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ZIM SITTING ON $300M WORTH OF DIAMONDS: Page 3 $4 News Worth Knowing Govt loses ground rental case: Page 5 December 13-19 2018 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette ZSE Report THE All Share index lost 1,12 percent yesterday to close at Business 155,32 points. Lafarge dropped $0,2300 to settle at $0,9300 while Delta lost $0,1475 to trade at $3,1500. Zimplow trad- ed $0,0550 higher at $0,2400. Meanwhile, Econet gained $0,0288 to close $1,5788. The industrial Index lost 1,14 per- cent to close at 522,19 points, fears the while the Top 10 index was down by 1,24 percent at 158,58 points. The Minings index was flat at 193,19 points. Currencies (Bloomberg) % change ◀ USD:ZAR 14,8338 1,63 EUR:USD 1,1316 0,26 ◀◀ ◀ GBP:USD 1,2764 0,46 ◀ ◀◀ worst for USD: JPY 113,2900 0,14 Stock Markets ZSE (All Share) 166,82 1,49 ◀ ZSE (Mining) 217,34 0,36 ◀ JSE 16 366,00 0,16 FTSE 100 7 142,33 1,52 1,48 Dow 25 243,54 Commodities (Bloomberg) 0,82 next year Gold 1 212,90 ◀ Platinum 836,31 0,02 ◀ 0,42 Brent Oil 75,59 ◀ Grains (Grain SA) Paul Nyakazeya “There are many promises of economic ac- White Maize ZAR 2 101,36 1,0 and Tabitha Mutenga ◀ tion, but no discernible movement,” Hawkins Soya ZAR 4 483,09 2,7 ◀ Staff Writers said in a recent 2019 business outlook analysis. Wheat ZAR 2 687,49 1,8 The ex-University of Zimbabwe lectur- ◀ FTER experiencing a tough 2018, as er said further that “there was no quick fix to Zimbabwe’s economy continues to Harare’s crisis”, with institutions such as the Fingaz cover Atank, business is bracing for more pain International Monetary Fund indicating that it in 2019 — characteristed by further hikes in the would take at least 10 years for fragile econ- prices of goods and services, high inflation and omies like Zimbabwe to recover and attract price goes up low disposable incomes, as well as persistent investment. MODUS Media (Private) fuel, power and foreign currency shortages. Trust Chikohora, a former Zimbabwe Na- Limited — publishers of the This comes as both President Emmerson tional Chamber of Commerce president, told iconic The Financial Gazette, Mnangagwa and Finance minister Mthuli Ncu- The Financial Gazette this week that the first e-newsletter Business Live and be have warned Zimbabweans to expect things quarter of next year was likely to be very chal- other specialist publications — in the country to get worse before they get bet- lenging and could result in some company clo- has announced a cover price ter, as the government’s “austerity for prosperi- sures and increased industrial action. increase for the Pink Paper. ty” measures kick in. “Government must move to ensure an effi- With effect from today, Economics professor Anthony Hawkins is cient use of foreign currency, in order to stabi- December 13, 2018, the price among the many experts who say it is imper- lise the economy. Any other economic policy of the print edition of The Fi- ative that authorities get all the fundamentals can only work where there is stability. In eco- nancial Gazette will be $4 per right if the economy is going to stabilise. UNITED Refineries Limited chief executive Busisa Moyo at the Mar- nomics, without stability you have nothing,” he copy. He adds that while Zimbabwe had attained a keters Association of Zimbabwe 2018 Superbrands Awards ceremony said. Modus Media thanks all its measure of political change in November 2017, held in Harare last week. The industrialist, who is also the Oil Express- Eddie Cross, an economic commentator, loyal readers for their valued the country was still waiting for “serious eco- ers’ Association of Zimbabwe president, said his company has injected said if authorities failed to take the requisite and continuing support, and nomic change”, with the new dispensation still almost $2 million in plant upgrades and refurbishments while another corrective measures soon, there was even a confirms that the above cover “kicking the economic reform agenda further $2,5 million will be spent in the next two years prior to listing on the danger that the economy would slide into a price increase will not affect down the road”. ZSE. — Picture by Freedom Mashava damaging recession next year. To Page 2 existing subscribers. Page 2 | December 13-19 2018 The Financial Gazette National News Liquid Telecom to invest Business fears the US$400 million in Egypt worst for next year From Page 1 as fuel and basic commodities”. “One does not need to be “It all depends on the nation’s an economist to know that our trajectory with regards to deci- AN-AFRICAN telecoms 54-member African Union. economy is in shambles, and the sion-making going forward. The group Liquid Telecom Group executive chairman queues for fuel attest to this. The investment climate will continue Psaid on Monday it was