IM EECTIES HIT ITH NE TA EIME P3

News Worth Knowing im fuel now more epensive P5

September 17-23, 2020 ESTABISHE 16 @ FingazLive www. ngaz.co.zw acebook The inancial azette 26

ZSE Report The ZSE All Share Index yesterday eased 1,09 percent to close at 1,682,59 points. CBZ lost $2,1207 to settle at $53,8. SeedCo dropped $1,0018 to end Raging at $22,49 and Delta was $0,4701 weak- er at $17,9. Natfoods also decreased by $0,4500 to end at $49 and Innscor traded $0,4365 lower at $20,3. The Top 10 Index dropped 2,16 percent to close at 1,133,53 points. Market capitalisa- tion was at $211 billion while turnover closed at $58 million.

Currencies (Bloomberg) % change USD:ZAR 16,3365 -0,72 ◀ ◀ ◀ parallel EUR:USD 1,1862 0,13 GBP:USD 1,2954 0,79 USD: JPY 106,2000 -0,53 ◀ Stock Markets 1 682,59 -1,09 ZSE All Share ◀ Top 10 1 133,53 -2,16 ◀ JSE 56 099,50 -0,06 6 076,60 FTSE 100 ◀ ◀ -0,47 ◀ Dow 27 995,60 0,01

Commodities ◀ ◀ market Gold 1 979,30 0,67 Platinum 976,03 0,29 ◀ Brent Oil 41,50 2,39 Grains (Grain SA)

White Maize ZAR 3 230,00 ◀◀ -44 Soya ZAR 7 730,00 -120 Wheat ZAR 4 880,00 -62 ◀ Top Companies waning event on tonight Nelson ahadza market rates, and it is only a few months away ZIMBABWE Stock Exchange Staff riter before we see real change,” Eddie Cross, an (ZSE)-listed top performers will economist and member of the RBZ’s monetary be recognised tonight at The Fi- HE Reserve Bank of Zimbabwe’s (RBZ) policy committee, told The Financial Gazette nancial Gazette’s Top Compa- all-out war against the currency black this week. nies Survey (TCS) awards spon- market — including its recent introduc- He also predicted that forex arbitrage oppor- sored by Old Mutual (OM). T The event will be broadcast tion of a foreign exchange auction system — is tunities within the economy would diminish in increasingly rendering the hitherto riotous paral- the not too distant future, as the parallel market live from 18.30hrs on the paper lel market profi tless, eperts say. has become increasingly less signifi cant. and OM's social media plat- This comes as the trading rates between the Persistence Gwanyanya, another economist, forms. offi cial and parallel markets have narrowed also said the offi cial and black market rates were Renowned agricultural econ- markedly over the past three months, with lit- nearing equilibrium due to RBZ governor John omist, Mandivamba Rukuni, will be the guest of honour at the tle incentive for those requiring “rich local cur- Mangudya’s stellar liquidity control measures. Brent Barber, Invictus Energy esources country manager, says rency pickings” resorting to the risky unoffi cial “We can only expect the parallel market rate the Perthbased rm is making steady progress in preparation for TCS event — launched in 1980 market. to move to this equilibrium rate and ... liquidity sinking its test wells at the Cabora Bassa Proect in Muzaraba — to be held under the theme: “Substantial progress has been made to nar- conditions currently obtaining in the market sup- ni. Invictus has already invested S3,5 million into the proect. ‘Working Towards an Open, row the gap between the offi cial and parallel port this imperative,” he said. To Page 2 Picture reedom Mashava Stable and Inclusive Economy’. Page 2 | September 17-23 2020 The Financial Gazette National News Raging parallel market waning

From Page 1 foster price stability and improve mar- “The market is highly regulated and Gwanyanya also said if this tra- ket confidence,” he said. manipulated with high opportunities jectory continued, there should be “a He added that “strategic policies to for arbitrage. convincing rate and price stability” by re-industrialise the economy also rep- "Therefore, the convergence of the year-end — all of which were neces- resent a sustainable formula for curtail- official and parallel market rates will sary to push down the country’s high ing recurring trade deficits and to cool not be genuine,” he said. inflation rate. down or calm the foreign exchange He added that some “indirect He cited the move by the RBZ last market”. rent-seeking opportunities can still be month to introduce the 20 percent for- Bhoroma also argued that gains exploited in value chain processes, eign currency surrender policy — from “realised in subsidising agriculture, for especially in the informal space where local transactions — as key in boosting example, and the ramping up of mining regulation is relatively less and en- forex supplies into the market in the production, can only make economic forceability is difficult”. long run. sense if commodities from these two Hawkins also said if the market was “We do not expect the parallel mar- key sectors are processed locally rather stable for real, individuals and compa- ket to be completely eliminated or rates than exported in raw form, then ulti- nies would have been able to pay their to perfectly converge, but rather that mately be imported as finished prod- offshore debts, as well as import equip- the gap between the parallel and auc- ucts by consumers”. ment more easily. tion rates will narrow significantly. It “Re-industrialisation calls for an “It is impossible to sustain the is comforting that this is happening,” active participation by government and current stability simply because it is a wanyanya said. moving away from mere policy rheto- matter of supply and demand, whereby Victor Bhoroma, an analyst, said in ric to actual implementation of the pol- the demand for the US dollar has out- Jaqueline Mutambara John Bhasera a recent opinion that the newly-found icies with clear milestones in the short, stripped supply,” he said. stability of the Zimbabwean dollar add- medium to long-term,” he said. John Robertson, another doyen ed weight to the importance of an effi- On his part, Enock Rukarwa — an economist, said the black market “re- cient foreign exchange system and the investment analyst — was recently mains in business because demand still 2019/2020 Agric Sector role this played in the economy. quoted in the media saying the stability exceeds supply and the people who “There could be suspicions from of the local currency was principally a cannot qualify to bid at the auctions end certain quarters in the market about the function of a sustainable supply side of up paying more”. independence of the auction-pricing foreign currency on the auction system. “nfortunately, the profit margin Survey out tomorrow mechanism, but there is no doubt that He added that due to the obtaining enjoyed by currency dealers is more it can be sustained, provided there is economic challenges in the form of than the margins for many other busi- HE Financial Gazette and the Zimba- where the country consistently spends in ex- restraint on money supply and policy foreign currency deficits, coupled with nesses, especially as it is ta free. bwe Agricultural Society in partnership cess of US$1 billion on agricultural imports consistency,” he said. a negative external balance position, “So, the imbalance between supply Twith Africa Economic Development annually. Bhoroma also noted that reserve the stability of the Zim dollar was still and demand suits them well and indica- Strategies will this Friday launch the second Some of the limitations include inad- money — which is currency in circu- precarious. tions suggest that they can contrive to edition of the Agricultural Sector Survey equate resources and poor technologies, lation plus commercial bank and other “Structural changes on the produc- keep the black market going. 2012020 at the Meikles otel. which present an opportunity for investment deposits at the RBZ — had dropped tion side of the economy are the only “Inflation is still very high and The Agricultural Sector Survey, which is and requires a positive policy environment significantly in recent months, from fundamentals that can guarantee local that alone says it should weaken fur- sponsored by CBZ Holdings, was launched for financing small-holder agriculture. Z$17 billion in July to Z$12 billion as currency solidity in the medium to long ther. e should see inflation starting last year as an information guide to assist “The significance of this report is centred of ugust. term,” he said. to come down soon because even the stakeholders in the sector by providing au- on the fact that it acts as a dashboard on the “It is worth noting that the echange Veteran economist Antony Haw- black-market rate is relatively more thentic, up-to-date and an in-depth analysis status of Zimbabwe's agricultural sector as rate does not need to be high for it to be kins also said it was “too early to judge stable than it was,” obertson said. of the sector. it provides the state of affairs of the sector deemed genuine. the effectiveness of the RBZ’s strate- See also Pages 3, 5, 7 and 8 Seed-Co and Syngenta have this year and showcases opportunities for investors,” It simply needs to be stable ... to gies”. [email protected] joined as sponsors of the event. engesa said. “Zimbabwe’s agricultural sector is a pri- The event will be held from 10 to 12 mary pillar for economic development hence noon, with 50 people in attendance as per the continued need for a comprehensive Covid-1 safety regulations. study on the country’s agricultural patterns, The permanent secretary in the Ministry which provide investment opportunities that of Lands, Agriculture, Water, Climate and will contribute to economic growth as well Rural Development, Dr John Bhasera will as food security,” Edwin Vengesa, The Fi- be the guest of honour. The griculture min- nancial Gazette advertising manager said. ister, Dr Anxious Jongwe Masuka, will also The survey highlights gaps in production be in attendance. against national requirements for various The keynote speaker will be Dr Jaqueline crops and livestock and the opportunities to Mutambara, an agricultural economist. direct policy in these areas. The event will be live-streamed on all Zimbabwe’s agricultural output has re- The Financial Gazette's and ZAS' social me- STAFF VACANCY NOTICE NO. 6/2020 mained subdued, resulting in a situation dia platforms. — Staff Writer

Zimbabwe Power Company is inviting applications from equivalent suitably qualified and motivated persons to fill the following • Valid full membership of a recognized professional permanent position that has fallen vacant at Hwange Power Institution. Station. • 8 years relevant experience of which years should be at senior level in power generation. POST: OPERATING MANAGER • nowledge of the thermal power generation process REF : ZPCHO9/09/20 • Senior Electrical and Mechanical switching authorization will be an added advantage. The Position The incumbent reports to the General Manager at ZPC Essential Competencies Hwange Power Station. The main purpose of the job is to • Good planning and organizing skills plan, direct, organize, control and lead real time activities in • High mental strength with a desire to see achievement of the main and auxiliary plants operating functions, chemical results services and operations support to achieve precise and • Analytical skills and attention to detail intricate monitoring and environmental compliant operation Applications from prospective candidates with detailed of Hwange Power Station including Deka Pumping Station. curriculum vitae and certified copies of certificates should be Key Performance Areas received by not later than 0 September 2020. • Provides systems to work as guidelines to achieve correct operation of plant within design requirement, maintenance Senior Manager Human Resources directive and good operating practices. Zimbabwe Power Company • Conducts and reviews the Station authorization system P.O Box MP 2 and safety management periodically. Mount Pleasant • Manages contracts for various suppliers of raw materials HARARE and customers. • Develops emergency operating procedures and systems Or email: hpsopsvacancy2020zpc.co.zw to deal with abnormal situations and manages risks in the plant. or hand deliver to Senior Manager Human Resources • Builds good interpersonal relationships with customers Zimbabwe Power Company and suppliers. 12th Floor, Megawatt House • Manages system operations and energy trading. Samora Machel Avenue • Develops annual budget for the Operations Department. HARARE

Qualifications and Experience NB. ZPCs recruitment policy does not require any prospective • A degree in Mechanical /Electrical Engineering job seekers to make payments to the Organisation or any of • A post graduate qualification such as an MBL/ MBA or its employees as a way of securing employment. The Financial Gazette September 17-23 2020 | Page 3 National News Ncube hits ‘fat cats’ with new tax plan Eric Chiriga and Paul Nyakazeya income and corporate taxes, and in- in the country, which — in turn — badly damaging our nation’s curren- Staff Writers crease the transaction ta to five per- would help to improve the economy. cy value, it has absolutely no right cent to balance its coffers. “It will also help to improve the to demand tax payments in the cur- HE government’s move to “The transactional tax will still standard of living for most. As re- rency of another country,” Robert- charge high-income earn- bring in more revenue than this gards high income earners, higher son told The Financial Gazette this Ters a marginal tax rate of 40 (executive pay),” he said during a levels of tax would make Zimbabwe week. percent is counter-productive, as it recent Global Renaissance Invest- less competitive in attracting high Brains Muchemwa, another econ- will likely lead to more tax evasion ments (GRI) symposium. level employees. omist, said while taxation was an thereby depriving the fiscus of Cross also said an attractive tax “Paying tax in forex for income important policy tool to influence much-needed revenue, experts warn. structure could “help retain skilled earned in forex is only fair and al- both investment and consumption This comes as authorities have labour and encourage the informal lows government to mobilise foreign preferences, the most important fac- given effect to the income, customs sector to regularise their activities”. currency,” Chikohora added. tor that could buttress a progressive and excise duty, value-added tax and “We need an environment that John Robertson, an economist, tax policy was a stable economic en- mining royalty changes that were an- enables the informal sector to thrive said the government’s tax move was vironment. nounced by Finance minister Mthuli and formalise their businesses. Right “a typical socialist policy” — taxing “Our very high inflation remains cube in his mid-term fiscal policy now they do not want to formalise Mthuli Ncube better paid people more. the most punitive legislated taxation in July. because they do not want to pay tax- “The harsh taxes will discourage on earnings and capital and, there- Eddie Cross, a member of the Re- es,” he added. threshold was raised, it would in- investors from coming to start new fore, productivity does not respond serve Bank of Zimbabwe’s (RBZ) Trust Chikohora, a former Zim- crease disposable incomes for most businesses. to tax incentives, but rather to the monetary policy committee, said the babwe National Chamber of Com- workers. “Government must be persuaded state of the economy,” he said. government should rather be cutting merce president, said if the tax-free This would stimulate demand that having been responsible for so [email protected] Tourism industry seeks rebound RURAL ELECTRIFICATION FUND Shame Makoshori Companies Editor

OISM firms say they are looking beyond domestic business to rebuild after they were battered by a six- Tmonth closure due to the coronavirus pandemic. Zimbabwe imposed a blanket lockdown since March 30 this year, freezing domestic and foreign travel. Last week, the government gave the nod for Air Zimbabwe and Fastjet to resume domestic flights under strict conditions. “A key factor in rebuilding the industry lies in the re- sumption of regional and international flights to drive tourist traffic as countries rela travel restrictions” oss ennedy, COMPETITIVE TENDERS the Africa Albida Tourism (AAT) chief executive said. “We are collaborating with our air travel partners in Zim- babwe to get passengers into the skies and enjoy the won- REF is inviting bids from reputable bidders for the following tenders: derful and diverse destinations and experiences as soon as No Tender Number Description of item Qty Closing date and possible,” he said. “AAT is looking forward to welcoming guests stepping time onto the tarmac at Victoria Falls Airport very soon. ... Talks 1 REF/Inter/17/09/2020 Supply and delivery of a disaster 1 15 October 2020. are ongoing about regional airlines access to Victoria Falls, Time 1000Hrs ivingstone and asane airports from South frica and our [International tender] recovery solution regional neighbours,” ennedy said. 2 REF/ - 1 “We are hopeful that borders will open soon to also allow self-drive traffic, with ictoria alls and ivingstone being DOM/18/09/2020-R12819 an obvious travel bubble over the Victoria Falls Bridge. It is [Domestic tender] also very good news to see Emirates announce that effective 3 REF/Dom/19/09/2020- Supply and delivery of: 29 September 2020. October 01 they will fly into arare twice per week on their initial schedule,” he added. 15911 • Printers 4 Time 1000Hrs “We initiated robust discussions and are actively engaged [Domestic tender] • Laptops 15 with key stakeholders as we finalise plans for the recom- mencement of domestic flights between arare and Bula- wayo and Harare and Victoria Falls,” Fastjet said. TENDER DOCUMENTS “This is an encouraging demonstration of the airline’s In a bid to contain the spread of the Covid19 pandemic,interested bidders must send an email re- commitment and support to both the well-being of its cus- tomers and the facilitation of local travel in Zimbabwe, in line [email protected]; with the domestic tourism campaign and initiative launched [email protected]; [email protected] in July 2020. Flights between Harare and Bulawayo will (start on) September 21, 2020,” the budget airline added. “Flights between Harare and Victoria Falls will operate NOTE: The email must contain the following details without fail: Name of bidder; physical address;name from October 01, 2020. International flights between im- babwe and South Africa are planned to start from October 01, 2020 subject to the lifting of travel restrictions by the South African authorities. issued free of charge in terms of the law. Only bidders facing challenges in obtaining the bidding "On resuming services, the airline will be operating its documents may call the Procurement Administrator on 0719409691. flights on a reduced frequency, and will be reviewing their programme in line with customer demand,” it said. Mangaliso Ndlovu, the Tourism minister, told The Finan- BID SUBMISSION cial Gazette recently that it was crucial to reopen the industry Tenders must be enclosed in sealed envelopes and endorsed on the outside with the advertised tender to save the economy. number , the description and closing date.The bids shall be dropped in the tender box located at the “We have the rescue package which has been put in above stated address by the closing date and time personally or by post. place,” he said. Upon bid submission,it “e are almost finalising the rescue package so that play- is the bidder’s responsibility to obtain a bid submission receipt as proof of bid acceptance in ers in the tourism industry are able to tap into that. We have terms of the Law acknowledged that we will not fight Covid-1 by closing. So, gradually, we will have to reopen. That is where the res- cue package will kick in,” he told The Financial Gazette. SITE VISIT NOTICE [email protected] (REF/Dom/18/09/2020-R12819) required to attend a compulsory site visit on 01 October 2020,Time proof of attendance.

LATE BIDS SHALL BE REJECTED.

