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September 5 - 11 2019 ESTABLISHED 1969 @ FingazLive www.fi ngaz.co.zw Facebook: The Financial Gazette

ZSE Report The All Share Index was fl at on Wednesday at 166,1 points. Economy: BNC added 9,5 percent to close at $0,1150, while OK Zimbabwe gained 4,2 percent to end at $0,3136 and PPC traded 2,5 percent higher at $2,05. The Industrial Index was down by 0,1 percent to close at 552,4 points, while the Top 10 Index was down by 0,2 percent at 148,8 points. The Minings Index gained No light at 2,4 percent to close at 268,0 points. Currencies (Bloomberg) % change USD:ZAR 14,8323 1,75 ◀ ◀ EUR:USD 1,1028 0,49 ◀ GBP:USD 1,2192 0,92 ◀ USD: JPY 106,2300 0,27

Stock Markets ZSE (All Share) 166,1 0,0 ◀ ZSE (Minings) 268,00 2.4 ◀ JSE 12 891.00 1.11 the end of ◀ FTSE 100 7 2987,89 0.42 ◀ 0,67 Dow 26 293,11

Commodities Gold 1 545.82 1.28 ◀ Platinum 980.00 2.25 ◀◀ Brent Oil 60.39 3.66

Grains (Grain SA) White Maize ZAR 2 072,71 ◀ 3.5 the tunnel Soya ZAR 4 738,98 ◀ 1.3

Tabitha Mutenga and Paul Nyakazeya and pricing,” Macheka said. Wheat ZAR 2 474,63 ◀ 4.4 Staff Writers “The Zimbabwean economy will be experiencing hyper-infl ationary conditions, lower production output USINESS expects Zimbabwe’s economy to and restrained economic growth — and living standards NMBZ posts worsen in the coming months due to rising pro- will keep deteriorating in the next six months,” he said. Bduction costs, skyrocketing infl ation and a lack “The Transitional Stabilisation Programme (TSP) $57m profit of comprehensive government measures to deal with benchmarks ... are still lagging behind. So, making any the country’s challenges. assumption that the remaining six months will bring a NMBZ Holdings (NMBZ) yester- Tamuka Macheka, the Zimbabwe National Cham- sudden economic transformation will be an econom- day reported a $57,4 million profi t ber of Commerce president, said the country’s ongoing ic hallucination,” economist Paddington Masamha after tax for the half year ended foreign currency challenges, as well as the prevailing chipped in. June 30, 2019 – up 532 percent confi dence defi cit were some of the other symptoms of He observed further that the government was also from prior comparable period. poor economic fundamentals which needed to be ad- struggling to attract fresh capital to jump-start the The dual-listed fi nancial ser- dressed urgently. shrinking economy. Alex Chishiri, Barker McCormac Ogilvy chief opera- vices group attributed the perfor- “Policy consistency is key for a business-friendly “Investors are looking at Zimbabwe with an eagle tions offi cer, is confi dent that the company will continue mance to an increase in interest environment,” he told The Financial Gazette this week, eye, waiting for real fundamentals to change, not neces- to evolve and keep up with the ever-changing trends in income, and fees and commission noting further that production was also being affected sarily the gospel that we are preaching,” Masamha said. the advertising industry. Zimbabwe’s advertising sector revenue. adversely by the continuing unavailability of fuel and “There is no propaganda around issues of foreign has not been spared from the country’s economic chal- During the period under re- electricity. investments, as certain fundamentals have to change. lenges, which have resulted in massive company closures. view, total comprehensive income “All this has implications on the cost of production To Page 2 Picture by Freedom Mashava surged to $61m from $9m. Page 2 | September 5 - 11 2019 The Financial Gazette National News Economy: No light at the end of the tunnel FROM P1 an initial 2,5 percent growth projection. as having further eroded the public’s confi - The fact that we are still in a dry season is evidence Kaduwo also said government’s failure to dence in national policies. Zimbabwe is well-known inter- enough that nothing has changed and that investors do deal with stagfl ation — marked by high un- Keith Nicholson, Nampak Zimbabwe’s nationally for overnight policy not trust the positive gospel we are preaching,” he said. employment, soaring infl ation and depressed chief executive, said the economy was not changes. As such, no one wants to “Zimbabwe is well-known internationally for over- aggregate demand — had resulted in low in- only facing strong headwinds, but that the invest their money in an economy night policy changes. As such, no one wants to invest vestor and business confi dence. government’s decision to ban the use of the largely saddled with policy incon- their money in an economy largely saddled with policy “Instead of squeezing business and con- multi-currencies would also further hurt inconsistencies, lack of policy clarity, excessive reg- straining aggregate demand, which has business. sistencies, lack of policy clarity, ex- ulations and command economic management strate- fallen by as much as 47 percent, “It is unlikely that any mean- cessive regulations and command gies,” Masamha added. government should work on ingful relief will be forthcom- economic management strategies This comes as Finance minister Mthuli Ncube has addressing ineffi cien- ing to the manufacturing recently suggested that his austerity measures will cies... (that) are creat- sector until the critical Economist Paddington Masamha start bearing fruit by year-end — insisting that gov- ing economic prob- constraints of foreign ernment would focus on “production, prosperity and lems,” he said. exchange and power creation of new jobs” next year. “These ineffi - supply are eased,” he Since his appointment last year, the ex-banker has ciencies are all a re- said. growth plans. introduced a raft of reforms — including the contro- sult of weak insti- Dairibord “The supply of electricity, water and versial two percent transaction tax, the separation of tutions,” Kaduwo Holdings Lim- foreign currency is expected to remain con- RTGS and foreign currency accounts, and the liberali- added. ited chairman strained,” he added. sation of the procurement of fuel — all of which were At the same Josphat Sachi- Samuel Matsekete, First Capital Bank’s aimed at re-balancing the economy. time, the re-intro- konye has also managing director, has said Zimbabwe’s However, the measures have mostly left a trail of duction of a local bemoaned the “macroeconomic environment is expected to destruction, with both ordinary people and businesses currency, after 10 fact that the remain in a transitional mode into the fore- reeling from the ever deteriorating economic environ- years — and without commercial seeable future”. ment. an improvement in environment But former MDC legislator and econ- “At the moment, the economy is facing a ‘low ani- fundamental econom- remains frag- omist Eddie Cross feels Ncube’s policies mal spirit’— a situation where investors and consum- ic factors — is ile and uncertain, have positioned the country on a sustainable ers are unwilling to invest and spend respectively in also making it diffi - growth path. the market due to uncertainty,” Tinashe Kaduwo, an- seen cult for busi- “We are on the right track. We need to other economist, said. nesses to tackle outstanding issues vigorously and As a result, even offi cial fi gures show imple- then, perhaps, we will see a return to growth that agriculture is expected to contract ment with stability in the new year,” he said. by 10,1 percent this year, from an their “State revenues are above forecast and I initial growth projection of three doubt there will be any defi cit this year, even percent — with the mining growth after the recent wage adjustment,” Cross rate now also revised downwards said. from a projected eight percent to “The export sector is now growing just 1,1 percent. signifi cantly and gold production is at The beleaguered manufac- record levels, and the balance of pay- turing sector is also not expect- ments surplus is strengthening,” he added. ed to grow this year, against Finance minister Mthuli Ncube newsdesk@fi ngaz.co.zw Daily News hosts Shiri, Chitando GRICULTURE minister Perrance Shiri and Tagwirei eyes BNC? his Mines counterpart Winston Chitando are expected to headline the Daily News Business USINESSMAN Kuda Tagwirei is precious metals”, a description that per- A quietly building an empire amid fectly fi ts ZimAlloys, a Gweru-based fer- Breakfast Forum to be held in the capital next Thurs- day. Breports that he is targeting to buy ro-chrome producer. Francis Mushaninga, the Associated Newspapers of Bindura Nickel Corporation (BNC) through This also comes as Tagwirei has been Zimbabwe general manager for sales and marketing, Zimbabwe Alloys (ZimAlloys), which he linked to a mysterious acquisition of a sig- said the event will unveil the second quarter State of recently acquired. nifi cant stake in fi nancial group, CBZ Hold- the Economy Report. This comes as BNC has said its ultimate ings. “As promised at the launch of the fi rst quarter State holding company, Asa Resources Group BNC never confi rmed the “third party” of the Economy Report, we are continuing to review (Asa) has entered into an agreement with in the previous arrangement, but it was be- key economic indicators such as infl ation, exchange a third party in relation to the disposal of lieved to be London and Johannesburg-list- rates, trade and budget performance, which are useful its 74,73 percent stake in the nickel mining ed Pan African Resources, which had tools in decision making,” he said. company. announced that it was in “exclusive nego- “Produced on a quarterly basis, this report has a Even though BNC has not confi rmed the tiations with the joint administrators of Asa. special focus on mining and agriculture and the two identity of the third party in the deal, well- Asa, which is currently under adminis- ministers and a representative from the ministry of In- placed sources say Tagwirei had made an tration, has been in turmoil since last year dustry will be key speakers at the forum.” offer to Asa as soon as word got out that its when it fi red its chief executive and fi nan- previous attempt to dispose of its stake in cial director after they allegedly defrauded Over 150 guests comprising top economists, cap- Perrance Shiri tains of industry, politicians, industrialists, non-gov- the nickel miner had failed. Freda Rebecca Mine, in which it holds 85 ernmental organisations, policy makers and business And while Muchadeyi Masunda, the percent. leaders are expected to attend the event. Renowned economist and Africa Econom- BNC board chairman, said “it is not ZimAl- A few years ago Asa — then known as ic Development Studies (AEDS) executive loys” that is acquiring the Asa stake in the Mwana Africa — faced a hostile takeover director Gift Mugano will present the report company, the cautionary statement on the from Rich Pro, a Chinese fi rm which mus- while Brains Muchemwa and Confederation proposed transaction says “the third party cled its way in and fi red top management. of Zimbabwe Industries president Henry is a Zimbabwean based mining entity with In June last year, Asa cancelled its Lon- Ruzvidzo will be panelists. interests in the mining and production of don listing after delays in fi xing a deep cash Top businessman Shingi Munyeza will ferrous metals, non-ferrous metals and fl ow crisis. facilitate while veteran communicator and Asa has interests in gold and nickel in marketer Barry Manandi will be the director Zimbabwe. Its two key assets are Freda Re- of ceremonies. becca Gold Mine, the Trojan Nickel Mine Apart from taking questions from the fl oor and the Bindura Nickel Corporation, which and exhaustively dealing with inquiries, par- has a mill, a concentrator, a smelter and a ticipants will also be accorded an opportunity refi nery. to share their thoughts with ministers Shiri Meanwhile, BNC says its $20 million and Chitando. smelter project is still on hold due to sub- ZiFM Stereo will broadcast live the report dued nickel prices. produced by AEDS in conjunction with the When the company raised funds for the Daily News. smelter project through a bond in 2014, Susan Makore, AB Communications chief it had assumed that nickel prices would executive, said her stable was elated to be rise from US$16 500 per tonne in 2014 to given an opportunity to collaborate with the US$21 000 in 2016 before easing to about Daily News and is looking forward to broad- US$18 000 in 2018. cast the event for the benefi t of the business The industrial metal’s price however, community. defi ed the “consensus” forecasts, which The forthcoming Daily News Business were based on projections by “approxi- Breakfast Forum becomes the fourth that the mately 20” traders and fund managers, country’s leading newspaper brand has hosted after prices fell from about US$14 000 in this year as part of its efforts to offer an inter- 2014 to US$10 000 in 2016 before recov- active platform to business and policymakers. ering to about US$12 000 in 2019. — Staff Writer — Staff Writer Kuda Tagwirei newsdesk@fi ngaz.co.zw newsdesk@fi ngaz.co.zw The Financial Gazette September 5 - 11 2019 | Page 3 National News Adelaide Moyo Staff Writer

