2016, which put plastic pipes and fittings under import management with a view to re- strict their importation. This translated to more demand for the company’s products. The company’s top line is usually largely driven by demand from civil construction projects, merchants and irrigation projects. [email protected] The Financial Gazette January 24-30 2019 | Page 13

Companies & Markets Barcelos targets $4,5m capex in Zim

Ndakaziva Majaka be it EcoCash, swipe and bond note,” the former Markets Editor Woolworths South Africa employee said. He said by mid-year, the chicken restaurant, ARCELOS Flame Grilled Chicken (Barcelos) is posing stiff competition to Simbisa Brands’ Nan- planning to spend over $4,5 million this year in Zim- dos, which has traditionally been the Zimbabwe- Bbabwe as the South African fast food firm expands an go-to for flame grilled chicken meals, was into the region. poised for growth. Benson Muneri, Barcelos’ director for the local unit, “We offer the best flame-grilled peri peri said the restaurant, which burst onto the local scene last chicken in an awesome, unique store environ- year, was unfazed by Zimbabwe’s deteriorating economic ment with great service. We are also here to situation after it opened three outlets in 2018. compete with the best in Zimbabwe … We were “All in all, we’re looking at investing $4,5 million in well-received and expect demand to shoot up be- Zimbabwe in the next 12 months. Barcelos plans to open cause of the methods of payment we accept and five more branches of the franchise in the next 12 months in great service,” he said. Gweru, Victoria Falls, Mutare, Rusape, Kadoma and Kwe- Currently, Barcelos is headquartered in South kwe,” he said. Africa and has 80 outlets in that country. It also Muneri and his business partner, Cleopas Mugomba, has footprints in Dubai, Saudi Arabia, Botswana, operate the peri peri flame-grilled chicken firm after they Namibia, Turkey Egypt, Pakistan, India, Mal- acquired the master franchise licence from Barcelos Inter- dives, Mauritius, Sudan, Canada, Jordan, Mo- national. zambique and Iran. Muneri said the franchise holders were currently look- [email protected] ing at opening a second store in Bulawayo. “We are planning to open a second store in Bulawayo. (At the) Bulawayo store, we’re looking at investing $350 000 that will in turn employ 35 to 40 people,” he said. Each establishment is set to employ about 30 to 35 work- ers and an aggregate of over 500 employees, both males and females, in Harare and more as we expand into other cities. Muneri ― who has worked for another peri peri flame- grilled chicken giant Nandos ― said the restaurant was un- fazed by economic headwinds being experienced in Zim- babwe. “The economy is not performing well but it’s a passing phase. Despite the challenges in the country, we have not increased our prices and we accept all forms of payment, CFI pushes for end to Victoria Foods administration Adelaide Moyo Business Reporter

FI Holdings (CFI) says it has furnished the judicial manager with a proposal to ensure Victoria Foods Cand Crest Poultry Group exit judicial management. The agro-industrial firm’s subsidiaries were placed un- der judicial management after the High Court gave the nod to the group’s application for voluntary placement. CFI acting chairperson, Itai Pasi, said the board is work- ing closely with the judicial manager on Victoria Foods and Crest Poultry Group. “The group has now furnished the judicial manager with a scheme of arrangement proposal in order for both entities to exit judicial management. “The group will be engaging creditors and lenders of entities under judicial management in order to conclude a scheme of arrangement of Crest Poultry Group to enable the entity to trade sustainably going forward,” Pasi said. Entities under judicial management incurred a 71 per- cent decline in loss before tax to $900 000 during the year ended June 30, 2018 compared to a loss of $3,1 million the previous year. This was on the back of a resumption of operations at Agrifoods and impact of toll milling arrangements entered into at Victoria Foods. CFI has funded Agrifoods with $2,8 million since it went into judicial management in order to kick-start the operations pending conclusion of schemes of arrangement. The group reported a 262 percent increase in profit to $3,188 million during the year ended June 30, 2018 com- pared to $879,869 reported in the previous comparable pe- riod on the back of an increase in turnover. Pasi said given the improved profitability and cash gen- eration, opportunities for exploiting internal recapitalisa- tion will be exploited. “Your group’s balance sheet is stronger and well po- sitioned to underwrite further growth in the forthcoming years,” Pasi said. Turnover advanced 44 percent to $61,3 million during the review period compared to $42,5 million achieved in the prior period. Retail operations contributed 95 percent to turnover while farming operations contributed five percent. CFI has been subject of a bitter fight between major shareholders, Stalap Investments and Messina Investments, which control 41 percent and 42 percent respectively. Sta- lap is an investment vehicle for shares held in CFI by the National Social Security Authority (Nssa) and Zimre Hold- ings. The firm has since appointed a new board and senior management following the forcible removal of all Stalap, Nssa and Zimre appointed board. [email protected] The Financial Gazette January 24-30 2019 | Page 14

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Companies & Markets ‘Insurers slow in digitalising’ Nelson Gahadza Zimbabwe’s insurers were competing favourably and giving them the choice as to where and how to Business Reporter with the rest of the world in technology systems and access their products and services,” she said. customer services, but now lagged behind. Mukonoweshuro said the Transitional Stabili- IMBABWE'S insurance market has been “This may be because of the cost of replacing sation Programme (TSP) set a target of increasing slow in adopting digital technologies, which some of the legacy backend systems that do not lend insurance penetration ratio from the current five per- Zare critical to growth of the sector, the Insur- themselves to real time online processes. Generally, cent to 20 percent by the year 2020. ance and Pensions Commission (IPEC) has said. insurers, particularly the large ones, have relied on Other targets of the TSP relating to insurance Lynn Mukonoweshuro, the IPEC chairperson, their dominance and brand to retain their market and pensions include broadening insurance support said most of the big players have only partially dig- share. This is no longer the case as I am sure you to agriculture through development of products that italised. have all observed and felt the brunt of the disruption target agriculture, reviewing some of the stringent in- “Until we can offer a true digital basic service to that some of the more digitally savvy players in the surance industry licensing requirements and savings customers, we will not be able to enjoy the benefit of industry are creating by exploiting digital technology mobilisation for key national projects. these transformational technologies and the gap will to capture the market,” she said. Mukonoweshuro said the TSP deliverables can continue to widen. The IPEC chairperson noted that in developed only be achieved if the media partners IPEC and in- “In order to remain relevant and capture the next markets, virtually all insurers now provide a com- surance players in promoting confidence in the sec- generation, local insurers must accelerate their pace plete online process for quotes and purchases. tor and enhancing consumer knowledge. of adoption and if it is not already, then it must be “In addition to their traditional service models, “Members of the media should disseminate in- one of your top strategic priorities regardless of the they also provide a completely online customer ser- formation about micro insurance and micro pen- state of the economy,” she said at an insurance and vice platform allowing customers to self-service for sions, which are key drivers of insurance penetration pensions mentorship programme for journalists. basic contract amendments and renewals. By so do- and pension coverage,” she said. Mukonoweshuro said a couple of decades ago, ing, they are putting the customers’ convenience first [email protected] Lynn Mukonoweshuro James North cashes in on rainy season in Zambia Ndakaziva Majaka Markets Editor

AMES North says it performed ahead of target and expectations in the Zambian market after the industrial Jprotective wear manufacturer projected an over 60 per- cent output surge for 2018. Sifelani Jabangwe, the firm’s general manager, last week told The Financial Gazette that the group ― Zimbabwe’s largest producer of industrial protective wear and tarpaulins ― was cashing in on the rainy season’s bulk orders from neighbouring Zambia. This contrasts the harrowing tales of company closure coming from other local manufacturers. “Fortunately for us, the Zambian market has really come through. Traditionally, our bulk orders are processed in De- cember but January has been very promising and we expect a good first quarter,” Jabangwe said. The Confederation of Zimbabwe Industries president also indicated that his company was pinning hopes on time- ly foreign currency allocations to meet demand on the ex- port market. “A lot will depend on us having adequate raw materials, which are facilitated by direct forex allocations … We have however put in place supporting plans should things go ei- ther way. “In the past we have actually been limited by output, so this is an area we are looking at improving,” he said. Pointing out that significant profits were expected for 2018 on the back of improved exports, Jabangwe said he also anticipated increased demand from the formal sector if the country’s economic situation stabilised. However, he said export revenue was anticipated to off- set any losses posed by the local market instability. “Our target market is Zambia where we sell raincoats at this time of the year. We are targeting farmers mostly.” The company also exports to neighbouring Mozambique and Malawi as well as Kenya and Rwanda. Jabangwe said James North had started refurbishing parts of its plant and expected to spend about $60 000 to $100 000 on retooling, which will cover sewing machines and other equipment. “We have started retooling parts of our plant. We are looking at about $60 000 to $100 000 to retool … we have had an increase in terms of demand for tarpaulins, so we are looking to invest that much in that area,” he said. Jabangwe last year pointed out that domestically, the company anticipated higher orders on the back of a positive economic growth outlook, which could now be dented by a lower capacity utilisation being projected by business. “2018 output will be above 70 percent. We produce in- dustrial protective clothing, so as companies have been turn- ing around, demand for our products has been increasing. We are the only manufacturer of industrial raincoats. “Agriculture has been growing and the demand for our products has been growing as well. Some imported products fail. Our products are quality. This has helped to keep de- mand for our products growing,” he said then. [email protected] Page 16 | January 24-30 2019 The Financial Gazette Motoring Volvo XC40 D4 R-Design Good enough to be seen in greater numbers

TOP GEAR with Richard Wiley

’VE enjoyed the use of a number of XC40 models since the suave ISwede nosed into South Africa in April 2018 to great acclaim, and with- out exception, and irrespective of the colour, each version has attracted very positive “car park comments.” The public likes the look of this pre- mium compact SUV but the love affair simply doesn’t convert into the number of sales that the model’s undoubted vir- tues deserve. It’s that old bugbear that steers buying patterns in a predictable Rear space is more generous than the relatively compact external dimen- All-electric seat adjustability and lots of nice cabin direction and that bugbear masquerades sions might suggest detailing to be enjoyed under the title “perception.” Ask any competitive-brand sales- word in handling fi nesse, it’s certainly man to take in a Volvo as a trade-in and good by the standards of the class. you’ll get a look that suggests a cannis- The power steering system will ter of sulphur has been uncorked. They suit most drivers too as it’s light and don’t want “sitting stock” so the offer, endowed with a consistent weighting if one is made at all, is lean enough to when twirled. Sure, the feedback may ensure the would-be-seller departs with actually be a little artifi cial but that mat- the same set of car keys. ters little in general road use. There’s also the issue of limited geo- As for motive power, the ubiquitous graphic dispersion of accredited deal- 140kW/400Nm 2.0 turbo D is a good erships. Such necessities are a bit thin all-rounder in that it offers snappy and on the ground which is understandable mostly lag-free get-up and go as well given the limited volumes on offer for as fuss-free and quiet cruising. It’s any would-be participant, so to count- only when really pushed that it can be- er this, Volvo has devised various “in- come growly ― a characteristic shared house” sweeteners to encourage repeat with Volvo’s petrol engine of the same sales, but such incentives don’t spread displacement ― and for the statisti- the net, so to speak. cian’s, that means taking it to a max of I raise all these matters to make it 210km/h, or more commonly, surging quite clear that the XC40 is worthy of to 100 in around 7.9s. I should make attracting far more custom and that it the point that the engine in this unit is not inherent defi ciencies within the seemed particularly sprightly and I put package that ensure this model, and the that down to the fact that it had more brand as a whole, remains a relatively kilometres on the clock than most press rare sight on our roads. Plenty of black detailing marks out R-Design derivative cars. So, what does the D4 R-Design In terms of fuel consumption, I re- bring to the table? Well the R-Design corded an overall fi gure of 7.2l/100km bit tells you it’s dressed up more than but noted a rise to around 9.0 in twin usual with more prominent air intakes traffi c and a pleasing reduction to framing a gloss black grille, two-tone around 6.8 on the open road when the paintwork and a fancy rear diffuser relaxed engine note and effective sup- with rectangular chromed exhaust tips. pression of wind noise made for very The test unit also rode on optional twin- good refi nement levels. spoke polished alloys shod with sub- Stopping the Volvo is a drama-free stantial 245/45/R20 rubber. affair thanks to the nicely-weighted The brick red paintwork sported a all-disc system that’s easy to feather at decent gloss but close inspection re- low speeds. And getting it off the line vealed lots of fi ne orange peel on the is just as assured thanks to an 8-speed vertical surfaces. The gloss black roof auto that switches cogs unobtrusively if extends one third of the way down not especially quickly and which comes the substantial, reverse-angle C-pillars with all-important paddle shifters that which seriously impair rearward vision offer the driver so much more control. while the black theme is continued on As with every XC40 except the en- the wheel arch trim, mirror housings, try level model, All Wheel Drive is stan- window frames and on the lower sills dard fare and automatically distributes and rear bumper. My subjective opinion torque to the wheels that offer the most suggests that the black roof treatment grip. Given the fact that this SUV does would work better with a lighter prima- not suffer from excessive overhangs ry body colour. and sports generous ground clearance, As for the interior, that R-Design not to mention an off-road Drive Mode, theme brings seats trimmed in a mix Hefty, reverse-angle C-pillars do nothing for rear three-quarter visibility it should prove effective in the rougher of alcantara and leather, lots of attrac- stuff should anyone dare to take such a tive aluminium trim detailing and a variable lumbar support, and offer ex- tainment screen display. I have had no supplement an already safety-orientated smartly-executed piece of kit off-road. thoroughly useful cell phone charging cellent comfort and good posture, so a cause to change my view that Volvo body structure and cruise control, to For more normal use, that Drive Mode pad. Apart from the decidedly unusual long stint behind the wheel can be en- has assigned too many functions to this name the more important bits. also includes Eco, Comfort, Dynamic use of carpeting on the doors, there’s no joyed without the usual aches and pains. iPad-like screen ― for example, the Talk of the body structure reminds and Individual settings. doubting the designers have succeeded Given that this is not a large vehicle, menus have to be called up to cancel me that the XC40 rides on what is The XC40 is available in a dizzy- in creating a premium ambience thanks space in the rear is greater than might be the auto engine stop function when a known as the CMA platform which uti- ing number of derivatives which offer to the use of lots of soft-touch surfacing expected and access through the wide single button on the console could do lises MacPherson struts up front and a equally variable colour combinations and smart detailing. opening doors is good. Luggage space the job with no need for scrolling ― but multi-link arrangement at the rear. De- but whatever your fi nal choice might This test unit happened to feature at 460 litres is about par for the SUV I do accept with familiarity, this once spite the slightly stiffer springing of the be, if you’re in the market for a pre- an all-black interior which should suit course and extends to 1 336 litres if the eye-popping feature will become easier R-Design spec, this Volvo rides with mium compact SUV, this is one that 99.99% of South Africans, but as with complete 60:40 backrest is folded down to activate. a pleasing pliancy that makes for very should be on your short list. Design the exterior, I feel that paler colours from its rather upright position. Other niceties include lovely Har- comfortable progress, even on fairly detail is a forte and decent mechanicals, better enhance the distinctive Scandina- All the usual electronic aids, includ- mon Kardon sound, sat nav, a virtual broken surfaces. This softish undertone good fi nish and good dynamics all add vian design theme which sets the XC40 ing keyless entry/start and Bluetooth, primary instrument display, a huge pan- does not come at the expense of control up to a compelling package that should apart from its rivals. are on board along with effective air oramic sunroof, a virtual camera linked at higher speeds or when cornering and be seen in greater numbers if perception Both front seats are endowed with con that needs to be massaged through to park sensors, cornering lights, lane- while the XC40, rather as expected giv- didn’t play such a dominant role in pur- full electric adjustment, which includes the now-familiar Volvo central info- keep assist, a plethora of air bags which en its generous ride height, isn’t the last chasing decisions. [email protected] The Financial Gazette January 24-30 2019 | Page 17 Column Why do most Zimbabwean firms struggle with incompetent people?