Magetsi Kumusha/Amagetsi ekhaya Page 4 | September 17-23 2020 The Financial Gazette The Financial Gazette September 17-23 2020 | Page 5 National News ‘Zim dollar fuel now more expensive than US$’

Tendai Kamhungira Senior Staff Writer

HE price of fuel sold in Zimbabwean dollars is "nominally higher" or at par with that being sold Tin American dollars and other currencies, as the governments routine adjustments amid a firming and scarce local unit — have somehow changed the pricing dynamics, matrix and status quo. While a litre of petrol is retailing at an average $97 against the domestic currency's trading range of $81 to the greenback at the Reserve Bank of Zimba- Eddington Mazambani bwe (RBZ)'s weekly auctions and $90 for small street Ashok Chakravarti Zhemu Soda sales, a weighted or blended price of the commodity hanced lines of credit from the RBZ. and, even though, John Mangudya's auctions "It is sustainable (and achievable) if we (at US$1,19 per unit) and using the current rates means With the American dollar gaining more had already guaranteed a steady supply of maintain the current policies... (and l can local cash fuel is "slightly expensive", thus spawning ground and traction under "an awkward currency. safely say) the informal sector rates now rep- a massive phenomenon where motorists prefer to use redollarisation", more people are opting to “We need a more market-driven system, resents a minority of transactions, and neither external currencies now. trade in the greenback. with dealers buying their fuel with funds dominant nor representative", Cross, a former Besides the exchange rate considerations, the trend However, Cross says dealers are still sell- from the auction," he said, adding he expect- Bulawayo South legislator and businessman, is probably being fueled by the fact that it has become ing fuel — in foreign currencies — at prices ed ugust and Septembers inflation figures said. so cumbersome to use the Zimbabwe dollar due to dai- way above those being charged in the region to be very low. [email protected] ly transaction limits or restrictions — and the pricing chatter has also arisen due to the scrapping of subsidies on the key product. But authorities and analysts, including Zimbabwe Energy and Regulatory Authority acting chief exec- utive Eddington Mazambani, believe they are doing their best to deliver a fairly-priced commodity for the sustenance of economy and other long-term benefits such as low inflation. “When we announced prices on September 05, we considered the ruling exchange rate. If you check our notice (dealers with a) trading advantage can sell at a lower price, ours (the price) is just a cap, to say you cannot sell at a price higher than this,” he said. "The RBZ’s auction system has brought wonderful results for the fuel industry and I am confident that... the black market will re- main constrained, and things will continue to run smoothly..."

On his part, central Bank advisor and economics professor Ashok Chakravarti said the "Dutch gamble" is not only “going to be a permanent feature to bring stability to the Zimbabwean dollar and other facets of the economy”, but issues in the fuel sector could be a result of a number of determinants, including duty and levy payments. “The auction system is fully-funded, there is no question of a passing phase. If you look at the auction in the past three weeks, the full amount that was bid, was given by the RBZ," he said. "The RBZ has taken a strict stance on controlling money supply. There is no pressure to increase (supply) ... borrow from the (local) market or print..,” Chakra- varti said. Crucially, people like the monetary policy com- mittee member, Energy minister Zhemu Soda and his fellow RBZ advisor Eddie Cross believe fuel retailers must use a uniform rate based on the auction exchange. “The matter will be taken seriously and action will be taken against defaulters,” Chakravarti said. At the weekend, the Muzarabani North member of parliament also said Zimbabwe's fuel sector had sta- bilised — with prices now virtually at par — and the parallel market was seriously on the back burner. “The RBZ’s auction system has brought wonderful results for the fuel industry and I am confident that... the black market will remain constrained, and things will continue to run smoothly..,” Soda said. While the country has been struggling with fuel shortages over the past two years, and until Fortune Chasi convinced his superiors on reintroducing, and strengthening the direct fuel importation dispensation, supply — and availability — has vastly improved. Although businesses and motorists are running short of Zimbabwe dollars, the product is readily available while the black market is also floundering. With a daily demand of two million and three mil- lion litres of petrol, and diesel, respectively, Harare was spending US$35 million in scarce foreign currency to subsidise the precious liquid. And the situation has not only improved after the government allowed the free-funds concept, but en- Page 6 | September 17-23 2020 The Financial Gazette The Financial Gazette September 17-23 2020 | Page 7 National News Gvt wants share in Invictus oil deal Shame Makoshori "Government will get a certain per- "From that hole, you then make a investigate the viability of supplying Companies Editor centage of the production. The draft determination, hence the massive work gas to Tatanga’s planned power project, agreement is in place and the fi nal agree- being done before drilling. I will call the which aims to supply the national grid IMBABWE is pushing for a stake ment is expected in the next few weeks citing of the well a do-or-die. But we can and clients in Zimbabwe, Zambia and in Invictus’ Cabora Basa oil proj- and drilling of the well will be in the third safely say in 2021, Zimbabwe will have Mozambique. Zect in Muzarabani, Mines minister quarter of 2021,” he said. two test oil wells. The MoU plans 11 billion cubic feet Winston Chitando has said. According to Paul Chimbodza, a lo- "When you have an investor sinking (Bcf) per year, which could be increased The Gutu Central member of parlia- cal partner in the project, the agreement US$20 million in a well, it means they to 36.5Bcf per annum. ment was speaking when the Australian could see government establishing its are confi dent of the result. e have two This was a second agreement after an- fi rm announced it was eroing in to fi nd own infrastructure at the production site test sites, one is four kilometres deep and other deal to supply natural gas to Sable the best location for its US$20 million to claim its share of the resource. the other is two kilometres deep,” he said. Chemicals, the country’s sole ammonium test wells at the heart of a presumed oil Invictus has already spent US$3,5 Last year, Invictus signed a non-bind- nitrate producer. fi eld traversing 100 000 hectares. million in preliminary work before sink- Winston Chitando ing Mo with imbabwean energy fi rm Under that MoU, Invictus would sup- “We have had key milestones,” ing its six-kilometre-deep test wells. Tatanga Energy for the supply of gas ply up to 70 million cubic feet of gas per Chitando told reporters. Chitando said signifi cant ground still “We are dealing with a very expen- to Tatanga’s proposed 500MW power day for 20 years, which would be enough “The Zimbabwe Investment Develop- needs to be covered before the fi rst gas or sive exploration exercise. We are looking plant, once a potential commercial gas to sustain production for Invictus and at ment Agency licence has been given and oil drop fl ows. at US$20 million to check the existence discovery at the Muzarabani prospect is the same time meet the supply needs of the area’s special grant has been extended “Some thought that we will have oil of the oil beyond doubt. confi rmed. Sable’s Kwekwe plant, one of the coun- by three years. A production agreement is pouring in si months when the fi nd was "We must ensure that the well is on Tatanga Energy, together with Invic- try’s biggest consumers and importers of being negotiated with government. announced last year),” Chitando said. point. So, it has taken long in order to cor- tus and its partner One Gas, will jointly gas. newsdesk@fingaz.co.zw rectly cite the well, then drilling can start. War vets step up economic ventures bid Tendai Kamhungira Senior Staff Writer

RESIDENT Emmerson Mnangagwa's government has approved the operationalisation of the Veterans of Pthe Liberation Struggle Act (VLSA), thus paving the way for war veterans's desire to return to big-time business. The development comes as The Financial Gazette has recently reported that the "special interest" group was on the cusp of launching its own bank, investing in mines and oth- er ventures under a six-tier group, although critics say this might benefi t top offi cials and elites only. “The veterans... investment fund will then become the sole shareholder in each of the investee companies that will be set up to own and operate businesses in each key sector of the economy,” read a white paper seen by this publication about two weeks ago, adding “each investee company will have its own board of directors and chief eecutive offi cers constituted by war veterans”. “...investee companies will be capitalised in part through the donations of assets that will be made by the government into the investment fund,” it said. The banking arm, the document said, will be a dedicated charter-fi nancing vehicle to assist all the operating entities to raise capital as well as offer banking services to both serving and former servicemen. And as Cabinet has recently approved the VLSA, and “establishment of a structure to cater for the welfare and eco- nomic empowerment of war veterans, special purpose fund and capitalisation of the same by the state" — after a presen- tation by Defence minister Oppah Muchinguri — it looks like the plans are really gathering momentum. According to the Zanu PF national chairperson, the Act paves the way for the "appointment of a new board soon and conversion of Power Zimbabwe Company into a holdings parastatal", while the entire project will also cater for ex-po- litical detainees and restrictees, non-combatant cadres and war collaborators. An attempt to glean or search for the company and see whether it has been incorporated already drew blanks this week, as the registrar of companies offi ces has not yet been reopened due to the coronavirus pandemic. While the controversial plan or initiative comes after the liberation war fi ghters have had several ventures collapse un- der their watch, especially under the late Chenjerai Hunzvi's leadership, about as si fi rms or subsidiaries across agricul- ture, tourism and the medical sector will be created. These included a housing cooperative and development company, and shares in one of Zimbabwe's mobile phone operators. But with the boisterous group forming a critical constit- uency in the country’s delicate and complex power matrix or dynamics, especially in the ruling party, former president Robert Mugabe yielded to their demands for $50 000 gratu- ities each and later farms, which shattered the economy. According to many experts and other observers, these un- budgeted for payments to ex-combatants caused the demise and depreciation of the local currency — after it fell by 70 percent in a single day, and thus, precipitating unprecedented hardships for the majority. Having unsuccessfully pressed for mining concessions in Chiadzwa at the height of Zimbabwe’s diamond rush, the war veterans are reportedly back with demands for diplomat- ic passports, parliamentary seats and honorary degrees. newsdesk@fingaz.co.zw Page 8 | September 17-23 2020 The Financial Gazette Leader Page

News Worth Knowing Build on momentum to entrench stability OVER the past few weeks, Zimbabwean businesses and consumers have experienced relative stability in the prices of goods, and services due to a stabilising exchange rate. hile it is difcult to say whether this calm will be enoyed for long, there is a general consensus that these economic gains have been part- ly achieved through the four-pronged strategy of suppressing mobile money platforms, sustenance of statutory instrument (SI) 85 of 2020, WATER BLUES: Residents gather around a borehole at Matapi Flats in Mbare to fetch water. Harare has been subsequent introduction of foreign currency auctions and availability battling a water crisis for years and over two million people in the capital have no access to safe drinking water of a reliable source of cash, which we hope can also help social and or adequate waste disposal services. political stability. Although prices are still relatively high and beyond the reach of many in relation to salaries and wages they remain stable, and the rate of ination is also bound to continue slowing down as well. Value addition is key to ith ination gures released this week showing that Augusts monthonmonth ination was ust above eight percent after shedding 27 percentage points on the uly 22 gure of 36 percent, we can only pray that nothing especially in terms of policies is done to upset Zim agricultural success the apple cart or status uo and President Emmerson Mnangagwas HE recently re-elected president However, for the nation to realise this ton may decline, but never the price of government stays the course. of the African Development Bank potential and increase revenue in ex- textile and garments. It might be too early to bring out the champagne bottles, but we re- T(AfDB), Akinwumi Adesina, fa- ports from agriculture, there is need to This situation calls for policies that main cautiously optimistic that this can be done through a sustainable mously remarked that “Agriculture is change farmers’ mindset. They need to unlock the huge potential of the coun- policy regime to consolidate the gains and foundation built so far. not a development activity or a social see agriculture as a business and they try’s commodities. This can be done by Acknowledging that imbabwes problems are numerous, ev- sector but a business and it must be need to focus on niches that can be val- developing agricultural value chains erchanging and comple, this is the time for solid leadership and rm treated as one to unlock wealth”. ue-added into high-end products. and agro-allied industries that process decisionmaking and not the populist distractions, and inconsisten- His comment is particularly an im- Zimbabwe has had a run of debilitat- and add value. This will go a long way portant one for the African continent ing trade deficits because it over relies in improving competitiveness in glob- cies such as the invasion of Martin roblers Protea arm. which still spends significantly on im- on raw and semi-finished eport prod- al value chains, save foreign currency, iven that sentiment is key for stability and condence, we cannot ported foodstuffs. For instance, Afrexim ucts. raise incomes for local rural farmers afford these howlers or costly clangers and needless vacillations around Bank estimates that more than US$90 Covid-19 has only made things and increase contribution to the nation’s who eactly was to benet under the 78yearold leaders compensation billion was spent on food imports in worse. The virus spread containment GDP. programme because they proect Harare as an unpredictable capital. 2019. measures that were put in place by Furthermore, for the country to re- With the rest of the world struggling due to the coronavirus pan- The AfDB itself is forecasting that many countries like South Africa such alise the agriculture potential, there is demic, we have got to do more to ensure that our thin industrial base the food import bill will likely rise to as border closures resulted in slowed need for the expansion of production and production capacity is boosted through appropriate policies, re- US$110 billion by 2025 amid rising economic activity and supply chain dis- possibilities of smallholder farmers. demand for food and changing con- ruptions. This inevitably led to reduced Climate change is a major threat to pro- tooling, cheaper credit lines and new power sources. sumption habits. While the world has demand for Zimbabwe’s raw export ductivity while other challenges include n the mining front, the government can do more through appro- made progress reducing extreme pov- commodities hence less revenues. low soil fertility, reliance on rain-fed priate and consistent policies to encourage production and ensure erty rates from more than 50 percent Zimbabwe’s dependence on raw systems, poorly functioning markets, the country benets from the current global price rallies. to about 30 percent according to World commodities exports exposes the coun- farmers’ limited access to credit, limited ur tourism sector might have fallen by 6 to percent to the Covid1 Bank, a vast majority of people still face try to the high variability and instabili- access to technology, lack of knowledge menace and it is likely to take a while before things normalise since key hunger in Africa. The problem is more ty of global commodity prices. Such and best practices among others. borders are also yet to open, but the brave decision to let the industry pronounced in rural areas. external commodity price shocks have Government should promote cli- operate should also give the nation some relief. According to the United Nations, in continued to negatively affect the econ- mate-smart technologies and practices. 2018 approximately 256,1 million Af- omy, creating domestic fiscal deficits The Pfumudza concept introduced in But all these crucial steps and decisions will come to nought if Mnan- ricans did not have enough food to eat, and balance of payment deficits. Such partnerships with NGOs, is a com- gagwas anu Pled administration resorts to kneeerk policies. which translates to circa 20 percent of deficits and imbalances lead to reduced mendable move towards addressing hile we are of the rm view that there is no better time for eco- the continent’s population. This unfor- public ependitures, rising inflation and climate change. The concept aims at cli- nomic reforms and change to anchor, solidify social, and political sta- tunate statistic contrasts with Africa’s currency devaluations. mate proofing agriculture by adopting bility", there is no need to over-emphasise their inter-connectedness share of uncultivated arable land of The country continues to lose bil- conservation farming techniques and too! about 65 percent. Despite having such a lions of dollars because it exports raw involves utilisation of small pieces of resource, there is nothing to show for it. and semi-processed commodities land and applying the correct agronomic That is why the advancement of ranging from minerals to agricultural practices for higher returns. sustainable agricultural and rural de- produce only to import them back as Another technique is adoption of velopment is of paramount importance epensive finished goods. The country’s small-scale irrigation practices which if the 2030 Sustainable Development main agriculture exports include tobac- are touted as key to building climate EDITORIAL MARKETING Goals (SDGs) are to be achieved. This co, sugarcane, cotton and maize. resilience. While there are no easy solu-

Editor-In-Chief & Chief Operating Officer Advertising Manager is very important for Zimbabwe whose On tobacco, the top agriculture ex- tions to climate change, the combination Christopher Goko: [email protected] Edwin Vengesa: [email protected] food imports as a share of merchandise port earner, Zimbabwe is losing circa of farmer-friendly tools and opportuni- Deputy Editor Brand Executive Sales & Advertising imports topped 11,7 percent in 2018. ties for learning and networking could Tabitha Mutenga: [email protected] Shingirai Chirikuutsi: [email protected] This translates to about US$600 million Open Forum help build climate resilience. Associate Editor Senior Sales Consultant of the total import bill, an unacceptable imited access to finance and high Eric Chiriga: [email protected] Susan Mapininga: [email protected] amount for a country that was once the with interest rates is another key challenge. Senior Assistant Editor Senior Sales Executives bread basket of Africa. The country’s banking industry has over Chris Gumunyu: [email protected] Christobel Washaya: [email protected] The southern African nation is an the years underserved the agriculture Christinah Machaka: [email protected] Henry Masasire Markets Editor agro-based economy with the majority sector in terms of lending due to per- Kudakwashe Chideme: [email protected] Sales Representatives - Harare of its population living in rural areas. ceived risk of the sector. Thus new inno- Precious Mazhambe: [email protected] Group Digital Editor Frank Nyandoro: [email protected] Agriculture underpins the country’s US$27 per kg due to lack of value addi- vative approaches are needed to de-risk Paul Nyakazeya: [email protected] Edreck: [email protected] economic growth, food security and tion. For instance, in 2019 export aver- agricultural lending. Companies Editor Sales Representative - Bulawayo poverty reduction with an estimated age price per kg of unprocessed tobacco Zimbabwe can learn from its Afri- Shame Makoshori: [email protected] Clever Pedzisai: [email protected] 70 percent of the population depending was US$5 compared to US$32 per kg can counterparts through use of first loss Chief Sub Editor Brand Executive - Events directly or indirectly on agriculture as a for cigarettes. This translates to more guarantees. For example, a few years Tawanda Chiwara: [email protected] Kerina Chizemo: [email protected] livelihood. than 80 percent variance of unrealised ago Nigerian commercial banks came Staff Writers Brand Executive - Subscriptions Zimbabwe has a total land area of revenue from value addition. together to form a facility called the Ni- Omega Ukama: [email protected] Tatenda Taka: [email protected] 39 million hectares and from that 42 Another quick example is from the geria Incentive-Based Risk Sharing for Adelaide Moyo: [email protected] Tendai Kamhungira: [email protected] Subscriptions Representatives percent (16,2 million hectares) is ear- cotton industry. In 2019, the internation- Agricultural Lending (NIRSAL). Nelson Gahadza: [email protected] Ronald Madiviko: [email protected] marked for agriculture. Of that total, 4,1 al cotton price was about US$,90c per The US$350 million incentive is Freedom Mashava: [email protected] Elizabeth Nyamaruze: [email protected] million hectares are under cultivation kg compared to the average price of an designed to reduce risks to lending by Chief Executive Officer Production Supervisor Pilate Machadu: [email protected] while 12,1million hectares are perma- imported shirt at US$10. The country fiing agricultural value chains and Kudzai Rushambwa: [email protected] nent pastures. Approximately 365 000 is thus losing close to US$30 per kg of financial value chains. This facility is hectares of land is suitable for irrigated exported lint as one kilogram of lint can credited for the rise in the share of total agriculture yet only 175 000 hectares are produce three shirts. Not only export bank lending to the agriculture sector equipped for irrigation. Clearly, more revenue is lost from cotton when value from 0, percent to five percent. needs to be done if government's target is not added. Other economic benefits Agriculture is an economic pillar of 307 000 hectares under irrigation by lost include improved incomes, unre- of Zimbabwe and it supports all liveli- 2023 is to be achieved. The alarming alised government revenue from taxes hoods yet it faces unforgiving climatic number of 4,3 million Zimbabweans and employment. conditions and other agriculture related that are food insecure according to FAO The economics behind raw com- challenges. VOLUNTARY MEDIA COUNCIL OF ZIMBABWE e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced would be less if more is indeed done. modities and processed or value added On that, farmers need to explore and news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of The country has huge potential to commodities is this: While demand for use appropriate production methods that Zimbabwe at: grow and export a variety of its agricul- raw commodities is elastic, demand for will ensure sustainable production and 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 ture produce that is preferred in major processed or value-added commodities make it their business to feed the nation Zimbabwe regional and international markets. is relatively inelastic. The price of cot- through value addition. The Financial Gazette September 17-23 2020 | Page 9 Page 10 | September 17-23 2020 The Financial Gazette