of Liquid Telecom’s parent solution is simple ... accelerate to be adversely affected by the investing eight billion Egyp- company Econet, Strive Ma- the programme of reform that has lack of foreign currency, which tian Pounds (US$400 million) siyiwa, said the next mission already been spelt out in the tran- results in the loss of productive over the next three years, as was to complete a link be- sitional stabilisation programme,” time or hours as people wait in part of a major partnership tween Cairo and Dakar in Sen- he said. queues ... companies’ inability to with Telecom Egypt which in- egal through Sudan, Chad and “We know that when you do source raw materials and gener- cludes network infrastructure Nigeria, as well as the rest of the right things, problems like al macroeconomic instability,” and data centres. West Africa. the fuel queues vanish overnight. Kadenge said. This follows the signing “We have already crossed We need an open, market-driven Businessman Shingi Munyeza of a landmark partnership Africa from East to West economy like yesterday,” Cross also said there was need to re-dol- agreement to mark the com- through Sudan and Chad. We said. larise as a short-term measure to pletion of Liquid Telecom's are at the Nigerian border and Lovemore Kadenge, the Zim- stabilise the economy. award-winning ‘Cape to Cairo’ we expect to reach Abuja by babwe Economic Society (ZES) “We have a bumpy road network which represents the the end of January in time for president, said the country need- ahead. Our economy is dollarising fi rst direct land-based terres- the AU Summit. We want to ed to prioritise currency reforms and we see a lot of goods and ser- trial fi bre link between the two reach Dakar before President — among many other things — vices being paid for in US dollar,” cities at opposite ends of the El-Sisi fi nishes his term,” Ma- which could include the removal he said. African continent. siyiwa said. of bond notes from the market to “For as long as there is a tight- Telecom Egypt is the fi rst “It would have been im- curb the fi scal and monetary prob- ening on money supply, through operator in that country pro- possible to reach this far so lems that had been experienced fi scal discipline, we shouldn’t see viding all telecom services to quickly without (AU chair- this year. further deterioration but a correc- its customers including fi xed man Paul Kagame’s) support. “All the pressure in the econ- tion, which is painful to the com- and mobile voice and data ser- He adopted this initiative as a omy is pointing towards the need mon person,” Munyeza said. vices. key project during his tenure to re-dollarise. For as long as we Brains Muchemwa, anoth- It will use the network to and has been highly supportive continue using the bond note, the er economist, concurred with connect Egyptian businesses throughout its development. government will continue subsi- Kadenge saying the government to the rest of Africa, whilst We know President El-Sisi will Strive Masiyiwa dising fuel as the American dollar must work on currency reforms also partnering with Liquid help us take it to the next level and the surrogate currency are not urgently, while also preserving the Telecom to build data centres because he understands the vi- at par,” he said. value of real time gross settlement across the country. Liquid Telecom’s expand- companies was signed at the sion of Africa.” “Arbitrage opportunities will (RTGS) balances in the wake of a After an initial investment ing network is almost 70,000 weekend during the Africa Fo- Masiyiwa also expressed continue to persist, and increas- fast re-dollarising economy. of US$50 million in data cen- km and is linked to more than rum in Cairo. his appreciation for leadership ingly, demands for hard currency “The most important interven- tres and cloud services, Liquid 600 towns and cities in 13 President Abdel Fattah support across the continent, will also be made,” Kadenge said. tion and mechanism is to drain Telecom plans to invest an countries across Africa. El-Sisi welcomed the devel- saying the ‘One Africa’ model The long-serving ZES leader the RTGS swamp through the additional US$350 million in It is also part of the wider opment as a major milestone could encourage other entre- said if the current monetary and issuance of long-dated paper and broadband and fi nancial inclu- ‘One Africa’ broadband net- in connecting his country with preneurs to build projects in fi scal policies remained in place, raising steeply the reserve thresh- sion initiatives, as well as high work which has been strong- the rest of the continent and complementary sectors, such with no fi nancial bailout in sight, old or requirement for banks,” he capacity data centres, similar ly supported by the African said he would continue to push as rail and power.