IPPO Valley Estates (Hippo) is seeking to relist on the Zimbabwe Stock Exchange (ZSE) after it finally Hippo seeks ZSE relisting Hpublished its financial results this week. The local bourse suspended trading of the sugarcane pro- Mhere said the auditing of Tongaat Hulett’s fi- increasing by 705 percent to $44,290 million in fair value adjustment on standing cane, as well cessor's shares last month after the company failed to pub- nancials is still underway and is expected to have during the year ended March 31, 2019 due to an as the impact of domestic market sugar price ad- lish its results within the stipulated time-frame. been completed by end of October. improvement in the sales mix and an increase in justments prompted by cost push inflation expe- Aiden Mhere, Hippo’s acting chief executive, said due “While the directors do not expect any ad- sales volume for both local and export markets. rienced last year. to the economic volatility and the resultant price distortions, ditional changes to arise out of the on-going re- Hippo also attributed the massive increase An operating profit of $67,7 million for the as well as the introduction of the RTGS dollar in February view at Tongaat Hulett, any additional findings in profits to “timely adjustments of prices in re- year ended March 31, 2019 was achieved, com- 2019 at an unrealistic exchange rate, the group’s results resulting therefrom and considered material, may sponse to inflationary pressures”. pared to $9,5 million (restated) in the prior year. were not comparable to prior year. result in the revision of the company’s financial The sugar processing firm’s revenue was up In the half year period, a total of 1,862 mil- “In this regard, the financial performance is being re- results. As such, the directors and management 80 percent to $243,8 million during the review lion tonnes of cane were crushed against 1,534 viewed in the context of the inherent economic distortions, urge users of the financial statements to exercise period compared to $135,2 million in prior peri- million tonnes in prior period, of which 1,068 with particular reference to the implications of SI 33 of 2019 due caution,” he said. od mainly due to the 21 percent increase in sugar million tonnes was company cane and 730 000 which introduced the RTGS dollar at an exchange rate of 1:1 Hippo, a subsidiary of Johannesburg Stock production. tonnes was delivered by private farmers. to the US dollar,” he said. Exchange-listed Tongaat Hulett, saw its profits The increase is also attributed to an increase [email protected]

MMCZ general manager Tongai Muzenda Zim resumes diamonds auction Kuda Chideme Markets Editor

IMBABWE will next week hold its first diamond auction this year as the cash-strapped country tries Zto salvage mineral revenue to bolster depleted State coffers, The Financial Gazette can reveal. Minerals revenue together with earnings from tobac- co export receipts were expected to power the southern African nation's economy this year, but a devastating drought and depressed output from mines — which are reeling from intensive power cuts and a high cost envi- ronment — have seen the country stutter and lurch into recession. Tongai Muzenda, the Mineral Marketing Corporation of Zimbabwe (MMCZ) general manager, said his organ- isation, which is mandated to market all the country’s minerals except for gold and silver, was working to im- prove the perception of the country’s minerals. “The next auction will be held during the week be- ginning September 9 and ending September 13, 2019,” he said. “We have been lobbying through regional and in- ternational diamond communities. We are also a strong member of the Kimberley Process Certification Scheme family and we attend all plenary sessions. Our diamonds are trading freely”. Muzenda said engagements were underway to im- prove the operating environment for production targets to be met. At its peak in 2012, Zimbabwe’s diamond output reached 12 million carats but production plunged spectacularly to a paltry 961 000 carats in 2016 after for- mer president Robert Mugabe’s government kicked out firms mining in the Marange diamonds fields and nation- alised their operations to form the Zimbabwe Consoli- dated Diamond Corporation (ZCDC). Mugabe cited that the diamond mines had not con- tributed taxes to the State and claimed that some US$13 billion in diamond revenue had not been accounted for to justify his move to nationalise the mines but the situa- tion under ZCDC has not improved. In 2017 output reached 1,8 million carats but the country only managed to hold its first diamond auction in February 2018 and it remains unclear how many car- ats were put on sale. ZCDC remains under-capitalised with reports of cor- ruption dogging the institution. Recently eight execu- tives including the Chief Executive Officer were fired. The southern African country has since launched a new Diamond Policy which is expected to strengthen regulatory activities in the sector, ensure accountability, improve processing and selling of the precious mineral. As part of efforts to revive the sector government has drafted in Russian global leader in diamond mining Al- rosa, as well as the Chinese backed Anjin. AIM listed junior miner, Vast Resources, is also finalising arrangements to set up shop in Marange. See interview on p10 [email protected] Page 4 | September 5 - 11 2019 The Financial Gazette National News Starafrica upbeat Fastjet embarks on on debt plan Nelson Gahadza tax of $ 8,8 million,” Mutizwa said. Staff Writer He added that foreign currency shortages constrained the ability of aggressive Zim plan TARAFRICACORPORA- the group to make key imports on TION (Starafrica) says it is time together with cost pressure from Shame Makoshori rent route network,” said Ed Berry, Fast- bwe is struggling to remain afl oat because Sconfi dent of settling its US$60 locally sourced materials, especially Companies Editor jet’s Zimbabwe accountable manager. of debt constraints. million debt after 72 percent of the those with imported components. Berry said Fastjet was “grateful for the Another domestic competitor, FlyAfri- group’s creditors converted their Mutizwa, however, noted that OW cost airline Fastjet says govern- positive response from the ministry, which ca, has not been operating leaving room for debt into equity as part of a scheme despite economic challenges arising ment has approved its plans to ex- enables the airline to continue with its plan Fastjet to dominate Zimbabwean skies. of arrangement. from foreign currency shortages and pand its route network and add more to expand the network and contributing to Fastjet was the fi rst airline to break Air- The Zimbabwe Stock Ex- unrelenting cost pressures, Starafrica L change-listed sugar refi ner entered is now on a journey towards viability. domestic and international frequencies. the development of business and leisure Zim’s monopoly on the Harare-Victoria Fastjet did not disclose the routes, but tourism to and from Zimbabwe”. Falls route about three years ago, using its into a debt-to-equity swap deal with On operations, Goldstar Sugars the strategy could see it penetrate under- Fastjet currently operates daily frequen- low fee strategy. creditors to clear its debt as well as Harare (GSSH) plant produced 72 serviced destinations like Kariba, Buffalo cies into Johannesburg from Harare, in ad- “Fastjet has been pursuing this route strengthen the balance sheet. 252 tonnes of refi ned sugar com- Range in the Lowveld, Hwange National dition to connections into Tanzania, from designation for several years,” Fastjet chief Joe Mutizwa, Starafrica’s chair- pared with 63 182 tonnes produced Park and Mutare, where the Civil Avia- where it operates its African hub. executive offi cer Nico Bezuidenhout said man, said the group is also servicing in prior year and sold 71 683 tonnes tion Authority of Zimbabwe is planning On the domestic front it operates daily last year after securing a permit to fl y the its interest obligations and continues against 62 889 tonnes sold in the to refurbish an old Airforce of Zimbabwe frequencies into Victoria Falls. Harare-Bulawayo route. to engage the remaining scheme comparative period. airstrip. Berry said there was still work to be “We are delighted to see that positive creditors to exercise their right in Mutizwa said the increases in “Fastjet Zimbabwe is pleased to con- done before the new and additional fl ight changes in the Zimbabwean environment light of the group’s return to profi t- production and sales volumes were fi rm that the ... ministry of Transport and operations commence. made this development possible, enabling ability. both 14 percent above prior year and Infrastructural Development has approved The airline is still to fulfi ll additional low-fare connectivity between more do- According to Starafrica, post the growth was against a background the airline to include additional frequencies requirements as mestic destinations,” he said. the debt-to-equity conversion, 89 of challenges with imported raw ma- and new international routes prescribed “(Fastjet) has invested substantial- percent of the issued share capital terials procurement. to their cur- in its bi- ly in the market with positive outcomes. will be held by concerned second- He noted that the plant was recer- lateral air While we are launching with a single ary scheme creditors. The Zimba- tifi ed by The Coca Cola Company service frequency, we intend to further grow the bwe Asset Management Company (TCCC) as well as Food Safety certi- agreement for route following further consultation with in April 2018 became Starafrica’s fi cation under the FSSC 22000 series the new international stakeholders and ultimately to introduce largest shareholder when it convert- which enable the Group to supply routes. additional aircraft,” Bezuidenhout said. ed the sugar producer’s $32 million products to TCCC franchisees with- The deal comes as State-run Air Zimba- newsdesk@fi ngaz.co.zw debt into ordinary equity, represent- in and beyond the Southern Africa ing 58,34 percent of the issued share region. capital. Country Choice Foods achieved The latest development comes at an EBITDA of $3,5 million for the Zim faces uphill task on infrastructure development a time when the perennial loss maker year under review against $0.5 mil- transitioned into full profi tability for lion in prior year driven by increases John Okorie and Shame Makoshori bwe’s prospects of raising US$34 appear infrastructure should be multi-pronged, the fi rst time since the adoption of in actual sales volumes, change in Staff Writers dim,” Econometer said. with the private sector, State fi rms and multi currencies in 2009. product mix and consistent margins “Assuming an arrears clearance pro- government lining up blue-prints and part Starafrica achieved a 51 percent on core products. IMBABWE’S prospects of rais- cess is initiated in the near future, and full of the funding to work around the fi nanc- increase in turnover at $ 72,7 million Tongaat Hulett Botswana, the ing funds required to bankroll the donor support is restored, the proposed ing rut. in the full year to March 31, 2019, associate company’s performance rebuilding of its infrastructure are infrastructure programme would require a AfDB said State enterprises involved compared with $48,1 million record- surpassed prior year levels as it Z ed in prior year while the earnings achieved a profi t after tax of $3,9 doomed unless Harare moves with speed majority of the bulk of the donor funds be with service provision in the identifi ed in executing its debt clearance plan. allocated to water and roads. Zimbabwe infrastructure gaps would have to raise before interest, tax, depreciation and million of which the group’s share This comes after the African Develop- should step up its efforts in reengaging US$1,5 billion of the total requirement of amortization (EBITDA) went up was $1,3 million. ment Bank (AfDB) recently indicated that with the international community and US$34 billion. three fold to $12,4 million in com- Mutizwa said the property busi- Zimbabwe requires about US$34 billion multilateral and bilateral creditors to im- Private sector would account for 23 parison with $ 3,1 million that was ness recorded an increase in EBIT- to rehabilitate its infrastructure. prove its prospects of getting funding for percent at US$7,9 billion, while govern- achieved last year. DA from $0,1 million in prior year However, researchers at Econometer capital projects.” ment and local authorities would account “The performance was on the to $1,1 million due to better rental Global Capital (Econometer) said raising Econometer attributed the deteriora- for a further US$20,7 billion, with donors back of continued improvements in yields, complemented by marginal the funding would be a “herculean task” tion across all major infrastructure to poor providing the balance of about US$3,7 both quality and quantity of prod- increases in occupancies in the year. for Harare, which is struggling to service maintenance and limited new investment billion. The water supply and sanitation ucts, cost management strategies and “There were also less repairs its US$8,8 billion external debt. in key infrastructure such as power and and resource management would require the continued positive impact of the and maintenance costs incurred in “For an economy saddled with a huge transport services. an outlay of US$3,67 billion for capi- relief that came from the Secondary the current year under review when external debt which represents 40 percent In its report, AfDB said the most viable tal works and related technical support. Scheme of Arrangement. As a result, compared with prior year,” he said. of gross domestic product (GDP), Zimba- strategy to raise funding for Zimbabwe’s newsdesk@fi ngaz.co.zw the group achieved its fi rst profi t after newsdesk@fi ngaz.co.zw Page 5 | September 5 - 11 2019 The Financial Gazette Page 6 | September 5 - 11 2019 The Financial Gazette