‘Manase steadies the ship at NSSA’

IGHT months ago, the National Social year alone. AM: During our stakehold- Security Authority (NSSA) seconded Our investment in Afrex- er meetings held in November Arthur Manase (AM), pictured, one of imbank continues to do well, 2019 we committed to holding E with NSSA receiving US$1,1 its board members, to the position of acting regular meetings with our stake- general manager. In this interview, Manase million in dividends. Key focus holders. These meetings would chronicles the journey travelled so far. into the second half of 2020 is give updates on the strategic di- on investing in real assets that rection of NSSA, together with Q: You were initially appointed to serve also have positive economic any milestones that may have as acting general manager for six months, up and social benefits. been achieved. Unfortunately, to June 2020, why was your contract extend- Q: The social impact of Covid-19 threw the cat among ed for a further six months? Covid-19 has been drastic, the pigeons and we have had to AM: I was initially appointed in Decem- how has NSSA responded to regroup and revise our engage- ber 2019 following recommendations from the alleviate the plight of pension- ment strategy. board. The minister of Public Service, Labour ers? To address this problem, we and Social Welfare, Professor Paul Mavima, AM: We have been paying recently produced the NSSA approved the extension of my contract for a fur- discretionary bonuses to pen- board chairman’s update for the ther six months, with effect from June 19, 2020. sioners since April to cushion period January to June 2020 that This was done in consultation with the office them from the impact of in- was circulated to our stakehold- of the President and Cabinet which concurred flation and Covid-1 induced ers. with the board’s recommendation. The board hardships. NSSA also donated We also continue to hold had set itself a transformation journey to restore groceries to grossly disabled board meetings and board com- normalcy at NSSA, which journey was disrupt- pensioners under APWCS to mittee meetings on schedule, ed by, amongst other things, the outbreak of the cushion them against Covid-19 although we have had to adapt Covid-19 pandemic hence the need to extend businesses and employees. The downturn in that we can return to normal business and start induced hardships. to the situation by holding them the contract further. economic activity, characterised with scaling building on the fund for the benefit of our mem- Initially, we were paying virtually. Q: What would you single out as your down of operations with reduced workforces bers, who include pensioners and other vulner- 100 percent bonuses in April Internally, staff have become major accomplishment during your reign? have negatively affected contributions inflows able groups. which rose to 150 percent in accustomed to the weekly GM’s AM: Arguably one of my major accom- to the authority. For instance, we had to defer In order to mitigate the impact of the lock- May and currently stand at Bulletin that I introduced in plishments since assuming implementation of the con- down on the operational resources, we have en- 200 percent. We are currently January. The bulletin serves to the reins at NSSA was to tribution reforms from Janu- hanced the use of electronic platforms to enable reviewing this. Further, we are inform staff on my activities as usher in a new era of sta- ary to June 2020 to provide contributors to continue making their payments engaged in an actuarial valua- well as the direction and thrust bility among staff as the respite to businesses that and meeting their obligations during the lock- tion to determine the possibility of the organisation. NSSA ship had been rocked were reeling from the im- down. We are also leveraging on technology to of further pension increments. This is also a medium by stormy waters brought pact of the virus. avail services for the convenience of clients. NSSA continues to work hard through which I communicate about by allegations of For instance, The much-needed re- The authority engaged several key stake- to ensure that we safeguard the important issues that I may want poor corporate governance forms saw the contribution holders as it seeks to plug leakages through interests of our pensioners. to bring to the attention of col- and toxic internal relations. we had to defer rates increased from sev- non-compliance by businesses. Q: As one of the biggest en- leagues at NSSA. I believe this Since then we have made en percent to nine percent The main stakeholders that were engaged tities in Zimbabwe, what role, instils a sense of pride and own- tremendous progress in re- implementation per month, split equally include local authorities and municipalities, if any, have you played in the ership of brand NSSA among storing confidence and pride between employer and em- PRAZ, ZRP, ZUPCO, Ministry of Transport ght against the coronavirus employees. among employees as testi- of the ployee. The insurable salary and Infrastructure Development and the Re- AM: NSSA was one of Q: NSSA has been without fied by a recent audit review ceiling was also reviewed serve Bank of Zimbabwe. the early responders in the a substantive general manag- that gave our industrial rela- contribution’s from ZWL$700 to ZWL$5 These engagements and collaborations are fight against Covid-1 when er since 2018, are there any tions a green rating. 000. aimed at ensuring that the requirement of the we availed two facilities, the plans to address this issue as This is a first for SS reforms...to While we are eager to SS Clearance Certificate is incorporated in NSSA Beitbridge Hotel and an organisation of this magni- and it signifies that we are maximise on contributions all procurement processes. This strategy will Ekusileni Medical Centre, for tude cannot operate like this now in an era of oneness provide respite income, we are also mind- unlock new business generation and improve utilisation by the national task forever? and team spirit. We have ful of the need to protect the compliance rate and broaden social security force. The authority also pro- AM: Following the forensic now minimised back-biting, to businesses businesses and save jobs. coverage. duced a Covid-10 guideline that audit report the NSSA board malice and the spread of As a result, we have had to Q: What about the investments division, was distributed to employers came up with a clear roadmap deliberate falsehoods about that were reeling extend clemency in the form which has perennially proved to be NSSA’s electronically. This was com- for the turnaround of the organ- NSSA. This is very import- from the impact of waivers in penalties to de- Achilles heel? plemented by a series of radio isation. One of the salient issues ant because no organisation serving cases and have com- AM: Our focus has been to invest in real shows on various stations in that came out was that NSSA can thrive without the sup- of the virus...” municated the set criteria to assets that preserve value given the inflationary needed a steady pair of hands port of its most important businesses. environment. This has paid off as the invest- to usher it to stability before a resource, the people that The waiver of penalties ment portfolio performed very well during the substantive general manager drive its strategy. and surcharges covers strug- first half of the year spurred by the equities port- could be recruited. Q: With the economy reeling from the im- gling companies lagging behind on contribu- folio that grew by a massive 1 224 percent. NSSA was burning and the pact of the coronavirus pandemic, how has tions and premiums for the period beginning The authority’s investee companies per- board believed that it would be NSSA fared in 2020? pril 2020 up until the indefinite lockdown is formed well despite prevailing economic chal- Our investment unfair to bring in a fresh pair AM: The impact of the coronavirus has lifted to allow normal business operations to lenges resulting in the authority receiving in of hands in tumultuous times been bad since we rely on contributions from resume. Our prayer is for Covid-19 to end so excess of $60 million in dividends for the half in Afreximbank and hence it opted to second a board member to lead the en- continues to tity on an interim basis. I was chosen for that task. do well with The board is pleased with what we accomplished over NSSA receiving the past eight or so months and as a result the next phase of the US$1,1 million transformation journey will be recruitment of a substantive in dividends...” general manager. This process has now begun. Q: What would you want to be remembered for the day partial fulfilment of our man- you leave NSSA? date to promote safety and AM: I would want to be health in the workplace. remembered as an honest, hard- We have also been collabo- working man who gave his all rating with some of our tripar- for the good of NSSA and its tite partners in the fight against stakeholders. My heart has al- Covid-19 and we have given ways been with the pensioners monetary assistance to some and the need to alleviate their stakeholders to support their ini- plight. tiatives in this regard. As a patriot I have always Q: You are on record as felt that NSSA as a national saying NSSA is on a trans- institution can, through social formation journey, anchored impact projects, contribute in a on transparency, honesty and meaningful way to the overall accountability, how have you development of the motherland. been accountable stakehold- This is the legacy I intend to ers? leave. September 17-23 2020 Page 11 The Financial Gazette Companies&Markets Value preservation behind Zimre, ASL owners' move Nelson Gahadza base of 2 billion-plus and shareholders’ Staff Writer equity of nearly $840 million. BRIEFS “This will increase underwriting capac- IMBABWE is witnessing a trend ity and ultimately competitiveness both in where companies, including Zimre Zimbabwe, and the region,” the company Zim inflation slows to ZHoldings Limited (ZHL), African said. Sun (AfriSun) and possibly First Mutual “It will also enhance future capital rais- Holdings Limited (FMHL), are unwinding ing efforts as the balance sheet will now be 761,02pc in August previously demerged subsidiaries for “val- anchored by a ... mixture of properties in ue preservation and charting new growth prime locations around the country,” it said. IMBB’S consumer price inflation slowed to 61,02 strategies”, analysts say. hile a “reconfiguration of I is key percent year-on-year in August compared to 837,53 percent the This comes as the economy remains buf- in extracting maximum returns” for the previous month, the statistics agency said on Tuesday. feted by a number of challenges, including ZSE-listed behemoth, ZHL also says “a On a monthly basis, prices increased by 8,44 percent com- currency volatility, high inflation and weak delink between the property portfolio and ... pared to 35,53% in July. demand, such that shareholders of the list- management services is critical in achiev- The ministry of finance has targeted annual inflation at 00 ed groups have decided to take back their ing the next growth phase of the unit, as it percent by the end of this year but analysts say a weakening property portfolios, namely: Zimre Prop- will allow the business to streamline costs Zimbabwe dollar currency and imports of the staple maize af- erties Investments (ZPI), Dawn and Pearl and enhance cash flows... to sharehold- ter successive poor harvests will keep prices high. - Reuters Properties as well as Fidelity Life Assur- ers...” ance (FLA). On the transaction, the diversified Batanai Matsika, Morgan Co’s head insurer is hoping to turn its 21 percent of Kenya budget deficit to swell of research, told The Financial Gazette that the fellow listed insurer into a majority 56 the ZHL transactions were largely informed percent stake, the former becoming a sub- ’S budget deficit for this financial year could in- by the need to consolidate market share and sidiary of ZHL and its operations being crease due to revenue shortfalls and coronavirus-related preserve value in a hyperinflationary envi- Stan Kudenga consolidated into the financials of the en- disruptions, the finance minister said on Tuesday. ronment. larged group. kur atani, who set the deficit at , percent of D “As an insurer, it is critical to maintain ciated with the deconsolidation process,” s foreign market eposure for insur- when he presented the budget in June, did not say how far market share and create capacity to under- weni said, adding the turbid market con- ance firms such as udengas give them the gap was likely to epand, adding that they were devel- write more business (and) in terms of ZPI, ditions and strategy of using the Zimbabwe room for “structuring certain financing oping a plan to cover it. this has more to do with value preserva- Stock change S as a funding mecha- deals in hard currency”, investors and an- “It might be just cutting on some expenditures, particu- tion,” he said. nism or gateway has not been very fruitful. alysts are quite upbeat about the envisaged larly the slow-moving projects, and… some state agencies With the property sector “not creating And the Equity boss noted that “the acquisitions. are doing well so we are likely to get some substantial div- good returns and value through rentals”, temptation to reconsolidate has, thus, been nd is seeking to buy by giv- idends,” Yatani said. Matsika said it was essential to “consoli- spurred by the need to seek alternative ing Nssa 65 million authorised but unissued Revenue collection underperformed by 40 billion shil- date the unit under the group and as a way funding ways”. shares of its own on the basis of one or- lings 68, million in the first two months of the fi- of containing costs as there will be no sepa- On its part, ZHL says its two-pronged dinary share for every 0,9 shares held by the nancial year, July and August, he said, adding that he will rate management”. path or approach to acquiring the entire compulsory pension fund. present a supplementary budget in December or January. On the other hand, Equity Axis (Equity) stake in I where it currently holds a The companies have not only conclud- -Reuters managing director Respect Gwenzi said the 64 percent share from 48 percent in 2016 ed other back-to-back deals, including the proposed ZHL, AfriSun and FMHL deals entails the acquisition of the remaining NicozDiamond sale in recent times, but the were “a market-wide phenomena and ma- scrip held by minorities through an open swap would only constitute 4,25 percent of Foschini sees H1 profit fall nouvres necessitated by the need to further market offer and simultaneous application the reinsurers total issued shares. SOT frica’s T epects its half-year profit to fall by align the businesses or acquired assets with for the delisting of the property firm. FLA, which operates a life assurance 20 percent as sales declined due to store closures during majority shareholders’ vision, and own “Delisting ... will ease the restructur- arm or division, funeral service, medical Covid-1 lockdown restrictions, the retailer said on Tuesday thrust”. ing of the business composition, enabling aid, asset management, micro-lending and as its shares were down more than five percent. “The moves to deconsolidate and sepa- a leaner and more focused business struc- actuarial services, has also been involved reviously known as The oschini roup, T said basic rately list property entities by FMHL, ZHL, ture,” it said in a recent circular, which also in controversial property developments and headline earnings per share would fall by 105,3 cents in the ZB Financial Holdings and AfriSun ... were updated the market about its plans to claw investments epitomised by the ang- six months to September 30, from 526,7 cents a year earlier. meant to unlock the delinked units poten- back through a share swap with the ford Estate wrangles between Nicholas van The fashion retailer said trading conditions across South tial, which mainly comes from enhanced National Social Security Authority (Nssa). oogstratens CI oldings and itself. Africa, the United Kingdom and Australia continued to be focus,” he said. With the transactions aimed at achiev- The company has also been struggling challenging, with consumer spending under significant pres- “While this remains the biggest value ing total control of the two entities, Stan for capitalisation due to high operating sure, exacerbated by further job losses and social distancing proposition ... the realisation of full value udenga’s reinsurance group also says this costs and a floundering economy. rules. - Reuters comes from funding opportunities asso- will result in ZHL having a combined asset [email protected] Page 12 | September 17-23 2020 The Financial Gazette Companies & Markets BNC’s nickel production drops Nelson Gahadza as opposed to massives, following the “This was attributed to the decrease percent, mainly due to a decrease in the Staff Writer investment in new mining equipment. in sales tonnage,” Masunda said. long-term portion of interest bearing Masunda said recovery remained con- He said cost of sales decreased by loans. ICKEL production at Bindura stant at 86,3 percent, year-on-year. seven percent from US$40,3 million Current liabilities decreased by 31 Nickel Corporation’s (BNC) He noted that the all-in sustaining last year to US$37,7 million in the year percent from US$20 million to US$14,2 NTrojan mine declined nine per- cost of producing nickel in concentrate under review, mainly due to lower pro- million, mainly due to a decrease in the cent to 5 720 tonnes in the year ended increased from US$6 610 per tonne in duction. short-term portion of interest bearing March 31, 2020 largely due to lower ore the prior year to US$7 606 per tonne ross profit in the period grew by loans and related party payables as a re- grade and lower milled tonnage. mainly due to the decrease in production seven percent from US$13,7 million to sult of a write-off. Muchadeyi Masunda, the group’s as well as the incessant increase in the S1, million, reflecting the corre- Masunda said the company main- chairman, said the decline was in line prices of local inputs, which was fuelled sponding decrease in the cost of sales. tained a number of financing facilities with ore production which was lower by the sourcing of scarce foreign curren- Operating profit however declined secured from local financial institutions than the prior year’s output. cy on the parallel market by local suppli- by 86 percent to US$2,8 million due to to finance capital ependiture and work- “Ore milled in the year under review ers for importation of inputs. the reduction in the net foreign exchange ing capital requirements. was 434 077 tonnes, compared to 443 The nickel producer's sales for the gains recognised on the introduction of He said total capital expenditure for 876 tonnes milled in the same period year declined 11 percent to 5 685 tonnes Muchadeyi Masunda the Zimbabwean dollar in the prior year the year was US$5,1 million, mainly for last year due to a two percent decrease in from 6 410 tonnes in prior year largely amounting to US$17 million, against shaft re-deepening, new dump trucks, grade,” he said. due to low production. the company for the sale of its nickel in US$0,5 million realised in the period new LHDs and exploration drilling. During the period, head grade was ccording to the financials, in spite concentrate, annual turnover of US$52,4 under review. The smelter restart project is still at 83 1,53 percent compared to 1,64 percent in of improved global nickel prices, which million was one percent lower than the Total equity increased by 10 percent percent complete while the refinery and the same period last year due to an in- led to an eight percent year-on-year in- US$54 million realised in the same pe- year-on-year while non-current liabili- Shangani Mine remained under care and crease in the mining of disseminated ore crease in the average price realised by riod last year. ties of US$30 million decreased by four maintenance. [email protected] African Century loan book contracts 47pc Omega Ukama Senior Staff Writer

