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May 30-June 5 2019 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette

ZSE Report The All Share index gained a massive 6,92 percent on Tuesday to close at 176,81 points. BAT added $1,80 to close at $32,10 Market while Delta rose by $0,2878 to $3,4771 and Econet was $0,2103 higher at $1,6212. The Industri- al Index was up 6,92 percent to close at 591,51 points as the Top 10 Index gained 8,84 percent to close at 173,32 points. The Min- ings Index was up 4,29 percent at 200,10 points.

Currencies (Bloomberg) % change ◀ USD:ZAR 14,7645 0,20 EUR:USD 1,1157 0,03 anxiety ◀ GBP:USD 1,2652 0,01 ◀ USD: JPY 109,2700 0,10 ◀

Stock Markets ◀ ZSE (All Share) 176,81 6,92 ◀ ZSE (Minings) 200,10 4,29 ◀ JSE 14,700,00 1,38 1,59 FTSE 100 7 153,42 ◀ 0,93

Dow 25 347,77 ◀

Commodities ◀ Gold 1 283,83 0,35 0,65 batters Platinum 794,52 ◀ 2,40 Brent Oil 68,43 ◀

Grains ( ) Grain SA ◀ White Maize ZAR 2 433,39 6.00 ◀ Soya ZAR 4 626,68 5.2 ◀ Wheat ZAR 2 727,36 5.1

First female president RTGS$ for Chamber of Mines Omega Ukama “There is panic in the market. Things like ELIZABETH Nerwande was Business Reporter power cuts and fuel shortages are driving the yesterday elected president of rates up,” he said, adding that the interbank mar- Zimbabwe’s Chamber of Mines, HE RTGS dollar continues to take a heavy ket must be allowed to determine rates and op- becoming the first female to lead battering against most major currencies — erate freely. the 80-year-old body. amid worrying indications that it may soon Chris Mugaga, the Zimbabwe National The Mimosa Mining Com- T pany corporate affairs executive trade above 10 to the American unit, as the coun- Chamber of Commerce (ZNCC) chief executive, try’s hard cash shortages escalate. warned that the road ahead would be tough. ― who took over from Bindura This comes as Zimbabwe’s official inflation “The exchange rate will continue to slip until Nickel Corporation’s managing has hit a 10-year high of 75 percent, thereby the equilibrium is discovered. It could hit around director Batirai Manhando ― piling more pressure on already-stressed local 11 or 12 by year-end if things continue the way will be deputised by Unki Mine’s businesses — as commerce and industry also they are,” he said. Rwandese ambassador to Zimbabwe James Musoni, pictured at chief financial officer Coleen continue to reel from power blackouts and fuel “In the absence of clear and sound economic his Harare office recently, is set to be The Financial Gazette’s guest Chibafa and Demand Gwatinetsa shortages, among other ills. reforms to boost production, parallel market for- of honour at its prestigious Top Companies Survey launch on June of How Mine. 7, 2019 in partnership with Old Mutual. With Kigali maintaining a Sifelani Jabangwe, the Confederation of Zim- eign currency rates will continue on the upward Nerwande, a former executive solid growth path and emerging as one of Africa’s most sought-af- director of the Consumer Coun- babwe Industries’ (CZI) president, told The Fi- trajectory,” Mugaga said. ter investment destinations, the country's GDP per capita has cil of Zimbabwe, has been in the nancial Gazette this week that the recent surge in In the ZNCC boss’ view, “it is things like the grown by 5,2 percent, the highest on the continent after Ethiopia. parallel foreign currency rates was due to a lack central bank’s forex retention policy that is abet- Picture by Freedom Mashava. mining sector for over 10 years. of confidence in the economy. To Page 2 – FinGaz Page 2 | May 30-June 5 2019 The Financial Gazette National News Market anxiety batters RTGS$

From Page 1 John Mangudya and Finance minister Mthuli other long-standing idea that the local currency must always ting the crisis”, as well as “the country’s interest Ncube are in agreement that the interbank and track the trading of the rand to the American dollar. rate policy, which is also compounding the situ- parallel market forex rates will converge around However, others feel the “theories are too simplistic” and ation”. June-July, the benchmark Old Mutual Implied the RTGS$ is likely to “hold steady at single digit levels as “The monetary policy was silent on inter- Rate — which has been in use since the hyper- the Zimbabwean market’s liquidity is tight at RTGS$1,6 bil- est rates, and with inflation rising, it means that inflationary days — puts the RTGS dollar-green- lion in electronic balances to purchase foreign cash, and the we have an expansionary monetary policy. This back exchange rate at seven-plus. recently introduced US$500 million interbank facility might gives people room to borrow money and to take This, at a time when the local unit has depreci- just be enough to satisfy demand for genuine currency seek- long positions in the forex market,” he said. ated by 100 percent to trade at five to one United ers or buyers”. “There are people talking about the tripartite States dollar and from 2,5 points in February. And with the local economy also slowly re-dollarising negotiating forum (TNF), but I don’t think that And with the formal market failing to quench — as witnessed by a number of retailers and other business- we need that. Rather, we need just a negotiating the country’s voracious appetite for foreign cur- es which have started quoting prices in US dollars — the forum. “In the tripartite arrangement, certain rency, some economists see the RTGS dollar parallel market has been running amok over the past three stakeholders such as the informal sector are left trading at between 17 and 23 to the greenback in weeks, after it emerged that the government was in the mar- out,” Mugaga added. the medium to long term, and such projections are ket for US$80 million to fund electricity imports. Brains Muchemwa, an economist, concurred based on a number of assumptions including the But Finance ministry permanent secretary George Guva- with him saying: “On the back of our exports, Brains Muchemwa “economic interactions” between national debt matanga believes that the parallel market is “way too insig- which have not been growing fast enough to and average foreign earnings of US$800 million. nificant to influence economic activities and that, therefore, counteract the domestic monetary expansion, the ply that has been growing at a considerably fast Proponents of these devaluation scenarios the American-local dollar exchanges should settle at four”. exchange rate should continue weakening. pace year-on-year,” he said. also cite the country’s low reserves, which must “There is no normal market that moves in a few hours. “This has been reflected in broad money sup- While Reserve Bank of Zimbabwe governor be a minimum 12 months import cover, and an- From a rate of 1:4 to 1:8 without trade. It is actually a clear reflection that we cannot base our prices on that market,” he argues. While the former Barclays Bank Zimbabwe managing director acknowledges “the existence of black markets ev- erywhere else in the world”, Guvamatanga has somehow contradicted his principal’s earlier pronouncements that they “will not seek to align the interbank and parallel market rates”. In the meantime, big corporates including Pearson Gow- ero’s Delta Corporation have been complaining about their struggles to get foreign currency on the interbank market. “The interbank market doesn’t have enough dollars for everybody. We have participated there ... but we are not getting as much as we would like,” he said at a recent presenta- tion of the company’s March 31 results. Meanwhile, Ncube blames the parallel market for stok- ing the country’s runaway inflation. “The parallel exchange rate market premiums have remained the major source of inflation driving up prices, particularly prices of tradable goods,” he says. “In the outlook, inflation is anticipated to gradually sub- side as the impact of fiscal consolidation and tight monetary policy measures restrain demand,” the Cambridge-trained economics professor said. Similarly, cable manufacturer CAFCA has also warned that the current cash shortages would lead to “hyperinflation”. “The shortage of foreign currency is going to lead to acute hyperinflation and the customers will not be able to either afford or finance purchases from CAFCA,” the company said recently. John Robertson, a veteran economist, weighed in saying: “Activity on the black market suggests that the owners of US dollars don’t want to put them into a bank account. They are still of the opinion that they might never see them again, as has happened before”. “Government is suffering from a trust deficit, as it was government that withdrew US dollars from corporate, personal and even charity bank accounts about 12 years ago. “The banks were unable to stop government from taking the money, so now neither the banks nor the government are trusted,” he said, adding that the “crisis will persist until we increase export earnings, or the country, including the government, learns to live on fewer imports”. On his part, businessman Nigel Chanakira said the continued weakening of the currency reflected poorly on policy makers. “That a currency can continue to collapse so spectacular- ly in a matter of days is an indictment on the policy makers of Zimbabwe,” he said. “More so, that this has occurred repeatedly for over two decades,” Chanakira, an ex-banker and free market propo- nent, said in a tweet last week. Congratulations However, fellow businessman and Presidential Advisory Council member Shingi Munyeza believes that the RTGS$ will soon stabilise. “I think that the rate will probably hover around the 500 percent mark (and) as soon as there is order, and transparency in the interbank market the rate should start to go down,” he said. “This is because there is a lot of hard cash out there ... but it is not in the banking system. I estimate that there could The Board, Management and Sta members of FBC Holdings be as much as $2 billion outside of the banking system,” congratulate Mr Webster Rusere (FBC Bank Managing Director) on his Munyeza said. The ex-hotelier also hoped that the TNF Bill, which re- reappointment as the BAZ President. We are proud to be associated cently went through its first parliamentary reading, would with your success and wish you another successful term. bring some “order” to the markets. “The social contract aspects … will be a significant price-management structure for this economy and once this Makorokoto Amhlophe! is in place, speculation will be done away with,” Munyeza said. “l know people are thinking we are headed towards 2008, but things are different. In 2008, the multi-currency was illegal and that created more speculation … we had serious shortages and the shops were empty, but it is not like that now,” he said. “There will be demand resistance as prices continue to go up. This is because incomes cannot keep up with inflation,” Munyeza said. [email protected] See also comment on Page 8 The Financial Gazette May 23-29 2019 | Page 3 Page 4 | May 30-June 5 2019 The Financial Gazette The Financial Gazette May 23-29 2019 | Page 5 Page 6 | May 30-June 5 2019 The Financial Gazette National News Rand hits 7-month low RBZ struggles with on cabinet delay concerns $4,9m NatFoods debt Omega Ukama bank, a development he says resulted Colleen Goko Business Reporter in a reduction in the group’s creditors on its books. OUTH Africa’s rand slumped to a seven-month low as ATIONAL Foods (NatFoods), “Regrettably, shortly after the peri- an unexpected delay in the appointment of the cabinet one of Zimbabwe’s food pro- od end, the RBZ has had to delay pay- stoked concerns President Cyril Ramaphosa is facing Sopposition to his reform agenda. Ncessing giants, is struggling to ments on the facility, which in turn has The currency’s slide on Tuesday started when the ruling import raw materials after the central disrupted flour supplies to the market,” African National Congress confirmed David Mabuza would bank failed to remit its US$54,9 mil- he said in a statement accompanying be sworn in as a lawmaker, opening the way for him to be lion legacy debt owed to a foreign sup- the group’s unaudited results for the reappointed as deputy president. plier. six months ended December 31, 2018. It gathered momentum as investors speculated about the Earlier this year, NatFoods an- “The group continues to work composition of the executive. That would be announced this nounced that the Reserve Bank of closely with the RBZ to resolve the week, the government said at the weekend, without giving a Zimbabwe had assumed its debt in a matter and remains fully capacitated specific date. move meant to allow the company to to produce adequate volumes of flour Mabuza, 58, was linked to a succession of scandals while continue operating its flour milling provided the necessary foreign curren- he served as premier of the eastern Mpumalanga province, unit, which it had warned was on the cy to import wheat is availed,” Moyo though he denied the allegations and has never been charged. brink of closing down due to delays in said. Still, his reappointment could set back Ramaphosa’s efforts payment of foreign suppliers. Meanwhile, Tiger Brands said its to repair the reputational damage to the party after his prede- However, South African foods giant income from associates decreased cessor Jacob Zuma’s scandal-marred nine-year rule. Tiger Brands, which owns a 37 percent by 41 percent to R200 million. The The delay in the appointment of the cabinet suggests Ra- stake in NatFoods, said the foreign company however says its associates maphosa’s isn’t having it his own way as he negotiates with currency liquidity challenges were af- Carozzi and UAC Foods “produced factions within his party. David Mabuza fecting its operations in Zimbabwe. solid performances”, with NatFoods “Investors worry that Ramaphosa will not be able to root “The challenge of trading sustain- “performing satisfactorily”. out corruption from the top echelons of the government as be cleaner. But we need to see the official news about Mabu- ably in this environment for NatFoods NatFoods posted a profit after tax promised, endangering his reform agenda,” said Per Ham- za, the real deal about what his role will be.” has been exacerbated by the delays of of $16,8 million, which was 78 percent marlund, the Stockholm-based chief emerging-market strat- It’s been a difficult May for developing-nation currencies the Reserve Bank of Zimbabwe (RBZ) above the same period last year. egist at SEB AB. The rand could reverse declines if Mabuza in general due to a risk-off environment sparked by the un- in making payments of debts to the The group’s volumes grew 18,4 shows commitment to reform measures, he said. certainty around a United States-China trade deal. Even so, major supplier of NatFoods, which percent over the prior period, driven The rand dropped as much as 2,2 percent and traded 1,9 the rand is underperforming its peers, weakening 2,2 percent percent weaker at 14,7088 per dollar by 5:05 p.m. in Johan- month-to-date compared with the 1,4 percent drop for the were assumed by the reserve bank as mainly by stockfeeds “as the poultry nesburg, hitting its weakest level since October and leading MSCI EM Currency Index. Foreign investors have sold a net part of a funding agreement concluded sector recovered from the Avian Influ- emerging-market currency declines. Yields on benchmark 6,1 billion rand (US$417 million) of government rand bonds during the period under review,” the enza outbreak” and maize “on the back 2026 government rand bonds rose six basis points to 8,45 this month, according to JSE Ltd. data. company said. of a poorer local maize harvest and the percent. “It is indeed local factors and politics that seem to be the Todd Moyo, NatFoods’ chairman, fact that household maize retentions “Buy the rumor and sell the fact is in full effect right main culprits,” said Guillaume Tresca, a strategist at Credit recently indicated that the company were reduced on account of the attrac- now,” said Wichard Cilliers, a trader at TreasuryOne Ltd. in Agricole SA in Paris. “Foreigners are still cautious and the has however settled the full amount, tive GMB price”. Johannesburg. “It’s putting the rand under pressure because latest developments on the appointment of the deputy presi- in domestic currency, to the reserve [email protected] investors thought there was a chance that the cabinet would dent should not help foreign appetite.” – Bloomberg CABS banks on merged Chivayo petitions ZPC again

units to widen reach NTRATREK Zimbabwe (Intratrek) has approached the High Court for an Nelson Gahadza by the end of April this year, will Iorder to force the Zimbabwe Power Business Reporter continue to operate under its own Company (ZPC) to comply with Justice license for the foreseeable future. Tawanda Chitapi’s December ruling that ABS managing director The CABS boss further indi- the latter must facilitate the completion Simon Hammond says the cated that the financial services of its 100 megawatt (MW) Gwanda solar impending merger of the group was finalising a review of project. C This comes as defence lawyer Lew- financial institution with Old Mu- its interest rates in line with mar- tual Finance will allow the group ket developments. is Uriri has taken new Energy minister to leverage on their combined cus- This comes as several banks Fortune Chasi to task over the seasoned tomer base to widen market reach. have since reviewed their rates attorney’s weekend remarks and insin- This comes as Old Mutual Zim- of minimum lending to between uations that the Zesa subsidiary must babwe recently moved to consoli- 15 and 17 percent due to loss of recover its money by any means, which date the group into three clusters value. the former sees or interprets as undue along its major operations name- Hammond said while the bank influence or interference in the ongoing ly, insurance, banking and wealth has been trading on the interbank disputes ― and processes. management as part of its restruc- market, it expects availability to “This is an application for leave to execute, pending appeal, the judgment turing exercise improve, given recent policy an- ad factum praestandum of the High Hammond told The Financial nouncements. Court rendered on the 13th of Decem- Gazette that the merger will see The Reserve Bank of Zimba- ber 2018… Applicant sued respondent Wicknell Chivayo the migration of the microfinance bwe introduced the interbank mar- (ZPC) ... for an order declaring the valid- In his December ruling, which came was unfortunate and precipitate,” Chitapi unit ― Old Mutual Finance ― as ket on February 22, 2019 although ity of the agreement concluded between in between two landmark findings by fel- said. a subsidiary of the holding com- takeoff was subdued due to sup- the parties and for the discretionary rem- low High Court justices Benjamin Chi- Crucially, such behaviour “would pany to becoming a subsidiary of pressed foreign currency liquidity. edy of specific performance,” Intratrek kowero and Owen Tagu, respectively, send wrong signals to investors and the CABS. When the interbank was intro- managing director Wicknell Chivayo the learned judge not only said there was business community at large that if they “As both businesses provide duced, the black market rate was at said in his founding affidavit filed on no fraud on Chivayo’s part, but award- conclude contracts with State-controlled banking services, this will assist in 3,5 in February but the continuous Tuesday this week. ed Intratrek US$25 million in (potential) entities they risk enforcement of obliga- leveraging on synergies between failure to access foreign currency “The non-satisfaction of conditions damages. tions via criminal procedures as opposed them, from a client and geograph- on the interbank market caused precedent on the basis upon which the “It follows that in the circumstances to civil remedies”, he observed. ical location perspective,” he said. the rate spiral upwards. However, agreement had purportedly been termi- of this case, there was no breach by the “If there is anything that public policy Old Mutual Finance, a credit trading on the interbank market is nated gave rise… to the need for parties applicant based on failure to perform requires… is that parties are to be made only microfinance business which expected to improve after the cen- to meet and review… It was contended on time. Following the amendment of subject to their bond and (that) under- opened its doors to business in tral bank allowed the rate to freely that the bilateral process not having been the contract, there was no legal basis for takings … must be honoured. To allow May 2017, has made notable prog- float starting Tuesday, May 21. pursued… the attempt to terminate… the respondent (ZPC) to allege a failure a person of mature age… to enter into ress in growing its customer base. Hammond said CABS will contrary to provisions was unlawful. The to perform and to file criminal charges a contract... and then repudiate it … is The unit is expected to play an continue to lend but applying tight agreement had for that reason remained against the applicant,” he said, adding contrary to the interest of any and every integral role in driving financial risk acceptance criteria in light of existent,” he said, adding “the ZPC had “there were disputes whose importance country,” Chitapi said. inclusion through the provision of the challenging operating environ- been responsible and frustrated through transcended the sparring parties’ interests “The finding of the court that the in- financial services to market segment characterised by diminishing third parties the fulfilment of certain and the power firm’s prospects of suc- volvement of a stronger third party hand ments previously not serviced by real disposable incomes and low milestones, and conditions”. cess on appeal… would be tantamount to at the instance or for the benefit of the re- traditional financial institutions liquidity. While Chitapi concurred with the ap- simply gaining time or harass the other spondent was uncalled for in that it is not and lenders. “We continue to offer value pellants’ views that they had been hound- party”. provided for in the contract,” he added. As part of Old Mutual’s re- chain based financial packages ed out of the contract and electricity job “Such conduct was arbitrary and in So stinging and brutal was the judg- structuring, CABS Custodial unit comprising lending, investments unfairly in his first ruling, the ex-private the circumstances, a ploy to frustrate ment that it not only referred to the dis- will also be amalgamated with the and transactional business through lawyer is expected to make a determi- the applicant. The involvement of the missed corruption allegations as “con- building society. digital channels as well as bancas- nation in the leave to execute applica- State… in the contractual dispute in cir- trived”, but it virtually proved or exposed Hammond said the Custodi- surance. We believe these will tion within the context of serious power cumstances where the contract was clear that the ZPC was under pressure to save al Services Unit, which had $4,1 drive the business into the future,” shortages currently bedevilling the coun- on dispute resolution… and before the face and manage public perception. billion assets under management he said. [email protected] try and “preponderance of equities”. mechanisms therein had been exhausted [email protected] The Financial Gazette May 23-29 2019 | Page 7 Page 8 | May 30-June 5 2019 The Financial Gazette Leader Page

News Worth Knowing Spare us this madness...