National News Zim firms must conquer the world Andrew Lampard Zimbabwe limiting themselves. frontiers must be the only game in which, perhaps, informed his decision to could give them wings to fl y into spaces For many years, we have seen town. minimise Econet’s exposure in Zimbabwe where Zimbabwean citizens are found, any- OR the longest time, Zimbabwe- successful organisations emerge from Across the world, trade barriers and look at opportunities in the Global mar- where in the world. an companies have been scream- Africa. are being knocked down through the ket. Their establishment of service units in Fing at government to provide Old Mutual, founded by John Fair- formation of regional blocs that signal Headquartered in South Africa, Econet South Africa and more recently in England them with a protective sheath to keep bain in Cape Town in 1845, is now a a seismic shift towards integration. has fi rmly established itself in Botswana, could open a vital door to capital markets external competition at bay, with some well-known global brand. The future therefore belongs to strong Burundi, Kenya, Lesotho, New Zealand, that can enable them to weave their way into measure of success. Another example is Anglo Amer- brands that can stick it out in the jun- Nigeria, South Africa and the United King- the rest of the continent and world through With globalisation and the world ica Corporation, founded by Ernest gle. dom, where they operate each of their busi- mergers, acquisitions, management con- converging into one gigantic market of Oppenheimer in 1905, much like Stan- To successfully compete in this are- nesses as stand-alone entities. tracts or franchises. nearly eight billion people, isn't it time dard Bank and Liberty Life. na, Zimbabwe’s corporates will need The Econet story should be an inspira- Nyaradzo’s balance sheet has been they stopped limiting themselves and While Zimbabwe has a few brands to shape up. tion to other local brands that have become strengthened by a substantial real estate move away from the notion that they that make us proud by having success- Billionaire Strive Masiyiwa household names in Zimbabwe but are portfolio and land bank, including a 75ha exist to serve only 15 million Zimba- fully gone regional, we need more dared to dream in the 1990s still to make a mark beyond the country’s piece of land in Chishawasha, which they bweans, if at all? companies to follow Econet, and today his Econet borders. The case for regional expansion, are likely to turn into a cemetery given the Assuming one company has a 100 Meikles and SeedCo’s exam- Wireless Zimbabwe though fraught with dangers, is imperative shortage of burial space in Harare, and else- percent market share of the Zimba- ple. (Econet) is reap- for our growth. where. bwean market, even at its best, that Few local companies ing huge rewards Zimbabwe’s population of only 15 mil- A signifi cant player and a front runner to can only be 15 million people. When have dared to venture out- from its expan- lion people of which a sizeable number regional and continental growth, Seed Co, you take a look at the Southern African side their comfort zones, sion across Af- have left the country in search of greener has already proven that it can be done. Development Community (SADC) re- citing the “diffi cult op- rica, Europe and pastures, must only be a launching pad for Seed Co has managed to grow its conti- gional bloc comprising of 13 nations, erating environment”. the East Asia brands that aspire to play on a regional, con- nental footprint by expanding across Africa, this increases the market to 300 million But as incomes shrink Pacifi c Rim. tinental and global scale. leveraging on the power of the “Seed Co” people, most of whom share the same because of hyperinfl ation The Econet Considering that the continent of Africa brand equity and superior seed products cultural and traditional practices — and the changing face of founder fought is home to about 1,2 billion people while which are adaptable to multi-geographical making it possible for good products shopping behaviour pat- a bruising bat- the world has a combined population of 8 settings. or services to be acceptable to most terns due to ICTs, reliance tle with former billion, the global market offers several ad- The company, in partnership with people within the regional grouping. on the domestic market president Robert vantages, including greater opportunities Limagrain’s affi liate, HM. Clause, has ven- For instance, SeedCo, the Zimba- alone is no longer via- Mugabe’s regime to for market growth, diversifi cation as well as tured into the breeding and distribution of bwean seed company has over the past ble. The search for get an operating li- access to talent, foreign investment opportu- vegetable seed business on the African con- few years embarked on a huge region- new markets cence in 1998 nities and a competitive advantage. tinent under the Prime Seed Co brand. It has al expansion programme, supplying and Nyaradzo Group, one of our home- registered operations in Botswana, Ghana, seed maize, soya, cotton and other grown Zimbabwean brands that operates a Kenya, Malawi, Nigeria, Rwanda, South seed varieties to markets in the region. unique fi nancial services model, could be Africa, Tanzania and Zambia. The African continent has a market our next best foot forward in the quest to Other top local brands that should join of 1,2 billion people, far eclipsing have more continental and global brands. continental powerhouses such as Dangote, that of SADC, so for Zimbabwean Founded by Philip Mataranyika, an ex- Old Mutual, Standard Bank, Anglo Amer- corporates to grapple and fi ght for Old Mutual employee, the group has estab- ican, Bakhresa and Ecobank in expanding the small market of 15 million peo- Nyaradzo Group founder lished a solid presence in Zimbabwe over their footprint include CBZ Holdings, Inn- ple when the huge market of Af- Philip Mataranyika the past 18 years — commanding a market scor Africa, FBC Holdings, ZB Holdings, rica beckons speaks to corporate share of more than 60 percent in the funeral Masawara and African Sun. services sector and ranking third among the Aliko Dangote, founder of the Dangote country's leading life assurers. Group, has built an empire with an annual Their story has been a fairy-tale whose turnover in excess of US$3 billion, taking target from inception may well have been to his business from his native country Nige- create a global brand. ria into countries such as Benin, Cameroon, After leaving a promising career at Old Ghana, South Africa and Zambia. Mutual in 2001, the affable Mataranyika Bakhresa Group started in Tanzania and teamed up with his wife, Mavis, to form is now one of the leading industrial houses Nyaradzo in March 2001 and before the in East Africa, with operations in Kenya, company’s eighth anniversary, it had over- Uganda, Malawi, Mozambique, Zambia, taken market leaders in the industry. Rwanda, Burundi, South Africa and Zim- Their entry point into the fi nancial ser- babwe where they took over former Blue vices sector was circuitous. Ribbon Industries. They fi rst took their funeral business to Ecobank, whose offi cial name is Eco- unchartered territories by revolutionising bank Transnational Inc, has consolidated its last rites into events that became platforms stature as a pan-African banking conglom- for families and friends to celebrate the lives erate, with banking operations in 36 African of their loved ones who would have crossed countries. over to meet their maker. It’s a feat that a few African airlines have In subsequent years, they branched out also achieved global brand status by rapidly into manufacturing through Calundike Ex- expanding the number of countries that they ports and insurance broking by way of Eu- serve, often establishing routes and stations reka Insurance Brokers, before they took ahead of actual passenger demand. a giant leap into life assurance, where the Ethiopian Airways fl ew to 36 nations in group now operates Nyaradzo Life Assur- 2016, up from 24 in 2006. ance Company. Royal Air Maroc serves 30 countries At that point, it became clear that (twice as many as in 2006). Nyaradzo was not stopping until they joined Air Côte d’Ivoire fl ies to 17 countries, the big league. and RwandAir to 16. African airlines are The company is now a fully integrated making intra-African air connectivity — a fi nancial services concern, recently incorpo- prerequisite to economic integration — a rating an asset management business and a reality. bureau de change. Telecom operators and media companies The idea of adding asset management are doing their part to advance pan-African and bureau de change facilities is a game connectivity and communications. The changer in building that critical mass need- West Africa Cable System, an alliance of 12 ed to spring into the region and across Africa operators, has connected 11 African coun- where their funeral services business could tries and Europe. While a separate alliance fl ourish since there are a lot of similarities in of 20 operators has connected 17 West Afri- the way Africans bury their dead. can nations and Europe. The bureau de change provides As a result, Internet penetration in Africa Nyaradzo with an opportunity to mop up passed 30 percent in 2016. foreign currency which they could use to African and international media com- meet their import bills for buses, hearses, panies are facilitating the free fl ow of in- spares, chemicals, graveside equipment formation, ideas, and personal connections among others under the current foreign cur- through their space as well as through in- rency shortages that the nation is facing. creasingly high-profi le meetings and events. If the group can tap into its monstrous Despite the economic challenges, there client base for support, the asset man- is never going to be a perfect time for Zim- agement company should be able to give babwean companies to expand into the Nyaradzo access to investment funds which region and beyond. If our companies are they can use to further strengthen their to grow they have to take the leap and go home-base and build a war chest to support beyond our borders. plans they might have for the region, conti- Andrew Lampard is a retired banker nent and globe. who worked in Zimbabwe and South Af- On the other hand, Sahwira Internation- rica. For views and comments e-mail to al Plan (SIP), their funeral and repatriation [email protected] services product, created for the Diaspora The Financial Gazette September 5 - 11 2019 | Page 7 National News Foreign investors chase Old Mutual Paul Nyakazeya According to statistics record positive net buy- worth $5,6 million being Exchange and the Mala- id devaluation of the local performance across its Group Digital Editor from the local bourse, for- ing were Dawn Proper- sold. The other counters wi Stock Exchange, last currency. business remained resil- eign purchases amounted ties $4,6 million, Innscor were Econet $1,9 million, month said it will apply OMZ, which returned ient and the group remains OREIGN investors to $43, 6 million worth of $1,9 million, PPC $607 Simbisa $313 745 and hyperinflationary account- to the ZSE in June last positive despite the eco- were net buyers of shares with Old Mutual 700, NMB $196 671, Cafca $221 995. ing for its Zimbabwe year after the parent com- nomic challenges being F$13,1 million worth accounting for $13,5 mil- ZB Financial Holdings Old Mutual Limited business unit in light of pany restricted its 19- currently experienced. of shares on the Zimbabwe lion. $190 160 and Mashona- (OML), whose shares the runaway inflation neg- year stint on the London It has plans to venture Stock Exchange (ZSE) Sales amounted to land Holdings $98 440. are listed on the Johan- atively affecting the econ- Stock Exchange, is still into the tourism industry in August, with particu- $30,5 million during the During the month un- nesburg Stock Exchange omy. attracting interest from after acquiring 6,6 hect- lar interest in Old Mutual period under review. der review, Cassava leads with a secondary listing The runaway inflation foreigners. The listed life ares of land in Victoria Zimbabwe, (OMZ) latest The other counters to the net sellers with shares on the Nairobi Securities is being driven by the rap- assurer recently said its Falls. figures have shown. SA avoids recession SOUTH Africa avoided a second recession in two years, with the economy growing by 3,1 percent in the three months to end- June, according to Stats SA. This is much stronger than expected: A Reuters poll of economists had fore- cast growth of 2,4 percent. SA’s economy shrank in the first quarter after more than 270 hours of load shed- ding, weak investment lev- els, a gold mining strike and a weak grape harvest. In the second quarter, the mining sector rebounded with growth of 14,4 percent — contributing a full 1,0 percentage point to gross domestic product (GDP) growth. This was thanks to the end of strikes at gold mines, but also due to a major rally in metal prices. Gold is cur- rently trading at its highest level in six years, while platinum jumped from below $800/oz in June to above $930 currently. Finance, real estate and business services increased by 4,1 percent in the second quarter. Trade, catering and accommodation increased 3,9 percent and general government services in- creased 3,4 percent. The agriculture, forestry and fishing sector contin- ued to shrink, however, and in the second quarter was 4,2 percent smaller than in the first. Construction was down 1,6 percent. The economy was still only 0,9 percent bigger in the second quarter of 2019 than a year before. On Tuesday, Stats SA re- vised the first-quarter GDP number down from –3,2 percent to –3,1 percent. Ahead of the release of the data economists expect- ed a “technical rebound” following the end of load shedding. While SA avoided a re- cession, the outlook for the economy remains bleak. Investment levels remain subdued, and businesses are struggling. The latest Absa Pur- chasing Manager's Index (PMI) data shows weaker levels of private sector ac- tivity, and a grim outlook on future business condi- tions. Also, South Africa recorded a shock R2,88 billion trade deficit for July as imports exceed exports, the South African Revenue Service reported last week. — FIN24 Page 8 | September 5 - 11 2019 The Financial Gazette Leader Page