FRICAN Centu- ry (ACL)’s loan Abook shrunk by 47 percent during the six months to June 2020 due to early settlements trig- gered by hyperinflation. Following the reintro- duction of the Zimbabwe dollar last year, the gov- ernment ordered the con- version of balances for Victor Gapare assets and liabilities from US dollars to the domestic currency on a 1:1 basis, but the local unit has since lost considerable ground and is now trading at 80-plus:1 against the greenback, while the country’s inflation is now the world’s second high- est at 400-plus percent. “The loan book declined significantly from 6,8 million as at December 31, 2019 to $41,08 million as at June 30, 2020 driven by early settlements by clients in the wake of hyperinflation and the depreciating e- change rate,” Victor Gapare, ACL’s board chairman said last week in the company’s results. The chairman, however, said the company’s out- look for the rest of the year was bright. “It is expected to be characterised by a stable ex- change rate to the US dollar and increased hard cur- rency trades across industry,” he said adding that the company “is in discussions with various potential pro- viders of debt funding in US dollars to kickstart the leasing portfolio”. Gapare says as the outlook for the leasing indus- try in Zimbabwe continues to be challenging, driven by shortages of foreign exchange for the importation of machinery and equipment, ACL will focus on its capacity to access credit lines specifically targeted at underwriting leases in the productive sectors of the economy, including agriculture and mining. The institution, which had traded as a focused leas- ing company since 2011, was licensed as a deposit taking microfinance institution in 2016, and this has enabled it to offer a wider range of products, while “broadening its funding base”. It recently got licensed for international banking by the Reserve Bank of Zimbabwe, which means the company can now facilitate imports and exports as well as make outward payments via telegraphic trans- fer, according to Gapare. Meanwhile, the company’s total comprehensive in- come for the period amounted to $73,17 million com- pared to a loss of $25,45 million for the comparative period. “The increase was mainly driven by fair value gains on investment property and foreign exchange assets,” Gapare said. The bank’s total assets stood at $422 million, up from $355 million as at December 31, 2020. Gapare said this movement too was driven by gains in values of property. Total deposits remained relatively flat with a slight increase from $42,03 million as at December 31, 2019, to $43,74 million. [email protected] The Financial Gazette September 17-23 2020 | Page S1

REIZ NEW PRESIDIUM AND BOARD MEMBERS FEATURE REIZ encourages firms to

adopt survival strategies

HE Real Estate Institute of Zimbabwe Several other activities were planned which ties (Platinum Member), First Mutual Properties (REIZ) has encouraged all real estate prac- were to culminate in the hosting of a joint Win- (Silver Member) and Great Zimbabwe Real Es- Ttitioners to craft realistic and cost-effective ter School with the Commonwealth Association tate (Silver Member). survival strategies, including comprehensive and of Surveying and Land Economy (C.A.S.L.E) in “We value your support and look forward to practical business continuity plans as businesses Victoria Falls. a long and mutually beneficial relationship. May adjust to the new normal. This was not to be as the dreaded Covid-19 I take this opportunity to invite other corporates Alexander Millin, REIZ's newly-relected pres- pandemic surfaced at the end of last year and to come on board as it is such support that will ident, said I will review the current five-year without warning has caused unprecedented chaos ensure the longevity and sustainability of REIZ,” strategic plan and synchronise it to meet the dic- and disruption of economic, social and political he said. tates of the new normal. activities across the world. “Together Everyone Achieves More (T.E “Allow me to encourage all real estate practi- Millin said the full impact of the virus on the A M) this is an apt acronym. It has taken a tre- tioners to craft realistic and cost-effective survival real estate sector in Zimbabwe is yet to be quan- mendous amount of teamwork to make the REIZ strategies including comprehensive and practical tified. dream work. business continuity plans that have to incorporate “imbabwe is under an indefinite partial lock- "I wish to pay tribute to the members of the smart real estate management and development down. However, there are plans to host belated REIZ board, members of REIZ and Secretariat for technology. celebrations once the lockdown measures are lift- their support and the inexorable energy expended "This should assist in keeping businesses doors ed. We have all been compelled to embrace and in working towards the attainment of our goals. open and any competition at bay. Additionally, cli- conform to the ‘new normal’. May we maintain the momentum going forward,” ents will receive value for money for exceptional "Never before have we adopted so much digi- he said To Page S2 services provided by real estate practitioners,” he tal technology to the extent that all our said in his acceptance speech. meetings and events are now being held “We will continue to lobby government for virtually. the establishment of a National Real Estate Day e successfully hosted our first in Zimbabwe as there is a need to recognise and ever virtual webinar on June 19, appreciate the critical role real estate plays in eco- 2020 which focused on the impact of nomic and social development”, he said. Covid-19 on the real estate sector in Meanwhile, Millin thanked fellow board Zimbabwe. Our virtual Winter School members for demonstrating their unwavering and 75th Annual General Meeting were support and confidence in him. held on August 13 and 14 ... respective- e said his first year as president was etraor- ly,” he said. dinary. REIZ celebrated its 75th anniversary on He welcomed three new corporate February 12, this year. members. These are Integrated Proper-

Say Good Knight to all your Property Headaches!!! CONGRATULATIONS TO THE NEW 20/21 REAL ESTATE INSTITUTE BOARD Page S2 | September 17-23 2020 REIZ NEW PRESIDIUM SPECIAL FEATURE The Financial Gazette REIZ urges REIZ Presidium profiles firms to adopt Alexander Millin – President tered Estate Agent, Registered Val- Managing Director - Property uer, Fellow of the Real Estate Insti- survival Wise Real Estate (Pvt) Ltd tute of Zimbabwe. He was overall responsible for Millin has over 27 years of ex- the management of 350 000 square strategies perience in real estate consultancy metres of lettable space on behalf and construction project manage- of 24 landlords on 125 properties From Page S1 ment work. with 1 800 tenants and an average He added that part of the key ob- Over the years, he has gained income of $1,3 million per month jectives for the year ahead include the unparalleled experience in proper- for the last 13 years. fi nalisation of the standardisation of ty portfolio management, proper- He has also valued properties valuation reports, property manage- ty sales, property valuation of all in excess of $1 billion in value ment standards, the implementation of types of immovable property and annually. He has been exposed to a robust and credible research function facilities management. many disciplines including indus- and rolling out of frequent Continuous He worked for the Mining In- Alexander Millin Brian Kashoni try, commerce, standards, corpo- dustry Pension Fund's real estate rate governance, financial services, Professional Development (CPD) pro- Institute of Zimbabwe. Property Consultancy) (2010-2015) department for over a decade and construction and negotiation. grammes for REIZ members and other He is the founder and Managing Council Member aluers was Managing Director of South- Excellence Recognition — He key stakeholders including various gov- Director of Property Wise Real Es- Council (2012 to 2014) gate and Bancroft Real Estate (Pvt) is an award winner in his personal ernment ministries. tate (Pvt) Ltd. ast aminer in aluations Ltd for a period of five years. capacity where he has been hon- “Efforts must be made collectively Millin is married to Tazreen (Real Estate Institute of Zimbabwe) to ensure REIZ retains its undisputed He has been client-side con- Achievements — Led CBRE oured by the Megafest Real Estate and they have two daughters Sha- role as the key center for excellence in struction project manager for a (Now Dawn Property Consultancy) Person of the Year (2018) meemah and Tamia. real estate training and research devel- number of residential, commercial to become the first property com- Under his leadership, his organ- and industrial properties located isation (Homelux Property Group) opment. Brian Kashoni – Vice President pany to attain and hold ISO Certifi- throughout the country. has been recognized for excellence "This can only be accomplished if Current Leadership cations in Quality being ISO 9001, Millin is a registered valuer and by the following respectable insti- our standards are benchmarked to inter- ecutive Director omelu ISO 14000 in Zimbabwe in 2003 registered estate agent. tutions; national best practices. Property Group). and recertification in 2014. He is a Fellow of the Real Estate Megafest roperty Manage- ice Chairman and Board Work Experience — Brian is a "As such we are engaging the Roy- Institute of Zimbabwe, Member of ment Firm of the Year (2018) Member the Real Estate Institute of professional real estate consultant al Institution of Chartered Surveyors the Valuers Council of Zimbabwe, Innovation — He has trans- Zimbabwe (2019-2021) with a total of 25 years’ experience (RICS) and other international profes- Member of the Master's Panel of formed the real estate practice, un- Chairman -eal state Insti- in the land & buildings valuation sional real estate organisations with a Valuers of the High Court if Zimba- matched in his local market knowl- tute of Zimbabwe Publicity Com- and advisory services for balance view to exploring possible symbiotic bwe, Member of the Project Man- edge, and sustained by bleeding mittee (2019-2021) sheet, sales /acquisitions, listing, collaborative opportunities, particularly agement Institute of Zimbabwe. edge industry-leading information ice Chairman - eal state commercialisation /privatisation, in the fi elds of training and research. Millin is the current Vice Presi- to help clients determine their strat- Institute of Zimbabwe Technical management of property portfolios. "REIZ is an active member of the dent of the Zimbabwe Construction egy, multi-year plans, and budgets Committee (2019 – 2021). Past Examiner in Valuations Zimbabwe Construction Industry Asso- Industry Association, Deputy Team at disaggregated levels. Past Leadership (Real Estate Institute of Zimbabwe) ciation and is well positioned to make a Leader of the Doing Business in He has organised information Managing Director Dawn Member of the Inaugural Valuer’s meaningful contribution to the advance- Zimbabwe Registration of Proper- about property portfolios and spe- Property Consultancy) (2015-2016) Council, a Master of the High Court ment of interests in the built environ- ty Technical Working Group and a cialised expertise to help the dis- ecutive Director Dawn of Zimbabwe Panel Valuer, Regis- ment,” he said. former examiner of the Real Estate cerning clientele. The Financial Gazette REIZ PRESIDIUM SPECIAL FEATURE September 17-23 2020 | Page S3 REIZ hosts virtual AGM HIS year, we celebrated the 75th The real estate sector annually con- anniversary of REIZ’s existence sumes 40 percent of energy globally, T as a real estate professional hence the need to plant more trees to body. The celebrations coincided with purify the air and for roof construc- our annual prestigious celebrations, tion. the Winter School and AGM on August Mr Masiyenyama a legal practi- 13 and 14, 2020 respectively. tioner with Chikwangwani Tapi Attor- These events occurred at a time neys delivered a presentation on the when the lockdown measures in re- statutory instruments that came with sponse to the Covid-19 global pan- Covid-19 Regulations which affect demic were still in place resulting in the Real Estate business in Zimbabwe both the Winter School and AGM be- from SI 135 to SI96 and SI 24. ing hosted virtually for the first time He stated that “It is very inconve- in history. nient for the real estate business to It was a successful event with over properly conduct business with limita- 50 attendees. tions imposed by the law.” Our theme this year was “Embrac- Lastly, we had K Mukuyu who pre- ing the new normal by adopting sus- sented on the building construction tainable property portfolio manage- rates in Zimbabwe. ment and investment strategy.” He walked us through what valuers Tsitsi Dzvukamanja the current should consider when valuing proper- president of the Institute of Architects ties this included specialist items like of Zimbabwe delivered a presentation fuel storage and water purification on office and retail space of the future. plants. Her presentation The plenary was centered on the Our theme this discussion moder- sustainable and adapt- ated by J Mukun- able ways to adapt to year was “Em- du-Murekachiro the new normal and bracing the new centered on how re- this includes use of six altors adopt survival feet offices, cellular normal by adopt- strategies and also offices, offices that re- come out stronger semble hospitals, bio- ing sustainable from this pandemic. philia, from open plan property portfo- A special board to open air, contactless meeting was held offices and distribut- lio management prior to the AGM ed office and rotating which was called to days. and investment consider the nomina- Dzvukamanja strategy.” tion of the new pre- pointed out that “so- sidium and secretary cial distancing is what general. will affect the way we use our spaces Alexander Millin and Brian Kasho- now and going forward as people now ni were duly re-elected as President understand the importance of staying and Vice President of the Real Estate 1.8m away.” Institute of Zimbabwe, respectively. The next speaker, a Mr Gondo from The secretary general is Eunice PRAZ presented on the overview of Chimba Mugabe and the board mem- the Public Procurement and Disposal bers include John Ndere, Abraham of Public Assets (PPDPA)Act [ Chap- Jirri, Joyline Mukundu-Murekachiro, ter 22:23]. Kudakwashe Chadambuka, Pembe- He focused more on the objec- rai Mutari, Thabani Ncube, Victor tives of the act which stressed more Wasara, Sithembinkosi Mbavhumana on achieving value for money while and Girison Afia. eliminating corruption in public pro- The success of the winter school curement. was a result of donations from the past Gondo encouraged women and the president of REIZ. youth to formally register their compa- Special mention also goes to our nies as it is currently difficult to iden- members, stakeholders and companies tify a company owned by women and that managed to send representatives the youth. to attend winter school. Mike Eric Juru presented on gover- The research desk at REIZ will be nance of sustainability in Real Estate. publishing an overview of the real es- He spoke on how the real estate sec- tate market in 2020 by the end of 2020. tor is a threat to other sectors and the Looking ahead, REIZ will be pub- need to consider these as the industry lishing monthly reports on market con- grows. ditions as from 2021.

The REIZ board members pose for a group photo earlier this year. Page S4 | September 17-23 2020 REIZ NEW PRESIDIUM SPECIAL FEATURE The Financial Gazette Meet the new REIZ board members

John Ndere: Property services manager, Pearl Proper- Masters degree in Construc- a corporate member of the registered estate agent and ties (2006) Ltd t/a Oyster Real Estate tion Project Management Zimbabwe Regional and registered valuer. She holds (National University of Sci- Urban Planners (ZIRUP) an Honours Degree in Rural John is an associate member of the Real Estate Institute ence and Technology). He and also sits on the ZIRUP and Urban Planning (UZ), of Zimbabwe. He joined the Real Estate Institute Board in started out with Crusader council. Joyline is a town Master of Science Degree July 2017. John is a registered estate agent and registered Real Estate in 2001 before planner with an undergrad- in Surveying (Universi- valuer. He has vast experience in real estate and facilities working for various other uate degree in Regional and ty of Reading), Master of management spanning over 15 years. real estate and construction Urban Planning from the Business Administration To his credit, John holds a Masters Degree in Facilities firms. In 2016 he founded University of Zimbabwe. (University of Zimbabwe) Management (University of Reading (UK)), Masters De- Dwellmart Properties, a di- She also holds an Msc in and post graduate diploma versified real estate, build- gree in Business Administration and a Bachelor of Science Surveying from Reading in real estate and agency ing construction and town University (London, UK). (REIZ). Honours Degree in Rural and Urban Planning (both from planning firm. the University of Zimbabwe) and a Diploma in Real Estate She has vast experience Kudakwashe has vast (from the Real Estate Institute of Zimbabwe). in property management, experience in property property investments, es- management, valuation and Jirri Abraham: Manag- tate agency as well as re- agency. ing director, Dwellmart gional and town planning. Properties (Private) Lim- She started her career as ited an assistant valuer with Abraham is a real estate CB Richard Ellis in 2007 and construction project and is currently the proper- management practitioner ty investments manager at with 19 years experience in NSSA. the built environment. He is a registered valuer (Val- uers Council of Zimbabwe, member of the Master of the High Court’s Panel of Valu- ers), registered estate agent and associate of the Real Joyline Estate Institute of Zimba- Mukundu-Murekachiro bwe (agency and valuation Joyline is a registered Pemberai Mutari: Princi- divisions) and corporate estate agent and associate pal registered agent & val- member of the Zimbabwe member of REIZ for over uer, Mutare Real Estate Institute of Regional and 10 years. She is a registered Pemberai has a com- Urban Planners. He holds valuer with the Valuers bined 26 years’ eperience a Bachelor of Science Hon- Council of Zimbabwe, hav- in estate agents business ours degree in Rural and ing over 11 years experi- i.e. sales, property manage- Urban Planning (University ence in valuation of various Kudakwashe Chadambu- ment, valuations and sheriff of Zimbabwe) and a Di- single properties and portfo- ka: Senior manager, CBZ auctions. ploma in Real Estate (Real lios. Joyline is a Chartered Properties He is the former man- Estate Institute of Zimba- Valuation Surveyor and Kudakwashe is an as- aging director of Eagle Es- bwe). Abraham has been an member of the Royal Insti- sociate member of Real tate Agents. He established examiner for the Real Estate tute of Chartered Surveyors Estate Institute of Zimba- Mutare Real Estate in 2009 Institute since 2007, and is (RICS) since 2015. She is bwe, chartered surveyor, To Page S5 currently enrolled for a The Financial Gazette REIZ NEW PRESIDIUM SPECIAL FEATURE September 17-23 2020 | Page S5 The secretariat REIZ board members From Page S4 ern Region Industrial and Executive Diploma in ence in real estate manage- and he is currently the Commercial Rent Board Business Leadership, a ment all of which has been principal registered agent (2009-2019). He is cur- Post-Graduate Diploma in with Knight Frank Zimba- and registered valuer. rently studying towards Education and an IODZ bwe. He is completing a Lazurus He holds an elementary a BSc Hons in Property Certificate in Corporate BSc (Hon) Degree in Real Banda: diploma from the Institute Development and Estate Governance. He is a mem- Estate Management with Bookkeeper of Certified Bookkeepers Management with the ber of the Master's Panel of the University College (ICB), Ernst and Young National University of Valuers of the High Court of Estate Management supervised Basic Finance Science and Technology. of Zimbabwe and also (UCEM), UK. Course, Management De- He has experience in real a member of the South velopment Courses and estate extending to more Africa Institute of Valu- Zimhost customer services than 27 years. ers (SAIV). He is current training. He also complet- board member of MASO, ed the Real Estate Institute a past board member for of Zimbabwe Diploma and Mkoba Teachers College the Estate Agents Council and National Blood Ser- Course. vices. He is also a civilian prison chaplain. Yamurai Eunice Chimba-Mugabe Nyamukond- iwa: Eunice is the founder and managing Examina- director of Avalon Property Brokers tions clerk irison Aa Branch & Valuers. manager, Bulawayo – She is an associate member of the Zmre Property Invest- Real Estate Institute of Zimbabwe ments (Valuation and Agency divisions) Dr Victor Wasara Girison is an associate Dr Wasara is an asso- and a registered valuer, member of the Real Estate ciate member of the Real Institute of Zimbabwe, She has a wealth of experience in Estate Institute of Zim- Estate Agents Council, excess of 20 years in the real estate babwe. He is a registered Valuers Council and the industry. real estate practitioner and Sithembinkosi Mbavhu- Royal Institution of Char- She worked for various real es- valuer. Dr Wasara has vast mana: Salaried Partner tered Surveyors. He holds tate firms including Fox and Carney, Rutendo Thabani Ncube: City experience in real estate – Knight Frank Zimba- a degree in financial man- Seeff Properties, Mercers Property Fortunate Valuer and Estates Man- supported by a host of bwe agement from UNISA. Brokers and Sommerfield Real Es- Horonga: ager - City of Bulawayo professional and educa- Sithembinkosi is an as- He worked for Bard Real tate. She has experience in property Quantitative Thabani is the city tional qualifications and sociate member of the Real Estate and he currently management of both residential and research valuer & estates manager is a holder of an honorary Estate Institute of Zimba- works for ZIMRE Prop- commercial properties, sales and analyst for the City of Bulawayo. Doctorate in Humane Let- bwe (REIZ), a registered erty Investments Limited; property valuations. She worked in He is a Fellow of the Real ters. He holds a Masters estate agent and an asso- specialising in valuation the human resources department in Estate Institute of Zimba- Degree in Marketing Strat- ciate member of the Royal and commercial practice, the Post and Telecommunications bwe, registered valuer and egy (MSU), BCom Hon- Institution of Chartered attaining 21 years of expe- Corporation prior to joining real es- estate agent. He is the past ours Degree in Marketing Surveyors (RICS). He has rience from the two assign- tate. vice chairman of South- Management (MSU), an more than 10 years experi- ments. Page S6 | September 17-23 2020 The Financial Gazette