SNIDE joke, which was circulating on social media about two weeks ago said: Zimbabwe must be included in the list of 1 000 ways to die. A But if prominent economist Brains Muchemwa’s Tuesday tweet that “the country must endure serious hyperinflation before the economy reboots” is a harbinger for real things to come, then one cannot miss the “creepy sense of reality” in this terrible banter when juxtaposed with what is obtaining in this country and the likely effects of these diabolic plans. “Met one bureaucrat ... and discussed the economic challenges. As we parted, the consensus was that this country needs very high inflation to erase the residual values of RTGS dollars and pave way for a new beginning,” he said, adding the “earlier it happens, the better and it seems government has same thinking”. While Muchemwa has reconfirmed the tweet and is certainly a well-connected guy, our hearts bleed when we hear a “whole government” is planning to annihi- late its citizens again through a financial tsunami in the scale of 2008 ― and this borders on nothing but treacherous politics. With inflation already at 76 percent and rocket-high fuel prices, many should be wondering what the idea is for one to even think that this perennially-troubled nation must go through that kind of suffering again “before things settle” ― except to confirm that we are under a sclerotic ruling elite that has also failed in its stewardship of the country? And from the look of things, Zimbabwe is hurtling towards “hades” ― that Tanzanian President John Magufuli inspects the guard of honour upon his arrival at the Robert traumatic era marked by fuel, power and foreign currency shortages, unemploy- Gabriel Mugabe International Airport in Harare on Tuesday for a two-day state visit. ment, mass starvation and other socio-economic ills. Picture by Freedom Mashava Already, people are suffering from currency-induced commodity prices and a situation where most retailers ― formal, and informal ― are pricing their goods in American dollars, and yet we have a body politic, if not “two percent tax bri- gade”, that believes the only way out is to “burn the folks” before things get right? This is plain evil and insensitive, we must say, such that if there are such plans, we implore President Emmerson Mnangagwa's government to nip such debates Surviving tough economic times in the bud. While the official inflation data came before May 21's fuel price hikes, we IMBABWE’S economy time households often adopt the debted you are becoming and you shudder what June and this month's inflation figures will be ― and at a time some is facing tough times. The coping strategies, such as making will have to pay back what you are academics such as Steve Hanke have put it at around 300 percent. economic challenges affect changes in the household expendi- committing yourself to. In the meantime, average incomes in the country remain static and have plum- Z greatly the working class and the ture patterns which affect educa- Overspending is not a sound meted to 60-year lows, and whereupon many in the country's adult population are person on the street. The unabated tion, health care and nutrition. Do financial decision, especially now surviving on less than US$20 a month. price increases fuelled by the tum- not try to swim against the tide, ― you accumulate unnecessary This means that poverty levels in Zimbabwe have reached numbing, unprec- bling exchange rate of the RTGS accept that change is part of life. debt that can be very expensive edented and frightening levels, and yet someone believes it's a brilliant idea to dollar against the US dollar have Make necessary adjustment where for you to pay off, causing finan- introduce “the hyperinflationary subject” in a market already reeling from low grossly impacted on disposable need be. Adjust your goals and cut cial stress. Consider your bank confidence levels. Thus, we believe Zimbabweans deserve a diligent, responsible, decisive and incomes since salaries for many back on your spending. Accep- balance rather than your buying responsive government, which can extricate them from perpetual penury and have remained unchanged. tance of circumstances that are power. If you are pressed and you deepening crisis. If anything, Mr President, your people are desperate for useful Inflation has eroded earnings beyond your control helps you fo- have no other option than con- ideas and not this crass attitude, and “crocodile mauling” from clueless bureau- for many and it has become very cus on the circumstances that you sidering credit lines you must set crats that have been cavorting with the Muchemwas, and all. tough to get by each day. Taking can change. You can’t change the limits. Always monitor your credit And if the country's leadership is not careful, Robert Mugabe's removal for into consideration the inflation- economic situation but you can purchases and make sure that you failing to “handle or manage Zanu's succession battles” would turn out to be ary pressures while the average definitely do something that can do not exceed the personal limit child's play when one considers the economic tsunami before us! employee is still earning the same reduce its impact on you. you have set. Overspending while salary, prices of many basic com- You should start by listing all trying to raise one’s status is a modities and transport have gone your basic expenditure like rent, condition of economic material- Southern Africa’s Leading Business and Financial Newspaper up. Coupled with the massive food, mortgage payments and gas ism which hurts people financially Established 1969 power cuts and persistent fuel and then cut on expenditure like because it results in unnecessary Publisher: Modus Media shortages, one thing is very clear, clothing and other luxury consum- debt. the cost of living is drastically er goods. Also find ways of cut- You need a budget EDITORIAL MARKETING higher day after day. ting your usual monthly expenses Have an understanding of Editor-In-Chief & Chief Oper General Manager - Marketing Christopher Goko: gok .zw .zw by using cost saving alternatives your overall daily, weekly, and or Brand Executive - Advertising ― for example you can reduce monthly earnings. Once you know Deputy Editor Open Forum your transport expenses by using your earnings you should now .zw Edwin Vengesa: ev .zw Senior Sales Executives a fuel saving car, public trans- focus all your effort in managing Managing Editor Christobel Washaya: cwashay .zw with port, sharing rides and minimising your daily, weekly and or month- .zw the overall mileage travelled per ly budget accordingly. Develop a Senior Assistant Editor .zw Rambanani Baloyi month. budget to plan your expenses and Chris Gumun .zw Sales Representatives - Harare Do not forget those other irreg- use it to keep your expenditure on ular expenses that you pay on a track. News Editor .zw John K .zw Frank Nyandoro: fny .zw Some people are struggling to quarterly basis or once in a while Budgeting is not just for people Edreck: emudzingany .zw afford three decent meals a day, like car insurance. There are other who do not have enough money. It Companies Editor Shame Makoshori: smak .zw Sales Representative - Bulawayo falling behind with their payments expenditures you can also reduce is for everyone who wants to en- Clever Pedzisai: [email protected] and struggling to afford basic like airtime and internet data. Cut- sure that their money is used wise- Group Digital Editor Brand Executive - Events health care. ting back on unnecessary expendi- ly. Always try to keep your spend- Paul Nyakazeya: pnyakazey .zw K .zw Our country is going through ture will enable you to prepare for ing within your budget and if you Brand Executive - Subscriptions Features Editor tough economic times and there is a rainy day and save you a lot of are finding it difficult to cope with Tatenda Taka: t .zw .zw no denying that we are in this for financial stress. budgeting you will need to make Subscriptions Representatives the long haul and even more tough Live within your means some necessary adjustments to Production Supervisor Ronald Madiviko: rmadivik .zw times lie ahead as the country tries The last thing that you need to make it work for you. Kudzai Rushambwa: krushambw .zw Elizabeth Nyamaruze: eny .zw to get to grips with the economic do right now is to live a lifestyle When you budget you plan how Chief Executiv crisis. To survive this turbulence that you cannot afford. Live with- to use what you earn to meet your .zw amid high inflation, rocketing ba- in your means. If you can’t afford urgent needs accordingly. It helps sic commodity prices and trans- anything in cash don’t buy it. Us- you to set your priorities right and Bulawayo Editorial, Advertising & Circulation 1st Floor, Princess Court, port costs, everyone will have to ing credit cards and credit facili- you will be able to only spend on 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, make necessary changes. There ties in stores makes spending seem what is important. You are in a P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. is a greater need to make sure that so easy. Many people walk into a better financial position if you can Tel: +263-242-781 572 Tel: (029)75873/75270 Website: www Distributed by: ANZ one keeps their head above the departmental store intending to manage to keep your expenditure water. Here are some simple tips buy just a single item but walk lower than your earnings. This VOLUNTARY MEDIA COUNCIL OF ZIMBABWE on how to survive these tough eco- away with more items than intend- way you will have more money The Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of nomic times. ed because of their high purchas- to save. You stay guided and keep Zimbabwe at: Accept change and adapt ing balance. Remember the more your eyes on your goals and ob- No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz Change is inevitable in a tough you utilise and enjoy your high jectives. Zimbabwe economic situation. During this purchasing power the more in- To be continued next week The Financial Gazette May 30-June 5 2019 | Page 9 National News Load-shedding Zim exports power Tabitha Mutenga Features Editor

IMBABWE’S cash strapped power utility Zesa Holdings (Zesa) is still exporting electricity to ZNamibia despite implementing crippling power shortages. The two countries four years ago signed a US$150 million power purchase agreement for the supply of 80 MW per month. The loan from Namibia was meant for the refurbishment of the Kariba South Hydro Pow- er Station, which was commissioned last year. This was after Zimbabwe had already paid off its first loan of US$40 million advanced to Zesa in 2007 to upgrade its Hwange Thermal Power Station in return for electricity. According to the agreement, NamPower was supplied with 150MW per month for eight years. Kahenge Haulofu, NamPower’s managing director, said his organisation continues to supplement its energy requirements with imports from sister utilities in the South African Power Pool (SAPP). “A number of import agreements will be ex- piring in 2020 and the company is gearing itself to ensure that more local generation plants are brought on line to cover the anticipated gap that will be experienced,” he said in NamPower’s 2018 annual report. “ZPC, a subsidiary of Zesa, continued supplying NamPower with 80 MW, which is dispatched based on the load factor of 50 percent. This is a source based supply, stemming from the Kariba hydro power plant,” Haulofu said. Namibia also imports electricity from South Afri- ca, Zambia, Mozambique and the SAPP Day-Ahead Market, which is sourced from other producers in the region. Panganayi Sithole, the Zimbabwe Energy Council executive director, said it was only normal for Zimba- bwe to honour its contractual obligations. “We received a loan and it had to be paid back in the form of power exports,” he said. However, the latest development comes at a time when Zesa, which was expecting to this year export its surplus energy courtesy of the extension of the Kariba South project, has re-introduced load shedding throughout the country to ease pressure on the grid, citing low water levels in Kariba Dam. Zimbabwe generates 1,400MW of power against national requirements of 2,100MW, which is met by imports from neighbouring countries, predominantly South Africa, which itself is facing power shortages. This has resulted in massive power cuts hitting the manufacturing and mining sectors — which contributes more than two thirds of Zimbabwe’s export earnings — adding to difficulties in a country already grappling with a lack of United States dollars, soaring prices and shortages of fuel, food and medicines. The southern African nation, which experienced its worst power shortages in 2016 following a devastat- ing drought, was producing 915 MW on Wednesday against peak demand of 2,100 MW. The Zimbabwe Electricity Transmission and Dis- tribution Company (ZETDC) early this month said Kariba Power Station, which is already operating at half capacity, will reduce generation further to 358 MW from 542 MW, as a drought reduces water levels at the dam that feeds the plant. As Zimbabwe enters its peak winter power demand season, ZETDC told companies and private households to reduce electricity consumption, especially during periods of high demand. “In the event that this supply and demand equilibrium is not maintained, the power utility would have no choice but to curtail some loads to restore grid stability,” it said. [email protected] Page 10 | May 30-June 5 2019 The Financial Gazette

Infrastructure gap potential investment area

Tabitha Mutenga government creates an enabling rehabilitation and modernisation,” the Features Editor environment for the private sector report said. to invest in agriculture through tax Also, information gathered during the OVERNMENT should work incentives. survey indicated that for the agriculture on a comprehensive approach “The Government of Zimbabwe, sector to prosper, there should be an Gto revamp infrastructure in as part of its capital expenditure, established road network to ease the the agricultural sector, especially in should consider investing in physical transportation of inputs and produce. communal areas, as this will create an infrastructure in the farms by putting “In that regard, respondents suggested enabling environment for investment more emphasis on communal farmers that a road fund be established for through value chain financing who were found to be unproductive rehabilitation and maintenance of farm strip models, a new report has said. and funds used in Command roads and communal roads and construction The 2018/19 Agriculture Agriculture can be earmarked for this of roads in newly resettled areas. Sector Survey, commissioned by exercise,” the Survey said. “It is important for stakeholders in The Financial Gazette and the The study noted that inadequate the sector to prioritise investment in Zimbabwe Agricultural Society and development, rehabilitation and infrastructure to provide a stable foundation conducted by the Africa Economic modernisation of agricultural for the future growth of the sector,” the Development Strategies, noted that infrastructure across all categories survey said. while poor agricultural infrastructure has been a large contributor to low Besides the road network and the had adverse effects on farm productivity and production, and Inadequate development, rehabilitation and modernisation of agricultural irrigation infrastructure, the study also activities, it also presents investment ultimately competitiveness. infrastructure has been a large contributor to low productivity in Zimbabwe. highlighted how limited access to opportunities for government as well “Investment in irrigation agricultural machinery and implements as private sector players. infrastructure has not been realised with little functional irrigation with about 365 000 hectares suitable for was compromising the timeliness of farm “It is important that the government over the past years and some of equipment,” the study reported. irrigation. operations. works on a comprehensive approach the infrastructure availed through According to the Agriculture However, less than 50 percent of this For instance, the current national to revamp infrastructures in the government programmes lies idle at ministry, of the 39,6 million hectares is currently equipped for irrigation, of demand for tractors and combine harvesters agriculture sector in Zimbabwe. In farms. A poor schedule for repairs of land in the country, about 42,1 which about 123 000 hectares is currently stands at 40 000 units against the available this approach, it is important that and maintenance has left the sector percent is utilised for agriculture, irrigated mostly by commercial farmers 14 000 tractors, while 400 combine and smallholder irrigation projects yet the harvesters are required yet the country has country has the potential to irrigate two 300 units only. million hectares of land. “From this perspective, there is scope “The utilisation of existing water for investment into the mechanisation of bodies, underground water and the agricultural sector in Zimbabwe.” transboundary water bodies such as the The survey suggested that the Zambezi River and Limpopo River can country’s infrastructure gaps, which range make a significant contribution to food from deficits of irrigation equipment, security and agricultural growth in the combine harvesters, tractors, roads, silos, country, especially in drought periods. rehabilitation of dams can be financed However, the available water bodies are through government initiatives and public currently underutilised, mainly due to lack private partnerships. of investment in irrigation development, [email protected] May 30-June 5 2019 Page 11 Companies&Markets The Financial Gazette NESTLE EMBRACES ZIM COFFEE — 12 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) SWISS company Nespresso says it has adopted Zimba- bwe’s home grown coffee as part of its Arabica coffee range consumed worldwide. 0,11% 0,84% 0,22% 0,06% 0,16% 10,6840 11,94 66,91 11 729,92 1 337,36 ZSE bull-run continues Adelaide Moyo Business Reporter Power outages weigh HE Zimbabwe Stock Exchange (ZSE) has remained upbeat despite the central down Border Timbers Tbank liberalising the fuel market. Although the decision triggered an imme- Omega Ukama diate and massive depreciation of the RTGS$, Business Reporter it was good news for the local bourse as its market capitalisation breached the psycholog- OREST estates and saw-milling company Border ical $20 billion mark last week. Timbers (Border), currently under administration, Over the past two years, the local bourse says its lumber production for the eight months to has been experiencing intermittent rallies F February 2019 was significantly affected by power out- spurred by deterioration of foreign currency ages. exchange rates against bond notes and local The company says it produced 46 605 cubic meters of bank balances — now the RTGS$ — on the timber during the period under review, down from 58 770 parallel market. cubic meters produced in previous comparable period. The mainstream index was up 3,19 percent “Lumber production is lower compared to the same to 517,77 points buoyed by gains in Cassava period prior year due to low production in the months of Smartech up 8,29 percent, Econet Wireless up December 2018 to February 2019 at one of our sawmills 7,88 percent and Delta Corporation, up 0,47 caused mainly by general power outages,” said Peter Bai- percent. ley, Border’s judicial manager, in the company’s trading On Thursday, market turnover increased update for the period under review. 49,07 percent to $14,39 million as heavy “However, sales volume was higher due to increased weights Old Mutual, Delta, SeedCo and Cas- demand on the local and export markets. sava accounted for 95,54 percent of the out- “Higher sales volume was achieved out of sales from turn. buffer stock,” he said. “The market upsurge continued in the mid- Total sales were 51 146 cubic meters down from 59 week session as the search for a safe haven in 467 cubic meters. the stock market increased following the de- “Treated poles reflect a decline in both production and cline in the value of the local currency,” equi- sales as they are mostly tender based and there has been ties firm, EFE Securities said. a general slowdown in the market hence low production Market watchers said stocks with the most Infographic by Darius Mutamba compared to comparable period February 2018,” Bailey value remain a safe haven to provide a curren- said. cy hedge and sail through a difficult climate in Significant losses for the day were record- However, FBC Securities said the best way Revenue at $16,4 million saw a positive improve- the country, ed in Dairibord, down 15,48 percent, Meikles, to eliminate the parallel market or matching it ment compared to prior comparable period, $14,3 million The All Share Index was up 3,13 percent to down 8,57 percent and Simbisa, down 1,06 with the official market is through full liberal- “mostly driven by lumber sales”. 154,86 percent while the Top Ten Index was percent. ization of the official market and scraping of Bailey also noted that the cyclone has caused severe up 3,57 percent to 147,47 points. The Mining Index was down 1,62 percent subsidies. damage to many roads bridges and other infrastructure of Notable gains were recorded in Willdale to 191,87 points attributed to a 6,25 percent “Hyperinflation and dollarisation are in- the company’s land. which was up 19,15 percent. loss in Bindura Nickel. evitable probably in two years from now. In- “A full report on the likely consequences will be pro- The brick maker recently introduced Topaz Reserve Bank of Zimbabwe governor stead of handholding the economy at a time vided in the next update,” he said. Bricks, which it said will reposition the com- John Mangudya said the procurement of fuel the government is not sufficiently capacitated Meanwhile, the company is going to have split its pany in the market and go a long way in sub- through the interbank foreign exchange mar- to subsidise foreign payments demands, it can awards from last year’s arbitration ruling of the ICSID stituting imports. ket was “necessary to promote the efficient counter the imminent recession through liber- concerning land that had been previously expropriated First Mutual Holdings Limited was up use of foreign exchange and to minimise and alisation and the economy migrates into recov- from the company by the government of Zimbabwe af- 17,13 percent. The firm recently said it is in the guard against incidences of arbitrage within ery. Austerity measures, sticky salaries, price ter another company was granted relief in relation to the process of relocating its reinsurance business, the economy.” increases are worsening the living conditions same land, as well as other land not connected with the First Mutual Reinsurance Company (FMRE), To oil the foreign currency market, the in the country,” the equities firm said in a note. company. to Botswana in order to escape the limitations central bank secured a US$500 million line of Government policies have led to a whop- “In July 2015, as an outcome of the ICSID arbitra- of the local operating environment, which has credit, which it said would be disbursed into ping 50 percent fuel price hike, official inflation, the company was awarded a US$125 million set- been unfavourable for the business. the economy at prevailing interbank foreign tion at 75 percent and a parallel foreign ex- tlement. Despite the government of Zimbabwe’s applica- Ariston was up 10,50 percent while First exchange rate on a willing-seller willing-buy- change market that is running amok, among tion for annulment, the arbitration award was reaffirmed Mutual Properties was up 10,20 percent. er basis. other ills. [email protected] in November 2018” Bailey said. [email protected]

Oﬁicial Media Partner Page 12 | May 30-June 5 2019 The Financial Gazette Companies & Markets Caledonia, Blanket deal awaits approval

Nelson Gahadza bination of the cancellation of the loan to the indigenisation Act passed in March 2018 which Business Reporter between the two entities which stood at removed the 51 percent indigenisation requirement for $11,467 million as at June 30, 2018; and gold mining businesses, Caledonia and NIEEF have ALEDONIA, a New York Stock Exchange-listed the issue of 727,266 new shares in Cale- agreed to enter into a transaction whereby Caledonia resources group, says it is yet to get regulatory donia at an issue price of $7,5 per share. purchases Fremiro’s 15 percent shareholding in Blanket. Capproval to acquire a controlling stake in Zimba- “On completion of the transaction, Curtis said the group has had several engagements bwe-based Blanket mine. Caledonia will have a 64 per cent share- at various government levels and received assurances to Steve Curtis, Caledonia’s chief executive, told The holding in Blanket and Fremiro will hold the effect that the company could acquire a controlling Financial Gazette at an Imara Capital investor confer- 6,42 per cent of Caledonia’s diluted equi- stake in the local mining entity. ence that the group is optimistic about Zimbabwe’s in- ty,’ Curtis said. He said despite the difficult environment, the compa- vestment environment, hence the deal. Fremiro acquired its 15 percent share- ny continues to invest heavily in the country. “We signed a deal to buy a 15 percent in Blanket that holding in Blanket when Caledonia im- “Zimbabwe is a good place to do business. It is tough is owned by local partners. We are still waiting for the plemented transactions in 2012 in com- but we are comfortable. The government and authorities Reserve Bank of Zimbabwe (RBZ) and the Zimbabwe pliance with the country’s indigenization know what needs to be done. So we will continue to in- Revenue Authority for the approval to conclude the ac- and Economic Empowerment Act. vest seeing that there is a future,” he said. quisition,” he said. As part of the transactions, Caledonia He noted that Caledonia remains on track to achieve Last year, Caledonia entered into a Memorandum of sold 41 percent of Blanket mine to indig- the production target of 80,000 ounces by 2021 at Blan- Understanding with Fremiro Investments with the inten- enous Zimbabwean shareholders. ket mine, adding that the company’s strategic focus con- tion to purchase Fremiro’s 15 percent shareholding in Apart from Fremiro, the local share- tinues to be the implementation of the Investment Plan Blanket mine following the scrapping of indigenisation holders included the National Indigenisa- at the mine, which was announced in November 2014 rules in the country. tion and Economic Empowerment Fund and revised in November 2017 with an extension to the In terms of the agreement, Caledonia will acquire at 16 percent and Blanket employee trust Central Shaft project and is expected to extend the life of Fremiro’s shareholding in Blanket for a gross consider- services 10 percent. mine by providing access to deeper levels for production ation of $16, 667 million to be settled through a com- However, following amendments Steve Curtis and further exploration. [email protected]