HAT exactly do we mean when we say a l Highly intelligent and capable people they get into a system staffed with incompe- on who joins your organisation. In the long person is competent? The dictionary de- who should succeed under ordinary circum- tent people. The system will be too powerful run, your organisation succeeds based on the Wfines competent as “having the necessary stance fail because of personality defects. for them. quality of the people you hire. ability, knowledge, or skill to do something success- This is why you may find those fairly intel- The unfortunate part with all of the above Until and unless we start hiring people on fully”. Please note that you are only pronounced as ligent people doing stupid things. Unfortu- problems is that they can be addressed if an merit in the private sector and government competent when you do something successfully. The nately, personality is largely hereditary and organisation agrees to follow proper recruit- we will continue to struggle as an economy. assumption is that this something is positive and is due to early childhood experience. If you ment and selection policy. Only those organisations hiring people on pre-agreed before the person performs it successfully. hire someone with a personality defect you Most organisations think they are saving merit will enjoy sustainable long term suc- I have noted that most Zimbabweans tend to will never be able to change them. costs by taking shortcuts as outlined above cess. equate experience and level of qualification as being l One good hire among many incompe- but the cost of hiring an incompetent per- competent. The truth on the ground is that there are so tent colleagues will not make a difference. son and pretend they are competent is huge. l Nguwi is an occupational psycholo- many people who are highly qualified for their roles You need to at least have more than half of Most organisations realise this when it’s too gist and managing consultant with Indus- but are incompetent. There are also many people who your staff being competent in order to win. late to take corrective action. trial Psychology Consultants. He writes in have the requisite This is why you find good people fail when There is no substitute for being thorough his personal capacity. number of years of experience but are incompetent in their roles. Administration and Finance Brewery and Sales I have noticed Bulawayo Municipal Commercial Undertaking that these as- P.O. Box 443 t/a Steelworks Road H.I.S sumptions have Bulawayo P.O. Box 443 led many people 17 &18 Khami Road Bulawayo to hire the wrong HR Perspective people. Telephones: (263 9) 66314 Ingwebu Breweries Telephones: (263 9) 71691/60886 with Scientific evi- Fax: (263 9) 62403 Fax: (263 9) 62403 Memory Nguwi dence shows that level of education (years of education) and experience (in terms of num- bers years) combined contribute only three percent variance in individual performance. Despite the above scientific evidence it seems those with the responsibility to hire people for what- ever role have an obsession with qualification and ex- The Royal Brew perience. Qualifications are good because they give domain technical know-how for the role but are not sufficient for competent performance. The same ap- REGISTRATION OF SUPPLIERS RE-ADVERTISING plies to experience; it gives you the necessary expo- Being guided by Public Procurement & Disposal of • Printing Services, Promotional Materials, Sign Post & sure but again it's not sufficient for successful perfor- Public Assets Act (22:23), Ingwebu Breweries is inviting Banners mance. Given all the above why it that we have so many applications from CURRENT and prospective suppliers • Protective Clothing& Promotional Material incompetent people in jobs: for consideration as approved suppliers of goods and • Refrigeration equipment, installation & maintenance l There is a general obsession with qualification services. All prospective suppliers who had responded • Rubber products (fan belts, conveyor belts etc) despite scientific evidence that shows that years of to the previous adverts need to make fresh submissions • Stationery education alone are not sufficient for successful per- again including proof of been registered by Procurement • Silo Repairs and Maintenance formance Regulation Authority of Zimbabwe (PRAZ) • Steel Fabrication & Machining l There is an obses- Most managers, • Transporters (Long and local Trips:10-30ton Trucks when given an op- sion with experience “portunity, hire peo- with those with high- Core Business Horses & Rigid) ple they like. They hire er years of experience • Air Conditioning equipment, installation & • Tyre Vehicle & Forklifts people based on other preferred in the hiring maintenance • Water Engineering factors (relationship process. This is again • Alarms system, equipment, installation & repairs despite ample scientific with the candidate, at- evidence showing that • Auctioneers Application procedures and requirements tended the same school, years of experience has • Auto recovery The following documents to be submitted with the come from the same vil- a very weak relation- • Brewing Ingredients (Yeast, Enzymes,) application form: lage, physical appear- ship with actual perfor- • Compressor Supplies & Repairs • Company profile (Include contact details of two ance) not related to the mance on the job once capacity to perform. • Computer hardware & consumables, IT Network & key personnel) the person has attained Hardware • Certificate of Incorporation This is probably one of the minimum years of the biggest problems experience required for • Construction & Renovations • CR14 form responsible for hiring of a role • Courier Services • Current Tax Clearance Certificate (ITF263) incompetent people” l Past performance • Coal Suppliers • VAT Certificate is a good predictor of • Chemical – General, Mug, Boiler, Lime & Effluent • Company banking details performance in most Chemicals etc • Introductory Price List & terms of Payment. roles. You must always ask yourself before hiring • Electrical supplies & repairs Proof of registration with PRAZ anyone: What has this person achieved in a similar • role? If the answer is nothing, do not hire them. That • Freight, clearing & forwarding record of previous performance must be a consistent • Fire Management & Extinguishers Application forms to be obtained from The Purchasing record of performance and not a one-off performance. • Frontend Loader Hire Manager‘s office. For two categories (and not more than l Cognitive ability (general mental ability) is the • Forklifts Hire THREE per organization), applications should be in separate biggest predictor of performance across all roles. If • Fuel envelopes and clearly marked. the person does not have this at the right level you can forget about performance no matter how good the • Groceries environment is. The person will fail to deliver. This is • General Hardware/Electrical/Plumbing Interested companies may submit their applications not the weakest link for an organisation. They hire people • Internet Access Provider later than 22 February 2019 by hand or courier delivery to who do not even have potential and think they will • Laboratory equipment the Purchasing Manager’s Office (A box will be placed at change them. General mental ability is largely hered- • Mealie Meal - Millers the Brewery reception) in sealed envelope clearly indicating itary and is a result of early childhood experience. By • Medical & Pharmaceutical Supplies the category you are interested in or addressed to: the time you are hiring an employee, they are sealed in terms of cognitive capacity. Always hire people • Motor Cycle Suppliers, Spares & Repairs who have the potential to go higher. • Motor Vehicles Repairs & Maintenance The Purchasing Manager l Most organisations hire people who speak well • Motor Vehicle Spare Parts, Batteries& Bearings Ingwebu Breweries in interviews but that has no relationship with per- • Motor Vehicles Suppliers P.O.BOX 443 formance. • Mechanical Supplies (Boiler Supplies, Bearings & Steelworks Road l Most managers, when given an opportunity, hire people they like. They hire people based on other Repairs) Bulawayo factors (relationship with the candidate, attended the • Office Furniture & Repairs [email protected] same school, come from the same village, physical • Oils & Lubricants appearance) not related to the capacity to perform. • Panel beaters & Spray painter ** Please note that late submissions will not be accepted. This is probably one of the biggest problems respon- • Pest Control & Fumigation services Only successful companies will be contacted. sible for hiring of incompetent people. Page 18 | January 24-30 2019 The Financial Gazette Column Fundamental rights of taxpayers HERE are two types of taxpayers’ rights. You are allowed to engage in tax administrative action to produce documentation. Nevertheless you are required The fi rst concerns the ordinary rights for avoidance but not tax evasion. The Administrative Justice to keep books of accounts and other records for six years. Tpeople who comply with the law and The tax Bill must be passed Act and the Constitution of Zim- In the event that the conduct of the commissioner-general want to see fairness and effi ciency in the daily into law before it can be used to babwe protect you against abuse or any of his/her delegated staff has been unreasonable, operations of tax administration, collection and collect taxes. A demand for tax by an administrative authority. unfair or irrational you have the right to seek the protec- enforcement process. These rights tend to be from you by ZIMRA should be You have a right to adminis- tion of the law. used when there are issues between the tax au- supported by an assessment and trative conduct that is lawful, Right of confi dentiality and secrecy thorities and taxpayers. The second type of tax- this should be communicated prompt, effi cient, reasonable, Your affairs are a delicate matter and should be treated payers’ rights involves those rights that relate to to you. An assessment should proportionate and impartial with utmost respect and confi dence by the revenue au- the specifi c validity, operation and application show your taxable income and and that is also practical and thority and its agents or employees at all times. Your in- of the law. However, all rights are enshrined any credit entitlement. You can procedurally fair. If your right, formation should not be shared with another person who in the Constitution, Administrative Justice Act object to a statement without Tax Matters freedom, interest or legitimate is not yourself; unless it is with your lawfully appointed and Zimbabwe Revenue Authority (ZIMRA) these features or a liability ar- with expectation has been adversely representative (lawyer or taxpayer adviser). A letter ap- Charter and we explain some of them in detail bitrarily determined; unless the Marvellous Tapera affected by administrative con- pointing the tax adviser or lawyer is required from you by in this article. obligation to assessment of your duct, you have the right to be ZIMRA otherwise ZIMRA will refuse to recognise such Right to certainty or right to pay no tax liability is imposed on you given promptly, and in writing, appointment in order to protect itself from breach of the more than the correct amount by the law under a system known as self-as- the reasons for the conduct. ZIMRA is an ad- secrecy provisions. Disclosure of information or docu- In the fi rst place the law has to be certain sessment. You are also protected where the law ministrative authority along with other govern- ment to the Minister or any other person authorised where regarding its meaning, the rate of tax and date is ambiguous or is capable of more than one in- ment authorities. It is expected to apply the rea- necessary, under the law or where it is by the order of a of tax remittance. Tax should not be determined terpretation by given the benefi t of doubt under sonable person test in its dealings with you. You competent court, is permitted by the law. arbitrarily. You are under no obligation to pay the contra fi scum rule. have a right not to be harassed; and you deserve In a court hearing you also have the right to ask the more than what the law expects you to pay. Right to fair to be given an adequate and reasonable notice judge to exclude any person whose attendance is not nec- essary for the hearing of your appeal. It is also within your rights to prevent the publication of your court case. How- ever, the court may authorise the publication of the case for the legal consideration of interest to the public. Right to privacy You have a right to privacy ,which includes the right not to have your home, premises or property entered, without your permission; your person, home, premises or property searched; your possessions seized and the privacy of your communications infringed. Your right to privacy is however affected through application of some of the provisions of the Income Tax Act, particularly those relating to the commissioner’s powers of search and sei- zure in order to access information related to tax matters. The commissioner may in writing request for information from you regarding any matter relating to your income, liability to tax, and any transaction. He may also apply to a judicial offi cer for a search warrant in circumstances where he has reasonable suspicion that you have commit- ted a tax offence. The Interception of Communications Act (Chapter 11:20) allows ZIMRA or their selected nominee the right to intercept a taxpayer’s communication channel for ex- ample emails or telephone calls in the process of carrying out investigations on application to the Minister. The ap- plication is granted should the Minister be satisfi ed that there are reasonable grounds that the gathering of infor- mation concerning an actual threat to any compelling na- tional economic interest is necessary. The commissioner should, however, have reasonable grounds to believe that the gathering of information will result in exposing the tax compliance status of the company. Right to appeal If you are in disagreement with the revenue authority, you have the right to fi le an objection with the commis- sioner-general. This should be in writing and specifying the grounds upon which it is made. It should be fi led with the commissioner-general within 30 days after the date of the notice of assessment or of the written notifi cation of the decision to you. Your objection is restricted to an assessment, a decision or determination made by the commissioner-general. However, it is not every matter that you may object to and you should consult the law for details. An objection not meeting the required essentials is considered invalid. It can only be accepted by the com- missioner-general at his discretion. After you have lodged a valid objection and you have not heard from the com- missioner-general within 90 days of the date of objection you may consider your objection disallowed. If you decide to take your matter further you have 21 days from the date the commissioner-general denies your objection to appeal either to the High Court or Fiscal Court/Income Tax Court of Appeal. Your appeal should be in writing and specify whether you want to appeal to the Fiscal Court or High Court, otherwise it is considered invalid. Should you not be satisfi ed with the outcome of the Fiscal Court or High Court as the case may be, you can appeal to the Supreme Court. Meanwhile, payment of tax is not suspended by the objection or appeal process, unless the commissioner has directed otherwise. Conclusion The fact that you have the protection of the law is not a passport for breaking the law; you also have the corre- sponding obligations which will ensure you abide by the tax laws. Also for Zimbabwe to be an attractive nation in terms of living standards and investment it needs revenue and that revenue can only come from paying our taxes. Meanwhile Matrix Tax School will be hosting its 2019 Victoria Falls Tax Conference from May 22 to 25. Also join us at our 2019 Tax Update Seminar on February 13 at the Holiday Inn Harare for an in-depth understanding of 2019 tax updates. For details visit our website http:// matrixtaxschool.co.zw/tax/seminars/.  Tapera is the founder of Tax Matrix (Pvt) Ltd and CEO of Matrix Tax School (Pvt) Limited. He writes in his personal capacity The Financial Gazette January 24-30 2019 | Page 19 Column Managing conflict of interest