MASHONALAND HOLDINGS Congratulatory feature for the New Chairperson and Deputy Chairperson

Bema is new Mash Holdings chairperson ASHONALAND Holdings has ap- market in a negative way in the sense that profi t- over 20 years’ experience in both the private and pointed Grace Bema as an independent ability has gone down,” Bema said. public sectors. She holds a Bachelor of Laws (LLB) Mnon-executive chairperson of the board “l would say the residential part has not been degree from the University of Zimbabwe. with effect from August 26, 2020. affected that much because obviously people still Bema said she desires to see Mash Holdings in- Bema is a partner at Brian Colquhoun Hugh need somewhere to live but when it comes to the re- creasing shareholder value and reduce voids in the O’Donnel and Partners (BCHOD Consulting En- tail, commercial and offi ce space, that’s where there imbabwe Stock change listed fi rm’s properties. gineers). has been a great and negative impact where we are “Currently we are doing pretty well in terms of She brings to the board a wealth of experience seeing a lot of tenants leaving,” she said. voids but I would like us to reduce voids,” she said. in the built environment, having successfully com- “The collections are very low because almost A report by Integrated Properties (IP) recently pleted several big projects in Zimbabwe and the all sectors have been affected by the Covid-19 pan- said that a huge shift in the way Zimbabwe’s bank- United States of America. demic so I would say collections are the main chal- ing sector operates had pushed real estate investors Bema is particularly interested in the use of lenge that we are facing as an industry. The valua- to the brink as major fi nancial institutions pulled environmentally friendly systems in the built en- tion of properties has gone down. That has reduced out of prime properties to avoid steep write downs. vironment to protect the environment and future profi tability. This makes it diffi cult to attain some It said so dire is the pushback that 40 percent generations. of the goals.” of available high yielding offi ce space has been In an interview with The Financial Gazette, Bema holds a BSc Honours degree in Civil En- deserted by corporate giants including banks amid Bema said the commercial property market has gineering and MBA both from the University of measures to scale down physical branch networks been the worst affected by Covid-19 induced lock- Zimbabwe, and a Master of Science in Sustainable and resorting to e-banking channels. downs that started in March. Systems from Slippery Rock University in Penn- In a review of the second quarter of 2020, IP Bema, who is also the Zimbabwe Association sylvania S. She is a certifi ed rince2 practi- attributed much of the real estate slowdown to the of Consulting Engineers vice-president, told The tioner. deadly Covid-19 pandemic, which forced banks Financial Gazette that there has been a sharp slow- She has served on the Mash Holdings board as to ride on recent massive investments into digital down in demand for offi ce and other commercial an independent non-executive director since No- platforms to serve customers under blanket lock activities as businesses cut costs to ride out the vember 2019. downs. Covid-19 induced storms. Bema replaces Ronald Mutandagayi who “Covid-19 brought up the critical importance of The pandemic has also reduced demand for served as board chairperson from September 2015. embracing digitalisation, which saw the emergence consumer goods, forcing many retail and wholesale However, Mutandagayi will continue to serve and recognition of mobile banking and online fi rms to downsie in the past si months, although on the board as a non-executive director. banking resulting in the closure of banking halls operations have been slowly returning to normal. Bema will be deputised by Petronella Musarur- which used to attract the best rentals,” IP said in Grace Bema “Covid-19 has basically affected the property wa, an accomplished senior legal practitioner with the report titled Q2 Property Market Report 2020. The Financial Gazette MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE September 17-23 2020 | Page S7 Musarurwa named Mash Holdings deputy chairperson

“As such, rental growth will continue to lag behind infla- real estate investments in the Zimbabwean market. tion in the short to medium term. The property development The company occupancy levels remained unchanged at 79,2 sub-market remains subdued as real estate demand slows,” he percent from the previous quarter. Petronella Musarurwa said. “The conversion of the development pipeline into leases has He said tenants’ rent paying capacity has been negatively been affected by the lower demand for rental space, especially ETRONELLA Musarurwa has been ap- affected by the Covid-19 related restrictions. in the CBD office sector where the group has the highest Gross pointed as Mashonaland Holdings (Mash This in turn has affected the inflation-hedging attribute of Lettable Area (GLA) concentration,” Peresuh said. P Holdings) non-executive deputy board chairperson. She is an accomplished senior legal practi- tioner with over 20 years’ experience in both the private and public sectors. She holds a Bachelor of Laws (LLB) degree from the University of Zimbabwe. Petronella has been serving on the Mash Hold- ings since October 2014. Mash Holdings) spent $10,6 million on prop- erty development during the third quarter ended June 30, 2020. In a trading update, the firm said projects are on-going especially in the owner-occupier sub- market and also in the residential sector. “This outlay covered the pre-purchase of ma- terials and professional fees towards the con- struction of the 25-cluster houses in Bluffhill, set to commence in the third quarter of 2020. “The project team is currently adjudicating the tenders for the project,” Batanai Peresuh, the company secretary said. Mash Holdings said fair values for investment properties as at March 31, 2020 were maintained for the quarter ending June 30, 2020. The company recorded a 21 percent increase in rental income to $77,71 million compared to the same period in the prior year attributed to the quarterly reviews that Petronella is an were implemented accomplished senior from February 2019 legal practitioner and continued into the current financial with over 20 years’ year. experience in both “New lettings also the private and pub- had a positive impact lic sectors. She holds on the rental income a Bachelor of Laws growth for the quar- (LLB) degree from ter ended June 30, the University of 2020. Rent reviews Zimbabwe. Petronel- were however, tem- la has been serving porarily suspended on the Mash Hold- for the period May to ings since October June 2020 in a bid to 2014. assist tenants during the lockdown period, notwithstanding the runaway inflation,” Peresuh said. Occupancy levels at June 30, 2020 increased by three percent to 79 percent compared to the same period in the prior year. Mash Holdings continued implementation of cost containment efforts and this has led to a re- duction in expense to revenue ratios. Property expenses to revenue ratio for the quarter under review was 16 percent compared to 18 percent achieved during the same period last year. The administrative expenses to revenue ra- tio for the quarter ended June 30, 2020 was 26 percent compared to 27 percent achieved in the previous year. Peresuh said the property market, particular- ly the office sector, has been the most affected by reduced demand for space as businesses have been affected by the slow-down in economic ac- tivity due to the Covid-19-induced lockdowns. The retail sector has however, been relatively resilient, especially the essential services sector, despite restrictions on operating hours. “Broadly, across the market, the continued de- cline in capacity utilisation and economic hard- ships continues to negatively affect tenants’ rent paying capacity. Page S8 | September 17-23 2020 MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE The Financial Gazette Our history . . .

Property portfolio ASHONALAND Holdings Limited (MHL) CONGRATULATIONS! owns several properties in diversifi ed property Msectors and geographical locations, with a gross lettable area of over 110,000 square metres and land banks in ecess of 1 million square meters across the country. The property portfolio is distributed across offi ce, re- tail, industrial, residential and health sectors with footprint across major cities such as arare, Bulawayo, wekwe and Mutare. otable property investments owned by Mashonaland Holdings Limited include the following:

ZB Life Towers

The Board, Management and Stuff of Tencraft Construction (Pvt) Ltd wishes to express its profound and heartfelt congratulations to Eng Grace Bema on her appointment as the Chairperson of Masholdings.

May the future bring you more success.

Makorokoto! Amhlophe! ZB Centre Bulawayo

Website: www.tencraft.co.zw | Facebook: tencraft construction Email: [email protected] | Phone: +263 242 447201-3 3 Kelvin Road North, Graniteside Continued on Page S9 The Financial Gazette MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE September 17-23 2020 | Page S9 Mash Holdings property portfolio

OK Houghton Park, Harare Charter House, Harare

Chiyedza House

The property portfolio is distributed across ofce, retail, industrial, residential and health sectors

21 Natal Road, Belgravia, Harare Continued on Page S10 Page S10 | September 17-23 2020 MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE The Financial Gazette More Mash Holdings properties . . .

Ruwa Industrial West End Clinic, Harare

Jet Store, Harare

ZB Centre, Mutare

Blufhill Industrial, Harare The Financial Gazette MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE September 17-23 2020 | Page S11 Upcoming property developments ASHONALAND Holdings Limited also holds a number of undeveloped landbanks M in excess of 1 million square metres for future development in line with market require- ments. The properties, strategically located in Harare, Ruwa, Bulawayo, Kwekwe and Nyanga are suitable for various uses including mixed-uses. 1. Bluff Hill Cluster Housing Project An upmarket cluster housing development will de- liver 25 units in the low-density suburb of Bluff Hill, Westgate. The development is targeted to commence in Oc- tober 2020. The 2,3ha land was serviced in 2019 and the detailed project designs have been complet- ed. The design concept incorporates some greening features as the company plays its part in ensuring sustainability in the built environment. The concept design offers two types of single storey cluster houses on 900m² stands in a gated community.

2. ZB Life Towers Co-working space

ZB Life Towers boasts of a modern design feel, unparalleled views around the city and immediate proximity to the historic Fort Grid now known as Africa Unity Square. The building offers fully functional, modernised and reliable building services including modern el- evators, a synchronised heating, ventilation and air conditioning (HVAC) system, affording a comfort- able environment for its users, standby alternative power supply for the entire building. The company is currently working on setting up of a co-working hub in the 18th floor to enable smart working and ensure pay-per-use flexibility for short stay space users. The concept design offers a variety of both shared and private work spaces to cater for varying modern business and office requirements. The project team is currently finalising designs and project appraisals.

The company is currently working on setting up of a co-working hub in the 18th floor to enable smart working and ensure pay-per-use flexibility for short stay space users. Page S12 | September 17-23 2020 MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE The Financial Gazette Upcoming property developments

3. Ruwa Mixed land use Harare-Mutare highway. The proposed development development seeks to respond to the market needs captured in the extensive In order to achieve the highest and catchment area survey undertaken by best use, and in response to the require- an independent expert in 2019. ments of the growing catchment area, As such, the proposed develop- the company successfully applied for ment intends to further the general change of use from recreational use to welfare of people in Ruwa, as well as a mixed-use proposed development for their communities, by creating a con- its Lot C land bank in Ruwa. venient, efficient and attractive envi- The land, measuring 42ha in ex- ronment for present and future genera- tent, enjoys prime frontage along the tions to utilise.

KEY: E,H,G - commercial A – residential F – flats, high value, high density B – neighbourhood shops I – hotel facility C – public institutions J – open space & recreation D – medical institutions K – art displays (road buffer)

4. Office Building - 9 Natal outdoor experience whilst the use of deciduous trees ensure some shade in Plans are afoot to develop a be- summer and filtered sunlight in win- spoke and modern Office Park for an ter and, as such manage artificial tem- identified corporate occupier. perature control. The proposed three-storey build- The roof of the building is designed ing again offers an opportunity for the to house enough solar panels to gener- company to advance its Responsible ate electricity to meet the entire build- Property Investment thrust. ings demand. The modern urban landscape de- The Northern facing and gently signed within and around green spaces slopped roof would provide the perfect will provide occupants with pleasant aspect for a solar PV installation. The Financial Gazette MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE September 17-23 2020 | Page S13 Upcoming property developments

5. Charter House proposed repurposing to a Boutique hotel

In pursuit of revitalizing the asset, the project en- tails the conversation of the CBD office building into a five-star boutique hotel. The change of use permit has been issued and op- erator secured. The new 80 room boutique hotel, primarily caters for the business and travel community, is strategically located for easy access from the . . Mugabe Inter- national irport, Bulawayo, Mutare, the orthern sub- urbs of arare and beyond.

Services we offer Property Management Proect Management aluations and Property Investment advisory Property Sales and Acuisition

ASHONALAND oldings imited Mash oldings limited manages its own property Mportfolio worth over US$80 million in vari- ous sectors and in geographical locations. In addition to managing its own portfolio, Mash oldings manages properties owned by our proper- ty-owning clients. Our services to these clients include leasing and leasing renewal, rent reviews, monthly rent collec- tions and disbursement to our clients, monthly op- erating costs charging and payments to all service providers, payment of taes, investment advisory and quarterly reporting. Mash oldings also offers end-to-end project man- agement services for its eternal clients from project formulation to handover of a completed development. roject management services include but not lim- ited to facilitating write up of project brief, project formulation, appointment of Consultants, prepare, co- ordinate and monitor a project initiation programme, coordination of the design by the design team, manage the tender process and recommendation of appropriate contractors for approval, regularly monitor the per- formance of the contractor against the contract pro- gramme, prepare monthly project reports, coordinate and epedite the preparation and agreement of the fi- nal account and preparation of project closeout report. s a diverse property team Mash oldings also of- fers property valuation and investment advisory. Mash oldings carries out valuation for different purposes such as property disposals and acquisition. Charter roperties, a wholly-owned subsidiary of Mash oldings, is registered with the state gency Council of imbabwe. It is through this vehicle that Mash oldings also offers Consultancy services to corporate, institutional and individual clients.

ur services to these clients include leasing and leasing renewal, rent reviews, monthly rent collections and disburse- ment to our clients, monthly operating costs charging and payments to all service provid- ers, payment of taes, investment advisory and uarterly reporting. Page S14 | September 17-23 2020 MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE The Financial Gazette Mash Holdings: Our team

ASHONALAND Holdings Limit- Mash Holdings has artisans in various ed (Mash Holdings) is comprised fields electrical, plumbing, mechanical en- Mof a dynamic and innovative gineering and CCTV experts that offers in- workforce with a diversity of experience in house repairs and maintenance services thus various real estate markets. increasing efficiencies and ensuring direct We are committed to providing the most cost management. suitable real estate investment solutions to Mash Holdings has a strong digitalisation our clients’ business requirements with ex- strategy backed by a relevant all-encom- treme focus on the customer. passing MDA Property Management soft- Mash Holdings is well-resourced with ware. eperienced and qualified real estate prac- Mash Holdings’s experience as a real es- titioners. tate investment firm is over 0 years indicat- Through its workforce, the company is ing the capability of our robust organisation. affiliated to the oyal Institute of Chartered For all your space and property consul- Surveyors (RICS), Estate Agents Council of tancy requirements please get in touch with Zimbabwe (EACZ), Real Estate Institute of us. Zimbabwe (REIZ), Zimbabwe Regional and We have available space to let in the CBD Urban Planners (ZIRUP) among others. of Harare, Bulawayo and Mutare. Impact of Covid-19 on Mash Holdings HE group occupancy levels have remained unchanged at 79,2 percent during the third T quarter ended June 30, 2020 from the pre- vious quarter. The conversion of the development pipeline into leases has been affected by the lower demand for rental space, especially in the CBD office sec- tor where the group has the highest Gross Lettable Area (GLA) concentration. In addition, the Covid-19 pandemic has had the following impact on the business Average collections to revenue decreased from percent in the previous quarter to 1 percent in the quarter ended June 30, 2020. Tenants’ rent paying capacity has been neg- atively affected by the Covid-19 related restric- tions. This in turn has affected the inflation-hedg- ing attribute of real estate investments in the Zimbabwean market. The group is constantly engaging its service providers to reduce operating expenses, including property maintenance costs, to minimize the fi- nancial impact of Covid-19 to the business. Operating environment The country witnessed a significant increase in coronavirus infections during the quarter ended June 30, 2020. Government resultantly implemented a nation- al lockdown, aimed at curbing the spread of the virus. This, however, slowed down economic activity across all sectors. The World Bank anticipates that the Zimba- bwean economy will have contracted by 10 per- cent by December 2020. The introduction of the foreign exchange auc- tion system has improved availability of foreign currency and has seen a 128 percent depreciation in the exchange rate from the fixed exchange rate of SD1 to 2 to SD1 to as at June 30, 2020. The property market, particularly the office sector, has been the most affected by reduced de- mand for space as businesses have been affected by the slow-down in economic activity due to the Covid-19 induced lockdowns. The retail sector has however, been relatively resilient, especially the essential services sector, despite restrictions on operating hours. Broadly, across the market, the continued de- cline in capacity utilisation and economic hard- ships continues to negatively affect tenants’ rent paying capacity. As such, rental growth will continue to lag be- hind inflation in the short to medium term. The property development sub-market remains subdued as real estate demand slows. A few projects are, however, on-going espe- cially in the owner-occupier submarket and also in the residential sector. The Financial Gazette MASH HOLDINGS CONGRATULATORY SPECIAL FEATURE September 17-23 2020 | Page S15 Property sellers shun mortgages