Zimbabwe’s coffee is highly regarded among those in Africa. Nestle embraces Zimbabwe coffee

Tabitha Mutenga Features Editor

WISS company Nespresso says it has adopted Zimbabwe’s home grown coffee as part of its Ara- Sbica coffee range consumed worldwide Nespresso, the brand that is known for its wide range of coffee machines and even wider range of single-use coffee capsules, has been quietly working local coffee farmers in Manicaland. The Nestle subsidiary said Zimbabwean coffee — known as Tamuka muZimbabwe — has a unique acidity and fruity tones, which makes it quite the ideal coffee for a Latte Macchiato. “The world almost lost Zimbabwe’s coffee to climate and political issues. But farmers joined Nespresso’s Re- viving Origins programme with a plan to bring it back. “Working closely with the farming community, bringing expert trainers and establishing sustainable practices will help restore Zimbabwe’s coffee industry in the long term. It’s not an over-night goal, but we’re in it for the long haul,” Nepresso said in a statement Zimbabwean coffee was once highly regarded for its quality, a prince among East African coffees. In the late 1980s, Zimbabwean coffee farmers produced over 15 000 tonnes of coffee a year, according to the Unit- ed States Department of Agriculture, placing it firmly among the top global coffee producers. “This year we get to celebrate the return of an Ara- bica bursting with complex fruitiness and zesty, bright acidity. You’ll catch notes of everything from cranberry to red berries, and currant to grape. Try Tamuka mu Zim- babwe as a Latte Macchiato, and taste how milk gives this Reviving Origins coffee a creamy, smooth texture and brings out sweet notes of caramel and toffee. Zim- babwe’s coffee has awakened. The supply is still limited, but it’s a sign of more to come,” Nepresso said. Coffee production in Zimbabwe was fast disappear- ing, following a long period of political and economic instability and the seizure of farms, with production volumes down to 430 tonnes in 2017 after a year of particularly volatile prices and high production costs. The Swiss coffee company invested in 450 local smallholdings in partnership with the non-profit organisation TechnoServe, bringing in agronomists to help train farmers in sustainable farming and skills such as coffee processing and tree management. [email protected] The Financial Gazette May 30-June 5 2019 | Page 13 Companies & Markets Nampak defies volatile environment

Omega Ukama raw material constraints,” said Nampak. Business Reporter CarnaudMetalbox revenue also increased “significantly” even though volumes declined by 33 percent on the AMPAK Zimbabwe (Nampak) says its businesses prior year “as demand was constrained by the illiquidity in have continued to enjoy decent success despite the the market”. Nprevailing volatile macro-economic conditions. The group said Mega Pak revenue was also up despite Although the listed firm said Zimbabwe’s trading envi- volumes declining by 22 percent “due to raw material sup- ronment, characterised by scarcity of foreign currency and ply challenges and dampened demand from the beverage rising inflation, presents major challenges to its operations, and cordials sector”. latest figures show that the company’s business remains Still, the company expects the economic situation in the buoyant. country to persist in the short to medium term. “Group revenue is ahead of the prior year despite vol- “The trading environment remains difficult and is likely umes being significantly down in the plastics and metals to remain so for the foreseeable future. The company re- segments and marginally ahead in the printing and convert- mains engaged with the appropriate authorities and insti- ing segment,” the company said in a trading update for the tutions in an effort to manage these challenges,” Nampak six months to March 31, 2019. said. The group’s Hunyani Paper and Packaging unit saw its The monetary policy statement issued on February 20, revenues increasing over the prior year with volumes grow- 2019 changed the operating environment through the intro- ing by 10 percent. duction of the inter-bank foreign exchange market and the “The Corrugated Products Division experienced higher RGTS Dollar. local and export tobacco box orders but suffered from stiff The company says this has necessitated ‘it carefully competition in the corrugated commercial sector. The Car- considering the alternatives and the impacts on its reported tons, Labels and Sacks Division volumes declined due to Nampak’s paper and packaging unit’s revenue increased by 10 percent. results”. [email protected] UK firm raises US$200 million for Zim lithium

NITED Kingdom-based corporate advisory firm, Wimmer Financial LLP (Wimmer), says Uit is raising US$200 million for lithium production in Zimbabwe. Lithium is emerging as the most sought after mineral in the manufacture of the common batteries which power these vehicles due to its high power to weight ratio which increases vehicle performance. Per Wimmer, the company’s founder, said although there were various investment opportunities across Af- rica in mining, oil and gas, green energy as well as real estate, the firm was currently concluding a deal in the lithium space. The former Goldman Sachs banker said as the demand for electric cars and batteries increases, so does demand for what goes into a battery, which is lithium, graphite, cobalt and copper. These elements are vital for new technology ad- Contact: [email protected] vancements and products, and are therefore shaping demand and supply on a global scale. “As a result of that we are currently doing a $200 0786 738 086 or 0772 149 318 million deal with a lithium mine in Africa, so it very much plays into that theme for near-term production. This plant is in Zimbabwe,” he said. Wimmer said he remains optimistic about Zimba- bwe’s future despite political and market uncertainties in the southern African country. “We do our own risk appetite assessment and go quite far out with political risk, as is the case with Zim- babwe, which is certainly not the most stable country in Africa. We normally like to call Namibia and Bo- tswana ‘Africa for beginners’ because it is so stable, so boring and so well organised, whereas other countries are not,” he said. “Having said that, when it comes to the slightly more risky countries, you can de-risk the financial aspect of doing deals in Africa, for instance through insurance, you can take political risk insurance on certain African countries,” Wimmer added. A-Grade, Modern Office Space available in Zimbabwe, the fifth largest producer of lithium on the planet, is expected to ramp up production of the mineral that powers rechargeable devices, including prime location in Belgravia. telephones and automobiles. American automaker Tesla’s plans to mass-produce its Model 3 battery-powered car have stoked world- Areas available from +/-570m2 – 3,500m2 wide demand. Tesla estimated its production target for electric cars alone — 500 000 vehicles by 2020 — could require as much lithium as is already currently being produced. Several firms including Prospect Resources,- Pre mier African Minerals and Bikita Minerals have invested over US$500 million in lithium production in Zimbabwe. According to S&P Global lithium demand should grow at least 20 percent in 2019 compared with 2018, driven by batteries for electric vehicles, Chilean producer SQM said in its annual report. There appears to be an amount of emerging juniors and majors of the lithium mining sector attempting to modernize the industry with advancing and improved abilities to extract lithium at a lower cost and faster pace over the lithium minors of the recent past. In other words, there is now a new level of producers in the markets with lithium demand set to soar once again. Analysts are now giving way to the notion that the supply-demand balance may just be actually much tighter than prices suggest. — Staff Reporter [email protected] Page 14 | May 30-June 5 2019 The Financial Gazette Foreign News US-China trade war hits SA VW dithers OUTH Africa may be almost 12 000 ki- are banking on to stimulate revenue growth. lometres from Beijing and even further The dispute between the US and China will Saway from Washington DC, but is still also worsen negative sentiment around equity affected by the US-China trade war. prices, which the insurer needs to boost the on US$56bn The country is “a small, open econo- value of its assets, chief executive officer Da- my which grows by selling into the glob- vid Munro said in an interview at Bloomberg’s al demand,” central bank governor Lesetja offices in Johannesburg. Kganyago told reporters in Pretoria on Thurs- “We are battling a little bit of headwind battery deal day. with the US-China trade war,” Munro said. That’s no different to other emerging econ- “The extent to which equity markets rally OLKSWAGEN is making changes to its bat- omies, which will also be held back, he said. increases our assets under management and tery-purchasing plan worth about US$56 billion Flaring US-China tensions over trade came assets that we administer in pension funds. over concerns that one of its supply deals, with The whole business is geared toward equity V to a head this month when talks between the Samsung SDI, might unravel, according to people familiar two superpowers fell apart. market performance.” with the matter. US president Donald Trump has since Ultimately, “there are no winners,” Samsung initially agreed to deliver batteries for just raised tariffs on Chinese goods and put re- Kganyago said as the South African Reserve over 20-gigawatt hours, enough to power 200 000 cars with strictions on telecommunications giant Hua- Bank held the key interest rate at 6,75% while 100-kilowatt-hour packs, before different views on produc- wei, with a solution to the impasse seemingly cutting the full-year economic growth fore- tion volume and schedule emerged during detailed negotia- far off. cast. tions, said the people, who asked not to be identified as the That may hurt the probability of South Af- “Trade wars are silly, you want to control talks are confidential. rica’s economy coming out of the doldrums — your market, but you still want access to other The impasse cut pledged supplies to less than 5-gigawatt an eventuality that companies such as Liberty Donald Trump markets so it’s illogical,” he said. — Fin24 hours, they said. Access to vast amounts of batteries to power a growing number of electric vehicles has emerged as a new battle- ground for global automakers amid capacity constraints, supply bottlenecks and limited access to raw materials. Producing batteries safe to use in cars is more complex than the technology used for consumer electronic devices like smartphones. “VW ultimately needs 300-gigawatt hours of annual battery cell supply and without robust global multi-sourc- ing contracts this will be impossible,” Evercore ISI analyst Arndt Ellinghorst said. “It’s one thing talking up electric vehicle volume num- bers, building the necessary value chain remains a major challenge.” Shares of Samsung SDI dropped as much as 4,9 percent in early trading on Tuesday in Seoul, their biggest intraday decline in more than two weeks. They were down 1,9 percent as of 9:21 am local time. VW is spending €30 billion on the industry’s biggest push into electric vehicles with a new range of purely battery-powered cars to challenge electric-car leader Tesla. The German manufacturer’s electric ID.3 hatchback will start rolling off assembly lines later this year. “Samsung continues to be our battery cell supplier for Europe,” VW said in an emailed statement. Samsung declined to comment. Tesla, beset by concerns over demand and its ability to make a profit, last month accused its battery supplier, Pana- sonic, of being the culprit for tepid production rates of the affordable Model 3. Earlier this month, VW outlined a project to build a domestic battery-cell factory in Germany together with Swed- ish startup Northvolt for almost €1 billion with the capacity of 10-gigawatt hours. VW plans to take a final decision later this year. VW’s electric rollout in the next ten years translates into battery demand of more than 300-gigawatt hours in Europe and Asia alone, outstripping current market capacities. VW has picked LG Chem, Samsung and SK Innovation as battery suppliers for Europe along with Contemporary Amperex Technology for China. It later added SK Innovation as partner for North Ameri- ca as well, starting in 2022. The huge investments required to ramp up battery-production capacity have stoked intense rivalry, highlighted by a lawsuit LG Chem filed in the US against SK Innovation over allegedly stealing secrets. SK Innovation has denied acting improperly. — BBC Kenya seeks $750m loan from World Bank ENYA has requested the World Bank for $750 million to fund affordable housing, agriculture and Kother development projects amid concerns the East African nation is taking on too much debt. It’s the first proposed so-called Development Policy Financing to support Kenya’s reform program to “further enhance economic growth and make it more inclusive,” the lender said on its website. Some of the funding is for two of the state’s so-called Big Four priorities — affordable housing and farmer incomes and food security — while the rest will “create fiscal space to allow the government to invest in key development programs; and crowd in private investment and leverage digitisation to support the government’s inclusive-growth agenda,” the World Bank said. If approved, the financing will be hot on the heels of US$2,1 billion in Eurobonds that Kenya raised earlier this month for infrastructure projects and to retire maturing debt. In the first quarter, the government borrowed 25bn shillings (US$1,23 billion) in a syndicated loan, as part of the 299bn shillings of commercial debt it budgeted for the 2018-19 fiscal year. — Bloomberg The Financial Gazette May 30-June 5 2019 | Page 15 Companies & Markets NMB maintains focus on mass market Nelson Gahadza the group faced its fair share of challenges tions from RBZ are for the rate to start falling towards year Business Reporter due to uncertainty and lack of confidence in end. NMB Bank, like many other financial institutions in the economy. the country, has also reviewed its minimum lending rate to MB Holdings (NMB) — once a niche market bank “The market adopted a wait-and-see 15 percent. Washaya said as a result of the headwinds in the — says it will continue focusing on the mass market approach in the beginning of the year, as operating environment, net interest income and non-interest Nas a way of surviving Zimbabwe’s harsh economic everyone was waiting for direction from the income for the four months to April 30 were 7,2 percent and environment. fiscal and monetary authorities particularly 21,6 percent below budget respectively, resulting in an un- Benefit Washaya, the bank’s chief executive, told share- over issues to do with the currency regime,” der-performing operating income. holders in a trading update last week that the low cost ac- he said. The group’s operating income for the four month period count, NMBLite had proved popular, registering a huge “Even after the announcement of the was 22,7 percent but the group expects to close the gap in uptake. currency framework, the banking industry the second quarter mainly due to improved transaction vol- “Trucks to boost campaigns for customer acquisitions did not adjust its business conditions until umes and a revision in service fees and interest rates. had been acquired. As a result, transactional volumes had April 2019 and the new conditions only be- In the period under review, the group secured some seed improved 17,5 percent between February and April 2019,” came effective this May and this meant that foreign currency from the RBZ following the liberalisation he said. the industry bore the brunt of inflationary of the interbank market. The NMBLite account was introduced in 2016, aimed pressures, which had started taking effect in Washaya said the introduction of an exchange rate be- at the lower end market. It had no monthly bank charges, October last year.” tween the RTGS Dollar and USD meant companies had to as part of the dual listed financial services group’s drive to The NMB boss noted that the rising in- rebase their accounts and this had elevated the level of for- make banking accessible to everyone. flation trend is expected to continue until the eign exchange risk on company balance sheets. Washaya said during the first four months of the year, third quarter of the year, although projec- Benefit Washaya [email protected] National Blankets in final liquidation

Adelaide Moyo Business Reporter

ULAWAYO-based textile maker National Blankets is going through final liquidation Bafter it failed to find an investor to fund its resuscitation. The firm was placed under judicial management in 2012 after it faced serious viability problems. The High Court last week appointed Phillip Nd- lovu of PNA Chartered Accountants as provisional liquidator of National Blankets, which at its peak supplied about 70 percent of its products into the local market, with 30 percent of its output being ex- CALL TO TENDER: EXHIBITIONS EQUIPMENT ported mainly into the Southern African Develop- ment Community (SADC) region. “Any interested party may appear before the court sitting at Bulawayo on June 13, 2019 to show why a final order should not be made placing applicant company in final liquidation and ordering Parliament is calling for service providers to submit quotations for the following equipment: that the costs of the proceedings shall be costs in sequestration,” read part of a notice in the government gazette. The latest development comes at a time Bula- 1. Samsung 55” LED Screens with USB Port and stands x 2 wayo minister of State Judith Ncube recently indi- 2. P.25m HD slim screen with stand 5 x 6 m, USB port, Black in colour x 1 cated that an Italian investor has shown interest in the textile maker. 3. P6.67 indoor screens 4m x 6m, USB Port, Black in colour with stands x 3 However, a source close to the company said Na- 4. PA System, PRORECK Club 3000, 12-Inch 3000 watt DJ/ Powered PA Speaker tional Blankets is not appealing to the market. System Combo Set with Bluetooth/USB/SD Card/Remote Control (Two “It is hard for National Blankets to court any investor. Of course investors will come and look at the Subwoofers and 8X Array Speakers Set) x 1 product and then leave because there is a lot that has to be done there, with the type of machinery that needs to be changed and debts that the company has The quotations should be submitted in sealed envelopes clearly marked ‘Exhibitions accumulated,” the source said. National Blankets received a US$500 000 loan Equipment’ to: facility from the Central African Building Society under the Distressed and Marginalised Areas Fund in 2013 but this was insufficient to turn around its fortunes. In 2014, creditors agreed to convert their debt into equity. The creditors excluded the collapsed Capital Bank and service providers such as Bulawayo City Council, who were paid US$2,6 million from pro- The Chairperson ceeds of property sold to the National Social Securi- ty Authority the previous year. Parliament Procurement Committee The creditors, however, were not keen on putting Parliament of Zimbabwe new money into the company, which had borrowed heavily. About US$3million was required for the re- Parliament Building capitalisation of National Blankets. Cnr. K. Nkurumah Avenue and Third Street National Blankets was incorporated in 1939 as a blanket manufacturing company. P.O. Box CY 298 With over 70 years of operation in Zimbabwe, the company had become a market leader in blanket Causeway manufacturing. Harare However, the firm faces an uncertain future due to illegal Chinese imports with the country’s textile industry being dominated by a flood of cheap im- Closing date of submission of quotations is end of day Friday 14th June, 2019 ports that are being aided by porous borders. Surviving textile companies are operating below 40 percent of capacity due to inadequate working capital needed to replace obsolete equipment and stiff competition from cheap fabric imports which have seen the country literally relying on imports. On its website, National Blankets said its controlling shareholders were Zimbabweans who operate through a registered consortium. Apart from a very small minority, it is “almost completely Zimbabwean owned”, the company said. [email protected] Page 16 | May 30-June 5 2019 The Financial Gazette Motoring Renault Koleos Dynamique vs Peugeot GT Line French civil war