News Worth Knowing Zim can learn from Japan PRESIDENT Emmerson Mnangagwa could do himself and the country a favour by taking to heart what he was told by Japanese prime minister Shinzo Abe last week at the Japan-Africa summit in Yokohama. Abe told Mnangagwa in no uncertain terms that he should speed up economic and political reforms in Zimbabwe and advance democratic principles. This coming from a nation that has traditionally pursued a diplomatic path of non-condemnation on Zimbabwe should sound alarm bells to Mnangagwa and his administration. In just a few minutes, Abe was able to tell truth to Mnangagwa, some- thing the Chinese — Zimbabwe's all-weather friend — and his docile Cabinet ministers and advisors have failed to do in the last 18 months. British American Tobacco Zimbabwe acting managing director Stephen Nyabadza (centre) flanked by finance In the past few months Zimbabwe’s economy has regressed and is now director Leslie Malunga and chairman Lovemore Manatsa during the 2019 half year analyst briefing in Harare worse off compared to the Robert Mugabe era. In addition, democratic recently. The firm’s volumes fell by 20 percent in the half year to June on the back of depressed demand. space is quickly shrinking following a rise in abductions of political foes BAT’s premium brand, Dunhill, was worst hit, recording a decline of 87 percent. Madison and Everest were and increased intimidation of dissenting voices. down 21 percent, while budget brand Ascot was just 2 percent lower. Picture by Freedom Mashava This is not how modern societies and emerging democracies work. History has shown us that democracy is associated with higher human capital accumulation, lower inflation, lower political instability, and higher economic freedom. Democracy is also closely tied with economic The missing cog in Zim economy sources of growth, like education levels and lifespan through improve- ment of educative institutions as well as healthcare. N THE development of modern so- over the years are difficult to quantify. an individual is motivated by profit, It then shouldn’t come as a surprise when one of the world’s largest ciety, reference is often made to the Conservative estimates put the cost at which is protected through legislation. economies conveys to Mnangagwa that the autocratic path he is pursu- Industrial Revolution in Europe, billions of United States dollars in the I bring this point up because if history ing will not only destroy the little goodwill the international community I which took place between the 18th and last decade. taught us anything, it is that when the has extended to Zimbabwe but will also destabilise the southern African 19th centuries. The Industrial Revolu- The motivation for profit should State has unfettered access to private country’s fragile economy. tion was arguably one of the reasons not be taken lightly. There are few wealth through punitive taxes and val- From 1950, Japanese leaders in the bureaucracy and ruling political why England became one of the highly businesses in the world today that are ue eroding laws, it leads to the collapse party, working in tandem with corporate executives and the opposition, developed societies in the word. in business for charity. In fact, the for- of industry. The collapse of the Soviet actively sought to manage and develop the economy. Over the 23 years The Industrial Revolution took mation of a company backed by share- Union in the latter half of the 20th Cen- from 1950 to 1973, Japan’s gross national product — the total value of many forms in different parts of the holders and a board of directors is seen tury is a clear example of this. Even the goods and services produced in a year — expanded by an average annual world, but many other countries lagged as an organisational structure suited for Chinese Communist Party recognised rate of more than 10 percent, with only a few minor downturns. There behind, and their societies failed to the pursuit of profit. this and embraced a market-driven was also a high rate of investment in technology. develop at the same rate as those that Another concerning issue has been economy as opposed to a command And since Abe took office in 2012, Japan’s nominal GDP has grown industrialised. regulation. Zimbabwe is one of the economy. by 16,5 percent, thus helping to break the Asian giant’s decades-long The literature on this topic is as most tediously regulated countries in A vibrant manufacturing sector re- terms of setting up a business. The sults in beneficial trade through value deflationary cycle, reduce unemployment to 2,3 percent and raise tax wide as it is vast but the simple fact is that without value addition brought country ranks 155 out of 190 countries addition. Zimbabwe’s lion share of ex- revenues to ease, at least slightly, the long-term problems of the highest about by manufacturing industries, in the ease of doing business index ports is primarily raw mineral exports, government debt burden in the world. there can be no meaningful develop- by the World Bank. The current gov- with limited value addition. However, in 2019 we see many of our leaders engaging in blame games ment. This is where Zimbabwe seems ernment, elected in 2018, is however According to the Reserve Bank of rather than pushing for cooperation in response to the socio-economic is- to have taken a stumble and lagged making strides towards improving Zimbabwe, gold, platinum, chrome sues bedeviling the country. The private sector has abdicated the job-cre- behind its regional and global compet- the overall ranking to attract foreign and tobacco accounts for almost 70 ation responsibility to government, and the opposition is permanently itors. investment. It has undertaken several percent of Zimbabwe’s exports, while pointing fingers, offering no tangible alternatives. Despite Zimbabwe receiving praise the import of value added agricultural The government has said many times that it was not an employment over its mineral wealth, global trends produce, electronics, fuels and motor agency and in the eye of business, government has failed to create a con- show that simple commodity exports Open Forum vehicles mean the country has a dis- ducive environment for job creation. Japan has shown how each sector are insufficient to leap frog Zimbabwe tinct uncompetitive advantage when can become a team player in contributing to the solutions of the challeng- into a “middle income” economy by with it comes to international trade. Mak- es that we face. It is a key lesson that Zimbabwe should take seriously. 2030. Zimbabwe’s struggling manu- ing our manufacturing sector compet- facturing sector is the missing cog to a Simbarashe Mangwendeza itive would go a long way in turning sustainable developmental State. the trade imbalance in our favour and Southern Africa’s Leading Business and Financial Newspaper The critical issues during the Indus- would be a bold step towards solving Established 1969 trial Revolution, which remain import- reforms to improve its ranking. These the current foreign currency shortages. Publisher: Modus Media ant in contemporary industrialisation, include the setting up of a commercial This starts with the right policy frame- is the recognition of property rights court to enhance contract enforceabili- work. EDITORIAL MARKETING General Manager - Marketing and patents that underpin innovation ty; the expansion of the Kariba South For instance, our southern neigh- Editor-In-Chief & Chief Oper .zw with an ultimate reward of profit and Power Station to enhance power gen- bour, South Africa, has restrictions on Christopher Goko: gokoc@fingaz.co.zw wealth. For such an environment to ex- eration; the creation of the Zimbabwe grey motor vehicle imports in order to Associate Editor Brand Executive - Advertising Eric Chiriga: chirigae@fingaz.co.zw Edwin Vengesa: ev .zw ist, the arms of the State have to offer a Investment Development Agency to protect its local motor vehicle industry Senior Assistant Editor pro-business regulatory environment. reduce the costs and time to set up a that employs a large number of people. Senior Sales Executives In Zimbabwe’s case, the regulatory business; and the increase in the num- To underpin this policy framework , Chris Gumunyu: gumunyuc@fingaz.co.zw Christobel Washaya: cwashay .zw Managing Editor .zw environment changes too frequently ber of corruption cases being brought they have made the country attractive Tabitha Mutenga: mutengat@fingaz.co.zw .zw and often not in the favour of private to the courts for prosecution. These for vehicle assemblers to build facto- enterprise. This causes anxiety and developments are a departure from the ries in their country. Assistant Editor Sales Representatives - Harare John Kachembere: kachemberej@fingaz.co.zw .zw makes it difficult for long term capital old but investors will require the con- Zimbabwe’s government needs to Markets Editor Frank Nyandoro: fny .zw to take a vested interest in the develop- sistent application and maintenance of take a leaf from such policy interven- Kudakwashe Chideme: chidemek@fingaz.co.zw Edreck: emudzingany .zw ment of the local manufacturing sector. such reforms for increased buy in. The tions in order to promote the manufac- Group Digital Editor Sales Representative - Bulawayo Even in cases where such laws are buy-in is necessary for the country to turing sector. We have discussed a local Paul Nyakazeya: nyakazeyap@fingaz.co.zw Clever Pedzisai: [email protected] pro-business, enforceability of such truly create an investor friendly envi- motor vehicle policy in various policy Companies Editor laws is difficult. Examples of regula- ronment. papers but made no tangible decision Shame Makoshori: makoshoris@fingaz.co.zw Brand Executive - Events tory changes causing great uncertain- I would argue, however, that gov- to translate this into action. The gov- Chief Sub Editor K .zw Tawanda Chiwara: chiwarat@fingaz.co.zw ty include the laws underpinning the ernment needs not concentrate on ernment is the biggest buyer of motor Brand Executive - Subscriptions currency regime between 2016 and attracting foreign investment before vehicles, yet local vehicle assemblers Staff Writers Tatenda Taka: t .zw Omega Ukama: [email protected] 2019. The agricultural sector remains making the current environment at- are operating at sub-par capacity levels Subscriptions Representatives Adelaide Moyo: [email protected] mired in great uncertainty since 2002 tractive to local investors. This is be- because government prefers imports. Ronald Madiviko: rmadivik .zw Nelson Gahadza: [email protected] over an appropriate land tenure system cause the success of local businesses A blanket ban on government ve- Freedom Mashava: [email protected] Elizabeth Nyamaruze: eny .zw following the expropriation of white- will attract investment from abroad on hicle imports would go a long way in Production Supervisor Chief Executiv owned farms to address historical land a sustained basis. capacitating the local motor vehicle Kudzai Rushambwa: rushambwak@fingaz.co.zw .zw imbalances. The one thing that the country manufacturing sector, increasing em- Bulawayo The indigenisation law has been needs to do to make its manufacturing ployment and reducing demand for Editorial, Advertising & Circulation 1st Floor, Princess Court, a source of uncertainty since 2008 sector competitive is to adopt mod- foreign currency. 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. when it was promulgated as it threat- ern technologies, which will help the In conclusion, I would like to quote Tel: +263-242-781 572 Tel: (029)75873/75270 ened the rights of foreign enterprise country catch up with global trends in the Spanish poet and philosopher Website: www Distributed by: ANZ owners in the same manner as the the manufacturing sector and become George Santayana, who says: “Those VOLUNTARY MEDIA COUNCIL OF ZIMBABWE agrarian reforms. The Indigenisation competitive. The adoption of modern who do not remember their past are e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced and Economic Empowerment Act technologies will be key in ensuring condemned to repeat it.” I only hope news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of was, however, amended in April 2018 a sustainable development State go- that policy makers can take a leaf from Zimbabwe at: No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 to become investor friendly. But the ing forward. It must be motivated by the aforementioned when drafting pol- Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz investment opportunities lost and the a conducive business environment icies meant to drive the manufacturing Zimbabwe uncertainty created by this legislation where the effort and innovation of sector forward. The Financial Gazette September 5-11 2019 | Page 9 National News