ELLERS of residential s at June imbabwe’s in- The property consultancy inflation is likely to stop them. properties are preferring flation was at ,26 percent, firm said judging by global urther, with the sellers not Scash buyers to mortgage according to the country’s na- trends where mortgage re- prepared to sell their proper- backed financing due to rising tional statistical agency. payment has to be around 25 ties through mortgages, there inflation, a new report has said. “The issues surrounding this percent of monthly income, are very few transactions that In their second quarter prop- are twofold as in the process of the assumed income for one would take place,” I said. erty market report for the peri- mortgage application approval to qualify for a mortgage in Intergrated Properties said od ending June 0, Intergrated processes need to be shortened the high density surburb is mortgage lenders were adopt- roperties I, a leading real and secondly, government bu- 262 00 monthly. ing backward integration and estate consultancy firm said reaucracies on property transfer “The affordability question embarking on housing devel- with inflation skyrocketing, and bond registration processes has to be addressed on two opments which they provide sellers now prefer cash custom- need to be revamped,” the firm fronts the values of our prop- mortgages on without the un- ers to mortgage backed acquisi- said. erties and the general income due pressure chasing inflation. tions. IP said the issue of afford- level,” said I. “urther, the diaspora has “Mortgage approval, trans- ability needed to be addressed Sellers now prefer cash buyers to mortgage nancing due to ination ith inflation fast approach- become an attractive mortgage fer and bond registration pro- as many properties were be- 000 at an interest rate of 35 afford it at all, let alone the per- ing 1 000 percent and interest market as the repayments are cesses have their own gestation yond the reach of many home percent. This means in the first ceived middle-income earners,” rates fied at percent, lend- inflation risk free. Mortgage periods which unfortunately seekers, year, monthly interest payment I said. ers have a choice of relocating brokering which has been invis- sellers cannot wait for as the “With a standard high-den- alone is 6 62 before in- They said capacity and af- funds where they can get real ible in our market has to be con- real values will be eroded by sity property pegged at US$30 surance and capital repayment. fordability of the mortgages is returns. sidered, with authorities having the time they receive their pro- 000 at a rate of say , The target market for the partic- in question, making the mort- “As much as banks could to put the necessary regulations ceeds,” said I. the value becomes ZWL$2 250 ular house type and size cannot gage product a difficult sell. be willing to give mortgages, in place,” I said. Property valuation challenges emerge

IMBB’S currency alterations have created property valuation challenges amid indications Zreporting firms are encountering difficulties trans- lating values across currencies and time. This piles on the trouble created by the Harare admin- istration’s monetary policy gyrations chiefly its pre- mature re-introduction of the imbabwe dollar which have not only rendered financial statements meaningless, but also landed the country in its second episode of hy- VACANCY IN THE PROGRAMMES MANAGEMENT UNIT perinflation in a decade. VACANCY IN THE PROGRAMMES MANAGEMENT UNIT “Property valuations rely on historical market ev- The Government of the Republic of Zimbabwe received grants form the African Development • Scopes of work for technical assistance to be deployed in support of coordination work idence for calculation of inputs. Such market evidence BankThe and World Government Bank, to finance theof followingthe Republic projects: Youth of and Zimbabwe Women Empowerment received streamsgrants form the African Development Bank does not eist at present to calculate values,” Project (YWEP), Institutional Support for the State Enterprise Reform and Delivery Project • Terms of reference for technical assistance to design and implement a program of capacity (ISERDP),and Africa World Disaster Bank, Risk Financing to finance Programme the(ADRiFi) following under the African projects: Development Youth buildingand Womenwithin Government. Empowerment Project (YWEP), nthony Mandiwana, TS’s board chairman said in the bank.Institutional The World Bank funded Support projects arefor the the Public State Financial Enterprise Management Enhancement Reform and• Delivery Inputs for monitoring Project and evaluating (ISERDP) recovery, Africa planning andDisaster service delivery Risk progress company’s 201 annual report published recently. Project (PFMEP) and the Zimbabwe Recovery and Resilience Project. • Routine reporting of recovery planning and implementation progress e said the independent property valuers of the group, Financing Programme (ADRiFi) under the African Development• Communication bank. strategy The and World output Bank funded projects which has a thriving real estate segment, were conflicted POST:ar PROGRAMMEe the Public OFFICER Financial (x2) Management Enhancement Project• Documentation (PFMEP) of lessons and learnedthe Zimbabweand good practices Recovery and for eample, about converting values at the official e- Duties and responsibilities: The Programme Officers shall: change rate and ended up settling for a makeshift meth- The Resilience Project Officers shallProject. have the overall responsibility to support all project management 2. Selection Criteria odology. aspects of the World Bank-financed Recovery and Resilience programming, including the • Minimum degree or advanced degree from a recognized academic institution in Disaster following duties: Risk Management an added advantage or similarly in Geography, Environment, Urban “iven the concerns, the directors have elect- POST: PROGRAMME OFFICER (x2) ed to use a much more conservative basis to value the Planning, Hydrology, Public Policy/Administration, Natural Resources Management, or Support the development of analytical and TA activities accompanying project preparation and other related field. group’s real estate portfolio the actual S rental implementationDuties and responsibilities: The Programme Officer• Ats least shall: five years of relevant experience in the areas related to disaster risk management, yield achieved in the year of five percent to determine • Develop coherent recovery and resilience coordination arrangements within GoZ to natural hazards, disasters, humanitarian affairs, vulnerability assessment, climate change, the value of the underlying property portfolio,” ensure it speaks with once voice, coordination between the central and sub-national level resilient infrastructure, and, DRM Policy, Strategy, and Institutions; Familiarity with disaster Mandiwana said, adding that users of the figures should The(national, Project provincial, Officersdistrict) and between shall GoZ have and its the partne overallrs. responsibility torisk support management all institutions project and governancemanagement concepts, emergency aspects preparedness of and take caution. • the Collaborate World with Government Bank-financed and partners throughRecovery existing platformsand Resilience or new platforms programming,(as recovery strategies, including and a range the of followingdisaster risk financing duties: alternatives. urther, he said the group’s financial statements were needed) to develop and support the implementation of aligned procedures for identifying, • Experience of working in Zimbabwe and with government agencies at national and not prepared in compliance with accounting standards. measuring, and reporting on recovery and resilience needs and priority responses. subnational levels. This comes as laws gaetted by government to sup- • S Facilitateuppo thert process the of dconsolidatingevelopm Governmentent o frequests ana toly partnerstical for a urgentnd recovery TA a cti•v iti Provenes a abilitycco tom communicatepanying effectively proj eandct develop pre writtenpara contenttion and a presentationsnd for port the return of the country’s domestic currency have and resilience building, as well as capacity needs to anticipate and reduce future disaster different audiences. iriskm pandle betterme ncoordinatetation its responses, informing partner funding. • Demonstrated professional/technical skills and project management experience, trouble made it impossible for reporting firms to comply with • Support GovernmentDevel op to decide coherent internally recovery how to prioritize and requests. resilience Develop andcoordination shooting andarrangements problem-solving capabilities within with respectGoZ to clients, ensure superiors it and peers. international standards, particularly the rules concerning coordinate an inclusive, Government-led process of systematic and criteria-based • Ability to work in a team with demonstrated interpersonal skills, but to also take ownership translation of currencies. sectoral and geographicspeaks prioritization, with once temporal voice, sequencing, coordination and investment planningbetween for theof central assigned tasks, and work sub-national independently, requiring level only general(national, guidance even on complex “The reporting period was characterised by multiple preparedness,provincial, recovery, and resilience district) building and that is betweenclimate and conflict GoZ sensitive; and to its be partners.issues. echange rates and therefore the board advises users discussed and validated at the community-level. • Willingness to travel extensively within Zimbabwe, to eercise caution in the interpretation of these state- • Assist in the design,Collaborate conceptualization with and operationalizationGovernment of emergency and partners recovery aid through• Proven existingstrong leadership platforms and communication or new skills andplatforms ability to work (ascross�sector and ments,” Mandiwana said. tracking systems,needed) and institutional, to developfinancing and andprogram support management theframeworks implementation for lead inter� disciplinaryof aligned teams, procedures for identifying, This also comes as the Insurance and Pensions Com- disaster recovery.measuring, and reporting on recovery and resilience• Demonstrated needs ability and to workpriority effectively responses. with Government officials and technical staff and mission has insisted that the local insurance and pensions • Provide specialized support for carrying out impact and needs assessment diagnostics, with other DRM stakeholders, decision supportFacilitate systems, andthe strategic proc planningess of and consolidating using market capacities Government and • Management requests skills, with to a provenpartners record of forproblem�solving urgent capability recovery and a proven ability industry should review its asset valuation framework, leveraging governmentand resilience capacities for building,activities such as hotspot well mapping,as capacity aid tracking needs toto conceptualize, anticipate design and and implement reduce major future projects. disaster risk after “botched” appraisals knocked a combined S8 systems, disease surveillance systems, etc. billion off their balance sheets last year. This drove the • Assist in the assessment,and better design, coordinate conceptualization, andits operationalizationresponses, of informingcommunity- 3.partner Duty Station funding. regulator earlier this year to issue specific guidelines for based emergencySupport recovery andGovernment disaster risk management to decide investmen ts.internally howThis to isprioritize a local appointment, requests. and the candidateDevelop will be and housed coordinate within the Ministry of Local value translation in times of a currency change. Government and Public Works, DCP in Zimbabwe. Meanwhile, the currency ambiguity created by gov- Implementation Supportan inclusive,for Ongoing Operations Government-led process of systematic and criteria-based sectoral and geographic ernment’s constant currency tinkering, which started in • Help governmentprioritization, in preparing project annualtemporal work plans sequencing, and implementation schedules.and investment 4. Duration planning for preparedness, recovery, and • Support government in reporting on and communicating progress and results achieved The assignment is for 8 months with probability for extension. October 2018 with the ring-fencing of nostro and domes- resilience building that is climate and conflict sensitive; to be discussed and validated at the tic balances, has worsened challenges for reporting firms. internally and for donors. • Develop scopecommunity- of work and terms level.of reference for technical assistance to be deployed to 5. Reporting “The question of whether the economy is de-dollaris- support emerging coordination work streams, including for capacity building. The Project Officers will directly report to the Director/ Deputy of the Department of Civil ing or re-dollarising forms a big part of fair presentation • Assist in the developmentAssist in and managementthe design, of new resourceconceptualization mobilization opportunities. and operationalizationProtection. of emergency recovery aid of financial statements from a policy perspective, we tracking systems, and institutional, financing and program management frameworks for are looking at de-dollarisation, but what is on the ground Support for Community, Partner, Donor and Government-internal Relationship Management Submission of applications: points to re-dollarisation,” nesu Daka, a local account- • Help establishdisaster and maintain recovery. strong working relations with partners, donors, and other Interested persons should submit their applications with detailed CV, certified copies of ing standards epert, told a Chartered ccountants cad- humanitarian Provideand development specialized actors within the contextsupport of the p roject.for carrying outcertificates impact on the andaddress needslisted below assessmenton or before close of businessdiagnostics, on the 1 October 2020. emy webinar recently. • Strengthen state/non-statedecision partnerships support for thesystems, delivery of recovery, and resiliencestrategic building planning and The post and being using applied formarket should be writtencapacities on the envelope. and leveraging “hile we still have not solved the issues of the past preparedness; for us to get clean opinions, the second coming of the S • Support governmentgovernment on collaborative capacities approaches tofor working activities with humanitarian such and as hotspot mapping,Secretary foraid Finance tracking and Economic systems, Development disease development actors, identifying opportunities for programming at the humanitarian- Mgandane Dlodlo Building dollar is bringing more challenges,” he said. development surveillancenexus. systems, etc. 3rd Floor, ‘B’ Block ollowing the reintroduction of the domestic currency • Maintain understandingAssist ofin humanitarian the assessment, and DRM-related developments, design, response conceptualization, plans, Cornerand Samoraoperationalization Machel Avenue/Simon Vengayiof community Muzenda Street- last year, government banned the use of other currencies and good practices. Harare in “local transactions”, but widespread use of the S based emergency recovery and disaster risk management investments. dollar continued in the growing informal economy amid 1. Outputs and Deliverables: Or post to ; rapid deterioration of the local unit. The following outputs and deliverables are expected as a result of this contract to provide project Secretary for Finance and Economic Development urther, the government this year rescinded the ban management support to the DCP for the World Bank-financed recovery and resilience portfolio: P. Bag CY 7705 on the use of foreign currencies, even though it insists the • Recommendations for the alignment of planning procedures Causeway economy is on a clear path to de-dollarisation. • Documentation in the form of policies, guidelines, SOPs, and work plan/budget Harare nd eperts say the currency ambiguity has been worsened by the recent introduction of a civil service “nostro-payment”. September 17-23 2020 | Page S16 The Financial Gazette Gordon Addams Condolence Feature Industry mourns top hotelier Addams

Gordon Addams HE tourism industry this week mourned one of its most respected travel and tourism operators in Zim- Tbabwe, Gordon Addams. Addams died in the Eastern Highlands city of Mutare after suffering a heart attack. He was 60. Born and educated in Mutare, his family was prom- inent for farming in Odzi. His father, popularly known as ‘Doomps,’ was killed in the war of liberation in 1974 and his mother, Veryann, died in 2009. Both are buried outside the picturesque church of St Francis of Assisi near Odzi. Addams leaves behind two sisters and a brother, all liv- ing abroad. After school, Addams studied hospitality management at the famed Hotel School at Bulawayo Polytechnic and grad- uated in 1982. He undertook in-service training around Zim- babwe, as well as at Selsdon Park in the United Kingdom and in 1983 joined the Cresta Hotels group, where he rose to become general manager of Cresta Jameson. He left Cresta in 1991 to establish his own hotel group, Inns of Zimbabwe, centred in the Eastern Highlands and on routes into the area. At one point Inns of Zimbabwe operated country hotels in Nyanga (Inn on Rupurara and Pine Tree Inn), outside Mutare (Inn on the Vumba), near Chipinge (KIledo Lodge), close to Great Zimbabwe (Inn on Great Zimbabwe), in the Save Conservancy (Mukwazi Safari Lodge) and in northern South Africa (Inn on Louis Trichardt). After downsizing and then dissolving this operation, he realised a lifelong ambition in 2017, opening his own bou- tique bed and breakfast venue in a converted 1900s sub- urban house in Mutare, creating a popular and successful nine-suite unit. Addams was active in travel and tourism leadership, serving as vice president of the Hospitality Association of Zimbabwe, as well as Eastern Highlands chairman of the Zimbabwe Council for Tourism, now Tourism Business Council of Zimbabwe. He was also a highly regarded men- tor, with hundreds of industry professionals receiving his guidance in his almost 40 years in the travel and tourism sector. He created Best of Zimbabwe, an informal marketing and promotional grouping of more than 30 establishments across Zimbabwe, and liked to others in neighbouring coun- tries through his innovative InnSider Card discount scheme. Addams, his staff and his establishments won many local, regional and international accolades over the years, and in 2015 he was presented with a prestigious Lifetime Achievement Award by the TBCZ in its Tourism Achiev- ers’ Awards that year. His greatest passion was Zimbabwe’s Eastern Highlands, which he promoted with vigour and cre- ativity for almost 30 years. Tributes have been flowing in from all over the world, with particular commendation for his professional style, ex- ceptionally high operational standards and his commitment to Zimbabwe and its travel and tourism sector. Paul Matamisa, chief executive of the TBCZ and long- time personal friend of Addams said “His passing is the end of an era and he was a legend in our industry. He will be greatly missed.” The Zimbabwe Tourism Authority (ZTA) described him as a dedicated and passionate hotelier. “Addams developed a new concept in Mutare, The Gor- don’s on 125 First Street, a boutique hotel created with the intention of providing a welcoming and comfortable upmar- ket accommodation environment,” said ZTA The Financial Gazette September 17-23 2020 | Page 13 Companies & Markets CBZ jumps to the top on ZSE Adelaide Moyo some extent the sterling share performance Staff Writer is attributable to human resource structural changes undertaken by the group at the be- HE Zimbabwe Stock Exchange (ZSE) ginning of the second quarter,” he said. is now valued at 211 billion up “Counter liquidity is high on CB giv- Tfrom 2 billion at the beginning en its huge public shareholding necessitat- of the year, with CBZ Holdings accounting ing traded volume dominance in relation for a fifth of that value. to peers. The most liquid counters usually The financial services group, which trad- dominate rallies given the thin breadth and ed at $53 on Wednesday, is now valued at a depth of our stock market.” staggering billion. In a trading update for the quarter to Delta’s market value is now $28,742 bil- March, CBZ said it anticipates the operat- lion, while Econet and Cassava are worth ing environment to remain uncertain on the $12,957 billion and $11,429 billion respec- back of the Covid-19 outbreak but said the tively. This comes as CB has “unshackled disruptions will have minimum effects on its itself” from the American government’s operations, which can be migrated to online sanctions and a fine. platforms. Lloyd Mlotshwa, a director at IH Secu- During the period under review, the rities, said the removal of the United States’ group’s total assets grew to $29 billion from Office of oreign ssets Control OC 20 billion during the same period last year. S8 million fine “has been part of CB’s Deposits also grew to $20 billion from story and is a significant development”. $16 billion in the same period last year while “owever, prior to that there had been a advances grew to billion from billion. significant restructuring eercise, reconsti- fter ta profit grew significantly to tuting the board and making several senior $312 million from $82 000 last year in the management changes. This may also have same period comparable. been well received. owever, I believe the However, the group noted that transac- bulk of the upward movement in the price tional volumes declined during the lock- was the result of a strategic buyer accumu- down period as a result of restrictions in lating a sizable stake in the business in the movement and the requirement that only es- market I believe this drove market cap sential services be allowed to operate during for the business, particularly prior to the ZSE this period. suspension,” he said. The financial services group said bor- Mlotshwa said the market is yet to see rowers, especially those in the hardest hit CB’s latest financials, which will give a industries such as tourism and hospitality clear picture of whether the current valuation have had their businesses affected and con- is justified by physical earnings. sequently, their ability to service debts. Enock Rukarwa, an investment analyst at During the period, the group’s subsidiar- BC Securities, said CB commands all as- ies were in full compliance with the regula- pects within the financial sector that preserve tory minimum capital requirement except and create shareholder value. for CB Insurance and edsphere inance, “otwithstanding it being the biggest which had regulatory capital shortfalls of local financial institution by assets and de- $12 million and $2 million respectively, at posits, on paper, CBZ is the most underval- the end of the quarter. ued financial counter by intrinsic value. To [email protected] ANC stalls plan to nationalise central bank TO ruling party official said plans the state assume sole ownership of the bank to nationalise the central bank will be and has tabled a draft law that would trig- Ashelved as the government wrestles ger the process. arliament’s legal adviser with getting the coronavirus-stricken econo- has warned the bill may be unconstitutional, my back on track. because it would enable the shares to be ex- The country doesn’t have the “massive propriated without compensation, and C resources” that may be needed to buy out the lawmakers have indicated they will reject it. bank’s private shareholders and spending The central bank’s shareholders may the money would be unjustified in the cur- seek a payout based on its total assets, in- rent economic climate, said Paul Mashatile, cluding the $56 billion of gold and foreign the treasurer-general of the frican ational reserves it holds on the country’s behalf, Congress. Mashatile said. “e would not want to rush to go in that “That can be a problem, it will make the direction because there are other implica- bank very epensive,” he said. tions,” he said in an interview. “Our view Mashatile also rebuffed suggestions that is that we want these resources to be chan- the government change rules for pension nelled rather to infrastructure projects.” funds to force them to invest in state infra- The C decided at a conference in structure projects that are a central tenet of an 2017 that the state should take ownership economic recovery plan being drafted by the of the South African Reserve Bank, one of government in consultation with business a handful of central banks owned by private and labor groups. investors, because the prevailing ownership “It is not viable,” he said. “I think it structure infringed on the nation’s sover- just creates challenges between the gov- eignty. The shareholders have no say over ernment and the investors because when monetary-policy decisions and the bank’s you do prescribe assets you are basical- mandate to ensure price stability is set ly saying to fund managers: ‘You shall out in the constitution. invest in this project.’ ou need to give The conomic reedom ighters, which them fleibility to choose. I think it is bet- advocates the state seizure of banks, mines ter not to prescribe, but to create an envi- and land, has been pressuring the ruling par- ronment for the pension fund to invest.” ty to follow through on its resolution that in2 Page 14 | September 17-23 2020 The Financial Gazette Companies & Markets BAT volumes dip as Covid-19 hits pockets