CONFLICT of interest is a situation where an indi- Conflict of interest can not always be avoided but it must be acknowl- vidual puts his/her personal interests ahead of those edged and action must be taken to ensure that the conflict situation is mit- Aof the organisation. For example, where a board igated effectively. If a conflict does arise and is not prevented, it can result member enjoys a direct financial gain through the sale of an in irreparable damaging influence on confidence stakeholders have in the organasation’s property to the director or to his/her spouse board and the organisation. This can result in an adverse impact on board and below market rates or where a contract is awarded to the di- organisational performance as reputational damage is instant and difficult to rector or his/her spouse without going to tender. repair. Indirect financial benefits can also arise such as awarding The board should be notified as soon as potential or real conflict of inter- an employment contract to a friend or to a family member in est is identified, detailing nature of the conflict and how it can be dealt with. a non-transparent manner. At the investigation stage, the board should not publish papers that discuss Why attention in managing conflict the matter and all discussions should be held on a formal and objective basis. of interest continues to grow? The director who is implicated should recuse himself/herself during the Attention in managing conflict of interest continues to Terrence N. Chimanya entire process. Minutes of the meeting/s should record why the director in grow since the Enron, Parmalat and Polypeck International question recused himself/herself and at what time he/she returned to join the scandals. Good governance remains fundamental to the suc- l Director board memberships; proceedings. If legal advice is that the conflict can not be resolved, the direc- cess of any organisation. Board members have a fiduciary l A privacy statement to protect board members’ declarations; tor in question will have to resign from the board. responsibility to act in the best interests of the organisation l Steps to follow if conflict of interest is identified; Setting an ethical governance tone by boards will go a long way towards that they serve. They must: l A section on the handling of business gifts; and providing solid pillars for managing conflict of interest at board level. l Act in good faith and put the interests of the organisa- l A provision on how contracts are to me managed. lChimanya is a corporate governance practitioner. He writes in his tion ahead of their own; l When the system fails personal capacity. l Exercise their powers for the furtherance of organisa- tional interests; and l Observe a duty of care in discharging their duties with regard to the law. It is the shared responsibility of the board to set the right tone for managing conflict of interest and ensure that the or- ganisation is fit for purpose and provides strategic direction to attain its goals. The question I keep hearing from various forums is, “What can be done to ensure good governance?” In my view, It all starts with the ethics and principles of each director. If the board behaves ethically and lawfully, then this sets a high standard for the rest of the organisation. Managing conflict of interest a). Proactive management Best practice is that boards proactively manage conflict of interest by adopting a conflict of interest policy. Such a policy should, inter alia, cover the following: l Strategic justification for the policy; l A section for board members to declare interests; China’s annual growth slowest since 1990 HINA expanded at 6,6 percent in 2018, official fig- ures out Monday showed. C In the three months to December, the economy grew 6,4 percent from a year earlier, down from 6,5 percent in the previous quarter. The data was in line with forecasts but underlines re- cent concern about weakening growth in the world's sec- ond-biggest economy. China's rate of expansion has raised worries about the potential knock-on effect on the global economy. The trade war with the US has added to the gloomy outlook. The official figures showed the weakest quarterly growth rate since the global financial crisis. While China watchers advise caution with Beijing's of- ficial GDP numbers, the data is seen as a useful indicator of the country's growth trajectory. Slower growth in China means slower growth for the rest of the world. It accounts for one-third of global growth. Jobs, exports, commodity producing nations ― we all depend on China to buy stuff from us. Slower growth in China also means it is harder for China to address its mountain of debt, even with the Communist Party's undoubted ability to be able to support the economy. Growth has been easing for years, but concern over the pace of the slowdown in China has risen in recent months as companies sound the alarm over the crucial market. Earlier this month Apple warned weakness in China would hit its sales. Carmakers and other firms have spoken out on the impact of the trade war with the US. China's government has been pushing to shift away from export-led growth to depend more on domestic con- sumption. Policymakers in China have stepped up efforts in recent months to support the economy. Those measures to boost demand include speeding-up construction projects, cutting some taxes, and reducing the level of reserves banks need to hold. Capital Economics China economist Julian Ev- ans-Pritchard said the Chinese economy remained weak at the end of 2018 "but held up better than many feared". "Still, with the headwinds from cooling global growth and the lagged impact of slower credit growth set to inten- sify... China's economy is likely to weaken further before growth stabilises in the second half of the year. - BBC Page 20 | January 24-30 2019 The Financial Gazette Column Pillars of effective leadership

EADERS commit a cardinal error of these skills. The critical aspect vestigate and consult in order to understand the circum- judgment when they become prima Communication of communication is stances of the other person(s) before you have your say. Ldonnas by believing that they have I venture to say this is that it is both verbal and Vision super powers over those they lead. Rather, the most important skill non-verbal in nature and The competent leader is one who sees around the they should see themselves as first among that glues together the both iterations are equal- corner and well beyond the mirage in the desert. This equals, given the privilege to lead others for human race. ly important. Commu- is made possible by starting with the end in mind then some defined period. This thinking is linked From family to friend- nication has no day-off roll back to structure the task to be accomplished. Vi- to the concept of servant leadership, which is ship to work situation to because a leader carries sion is a vital rallying point for followers who may be gaining traction in many quarters. It denotes local, provincial, national their status all the time. fatigued, discouraged and demotivated due to different that leadership is conferred upon someone by and international gover- The leader must “walk pressures. It also serves as the beacon to give direc- those who appreciate the benefit they have nance, communication is Executives Only Corner the talk” at all times be- tion on what is to be achieved and the timeline. Highly gained from the person’s leadership. By im- the common thread that with cause it represents the visionary leaders tend to better motivate their staff to plication, that privilege can be withdrawn if creates understanding or Shepherd Shonhiwa leader’s feelings, attitude achieve extraordinary results. the incumbent no longer deserves it. discord. and character. More so, it JF Kennedy challenged Americans with his vision Therefore, the leader is not above those History bears it out compels the leader to pay to walk on the moon and it was achieved when Arm- they lead despite that they enjoy more bene- that the most influential leaders ― both in attention to all possible cues from the follow- strong did it within the given timeframe. fits than the followers. politics and business ― were effective com- ers to understand their correct messages. Transparency An effective leader must have an arsenal municators. Some continue to be quoted in Stephen Covey said “Seek first to under- We live in times of high tech in every aspect of life of skills to enable them to carry out this criti- public discourse over a century after their stand before being understood”. This has which makes it easy to hide or misrepresent situations cal job. Three editions of this paper will carry demise. deep implications ― to invoke empathy, in- of any kind. It is vital that leaders are beyond reproach in their work on matters of public interest. Transparency does not imply breaching confidenti- ality but to explain the rationale for certain actions tak- en. This is even more important if the actions are per- ceived as negative while they are correct and necessary. A genuine show of transparency by the leader invokes trust in the followers and the trust cascades down the organisational hierarchy. Accountability This is the closest example of servant leadership, when the leader accounts to their followers on the de- cisions they took and why. This is the principle of jus- tification of the leader’s action/decision. The average leader feels it is beneath their status to explain their decision rationale but this creates an everlasting bond of trust which makes it easier to negotiate on more im- portant issues or get voluntary help from them. More importantly, when followers feel they are respected they sign an invisible psychological contract to support the leader’s endeavours. Leadership is a skilled occupation which demands skilled undertakers to ensure that all designated goals are achieved for the good of all concerned. The unskilled leader will see the only tool they have as hammer and thus everything in sight looks like a nail ― which disturbs harmony amongst all concerned. • Shonhiwa is a chartered director (SA) and has au- thored books on leadership. He writes in his person- al capacity. Absa strikes alliance for pan-African banking service BSA has announced a partnership with Société Générale to form a "pan-African wholesale Abanking offering" in what the bank described as part of advancing its growth strategy. According to Absa, the partnership will leverage both banks' geographical strengths and expertise, of- fering a range of banking products and services to in- ternational and domestic corporate clients and finan- cial institutions with operations in Africa. "The agreement we have entered into should go a long way to enable our clients to do business in Africa regardless of where they want to do business," Absa chief executive Maria Ramos. "For Absa, the acquisition supports our growth strategy in Africa," added Ramos. The combination of the French banking group's business operations in 19 African countries, mainly in Western and Northern Africa, with Absa’s presence in 12 countries, would boost client coverage beyond the banks' respective traditional markets, offering a wide range of banking products. "It is also aligned with Absa's growth strategy which aims to further develop its wholesale banking activities and extend its geographical reach into key African trading corridors," said Absa in a statement. The agreement includes a combined offering ded- icated to Chinese companies operating in Africa. So- ciete Generale has established China business desks at 11 of its local subsidiaries to service Chinese clients in Africa. As part of Absa's international and China strategy, the group will be rolling out China service desks in key African countries to complement its desk in South Africa. Last year, Absa rebranded itself after Barclays sold down the controlling stake it bought in 2005. – Fin2 – Fin24 The Financial Gazette January 24-30 2019 | Page 21 Column Aligning staff rewards to productivity NE of the key performance areas of a human resource ty property is prevented due by employees but can be instigated designed production levels. It is diffi cult to fi nd an practitioner (HRP) is reward management (RM). Em- to unnecessary accidents. It by the HRP as well. organisation that can survive when it fails to meet its Oployees other than those in voluntary work seek employ- must also within its means It should not be lost to readers planned productivity persistently. ment in order to be rewarded for their labour. cater for the wellness of its that it is the role of the HRP to not Good economic and fi nancial position At https://en.wikipedia.org/wiki/Reward_management, we staff which includes assis- only protect the interest of manage- It can be considered fair and equitable for man- fi nd the following defi nition. “Reward management is con- tance with health matters and ment but that of workers as well. agement to share profi ts with its staff whenever its cerned with the formulation and implementation of strategies many facets of welfare such The HRP should recommend only fi nancial stability can be projected positively into and policies that aim to reward people fairly, equitably and con- as transport, housing and ra- rewards that an organisation can the future. Rewards paid during such periods will sistently in accordance with their value to the organisation.” This tions. With these among many pay without constraining its fi nan- motivate staff to work smarter and harder knowing defi nition states clearly what an HRP should do to succeed in others taken care of, staff can cial position as this can threaten its that management recognises their contribution to its rewarding staff. concentrate on production. existence and result in redundancies sustenance and development. If a decision is made Formulation refers to the HRP putting together a reward The assurance of produc- of workers. to increase wages/salaries management must bear structure that caters for all employee grades ensuring that em- tion targets being met consistently assures manage- Extravagance in mind that this becomes a long term commitment. ployees in the same grade are remunerated according to the ment of annual profi ts. Profi ts have many uses, one Employees cannot be blamed for asking for an Openness terms of that grade. The structure must ideally cover the mini- of which is paying dividends to shareholders. Anoth- increase in wage/salary or a bonus payment where It helps to keep staff informed periodically of mum wage and conditions of service refl ected in the collective er is investment in production infrastructure. It is the management is seen to be extravagant in its expen- bad or good economic and fi nancial positions and bargaining agreement (CBA) of the National Employment retained profi ts that should attract the HRP. diture. Purchasing and replacing of luxury cars for any development taking place in the organisation. It Council (NEC) for each industry. It should also accommodate It is easier for the HRP to justify rewarding staff managers regularly while factory equipment is anti- becomes easier to resolve matters which arise when the conditions of service for other workers who are non-NEC with a bonus, an increase in wages/salaries, allow- quated is an example of foolishness of the highest or- they have an understanding of their organisation’s represented such as managerial staff. ances or in their wellness if he/she can demonstrate der. Management cannot justify denying employees’ circumstances. Bands or scales can be created in the same grade to differ- that the sustenance of retained profi ts were a result of request in such an environment. The writer, Kingfrey Chizema, is a former entiate the pay on condition of length of service in the position, productivity being maintained and sustained by the Poor economic and fi nancial environment president of the Zimbabwe Institute of Manage- an example being an employee with fi ve years’ service is placed hardworking and cooperating staff. The request for It can never make any sense to reward staff when ment and the Institute of People Management of on band or scale 4 while a new employee is on band or scale 1. any additional rewards need not necessarily be made an organisation is constantly failing to achieve its Zimbabwe. He writes in his personal capacity. At the formulation stage not much argument can be antic- ipated because this is normally when an organisation is being set up and therefore the number of staff may be few or none at all. A consultant could actually be undertaking the exercise in contemplation of the engagement of staff. The HRP must then implement the formulated reward struc- ture. Implementation means that employee records are in place and that the rewards accruing to each employee are refl ected therein with the payments made at designated dates. Included in implementation are statutory deductions from staff wages to the National Social Security Authority (NSSA) and NEC as an example. Some of the challenges that the HRP may encounter at this stage are the placing of staff in wrong grades or on a wrong pay scale within the same grade. The HRP can attend to these by easily correcting the employees’ records. Employees may complain or feel that their rate of pay is low in comparison to the responsibilities they undertake. This could be resolved through an internal reevaluation of jobs. For NEC represented staff the HRP can advise that the grading is the re- sponsibility of the respective NECs and therefore out of his/her hands. Employees are entitled to a fair and equitable reward for their labour. Section 12 of the Labour Act obliges the employer to provide an employee in writing with the remuneration and any bonus that the employee is entitled to receive. This is one way in which fairness and equitable staff rewards agreed upon between employer and employee can be verifi ed or confi rmed. A fair reward should be one that has taken into account the responsibilities of the job designed through an agreed and objec- tive work study. The employee must then be expected to carry out the responsibilities so described to the satisfaction of the em- ployer in order to receive his/her reward. For equitability to be seen to be so, employees carrying out the same responsibilities must be remunerated similarly and treated the same in all reward respects. For example, you cannot pay 10 employees carrying out loading operations grade 3 wag- es while remunerating fi ve others doing the same work grade 4 wages. This cannot be deemed equitable to and by the former. Note that the higher the grade number, the higher the pay scale. Equity can mean the HRP recommending a once off bonus or allowance paid in the usual staff pay packet especially so to lower levels of staff for saving on operational costs as an exam- & Certificate in labour Law, ple. In this case both the employer and his/her staff have shared the saving. The value that employees bring to an organisation is refl ect- Conciliation and Arbitration ed in their effectiveness in any task that they are required to per- form. An employee whose duty is to clean 6 houses in 8 hours but completes 5 houses only cannot be said to add any value to his/her organisation. The value of an employee lies in the pos- itive contribution that he/she makes towards an organisation’s sustainability and not his/her rhetoric. The employee is valuable when he/she demonstrates diligent performance throughout his/ her tenure with the employer. Rewards and productivity We have thus far demonstrated what reward management entails. We now turn to making a case for aligning rewards to productivity the main purpose of our article. There is usually contestation between workers and man- agement regarding employee rewards especially wage/salary increases. Employees believe or contend that at any time when they request management to increase their wage/salary it should not be a major task for it to adjust this to their requested amounts. The argument rendered by employees is that the organisation can afford to adjust wages/salaries at will because it has the ca- pacity to do so anytime. Management on the other hand explains that it cannot afford to do so because of unavailability of funds for such a purpose. It points out that if it cannot easily fi nance the purchase of raw materials to maintain production, it cannot see how a wage/ salary increase can be justifi ed. However, it is the fi nancial and economic position prevailing when the requests are made that ideally should lead to an objective decision. Productivity Achieving and sustaining productivity dictates that manage- ment sets up infrastructure, working structures and systems for employees to carry out tasks effi ciently. A cordial management and worker relationship provides a conducive, environment for production to continue without interruptions and detractions. Management must ensure safety measures are implemented so that employees remain injury free and damange to proper- Page 22 | January 24-30 2019 The Financial Gazette Column Importance of cybersecurity to business