Winston Chitando Dispose ZMDC, govt told

Shame Makoshori Companies Editor

HE government must disinvest from the Zimbabwe Mining Development Corporation (ZMDC) in order Tto unlock opportunities for private capital, a mining consultant has said. John Halloway, who authored the book “Mining in Zim- babwe”, said the disposal of ZMDC could see the unit be- ing transformed into an efficient operation that spans from diamond to gold extraction. Government has struggled to recapitalise ZMDC, the once influential mining empire, which has been ruined by decades of mismanagement and corruption. Halloway also suggested changes to the operations of Minerals Marketing Corporation of Zimbabwe (MMCZ). “Zimbabwe must sign a contract with a surveillance agency to undertake the MMCZ oversight function on be- half of the Ministry of Finance. Join the rand common cur- rency zone. A weakening currency is an asset if our mineral products are to compete internationally. Using or linking to a strengthening US dollar will price us out of the market,” he said. He added that government must not attempt to induce mining investment with special financial incentives like soft loans in local currency. “The evidence is plain-provide investors with a long- term hard currency environment and secure property rights and they will come. Do not take a ‘free ride’ government shareholding, even if offered. The government directors will be torn between the dire need for profit and the con- straints of administrative probity,” he said. Halloway also suggested that government draft back diamond giant De Beers to the controversial Chiadzwa di- amond fields if it is to build a robust and sustainable gems sector. He said although it was unlikely De Beers would agree, involvement of a globally-acclaimed outfit in Chiadzwa would send positive signals to investors that Zimbabwe is ripe for capital. “Invite De Beers to take control of the diamonds sector, under a government. If they agree — I have to acknowl- edge that it is not all that likely — their presence will greatly encourage mining investment in other sectors,” said Hal- loway. Mines minister Winston Chitando last year invited De Beers to mine diamonds in Zimbabwe, but the invitation was turned down. There has been bad blood between government and De Beers. In 2011, former Mines minister, Obert Mpofu described De Beers as an “international looter” and threatened to take legal action against the mining giant, which he accused of creaming off diamonds during a decade of exploration, which ended at the turn of the century. “They were there for 15 years, they didn’t say they found diamonds in Zimbabwe. It does not take five minutes to find diamonds in Marange. When the government started asking (questions), they left. Their withdrawal was so sud- den. All the diamonds are not accounted for. They exported not hundreds but thousands of tonnes of diamonds (without Kimberley Certification),” Mpofu claimed. De Beers has denied looting diamonds in Zimbabwe. Zimbabwe has struggled to manage its diamond resourc- es for the benefit of its people. [email protected] Page 10 | September 5-11 2019 The Financial Gazette

I will bring transparency he Mineral Marketing Corporation of Zim- quite comprehensive in *Muzenda holds a BSc UNISA. He joined Anglo chief executive of the Zim- a Zanu PF ticket and was babwe (MMCZ), a state entity established regulating performance and honours degree in Econom- American Corporation as babwe Alloys Mines Limit- subsequently appointed are attractive to investors, to market the country’s minerals except for ics from the University of a graduate trainee focus- ed until 2008. In 2013, he deputy minister of Public T therefore I don’t see any Zimbabwe and a Masters in ing on marketing and then was elected MP for Gutu Service, Labour and Social gold and silver, had been operating since 2013 with- need for changes. Business Leadership from rose through the ranks to be West constituency under Welfare. out a substantive board and general manager (GM) until this year when Tongai Muzenda was appoint- ed GM. Kuda Chideme, our Markets Editor inter- viewed Muzenda on his appointment and insights into the operations of MMCZ. Below are excerpts.

Q: How do you think tor. Engagements are un- you have fared since you derway to assist the mining were appointed general industry so that the operat- manager of MMCZ? ing environment is condu- A: MMCZ is doing very cive for production targets well since my appointment to be met. as the substantive GM. As Q: What is your out- a corporation our relation- look for the rest of the ships and visibility have year in terms of sales? improved signifi cantly. A: Currently sales Q: When you were to July 2019 stand at appointed there were US$1,067 billion and we concerns that your ap- target to get to US$1,8 bil- pointment was political lion. given your close links to Q: What are you doing the ruling party (you are to improve the perception the son of the former Vice of the international mar- President and you also ket regarding Zimbabwe- served as a Zanu Pf leg- an sourced diamonds? islator). Do you honestly A: We have been lob- think that you were given bying through regional this job because you were and international diamond the deserving candidate? communities. We are also a A: The post of GM at strong member of the Kim- MMCZ is technical and berley Process Certifi cation the job was granted to me Scheme family and we at- based on my experience in tend all plenary sessions. the mining sector as well as Our diamonds are trading my professional and aca- freely. demic Q: qualifi - How cation. The current policies are much Q: quite comprehensive dia- As you in regulating performance mond carry and attractive to investors, stock- out therefore I don’t see pile your any need for changes... are we man- sitting date on and does it when bother you that some peo- are we likely to have an- ple view you as a symbol other auction? of political patronage and A: The stockpiles in- do not appreciate your formation can be obtained professional capabilities? from ZCDC and Murowa. A: Refer to the answer The next auction will be above. held during the week be- Q: In the past MMCZ ginning 9 and ending 13 has been known to be a September 2019. hotspot for corruption. Q: How best do you What are you doing to think we can improve depart from this culture? earnings from the chrome A: We are having stake- sector? holder engagements for A: Outside of engaging various minerals. To date the enabling institutions, MMCZ has held sound there is need to capacitate consultative engagements the small scale miners for with the chrome, granite, more sustainable produc- gemstone and PGM sectors tivity. Furthermore, there is and more are coming. need for value addition and Q: This year the benefi ciation. mining sector Q: What other has not per- policy chang- formed as es would you expected in suggest to terms of out- improve the put. What country’s measures mining sec- have you tor? put in place A: The to minimise current poli- the impact on cies are the country's mineral earnings? A: Various issues af- fect the mining sec- September 5-11 2019 Page 11 Companies&Markets The Financial Gazette ECONOMIC TURBULENCE ROCKS PPC — P12 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) PPC, one of southern Africa’s leading cement producers, says Zimbabwe’s current economic situation has had an adverse impact on its operations. 0,06% 0,62% 0,29% 0,15% 0,27% 11,0743 11,14 58,83 16 345,07 1 529,36

StanChart weathers Dairibord finds investor volatile environment Nelson Gahadza Staff Writer for Malawi unit TANDARD Chartered Bank Zimbabwe (Stan- Chart) says its balance sheet remains strong de- spite the country’s volatile operating environment. Adelaide Moyo S The southern African country’s economy is charac- Staff Writer terised by foreign currency shortages, unavailability of electricity, depressed industry capacity and sharp re- AIRIBORD Holdings (Dairibord) says duction in disposable incomes following the introduc- it has secured an investor for its Malawi tion of the Zimbabwe dollar. Dunit and will soon dispose of the strug- Lovemore Manatsa, StanChart’s chairman, said the gling operations. bank achieved a profit after tax of $31,1 million in the The Zimbabwe Stock Exchange (ZSE)-list- half year to June 2019, notwithstanding the country’s ed milk processor announced that it was off- economic challenges. loading Dairibord Malawi in March following “Standard Chartered remained committed to driving consistent weak performance of the business. commerce and prosperity through our unique diversi- Josphat Sachikonye, Dairibord’s chairman, ty,” he said. last week said a purchaser was found and sale StanChart’s income rose to $62,2 million in the in- agreements had been signed, but certain con- terim period mainly driven by fees and commission, ditions precedent are yet to be satisfied for the which increased to $20,5 million compared to $17,5 transfer of operations to take place. million achieved during the same period last year. “The disposal process for Dairibord Malawi The bank’s net interest income rose to $24 million is at an advanced stage. An investor has been from $18,1 million, with non-interest income of $20,6 secured and parties are in the process of final- million. ising the deliverables in line with agreed terms. Other income came in at $17 million, bringing the The disposal process will be concluded by the total income to $62,2 million. end of August 2019,” he said. Manatsa noted that the bank’s digitalisation strategy Sachikonye noted that shareholder approval has begun to bear fruit through operational efficiencies Dairibord was forced to let go of its Malawi unit by the adverse economic situation in Zimbabwe. in terms of ZSE requirements was not neces- and reduction in cost of providing services. sary because of the size of the transaction. He added that the performance was due to growth Dairibord was forced to let go of its Malawi cash operating cycle through reviewing credit By portfolio, liquid milks and beverages in earning assets and tariff reviews in line with the in- unit by the adverse economic situation in Zim- terms to align with emerging trends and devel- volumes grew by 13 percent and three percent flationary environment as well as diligent cost manage- babwe after it failed to leverage its “clean” bal- oping export initiatives in the region,” Sachi- respectively while foods volumes declined by ment. ance sheet to rescue the ailing subsidiary. konye said. 26 percent compared to the same period last The StanChart boss further indicated that the intro- Sachikonye said the operating environment He said sales volumes for the second half are year. Dairibord recorded a profit of $3,797 mil- duction of the local currency saw the bank reviewing its in Zimbabwe is predicted to remain fragile and expected to be lower than what was achieved in lion during the six months ended 30 June 2019, product lines to fulfill customer needs while its operat- uncertain making it difficult for businesses to the first half of the year. compared to $270 000 achieved in the prior pe- ing costs marginally increased despite the high inflation implement their growth plans. Raw milk intake increased by 22 percent riod on the back of volume growth. environment. “The supply of electricity, water and foreign during the review period ahead of the national Sachikonye said while revenue increased “The quality of the bank’s loan book continued to currency is expected to remain constrained. Un- average growth of 14 percent. by 139 percent to $118,1 million from $49,4 improve as reflected by the significant reduction in the der such circumstances, the company will focus “Raw milk intake continues to grow in re- million, total operating costs increased by 123 non-performing loans ratio from 2,1 percent as at De- on the survival and hold strategy,” he said. sponse to the group’s efforts to close the de- percent. cember 2018 to 0,7 percent as at June 30, 2019,” he He said Dairibord will focus on supporting mand-supply gap for milk products in the coun- “This growth was on account of volume said. viability and growth of the milk supply chain try as well as reducing dependence on imported growth and gradual price adjustments to align In the period under review, the bank’s loans and ad- as an import substitution and export growth milk powders. The business will continue to with market conditions and cost push pressures. vances increased to $211,3 million compared to $145,8 strategy. invest in supporting viability of the milk supply Price adjustments were however below the de- million during the same period in 2018. “Critical for survival in the second half of chain which is increasingly becoming vulnera- preciation in exchange rates in order to balance StanChart’s deposits from customers reached $1,08 the year are cost reduction and efficiency im- ble under the prevailing macro-economic con- viability with affordability,” he said. billion compared to $721,8 million during the same provement initiatives to mitigate inflationary ditions,” he said. He said the ability to pass on to the consum- period in 2018. Deposits from banks also increased to pressures, reducing foreign currency liabilities Dairibord achieved a volume growth of er the full impact of cost increases was con- $4,9 million during the interim period under review, up and limiting borrowings to support critical sup- three percent to 40,3 million litres, constrained strained by declining disposable incomes. from $292,019 during the six months of 2018. ply and demand requirements, optimising the by worsening supply of inputs. [email protected] [email protected] Page 12 | September 5 -11 2019 The Financial Gazette Companies & Markets Zimplats invests US$115m in projects Nelson Gahadza “Another US$15,5 million was spent on the furnace Staff Reporter rebuild and improvements project. This was mainly ex- penditure on materials as installation started after 10 IMPLATS says it invested US$115 million in cap- June 2019 when the furnace was taken down,” it said. ital projects during the year ended June 30, 2019, In terms of operations, Zimplats said both mining Zwith the majority of the funds being spent on stay- and milling operations performed well during the year in-business projects. producing 6,7 million tonnes and 6,5 million tonnes re- The latest capital expenditure is, however, slightly spectively. below US$135,3 million spent in the previous compa- Total ore mined decreased by two percent compared rable period. to the previous year which included 713 000 tonnes from The Australia Stock Exchange-listed miner said Bim- the discontinued South Pit Mine. ha Mine, which is undergoing redevelopment, achieved “Tonnes mined from the underground mines in- design production capacity in April 2018 as planned, creased by nine percent compared to the previous year, ahead of completing the installation of its full ore-han- driven mainly by Bimha Mine which operated at design dling infrastructure. capacity throughout the year, and improved team pro- However, the outstanding infrastructure, compris- ductivity arising from the implementation of a success- ing the south crusher and ore conveyancing system, are ful team restructuring exercise,” said the group. scheduled for commissioning in the first quarter next During the year under review, Zimplats benefited year. from an export incentive of US$36,4 million, compared Zimplats’ mining operations produced 6,7 million tonnes during the year. “A total of US$17,4 million was spent on this project to US$13,6 million for the prior year, and the recogni- during the year, bringing the total project expenditure as tion of a US$9,6 million refund due from the Zimbabwe at June 30, 2019 to US$83,3 million,” Zimplats. was spent on the replacement of trackless support equipment, in line with the cur- Revenue Authority. The platinum giant said a total of US$18,6 million mining machinery, including ancillary rent replacement policy. [email protected] Economic turbulence rocks PPC