Adelaide Moyo during the review period from $341,644 million pandemic’s impact on sales,” Manatsa said. Staff Writer recorded in the comparative period. The company’s selling and marketing costs “The increase in revenue was driven by price decreased by one percent to $0,2 million com- RITISH American Tobacco (BAT) Zim- rises made during the period as well as revenue pared to the same period in prior year, driven by babwe's total sales volumes during the generated from the export of cut-rag. These two route to market initiatives aimed at managing dis- Bhalf year ended June 30, 2020 declined factors resulted in a gross profit increase of ,6 tribution costs. by three percent compared to the same period in million (22 percent) compared to the same period Administrative expenses were 35 percent prior year mainly due to shrinking consumer dis- in 2019,” he said. lower at $17 million compared to the same peri- posable incomes and the impact of the Covid-19 BAT’s premium brand, Dunhill, returned to od in prior year, driven by the business’s ongoing pandemic. the market as the company was now able to im- cost saving initiatives. Lovemore Manatsa, the cigarette maker’s port the brand and consequently it recorded a sig- Other losses increased by $116,4 million (397 chairman, said the economic impact of the pan- nificant increase of 18 percent versus the same percent) due to foreign exchange losses on liabil- demic put severe pressure on consumers’ pur- period in prior year. ities driven by the devaluation of the Zimbabwe chasing power, in addition to adversely impacting In the aspirational premium segment, New- dollar against major trading currencies. the overall trading environment. bury volumes declined by 10 percent whilst the Operating profit was higher by 0,6 million “This affected ... movement of people and value for money segment, (Madison and Everest) 8 percent versus the same period in prior year. their normal way of life such as visiting recre- and low value for money brand (Ascot), recorded et profit attributable to shareholders for the ational facilities, where our products are normally a one percent increase and 40 percent decrease period under review was $73,7 million compared Lovemore Manatsa consumed,” Manatsa said in a statement accom- respectively. to a net loss of 18,8 million in the same period panying the group’s financials. “These movements were driven by shrinking in prior year, representing a 492 percent increase. period. He said despite the drop in volumes, reve- consumer disposable incomes due to the chal- BT’s earnings per share increased to ,8 Cash generated from operations was a negative $13,1 nue increased by 20 percent to $410,527 million lenging economic environment and the Covid-19 from $0,91 generated in the same comparable million as a result of a significant increase in trade and oth- er receivables due to prepayments to purchase leaf and an increased debtors’ book as a result of price increases taken during the period. Manatsa said trading conditions are expected to remain challenging for the remainder of 2020 mainly driven by macro-economic variables and the effects of the Covid-19 pandemic. “In response to the negative effects of the Covid-19 pan- demic, we are continuously reviewing our business model and related strategies so as to remain aligned to the market Hope dynamics in the ‘new normal’ way of doing business,” he said. BAT contributed $173 million to the Zimbabwe Reve- nue Authority (Zimra) in taxes, an increase from $19,9 mil- remains for lion in 2019. [email protected] Aleyo set to inject PLHIV $5m in FMHL’s S the world scales up public The risk from immune suppression is HIV who are at higher risk of getting health responses to the coro- not known, but with other viral respira- very sick from COVID-19 do to protect navirus (COVID-19) pandemic, tory infections, the risk for people with themselves? reinsurance unit researchers are also working HIV getting very sick is greatest in: people People with HIV also have higher rates Nelson Gahadza flat out to find reliable infor- with a low CD4 cell count, and people not of certain underlying health conditions. Staff Writer Amation about this novel virus. on HIV treatment (antiretroviral therapy Both increased age and these conditions There has been much concern around or ART). can increase their risk for more severe LEYO Capital, a Botswana-based private equi- whether living with HIV makes a person People with HIV can also be at in- illness if people with HIV get COVID-19, ty firm, is set to inject in ecess of S million more likely to contract or become seri- creased risk of getting very sick with especially people with advanced HIV. into First Mutual Reinsurance Holdings, (FMRE ously unwell from COVID-19. COVID-19 based on their age and other A Steps that people with HIV can take HoldCo) for a 29 percent shareholding in the reinsurance The global death toll reaches over 935 medical conditions. to prepare in addition to what is recom- company. 000 and confirmed cases top 29,6 million There is currently no vaccine to pre- mended for everybody: FMRE HoldCo is a subsidiary of First Mutual Hold- as of 16 September 2020. vent COVID-19. The best way to prevent Make sure you have at least a 30-day ings Limited (FMHL), which holds 100 percent share- The global community is faced with an getting sick is to avoid exposure to the supply of your HIV medicine and any oth- holding of the group’s reinsurance units FMRE Zimba- virus. unpredictable and highly dynamic situa- er medications or medical supplies you bwe and FMRE Botswana. tion. What can people living with HIV do need for managing HIV. FMHL is seeking to restructure its reinsurance busi- In Zimbabwe, there are over 7 500 con- to protect themselves from COVID-19? Make sure you can maintain a social ness, which culminated in the creation of FMRE Hold- firmed cases and more than 230 deaths. People with HIV should take everyday network remotely, such as online or by Co, which is domiciled in Botswana and a capital raising Government has laid down several preventive actions to help prevent the phone. This can help you stay socially exercise. measures to try and curb the spread of spread of COVID-19. connected and mentally healthy, which is “As a result, Aleyo, through an investment vehicle especially important for people with HIV. the virus, but what does COVID-19 mean People with HIV should also contin- called Aleyo Growth Fund I Partnership, is to subscribe for people living with HIV? ue to maintain a healthy lifestyle. This People with HIV can sometimes be for a 29,1 percent shareholding in FMRE HoldCo for UNAIDS maintains that there is cur- includes eating right, getting at least 8 more likely than others to need extra BWP61 million, and the subscription amount is to be rently no clear evidence that people living hours of sleep, and reducing stress as help, from friends, family, neighbors, used to capitalise the subsidiaries to enhance their securi- much as possible. community health workers, and others. If with HIV are at an increased risk of ac- ty profile,” mos Manai, M chairman, said in a cir- quiring COVID-19 or of becoming more Staying healthy helps your immune you become sick make sure you stay in touch with people who can help you. cular, adding that a binding agreement has been signed, ill from it. system fight off infection should it occur. subject to certain conditions. With the COVID-19 pandemic, the re- However, many people living with HIV If you have HIV and are taking your Aleyo’s principal investors are Botswana-based pen- are ageing and/or have other health con- HIV medicine, it is important to continue sponse must not be fear and stigma. CDC is garnering for the need to build a cul- sion funds and institutional investors. According to Man- ditions, including heart disease or lung your treatment and follow the advice of ai, the transaction is pursuant to a capital raising eercise disease, that are known to make people your health care provider. This is the best ture of solidarity, trust and kindness. susceptible to more severe COVID-19 dis- way to keep your immune system healthy. “Our response to COVID-19 must be undertaken by FMHL for its reinsurance businesses to ease. grounded in the realities of people’s lives house the capital in a stable economy, in Botswana. What should I do if I think I might The rationale of the transaction is that the capital Although the risk of serious illness have COVID-19? and focused on eliminating the barri- ers people face in being able to protect raised will be utilised to capitalise FMRE Zimbabwe from COVID-19 for people with HIV is not Call your health care provider if you known, people with HIV may have con- themselves and their communities,” and FMRE Botswana to enhance their reinsurance ca- develop symptoms that could be consis- maintains CDC. pabilities, and to further boost the subsidiaries’ solvency, cerns and questions related to their risk- tent with COVID-19. Discuss how to get to which Centre for Disease Control (CDC) evaluated and how to avoid potentially Countries are being urged to take liquidity and other technical considerations to support answers some of them; exposing others to COVID-19. decisive action to control the epidemic expansion. and provide necessary services and di- “If the transaction is not executed First Mutual’s rein- Are people living with HIV at higher Alternatively, you are advised to call risk for COVID-19 than other people? agnostics to the people who need them, surance businesses will remain sub-optimally capitalised the following Ministry of Health and Child whether living with HIV or not. At the present time, there is no specific Care TOLL FREE HOTLINE numbers for as- and will not be able to take advantage of the opportuni- information about the risk of COVID-19 in sistance, 2019. For feedback, kindly email: ties in the reinsurance space,” Manai said. people with HIV. What else can people living with [email protected] First Mutual Reinsurance, incorporated and domiciled in Zimbabwe, provides reinsurance services for all class- es of general insurance and life and health insurance, with a stable credit rating of BBB issued by GCR Ratings. FMRE Botswana is Botswana-based and is one of the most notable regional reinsurers in East and Southern Af- rica. Besides the traditional segments of reinsurance, the company has a clear orientation towards underwriting of specialty lines of reinsurance in its selected markets. Aleyo Capital is a Botswana-based alternative asset investment management firm, specialising in private eq- uity and meanine investments in Southern frica. [email protected] Page 15 | September 17-23 2020 The Financial Gazette Column Legal issues from e-banking services use

Sharon Fadzai ing a client with the burden of seeking of e-banking services. Manangazira redress from a bank arising out of failed 7. Security of payment systems includ- 11. Risk management issues in the use transactions, which would have been deb- ing the framework of the use of electronic of e-banking by clients, that is, capacity HIS is the second ited long after the transaction would have or digital signatures. issues, business continuity and contingen- edition of a series of been undertaken. 8. The issue of the pro- cy planning to ensure reliability and avail- Tarticles aimed at as- 6. The issue of consum- vision of a framework for ability of e-banking systems and services. sessing Zimbabwe’s banking er friendliness/consumer undertaking online con- 12. Incident response planning. laws in light of the advent of protection in the consump- tracts including the issue The above and other legal issues arising electronic banking. The first instalment published tion of e-banking services of fair advertising and out of the use of banking services points last week discussed the definition, nature and medi- is key. The aspect of lack marketing practices by to a need for a robust legal framework to ums of e-banking that are currently in use in Zimba- of knowledge amongst cli- providers of e-banking govern e-banking services in Zimbabwe. bwe. This article focuses on the legal issues arising ents of e-banking services services. The next article will assess the current out of the use of e-banking services. on how to use the said ser- 9. Apportionment of re- legislative framework governing the pro- The use of e-banking systems has brought to the vices in a manner that pro- sponsibility and liability vision of e-banking services in Zimbabwe fore a number of legal issues around the said sys- tects them comes to the fore. The issue of in the use of e-banking channels by con- with a view to provide recommendations tems. The advent of e-banking has ushered in ex- transparency on the part of the providers sumers of banking services for example in based on international best practice there- traordinary advancements with respect to the man- of e-banking services to consumers there- instances where banking systems are both after. ner and speed at how client information is handled of with particular emphasis on the qual- online and offline is of paramount impor- n Manangazira is a legal practi- by providers of e-banking services. ity, quantity and extent or level of trans- tance. The issue of liability for mistaken tioner and a member of the Bankers This has had a considerable bearing on the rela- parency is pivotal. Consumer confidence electronic payments also arises. Association of Zimbabwe (BAZ) Legal tionship between banks and their clients. The fol- and trust is a pre-requisite for consumer 10. The availability of redress and/or Committee. She writes in her personal lowing are some of the legal issues that arise in the acceptance of e-banking products. dispute resolution mechanisms in the use capacity. use of e-banking channels. This is not an exhaustive list. 1. Information security issues (a) Violation of personal data/customer informa- tion; (b) The provision of false and/or inadequate in- formation by consumers of e-banking services; (c) Damages to information systems for example by way of system malfunctions (d) Standards that providers of e-banking ser- vices ought to comply with as it relates to client confidentiality. The banker’s duty of confidentiality towards a consumer of banking services is well articulated in the celebrated case of Tournier v National Provin- cial Bank of England [1924] KB 461 wherein the court ruled that once a banker-customer relation- ship is established, the duty of confidentiality upon banks ought to be abided by at all material times. The court ruled that this duty continues even after a person has ceased to be a client of a partic- ular bank; (e) Exposure to internal fraud by employees and/ or external ICT-based service providers of banks; (f) Minimum standards regarding the storage of client data in this digital age and (g) Misuse of encryptions by employees of a provider of e-banking services. 2. Cyber security issues (a) Weak security systems that expose clients to data leakages by way of interception of client data by hackers and/or cyber criminals by way of hack- ing, use of fake websites and spam electronic mails (emails). (b) Technology loopholes that enable cyber criminals to access, retrieve, and utilise confiden- tial client data for their own benefit to the detriment of consumers of e-banking services through for ex- ample blackmail tactics. 3. Ability of a bank to countermand a payment instruction In terms of Section of the Bills of Exchange Act [Chapter 14:02] a client may re- voke the authority of a bank to effect a particular payment instruction through countermanding the payment instruction, that is, a revocation of instruc- tions to pay, or stopping payment to another party by a customer of a bank or financial institution. The said revocation instruction must be issued prior to the payment instruction being undertaken by the bank. However, with regard to e-banking transactions, given the fact that e-banking trans- actions are instant and immediate, it appears that there this very little or no opportunity for a provid- er of e-banking services to reverse payment or to countermand a transaction initiated through e-bank- ing channels. The present banking law regime in Zimbabwe does not sufficiently address this scenario. 4. The necessity of appropriate disclosures by providers of e-banking services by way of custom- er notifications regarding terms and conditions for the different e-banking products currently in use in Zimbabwe. 5. The need to address issues of incomplete and/ failed online transactions particularly where con- sumers of e-banking services are then debited the funds for the failed transactions at a later stage. Failed transactions can be attributed to a plethora of reasons such as network challenges in particu- lar reference to a bank’s operating systems. This places clients in a dilemma as it relates to the flow of transactions as service providers would have made deductions for the transaction(s) in question. In addition, bank charges would have been levied against the client for a failed transaction thus leav- Page 16 | September 17-23 2020 The Financial Gazette The Financial Gazette September 17-23 2020 | Page 17

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PRODUCTION • PRODUCTIVITY PROFITABILITY For bookings contact: Kerina: 0777 489 645 or Roberta 0772 110 285. Email: [email protected]; [email protected]; [email protected] 18 SEPTEMBER 2020