CYBERSECURITY is the biggest single issue rele- legislation, projects and programmes, capacity build- damage that can be done if they fail to do so. lKeep cybersecurity front of mind ― regular vant to businesses of all sizes. From SMEs to multi- ing, and cooperation. No other Caribbean country Stolen data is used in all sorts of ways – for ex- training and visual reminders around the office. nationals, it is a crucial area that finance profession- received the highest classification. This shows that ample to predict purchasing and money transfer pat- lNever reveal your bank account security infor- als must balance risk and control of. there is still much work to be done across the region terns – criminals can use this information to commit mation on a website or over the phone. Information and communication technologies to improve cybersecurity. fraud. A basic rule of thumb is that if there is value in lRequire two people to set up or authorise any (ICT) networks, devices and services are increas- Data breaches are huge issues for senior execu- the data to a criminal then there is value in protecting high-value payments. ingly critical for day-to-day life. All are exposed to tives who must guard their organisations from such it. Sadly because data is digital, it can be replicated lEnsure your systems are up to date. At a mini- a variety of cyber threats (security threats) that can threats. Breaches in cybersecurity can result in a loss over and over again, potentially before the business mum: do not use Windows XP; Internet Explorer v8 cause immense damage. Globally there is a gap be- of customer information, trade secrets or other confi- is even aware. or run your systems on Microsoft Server 2003. tween countries in terms of awareness, understand- dential assets, which can ultimately affect corporate But there’s still a way to go for countries across lIdeally do not use a free email account such as ing, knowledge and the capacity to deploy the proper reputation, financial performance and competitive the region to improve their standards. Gmail, Hotmail or Yahoo mail, or share documents strategies, capabilities and programmes to ensure a advantage. These are only a snapshot of the prob- For many businesses there are obvious risks re- with Dropbox (unless the document is encrypted safe and appropriate use of ICTs. According to the lems businesses can face as a result. garding ineffective cybersecurity such as disruption first). Global Cybersecurity Index 2017 published by the Because of the nature of cybersecurity, authori- of supplies, sales and loss of cash, but two other areas lDo not access confidential information on an International Telecommunication Union, Jamaica's ties and governments are best placed in using their stand out: insecure (un-password protected) Wi-Fi network. cybercrime efforts have improved significantly. resources to raise awareness among businesses, and lPotential legal action from individuals and Nearly every business relies on the confidential- Jamaica is classified as maturing, meaning that the to put resources in to creating mechanisms to catch companies for loss of their data by a business ity, integrity and availability of its data. Protecting country has developed complex commitments and perpetrators. lReputational damage, which can spell the end information, whether it is held electronically or by engages in cybersecurity programmes and initia- Finance professionals can assist by taking steps of a business. other means, should be at the heart of the organisa- tives. to protect their organisations through being aware of Businesses must make sure their staff are aware tion’s security planning. As cybersecurity strategy The survey, conducted in 2016 through an online legislation and limiting breaches. Businesses have to of the risks and how to protect against them. Some and business operations further align, finance profes- platform, measured the commitment of all 193 ITU take the lead as they need to be aware of the value of simple steps that businesses can take to help protect sionals can protect their organisations better for the member states to improving cybersecurity through the data they hold, the value in protecting it, and the their businesses include: future. – ACCA Imperial runs below 10pc capacity

Ndakaziva Majaka Markets Editor

MPERIAL and Commercial Refrig- Ieration (Imperial) says it is operating be- low 10 percent capacity as most of the compa- ny's major clients are reeling from foreign exchange shortages, which have negatively affected output. Calisto Jokonya, Im- Calisto Jokonya perial’s chief executive, told The Financial Gazette that the refrigerator manufactur- er had seen a steady decline in revenue and output as major customers battle dwindling capacity utilisation on the back of low foreign exchange allocations. “The forex is not there so this affects us as a company because major clients like Delta Corporation, Tanganda Tea Company etc are not placing their usual orders because they don’t have forex. What does this mean for us? It means they scale down and we suffer,” Jokonya said on the sidelines of a Confederation of Zimbabwe Industries meeting in the cap- ital. At its peak in 2015, Imperial manufactured 80 units per day at 40 percent capacity, with plans to increase output. Jokonya pointed out that Imperial was not exporting much but depended on major beverages companies and their distributors for a steady market. “We have moved into large scale manufacturing for cor- porates mostly so this means that if Delta downscales be- cause one of its units is closed, it has a direct effect on our production and revenue. “For this year, things are also not looking very positive but we remain optimistic that we will be able to get through it,” the Imperial boss said. This comes as the refrigerator manufacturer sealed a $3 million deal to produce 3 600 units for Delta Corporation. The order was in addition to the 2 100 units already supplied to the beverages manufacturer. Imperial enjoys relationships with other beverages mak- ers like Schweppes and African Distillers Limited. In the past, Imperial also managed to strike a strategic alliance with Frigoglass, a South African company, for the manufacture and supply of refrigerators, a move that was anticipated to mitigate the shortages of raw materials locally. With the help of the South African firm, Imperial wanted to double output to 20 000 units per year, but this may not be achieved because of Zimbabwe’s biting foreign currency shortages. Businesses are unable to access raw materials because the Reserve Bank of Zimbabwe (RBZ) has not been allocating enough foreign currency for key imports. To illustrate this, the Mediterranean Shipping Company (MSC) said it might not release containers to Zimbabwean importers who have not made payments. Delta ― Imperial’s largest client ― recently announced a 25 percent hike in the prices of some of its products to cush- ion against foreign exchange shortages. However, seen as a move that could prompt other companies to do the same, and potentially derail government’s workaround for the currency crisis, the RBZ pledged to give Delta the foreign currency it required. [email protected] The Financial Gazette January 24-30 2018 | Page 23 National News Economy to grow Zim narrowly misses despite headwinds 2018 gold output target

Adelaide Moyo Omega Ukama FCA as well as the two percent intermediated money Business Reporter Business Reporter transfer tax,” he said. Researchers at local advisory firm, Equity Axis, IMBABWE’S economy is expected to grow IMBABWE missed its revised gold output say the plunge in gold deliveries at the same time as by 4,2 percent this year, picking up to 4,4 target for 2018 by two percent after closing the rise in inflation “can be related given the lack of a Zpercent in 2020, the African Development the year with deliveries of 33,28 tonnes from floating exchange rate in Zimbabwe”. Bank (AfDB) has said. Z the projected 34 tonnes . “Gold miners have stated that they have been The AfDB’s projections are ahead those of the Government had revised the target from 30 unable to fully recover their export earnings in real World Bank which, expects a 3,7 percent growth, tonnes to 34 tonnes after deliveries surged from two US dollars, with some claiming that they received as and those of Zimbabwean authorities, who tonnes in February to 3,9 tonnes in August. low as 15 percent in export retentions. estimate three percent growth. Deliveries of the yellow metal however slumped “In order to hedge themselves, small scale miners “Despite the headwinds, the economy is from 3,5 tonnes in September to 1,4 tonnes in projected to grow by 4,2 percent in 2019 and 4,4 have resorted to side marketing,” the research firm November as official inflation quickened from 4,8 percent in 2020. The high and unsustainable debt- investment to realise medium term growth targets. said in a comment published recently. to-GDP ratio, the high fiscal deficit, cash shortages, “In particular, measures are needed to increase percent in August to 31 percent in November. Primary miners have also struggled during the three-tier pricing, and limited availability of transparency in the mining sector, strengthen Recent records from Fidelity Printers and year owing to the currency crisis. In October, RioZim foreign exchange, which continue to constrict property rights, reduce expropriation concerns, Refiners (FPR) show that the subdued numbers temporarily shut down its gold mines, Cam & Motor, economic activity, and the persistent shortage control corruption and liberalise the foreign carried through to December with 1,6 tonnes of Renco and Dalny, due to inability to procure inputs of essential goods, including fuel and consumer exchange market,” said AfDB. bullion collected during the month as inflation spiked and consumables. goods, remain the major headwinds for any The bank said the regeneration of civil society to 42 percent. Another gold miner, Falcon Gold Zimbabwe says meaningful economic recovery,” AfDB said in its and a renewed engagement with political actors in Following the disturbing trend, government some of its key creditors have cut off critical supplies latest African Economic Outlook report. a positive social contract will accelerate political has heightened supervision of gold activities in the as a result of the miner’s inability to access foreign Presently surging inflation, at 42,09 percent in reform in the country. country. currency. December poses the greatest risk to growth, while “Given the vast natural resources, relatively In emailed responses to The Financial Gazette, “The inability of gold producers to access foreign the move to remove US dollars in favour of a local good stock of public infrastructure and Fradreck Kunaka, FPR’s general manager, had currency has resulted in failure of the company to pay comparatively skilled labour force, Zimbabwe has currency within 12 months is also likely to shake expressed optimism that the enhanced monitoring outstanding amounts to foreign creditors since May, an opportunity to join existing supply chains in the economy as it negotiates its way, analysts have would push the country through to its gold production 2018,” the company said in a statement recently. warned. Africa through the Continental Free Trade Area,” AfDB said. target of 34 tonnes. Meanwhile, data from the Zimbabwe National The multilateral lender said it estimates that the “Chances are quite high of achieving the 34 Statistics Agency shows that the country’s gold economy grew 3,5 percent in 2018 although cash The bank said growth will originate from the key sectors of mining and agriculture backed by tonnes given the enhanced monitoring of gold exports in November, which amounted to $47 shortages and the three-tier pricing system coupled activities by government agents working with FPR. million, down from $110 million in November 2017, with foreign exchange shortages continued to public and private investment. “The activities are directly targeted at high gold were the lowest over the past 23 months. constrain the goods and factor markets. Policy-related macroeconomic instability, production activities such as elation plants, so as to The fiscal deficit was an estimated 10,7 percent lack of funding, land tenure, and investment The decline in production during the final quarter of GDP in 2018, compared with 12,5 percent of regulations, high input costs and outdated ensure the target is reached by year end,” he said. of 2018 plunged the southern African nation into a GDP in 2017, financed mainly through domestic machinery, inefficient government bureaucracy, Kunaka attributes the slump in deliveries to serious shortage of foreign currency, with the country borrowing, AfDB said. and inadequate infrastructure, particularly government’s recent policy changes. closing the year with shortages of basic necessities AfDB said the southern African nation has energy, remain key challenges for private sector “It is basically the reaction of the gold industry to such as fuel and medicines. opportunities requiring minimal additional development, AfDB [email protected] government policies of the FCA nostro and RTGS [email protected] Page 24 | January 24-30 2019 The Financial Gazette National News SA’s Edcon ups shareholding in Edgars