Adelaide Moyo Staff Writer

PC, one of southern Africa’s leading cement produc- ers, says Zimbabwe’s current economic situation has Phad an adverse impact on its operations. Zimbabwe’s year-on-year inflation for June reached 176 percent, before government suspended its publication, underpinning an intensifying economic crisis character- ised by rapid deindustrialisation and shortages of foreign currency, fuel and electricity. “Trading conditions in Zimbabwe remain challenging due to liquidity constraints and inflationary pressures. PPC remains focused on optimising its local operations and implementing its cash preservation strategy to ensure the business is self-sufficient,” PPC said in an operational up- date last week. The Johannesburg and Zimbabwe Stock Exchange-list- ed firm said devaluation of the RTGS dollar against the United States dollar impacted on revenue, which declined by between 30 and 35 percent in rands. PPC said cement sales for the Zimbabwe operation contracted by as much as 30 percent due to a weak eco- nomic climate. Cement pricing, which was aligned with input cost in- flation, was higher than the previous comparable period, PPC said. Earnings before interest, tax, depreciation and amor- tisation (EBITDA) declined by 10 to 15 percent, while EBITDA margins remained within the guided range of 30 to 35 percent. PPC's concerns come as the southern African country’s economy is hemorrhaging at an alarming rate, with experts saying all key indicators point to sustained recession. The International Monetary Fund has projected that the country’s gross domestic product will shrink by 5,2 per- cent this year — significantly down from its initial growth forecast of 4,2 percent. The gloomy outlook also comes as the Confederation of Zimbabwe Industries has forecast that industry capacity utilisation will further decline to 34,3 percent this year — from 2018’s 48,2 percent. PPC’s Zimbabwe operation has current cash and cash equivalents amounting to R206 million, but its ability to access foreign currency is constrained by deteriorating economic conditions in the country. It has also been unable to repatriate dividends, posing a risk to business continuity and sustainability. Nonkululeko Gobodo, PPC chairperson, said the li- quidity risk on foreign creditors and lenders has increased due to the delay of foreign payments. “To mitigate this risk, PPC Zimbabwe has set out a con- tingency plan to help ensure that operations are not inter- rupted due to difficulties in remitting payments to foreign suppliers. Through the contingency plan, PPC Zimbabwe is exploring various mitigation methods such as increasing export sales and obtaining a trade financing mechanism fa- cility,” she said. [email protected] The Financial Gazette September 5-11 2019 | Page 13 Companies & Markets BAT’s revenue projected to increase

Paul Nyakazeya In the half year period, requirements to pay duty in Group Digital Editor foreign currency negatively affected BAT’s premium brand, Dunhill, lowering volumes by 87 percent given RITISH American Tobacco (BAT) Zimbabwe’s the obtaining foreign currency shortages. revenue is expected to increase by 50 percent to The value for money and low value for money brands B$68,3 million in the full year to December 31, also registered a 21 percent and two percent decline in 2019 due to inflationary pressures. volumes owing to low disposable incomes. This was after the cigarette manufacturer registered “Foreign currency import duty will continue to put $29,46 million revenues in the half year to June, pre- pressure on the company’s premium brand sales in the dominantly driven by price increases. year. The business will focus on effective cost manage- Zimbabwe is currently witnessing waves of massive ment and effective route management,” said MMC Cap- price increases, following a recent hike in fuel and elec- ital tricity prices. BAT managed to source raw materials at lower prices MCC Capital said BAT’s performance is expected to and this resulted in a decline in cost of sales to revenue be better in the second half of the year due to anticipated ratio to 20 percent from 27 percent during the same pe- improvement in seasonal demand. BAT recently opened negotiations with the Reserve Bank of Zimbabwe to pay riod last year. While demand for cigarettes is almost inelastic, low US$22 million it owes to foreign shareholders. Earnings before interest, tax, depreciation and amor- disposable incomes and stagnant wages continue to im- tisation margins declined from 54 percent to 41,4 per- pact volumes. a peer average PE of 21,4x, and an EPS of 45 percent relative to the current price cent during the period as selling, marketing and adminis- “This will translate into earnings per share of $0, 87 (+1) of 87 cents points to a fair value of 30 cents. We thus recommend a sell tag tration expenses increased in line with price increases in per share. Our price to earnings valuation metric using price of 1871,85c, a downside potential on the counter,” said MMC Capital. the economy. [email protected] Willdale pins hope on govt projects Nelson Gahadza Staff Writer

ILLDALE, one of Zimbabwe’s largest brick manufacturers, says it is pinning its Whope on anticipated government projects to boost revenue streams. This comes as several construction firms’ order books have taken a strain from the country’s ailing economy and a sharp fall in construction work. Mavuto Munginga, Willdale’s company secre- tary, said the company has lined up several govern- ment projects. “Several enquiries for the projects that include cluster housing, shopping malls, and university in- frastructure are under consideration. Prospects of the financial year will depend on the outcome of these projects,” he said. Munginga also noted that demand for bricks re- mained high underpinned by housing development and school upgrading projects during the period. However, product off-take was hindered by lack of financing as increasing inflation and depleting earnings affected disposable incomes and mortgage financing. Willdale manufactures and markets a range of brick products including face brick, semi-face brick, common brick and paving bricks for driveways, swimming pool surrounds and garden landscaping. During the third quarter ended June 30, 2019, the group’s revenue increased by 285 percent despite the weak macroeconomic environment, driven by the 26 percent increase in volumes and a 204 percent in- crease in average prices. “Year to date revenue is 124 percent above pri- or year while volumes are two percent below prior year,” Munginga said. Nyasha Motonda, the company’s chief executive, recently told The Financial Gazette that the compa- ny’s balance sheet was now debt free, resulting in excess capacity to produce for the regional market. The company also recently brought into the mar- ket a new brick product, Topaz, which has character- istics that match bricks imported from Botswana and South Africa. He said the company had also secured business from government’s rebuilding exercise of areas af- fected by Cyclone Idai in April. As part of balance sheet restructuring, Willdale disposed part of its land for $11 million, with the proceeds utilised towards servicing debt and settling preference shares obligations. [email protected] Page 14 | September 5 -11 2019 The Financial Gazette

Econet disrupts life assurance Welcome Mavingire one looks at the life assurance sector in ment or some specified event in the dis- day, it is difficult to imagine someone even thinking the wake of the re-emergence of infla- tant future. of taking out a life assurance policy, let alone hav- HE LIFE assurance industry has experienced tionary trends, one gets the impression Such a product only makes sense in ing enough disposable income for such long-term significant disruption emanating from the of an industry under siege. The tradi- a stable economic environment where savings. This is threatening the very existence of the emergence of digital technology, which has en- T tional life assurance product involves the purchasing power of that sum as- long-term insurance industry. hanced delivery channels. a certain monetary sum assured, which sured is maintained. And with the value It is, however, not all doom and gloom. While tra- At a time the ordinary man’s mind is still fresh is paid out in the event of death, retire- of the local currency collapsing by the ditional players have been sustained by pensions busi- from the hyperinflation era of 2006 to 2008, when ness, the introduction of new products coupled with digital technology for enhanced delivery channels has breathed new life to the industry. One such product is funeral assurance, which has seen significant growth in recent years, taking the place of life insurance. Similar to a whole life policy, a funeral insurance cover an event whose occurrence is certain but whose timing is uncertain. However, a funeral policy is not only affordable but is meant to ensure a decent send off for the in- sured and his/her family members, something that resonates with the Zimbabwean culture. To ensure a wide reach, technology is now being used both for taking out cover and making payments for premiums easier and seamless. New players have also come in to explore such opportunities and take away market share from es- tablished industry players. The industry regulator, the Insurance and Pensions Commission (IPEC), in 2017 also came up with a regulatory framework to facilitate financial inclusion in the insurance industry through micro-insurance schemes targeting the low end of the market.