PROUDLY SPONSORED BY: ORGANISED BY: Page 18 | September 17-23 2020 The Financial Gazette The Financial Gazette September 17-23 2020 | Page 19 Page 20 | September 17-23 2020 The Financial Gazette The Financial Gazette September 17-23 2020 | Page 21 Column The SeedCo investment case HE food demand outlook in the bean, barley, sorghum, groundnut and sub-Saharan Africa (SSA) re- vegetable seeds and is set to benefit T gion remains very strong. Rap- from the strong national focus on ag- id population growth and increased riculture. economic prosperity are expected to The company has an estimated mar- create substantial demand and oppor- ket share of 70 percent for open market tunities for the agricultural sector on sales and gets c50 percent for govern- the continent. ment sales in Zimbabwe. The SSA region accounts for more The seed company also gets the li- than 950 million people, approximate- on’s share of the government business ly 13 percent of the global population. with high demand for premium variet- By 2050, this share is projected to in- ies by commercial farmers. crease to almost 22 percent, or 2.1 bil- One of SeedCo’s competitive lion. strengths has been its research capa- The major constraint is that total bilities. The business has a strong fo- food production (primary crops and cus on communal farming activities in meat) has been growing but at a very SSA, having developed a number of slow rate of less than 1 percent per seed varieties in the region over time. year. Most of the global seed majors tend This is rather alarming considering to focus on commercial farming activ- the fact that food production growth ities in developed markets and have rate is not statistically different from limited expertise in African continent. population growth rate which raises As a result, the SeedCo has man- concerns about the ability to self-in- aged to maintain very strong market sure against food insecurity within the share positions on the continent. SSA region. The partnership with Limagrain Without both food imports and se- is expected to unlock value in terms rious effort to boost of research in food production, the long-term. SSA would not be Limagrain is the able to insure ade- world leader in quate food supply vegetable and for the population. field seeds and Climate change will the fourth largest likely make it even seed company in more difficult. the world. This puts the re- SeedCo gion at greater food Economics & Market Intelligence should benefit security risk. We with from an impor- note that SSA has BATANAI MATSIKA tation of new the necessary fertile technology. land and labour to be food self-suffi- Limagrain has more than 100 research cient. centres and over 1 400 researchers However, the scarcity of inputs over the world that create approxi- such as adequate water and fertilisers mately 600 new varieties each year. is a major constraint. The group's annual research budget is Agriculture is mostly rain-depen- in the region of EUR 200m. dent and this dependence makes it While there are a number of smaller vulnerable to late rainfall onsets and seed companies that are also active in precludes it from obtaining the best the Zimbabwean market, SeedCo re- possible output. mains a dominant player on the Zim- Initiatives such as the New Partner- babwean market. Smaller local players ship for Africa’s Development (NE- find it difficult to compete in this mar- PAD) and the Comprehensive Africa ket segment given that SeedCo has a Agriculture Development Programme leading edge in terms biotechnology have all drawn considerable multilat- and research and development. eral interest from communities across SeedCo's dominance coupled with Africa. the government's strong focus on ag- Governments and development riculture should also help earnings partners around the continent have growth in the outlook period. Seed- put in place various rural develop- Co’s business model is also not de- ment programs that seek to subsidise manding on capex. fertiliser costs in order to make them Generally, most companies in the widely available. agricultural sector consume significant Despite the headwinds, a recent amounts of cash on the back of high report by Deloitte shows that the ag- capex requirements associated with ricultural value in Africa more than farm acquisitions and maintenance. doubled over the decade between 2006 SeedCo is a biotechnology compa- and 2015, primarily as a result of for- ny and most investments are in R&D. eign direct investment (FDI) inflows. In addition, the out-grower model does The countries that were found to be not compel the company to invest in highly lucrative spaces for investment farms. include Ethiopia, Nigeria and Tanza- Overall, while SeedCo is likely to nia. continue facing headwinds in Zimba- The report also lists six crops, bwe (worsening macro environment namely cassava, maize, wheat, rice, and product pricing constraints), pros- ground nuts and soya beans, as the pects in regional markets (SeedCo In- most lucrative, based on market senti- ternational) remain very strong. ment and demand across the continent We view SeedCo Limited as a ve- and the globe. hicle of gaining exposure in the food In addition to fertilisers and ade- demand growth story in SSA.BUY quate water supplies, hybrid seeds will ● Matsika is head of research at also be critical in boosting yields on Morgan & Co, and founder of piggy- SSA farmlands. bankadvisor.com. He can be reached SeedCo Limited develops and mar- on +263 78 358 4745 or batanai@ kets certified crop seeds, mainly hy- morganzim.com / batanai@piggy- brid maize seed as well as wheat, soya bankadvisor.com Page 22 | September 17 - 23 2020 The Financial Gazette

ZIMBABWE CONGRATULATIONS ON THE OCCASION OF HIS EXCELLENCY THE PRESIDENT, COMRADE EMMERSON DAMBUDZO MNANGAGWA’S 78TH BIRTHDAY

Makorokoto! Amhlophe! Happy Birthday! he Chief Secretary to the President and Cabinet Dr look ahead with renewed hope to the finalization and Misheck J.M. Sibanda, Deputy Chief Secretaries, launch of the National Development Strategy, the TSenior Management and Staff in the Office of implementation of which the Office of the President the President and Cabinet, join Her Excellency, Amai and Cabinet will spearhead towards the attainment of Auxillia Mnangagwa, the First Family and the nation in Vision 2030 for a prosperous and knowledge-driven wishing His Excellency the President, Cde Emmerson Upper Middle Income society. Dambudzo Mnangagwa, a Happy Seventy-Eighth Once again, the entire staff of the Office of the Birthday and many more. We note with satisfaction President and Cabinet would like to assure His that through His Excellency’s wise stewardship of the Excellency the President of its total commitment to Second Republic, our beloved nation continues to scale effective service delivery as we guide and lead the new heights in entrenching unity, peace and stability, policy formulation and implementation process of the thus paving the way for accelerated socio-economic Whole of Government Concept for the ultimate good development under the Transitional Stabilisation and prosperity of all Zimbabweans. Programme. Equally inspiring is the wisdom which the President has demonstrated in the wake of the COVID-19 Inserted by: Outbreak, steering the nation away from a catastrophe Dr. M.J.M. Sibanda through robust and judicious deployment of human, CHIEF SECRETARY TO THE PRESIDENT AND material and financial resources. The nation can now CABINET 15th September, 2020 The Financial Gazette September 17-23 2020 | Page 23 Life & Arts Hand-made craft and piri piri chicken THIRD QUARTER PROVISIONAL INCOME TAX at Old Stables PAYMENT DUE 25 SEPTEMBER 2020 ARMERS’ markets are thriving in Harare, and it's not just because people like to buy farm-fresh, lo- The Zimbabwe Revenue Authority (ZIMRA) hereby reminds its valued clients whose taxable income is de- cally grown food, browse hand-made craft or stock rived from Trade and Investments for the tax year ending 31 December 2020 that the third Quarterly F th their vegetable gardens with seedlings direct from the farm. Provisional Tax Payment is due on 25 September 2020. They also love to socialise, and to remind themselves that there's a world outside their living rooms and beyond the garden gate. This means that, 30% of the provisional tax for the tax year ending 31 December 2020 is due on or before A tall, dark man was the first person to walk through th my front door on New Year's Day this year, but there hasn't 25 September 2020 and the Provisional Tax Payment Dates are shown as below: been much traffic since, and the prosperity and luck this event should have brought is yet to materialise. So all the Quarterly Instalment Due (Percentage of Due Date (On or Before) Cumulative Tax Due more reason to wear a mask, observe social distancing, and Instalment Projected Annual Tax payable) visit the farmers' markets, as they open one after the other in Harare.

Last Saturday, George and I visited The Old Stables 1st 25 March, 2020 10% 10% Market at the Borrowdale Race Course. The world and 2nd 25 June, 2020 25% 35% his wife had the same idea, and while people continued to arrive, others were leaving, triumphantly clutching canvas 3rd 25 September, 2020 30% 65% bags of green beans and bananas, long legged wrought iron 4th 20 December, 2020 35% 100% storks, home made cakes and bottles of pickles and jam. The gates open at 8am, so start the morning with a sweet, strawberry filled crepe made by Chef Raphael, from Cafe de Paris in Churchill Avenue. If the crepes are sold out, try a For calculation of the Provisional Tax for each QPD, clients are required to estimate the annual tax due and galette, made with a mixture of wheat and buckwheat flour calculate the respective percentage of tax for the respective quarter with reference to the table above. The and filled with gruyere cheese, ham and spinach. annual estimated tax should be revised to update the estimates every quarter. A completed Return for Stroll on and check out the 'luxury comfy sleepwear', Provisional Tax Payment (ITF 12B) is submitted via relevant email addresses selected from the list provided Liesje's home-made dog treats, and trendy shibori indigo hand-dyed cushion covers and tote bags by Jista. Browse below. The ITF 12B is accessible on ZIMRA website: www.zimra.co.zw through Jinks's Antiques for a A Matter of Taste Christmas gift NB: for the funky with millennial or the 1. All taxpayers whose taxable income is earned, received or accrued in whole or in part in foreign cur- sophisticated aunt Charlotte Malakoff rency shall pay tax in foreign currency on so much of that income as is earned, received or accrued in in the family, then that currency. continue to Emer- ald Seedlings to 2. Clients who have received a written notice fixing dates other than the above are required to comply buy flourishing organic parsley, sage, rosemary and thyme seedlings, all essential for your kitchen garden. with that written notice. As lunchtime approached, George and I were drawn to 3. Failure to submit the ITF 12B with estimates entitles ZIMRA to estimate the taxable income and recover Ant Berens' Mongolian BBQ braai, and to Kungfu Kitch- en's crispy pork, chicken and prawn dumplings. Finally, we the tax due. joined a long queue at Tinkabell Restaurant's corner, for 4. Interest will be levied on late payments of tax at 25%. “Portuguese peri peri chicken done the right way, on a char- coal braai”. Spiced in a most delicious marinade created by 5. Clients are advised to scan and email completed copies of ITF12B form (QPDs) using the applicable/ owner Jasmine Fonseca, the chickens were grilled to a turn, relevant email address selected from the list below: production scarcely keeping up with demand. Live music is often a feature at farmers' markets, and while we waited for the chicken to come off the braai, pitch perfect singer Roy Freestone entertained the crowds with 1. LCO INCOME TAX RETURNS [email protected] old favourites like The Green Green Grass of Home , and 2. MCO INCOME TAX RETURNS [email protected] Sweet Caroline. At one point, when Roy was in mid-song, a dust devil blew up, lifting Roy's shade umbrella into the 3. SCO INCOME TAX RETURNS [email protected] sky. It grazed the heads of two shoppers, and gathering mo- 4. BULAWAYO INCOME TAX RETURNS [email protected] mentum, carried away the tarpaulin shade over Tinkabell's kitchen, before descending to the ground. Undeterred, the 5. VICTORIA FALLS INCOME TAX RETURNS [email protected] veteran crooner finished his song, never missing a beat. 6. HWANGE INCOME TAX RETURNS [email protected] Before leaving the market, we visited Aauwenna Arts and Crafts where entrepreneur Thelma Boettrich and her 7. GWANDA INCOME TAX RETURNS [email protected] niece, Evidence, showed us an impressive collection of 8. BEIT BRIDGE INCOME TAX RETURNS [email protected] sisal and tree bark products. These indigenous barks have been used in the making of beautiful mats and floor cov- 9. MASVINGO INCOME TAX RETURNS [email protected] erings, hats and hand bags. Most impressive was a huge 10. MUTARE INCOME TAX RETURNS [email protected] woven gudza, a type of blanket used by many people in ru- ral areas, before duvets became popular. A work of art, this 11. GWERU INCOME TAX RETURNS [email protected] gudza showcases the traditional skills which might have 12. CHIREDZI INCOME TAX RETURNS [email protected] been lost to Zimbabwe without the assistance of artists like Thelma. 13. ZVISHAVANE INCOME TAX RETURN [email protected] Thelma, who comes from Biriiri in Chimanimani, ex- 14. CHIPINGE INCOME TAX RETURNS [email protected] plained how bark is stripped off twigs from the musasa, munhondo, mupfuti and muunze trees, pounded in a mortar 15. RUSAPE INCOME TAX RETURNS [email protected] and made into the strings that are then woven and made into 16. KWEKWE INCOME TAX RETURNS [email protected] artifacts and household items. Over 30 women in Chimani- mani have been shown by Thelma how to process the raw 17. KADOMA INCOME TAX RETURNS [email protected] materials, and trained in the weaving of goods that are then transported to Harare to be marketed. 18. CHINHOYI INCOME TAX RETURNS [email protected] The fallout from Cyclone Idai is still being felt in Chi- 19. KARIBA INCOME TAX RETURNS [email protected] manimani, and in addition to the groceries and solar lights Thelma recently sent to her ladies in the workforce, were 20. MARONDERA INCOME TAX RETURNS [email protected] a number of blood pressure monitors, essential to keep a 21. BINDURA INCOME TAX RETURNS [email protected] check on their wellbeing. You can visit Aauwenna Arts and Crafts Gallery in Highlands, where Thelma, who is also an accomplished My Taxes – My Duties – Building My Zimbabwe! cook, will soon be opening a cafe serving traditional meals. As we continue to work from home while reducing the Public Notice number 53 of 2020. number of social events to a bare minimum, weekend visits to a farmers' market can become a welcome fixture in a boring routine. At The Old Stables Market, where you're re- quired to wear a mask, temperatures are taken and hand sa- nitiser is provided at the entrance. So maintain a respectable social distance from all the friends you're likely to meet at the market, and enjoy the day out. Comments to: [email protected] SPORT SHORTS Tottenham in talks with Bale TOTTENHAM Hotspur are in talks to re-sign Wales forward Gareth Bale from Real Madrid, and are closing in on a deal for his team-mate Sergio Reguilon. Bale, 31, left Spurs to join Real for a then world re- cord £85m in 2013 and has since scored more than 100 goals and won four Champions League titles. "Gareth still loves Spurs," his agent Jonathan Bar- nett told BBC Sport Wales. "It's where he wants to be." Both Bale and left-back Reguilon had been linked with Manchester United. Spain international Reguilon, 23, came through the youth set-up at Real and made his fi rst-team debut in October 2018. News Worth Knowing United spoke to Real about him but were put off by the Spanish giants' insistence on a buyback clause. Sport — Skysports.com Page 24 September 17-23 2020 ‘Osaka wins for more than herself’ EVERYTHING I was do- a defeat, and she wanted to spare ka briefl y lost her cool and “be- against Victoria Azarenka. Osaka Osaka said. “I thought, ‘I came cial justice.” She was specifi cally ing off the court, was sort Gauff that painful experience. haved terribly,” as she put it, but lost the fi rst set 6-1, and was a here with a goal, I’m playing in protesting police violence against of on the court, too,” Naomi This year, Osaka walked on she never beat herself up emo- point away from going down 0-3 the fi nal, a lot of people want to African-Americans. And by win- Osaka said when she visited court carrying the memory of tionally. The same in the second. The match be in this fi nal, so I can’t lose 6-1, ning her third major fi nal in three “the ESPN studio after winning her someone who had been lost with pattern held had all the makings of 6-0.’” tries — against Serena Williams, third Grand Slam title at the US her. The seventh and fi nal name in the an historic blowout. The turnaround began at 0-2 in Petra Kvitova and now Azarenka Open on Saturday. was that of Tamir Rice, a 12-year- fi nal, Osaka slammed her the second, with a simple change: — she proved again that she can’t She had been asked whether old boy who was shot and killed racket to the court She started hitting her backhand be intimidated by any stage or any it was diffi cult for her to balance by a police offi cer in Cleveland once, but again she down the line, to Azarenka’s fore- opponent. her recent public support for the six years ago. The desire to re- managed to return hand, rather than crosscourt. It “I never played against some- Black Lives Matter movement mind the world of another black to basics: She was was enough to earn her a hold and one who beat me when I’m trying with her life as a professional ten- person’s life, and how it was tak- determined not to slow Azarenka’s runaway mo- really hard,” she told Fernandez. nis player. During the tournament, en, gave Osaka a greater sense of lose in under an hour. mentum. From there, everything That’s not the mindset of a wall- it had been satisfying to imagine purpose each time she played. “I wasn’t think- fl ipped, and Osaka dominated the fl ower; it’s one that reminds me of that those two very different parts “I wanted more people to say ing about winning rest of the way. Serve, forehand, John McEnroe’s, Roger Federer’s of her life were connected; that more names,” she said. after a certain backhand: She was stronger than and Serena’s — it’s a winner’s the masks she wore before each Some players might have while,” Azarenka in all departments. mindset. match, memorialising seven Af- crumbled under the weight of Even when she was pushed back Osaka took on the responsibil- rican-American victims of shoot- those kind of self-imposed expec- in the court, Osaka found ways to ity of playing for more than her- ings by police or white civilians, tations. And Osaka had her strug- be the more offensive player. self over the past two weeks, and really did inspire her to hit her gles during this fortnight. But she “Naomi has the power in this she said she felt the pressure of serve and forehand better. But was always able to settle herself match-up, she hits the ball hard- living up to those ambitions. was there actually a link between and bring her mind back to the er,” Mary Jo Fernandez said. “Everything off the court was them? According to Osaka, the task at hand. For her, that means “When she got her rhythm, the defi nitely building up,” she said answer was yes. forgetting about the result, and ball toss in the right, consistent of her time in the bubble. “I had “I’m walking on the court in concentrating on fi rst having the spot, she controlled the points. It some moments where I was very that moment,” she said of wearing right attitude. was very basic.” stressed out.” the masks. “It made me stronger, “When I think about winning Osaka has always been de- “But I think all in all it's the because I had more desire to win, too much, I go out of myself,” scribed as shy and soft-spoken. person that's very mentally strong because I want to show more Osaka said. “For me, the key is to After the match she took her [who wins],” she continued. “For names, and I want people to talk stay calm.” time and carefully lay down me, it's one step forward because about it more.” “The quarantine defi nitely on the court, in the modern I always wanted to be that type of Tennis is a selfi sh game, we’re gave me a chance to think a lot Grand Slam victory pose person.” told. You win matches and you about things, what I want to ac- that Serena Williams and Osaka is already mentally lose matches the same way: alone. complish, what I want people to Rafael Nadal have popular- strong, and, step by step, she may At the last two Opens, Osaka has remember me by,” she said. “For ised. Why? Because, she said, change how we think of what shown that this doesn’t have to be me, I came into this tournament, she didn’t want to fall straight tennis players and athletes can the case. or these two tournaments, with down and risk injuring herself. do with their lives — and their In 2019, after beating Coco that mindset. I think it defi nitely Yet underneath that gentle platforms. At this US Open, she Gauff in a night match, she asked helped me out.” exterior, she is tough, brave, and showed us that, even in this indi- the teenager to stay and do the In her three-set wins over Mi- daring. By wearing the names she vidual game, you can play your post-match interview with her. saki Doi in the fi rst round, Marta wore on her masks, she wasn’t best when you’re playing for Osaka said she hated going back Kostyuk in the third round, and just signalling her support for more than just yourself. to the locker room by herself after Jen Brady in the semi-fi nals, Osa- some vague, anodyne idea of “so- — tennis.com

For the week ending 16 September 2020