Ndakaziva Majaka to acquire the intellectual property Edgars Stores Lim- under a franchise agreement with Ed- According to Sibanda, the company has an out- Markets Editor rights to trademarks and brands as- ited ... is hereby au- con. standing franchise fees payable to Edcon amount- signed to Edgars by Edcon for the “thorised to acquire Thembinkosi Sibanda, Edgars’ ing to approximately $2,1 million. OUTH Africa (SA)'s Edcon Group will ac- territory of Zimbabwe from Edcon the intellectual property chairperson, last year said the trans- 89-year-old Edcon has about 21 000 employees quire an additional 15 million shares in Ed- for a consideration of $1,5 million rights to trademarks action was an opportunity to lower in a country where more than one in four people Sgars Zimbabwe, as it seeks to assert its con- to be settled through the issue of 15 and brands assigned to the company’s operating costs, which do not have jobs. trol of the Jet and Edgars brands locally, a stock million Edgars shares. Edgars by Edcon for the arose from negotiations and the ac- Edcon ― with more than 1 100 stores across exchange notice said this week. “All resolutions passed by territory of Zimbabwe quistion process of Edgars and Jet southern Africa ― has struggled amid weak con- The apparel group yesterday said the transac- shareholders are subject to ex- from Edcon for a consid- locally. sumer spending and slower economic growth in tion was worth $1,5 million. change control approval from the eration of $1,5 million to “The company currently operates South Africa. This will see Edcon ― which last week reached Reserve Bank of Zimbabwe and be settled through the is- these brands under a franchise agree- It was taken over by banks and bondholders in a non-binding agreement with unidentified inves- approval of the listing of the new sue of 15 million Edgars ment, paying an annual franchise fee 2016 to avoid failing. tors to recapitalise and avoid selling some of its ordinary shares on the Zimbabwe shares” calculated in the first year using a for- Edcon’s net third-party debt climbed 67 per- businesses ― increase its shareholding in listed Stock Exchange,” Edgars said in a mula based on a percentage of revenue cent to $445 million at the end of June 2018, from clothing retailer Edgars to 41,07 percent from the corporate announcement. and from the second year based on an independent about $300 million as the South African rand present 38,07 percent, held through its 100 percent Edgars operates the Jet and Edgars brands and assessment and review of Edgars’ business by a weakened against the euro and interest charges owned Bellfield Limited. has rights to a number of other Edcon trademarks firm of auditors (again agreed to be a percentage increased after converting some of its debt, it says “Edgars Stores Limited ... is hereby authorised brands that are currently dormant in Zimbabwe of revenue),” said Sibanda. on its website. [email protected] Russians get tough SA investors expectations on Chemplex stake unrealistic, Ndakaziva Majaka Markets Editor says study

RALCHEM says it will not settle for a minority GLOBAL study stake in Chemplex, amid indications the Russian found that South Ufertiliser manufacturing giant is pressing on with African investors plans to acquire the Industrial Development Corporation A expect their portfolios to (IDC)-owned fertiliser firm. return nearly 13 percent Dmitry Mazepin, Uralchem’s owner, last week said he annually over the next would only take a deal that allowed him at least 50 percent five years – almost 3 per- of Chemplex. cent higher than the glob- “Well, of course I don’t think we’ll agree to less than al average and 8,4 percent 50/50…we will not be simple minority shareholders there,” higher than their actual Mazepin is quoted by Reuters saying in Moscow, where returns over the past five President Emmerson Mnangagwa met President Vladimir years. Putin and Russian businesses. South Africa shows the This comes as IDC last year moved to dilute its 100 third highest difference percent stake in the country’s biggest fertiliser company between expected returns through a disposal to an equity partner. and actual returns (8,4 IDC, which mandated Ernst & Young Advisory Services percent), trailing only to facilitate the recapitalisation of Chemplex in order to ca- Russia (13 percent) and pacitate the fertiliser value chain, is also looking at disposal the UAE (8,5 percent), of Chemplex’s non-fertiliser subsidiaries. according to the Schrod- And while Mazepin has ers Global Investor Study already expressed interest, 2018. his contention is he does not The global asset man- NEW BROOM: Prosecutor-General Kumbirai Hodzi takes the oath of office after he was sworn in as the sub- want to come on board as a agement firm surveyed stantive head of the National Prosecuting Authority at State House in Harare yesterday. Hodzi was deputy attor- minority shareholder. Over over 22 000 wealth inves- ney-general in charge of the Legal Advice Section since 2012. He had been acting PG since July last year when the past year, Mazepin ― tors across 30 countries. Advocate Ray Goba resigned. Picture by Freedom Mashava with an estimated net worth For the purposes of the of $3,2 billion according to survey, returns included Forbes ― has made two growth in money as well trips to Zimbabwe to nego- as any income paid out tiate an investment in the Tanking economy jolts Zim out in the form of dividends fertiliser maker. The billion- and interest from a vari- aire plans to create a hub in ety of investments includ- Zimbabwe and Zambia that of post-Mugabe revival dream ing cash, bonds, property will supply fertiliser into the funds and equities. Dmitry Mazepin region. OPES of an economic revival currency and switch to the US dollar. Shops regularly run out of goods According to the study, Chemplex comprises of four in Zimbabwe lie in tatters 14 A turnaround looked conceivable after such as bread and coffee, and motorists the average South African subsidiaries ― Zimbabwe Phosphates Industries Limited Hmonths after President Em- Mnangagwa, 76, took power in No- line up for hours or even days outside investor holds 31 percent (ZimPhos) owned 100 percent, G&W Industrial Minerals merson Mnangagwa took office, as vember 2017 and won a disputed elec- filling stations to buy fuel. in equities, 17 percent in (G&W) owned 100 percent, ZFC Limited (ZFC) owned 50 the nation reels from foreign exchange tion in July last year, but his pledges to The government also ordered mo- bonds, 21 percent in cash, percent and Allied Insurance Company (Private) Limited and fuel shortages, strikes and a dearth create jobs and draw billions of dollars bile phone companies such as Econet 15 percent in property (Allied) owned 64 percent ― plus two operating divisions of political leadership. in foreign investment remain unmet, Wireless Zimbabwe Ltd to suspend all funds and 15 percent in which are Chemplex Marketing and Chemplex Animal & Disgruntlement with falling living with businesses and consumers crip- Internet services in an effort to quell alternative investments. Public Health (CAPH). standards spilled onto the streets of pled by the lack of foreign exchange. rioting that broke out in several cities Claire Walsh, personal ZimPhos in turn has two wholly owned subsidiaries: GD Harare, the capital, and other towns Mnangagwa’s decision to proceed and towns last Monday. The ban has finance director at Schro- Haulage (Private) Limited (GD) and Dorowa Minerals Lim- on Monday last week with thousands with a planned trip to Russia, Kazakh- now been lifted after the courts inter- ders, says that globally, ited (DML). of people heeding a call by the coun- stan, Belarus, Azerbaijan and a World vened. investors' expectations Chemplex also has one associate company, Sable Chem- try’s largest labour group to strike Economic Forum meeting in Davos, The main opposition Movement for follow a particularly ical Industries (Private) Limited (Sable) owned 36 percent. against massive fuel price increases. Switzerland, in the midst of the crisis Democratic Change says Mnangag- strong spell for global ZimPhos is the only producer of phosphatic fertiliser raw Eight people were reportedly killed in to drum up investment and loans has wa’s administration has mismanaged equities in particular, and materials in Zimbabwe and the company also produces alu- clashes between the police and demon- drawn the ire of his struggling country- the currency, failed to bring corruption, echo returns achieved by minium sulphate for municipal drinking water purification, strators and 200 others were detained, men who consider the former spy chief inflation and the budget deficit under global stock markets in sulphuric acid and other industrial chemicals. according to Amnesty International, a insensitive to their plight. control and unfairly raised taxes target- the past five years. Chemplex Marketing trades in a wide range of locally London-based human rights group. “About 90 percent of us are self-em- ing the poor. Security Minister Owen The historic perfor- produced and imported chemicals for the mining, water “You can’t blame people for being ployed or unemployed,” said Jessica Ncube in turn blamed the MDC for mance of markets does treatment and industrial sectors and CAPH manufactures angry when there’s no money and the Moyo, who works as a seamstress in organising the three-day strike against not offer a guide to future cattle dips and other formulated veterinary products, grain struggle is so real,” Nyarai Kumira, Harare. “Even if you have a job, you’re the fuel-price increases and the chaos returns, she adds. protectants and other public health products. 32, an unemployed Harare resident, probably earning about $300 a month that ensued. Although it says returns DML mines phosphate rock and magnetite as the phos- said Tuesday. “People are suffering. and transport already costs you about Tendai Tobaiwa, 48, who sells vege- are notoriously difficult phate rock concentrate produced is transported to ZimPhos They’ve got only one avenue and 20 to 30 percent of your income. Now tables and fruit from a wheelbarrow in to predict, Schroders' by GD and by rail for processing into fertiliser while the that’s anger because so many can’t af- it’s going to be three times as much, the city centre, said while the situation Multi-Asset investment magnetite is sold for coal washing locally and in the region. ford to eat properly.” so who suffers? The poor, because the had become untenable for ordinary team forecasts a 5,6 per- ZFC manufactures NPK compound fertilisers using Under Mnangagwa’s predecessor ruling elite aren’t feeling hardship.” people, the ruling elite seemed to carry cent return for global eq- phosphates from ZimPhos and other materials. Robert Mugabe, the seizure of white- While the official inflation rate on as usual. uites - generally the asset Sable manufactures and imports ammonia for conversion owned farmland by ruling party mili- stands at 31 percent, economists say “Some drive Porsches, can you be- class that drives long- to ammonium nitrate fertiliser. tants slashed agriculture production, that figure is probably understated, and lieve it?” he said. “The ruling party term returns in a multi-as- Allied is a short term insurance company and G&W triggered hyperinflation and a decade there are big price discrepancies de- doesn’t even think of our suffering, set portfolio ― over the mines and processes agricultural lime and other industrial of economic stagnation, and forced pending on whether goods are paid for only their bank balances, their cars, next 10 years. minerals. [email protected] the country to abolish the use of its electronically or with banknotes. their big homes.” - Bloomberg - Fin24 The Financial Gazette January 24-30 2019 | Page 25 National News Vast seeks funding for diamond operation