A look at some industry statistics gleaned from the latest IPEC report (as at September 31, 2018), reveals wide dispersions among the industry players, suggest- ing different product mix and strategies. Although there are five composite reinsurers also serving the sector, the high retention levels among the life assurers suggests focus should be more on the pri- mary insurers than the reinsurers. It is therefore little surprise that the Top Company in the life insurance sector goes to Econet Life (Pvt) Ltd, a relatively new- er entrant that managed to leverage on technology to spread a low-cost product to the ordinary man. Being part of the Econet group, one can argue that the phenomenal growth of the Ecosure brand was thanks to a captive market through easy access to sub- scribers under sister mobile network provider, Econet Wireless and its offshoot Ecocash. But then Econet Wireless is only one of three network providers in the country. This speaks to visionary and adaptive leadership at Econet in creating a seamless integration between mobile technology and financial services, and ensur- ing total market dominance in either business because of cross-reliance on each other. Formed in 2014, Econet Life is now owned 85 percent by Cassava SmarTech Zimbabwe Limited, formed out of the unbundling of the fintech business of Econet Wireless Limited. The balance of the share- holding is in the hands of Econet Group Staff Pension Fund. The life assurer has taken advantage of its cheap- er distribution channels through mobile phones to Econet subscribers to offer cover similar to its com- petitors but at a fraction of the premium required. With premiums as low as $1 per month, the com- pany is able to reach the lower end of the market ef- fortlessly. As a result, Econet Life’s growth since for- mation has been nothing short of phenomenal and the company is already counted among the largest life in- surers in the country, alongside some long established brands in the sector. The Financial Gazette September 5-11 2019 | Page 15 Companies & Markets Agribank targets $40 million Adelaide Moyo riculture, despite a poor agricultural season last year emanating term, prospects for the bank remain positive. The bank re- Staff Writer from unfavourable weather conditions. mains hopeful that profi tability will be sustained during He also added that government is working to ensure that the remaining half of 2019. Business growth will be HE Agricultural Development Bank (Agribank) Agribank’s capital levels meet the $100 million require- anchored on expanded lending to agriculture and inno- says it is targeting to raise $40 million to fi nance ag- ment by December 31, 2019. vative ICT based products,” he said. Triculture in the upcoming season. “This is necessary for the bank to offer adverse range Agribank profi ts were up 76 percent to $7,274 Market experts said the funding will be crucial for of banking and fi nancial services with special focus on million during the half year ended June 30, 2019, farmers to return to the fi elds during the 2019/20 agricul- the agricultural sector. from $4,135 million recorded in prior year driv- tural season that is a few months away, after an infl ationary "The capital adequacy ratio closed June 30, 2019 en by growth in non-interest income from ex- surge hit their savings, making it diffi cult to purchase in- at 24 percent, well above the regulatory minimum of panded ICT products and e-channels as well as puts required for farming. 12 percent,” he said. interest income. Sam Malaba, Agribank’s chief executive, said the fi - This was after the bank’s tier one capital was Non-interest income increased by 121 per- nancial institution has been underwriting a quality loan $73,552 million under base one against a regulatory re- cent to $15,744 million during the review book to good performing farmers and those with irrigation. quirement of $25 million and $65,380 million using period, from $7,130 million in prior “In order to expand fi nancial support to agriculture, base two, which sets aside capital for market and comparable period due to in- the bank will target raising $40 million through agro-bills operational risk. creased customer transac- during the 2019/20 agricultural cropping season. Malaba said the economy remains tions from electronic "The liquid and prescribed asset status for the 2019/20 dampened by infl ation, currency vol- banking. agro bills have since been granted and the bank is confi dent atility, industry capacity decline, fuel that it will be able to raise the targeted amount,” he said. and electricity challenges. Sam Malaba newsdesk@fi ngaz. Malaba said there was need to continue supporting ag- “However, beyond the near co.zw

Govt keeps NATIONAL UNIVERSITY OF Border Timbers SCIENCE AND TECHNOLOGY

guessing Applications are invited from suitably qualified and experienced the University towards building a world-class, progressive persons for the following post that has arisen in the University: and high ranking institution. Nelson Gahadza • Be an active member of relevant committees of Senate and Staff Writer boards, with specific responsibility for policy determination INSTITUTIONAL RESEARCH and oversight on standards of academic, operational, ORDER Timbers says government is yet to make a student welfare and support services. commitment regarding the settlement of a US$125 AND QUALITY ASSURANCE Bmillion award handed down by the International KEY COMPETENCIES AND ATTRIBUTES Centre for Settlement of Investment Disputes (ICSID) to the DIRECTOR The successful applicant will be expected to display a good company. combination of the following: ICSID is a World Bank-affi liated international appeals This high profile position seeks a creative thinker who will be • Excellent oral and written communication skills, computer court which dismissed Zimbabwe’s application to annul an expected to spearhead the integration of the currently devolved literacy, and the ability to articulate and report on visions, award granted to Border Timbers and other claimants by the institutional quality assurance functions of the university to advance perspectives, events and trends pertaining to institutional court following government’s compulsory acquisition of academic excellence in the realm of STEM higher education and quality. farms and forestry plantations at the height of the country’s the Education 5.0 focus in the contemporary Zimbabwean context. • Ability to connect smoothly with the internal and external controversial land reform. The anticipated diverse footprints of the IRQA Director and his/ publics. “Although the award is fi nal “Although the her Office will include, inter alia, walking and working the NUST and binding, there is currently no award is fi nal and vision, mission, and strategic directions through promotion of • High level decision-making and problem-solving skills. clarity around the government’s binding, there is customer satisfaction, enhancement of operational and financial • Client-centred focus and proven organizational skills. timetable for settlement and currently no clarity efficiency, championing continuous improvement efforts, and how the award will be shared around the govern- prompt detection of impediments to quality practice. This will entail • Ability to create and promote a culture of proactivity, between the company and the ment’s timetable for constant, effective and systematic interaction with other members innovation, transparency, efficiency, collaboration, and of the NUST Management Team, coupled with a tactical oversight other claimants,” said Peter settlement and how flexibility. of the operations of the entire university community, to ensure Bailey, Border Timbers judicial the award will be shared between the protection of the University’s reputation and its compliance with manager. QUALIFICATIONS AND EXPERIENCE company and the prevailing quality assurance advisory and regulatory frameworks. He added that the latest de- The post requires an individual with:- velopment has affected the tim- other claimants,” said Peter Bailey Reporting to the Vice Chancellor through the Pro-Vice-Chancellor 1. An earned doctorate degree in quality assurance or ber producer’s plans to exit judi- management or any closely related discipline, backed cial management. Bailey had for (Academic, Research and Consultancy), the Director will maintain working links with the Pro-Vice-Chancellor (Innovation and by strong and well-aligned undergraduate and masters’ the past two years insisted that the company was on solid degrees preferably in a STEM discipline, all from recognised ground to exit judicial management as it was now operating Business Development), the Registrar, the Bursar, the Librarian, Principal Officers’ Deputies, Faculty Deans, Dean of Students, Universities or other higher education institutions. profi tably. Directors of Institutes, Centres and Sections, Chairpersons of Meanwhile, Bailey said while electricity supply has been 2. At least ten (10) years’ experience working in quality Departments, and other line managers. The position therefore assurance systems implementation and management at a restored to all operations in areas affected by Cyclone Idai, calls for a flexible but focussed individual with a proven inclination Border Timbers remains unreachable due to poor and dam- university or other high profile institution or organisation, or towards organisational management at senior level, and/or similar experience in university teaching, research or other aged road infrastructure. expertise in service delivery. “Lumber production is lower compared to same period senior position in which quality assurance is embedded. prior year due to low production in the months of December 3. Any relevant career development courses and experiences KEY PERFORMANCE AREAS 2018 to April 2019 at one of our sawmills caused mainly will be considered. by the general power outages and Cyclone Idai devastating The successful applicant will be expected to: effects that occurred on 15 March 2019,” he said. • Source, avail and manage knowledge and information APPLICATION PROCEDURE He added that the knock-on effect of the cyclone resulted on quality assurance matters pertaining to teaching and Applicants must submit six (6) sets of each of the following in the Charter sawmill resuming operations in the fi rst week learning, research and development, student welfare, documents:- Application letter, Curriculum Vitae (giving full of May 2019, thereby negatively affecting both production campus facilities, all-round operational efficiency, and any personal particulars of applicant including full name, place and and sales into the market as the road infrastructure was dec- other functions as defined by university leadership from date of birth, qualifications, employment and experience, present imated. Sales volume for the period were higher due to in- time to time. salary, telephone numbers and the names, addresses (including creased demand on the local and export markets. • Contribute to the initiation, development, implementation email) and telephone numbers of three contactable referees) and “Higher sales volume was achieved out of sales from and review of academic programmes and other projects to certified copies of certificates addressed to:- buffer stock,” he said. safeguard institutional quality standards. Bailey noted that treated poles which are mostly tender • Identify deficiencies in systems and operations and proffer The Senior Assistant Registrar (Academic) based refl ected a decline in both production and sales com- effective corrective solutions. National University of Science and Technology • pared to the previous period following a general slowdown Initiate and execute relevant education and training to P O Box AC 939 in the export markets. University employees of various grades. Ascot “Generally, the outcome is now looking positive on the • Monitor institutional effectiveness and assist managers to poles market,” he said. make informed decisions. Bulawayo, ZIMBABWE During the 11 months to May 2019, Border Timbers • Investigate client needs and experiences and solve revenue increased to $32 million compared to $19,2 million problems through consensus. The closing date for the receipt of the applications is Friday, 13 . mostly driven by improved quality and an improved aver- • Collect and analyse client performance data to explain September, 2019 age selling prices on lumber. problematic issues and predict trends affecting quality Bailey said the net loss before tax was a result of unre- product and service delivery. The National University of Science and Technology is an alised exchange losses on foreign debts amounting to $10,9 • Liaise with local and international vanguards and custodians equal opportunities employer. In the interest of promoting million. of quality assurance to enhance the university’s competitive gender parity, female candidates are encouraged to apply. He said the loss before tax excluded the effects of the advantage. fi nal biological asset valuation which will be conducted at • year end. Integrate agreed international standards into the work of ONLY SHORTLISTED CANDIDATES WILL BE CONTACTED. newsdesk@fi ngaz.co.zw Page 16 | September 5-11 2019 The Financial Gazette Motoring

New Audi A1 ups the ante in the premium compact hatchback sector.

New Audi Q3 now available from South Africa dealers with 1.4 VW’s all-new T-Cross compact SUV launches in South Africa in third week of September. TSI power. SA Festival of Motoring VW/Audi South Africa declare their intentions