TOP GEAR with progressive at speed but just a tad Richard Wiley over-boosted at low speeds which means concentration is needed to achieve feathered stops. As for fuel OR reasons that are very hard use, like most small capacity turbos, to fathom, South Africans have there’s a big difference between cruise Fdeserted station wagons in their consumption and overall consump- droves and made a beeline for SUVs tion. On the open road, figures in the which to me are little more than sta- low 7s were easily attainable but ur- tion wagons on stilts. Sure, that SUV ban running sees 10.5l/100km as the fetish is rapidly becoming a global norm. phenomenon, but in the UK and Eu- The Renault offers a totally dif- rope at least, the station wagon is not ferent mechanical layout in that pow- yet dead. er is sourced in a normally aspirated My recent tenure in successive 2.5 four (126kW/233Nm) that drives weeks of two of France’s mid-range through a CVT gearbox to either 2 SUV contenders brought all this wheels or 4 wheels. 2WD is the reg- nonsense into focus but it also made ular setting but Auto apportions pow- me wonder which of the two vehi- er as needed front to rear while 4WD cles would get my money given their Lock sends power equally, front and end-pricing in RSA at least is separat- rear. ed by little more than 10 percent. When driven with absolute re- First off, be aware that the Re- straint, this Renault feels decently nault is actually a Korean-built Nissan refined and soothing with good sup- X-Trail in disguise but that’s no bad pression of mechanical commotion thing as the Jap version is most defi- and smooth progress via the transmis- nitely one of the better examples of sion. But as with all CVT applications, the breed. Adding a bit of garlic fla- when pace is demanded, the gearbox vouring shouldn’t do too much harm! winds up like an elastic band and The Peugeot 3008, by contrast is Although rated mid-size, the Renault Koleos has grown up. seems intent on curbing rather than a blue-blood Frenchman and winner promoting progress. The end result of numerous international awards, is a disappointingly gutless feel for a not least, the 2017 European Car of 2.5 that’s no doubt compounded by the Year title which to me is the most the fact that the unremarkable torque coveted and most valuable of the tril- peak only arrives at 4 000rpm com- lions of awards dished out all over the pared with the 1 400rpm of the 3008. globe. At altitude, and especially with a load DESIGN on board, this lethargy will be com- Given that the Koleos is not a pure pounded. breed, it’s fair to say that the exterior If this rather ancient engine/trans- designers have done a great job at the mission combo disappoints, the over- prow and the stern in making sure on- all fuel consumption of 8.9l/100km lookers know it’s a “Renault.” Much makes up in part for the lost ground. more imposing and bigger than be- So too does the excellent ride which fore, the second gen Koleos does look is comfortable and controlled, albeit a tad anonymous in profile but a really that coarse tar sets up an unpleasant excellent, glossy paint finish and de- din inside. The steering too is pleas- cently-tight panel gaps add a touch of antly weighted and nicely geared and premium feel to the package. Wheels the brakes are beyond criticism. On are 18-inch V-spoke alloys. a related subject, I did not like the The Peugeot on the other hand, American style foot-operated parking succeeds in looking more distinc- brake which contrasts with the Pug’s tive and with it, more premium still. electrically operated switch. Sure, the frontal treatment is a tad CONCLUSION busy, even cumbersome, but overall, Pricing of these two is relatively if you asked an onlooker which was close in RSA at least, but let’s say the the posher SUV, the Pug would take extra money asked for the Peugeot is the kudos. It too sports really glossy reflected in the posher cabin trim in paintwork and tight panel gaps along particular, and in a drivetrain that’s with 19-inch multi-spoke alloy wheels light years more modern. The 3008 is INTERIOR also more obviously French, if that ap- It once was the case that people Peugeot 3008 GT Line features lots of exterior adornment. peals. The Renault falls between two bought French cars for their cosset- stools in terms of identity, even if the ing, softly-furnished interiors that driver also gets two-way memory – through a smart leather-bound wheel for offering a supple ride – sometimes front and rear styling suggests other- probably had more showroom appeal and while those in the front will feel is more conventional than that in the at the expense of outright control – but wise. than long-term appeal. In more recent reassuringly cocooned, those in the Pug, albeit that it is a TFT display with with the 3008, the chassis engineers Also consider that in this configu- times, French interiors have generally back have space to bask in, especial- rev counter circling a digital speedo. have hit a sweet spot. ration, the Koleos offers 4WD which taken on a harder edge doubtless in ly as the floor is almost flat. All the For me, the Pug’s interior looks the The ride is nothing less than bril- may well be a deal-breaker for those the interests of prolonging the life if usual items such as air con, cruise, plusher of the two but it’s also rather liant, providing occupants with a who spend a lot of time off-road. It interior fitments which in a few cases Bluetooth and electric windows are on too fussy in its execution so let’s call perfectly judged level of cushioning also just has the edge on space al- might be subjected to SUV-type use. board along with keyless entry/start this part of the contest a draw, espe- that’s complemented by decent iso- though I did not confirm this impres- The Peugeot dares to be different and auto tailgate. cially as passenger and luggage space lation of road-induced noises. Some sion with a tape measure. with loads of soft-touch surfacing but The Renault is altogether more in both is really good and equipment body roll is evident but it’s a small But for the more common urban/ too many surface finishes, not least a conventional inside, but it’s also nice- levels equally high. price to pay for the supple, controlled motorway operator, and especially grey fabric that adorns the door inlays, ly finished and kitted out with more Given space restrictions, I have not ride that’s responsible for creating a those that live at altitude, the Peu- for example. It does, though, succeed soft-touch surfaces than you might listed all the features available on these most pleasant loping feel on the open geot’s more resolved turbo engine and in looking rather plush with a layered expect. cars, so I suggest a visit to a website if road. The steering too is beautifully 6-speed auto gearbox make for a more dash design marked out by a config- The front seats are large and sup- you want absolute detail, but I will tell judged, offering just the right level of pleasant drive. urable digital i-Cockpit instrument portive with electric adjustment for you that the 3008 luggage capacity is assistance and a lovely fluid feel from On-paper figures suggest that all cluster (with reverse sweep rev count- both while space in the back is out- listed at 591/1670l compared with the lock to lock. out, the Koleos will hit 100 clicks er!) accompanied by an 8-inch central standing, albeit that the seat is shaped Renault’s 459/1690l. Both cars are Power is provided by a 1.6 Turbo fractionally quicker than the 3008 infotainment/nav display that’s diffi- for two. Be aware that rear three-quar- endowed with plenty of safety features four (121kW/240Nm) that allows for (9.8s v 9.9s), but real-world driving cult to master, and an array of metal- ter visibility is shocking owing to the including six airbags, ISOFIX mount- high gearing and relaxed cruising via tells a very different story as the Peu- lised piano-key switches. The tiny, use of very thick pillars. ings and a host of electronic aids. a six-speed auto box that does its job geot finds its torque sweet spot much squared-off steering wheel that effec- Keyless entry/start is on the menu DRIVING CHARACTERISTICS smoothly and decisively. Two driving earlier in the rev range. tively sits under the raised instrument along with electric windows, Blue- If you’ve been taking note, you will modes are offered – Eco and Sport – So, for me it’s a win for the 3008 display, and therefore feels almost as tooth, cruise and air con, but the Re- have seen the Peugeot rides on bigger but stick to the former as Sport mode but the Koleos still has lots of good though it’s in the driver’s lap, is an ac- nault’s wing mirrors do not fold. It too tyres which have a slightly lower pro- activates an awful artificial and obtru- things up its sleeve, not least space quired taste of dubious benefit. features an infotainment/nav screen file. That suggests it starts with a ride sive engine note and causes the gear- and off-road ability along with a Comfort levels are very high presented in a vertical format, but disadvantage but not this time, Mon- box to hunt unnecessarily. slightly lower asking price, even with thanks to generous seat padding – the the main instrument cluster viewed sieur. Pugs have always been known The brakes are powerful and that 4WD on board. The Financial Gazette May 30-June 5 2019 | Page S1

2019 Top 200 brands unveiled

mittee, Dr Eve Gadzikwa, told guests at the participating brands each year and the delegates Superbrands is an international concept that breakfast meeting that the Superbrand Awards the ceremony attracts. Branding is the essence was adapted in Zimbabwe by the Marketers As- had become the hallmark of business awards of every business’ success and I am excited that sociation of Zimbabwe in 2019. based on an authentic process that has been em- even local home grown brands and particularly The concept aims to identify brands that are braced by all sectors in Zimbabwe. with local names like Ingwebu, Zuva, Pfuko, performing above and beyond others within the “The perception of Superbrands continues to Nyaradzo to mention but a few are performing market. gain milestones as testimony to the number of well,” she said. To Page S2

MAZ board member Dr Musekiwa Tapera welcom- ing guests.

HE Marketers Association of Zimbabwe (MAZ) on May 16 2019 hosted a breakfast meeting for the Tlaunch of the 2019 Top 200 Superbrands. The Top 200 brands were unveiled at a glamorous event held at the Rainbow Towers graced by marketing executives and government officials. Superbrand is a concept that seeks to recognise and reward the best brands in the country with the finest reputation within a specified period of time. A Superbrand offers customers and other stakeholders’ significant emotional and tangible benefits over its competitors, consciously and subconsciously. For a brand to be deemed a Superbrand, it requires the consistent management of the company’s values, beliefs and product quality ― not just at the head office or factory but wherever a brand touches the consumer. The reputation and credibility of the Superbrand awards lies in its process. Brands under- go a thorough recruitment process by the consumers, followed by consumer rating (through a consumer research) and then an evaluation by the adjudication team. Only those brands with the highest scores from the consumer research are granted the Superbrand title. The process is audited by a reputable auditing firm, Grant Thornton. There are also adjudicators that oversee the process and these adjudicators are taken from various industry sectors, namely academia, consumer bodies and professional associations. Guest speaker at the Superbrand launch, Coca-Cola Company, Eastern Central Africa marketing programmes manager Vee Chibanda spoke on the importance of leveraging on brand sponsorship. Chibanda defined sponsorship marketing as financial or other forms of support in-kind of an activity, used primarily to reach specified business goals.. “It is a form of promotion, often considered public relations, where a firm provides support for an event, ven- ture, organisation, person or charity by providing money or other resources to obtain positive publicity,” she explained. She said for corporates to make it in the turbulent economic environment, they have to leverage on brand sponsorship although it may not yield instant results. Chibanda said corporates need to identify what the customers’ passion point is so that they can leverage to drive their objectives. She however warned that consumers tend to associate sponsors with the event they promote, hence it is important for corporates to select events that are appropriate to the product or corporate image. “Therefore, before signing up, check out how the show is perceived. Does it have an up-scale, classy image? Does it have a clean image, or is its reputation less than what it should be”? “Do not be associated with any event or cause without first determining if the sponsorship has the potential of having any negative effects on them. “In addition, the organisers should provide you with details like the target audience, media coverage plans, and what obligations you have as a sponsor,” said Chibanda. The chairperson of the Superbrands adjudication com- Page S2 | May 30-June 5 2019 2019 TOP 200 BRANDS SPECIAL FEATURE The Financial Gazette 2019 Top 200 brands unveiled

Superbrands adjudication committee chairperson Dr Eve OPC senior principal director ambassador Mary Mubi thanked MAZ Guest speaker, Coca-Cola Company, Eastern Central Africa Gadzikwa. for spearheading the publicity committee for the Dubai 2020 Expo. marketing programmes manager Vee Chibanda.

From Page S1 By definition, a “Superbrand” is a brand that has established the finest reputation in its field, offers customers significant emotional and/or tangible- ad vantages over its competitors, which (consciously or sub-consciously) customers want and recognise. Over the past years there have been questions of how brands have been classified into sectors. We have defined the Superbrand sector as a set of brands that are in direct or indirect competition with each other or serve a common group of customers. To be eligible these brands must satisfy the following characteristics of a Superbrand sector that is: 1. Superbrand sector is derived from the top 200 brands. 2. The sector must have a minimum of three brands. In recognition of brands without sectors in the Su- perbrand Top 200, MAZ has introduced special awards for the brands that have performed well. The overall research process is as follows: 1. The shortlisting of 200 brands ― The shortlisting of 200 brands for 2019 is done through a nationwide research and it was based on brand awareness. 2. Unveiling of the brands ― After the brand selection phase, the top 200 selected brands are then unveiled at the Superbrand launch. Before the unveiling of the brands, the adjudication committee has the chance to verify the shortlisting process and endorses the top brands of the year. 3. Field research ― After the unveiling ceremony, the 200 brands are taken back to the consumers for market research. Brands are rated according to the following variables: For business to business: a. Perceived market dominance b. Resilience c. Goodwill d. Customer loyalty e. Overall market acceptance And for business to consumer: a. Product/service experience b. Product/service accessibility c. Product/service pricing d. Product or service loyalty e. Product innovation 4. Adjudication of results ― after the consumer research, the results are presented to the adjudication committee for final verification and endorsements. In this whole process, right from the beginning, our auditors are involved. Last year they even dispatched a team to go into the research field to monitor the data gathering process. 5. Superbrand Awards ― After the adjudication phase, the final results are then presented at the annual Superbrand Awards Ceremony. Top 20 Business to Business (B2B) and Top 20 Business to Consumers brands are given awards. Sectoral leaders and their runners up are also given awards. 6. Superbrand report publication ― after the awards, a report is published profiling these top brands From the very beginning the consumer is very much a determinant factor in this research. It is the consumer who continues to be the backbone of the process. The research is nationwide, covering all 10 prov- inces. Target sample size is 3 000 (1 500 B2B and 1 500 B2C). This year’s research will continue with digital technology, which makes use of internationally recognised online research system. With the use of electronic gadgets, we will be able to manage inter- viewers’ movements in real time with the use of GPS tracking and location system, and optimise on desired reach. The online research system will also ensure that data is not reused for other unintended purposes; the App erases data after online uploading of the data. The Financial Gazette 2019 TOP 200 BRANDS SPECIAL FEATURE May 30-June 5 2019 | Page S3 2019 Top 200 Brands

1 Adam Bede 103 Nandos 2 Ad-Life 104 Nash Paints 3 Afdis 105 National Foods 4 Africom 106 Nedbank 5 Agribank 107 Nestle 6 Astra Paints 108 NetOne 7 AVIS 109 Newsday 8 Bakers Inn 110 Ngwerewere 9 Bally House 111 Nicoz Diamond 10 Banc ABC 112 Nissan Clover Leaf 11 Bata 113 NMB Bank 12 Beta Holdings 114 Novatek 13 Bon Marche 115 Nyaradzo Funeral 14 Bonaqua Services 15 Boom 116 Nyaradzo Group 16 Buttercup Marga- 117 OK Zimbabwe rine 118 Old Mutual 17 CABS 119 Olivine Cooking 18 Cairns Oil 19 Camphor Care 120 Omo 20 Cascade 121 One Money 21 Castrol 122 Pacific 22 CBZ Bank 123 Pannar Seed Some of the Top 200 brands on display at the 2019 Superbrand launch breakfast meeting in Harare. 23 Champions Insur- 124 Pearlenta ance 125 Pepsi 24 Chicken Inn 126 Pfuko 25 Chicken Slice 127 POSB 26 Chimombe 128 Power fm 27 Chloride Zimba- 129 Power Sales bwe 130 PPC 28 Choppies 131 Probrands 29 Cimas 132 Probrands Rice 30 Clere 133 Profeeds 31 Coca Cola 134 Proton 32 Colgate 135 PSMAS 33 Cresta hotel 136 Puma 34 Croco Motors 137 Puredrop Cooking 35 Daily News Oil 36 Dairibord 138 Quick Brew 37 Delta 139 Radio Zimbabwe 38 Dendairy 140 Rainbow Towers 39 Dendairy Milk 141 Red Seal Rice 40 DHL 142 Red seal Roller 41 D'lite Cooking Oil Meal 42 Domestos 143 Ricoffy 43 Doves 144 Roil Cooking Oil 44 Dstv 145 Royco 45 Dulux Paints 146 Safeguard 46 DuPont Pioneer 147 Samsung 47 Eat n lick 148 Schweppes Hold- 48 Ecobank ings Africa Limited 49 EcoCash 149 Securico 50 Econet 150 Seed Co Zimba- 51 Ecosure bwe 52 Elegance 151 Shumba Maheu 53 Engen 152 Silo 54 Europcar 153 Simbisa Brands 55 Everest 154 Softex 56 Eversharp 155 Spar 57 Exide Express 156 Spuds 58 Fanta 157 Stanbic Bank 59 Farai 158 Standard Chartered 60 Fawcetts 159 Star fm 61 FBC Bank 160 Steri Milk 62 Fedex 161 Steward Bank 63 Feedmix 162 Stork Margarine 64 Fidelity Life As- 163 Sun Jam surance of Zimbabwe 164 Sunlight Washing 65 First Capital Bank Powder 66 First Mutual 165 Surf Health 166 Swift 67 First Mutual Life 167 Tanganda 68 Food World 168 Tanganda tea 69 Freight World 169 Teechers 70 Freshpak Rooibos 170 Telecash tea 171 Telecel 71 Geisha 172 Telone 72 Gloria 173 Tendo Electronics 73 Gtel & Power Engineering (PVT) 74 Happy Sky Ltd 75 H-Metro 174 The Herald 76 Holiday Inn 175 The Sunday Mail 77 Huawei 176 TM Pick n Pay 78 Huletts 177 Topics 79 Hwange Colliery 178 Total Zimbabwe 80 Impala Car Rental 179 Toyota Zimbabwe 81 Irvines 180 Transerv 82 Jade 181 Trek Petroleum 83 Jet 182 Truworths 84 Kefalos 183 Turnall Holdings 85 Kefalos Milk 184 Unilever 86 KFC 185 Vaseline 87 Kwese 186 VIVON 88 Lacto 187 ZB Bank 89 Lafarge 188 ZBC TV 90 Life buoy 189 ZESA 91 Liquid telecoms 190 ZETDC 92 Lobels 191 Zi fm 93 Lux 192 Zimbabwe Power 94 Lyons Quench Company 95 Madison 193 Zimgold Cooking 96 Mahatma Rice Oil 97 Mazoe 194 Zimnat 98 Meikels hotel 195 Zimplats 99 Mimosa 196 Zimpost 100 Minute Maid 197 Zimswitch 101 Mirinda 198 ZLG 102 Moonlight Funeral 199 ZOL Zimbabwe Assurance & Services 200 Zuva Petroleum Page S4 | May 30-June 5 2019 2019 TOP 200 BRANDS SPECIAL FEATURE The Financial Gazette NMB establishes itself as top brand MAZ: The centre of MB Bank has once again been named and can be used to pay for bus fares with just a working capital finance, leasing and savings and marketing excellence among the country’s top 200 brands in tap and to purchase goods from tuckshops and investment options, all of which can help them the Marketers’ Association of Zimbabwe vendors. grow into formidable enterprises. N HE Marketers Association of Zimbabwe (MAZ) is Superbrands Awards selection process, demon- It can be topped up at any NMB merchant, Within the SME Banking Unit, there is a ded- strating that it is not only a top banking and finan- NMB Bank branch or via ZIPIT, Ecocash, KaG- icated women’s desk which looks after SMEs not only a hub for marketers but also a centre of ex- cial services brand but a popular national brand. wenya or any Zimswitch enabled point-of-sale that are owned or run by women.The bank has, Tcellence in terms of career and skills development. The bank has distinguished itself as a national device. It is available for everyone and does not through its innovativeness and outreach pro- MAZ offers a number of marketing related courses trendsetter and a brand that caters for the needs require one to have a bank account. There are also grammes, established itself as such a popular and and diplomas for its members to be up to date with mar- of Zimbabweans, which has contributed to its no monthly or transaction charges. well-recognised brand that it was among the best keting as well as digital trends. becoming a household name and trusted brand. KaGwenya, NMB’s mobile point-of-sale de- known brands identified in the initial Superbrands ZimChartered Marketer The bank has over the last year continued its vice, is so compact that it can be carried in a per- survey and has stood up to the rigorous process The ZimChartered Marketer programme is a presti- drive to bring into the NMB fold the huge num- son’s pocket or handbag, making it possible for through which the Marketers’ Association of Zim- gious marketing status that is accorded to marketing pro- ber of people who previously had no bank ac- vendors to accept electronic payments anywhere, babwe identifies the top 200 brands as part of the fessionals in and around Zimbabwe. counts at all. As part of this drive, NMB has taken even in the street. The device has a long battery Superbrands Awards selection process. The programme is done in partnership with Chinhoyi the bank to the people, through road shows that life that enables it to go for about a week before it Superbrand is an international concept that University of Technology, Bindura University of Science have pointed out the advantages of having a bank needs to be recharged. identifies brands that are performing above and Education, Midlands State University and the National account and of opening an entry level NMBLite NMB has not only attracted thousands of new beyond others in the market. The identification of University of Science and Technology. account. individual customers but has reached out to small Superbrands in Zimbabwe began in 2009 and has The programme addresses the need for marketing Recently, the bank launched the TapCard, and medium-sized enterprises (SMEs), holding continued every year since then. which, as the name suggests, only needs to be SME clinics in a number of centres around the A brand that is deemed a Superbrand is one professionals to be credible and results oriented. tapped against a point-of-sale machine to pay for country in an effort to encourage the growth and that has established an exceptional reputation This is also a platform for enhanced career prospects purchases. This saves time for the purchaser, the development of SMEs. within its field, offering tangible advantages and is an avenue for continuous personal development in cashier and those standing in the queue waiting At these clinics and through its SME Banking over competitors that its customers want and today's dynamic business environment. to be served. Unit, the bank offers financial advice and encour- recognise. To be acknowledged as a Superbrand It offers practical marketing exposure blended with The TapCard, which uses near field commu- ages linkages between small and large businesses. requires consistent management of a company’s relevant theory. It seeks to consolidate theory into practice nication (NFC) technology, does not require any NMB Bank has a wide range of banking values and the quality of its products, according through mentorship of a small to medium enterprise for network. The card is ideal for small purchases and financial products to assist SMEs, including to the Marketers’ Association of Zimbabwe. a one-year period. It seeks to expose one to the practical approach to marketing rather than being theoretical. The criteria for one to become a ZimChartered Mar- keter are a minimum of eight to 10-year broad practical marketing experience or a professional marketing degree or global equivalent in a marketing discipline that can be authenticated by an institutional authority and is recognised by the Marketers Association of Zimbabwe. The benefits of becoming a ZimChartered Marketer are that you will have the privilege of attaining a highly recognised marketing qualification in Zimbabwe and beyond. Digital Marketing This self-paced Digital Media and Marketing certificate is designed for individuals ready to expand their skills set in today’s internet driven market. It explores the several aspects of the new digital marketing environment and integrates them to current business operations. It includes modules like digital marketing analytics, social media marketing, search engine optimisation, mobile marketing, email marketing, content creation and blogging for business. The programme has two options, 1. Introduction to Digital Marketing, a six-week programme targeted at those who just need a basic apprecia- tion of Digital Marketing. 2. Certificate in Digital Marketing, a six-month programme targeted at personnel who need the practical day- to-day Digital Marketing activities experience. Facilitators are drawn from a pool of accredited resources endorsed by the Marketers Association of Zim- babwe. Enrolment for the July intake is in progress. Diploma in Public Relations The Professional Diploma in Public Relations and Corporate Reputation Management, in conjunction with Bindura University of Science Education, is a programme aimed at imparting and equipping students with knowledge and skills that will enable professionals to function in the public relations sphere. It enables effective and efficient management of Pub- lic Relations related issues, and helps adapt to PR and Corporate Reputation Management dynamics. To that end, the qualification is structured in such a way that will allow those in the industry to play a significant role in their respective areas. This diploma includes modules related to Psycholo- gy and Sociology, Media Studies and Liaison, Employee Relations and Events and Corporate Reputation Manage- ment. Enrolment for the August intake is in progress. Annual Continuous Professional Development (ACDP) 2019 (Winter School) The ACDP is a three-day programme meant to equip marketing practitioners and related professionals with marketing skills of current trends. It was previously known as the Marketers Winter School. This is an intensive training programme, in conjunction with the Institute of Marketing Management (IMM), which is meant to equip marketers with skills and knowledge that will transform their various organisations in the long run and is divided into two classes. The ACDP is divided into two classes, the Master Class A and Master Class B. The first Class (Class A) will be open to all marketers who desire to be accredited with the Marketing Practitioner Status (MPS) offered by MAZ in conjunction with IMM. The Master Class B is open to current MAZ accredited marketing practitioners; marketing directors, marketing managers, brand managers and marketing teams; business development managers, sales directors, sales managers and sales executives; public relations managers as well as customer service heads and customer service managers. Venue: Carribea Bay, Kariba Dates: 19-22 June 2019. The Financial Gazette 2019 TOP 200 BRANDS SPECIAL FEATURE May 30-June 5 2019 | Page S5