Adelaide Moyo to allow us to raise debt facilities for diamond the group to sell the majority of assets. Business Reporter production.” “We don’t want to be caught in that position Prelea noted that the miner is still waiting for again … so to avoid giving away equity this is AST Resources says it is holding discus- an official announcement from government after a request to shareholders to allow us to get debt sions with funders to provide for security it had initially agreed principal terms of a joint funding and to utilise collateral security by way Vahead of kick-starting diamond produc- venture with Red Mercury for the Heritage con- of shares,” Prelea said. tion in Zimbabwe. cession at Marange Diamond Fields. Under the principal terms with Red Mercury, This comes as the resources firm last year in- “As far as the diamonds are concerned, we Vast will take effective control of exploration and dicated an intention to expand its footprint in the are waiting for the official announcement and to mining of the concession as well as marketing of country after it secured a foothold in Marange. make sure that we are prepared in the likelihood the diamonds in consultation with Red Mercury. Andrew Prelea (pictured), the Aim-listed of an official announcement from the Zimbabwe Red Mercury will be responsible for provid- miner's chief executive, said the company was government shortly. We want to be prepared that ing a full mining licence and Vast will be respon- in the past forced to sell some assets to finance all the financing is in place because once you sible for procuring funding to develop an operat- production at one of its gold mines in Chegutu. have the approval they expect you to move fast,” ing diamond mine on the Heritage Concession. “This is a pre-emptive strike after discussing he said. During the three months ended September with several debt funders to allow us to provide The firm ― which also recently acquired a 30, 2018, Pickstone recorded a three percent in- security for a facility for the production of the 23,75 percent interest in Guruve-based Eureka crease in tonnes of ore mined to 104,156 tonnes diamonds in Zimbabwe,” he said. gold mine ― said in the past it has spent lots of while ore milled was four percent higher to “This is not a request for headroom to dilute money as Pickstone Peerless, a gold mine near 102,416 tonnes. shareholders ... this is a request to shareholders Chegutu, cost the company $30 million, forcing [email protected] RwandAir, Proflight pull the plug on Zim Ndakaziva Majaka lines like Emirates and British Airways (BA) dump and Tabitha Mutenga the local bond note and Real Time Gross Settlement Staff Reporters (RTGS). The Reserve Bank of Zimbabwe (RBZ) has been WANDAIR Airways (RwandAir) has joined failing to honour international payments to airlines. other airlines in suspending ticketing author- At the end of October 2018, the country owed over Rity for Zimbabwean travel agents, amid indi- $150 million to foreign airlines with Treasury com- cations the Rwandese flag carrier is now only accept- mitting to settle the debt at $4 million per month. ing payment via international credit cards or United Despite this, Emirates ditched local currency Stated dollars (USD) . payments, with the carrier announcing it would only This also comes as Proflight Zambia (Proflight) start accepting payments via international credit for all agents in Zimbabwe would be limited to cred- uation in Zimbabwe and ongoing challenges with the yesterday suspended services between Lusaka and cards or USD. it card payments only. British Airways said it was repatriation of funds from Zimbabwe, we are tempo- Harare due to challenges associated with funds re- BA then joined Emirates towards the end of 2018 “working tirelessly to find a solution”. rarily suspending our Lusaka/Harare route effective patriation. and suspended local ticketing amid a growing finan- Air Zimbabwe, however, continues to accept January 29 until March 1. Ada Mugenyi, RwandAir’s country manager, on cial crisis, also citing the government’s failure to re- payments in bond notes ― an increasingly untenable All passengers will be refunded in full for tickets Wednesday said refunds for tickets purchased using patriate millions of dollars. situation with the surrogate currency’s drastic loss of purchased for travel during this period,” said Prof- the local mediums would be made. “In light of the ongoing difficulties experienced value despite government having resolved that Zim- light’s director of government and industry affairs “All ticket sales will be issued in United States in foreign currency repatriation, Comair regrets to babweans living in the diaspora should pay for the Philip Lemba. dollars (USD). All ticket sales and reimbursements inform our trade partners that British Airways oper- national flag carrier’services in hard currencies. The airline launched the route last year to boost will be done through RwandAir Harare Sales office ated by Comair is temporarily limiting distribution Meanwhile, Proflight said its flights are expected trade, passenger movements and connectivity be- …” Mugenyi said. of ticketing authority in the Zimbabwe market,” a to resume on March 1, 2019 when its concerns are tween Harare and Lusaka. Proflight was the only Zimbabwe ― which is presently battling a cash statement from the airline said. addressed. airline servicing the route with early morning flights and foreign exchange scarcity ― has seen other air- The statement added that the ticketing authority “We regret to announce that due to the current sit- four times a week. [email protected] Page 26 | January 24-30 2019 The Financial Gazette The Financial Gazette January 24-30 2019 | Page 27 Page 28 | January 24-30 2019 The Financial Gazette The Financial Gazette January 24-30 2019 | Page 29 Page 30 | January 24-30 2019 The Financial Gazette National News Business wants transparency …as Mthuli shops for $500m credit

Ndakaziva Majaka out from the multilateral lender. in foreign currency allocation Markets Editor Gerry Rice, IMF’s spokesperson, pointed out the country’s debt levels INANCE minister Mthuli Ncube were too high. This came after Ncube’s Ndakaziva Majaka already tough and a fulltime job,” says he is courting three private unenviable task took him to Pretoria on Markets Editor Moyo said on microblogging site, sector credit providers for lines of Christmas Eve to ask for a bail-out pack- Twitter. F credit of up to $500 million to provide age from South Africa, a request that was IMBABWE’S monetary au- Finance minister Mthuli Ncube a windfall for foreign currency-starved swiftly turned away. thorities need to ensure for- recently established a committee Zimbabwe. The treasury chief — who has aroused Zeign currency allocations by to oversee the allocation of foreign The embattled treasury chief — who widespread criticism in the last week the recently-appointed Forex Allo- currency earlier this month, amid a defended Zimbabwe’s recent 250 percent over his plans to “pre-maturely” intro- cation Committee (FAC) are trans- shortage in the southern African na- fuel price hike — also said the country duce a local currency — said the country parent to enable fair disbursements tion. was forging ahead with its controversial was going ahead with plans to introduce to struggling local firms and allow The nine-member committee in- plan to implement a full currency reform a local currency to ease liquidity chal- closed ones to resume operations, a cludes officials from the President’s in the next year, a plan anticipated to cul- lenges. business organisation has said. office, the finance, energy and com- minate in re-introduction of a local cur- “Inflation in Zimbabwe is presently Zimbabwe — which is presently merce ministries and the central rency. being driven by parallel market in terms battling cash and foreign currency bank. “We are hoping to approach three of pricing. On the fiscal front, we endeav- scarcities — has seen various man- Creation of the committee is part private sector credit providers who are our to continue on a path of fiscal disci- ufacturers temporarily close shop of a broader plan to set up a revised very keen to work with us especially in pline… But we anticipate stability in the as they fail to honour obligations to framework for foreign-exchange al- providing fuel and in giving us a couple near future as we are moving step by step international suppliers. location, according to Ncube. of credit lines up to the tune of $500 mil- towards full currency review,” he said. The Confederation of Zimba- Mthuli Ncube But business is still sceptical of lion… Estimates by former Finance chief, bwe Industries (CZI) last week the committee’s ability to fulfil the “What President Emmerson Mnan- Tendai Biti, indicate impoverished Zim- pointed out that foreign exchange CZI’s chief economist, said. objectives. gagwa is doing with Zimbabwe is noth- babwe needs reserves of at least $5 bil- allocations in the past, superintend- An economic crisis in Zimbabwe “At the end of the day, they allo- ing new and this is a fact. We have plans lion before walking this route. ed by the Reserve Bank of Zimba- has spawned a shortage of cash, cate at their discretion and our big- in place to ensure fiscal discipline and While the South African rand has been bwe (RBZ) before January 2019, idling gold mines and leading to gest concern as business is the issue we are moving towards full currency re- widely accepted as a quick win, Pretoria had been shrouded in secrecy, with scarcities of fuel and food. of transparency. Everyone needs form,” the former African Development has expressly dismissed the possibility of business accusing the apex bank of Busisa Moyo, CZI’s former pres- forex and all we ask for is transpar- Bank vice president told Bloomberg TV this happening, with South Africa’s Fi- corruption and favouritism in the al- ident, recently proposed that the ency. Some forex earners could not at the World Economic Forum meetings nance minister Tito Mboweni saying they location process. FAC produces a weekly or quarterly even access currency and this should in Davos earlier this week. could not risk having their currency as an “While there was a priority list, public report on forex allocation by not happen,” said Sifelani Jaban- Mnangagwa’s government is scur- anchor exchange for Zimbabwe. we had no way of knowing how the the central bank to enhance transpar- gwe, CZI’s president. rying all over the globe with a begging Zimbabwe has struggled to pay for forex was being disbursed and as ency. With government under pressure bowl to try and secure a bail-out pack- imports over the past two months due to a result some deserving members “I think the allocations should to provide foreign currency for the age and extinguish civil unrest that has a severe foreign currency shortage. failed to access forex… It is our just be made public and transparent, procurement of drugs, fuel, wheat erupted in the country, driven by unstable Businesses and consumers alike are sincere hope that now that there is each week on Wednesday after allo- and critical raw materials for the in- economic fundamentals. impacted by the currency crisis. a body dedicated to the allocation of cations on Tuesday. (It should be) dustry, the situation has seen some Earlier this week at Davos, the Inter- “We have looked at full currency re- foreign exchange, we will be able to reported publicly, quarterly and we companies pricing their products in national Monetary Fund (IMF) poured form very carefully and are confident it trace and account for the disburse- should be good. We are not looking United States dollars. cold water on any hopes Zimbabwe had will bring relief,” Ncube said. ment process,” Tafadzwa Bandama, for extra work. Running factories is [email protected] of accessing a desperately-needed bail- [email protected]

For the week ending 23 January 2019 Life & ArtsNews Worth Knowing

January 24-30 2019 Page 31 Freshly Ground Coffee Shop at Halsteds a breath of fresh air ONFINED to barracks during humps. Beyond lie the odiferous munici- tered the coffee shop and sat down on a the recent three-day stay away, pal dump site, scenic Wingate Golf Club, comfortable two-seater sofa upholstered Cmeal preparation depended upon home of the spotted eagle owl, and busy in chocolate brown and orange. The de- the contents of an ill-stocked freezer and Emerald Seedlings, with its eclectic vari- cor is imaginative and attractive: open whatever the pantry shelves might yield. ety of plants and trees. Exploring Alpes umbrellas hang at different levels from Recent vegan house guests had left be- Road could wait, and we turned left off the ceiling, and bright African prints dec- hind some packets of quorn (meat free Alpes Road into Halsteds' spacious car orate brick walls. Modern stainless steel mince grown from mushrooms in fer- light fittings hang from the ceiling, and a mentation tanks), but in-house supplies spotless light-coloured tile floor leads out of dried kapenta, rice, pasta and some A Matter of Taste into the garden centre with its flourishing tinned goods kept us going, without at- with plants and garden accessories. tempting to make quorn cottage pie or Menu choices for drinks are on a quorn burgers. Charlotte Malakoff board on the wall behind the count- Later in the week, supermarkets er, and food options are on display on faced with hordes of hungry shoppers glass-fronted shelves. This was my first Breakfast at Freshly Ground Coffee Shop were obliged to close main entrances and park. Arriving at Freshly Ground Coffee visit to any branch of Freshly Ground, let people in through side doors, two by Shop was like a breath of fresh air. and although I found a wide selection send it back for nuking. This works perfectly well, as the area two, like Noah’s Ark. Half an hour after There are four branches of Fresh- of nice looking cakes and eye-catching From a selection of muffins, sand- is small, and the counter visible from opening, the Amanzi Farmers Market on ly Ground in Harare — one in Msasa, trays of millionaire’s shortbread, there wiches, wraps and crepes, I chose a ba- every table. There was a steady flow of Friday had sold out of bread and fresh, one in Sam Levy’s Village, and another was nothing resembling a full English con and chives muffin ($8,05). Although customers, although Praise said numbers organic vegetables. It was time to ven- at Village Walk. On one side of Fresh- breakfast or a cheese omelette with two it was large, well-risen and looked at- had dropped recently. ture forth in search of sustenance, so we ly Ground at Halsted's is a garden shop, slices of toast. Receptionist Praise says, tractive, a possible excess of rising agent Freshly Ground at Halsteds is a great set off for Freshly Ground, a coffee shop and on the other are wide, spacious aisles however, that she has received countless affected the flavour, and I lost my appe- place to stop off at if you're doing some located within the new state-of-the-art stocked with hardware, tools, plumbing, requests from patrons for a classic break- tite half way through. George, however, DIY home repairs, or need to buy gum branch of Halsteds in Borrowdale. sanitary ware and top quality interior and fast menu. enjoyed the beef fillet and green pepper boots and protective clothing for your Travelling north along Alpes Road, exterior house paints. A builder or DIY There are three sizes of coffee latte panini ($8,05), his only complaint being work force. we crossed over Harare Drive. Should expert will find everything his heart de- — short, tall and grande. The short latte that the strips of beef fillet were hard to If you live in the area, or need a break you continue onwards towards Pomona sires, from the smallest screw, to a new ($4,35) was delicious — hot and aromat- find. from queueing for fuel at the service sta- Barracks, you will navigate potholes, a bath or a wooden door from the timber ic. It was the same height as George’s There is no waiter service at Fresh- tion opposite, swing by for a coffee and burgeoning fuel queue, a narrow bridge yard. tall hot chocolate ($8,30). He found the ly Ground; you make your order at the a slice of cake. and potentially life-changing speed Breakfast being the priority, we en- hot chocolate luke-warm, but declined to counter, and collect it when it's ready. Comments to: [email protected] A new epidemic hits the United States! CCORDING to the United States deaths are said to have doubled. The most controversial issue is wheth- A new epidemic is on the horizon. NuLife is a detoxification center in (US) Secretary for Human Ser- Purdue Pharmaceutical, the maker of er pharmaceutical companies continue to Former US House Speaker John Boeh- Calabassis, California, situated on a lux- Avices, Tom Price, the epidemic OxyContin accepted a $600 million fine make money from the vulnerable by of- ner, gave the impression of a devout fam- ury 14 acre estate. It says in its website which has devastated the US falls under in order to keep its deceptive marketing ily oriented Catholic. When his boyish that it provides a luxury setting for its a group of doctor prescribed pain killers practices under the rug. The company, ambition to see the Pope was realised, wealthy patients and comforts them with called opioids. which started selling Oxycotin in 1995 and he hosted Pope Francis as the Pope these words. “The truth is addiction is not This tragedy is deeply rooted in US is now pretending to be charitable by addressed the two Houses of Congress, a moral failing. It is a disease.” culture. Americans complain about ev- donating $3,5 million seed money to an he retired. Common wisdom erything. Children riding bicycles along affiliate company which makes a less ad- Now here is another typical American Common wisdom has been thrown the streets is now a thing of the past. dictive pain killer. story. Cannabis (mbanje) companies of- out of the equation. By excluding reli- “Regulations” require that they wear hel- Aside: So this wicked company is go- fered him a job he could not refuse, Chief gion, the providers take a longer route to mets and knee caps to avoid scratching ing to solve medical additions by offering Spokesperson. healing. They ignore the twin problems their bodies. Adults dining on spicy His- naxolone, another medicine. The cost is As I speak, eleven states, the largest of addiction, the relationship between panic foods pass heart burn pills as they $140 per pill. Laugh out loudly. being California (40 million) and New loss of spiritual strength while the flesh is consume the food. A customer falling in An addict can go to a detox center, York (28 million) are on the verge of under attack by severe pain. a shopping centre can sue for damages. euphemistically called Recovery Center. liberalising marijuana laws. It started as The common observation by doctors LETTER FROM AMERICA The opioid epidemic comes when pa- Because patients can no longer sustain “medicinal canabinoids” (a fancy name) over the years that kids who smoke usu- by Ken Mufuka tients have run out of doctor prescribed daily labor routines, they are housed in prescribed by doctors for the relief of ally are indifferent to doing their school medicines and resort to street vendors for group houses (sometimes called flop pain. homework, obeying legal authority while substitutes, such as marijuana, now called house) which are gender neutral. Professor Valuck is correct. The jour- they are in a state of nirvana and canna- cannabiods, in order to disguise their or- Aside: Please use your imagination. fering new drugs to treat drug addiction. ney started thirty years ago in the schools. binoid hyperemesis syndrome has been igin. The culture I have described above Two bedroom houses in the mill village Further, flop houses lack the very My nieces, who have been brainwashed ignored. Patients brought into emergen- is a fertile ground for abuse of medicines. round our church usually rented for $500 essence of drug addiction recovery, the in these modern schools say: “Uncle, cy rooms by police do not volunteer the Statistics per month. Government offers $500 per recovery of spiritual strength, which can everybody knows that marijuana is less information that severe nausea, violent The most recent study, done in 2015, bed per month. If the landlord can pro- only come from religion. A “floppie” is a harmful than alcohol.” vomiting and abdominal pain may have shows that in that year alone, 33 000 vide four beds, his income quadruples, person completely out of his depth, who I am surprised that “everybody” started after some cannabinoid activity or deaths were opioid related. but such a neighborhood blessed by flop has given up the fight for his personal dig- knows this to be a fact while this knowl- lack of it on their part. Three years later, the opioid related houses loses its sense of community. nity and sovereignty. edge has been kept away from me. [email protected] ZIMBABWEAN born British boxer Dereck Chiso- ra will not be retiring from boxing, according to his trainer Don Charles. Chisora (35) was knocked out News Worth Knowing in his last fight last month against Dillian Whyte, and given the brutal nature of the loss, some people have Sport suggested he should retire this month. — SkySports Page 32 January 24-30 2019 SPORT SHORTS Osaka’s sponsor apologises

ONE of Naomi Osaka’s sponsors has been forced to apologise after depict- ing the Japanese tennis star, who is half-Haitian, with pale skin in an adver- tisement. Nissin featured Osaka in an ad for its Cup Noodle range of instant ramen. It depicts Osaka, who holds dual Japanese and American citizenship, with pale skin, wavy brown hair and Caucasian facial features. The company said it had not intended to “whitewash” the athlete, who became a national hero in Japan after beating Serena Williams to win the wom- en’s singles title at the US Open in September last year. “There is no intention of whitewashing,” a Nissin spokes- person said. “We accept that we are not sensitive enough and will pay more attention to diversity issues in the future.” The company did not say what would become of the “Hungry to Win” ad, which was designed by Takeshi Konomi, a veteran manga artist best known for his popu- lar Prince of Tennis series. The spokesman said the ad had been created in keeping with Konomi’s trademark style. — theguardian.com Farai Mudariki’s two first team appearances for Worcester Warriors have both come in the Premiership Cup. Man City unites with SAP

PREMIER League Champions, Manchester City, and SAP SE, the club’s official cloud Software provider, as part of a long-term global partnership, have collaborated Zimbabwe prop signs new to bring cutting-edge SAP® technology to the dugout during matches. Following new rules to allow small technology de- vices at pitch side this season, City and SAP reacted contract at Worcester Warriors quickly to extend their existing technology coverage and make sure they could bring players the latest tactics and insights as they prepare to step onto the pitch. IMBABWE international Farai Mu- season. The Zimbabwe international made an The duo were forced off in Warriors’ dra- Manchester City’s women’s team uses the same dariki has secured his immediate future impact in Warriors’ win over Sale Sharks in matic 36-31 home triumph over Stade Francais technology as the men’s team, with stars like Steph by penning a new one-year contract at late October before coming off the bench in in the European Challenge Cup at the weekend. Houghton, Jill Scott and Nikita Parris all using the SAP Z Challenger Insights mobile app as part of their pre-game Worcester Warriors. another Premiership Cup clash at Saracens two Captain Van Velze looked in discomfort The tighthead prop arrived at Sixways weeks later. when he left the field with a hip complaint preparations in all competitions and during matches. earlier this season having spent two years as “Farai has not had a lot of opportunities,” midway through the opening period and was Using a bespoke version of SAP Challenger Insights, an academy player at Castres Olympique and Duncan said. replaced by Matt Cox. City’s analysts load up tactical plans and opposition in- then a season at Federale 1 club Tarbes where “One of his strong points is ball-carrying Fatialofa then suffered a blow to his shoul- sights onto tablets in the lead-up to games, which players former Warriors lock James Percival played and has shown that he has got the ability to get der and did not return for the second half as he consult whilst training at the City Football Academy, in alongside him. the team on the front foot. He has got a nig- made way for Darren Barry. the Etihad Stadium dressing room on a matchday and The 23-year-old, the younger brother of Jer- gling injury at the moment,” he said. Head coach Rory Duncan said he was now on the touchlines as well. — mancity.com sey scrum-half and Zimbabwe Sevens captain “But I am hoping that we are going to be “hopeful” van Velze and Fatialofa had not Hilton Mudariki, has made two appearances able to see him in a Warriors jersey within the picked up “serious” injuries. this term and was delighted to have agreed a next couple of weeks. It has not taken him long “GJ took a bit of a bang on his hip so medics Usain Bolt’s ‘sports life over’ new deal. to adjust to the environment,” Duncan added. will have a look at him,” said Duncan immedi- “We are building a great team here and I Duncan said the 23-year-old was currently ately after the comeback win. EIGHT-time Olympic want to be part of that as soon as possible,” he sidelined through injury but reckoned he would “Fatialofa took a bang on his shoulder. We champion Usain Bolt has said. be back in action soon. don’t know how serious it is. declared his “sports life “I plan to keep developing and hope to get Worcester Warriors Rugby Football Club “Obviously he carried on after the blow but over”, frustrated in his bid some more minutes on the pitch in that process. are an English rugby union club, playing in the we didn’t want to risk him going forward. to begin a post-athletics ca- “I am really thankful for the guidance that English Premiership. “We had capable cover in Darren Barry on reer in football. The Jamai- the coaching staff have given me thus far and Warriors also compete in the Premiership the bench so we thought it would be wise to can, 32, spent two months for the faith they have shown in me. Rugby Cup, European Challenge Cup, and take him off and not risk any further injury. training with Australian “I am enjoying my time here. A few of the Premiership Rugby Shield competitions. “I am certainly hopeful that none of those side Central Coast Mari- lads here played rugby with my older brother at Their home ground is Sixways Stadium, guys’ injuries are serious.” ners, but left in November some stage in their careers so I am quite famil- and the team colours are gold and blue. The start of Fatialofa’s Warriors career has after the club failed to find iar with them and they have helped me to settle The club was founded in 1871 by Reverend already been hit by injury and illness since his financial backing for a professional deal. “It was fun while into the club. Francis John Ede, with the first known game arrival from New Zealand in early November. it lasted,” said the 100m and 200m world record holder. “I “It’s a great time to be part of the project at played against the Royal Artillery Rugby Club The 26-year-old spent his first month at the don’t want to say it wasn’t dealt with properly, but I think we this club. I feel blessed, it’s really an exciting on 8 November 1871. This game was played club rehabbing a knee issue that he aggregated went about it not the way we should.” But he added: “You time to be involved,” he said. on Pitchcroft. while guiding Auckland to the Mitre10 Cup. live and you learn. It was a good experience — I really en- Mudariki is the 13th current Warriors player The club began playing at Bevere in After making his debut in last month’s win joyed just being in a team.” to sign a new contract as director of rugby Alan Worcester in 1954 and left Bevere for Six- over Pau and then his Premiership bow in the In October 2018, Bolt scored two goals on his first start Solomons continues with his retention and re- ways in 1975 when the clubhouse was opened. defeat to Northampton Saints Fatialofa came for the Mariners in a friendly against Macarthur South West, cruitment programme. When the league system was formed, the club down with hand, foot and mouth disease. celebrating with his trademark lightning bolt pose. The “Farai is a young player with loads of po- was placed in North Midlands Division One, a Fatialofa got off his sickbed to help War- A-League side were not the only team interested in signing tential and it’s terrific that he is extending his level eight league. riors beat Bath but lasted just 40 minutes Bolt — he turned down an offer from Maltese club Vallet- stay with us. I have no doubt that he will make Mudariki is expected to make his presence against Stade Francais. ta, reportedly because the club could not meet his wage de- his mark next season,” Solomons said. felt immediately when he recovers as Worces- Van Velze did not come through the first mands. He had also spent time training with Norwegian team Worcester Warriors head coach Rory Dun- ter Warriors is facing injury concerns over key half of the campaign unscathed either having Stromsgodset and German giants Borussia Dortmund. Bolt, can was quoted on Wednesday saying he hopes players Gerrit-Jan van Velze and lock Michael injured his shoulder in the loss at Gloucester in who retired from athletics in 2017, has said his focus now lies to see more of ball-carrying prop Mudariki this Fatialofa. early December. — WorcesterNews with his various commercial endeavours. — bbc.com The Financial Gazette January 24-30 2019 | Page S1

The Annual Buy Zimbabwe th Awards 2018 Buy Zim honours local companies

IMBABWE’s prime and preferred competitiveness driver Second runner-up: Nyaradzo Life Sponsor: Nestle Zimbabwe of the Year Award Safeguard; SECURICO for promoting quality, competitiveness, production, con- Insurance Nominees: Telecel Zimbabwe; This award recognises a Buy Zim- Winner: Peace Security Zsumption of local products and services, Buy Zimbabwe, Buy Zimbabwe ICT Company of Afrosoft; TelOne babwe partner for an outstanding per- First runner-up: Radio Solutions successfully hosted its Annual Buy Zimbabwe Awards at a colour- the Year Award Winner: TelOne formance and responsible business Electronic Security Systems ful ceremony held in Harare on December 19 last year. Below are This award recognises a Buy Zim- First runner-up: Telecel Zimba- practices in the security sector. Second runner-up: Safeguard the 2018 winners: babwe partner for an outstanding per- bwe Sponsor: Daily News Buy Zimbabwe SME of Year Award Buy Zimbabwe Insignia Award formance and responsible business Second runner-up: Afrosoft Nominees: Peace Security; Radio This award recognises an SME for This award recognises Buy Zimbabwe partners for using the practices in the ICT sector. Buy Zimbabwe Security Company Solutions Electronic Security Systems; To Page S3 Buy Zimbabwe insignia on products and promotional material as demonstration of quality, high local content, employment creation and environmental consciousness. Sponsor: YA FM Nominees: Dairibord Zimbabwe; Irvines Zimbabwe; KDV Bedding; N Richards Group; Nestle Zimbabwe; Proton Bakers Winner: N Richards Group First runner-up: Proton Bakers Second runner-up: Nestle Zimbabwe Buy Zimbabwe Local Procurement Award This award recognises local companies with local procurement policies, focusing on consistent implementation of such policies. Sponsor: The Financial Gazette Nominees: BAT Zimbabwe; Chemplex Corporation; Dendairy; Gain Cash and Carry; N Richards Group; Nestle Zimbabwe; Zimplats Winner: N Richards Group First runner-up: Chemplex Corporation Second-runner-up: Zimplats Buy Zimbabwe Farmers Support Award This award recognises local companies with strong linkages and support programmes for farmers. Sponsor: Zimbabwe Consolidated Diamond Company Nominees: Agriseeds; Beitbridge Juicing; Dairibord Zimba- bwe; Dendairy; ZFC Winner: Dairibord Zimbabwe First runner-up: Beitbridge Juicing Second runner-up: Agriseeds Buy Zimbabwe Mining Supplier Award This award recognises local companies with a proven quality and consistent supplies to the mining industry. Sponsor: Mimosa Mining Company Nominees: Boltgas; DSK Electrical; Original Technologies Winner: Original Technologies First runner-up: DSK Electrical Second runner-up: Boltgas Sectorial categories Buy Zimbabwe Manufacturer of the Year Award: FMCG This award recognises a Buy Zimbabwe Partner for outstand- ing performance in the manufacturing sector. Sponsor: OK Zimbabwe Nominees: BAT Zimbabwe; Eversharp; Nestle Zimbabwe; Olivine Industries; Proton Bakers; Pure Oil Industries; Schweppes Zimbabwe Limited; Surface Wilmar Winner: Nestle Zimbabwe First runner-up: Schweppes Zimbabwe Limited Second runner-up: BAT Zimbabwe Buy Zimbabwe Manufacturer of Year Award: Non-FMCG This award recognises a Buy Zimbabwe partner for an out- standing performance in the manufacturing sector. Sponsor: Gain Cash and Carry Nominees: Beta Bricks; Capri; Chloride Zimbabwe; Nash Paints; Steel Brands; ZENT Winner: ZENT First runner-up: Chloride Zimbabwe Second runner-up: Nash Paints Buy Zimbabwe Wholesaler of the Year Award This award recognises wholesalers for their outstanding sup- port for locally manufactured products. Sponsor: Nestle Zimbabwe Nominees: Gain Cash and Carry; Mohammed Mussa; N Rich- ards Winner: N Richards First runner-up: Gain Cash and Carry Second runner-up: Mohammed Mussa Buy Zimbabwe Mining Company of the Year Award This award recognises a Buy Zimbabwe partner for an out- standing performance and responsible business practices in the mining sector. Sponsor: N Richards Group; Nominees: Mimosa Mining Company; Zimbabwe Consoli- dated Diamond Company; Zimplats Winner: Zimplats First runner-up: Mimosa Mining Company Second runner-up: Zimbabwe Consolidated Diamond Com- pany Buy Zimbabwe Insurance Company of the Year Award This award recognises a Buy Zimbabwe partner for an out- standing performance and responsible business practices in the insurance sector. Sponsor: Agriseeds Nominees: First Mutual Life Assurance Company; Nicoz Di- amond Insurance Limited; Nyaradzo Life Insurance; Old Mutual Life Insurance Winner: Old Mutual Life Insurance First runner-up: First Mutual Life Assurance Company Page S2 | January 24-30 2019 BUY ZIMBABWE 2018 AWARDS SPECIAL FEATURE The Financial Gazette