Nash Paints CEO Dr Tagarira Mutenga receiving the Nash Paints Award from MAZ board member Dr Musekiwa Tapera (left), last year. NASH Paints is among the Top 200 Superbrands for 2019. NASH Paints: 100% Zim company

ASH Paints is a 100 percent Zimbabwe owned company which has grown rapidly since its Nfounding in 2007, when the company started selling imported automotive paints out of a corner store at Chikwanha, Chitungwiza. The company has grown exponentially since then and has become a major player in the automotive industry, supplying paint and ancillary products to panel beaters, vehicle assemblers, transport companies and the like. Nash Paints went on to grow its product portfolio to include decorative paints, industrial coatings, furniture and wood finishes, as well as providing painting services. Between 2008 and 2019, Nash Paints grew its branch network. Outlets were opened in Bluffhill, Msasa, Gazaland, Mbare, Graniteside, Masvingo, Kwekwe, Gweru, Bulawayo, Mutare, Bindura, Chinhoyi, Maron- dera and Kadoma. 2018 saw the opening of new branches in Harare Street, Julius Nyerere Avenue, Rusape and Norton, as well as our main branch in Zambia. In 2019 we have opened three additional branches in Zambia and branches in Zvishavane and Chiredzi. Our Botswana branch will be opening in the second half of 2019 Nash Paints has taken advantage of mergers and acquisitions to grow the business. In 2010 the company acquired 75 percent of the shares in Eastlea Paints and in 2011 acquired plant and machinery from a Chinese company which had dissolved. This allowed Nash to start production on a small scale — four people would produce 10 000 litres of paint a month. Continuous investment has seen the company moving into larger premises with an increased manufacturing capacity which allows Nash Paints to meet the needs of Zimbabwe and the region. From a staff compliment of four, Nash Paints has grown to over 300 employees, headed by the chief executive Dr Tagarira Mutenga. The company was ISO 9001:2008 certified in 2017 and has since gone on to complete their ISO 9001:2015 certification in October 2018. This means that our customers and partners can expect steadfast commitment to customer service excellence and continuous improvement to products and services. For Nash Paints to have gained accreditation whilst expanding its business footprint demonstrates the commitment to quality and success in leadership that balanced achievement of multiple objectives. NASH Paints really is a Superbrand and we are proud to be associated with the Marketers Association of Zim- babwe and all the other Superbrands. Page S6 | May 30-June 5 2019 2019 TOP 200 BRANDS SPECIAL FEATURE The Financial Gazette Top 200 brands launch in pictures

Gillian Rusike, Marketers Association of Zimbabwe Joseph Nkani, MAZ business development manager. Roseline Chisveto, Turnall Holdings managing director and MAZ secretary- general. board member.

Alex Chishiri, Barkers Ogilvy Zimbabwe chief operating officer, and Alistair Carlisle, Barkers Ogilvy Zimbabwe Group chairperson and chief executive officer.

Adjudication committee judge Winnie Muchanyuka after receiving a hamper from Proton Bakeries.

Joseph Nkani, MAZ business development manager, and Pamela Gwanzura, ZAARF chief executive officer. The Financial Gazette May 30-June 5 2019 | Page S7 Page S8 | May 30-June 5 2019 SPECIAL FEATURE The Financial Gazette Polish universities tap into Zimbabwe market

IMBABWE is becoming a growing mar- that means we can keep our fees relatively low Poland, and our university of course, as a poten- ket for universities in Poland with locals as well. So that creates a very attractive equation. tial education destination because you get a lot Zincreasingly opting to study in that coun- “Great quality at affordable fees, pocket for less. You get the European experience, which try because of its low tuition costs and with the friendly fees. So that’s beneficial for the stu- is not different from other European countries country’s European Union membership increas- dents,” he said. but at more affordable prices,” Stefanek-Lang- ing its attractiveness, a visiting Polish university University tuition in Poland costs between ham said. deputy chancellor has said. US$1 500 and US$3 500 per year. A consultant with Study in Poland Africa, Dorota Stefanek-Langham, deputy chancel- Vincent Pol specialises in medically related Bright Mahwite, explained that Zimbabwe was lor for international studies at Vincent Pol Uni- programmes including Physiotherapy, Nursing, growing as a market because Polish degrees of- versity, told the media last week that they were Beauty Science, Sports Science and also Tour- fered a number of advantages for locals. bringing the Polish and European experiences ism and English Philology. “In addition to the affordable costs Zimba- closer to the Zimbabwean students. “We are hoping to get more students from bweans can also further their studies at local uni- “Poland is very unique because it is an up- Zimbabwe and that there is going to be growth. versities after completing their degrees in Poland coming and developing education destination. We know that Zimbabwe is a developing coun- and with Polish degrees they can work virtually This is because we have been a member of the try. You need well educated people with skills anywhere,” Mahwite said. European Union for the past 15 years which and that’s what we want to give young people Study in Poland Africa processes applica- means that we offer degrees that are recognised from Zimbabwe, skills. So that they come back tions, travel requirements including visas and in the European Union, Stefanek-Langham said. and work for the good of their own country to accommodation arrangements for students go- Study in Poalnd Africa consultant Chido Chikanza “But thanks to the fact that we do not use improve it, to make it better,” he said. ing to study in Poland. talks to Zimbabweans inquiring about studying in euros we can keep our costs relatively low and “I would want people in Zimbabwe to look at Poland.

15 year old Zac Dufty in action. Zim’s youngest drag racer

IMBABWE’s top kart racer, 15 year old Zac Dufty has recently created a lot of interest among Zthe drag racing fraternity with his very quick 14,2 second ¼ mile drag time achieved driving his Motul Pole Position Shifter kart. Dufty’s kart, weighing less than a hundred kilograms, is powered by a specially designed 125cc racing engine. He has been posting times amongst the top 12 fastest car times in the Sables Dragpro series. His 60 foot times are even more impressive, only 0.09 seconds off the pace of the mighty V8 Cobra of renowned drag racer, Terry Allbury. This places Dufty in the top 10 overall. Dufty “only” has a top speed of 137km, so the top competitors are faster at the end of the drag strip but a recent change of gearing should increase his speed and he is determined to drop his times to the 13 second bracket at the next meeting. Dufty relishes the challenge of competing against cars that have engines 20 to 30 times the size of his kart’s engine! With the engine screaming to 15 000 rpm between gear changes and the kart only 30 mm off the ground, Dufty says the sensation of speed is amazing and everything happens in a blur. Recently, Sables Dragpro Club invited Dufty to do some demonstration laps at Donnybrook main circuit to help promote kart racing and posted a best lap time of 1:18.9 which would have put him 8th fastest overall for the day, showing how amazing karting is! Dufty has been racing karts for over 10 years and at nine years old became the youngest kart racer to ever represent Zimbabwe at the Kart world finals. He is currently writing his O levels and travels to Cape Town in June for the next round of the highly competitive South African Rok national championship. The Financial Gazette May 30-June 5 2019 | Page 17 Column Designing pay, salary structures

HE classic pay philosophy is to provide salaries with a worthwhile potential to Ideally, your ranges should reflect being paid about right as long as the ranges that will attract and retain qualified employees control the salary bill. If broad your remuneration strategy reflect the true market position. Alternatively, Tand to motivate employees to direct their efforts banding is the focus, the ranges supported by market data. Funds if the compa-ratio is 79 percent for example, towards achieving the goals of the organisation. The of about 40 percent above and permitting, it is always advisable they are probably under-paid (unless some strategy by which this is achieved lies at the centre of below the mid-point salary will to set your ranges in line with other factor is at play). your remuneration strategy. The first step in the salary do. The broad banded structure market trends within a broad b) How to pay new employees? structuring process is the evaluation of all jobs in the accommodates jobs that have banding framework. Here you need to make judgments about organisation. slightly different market values Where do we get it wrong the value of their competencies along the The challenge most organisations face after job in the same grade .The salary in administering salary/pay pay range, and balance this with their salary evaluation is to come up with a credible pay structure ranges (%) will to a large extent structures? expectations. This is generally a judgement showing the minimum, midpoint and maximum salaries depend on your pay strategy HR Perspective a) The concept of compa-ratio call, because if you pay new employees too for each grade. This is where the battle is lost in most and the hierarchy of jobs in with Compa-ratio provides a ready much, you are storing up problems for later. cases as a pay structure is more than a neat table your company. Symmetrical Memory Nguwi guide to where an employee is Offer too little and they may turn you down, showing salary minimums and maximums. progression between different paid relative to the salary range or join you with some degree of residual How do you design your pay structure then? grades will be ideal in small companies. and to others. If the range is your defined resentment. There are several approaches to pay structuring. The Should ranges be the same width for all “market” for the job, (with 100 percent as bottom line though is that you need an empirical basis grades or job sizes? the midpoint, and a strategy that says we l Nguwi is an occupational psychologist for establishing any form of pay structure. Minimum The most common approach is for all want to pay our competent performers around and managing consultant with Industrial and maximum should be a function of your market for ranges to be of similar width though often this the midpoint) if their compa-ratio is around Psychology Consultants. He writes in his the positions in each salary range or grade, in line with is a matter of convenience rather than strategy. 100 percent you can confidently say they are personal capacity. internal equity and the company’s ability to pay. One makes decisions based upon breadth and relationship between midpoints. The midpoint is generally just the mathematical centre, and your pay strategy determines whether you are trying to target the competent performer at midpoint, or at some other point along the continuum. Traditionally, pay The challenge most structures are narrow, organisations face maybe a 20 percent “after job evalua- breadth on either side tion is to come up with of the midpoint, more a credible pay structure typical now the broad showing the minimum, banding effect brings this midpoint and maxi- span to 40 percent of the mum salaries for each mid-point. A lot depends grade. This is where the upon how flat or vertical battle is lost in most cas- your job hierarchy is. es as a pay structure is The relationship more than a neat table between midpoints should be representative showing salary mini- of the market differences mums and maximums.” between jobs clustered into the ranges rather than some neat and consistent mathematical gradation. Step 1 ― Pay policy: This is defined as the company’s decision on how its pay should be positioned compared with pay for similar jobs in other organisations. To determine your pay policy, you need credible information to be able to make an informed decision. Step 2 ― Salary surveys: The survey needs to report various statistical properties of the data, for example, means and the different percentile ranges. Check whether enough companies were surveyed to make a good sample. (at least nine companies to be able to generate meaningful statistical data). Step 3 ― Using market data: It is important to note that market figures are simply measures of what other companies are paying and do not indicate the level at which any particular company does or should pay. By the nature of a free market there are some companies that pay more and others that pay less. Armed with this kind of information the company now needs to take note of the market trends, but also to take into account the ability to pay. There is little benefit derived from overpaying non-productive employees. Step 4 ― Setting pay for several jobs: It is unlikely that you will get market data for all positions in your company. Assuming your job evaluation was done properly with market information for jobs in some grades, you can establish a mathematical relationship between average market pay levels for jobs in different grades normally using simple linear regression. Market trends can also be established through this process, thus allowing a comparison between company pay practice and its most relevant market. Using this information, the company is in a position to decide where its pay should be positioned. Step 5 ― The pay structure: Simple mathematical computations are used to calculate the minimum, midpoint and maximum salaries for each grade. Having obtained market data you now need to find out as a company, which percentile (e.g. 50th percentile, 75th percentile, 90th percentile etc) to use as the control point for your pay structure. The chosen control point becomes the midpoint for each grade in your grading structure. You then need to construct a pay range above and below the mid-point salary of each grade. The ranges are expanded by mathematically increasing and reducing the midpoint, and they are constructed to suit the needs of the organisation. The midpoint is the target area for fully competent employees. How wide should the ranges be? There is no value in constructing salary ranges that neither give employees an opportunity to get a noticeable increase in pay nor provide the employer May 30-June 5 2019 | Page 18 The Financial Gazette Column VAT issues on sale of a going concern

DISPOSAL of a business or part of a as a going concern (italicised yet a registered operator at the The written agreement(s) must, together with any other business capable of separate operations words appearing to be drafting time of the conclusion of the written agreements or documents relating to the sale, be Aby a registered operator as a going error) and has been carried on agreement, it is advisable that retained. The agreement need not necessarily form part concern is deemed to be a supply made in the in, on or in relation to goods the agreement provide for the of the arrangement under which the “supply of a going furtherance or course of the operator’s trade. or services applied mainly application of the zero rate concern” is made. Below is an analysis of the conditions The seller should account for output tax on for purposes of such trade or being subject to the purchaser that must be agreed in writing by the parties: the disposal, but with proper planning no VAT as simple of a trade, as the being a registered operator on The trade must be a going concern is payable, the disposal can be zero rated. case may be, and partly for the date the supply takes place, A business transferred must be a going concern before The purchaser would not need to finance the other purposes, such goods or and to furnish a copy of the VAT and immediately after the transfer. This disqualifies any VAT between making the VAT payment to services shall, where disposed certificate to the seller as soon as business that has actually ceased operation before the the supplier and receiving a VAT refund from of, be taxed at zero percent if it is available. transfer. It was held in Belton v. CIR (1997) 18 NZTC ZIMRA. We discuss the law on zero rating and the sale represents the disposal Tax Matters Agreement must be in writing 13,403 that there can be no going concern' where, on the the conditions that must be satisfied for the VAT of at least 51 percent of the with The parties must agree in day of the supply, the activity carried on by the enterprise to be avoided. trade or part of a trade”. We Marvellous Tapera writing that (i) the trade is has ceased. A short period of break or temporary closure The law and interpretation analyse the key conditions as disposed off as a going concern immediately after the transfer to facilitate the smooth A sale or transfer of a going concern is zero follows: and (ii) that it will be an income earning activity transfer or for purposes of cleaning and maintenance rated under s10(1) (e) of the VAT Act as read Seller and purchaser to be both registered on date of transfer. Where an agreement for the etc. does not, however, disqualify the sale as a transfer with s12 of the VAT General Regulations, 2003 The sale should be effected by a registered sale of a trade as a going concern was concluded of a going concern. The activities must be capable of (SI 273 of 2003), which provides that “subject transferor to a buyer who is also a registered before, on or after commencement date, but the continuing after the transfer to new ownership. The to proviso (ii) of paragraph (e) of subsection (1) operator. In order to safeguard himself from parties did not agree in writing that the trade transferee must use the transferred assets to continue with of section 10 of the Act where the trade or part incorrectly applying the zero rate, the seller is disposed of as a going concern they may the same kind of business of the transferor, if the nature of of a trade, as the case may be, is disposed of as a must obtain and retain a copy of the purchaser’s enter into a separate agreement ― based on business changes it ceases to be a sale of a going concern. going concern and has been carried disposed of registration certificate. If the purchaser is not the original contract ― regarding this aspect. Supply of an income-earning activity There must exist an income earning activity on the date the ownership of the trade is transferred. As transfer of the trade might take place only in the future, there can be no certainty at the time of signing the agreement and fixing the VAT inclusive price whether the trade will in fact be as an income-earning activity when transfer takes place. The parties’ intention to transfer an income-earning activity is thus sufficient. The agreement must provide for the sale of an income- earning activity and not merely a trade structure. The new owner must be placed in possession of a trade which can be operated in that same form, without any further action on his part. For this reason, an agreement to dispose of a business yet to commence or a dormant business is not a going concern. Assets necessary for carrying on trade must also be disposed Assets that are necessary for carrying on a trade must be disposed of by the supplier to the recipient for zero rating to apply. Where all the assets used by the registered operator in a trade, except the premises from which the enterprise is conducted, are disposed of, it must be determined whether the premises are necessary for carrying on the trade disposed of. The assets or things which are necessary for the continued operation may vary according to the nature of the trade and the thing supplied and each case must be treated based on its facts. Due to several rules needed to satisfy the requirements of a going concern, you will almost certainly need an advisor to guide you through the process. There are serious tax ramifications if the attempt to zero rate the transaction fails. The VAT will become due, penalty and interest certainly apply for failing to pay the VAT due on time. Meanwhile the Matrix Tax School will be hosting its Cross Border Taxes Seminar on June 20, 2019. l Tapera is the founder of Tax Matrix (Pvt) Ltd and CEO of Matrix Tax School (Pvt) Ltd. He writes in his personal capacity Alibaba plans to raise $20bn in second listing LIBABA Group is considering raising $20 billion via a second listing in Hong Kong A after a record-breaking 2014 New York market debut, according to sources with knowledge of the matter, a mega-deal that will bring China’s largest company closer to investors in its home country. The e-commerce giant is working with financial advisers on the planned offering, the sources said. Alibaba is aiming to file a listing application in Hong Kong confidentially as early as the second half of 2019, they said. A second listing is intended to diversify its funding channels and boost liquidity. The plans are preliminary and could change, the sources added. Alibaba raised $25bn selling shares on the New York Stock Exchange in 2014 in the world’s largest first-time share sale, after struggling to persuade Hong Kong regulators to approve its proposed governance structure. The city’s exchange finally gave the green light for dual-share classes last year, granting food delivery giant Meituan Dianping and smartphone maker Xiaomi Corp the right to issue stock with different voting rights. The move also comes as Chinese companies face an increasingly hostile US government, which has put several Chinese tech companies on a blacklist. This year, Chinese games-streaming giant Douyu postponed its IPO launch following market jitters over the trade war. Alibaba declined to comment. -Fin24 The Financial Gazette May 30-June 5 2019 | Page 19 Column Audit committee: Guard of the guardians LL renowned codes of governance from Cadbury annual integrated report with particular suitability as well as fitness of the financial to King IV converge on one fundamental duty of attention to: director/CFO. Athe board of directors. The board is ultimately lFactors that may predispose management Internal and external audits: This entails responsible for overseeing the establishment of effective to give a misleading picture; appointing the internal audit chief as well as systems of internal control in order to provide reasonable lAny evidence that brings into question the external auditors and overseeing their assurance that the company’s financial and non-financial previously stated information; performance to deliver on given mandates. objectives are achieved. lReview annual and interim financial Risk management: This committee is an In response to the litany of corporate collapses statements as well as results announcements; integral component of the risk management around the world, the audit committee has assumed lTest and authenticate the efficacy of all process of the organisation which empowers the gigantic importance of guarding both the vault as control systems in place; it to oversee financial reporting accuracy, well as the board, whose governance failures open the Executives Only Corner lConfirm reliability of the sustainability internal financial controls, fraud and IT organisation to abuse such as asset theft. Consequently, with disclosures to be included in the report. financial reporting risks. in some jurisdictions the audit committee is a statutory Shepherd Shonhiwa Combined assurance: To ensure that The foregoing demonstrates why the one prescribed by the Companies Act, with members combined assurance is applied to provide audit committee is given such a wide ranging appointed by the shareholders. This mainly applies to Responsibilities of the committee: coordinated approach to all assurance activities mandate and authority to pre-empt and detect public enterprises where the need for vigilance is greater They are detailed and extensive to enable regarding risks facing the business and more fraud by staff and management, making it than in the private sector. the committee to test all controls as well as importantly, monitoring the relationship truly the guard of the guardians. “This is for In all other environments it is a standing committee behaviours of those in control, including between external assurance providers and acting on my convictions while others wait,” of the board operating within its approved terms of the authenticity of the company’s annual management. said Ted Turner of CNN. reference. integrated report of the board. Finance functionaries: The committee l Shonhiwa is a chartered director (SA) Composition: The committee must comprise at least Integrated reporting: The committee reviews the expertise, resources and and has authored books on leadership. He three non-executive directors, the majority of whom oversees the compiling and issuing of the effectiveness of the finance functions and the writes in his personal capacity. must be independent. It is chaired by an independent non-executive director, preferably a public certified accountant. If there is a risk committee, its chairman becomes an ex officio member. The chairman of the board cannot be a member to ensure its independence. Due to its critical overall function this is the only committee for which professional skills and qualifications are specified including: l Internal financial controls l External and internal audit processes l Financial and sustainability reporting l Corporate law and risk management l Information technology governance l Financial and sustainability integrated reporting Administration: The company secretary serves it like other committees but the CFO plays a prominent role due to the highly technical nature of the work undertaken by this committee. This includes agenda and financial data preparation for meetings. Invariably the committee holds more meetings than others in a calendar year and the members are remunerated more than other committee members to compensate for their time input. Bitcoin extends run to highest level in a year