KDV Bedding initially supplied close to 50 retail outlets, now have grown to around 220 retail outlets and various hotel chains. The back-bone of our success has been customers’ branch net- works- nationwide, allowing us to enhance our presence and increased sales. KDV: Unique sleeping experience

OUNDED in 1995, then known as KDV Trading P/L, rebranded in 2012 to become what is now fa- Fmously known as KDV Bedding. Our objective has been to revolutionise the bedding industry by providing affordable and unique quality sleep solutions, through our continuous research, inno- vation and development. Our goal was and remains, to be the leading bedding manufacturer in Zimbabwe. At KDV Bedding we understand the importance of a good night’s sleep and how this benefits oneself, through this understanding we have managed to develop the wide range of beds to ensure that across the income spectrum, everyone is able to own a quality sleep-solu- tion produced locally by KDV Bedding. This success is due largely to the fact that we are par- tially integrated wherein we produce our own foam and by this we are in total control of the quality of comfort levels which our beds possess. KDV Bedding‘s chief executive officer and manag- ing director brings with them 23 years of experience in the bedding industry and 18 years in top flight manage- ment. Both are actively involved in all aspects of business, especially in development of new innovative products and through this process they initiated, patented and reg- istered what is known as “Spinal Sleep System”, this is unique to Zimbabwe and the company’s intention is to introduce this dynamic brand to the region through ex- ports of its growing brands. Through the efforts of the management team and staff, KDV Bedding introduced a wide range of generic and exclusive lines for our clients in retail, wholesale and leisure sectors and with this each customer has be- come synonymous with well-known brands of bedding that one can find in these branded stores countrywide. Our marketing drive to keep all our customers and potential customers happy has been the success sto- ry and we found that nothing beats the ability to work closely with clients. This has helped develop customers’ unique and ex- clusive in-house brands through joint selection of co- lours, fabrics and price points. This in turn allowed us to tailor-make products that suit our customers’ needs and with this we have wit- nessed an upward trend year-on-year for both our clients and ourselves. Testament to this is the phenomenal growth of stores selling our products growing from 50 retail outlets to around 220 retail outlets, including various leisure sec- tors and franchises (regional and worldwide hotels and lodge brands). With this increased demand we are continually look- ing to enhance our technological ability, constantly acquiring state of the art machinery combined with im- proved efficiencies and work flows, allowing us to keep abreast with the latest world trends and offering these locally and regionally at affordable prices. No business is successful unless it has a strong mar- keting team that drives the brand/s and our team has managed to be the driving force behind our success; they assist our many customers by providing a personal touch. This has been provided through the constant commu- nication with clients, taking note of their requirements and working closely on getting the concepts right for us to produce products that suit them an in this regard com- ing up with unique ranges. Our intention is not just to build solid and fruitful re- lationships with all our clients but we also need to ensure they have a unique competitive edge. Through various promotions and advertising we keep the excitement of consumers enjoying a unique shopping experience wherever our beds are on sale because they need to fully understand and appreciate that a bed is just a bed but it is a sleep solution that provides a health benefit. The Financial Gazette BUY ZIMBABWE 2018 AWARDS SPECIAL FEATURE January 24-30 2019 | Page S3 Buy Zim honours local companies

Manufacturer of the Year Non-FMCG winner: ZENT Buy Zimbabwe Mining Supplier Award winner: Original Technologies Buy Zimbabwe Quality Award winner: Nestle Zimbabwe From Page S1 proven outstanding business management practices. Sponsor: N Richards Group Nominees: Capital Foods; Chitaitai; Gango Traditional Foods; Mr Brands; Olomide Trading; Purewell; Radio Solutions; Traylish Investments; Nash and Tally Winner: Mr Brands First runner-up: Gango Traditional Foods Second runner-up: Purewell Marketside categories Buy Zimbabwe Quality Award This award recognises local companies for upholding quality standards in their operations. The aim of this award is to recognise and appreciate organisations and individuals who are contributing to quality advancement in all sectors of the economy, thus using quality advancement to support national and regional economic development and growth. Sponsor: Nyaradzo Group Nominees: Nestle Zimbabwe; Pure Oil Industries; Schweppes Zimbabwe Winner: Nestle Zimbabwe First runner-up: Schweppes Zimbabwe Second runner-up: Pure Oil Industries Buy Zimbabwe Customer Service Award This award recognises Buy Zimbabwe partners for outstand- ing customer service practices. Sponsor: YAFM Nominees: CBZ Bank; Nyaradzo Group; POSB; Truworths Winner: Nyaradzo Group First runner-up: CBZ Bank Second runner-up: Truworths Buy Zimbabwe Corporate Social Responsibility Award This award recognises Buy Zimbabwe partners for their out- standing support for local industries and local communities and for embodying the principles of corporate responsibility in their business philosophy and operations. Sponsor: Agriseeds Nominees: CBZ Holdings; First Mutual Holdings; Nyaradzo Life Assurance; Zimbabwe Consolidated Diamond Company; Zimplats Winner: Zimplats First runner-up: Nyaradzo Life Assurance Second runner-up : First Mutual Holdings Honorary category Buy Zimbabwe Champion Award This is a discretionary award to recognise individual/s who has contributed significantly to the cause of the Buy Zimbabwe Initiative. The Buy Zimbabwe chairperson will consider an in- dividual with a consistent and outstanding track record of active involvement in business. This is a ‘Hall of Fame’ Award to honour individuals for an outstanding support towards the Buy Zimbabwe Campaign. Grand categories Buy Zimbabwe Product of the Year Award: FMCG This award recognises a product that is most preferred by local consumers. The winner is chosen by consumers through a public voting system. Sponsor: OK Zimbabwe Nominees: Eversharp 15M; Ballyhouse; Kefalos; Buttercup Margarine; Hullet Sugar; Nestle Cerevita; Silo Rice; Lobels White Loaf; Dairibord Chimombe; Dendairy UHT; Zimgold; Irvines Chicken; Pure Drop Cooking Oil; Gloria Flour; Tanganda Tea; Pearlenta; Willards Cornflakes; Camphacare; Mazoe Winner: Nestle Cerevita First runner-up: Pure Drop Cooking Oil Second runner-up: Mazoe Buy Zimbabwe Product of the Year Award: Non -FMCG This award recognises a product that is most preferred by local consumers. Sponsor: Gain Cash and Carry Nominees: Agriseeds ZAP 61; Exide Battery; Capri Top Freezer; KDV Pillowtop; SeedCo 727; Lafarge Portland Cement Contact: Winner: KDV Pillowtop First runner-up: SeedCo 727 Number 1, Harare Drive, Harare. Second runner-up: Lafarge Portland Cement Buy Zimbabwe Best Company Award This award goes to a Zimbabwean registered company, whose operations are based in Zimbabwe which has best demonstrat- ed its commitment to embedding the Buy Zimbabwe concept throughout its operations. Sponsor: Nyaradzo Group Nominees: BAT Zimbabwe; Dendairy; Nestle Zimbabwe; Nyaradzo Group; Schweppes Holdings Winner: Schweppes Holdings First runner-up: Nestle Zimbabwe Second runner-up: Nyaradzo Group Page S4 | January 24-30 2019 2019 INDIA DAY SPECIAL FEATURE The Financial Gazette

Army personnel showcase their skills during the rehearsal for the Republic Day 2019 parade in New Delhi.

T-90 ‛Bhishma’ tanks seen during the rehearsal for the Republic Day 2019 parade in New Delhi. India celebrates 70th Republic Day

EPUBLIC day in India is celebrat- and grand military parades, exhibiting the ed every year with great pride on military equipment take place, including RJanuary 26, to honour the Consti- a variety of other events. Indian nation- tution of India as it came into force on the al flag is tricolour in nature having hor- same day in the year 1950. izontal stripes, i.e. upper saffron, middle It had replaced the Government of white and bottom of dark green colour India Act, 1935 into the governing doc- divided in equal proportions and a wheel ument of India. (navy blue colour, having 24 spokes) in On this day, national holiday is de- the centre representing the Sarnath Lion clared by the Indian Government. The Capital of Ashoka. new Indian Constitution was sketched India is a country where people from and approved by the Indian Constituent different cultures, societies, religions and Assembly and decided to celebrate it on languages live in harmony with each oth- 26th of January every year as India be- er. The freedom of our country is indeed came a republic country. a matter of great pride because needless South African President Cyril Rama- to say it was obtained after many years of phosa, the fifth and current President of struggle and great sacrifice. South Africa is expected to be the chief Therefore, this day is celebrated ev- guest of honour. ery year in order to make Indian people Ramaphosa was invited by the Prime feel proud of having taken birth on this Minister, Narendra Modi during the G20 multi-cultural land. Republic Day is cel- summit which was held in Buenos Ai- ebrated in a very colourful fashion in or- res, the capital of Argentina. He (from der to make celebrations memorable and South Africa) was especially chosen for special for every Indian citizen. National this occasion because India is celebrating anthem is sung by the people who take the 150th birth anniversary of Mahatma part in the celebration. This celebration Gandhi who had very close links with the brings all the Indian people together and people of South Africa. instils a feeling of national pride as well Modi said that the visit of the South as love for the country. African President to India will help in India got freedom from the British enhancing the ties between the two coun- Rule on August 15, 1947. At that time, tries. there was no permanent constitution of The 2019 celebration will be special the country. It was on November 4, 1947 as this year will mark the 150th birth an- that the first draft of the Indian Consti- niversary of ‘Father of the Nation’. The tution was presented by the drafting yearlong celebration will start with the committee to the national assembly. The Republic Day by paying tribute to Ma- first draft of the Indian Constitution was hatma Gandhi. signed by the national assembly in both The Prime Minister will also inaugu- versions, i.e. English and Hindi on Janu- rate the ‘National War Memorial’ near ary 24, 1950. India Gate on the eve of Republic Day to Thereafter, the Constitution of India honour the soldiers who sacrificed their came into effect on Republic Day, Janu- lives for the nation. IAF will carry out a ary 26, 1950. Since then, 26th of January special fly-past with three helicopters and is being celebrated as the Republic Day SU 30 jets on the occasion. in India. On this day, India was declared This year, Indian Air Force will be fly- as the Purna Swaraj Country and thus we ing an aircraft which will run by blend- began celebrating this day as the anniver- ed bio-fuel on the Republic Day 2019 sary of the Purna Swaraj Day. fly-past with 10 percent of bio-fuel in it. The Constitution of India empowered The aircraft will fly over Rajpath with a the Indian citizens to select their own ‘V’ shape formation resembling ‘Victory’ government. The oath was taken by Dr. sign. Rajendra Prasad as the first president of Republic Day is the symbol of true India at Durbar Hall in the Government spirit for the independent India where House. India has a big history behind cel- Indian President hoists our national flag ebrating the Republic day. The Financial Gazette January 24-30 2019 | ZCDC 1 ZCDC 2 | January 24-30 2019 The Financial Gazette The Financial Gazette January 24-30 2019 | ZCDC 3 ZCDC 4 | January 24-30 2019 The Financial Gazette The Financial Gazette January 24-30 2019 | ZCDC 5 ZCDC 6 | January 24-30 2019 The Financial Gazette The Financial Gazette January 24-30 2019 | ZCDC 7 ZCDC 8 | January 24-30 2019 The Financial Gazette