ITCOIN soared to the highest level in a year, extending a run that’s seen prices more than double Bsince March. The largest cryptocurrency climbed as much as 10 percent on Monday from levels late on Friday, and was trading at $8,847 as of 10:25 in Tokyo. Rival coins were also stronger at the start of the week. Litecoin added almost 9 percent and Ether, the second largest digital token, rose 6 percent. Crypto proponents are taking encouragement from a string of recent headlines showing greater interest in the space from mainstream firms. Fidelity Investments is finalising plans to buy and sell the digital asset for institutional customers, and E*Trade Financial Corp. is poised to allow crypto trading. AT&T said it will permit customers to use payment processor BitPay to settle their online bills. Bitcoin is up almost 70 percent this month despite concerns from JPMorgan Chase & Co strategists that its price may have surged beyond its ''intrinsic value'' ― a concept that not all agree applies to a digital currency. ''Easier to spend means a greater-use case and a greater level of adoption,” Mati Greenspan, senior market analyst at eToro, wrote in a note last Friday. "The tipping point is likely very close now." Bitcoin’s fantastic run this year follows a painful downtrend that lasted the majority of last year and saw the digital currency tumble more than 70 percent. Bulls are betting the run could continue as more institutions start to build out their own cryptocurrencies or launch projects using the underlying blockchain technology. "It takes two to tango. The more merchants that accept crypto encourages more people to adopt it and use it,'' said David Tawil, president of crypto hedge fund ProChain Capital. "That’s major." But the crypto meltdown is still fresh on many investors’ minds and not everyone is betting digital assets will become as widely accepted as enthusiasts hope. There are signs the rally is running too hot, wrote Bloomberg Intelligence analyst Mike McGlone in a note. Crypto transactions, for instance, have been lagging the broader rally, indicating caution for additional price increases, he said. - Fin24 Page 20 | May 30-June 5 2019 The Financial Gazette Column Can HR checkmate certain decisions? ORE often than not facilitators spend unchallenged or checked, performance of the critical for advancement of football. a lot of time telling managers what to business is affected. Human resources needs to It is not surprising that we are currently experiencing Mdo but less time telling them what not look out for such individuals as they not only serious economic challenges just because we have not to do. create divisions but also set a wrong precedence taken time to tap into the VAR concept. It is time for HR Most of the issues that managers need to stop which will be difficult to manage going forward. to highlight inept behaviour by errant management. It is doing revolve around interpersonal behaviour, The VAR effect: In football, questionable time for the powers-that-be to review processes at any level often leadership behaviour. These are the refereeing decisions are now checked by video where decisions are made to make sure that such decisions everyday annoyances that make workplaces assistance referee (VAR). Human resources needs are not advancing selfish interests to the disadvantage of Phil Chitagu toxic and unbearable. Such issues happen every to step up and challenge blatant questionable institutions. day and are transactional flaws performed by decisions to create harmony. Like VAR, decisions Cosmetic consultations: These are decisions made on one person against others as elaborated by Dr are so unjustified, not supported by reasoning that are not supported by laid down procedures the basis that there is a democratic process within the system Marshal Goldsmith in his handbook Getting You or prevailing laws so much that employees should be reviewed and appropriate action yet a decision would have been made, albeit unjustified There. Some of the observations by Marshal are view such a decision as favouring blue-eyed taken to correct deviations. We have seen VAR or illogical. Such process is not only a waste of time or also common in Zimbabwe. This article will also individuals. resulting in significant reversals or penalty shouts. resources but also shows the highest level of disregard and link the context to what Marshal has observed. Such decisions are not only divisive in the Business requires such VAR to bring a semblance disrespect for the proper consultation process. Leaders with There are lots of similarities: business but also create despondence and have of order to workplaces, otherwise organisations a know-it-all attitude normally fall into this practice. Such Biased and unjustified decisions: These are far reaching consequences. The scars may not will be left at the mercy of questionable decisions. practice frustrates employees, beside creating despondency suspicious, impartial and unjustified actions by be evident but the implication is huge. Even if We have seen situations where questionable within the system. When such actions are left to flourish, a powerful individual who might feel as being there are clearly defined rules and regulations, decisions by referees were reversed and such seeds of despondency are sown in the business. invincible. Normally, the background of a leader such an individual is prepared at any cost to usurp poor officiating being sanctioned by the powers- Rising to the occasion when morale has nosedived defines his or her behaviour. Some decisions such laid down procedures. If such decisions go that-be to correct the injustice. Such reviews are becomes a mammoth task. HR plays a significant role in ensuring that proper systems are in place to waterproof the organisation. There should very clear escalation procedures in the event that the VAR (HR) cannot handle the situation, which is viewed as blatant violations of standing procedures which has far reaching ramification on the business or institutions. Other examples of transactional flaws which may annoy other colleagues are: Winning too much ― The need to win at all costs and in all situations when it matters, when it does not and when it is totally beside the point. This action is meant to silence colleagues, particularly newly appointed ones. The approach kills creativity in the organisation. It also creates bullies. Passing judgement ― The need to rate others and impose standards on them even before listening to their side of story is not only bad but detrimental. Colleagues should be treated as adults who can make meaningful contributions to the cause of the organisation. Adding too much value ― This is the overwhelming desire to add one's three cents to every discussion. There is great need to apply emotional intelligence and act only when it is absolutely necessary. Making destructive comments ― Needless sarcasm and cutting remarks that we think makes is sound sharp and witty can be a source of disgruntlement among employees. There is need to be diplomatic. Do not add insult to injury. Every comment counts where there is work dynamism. Starting with a “no”, “but” or “however” ― The over use of these negative words/qualifiers, which secretly say to everyone, “I am right and you are wrong” can create a negative impression about the organisation. This destroys innovation in the business. Telling the world how smart we are ― The need to show people we are smarter than they think we are. Due consideration is needed before uttering certain things. The need to know the impact it has on the recipient is much more important than the message itself. Speaking when angry ― Using emotional volatility as a management tool. This moderates the adrenalin which is key to control anger. Emotions overshadow contributions and blur individual contributions. When one is angry, chances are very high that the contribution level will go down. Negativity or “let me explain why they will not work” ― The need to share our negative thoughts even when we were not asked. This has an effect of putting other people off rail. Some individuals perfect the art of defending for the purpose of defending based on historical information. They are deeply tied to history and the expense of viewing things differently. Withholding information ― The refusal to share information in order to maintain an advantage over others. This is dangerous for the organisation. If the person with critical information happens to leave, the organisation is exposed. It is imperative to know where critical information about the company is deposited. Intellectual property can be used to destroy the organisation if due care is not taken. Enhanced safety of information is therefore prudent. Failing to give proper recognition ― The inability to give praise when it is needed. Such attitude demotivates employees. Where employees go an extra mile, and above the call of duty, due recognition should be accorded. Some organisations implement reward and recognition for ideas that have significant impact to the business. Others implement what is called “My Idea” in which best contributions meant to improve efficiencies, productivity, profitability or cost reduction cost are rewarded. This is a big motivation for employees. Never take employees for granted. Despite the different level of competencies, they have something to contribute to the business. Some of the “oracles” have been in the business since inception and know every corner ― consult them. Making excuses ― The need to reposition our annoying behaviour as a permanent fixture so people excuse us for it. We have had people complaining that the environment is not conducive for proper business transactions even during normal environments. They have perfected the art of being cry babies. If a proper assessment of both internal and external environments were to be done, it would not To Page C12 The Financial Gazette May 30-June 5 2019 | Page 21 Column Boards and organisational performance

HE organisation’s ability to deliver against its mandate reports is key for effective lCustomer perspective; ― whether it is financial success and/ or success in the performance management. lInternal business perspective; and Tprovision of basic services such as garbage collection, lThis is achieved lLearning and growth perspective clean water, electricity, telecommunications, transportation, through communication Result? A balanced scorecard health and education ― is every board’s dream. This, how- of the company’s strategic Performance reviews ever, will not just come on its own like manna from heaven. thrusts and objectives for lThese are formal reviews of performance It takes deliberate effort by boards and sound performance the planning period to all against KPIs (An external expert can assist with management processes, sometimes with the help of expert concerned. a sample performance evaluation form). advice from consultants. c. Key Performance In- lIdeally happen twice a year; mid-year and This article is a high-level exposé of typical errors in dicators at the end of the year. strategic performance management, the typical performance lSetting of KPIs is a lResults in a performance rating. management cycle and provisions of the Public Entities Cor- key component of an effec- Consequence management porate Governance Act (PECGA) in relation to performance tive performance manage- Johnson Manyakara In a bid to build a high performance culture, management processes in public entities. The article focuses ment system – it answers ideally there should be appropriate consequenc- on performance management at board level and at senior the question “What is the – Measureable; es as follows; management level (i.e. the CEO and his or her direct reports). board, individual board members, the CEO and – Aggressive yet achievable; lSatisfactory performance: Attracting some Typical errors other members of senior management promising – Relevant; and form of reward (e.g. a performance bonus). Readers will be able to recognise the typical errors in per- to deliver in a given period?” – Timed and tracked lPoor performance: Initially attracting some formance management below. lThe KPIs are distilled from the company’s Balanced scorecard form of counselling and, if performance doesn’t a. No strategic plan in place. strategic objectives. It is recommended that the KPIs be organised improve, this may result in separation. b. Strategy not sufficiently clear/ known for translation lThe board must demand that the KPIs be around four distinct perspectives to “balance” the lManyakara is a board governance ad- into Key Performance Indicators (KPIs). SMART: previously dominant financial perspective with visor with Board Leadership Zimbabwe. He c. Insufficient communication resulting in limited under- – Specific and stretching; three other perspectives, namely: writes in his personal capacity. standing of business context, including strategic objectives. d. Translation of strategy into KPIs not properly done e.g. it is merely a cascade into functional structures without considering value chain/customer needs. e. Managers not using KPIs to actively manage the performance of individuals and teams ― KPIs not kept alive, the spirit being sheer compliance and not passion. f. Staff not expected to take full ownership and account- CONGRATULATIONS ability for delivery against KPIs. NEWLY ELECTED COUNCILLORS CRAFT PROPERTIES HOLDINGS g. No, or inconsistent, management of consequence, both OF THE ESTATE AGENTS COUNCIL OF ZIMBABWE for good performance and/or poor performance. Performance management cycle - a drill down a. Business planning; This is in the form of: l A Strategic plan ― a plan that sets the company’s stra- The Founder and Chief Execuve Oﬃcer , Management and Staﬀ of Cra� Properes (Pvt) Ltd a subsidiary of Cra� Properes tegic direction and strategic priorities; and Holdings wish to congratulate the following for being elected councillors of The Estate Agents Council of Zimbabwe following l An annual business plan ― a more detailed plan that the 2019 Elecons, is distilled from the strategic plan, by division/ department. b. Communication lAlignment between the board and board members, between the board and the CEO as well as the CEO and direct Nicodimus Kuipa (Board Chairman) Luke Mamba Lloyd Mhishi (Vice Board Chairman) Elvis Benhura Vodacom permit row Oswald Nyakunika Charles Manhiri Paence Munetsi-Patongamoyo Jaqueline Ndengu threatens to switch Gi� Mungazi

off DRC clients Please accept our warm congratulaons on this appointment and our best wishes for your success as you take up the responsibilies ODACOM’S unit in the Democratic Republic of and challenges during your term in office. Cra� Properes (Pvt) Ltd will connue to support the newly elected Board in all its Congo (DRC) will lose the right to provide 2G ser- endeavours. We are happy that Cra� Properes (Pvt) Ltd has grown to be a reputable company since 2008 and have managed to vices this week unless it renews a disputed licence, V establish a company called Cra� Properes USA LLC in Texas United States of America that specializes in Real Estate Business and according to a government order. The directive threatens to disconnect some of Vodacom provides the following services internaonally; Property sales and management, Project management and land Development, Asset Congo’s 11,8 million customers who’ve yet to switch to 3G Valuaons, Advisory Services, Supply of building and construcon materials, Appraisal Management, Construcon Risk and 4G, or live in remote areas not yet covered by the faster Management, Auconeers, Property Accounng services and Tenant /Buyer. Cra� Properes USA LLC will thrive to work hand in glove data services. Johannesburg-based Vodacom owns 51 percent of the DRC's biggest mobile operator, which generated with the newly elected board in bringing real estate foreign investors into Zimbabwe. Cra� Properes (Pvt) Ltd is now a fully registered about 6 percent of total revenue of R86,bn last year. supplier of goods and services to United Naons worldwide. Cra� Properes (Pvt) Ltd in Zimbabwe is working closely to assist the The DRC government wants Vodacom to reapply for a Government of Zimbabwe in the alleviaon of Housing shortages by undertaking two housing development projects in Kadoma 20-year 2G licence originally given to the company in 1998 because an “irregular extension” was granted in 2015, Tele- namely Holyland High Density Suburb and Greenfield Cherries Agro-Residenal Plots. communications Minister Emery Okundji said in an order dated April 29. Vodacom lost the right to offer 2G services Cra� Properes (Pvt) Ltd is also about to establish a Mega Solar Project in Zimbabwe that will be the largest solar plant in Africa with a in January 2018, Okundji said, giving the firm a one-month capacity to produce 900MW of power a day. This project is ancipated to be presented in Zimbabwe end of July 2019. Cra� Properes “grace period” to renew the permit. (Pvt) Ltd was awarded an Internaonal Business Licence in Oxford United Kingdom on the 18th of December 2018 by Europe Business Vodacom is engaging with the authorities “in an attempt to resolve this unfortunate situation,” spokesman Byron Assembly in accordance with United Kingdom Trade Marks Act 1994 and Europe Business Assembly awards regulaons. The rights to Kennedy said in a statement. this licence are granted for a period of three years to use the Trade Mark. This license permits Cra� Properes (Pvt) Ltd to operate Vodacom Congo “vigorously refutes all allegations of internaonally. Cra� Properes (Pvt) Ltd is now an Elite member of the World Confederaon of Businesses and its Founder and Chief fraud” in obtaining its licence extension from former Tele- Execuve Officer Mr. Kudakwashe Taruberekera was appointed the Head of Africa Region in World Confederaon of Businesses. Cra� communications Minister Thomas Luhaka in 2015, according to a May 16 statement posted on the company’s Face- Properes (Pvt) Ltd is set to aend various business meengs worldwide this year 2019 in its connued effort to contribute to aract book page. The process of extending the licence conformed foreign investors to come and invest in Zimbabwe. The secret behind the success of Cra� Properes (Pvt) Ltd is professionalism, honest with all laws and regulations in place at the time, including and hard work from 2008 to date. a single payment equivalent to 25 percent of the value of the licence ― or $16,3 million ― to the DRC Treasury, it said. Government decisions outlawing licence extensions and CONTACT US: Harare Branch outlining renewal procedures “on which the fraud allega- Head office Number 86 Selous Avenue, tions are based” were adopted in 2016 and 2017, according Number 7 Warwick Street, Local Government House, to the statement. “Legal orthodoxy requires that these new Kadoma, rules and procedures cannot apply retroactively,” the com- Zimbabwe Harare, Zimbabwe pany said. +2632682126656, +263 242250743, Luhaka didn’t answer calls and text messages seeking Cra� �roperes U.S.A LLC +263773276159, +263 773 761968, comment. Reg No. : 803260251 Okundji said the $16,3 million payment made by Vo- +263 732 276 159 +263 732 761968 dacom related to additional frequencies obtained from the Texas, United States of America Congolese authorities in December 2015, rather than an authorisation to continue operating 2G services. Unless the Website: www.cra�properes.co.zw, www.craftpropertiesholdings.co.zw Facebook: Cra� �roperes Twier @Cra�properes company takes steps to “regularise the renewal of the 2G licence” within one month, the frequency spectrum will be Housing Infrastructure Development Land Development and idenficaon for Commercial, Residenal and Agro-Residenal Project Management. returned to the state and then auctioned to a new buyer, he Holder of Internaonal Business Licence Registered Supplier and Service Provider of the United Naons Worldwide. said in the directive. Vodacom Congo will continue to operate 3G and 4G te- lephony services if it loses its 2G rights, Okundji’s chief of staff, John Aluku, said on Monday. The cost of renewing a 2G licence is $65 million, according to the ministry. - Fin24 Page 22 | May 30-June 5 2019 The Financial Gazette Column AI can be beneficial in right circumstances

RGANISATIONS need to think That said, I think every firm needs to other departments will relatively simple business models or those in stable, carefully about how state-of-the- adopt digital invoicing, which allows entry be able to slice and dice predictable industries should be able to get by with Oart technology tools contribute to to, and more efficient participation in, all sorts of historical spreadsheets or a commercial accounting package the achievement of company goals before local and global supply chains. This makes and real-time data for with basic data visualisation and analytics features. investing, says Cesar Bacani. it easier to then proceed to blockchain forecasting, analytics, To my mind, the organisations that would benefit Blockchain. Robotic process automation. ledgers, which allow authorised users to business insights, most from blockchain, AI and other sophisticated Artificial intelligence. Chatbots. Machine compliance and other (and expensive) technologies include multinationals learning. Virtual reality. Analytics. Business value-added tasks that and large companies with a presence in two or more intelligence. The barrage of fancy technology can confer a competitive markets, companies in regulated industries such as terms and concepts is continuing in 2019. No advantage. banking, companies with complicated ownership doubt new terms and products will be coined The deluge of data structures and strict financial reporting requirements, and hyped in the coming months. How is the can be too much for and those in ultra-competitive industries such as finance function supposed to make sense of a spreadsheets and human retailing, e-commerce, technology and services. constantly moving target? record invoices and other transactions on operators to handle, so Whatever the course of action, though, one One answer from the panel and roundtable a blockchain. These can be entered from it may make sense to deploy AI, machine technology that every company needs, in addition to discussions I have moderated over the years: different devices across geographies, but the learning, RPA and the like so finance digital invoicing, is a robust cybersecurity system. In you don’t need to. What CFOs must do chain is designed to constantly be verified professionals can analyse the data and the digital global economy, everyone is at risk from is be clear in their mind what the finance and updated in real time, so there is only one recommend courses of action. hackers and other dangerous actors. If CFOs have the organisation’s tasks are in relation to the single version of the truth. But for some CFOs, I would argue budget for only one technology, cybersecurity is surely company’s goals ― and then spend only When the blockchain ledgers are integrated that blockchain ledgers and sophisticated it. on technology that directly contributes to with ERP, performance management and analytics are not really must-haves. Reproduced with permission from ACCA’s Account- achieving those goals. other systems, the finance function and Single-geography organisations with ing and Business magazine accaglobal.com/ab. Can HR checkmate certain decisions? From Page C10 be surprising that the majority of our woes are within our control. We have to forget about things we cannot control and focus on those within our control. That analysis is key even for Zimbabwe. If we know what is within our control with certainty, and we can control that effectively, we can move on as a country. More often than not, we blame the external environment for our woes yet the majority of them are within our control. If the VAR system were used in business, we would have more opportunities from within than outside. This calls for us to go back to basics for the good of our businesses and the country. We should stop crying as this will not address our woes. We need to leap into action. Clinging to the past ― This is the need to deflect blame away from ourselves and onto events and people from our past; a subset of blaming everyone else. At times we do not move forward because we are so much entrenched in the past. Our mindsets are buried in the past that we even forget that we have an opportunity to use our past as springboards for shaping our future. We need to move on and move on with the agility that is required. The world is evolving every day and we have to benchmark with the best. We cannot be prisoners of our history. The past is buried and let us be positive about it and move forward. Playing favourites ― Failing to see that we are treating someone unfairly. There is need to pose and reflect to see if proper alignment has been done before taking the action. Certain actions tend to favour certain cliques but at the expense of the entire organisation. This is a dangerous path which can come back to haunt the organisation for the rest of its life. Success of the organisation depends on the people surrounding you. If the system is staffed with “yes people”, chances are high that they will not add value to the powers-that-be than just telling endless lies, particularly on progress. Some individuals are so aloof from realities on the ground and this has to end if envisaged results are to be achieved. Refusing to express regret - This is the inability to take responsibility for our actions, admit we are wrong or recognise how our actions affect others. Sometimes we want to defend a flawed process even if it is very evident that the chosen path will not take us anywhere. It is therefore critical to be accountable for our actions. Accountability is an art of effective leadership. The mentioned flaws are part of the many flaws which most organisations experience every day. The more organisations focus on addressing the mentioned flaws the better it is for the success of institutions or organisations. Like I said at the beginning of this article, facilitators take more time trying to teach managers what to do but not what to stop doing. It is therefore critical for organisations to invest more in addressing what managers should stop doing than what they should do. HR (VAR) should be able to detect some of the flaws on a daily basis to avoid allowing systems which give room to sowing seeds of despondency, divisions within the systems and poor economic performance throughout all sectors of economy. In conclusion, there is need to focus on what we should stop doing than what we should do. The past shapes the future and HR is well poised to play a VAR role as a strategy to improve the general performance of the organisation. lPhil Chitagu is the IPMZ vice president responsible for PR, research and customer care and writes in an individual capacity. The Financial Gazette May 23-29 2019 | Page 23 National News Mthuli optimistic on debt clearance Adelaide Moyo Business Reporter

INANCE minister Mthuli Ncube says Zimbabwe has adopted a sustainable Fdebt clearance path. Zimbabwe has struggled to service its foreign debts ― currently hovering above US$9 billion ― since 1999 when the southern African country defaulted on its obligations to multinational lenders such as the World Bank and the International Monetary Fund. Ncube told Parliament this week that the country has started making token payments to the World Bank and the African Develop- ment Bank (AfDB) as well as the European Mthuli Ncube Investment Bank. budget is concerned,” Ncube said. “We started last month and we will carry The former AfDB vice president said the on making these token payments in order to country will then go through three test dates, make sure we stay current not complete de- in July, September-October, in December, faulters,” he said. with the final report in January. “On the issue of an arrears clearance “So we are building up towards that ar- roadmap, we are working on that. The door rears clearance moment and our hope is that to arrears clearance is the staff monitored at the end when that report is given that’s programme (SMP) and I am pleased to say when we will trigger the clearance for the that we have been able to successfully con- World Bank and the African Development clude the three rounds of negotiations and Bank and, as you know, we are short of three visits by the IMF team and three visits about $1 billion within that,” Ncube said. by myself to Washington and my team.” he He added that although this will require said. some bridge funding, Treasury will source Under the SMP, Zimbabwe’s economic some for that to be effective. targets and policies would be monitored by Although the IMF has applauded Ncu- IMF staff. be’s reform efforts, its spokesman Gerry “So if you look at the roadmap itself, the Rice said the country is still a long way away first order of business was to get the cred- from qualifying for fresh credit. itors to accept the Transitional Stabilisation “We think the policies, to answer the Programme (TSP), which they did, and they question, the policies of the new adminis- have endorsed it as a credible economic re- tration under the Zimbabwe Transition and form agenda. The second stage was to be Stabilisation Programme, do constitute a accepted on the SMP programme and we comprehensive stabilisation and reform ef- can tick that second box. And the third area fort to address Zimbabwe’s macroeconomic is that we meet all our targets as far as our situation,” he said. [email protected] Page 24 | May 30-June 5 2019 The Financial Gazette National News

Clara Mlambo Resigned BAT boss speaks out

Paul Nyakazeya brands since their launches almost 40 Group Digital Editor years ago.” “On the sales front an automated sys- UTGOING British American To- tem was launched which now enables bacco Zimbabwe (BAT) manag- sales representatives to invoice electron- Oing director Clara Mlambo says ically at the time of sale. This now pro- she was not ‘pushed out’, contrary to vides BAT with real time sales data on a market perceptions. daily basis across the country resulting in Mlambo announced her resigna- improved efficiencies and customer and tion on Monday, in a development that consumer insights,” she said. rocked the markets especially coming a Mlambo — one of the few women to few weeks after the tobacco processor re- head a publicly listed company in Zim- ported a commendable set of results for babwe — said it was critical for leaders the year to December 31, 2018. to groom their successors and exit when “There is myth that managing direc- still at the top of their game. tors or chief executives generally only “Leave when you are on a perfor- leave companies through retirement, mance high, when your light is shining, retrenchment, being fired or death,” she when you have currency and many op- told The Financial Gazette. portunities and experiences are open to “That myth is not true. Unfortunate- you in the market both locally and inter- ly when a managing director willingly nationally. resigns the market perception tends to “One must constantly challenge one- be that they were forced or pushed out. self and be open to new experiences, es- In my situation this was not the case. I pecially outside one’s comfort zone.” willingly resigned and in fact my star “This is how you grow as a person was shining brightly in BAT. The BAT and as a leader. Although I have worked Zimbabwe board can attest to this. So the for BAT for 21 years, I have lived in four question then is why did I resign?” different countries (Zimbabwe, Ken- Mlambo, who was appointed BAT ya, South Africa and Zambia), worked managing director in 2016, said the best across 30 different countries in Africa time to leave an organisation was after and held different positions within BAT,” achieving or exceeding what one would she said. have set out to achieve. Mlambo, whose resignation is effec- “BAT Zimbabwe’s performance over tive June 30, 2019, joined the compa- the last three and half years has been out- ny as a management trainee and went standing and I can proudly say that as further to hold the positions of head of a team we achieved what we set out to brands, head of trade and marketing achieve and in many instances even ex- manager in Zimbabwe. ceeded expectations.... the company per- She was later seconded to BAT South formance results speak for themselves,” Africa where she was initially cluster she said. manager grocery responsible for the During her tenure at the help, BAT’s Spar, Pick n Pay and Shoprite accounts. profit attributable to shareholders grew In 2009, Mlambo was promoted to by 75 percent from US$8,477 million to area head of brands sub Saharan Africa US$14,8 million. and later area head of brands East and Volumes grew by 27 percent with Central Africa area based in Kenya. growth on Everest and Ascot during this From September 2011 to December period while net revenue grew by 25 per- 2013, she held the position of head of cent from US$34,1 million in 2016 to marketing for the BAT Southern Afri- US$42, 7 million in 2018. can markets cluster, following which she Total taxes rose by 31 percent was appointed managing director of BAT US$32,5 million in 2016 to US$42,5 Zambia until her appointment as manag- million in 2018. ing director of BAT Zimbabwe in 2016. “On the portfolio front exciting “Unfortunately at this point I cannot changes were made to Everest packag- disclose where I will be moving to but it ing and Madison packaging and stick. will be in the public domain very soon,” These were the first changes made to the she said. [email protected] The Financial Gazette May 30-June 5 2019 | Page 25

Tourism operators upbeat, despite crisis

IMBABWE’S tourism industry has been touted as a low hanging fruit, with potential to significantly con- dustry and how accessible is it? es related to repatriation of funds to foreign airlines. tribute to the country’s economic turnaround. Authorities have set ambitious targets of attracting 2, 8 mil- WM: There is one sitting with the central bank at The reason has been the outstanding debt of plus or lion visitors – equivalent to US$1,3 billion receipts – this year. However, rising inflation and an increasing- the moment, but it is in RTGS$. It is very accessible, minus US$180 million that the central bank has been Z but the challenge that the industry faces is that if they struggling to pay. The debt has been ring fenced, so ly tough operating environment are threatening viability and growth of many tourism players. To find out the get the RTGS$ it will also be difficult to get the foreign it will not lose value and the airlines continue to be state of affairs in the sector, The Financial Gazette’s business reporter, Nelson Gahadza (NG), interviewed Winnie currency and won’t be able to fund capital projects. paid periodically until it is cleared. But after the Feb- Muchanyuka (WM), the Tourism Business Council of Zimbabwe president. Below are excerpts of the interview: Projects usually require importation of equipment. ruary monetary policy, most airlines have moved to NG: What are the challenges you are facing as tourism come development considering the airlines have been What is key for the industry is a foreign currency ticketing in US dollars and that has allowed them to industry? increasing their flights to Victoria Falls. Also, the based revolving fund and we are engaging the au- continue in business. WM: One of the challenges from the beginning has been the Harare International Airport has been renovated, and thorities on that. Also, since we are a foreign currency NG: What is your projection of the tourism in- issue of liquidating our accounts within 30 days. Something that this is in preparation for the anticipated rise in tourist earner, we will be able to repay in hard currency. We dustry for 2019? is unique to the tourism industry is that we receive payments in arrivals. So, from that perspective, we have been im- need a foreign currency denominated fund. WM: The tourism industry will still do well this advance. So, someone could pay you in March and then travel proving the infrastructure and facilties, and if we can NG: How is the airline industry performing year. The operators are upbeat, making sure the num- in August, and the services are then billed in September when carry on that trajectory, the industry can do well. amid grave concern over repatriation of funds? bers remain in the positive trajectory. They are also they travel. So, we are holding the funds for longer than the 30 NG: Is there a revolving fund supporting the in- WM: For a while, we had experienced challeng- finding ways to encourage domestic tourism.■ days. However, after engagement with the Reserve Bank of Zim- babwe, we were given a special dispensation where the funds are held there until such a time the funds have been receipted. As a result, we have been able to continue in business, otherwise it would have been difficult for us to continue in business, because the funds would have been liquidated into RTGS$. It would be difficult without the foreign currency. It is one of the ways the industry has been protected. The other issue has been that of the two percent tax on electronic transactions. It really became a complication as you know we act on behalf of each other. Travel agencies work on behalf of airlines as well as hoteliers. As the funds move, they lose value through that two percent charge. But although some players in the industry have been given exemptions, there are still others, including individual operators, which are engaging to also get these exemptions. So as much as the policies come out, we have been able to engage authorities NOTICE TO SHAREHOLDERS in the Finance ministry and the RBZ and they have been able to understand the situation we have in the sector and to get necessary exemptions. NG: How are government policies affecting pricing and Notice is hereby given that the forty-fourth Annual General Meeting of the members of Masimba Holdings Limited for the packaging of tourism products? year ended 31 December 2018 will be held at the Registered Office of the Company, 44 Tilbury Road, Willowvale, Harare, WM: To say specifically that certain policies have had effect on pricing may not be a true reflection, but generally, tourism is Zimbabwe, on Friday 21 June 2019 at 1230 hours. at the bottom of the value chain. Whatever you are adding on to your product has already been compounded in some other 1. ORDINARY BUSINESS instances. However, the issue of pricing really does affect the 1.1 Approval of Financial Statements and Reports tourism products. Sometimes they may even come across as very To receive, consider and adopt the Annual Financial Statements for the year ended 31 December 2018, including expensive and may not sit well with certain sectors of the econ- the Directors’ and Independent Auditors’ reports thereon. omy. By the time you put together a meal, the eggs price would 1.2 have gone up, baked beans, bacon, and bread. We have no choice Approval of Directors’ Fees but to provide a meal in the hotel. Approval of Directors’ fees for the year ended 31 December 2018. NG: Does the current tough environment allow for growth 1.3 Election of Directors of the tourism sector? In accordance with Articles 114 of the Company’s Articles of Association, Mr Paddy Tongai Zhanda and Mrs Agnes WM: As an industry we are fortunate that part of our products Makamure retire by rotation at the Company’s Annual General Meeting and being eligible, offer themselves for are billed in foreign currency. This has allowed some stability. To re-election. The Directors will be elected by separate resolution. some extent, the bulk of tourism products are paid for in foreign 1.4 currency. Dividend NG: Do you think the tourism industry has adequate in- To confirm the declaration of a final dividend of RTGS0.35 cents per share for the year ended 31 December 2018. frastructure to accommodate envisaged growth in arrivals? 1.5 Auditors WM: The infrastructure that we have at the moment is ade- 1.5.1 To approve the remuneration of auditors for the previous year. quate, but what is needed is to refurbish it to bring it in line with 1.5.2 To consider the appointment of Grant Thornton as auditors for the ensuing year. international standards in order to provide value for money. In _3023 some instances, we have been quoted as being expensive as a 2. destination in the region and it is really because of the cost of EXTRAORDINARY BUSINESS doing business and the cost of funding to be able to refur- 2.1 Resolution on Electronic Communication bish the establishments that we have. That due to the automation and technological developments, the Directors of the Company be and are hereby Hence, we have been lobby- authorised to amend the communication to members as detailed hereunder: ing government to give 2.1.1 Any notice required to be sent to members may, notwithstanding anything to the contrary be sent by us rebates such as for electronic means to the electronic address last furnished by such members. operators to bring in 2.1.2 vehicles duty free and Electronic copies of the Report of Directors, Statements of Financial Position, Profit or Loss and Other certain subsidies for Comprehensive Income, Changes in Shareholders’ Equity and Cash Flows and all other documents required certain products that to be annexed thereto publicised on the Company’s website and delivered by electronic means to every hotels might need member shall be deemed to be sufficient delivery to members. Provided that should a member request a hard to develop. But copy of the Report of Directors, Statements of Financial Position, Profit or Loss and Other Comprehensive overall, the current Income, Changes in Shareholders’ Equity and Cash Flows and all other documents required to be annexed infrastructure is adequate. We have thereto from the Company, the documents shall be provided to the member in hard copy format. a new airport ter- 2.1.3 Any other documents that may be required to be sent to members in terms of these articles or of the minal in Victoria Companies Act [Chapter 24:03] may be sent to the electronic address of the members and shall be posted Falls, which ca- on the Company’s official website. ters for wide body air- craft and By Order of the Board that has been MASIMBA CORPORATE SERVICES (PRIVATE) LIMITED a wel- (Secretaries)

30 May 2019

Note: A member entitled to attend and vote at the Annual General Meeting of Shareholders may appoint a proxy to attend and speak and, on poll, vote in his stead. A proxy need not to be a member of the Company. Forms of proxy must be lodged at the Registered Office of the Company not less than forty eight (48) hours before the time of holding of the meeting.

Directors: G. Sebborn (Chairman), C. Malunga*, M. W. McCulloch, A. Makamure*, M. M. Di Nicola, P. T. Zhanda (Jnr.) ) (*Executive) Registered Address: 44 Tilbury Road, Willowvale, Harare, Zimbabwe Website: www.masimbagroup.com Page 26 | May 30-June 5 2019 The Financial Gazette The Financial Gazette May 30-June 5 2019 | Page 27 Page 28 | May 30-June 5 2019 The Financial Gazette National News Flawed govt policies driving illicit flow

Omega Ukama billion export earnings was still being FURTHER CAUTIONARY STATEMENT Business Reporter kept “offshore”. While another $400 million was RESIDENT Emmerson Mnan- outstanding from the January to May Further to the Cautionary Statement published on the 7th of May 2019, the Directors of ZimRe Holdings gagwa government’s flawed 2019 exports. Limited (ZHL) wish to advise its Shareholders and members of the public, that the Company, is currently Ppolicies around the flow and ex- He said exporters were also keep- change of foreign currency have been ing $800 million in local foreign engaged in negotiations that involve a potential transaction at subsidiary level, that may have a material blamed for illicit financial flows out of currency accounts. According to the impact on the Company’s share price. Zimbabwe. southern African nation’s laws, export- This comes as Treasury this week ers have 90 days to repatriate earnings. The Directors therefore advise the Shareholders of ZimRe Holdings Limited, and the public, to continue to pointed the finger at exporters, accus- “For this system to work, it starts exercise caution and to consult their professional advisors when dealing in the shares of the Company. ing them of keeping US$900 million with a willing seller because if you of their earnings in offshore banks – start with a willing buyer, the market money which it says should be repa- becomes inefficient and to enhance the By order of the Board triated to ease the dollar shortages and operation of the interbank market we help stabilise the exchange rate. are encouraging the sellers to come to George Guvamatanga Christopher Mugaga, the Zimba- the market,” Guvamatanga told legis- bwe National Chamber of Commerce lators. chief executive, said government Sifelani Jabangwe, the Confeder- L Madzinga er on the market if this does not hap- should “not be surprised” by the latest pen no one will come to the market,” ation of Zimbabwe Industries’ outgo- Group Company Secretary development. he said. ing president concurred with Mugaga “In fact, there is probably more The economist said the “surrender saying exporters “have generally been 28 May 2019 than the US$1 billion that has been requirements are unproductive and the avoiding expediting export remittanc- talked about, but government should 30 day policy is practically a violation es because of the policies around for- not be surprised because it is a reflec- of ownership rights”. eign exchange”. tion of how business is interpreting the “There’s quite a lot of hard cur- “So you would find that a lot of ex- toxic climate in Zimbabwe,” he told rency that could provide liquidity in porters have been using up the entire The Financial Gazette. the market but it is being chased away 90 day period hoping and waiting for “Business is not interested in the 30 by these policies. Even with diaspora the conditions to be relaxed,” he said. day foreign currency surrender policy remittances, people are using buses, “But we hope that things will and they are not interested in the reten- Homelink is now a white elephant,” change now that the central bank has BN Kumalo (Chairman), M Haken, J Maguranyanga, I Mvere, HWB Rudland, C von Seidel, E Zvandasara, S Kudenga* (*Executive) tion ratio policies. Government simply Mugaga added. asserted that it is committed to will- needs to liberalise the supply side of ing-buyer willing-seller position on the HEAD OFFICE: Block D, 2nd Floor Smatsatsa Office Park Stand Number 10667, Borrowdale Harare, Email: [email protected] Website: www.zhl.co.zw Treasury secretary George Guva- the forex market. They should allow matanga this week told parliament that interbank market,” he said. proper willing-buyer and willing-sell- $500 million out of last year’s $4,3 [email protected]

ForFor the the week week ending ending 13 29 March May 20192019

For the week ending 13 March 2019 The Financial Gazette May 30-June 5 2019 | Page 29 National News Zim not ready for Africa free trade Tabitha Mutenga when you look at the state of our industry, what it means is that we are not in a posi- manufacturing is said to be the key to Africa’s long-term Features Editor our value chains are not in shape, we are tion to favourably compete given the state growth. not ready to compete favourably,” he told of our manufacturing sector, which we Mubvuma said Zimbabwe’s merchandise and service IMBABWE does not have capacity to join and delegates attending a Business Dialogue know is in need of sustained retooling and trade was in deficit because of structural shifts, which af- compete favourably within Africa’s largest free on the AfCFTA agreement organised by a lot of technology transfer before we can fected the value chains — especially the agriculture in- Ztrade area, the central bank has warned. Konrad Adenauer Stiftung Zimbabwe and compete favourably,” he said. dustry value chain. This comes as the African Continental Free Trade Global Shapers in Harare last week. “That structural shift in our export Kuda Chigiya, Proplastics’ chief executive, who was Area (AfCFTA) — which has the potential to create a sin- Mubvuma noted that Zimbabwe lost basket, can also be reflected in the - cur one of the panelists at the meeting, called on both govern- gle African market of over one-billion consumers with a close to a decade of economic perfor- rent status and structure of our balance ment and industry to work together to address the internal total gross domestic product (GDP) of more than US$3 mance from 2000 to 2008 as the economy of payments because every time we talk fundamentals. trillion — is expected to come into effect this week. is estimated to have shrunk by 50 percent of foreign currency shortages it’s because “Short term goals; we cannot expect to be competitive This trade agreement, which will make Africa the larg- in GDP terms and during that period there when you look at our current account of now but in the medium and long run. Long term capital est free-trade area in the world, was given the go ahead on was a structural shift in the country’s ex- the balance of payments, the only account investments are required for the manufacturing sector to April 29 as 22 countries have now ratified its adoption. port basket. you will find in surplus is the secondary be competitive,” he said. Tawanda Mubvuma, the Reserve Bank of Zimbabwe In 1993, the manufacturing sector con- income account, which constitute the re- Chigiya said for Zimbabwe to increase its exports, principal economist, said while the central bank was sup- tributed 41 percent to the export basket as mittances, transfers to non-governmen- there was need to address the internal fundamentals portive of trade liberalisation agenda under the AfCFTA well as the agriculture sector. However in tal organisations and other organisations first, adding that both the private and public sector had and was positive that in the medium to long term, Zimba- 2018 both sectors contributed less than 20 serving households, but that is unsustain- a systematic contribution towards the destruction of the bwe will be able to benefit from the process, the country percent. able.” country’s economy over the year, and both should work was not yet ready. “What it tells you is that our export The AfCFTA is about creating a larger together to revive the economy. “We are alive to the reality of our current situation, basket is predominantly raw minerals and market in manufactured goods at a time [email protected] Ruzvidzo tipped for CZI presidency NOTICE OF ANNUAL GENERAL MEETING 2019

Paul Nyakazeya Group Digital Editor

ICHMOND Fur- nitures managing Rdirector Henry Ruzvidzo is today expected to be elected the new Confederation of Zim- babwe Industries (CZI) president when the organisation holds its annual NOTICE IS HEREBY GIVEN THAT THE 87TH ANNUAL GENERAL MEETING general meeting (AGM) in Harare. Henry Ruzvidzo OF THE SOCIETY WILL BE HELD AT THE HARARE INTERNATIONAL The Financial Gazette CONFERENCE CENTRE (HICC) ON FRIDAY 27 JUNE 2019 AT 1000 HOURS is reliably informed that Ruzvidzo will take over the reins of Zimbabwe’s largest business organisation from outgoing Sifelani Jabangwe who has been at the helm since 2017 when he succeeded Busisa Moyo, the United Refineries AGENDA chief executive. To read the Notice convening the Meeting. Walter Chigwada, the managing director for Zimplow’s 1. subsidiary Mealie Brand and Joseph Gunda, General Belt- 2. To confirm Minutes of the Special Annual Meeting held on 21 May 2015 and to deal with matters arising ing’s general manager, are set to be appointed as CZI vice presidents therefrom. nd The industry’s mother body’s 62 AGM is coming at a 3. To confirm Minutes of the Annual General Meeting held on 27 June 2017 and to deal with matters arising time when the country’s economy is haemorrhaging at an alarming rate, with experts saying that all key indicators therefrom. suggest a very challenging future for both businesses and 4. To receive the Chairman’s report on the activities of the Society since the previous Annual General Meeting. hard-pressed consumers. The International Monetary Fund recently projected that 5. To receive and consider the Audited Financial Statements for the year ending 31 December 2018 Zimbabwe’s gross domestic product will shrink by 5,2 percent this year — down from its initial growth forecast of 6. To approve the remuneration of Directors for the past year. 4,2 percent. The gloomy outlook also comes as CZI has forecast that 7. To approve the remuneration of Auditors for the past year. industry capacity utilisation will further decline to 34,3 percent this year down from 2018’s 48,2 percent. 8. To confirm Grant Thornton as the Auditors for the current year. Reserve Bank of Zimbabwe governor John Mangudya, To consider any other business notice of which was given in writing 21 days before the date of the Meeting. who will be the guest speaker at the AGM, is expected to present a paper on “Making the foreign exchange interbank market effective.” Please Note Analysts said it was a timely topic coming at a time the exchange rate on the parallel market and interbank is rising Members may upon request, inspect in loco, the Society’s Audited Financial Statements from the Head due to foreign currency shortages, arguing that addressing Office: PSMAS House, 47 George Silundika Avenue, Harare. the supply side would stabilise rates. Other issues expected to be discussed at the AGM are BY ORDER OF THE BOARD sustained reforms to improve the ease of doing business in the country. According to the World Bank Doing Business rankings, Zimbabwe is number 155, which is a significant improvement from 2015 when it was ranked 171 out of 190 econ- omies. T. N. H. KAPUMHA (MR) Members are also expected to talk about the fuel situation, electricity generation and foreign currency availability. MANAGING DIRECTOR Mangudya early this month said the country’s economy is expected to improve in the short term due to new government policies. “We are in transition to a stable economy and a stable economy is required for purposes of increasing growth,” he said. “The economy is expected to adjust soon from the recent fiscal and monetary policy measures. We have done very well under circumstances which are so difficult. As a nation we have been shaken by policy measures we have adopted, but they are for a good cause to a permanent stable solution. A super structure which is strong to expand the economy.” @PSMASZim www.psmas.co.zw PSMAS Zimbabwe Clifford Sileya, CZI’s chief executive, said he will also be resigning at today’s AGM to pave way for new blood to take the organisation forward. [email protected] Page 30 | May 30-June 5 2019 The Financial Gazette National News Govt drafts subsidy policy NetOne introduces Tabitha Mutenga supply at affordable prices. new data bundles Features Editor Guvamatanga noted that before the transport subsidy passengers were forking out $16 a day ETONE, Zimbabwe’s second largest mobile net- OVERNMENT says it is crafting a subsi- on a two-way trip, but since the introduction of work operator, has introduced new data bundles, dy policy aimed at supporting vulnerable the subsidy passengers were now using $2 a day Na month after streamlining its flagship brand One members of society. or even less for transport. Fusion. G This comes at a time when there’s an outcry from sub- George Guvamatanga, the Finance ministry “The issue now with the subsidised urban secretary, said while government is currency sub- transport system is to increase the number of scribers across the country after all mobile operators in- siding a number of sectors such as fuel, electricity buses, ensure that there is an efficient ticketing creased their tariffs. and transport, and millers and farmers, there was system and ensure that the buses run throughout James Mutizwa, NetOne’s board chairman, said the in- need for a comprehensive policy. the day because in some areas, the service is dis- troduction of the new offering — Night Bundle — address- “We are in the process of finalising a subsidy continued at 2200 hours,” he said. es customer needs to access the internet at affordable rates. policy for government and our view is that subsi- The former Barclays Bank Zimbabwe man- “The new packages have been necessitated by the need dies should be quantified, budgeted for but more aging director said the current policy targeting to give customers value for their hard earned money, in the importantly they should be targeted,” he told Par- transportation was sustainable as it had been current economic environment,” he said. liament this week. George Guvamatanga quantified and budgeted for. “NetOne is continually evolving and developing cus- “The targeting of subsidies explains the gov- “We know exactly what it is going to cost us tomer centric products that will be benefit the majority of Zimbabweans from all walks of life. All our products and ernment’s current move on the price of fuel, our society by simply reducing the ZUPCO bus and how we are going to fund it, meaning we services are available through our mobile financial service which will actually translate to other utilities in transport costs,” Guvamatanga said. have budgeted for it. We are very much aware platform, One Money…and through conversion of air- due course. In fuel we have removed the dis- Subsidies are not peculiar to Zimbabwe only of the issues surrounding subsidies but we are time.” tortions, we have removed the arbitrage oppor- as they are used around the world to guarantee a working on it so that we target them towards the The Night Bundle, which allows customers to subscribe tunities that were prevailing in the sector and decent standard of living for the vulnerable mem- vulnerable members of society,” he said. 1 Gigabyte (Gig) of data valid for 7 hours between 22:00hrs transferred to the more vulnerable members of bers of society and provide a stable and safe food [email protected] and 05:00hrs the following morning for RTGS$1,00, is expected to assist students and those wishing to advance the lengths and breadths of knowledge through the internet. Also new on the market are Facebook and Insta- gram bundles packaged as daily RTGS0,50 for 25MB, RTGS1,00 for 50MB valid for forty-eight hours, weekly 100MB for RTGS2,00 and RTGS5,00 for 250mb valid for 30 days. Mutizwa described the new packages as a deliberate move to increase access to communication solutions, a forte that has become attributable to NetOne. The packages allow subscribers access to voice, data and media services from across the digital divide. Current tariffs have seen NetOne offering the best voice package through Khuluma 24/7, which avails 3 minutes for RTGS0,50, with RTGS1,00 availing 8 minutes, 18 minutes for RTGS2,00, RTGS3,00 for 28 minutes and 50 minutes for RTGS5,00 across all networks. This translates to customers enjoying voice calls to any network of their choice within Zimbabwe at affordable rates. — Staff Reporter [email protected] Chinese stocks calm after US$1,3 trillion rout

NVESTORS are taking a breather from the recent market rout that has wiped out almost US$1,3 trillion Ifrom China’s stock market. The CSI 300 Index hasn’t moved more than two percent in either direction in the past seven sessions, the longest streak of calm since February. Volatility has dropped too, with a 10-day measure on the gauge — which comprises some of the largest list- ings on the Shanghai and Shenzhen stock exchanges — dropping from a 7-month high this month. The gauge was 0,5 percent higher as of 2:30pm. Stocks had plunged earlier in May as the US raised tariffs on Chinese imports and threatened to blacklist the country’s tech firms including Huawei Technologies and surveillance equipment maker Hangzhou Hikvision Dig- ital Technology. The muted market follows a recent acceleration foreign selling across the border. Offshore investors net sold mainland shares via the exchange links for eight sessions through Monday, the longest run of outflows since early 2017, data compiled by Bloomberg show. They turned net buyers on Tuesday, with inflows set for the biggest in one month. A momentum indicator on the CSI 300 Index has sta- bilized in the past few weeks, moving away from a level that signaled it was oversold. Trading volume has withered on the mainland markets, with turnover shrinking over seven consecutive weeks in the longest stretch on record. Volume on the index was 28 percent lower than average level at this time of day in the past 30 days. Investors may be trying to strike a balance after ab- sorbing the recent shocks from the trade talks between China and the US, according to Gerry Alfonso, director of the international business department at Shenwan Hongyuan Group. “There are no big surprises recently with investors gradually digesting the new overall macro environment,” Alfonso said. “The most reasonable thing to do is to focus on company fundamentals and find mid-term opportunities without having to commit heavily on the overall direction of the market.” — Bloomberg Life & ArtsNews Worth Knowing May 30-June 5 2019 Page 31 Blood pressure breakthrough in red wine

OLECULES found in red wine Mcould be used to create a breakthrough treatment for high blood pressure, researchers announced. Resveratrol, a compound produced in the skins of grapes, has long been touted as an elixir capable of combating many diseases from cancer to dementia. But scientists have always struggled to translate these findings into successful treatments. That is largely because the exact mechanism driving resveratrol’s effects have been poorly under- stood. Now experts at King’s College London say they have established how it works. The researchers, funded by the British Heart Foun- dation, showed that resveratrol interacts with a protein called PKG1a in the wall of blood vessels. Resveratrol adds oxygen to the protein, causing the blood vessels to relax and expand, quickly leading to a drop in blood pressure. This is a huge shift in the way scientists thought resveratrol worked. Many assumed it is an “antioxidant” — a substance that stops oxygen damaging cells in the body. But in fact it does the opposite, allowing oxygen in the blood stream to interact and oxidise the PK- G1a protein. Writing in the Circula- tion medical journal, the scientists described how tests on cells taken from people’s blood vessels showed notable change. They also gave a dose of resveratrol to mice, which resulted in a drop in blood pressure of 20mmHg, a sub- stantial shift, in just 15 days. The scientists said no blood pressure medications work in this way, paving the way for an entirely new class of drugs. But they stressed that for a human to consume the same doses of resveratrol used in the study, they would need to drink around 1 000 bottles of red wine a day. Resveratrol does not dis- solve well and is broken down by the body before it can reach its target in the blood vessel wall. So drug developments will rely on altering the chemical structure of resveratrol to make it more resistant to break- down, to ensure more of the compound reaches the target cells. Study leader Joseph Burgoyne at King’s said: “We’re slowly realising that oxidants aren’t always the villain”. —Daily Mail REAL Madrid captain Sergio Ramos (33) has asked to leave on a free transfer, says club president Floren- News Worth Knowing tino Perez. The Spain centre-back is contracted until summer 2021 but wants to take his career to the Chi- Sport nese Super League. Page 32 May 30-June 5 2019 SPORT SHORTS Cricket World Cup begins THE 2019 ICC Cricket World Cup starts today, with the top ten ODI teams in the world set to battle it out for one of the most coveted trophies in sport. Hosts England go into the tournament as favourites, having soared to the top of the ICC rankings in one-day cricket since the last World Cup four years ago. Defending champions Australia will undoubtedly have a say in the competition, however, as will India, led by the best player of his generation, Virat Kohli. South Africa, New Zealand, West Indies, Pakistan, Sri Lan- ka, Bangladesh and Afghanistan complete the line-up and will all be hoping to cause an upset over the next six weeks. For the first time in history, the World Cup will see all ten teams play each other in a mammoth round-robin system, with the top four progressing to the semi-finals. The last two World Cups have both been won by the host nation and England are expected to challenge for the trophy after enjoying a sensational run in one-day cricket. But Eoin Morgan’s side are set to face fierce competition as they bid to win the 50-over World Cup for the first time. Metro.co.uk will run through all ten teams competing in the 2019 Cricket World Cup, predicting the fate of the sides involved and picking out the players expected to thrive. — metro.co.uk Real Madrid most valuable

REAL Madrid has overtaken Manchester United as Europe's most valuable club according to new analysis from KPMG. The Spanish giants were propelled to the top of the list by growing commercial revenues after winning three Champions Peter de Villiers was appointed Sables coach in February last year League trophies in a row. Real Madrid’s “enterprise value” grew by 10 percent to €3,22bn (£2,84bn) at the start of 2019, while Manchester Unit- ed’s fell by 1 percent to €3,21bn (£2,83bn), according to the analysis. The Old Trafford club has not won the Champions League since 2008 and has dismissed a succession of managers since the departure of Sir Alex Ferguson in 2013. KPMG’s list analyses the publicly available financial state- De Villiers fired ments of 38 top European football clubs and does not include any impact of the 2018/19 season which has just concluded. Paul Nyakazeya Sadly it did not happen. One win, one draw and The never-say-die attitude exhibited by the Sa- Third spot goes to Bayern Munich, overtaking Barcelona Group Digital Editor three defeats is hardly the return Zimbabwe expect- bles was expected to act as a catalyst for a change which has slipped to fourth — weighed down by an increasing- ed after de Villiers’ high profile appointment and the as the players, coach, technical staff and the Zimba- ly onerous wage bill. HE Zimbabwe Rugby Union (ZRU) has fired coming on-board of several sponsors to bankroll the bwe Rugby Union (ZRU) look to rebuild ahead of After that, the top 10 is dominated by English teams, with Sables coach Peter de Villiers for taking unau- team’s World Cup campaign. the qualifiers for the 2023 World Cup to be hosted champions Manchester City, valued at €2,46bn (£2,17bn), in Tthorised leave from work fifteen months after Local mining company Zerttew Resources was by France. fifth place — followed by Chelsea, Liverpool, Arsenal and Tot- his high profile unveiling. unveiled as the major sponsor of the flagship nation- The disappointing campaign provided key les- tenham. The former Springboks coach who described his al rugby side, Sables, in a landmark deal worth $1 sons for the future among them the need for the Sa- The tenth richest club is Italy's Juventus, according to the appointment then as the “greatest day of my life” has million. bles to play more competitive preparatory matches analysis. indicated that he will challenge his employer’s deci- The international mining investment company, ahead of qualifying tournaments. KPMG's list also includes Leicester City and West Ham, in sion and appeal his dismissal in a labour court. which is headquartered in Zimbabwe and has offices The fact that the Sables had to wait until their last 16th and 17th positions, as well as Everton in 20th. The ZRU documents detail how de Villiers, who in Johannesburg and Luxembourg, also took respon- match to deliver their best performance showed that Celtic, in 30th, becomes the first club from Scotland to join is in South Africa, failed to return to work from a va- sibility of coach, De Villiers’ wages and upkeep as they need to play more friendlies against strong op- the top 32 in four years of analysis, with a valuation of €252m cation last year, resulting in him being suspended and well as the players’ welfare. position ahead of important assignments. then later fired following a disciplinary hearing. Portnex International, a South African commod- This was going to give the sacked coach more De Villiers (61) yesterday could not be drawn ities and energy trading company, and Zimbabwean time to identify winning combinations and the right Naomi Osaka fights back into commenting further about the latest develop- law firm Titan Law, Zimoco and Croco Motors are personnel for certain positions, while also paying ment. the other sponsors, while the Sables where dressed particular attention to their opponents’ strengths and WORLD number one Naomi Osaka avoided a premature end He said the ZRU had “expelled” him for missing by leading international sportswear manufacturer, weaknesses. to her bid for a third straight Grand Slam title by coming from work while he was at his cancer-stricken daughter’s Canterbury. The tournament also taught Zimbabwe to be behind to reach the French Open second round. side, also claiming that his bosses had accused him Under De Villiers, Zimbabwe lost to Namibia, “better prepared” for away games to avoid a recur- She twice had to stop Slovakia’s Anna Karolina Schmiedlo- of faking the fact that his daughter was ill. Tunisia and Kenya, while drawing with Morocco rence of what happened in Tunisia, where off field va serving out the match before winning 0-6 7-6 (7-4) 6-1. On April 10 an image of de Villiers sleeping next before defeating Uganda. destructions had a negative impact on the team’s The Japanese, 21, faces two-time Grand Slam champion to his daughter Odille Monk during her chemothera- The Sables’ first season under de Villiers can best performance. Victoria Azarenka next. py sessions was posted on Twitter by John Goliath a be described as topsy-turvy as the South African The team slept on the streets after complaining Defending champion Simona Halep struggled in a 6-2 3-6 freelance sports journalist based in South Africa. coach began his tenure with high hopes, before fac- about the poor standard of hotel accommodation. 6-1 win over world number 47 Ajla Tomljanovic. The criteria used by the ZRU committee for the ing the grim prospect of relegation from the top tier De Villiers coached South Africa’s senior rugby Schmiedlova, ranked 90th in the world, made very few er- appointment of a national coach included, among Africa Gold Cup. team — the Springboks between 2008 and 2011. rors until victory was in sight, but the pressure of a career-best other things, having a candidate that would reside in While in the end the Sables failed in their bid to The Springboks won 30 of their 48 matches un- win told as Osaka fought back. Zimbabwe, has international experience, a proven qualify for the World Cup which begins in Japan in der him. His tenure came to an end following South US Open and Australian Open champion Osaka is playing track record to match their international experience, September, it was the manner in which they rose in Africa’s quarter final exit at the 2011 Rugby World in her first Grand Slam as the top seed. and is a holder of a World Rugby level pre-coaching the face of adversity and turned despair into delight Cup when they were knocked out by Australia in a Both Osaka and Halep were playing on Philippe Chatrier, certificate. to convincingly win their last match in Uganda and controversial game that will forever be remembered the main court at Roland Garros, and both wobbled against low- De Villiers who inked a two year contract in secure their top tier status that had given many fans for the controversial decisions made by Kiwi referee ranked opponents. February last year had an immediate task of helping hope. Bryce Lawrence. Romanian Halep, whose only Grand Slam triumph came in Zimbabwe qualify for this year’s Rugby World Cup In fact, the Sables’ impressive 38-18 victory De Villiers finished his four years in charge with Paris last year, looked as though she would breeze through the in Japan, which, if he had succeed, was going to be against Uganda in Kampala was a ‘come-back- a respectable 62 percent win percentage and went on match at first, winning the first set in less than half an hour. the country’s first appearance since the 1991- tour from-the-dead’ win as very few gave them a chance to take charge of the University of the Western Cape But Tomljanovic broke Halep’s serve twice to take the sec- nament in England where they lost all three group of emerging from the tough contest against a confi- rugby structures as director of rugby between 2012 ond set, before the world number three closed out the match in matches to Scotland, Ireland and Japan. dent Cranes side unscathed. and 2015. [email protected] dominant fashion after four breaks in the third. — bbc.com