all about to change though as the pres- If the Dune was fun, customers company went the extra mile to pres- the performance credentials of the big ence, among many existing models, looking for a GTI Mk7 swansong ent its new models and existing high 300kW all-wheel drive SUV that en- of the all-new A1 and Q3 proved, at version will be very chuffed with the performance derivatives with an elec- capsulates Audi’s drive into what they least at the more accessible end of the limited edition TCR model that has trifying launch encompassing sound call “a new era of Vorsprung.” market. 213kW at its disposal to dispense and lights and an on-screen presenta- The excitement certainly wasn’t TOP GEAR with Further up the scale, the spotlight with the 0-100 run in a conservatively tion of all the featured models to en- limited to Audi’s display boma as the Richard Wiley fell on the swift and sexy A7 Sport- claimed 5.6s. sure that the large audience wouldn’t company had lined up none other than back which will cruise into Audi Derived from the two-time overall miss out in the crush around each car. multiple motor racing champion, Mat- showrooms in the fourth quarter of winner of the international TCR racing The new A1 is unashamedly aimed tias Ekstrom, to exhibit his car control OUTH Africa is far from alone 2019. And talking of cruising, the series, this hot Golf will go on sale in at buyers occupying the premium end skills on the Audi skid pan in an R8 in ditching traditional “static” highlight for most was the presence early 2020 but fans will need to hurry of the compact hatch market and while V10 that simply has to be one of the Smotor shows as the demise of of the fully-electric e-tron which will their orders as only 300 cars will be specifi c details will have to wait until most aurally stimulating cars on the what was colloquially known as JIMS almost certainly be imported in limited coming in. after the imminent press launch, I can planet. sadly proves, but the deserted halls numbers during the course of 2020. Heading into altogether different tell you the newcomer looks altogether And to cap off a busy day, Audi at the Nasrec exhibition centre have More of Audi later, but for now, territory, the Amarok family will be slicker, sharper and more sporty, espe- had arranged for us pen-pushers to be given way to a burgeoning Festival of back to blood brother Volkswagen. extended with the imminent arrival of cially with its new nose treatment that chauffeured at high speed, in the dark, Motoring held annually at the show- First off, be aware that the Polo Dune the 165kW Canyon model that’s dis- features a row of narrow intakes im- around Kyalami by professional driv- piece Kyalami circuit. will not go into production but will in- tinguished by a host of internal and mediately above the main grille. ers using a multitude of RS and R8 de- This venue offers manufacturers/ stead spend its life in VW’s AutoPavil- external styling and design tweaks, not Despite the more-sporty disposi- rivatives. If you ever thought quattro importers the opportunity to get visi- ion museum at the Uitenhage factory. least the availability of a unique Hon- tion, space looks to be improved too was a marketing gimmick, think again. tors into their cars, be it on the Kyala- This is rather ironic as the Dune, built ey Orange metallic paint fi nish and and that’s certainly the case with the The grip levels and traction provided mi circuit itself or on a skid pan or by VW’s local Product Engineering orange stitching applied to internal fi t- all new compact Q3 SUV that I’ve by this well-proven and constantly-re- testing off-road tracks all contained in team, is inspired by South Africa’s di- tings. Please head to www.vw.co.za to subsequently sampled and enjoyed on fi ned system are simply astounding a tight area. verse landscapes, specifi cally the dry get the full picture. the recent press launch. and while I was riveted by the expe- Notwithstanding this broader ap- and dusty Great Karoo and Kalahari Of most importance in terms of For now, the altogether more sharp- rience, whatever model I sat in, I have peal, there were still a number of Desert. market potential is the somewhat de- ly-styled Q3, now in SA dealers, will to declare my favourite as the RS3 Se- notable absentees at the 2019 Festi- Unashamedly constructed as a rug- layed arrival of the T-Cross compact be powered by the familiar 1.4 turbo dan caressed around the track by the val, but no-one could ever miss the ged off-roader, the Dune features a SUV. The model on display was paint- four and will be offered in three model smoothest driver of the night, Tasmin Volkswagen and Audi presence as the host of unique features such as a be- ed in a rather attractive and fresh Teal derivatives each of which will feature Pepper. two companies showcased a verita- spoke paint colour and interior trim, green which seems to be the chosen greater levels of standard equipment Certainly the VW/Audi people ble goldmine of new or special mod- raised ground clearance and special theme colour for promotional materi- than hitherto. made good use of the more varied fa- els and provided the public with the raised external air fi lter, off-road nav- als. If the suave and oh-so-sporty A7 cilities at Kyalami as compared with opportunity to be chauffered around igation, off-road tyres, LED lighting, There’s no doubting that the new- Sportback, due in showrooms in the the static displays of old at Nasrec as Kyalami in high performance deriva- underbody protection and purpose-de- comer is related to the established fourth quarter, caught the eye along their Amaroks stretched their legs and tives. signed internal and external luggage Tiguan as typical VW design cues, with the recently updated TTS, the customers’ fears of steep ascents and It happens that the two companies carriers to name just a few elements. including excellent external fi nishing new Q8 and the muscular RS4 and descents on gymkhana and off-road had very different reasons for attend- Doubtless the design team had a detail, are readily evident. RS5 performance models, it was the courses, Even the ferris wheel was ing the Festival. VW, as the long-es- lot of fun engineering this one-off, Available from September in RSA, presence of the e-tron that came as the branded with VW roundels. tablished passenger car leader in South bush-whacking hatch based on the the T-Cross will sport an 85kW TSI biggest surprise. While the one company aims to Africa, is rarely short of product to platform of SA’s best-selling passen- motor that will be supplemented ear- While RSA is slow to introduce the entrench itself at the top of the passen- maintain its position at the head of the ger car, but for me, it was the atten- ly in 2010 by a 70kW version but infrastructure need to support all-elec- ger car tree, the other seeks to make fi eld but just to cement its dominance, tion to detail that really stood out. both aim to bring in new buyers with tric vehicles, Audi makes no bones greater inroads in the premium sec- it brought along an armada of vehicles The special paintwork and additional a well-judged combination of style, about the need for this situation to be tor, and judging by the products on from the record-breaking all-electric trim items displayed a fl awless fi nish practicality and economy and an open- addressed with alacrity as the rest of display, they have the wherewithal ID_R racer to the upcoming T-Cross as did the bespoke internal trimmings ing price ticket for the lower-powered the world will be leaving South Africa to do so. And with hindsight, I can’t compact SUV, to the concept Polo and additional equipment items which version of under R300 000. Look out behind. help but think that the late Ferdinand Dune to the fi ery Golf GTI TCR to the included rear door hinges altered to for a full report on the 85kW model Clearly brought in for now as a Piech would be wearing a very satis- muscular V6 Amarok Canyon. allow for 90-degree door opening in after the press launch event in the halo model for the brand, the e-tron fi ed smile if he could see the enthusi- Audi had more urgent reasons to order to facilitate movement of a large third week of September. should make its mark in limited num- asm that’s infusing the South African be in the limelight as a shortage of metal container occupying the rear Next door at Audi, the positive bers on local shores during 2020 but division of an empire he once ruled to fresh product in the last year or so has seat area. vibes could be seen and felt as the for now, be prepared to be surprised by such good effect. slowed down showroom traffi c. That’s The Financial Gazette September 5-11 2019 | Page S1

Choosing the right tank to safely store your water

N THESE tough economic times, it’s important to spend our money wisely, choosing quality items that Itruly add value to our lives. Design Jojo Tanks are expertly designed and of the highest quality, providing you with storage solutions built to last for many happy years. The streamline tank designs fit easily close to the side of a building or on top of a stand- tank design is important to ensure no harmful bacteria can enter the tank if installed correctly. Guarantee Every JoJo Tank comes with a 10-year guarantee on material and workmanship. Properly installed and main- tained JoJo Tanks have, however, been known to last well past the 20-year mark. The superior quality of our tanks all comes down to the materials we use.

Quality Materials JoJo Tanks are made of base polyethylene with pig- ment anti-oxidants and UV-stabilisers for an extended service life. To prevent damage to stored water and oth- er substances for human and animal consumption, we use the best food-grade, quality virgin LLDPE (linear low-density polyethylene) for all our water tanks. Quality materials set the base standards for safe water storage as no harmful chemicals will be entering your water from the tank. Harmful Chemical Free JoJo Tanks are also BPA-free. BPA is harmful for your long term health, ensure your Tanks is BPA free. UV- Resistant Tanks should be UV-resistant to ensure maximum du- rability in Zimbabwe’s harsh weather conditions and to ensure the water remains Algae free. Correct Installation Always ensure your tank is installed and plumbed correctly to ensure the tank is not compromised and af- fects the health of your water. Quality of life is important and that is why you need to ensure you choose only the best quality tanks that are from a reputable supplier, like Jojo tanks. Jojo tanks are exclusively available at Halsted Builders Express na- tionwide. Be prepared when looking for your next safe water storage solution and be serious about quality. Page S2 | September 5 - 11 2019 The Financial Gazette Crusader Real Estate:

Crusader Real Estate: 26 years of success

Crusader Real Estate Consultancy managing director Fortune Mangwiro. RUSADER Real Estate Consultancy (Pvt) Ltd (Crusader) is a wholly-owned Zimbabwean Ccompany of Valuation Surveyors, Real Estate Agents, Auctioneers, Property Manager and Advisors and is registered with the Estate Agents Council of Zimbabwe. Crusader strives to provide a professionally-re- searched and accurately presented real estate service to clients making sure that assignments are completed right the first time. The firm demands and expects truthfulness and openness from its staff and all its associates in the discharge of duties to clients and colleagues. Over the years the increasing complexity of indus- try, commerce and finance has demanded the need for a Real Estate Company with substantial resources and a local and worldwide knowledge of the property market, capable of undertaking assignments in all corners of the country. This has to be done according to local and international statutory requirements, while maintaining a professional approach. Crusader provides tailor made services to meet the set objectives. Client expectations and requirements are continually monitored at all times through knowing and understanding the requirements of each particular task undertaken, doing the job right the first time and initi- ating action to changing requirements within the ever dynamic property, industrial and economic field. The company’s consultants have been playing an increasingly vital role in government, local authority and private sector in recent years. Services offered by Crusader Real Estate • Valuation of Immovable and Movable properties/ assets • Real Estate broking encompassing acquisition, disposal and leasing of assets • Property Management and Development • Auctions of all types and classes of immovable and movable properties • General Consultancy on property, investment and related matters

To Page S3 The Financial Gazette CruSAder 26-yeAr ANNIverSAry SPeCIAL FeATure September 5 - 11 2019 | S3 Crusader: Celebrating 26 year of success

From Page S2 tenance and rent service charges. Valuation and general practice The firm believes that in order to The basis for individual valuations carry out day to day administration it varies according to the purpose for is necessary for decisions to be made which the valuation is required. within client’s requirements and acting This in turn is affected by require- on client’s interests. The company ments of other professions such as makes these decisions and acts on accountants, insurance companies, them in a manner considered appropri- lawyers and bankers. ate under prevailing circumstances. Crusader undertakes valuations for Project management death duties, acquisitions, disposals, More often than not Capital Proj- taxation, assessment, compulsory pur- ects contracted out to private devel- chase, probate and mortgage or routine opers require the service of competent revaluation of company property for project managers to make sure that annual reports and accounts. there is a co-ordinated approach to the Investment project. Crusader's services are tailored to And more importantly project man- working closely with the financial agers ensure that these projects are community in order to offer advice kept within budget and completed on soundly based on knowledge of all the target in accordance with set specifi- alternatives available to investors. cations. Its services and expertise extend Crusader has trained and experi- to pension, insurance, unit trusts enced project managers to handle any and local authorities, companies and property related project from residen- individuals. tial units to industrial and commercial The service includes sale or acqui- development. sition of properties, portfolio manage- The firm has successfully han- ment, performance measurement and dled major projects including Norton analysis and advice to developers on Johannesburg Township — a devel- funding. opment in excess of 2 300 residential The last has particular significance and commercial stands. at a time when financial institutions Agency have become increasingly selective in Crusader agency services involve the choice of proposals accepted. the buying and selling of all classes of Crusader professional advice can property and the leasing or negotiation ensure that proposals are presented of tenancies on behalf of occupiers. to the institution in the most favor- This role involves the seeking, able form consistent with the market finding and acquiring of property, rent conditions. reviews and lease restructuring advice, It carries out feasibility studies for landlord and tenant advice, the ratio- individual and/or institutional invest- nalisation of space and comprehensive ments to show the viability or other- advice on business relocation. wise of proposed projects and where The function also involves the projects are to be carried out the cost creation of property development sit- implications involved and the likely uations through site finding, viability period it will take to recoup expenses studies and finding negotiations all Property management with the aim of creating space for Crusader's prime objective in occupation whether it is for industrial, carrying out management on behalf office or retail sectors. of clients is to relieve them of all day Auctions to day problems in the administration Crusader carries out auctions of of their properties and at the same both movable and immovable property time keeping them aware of any major aiming to achieve the best price for developments which may influence the client. policy decisions or values. Its positioning in the property It provides a professional service world puts it on a favorable position that constantly monitors legislation, to achieve the highest price for the rent reviews and lease expiries, main- aforementioned.

Crusader Real Estate staff members. Page S4 | September 5 - 11 2019 CRUSADER 26-YEAR ANNIVERSARY SPECIAL FEATURE The Financial Gazette

The Crusader Real Estate Consultancy team has vast experience and are together steering the firm forward. Meet the team behind Crusader RUSADER Real Estate Con- duty and insurance. sultancy (Crusader) is headed He was involved in the General Re- Cby Rombo Fortune Mangwiro, valuation of all non-residential proper- a Fellow of The Real Estate Institute of ties in Norton and Ruwa. Zimbabwe (REIZ) and holder of a BSc. Ashley Godknows Muzarurwa is a Hons. in Property Development and highly-motivated and innovative young Estate Management (NUST) with a wide professional who holds a National Diplo- range of experience in all sectors of val- ma in Valuation and Estate Management uation and property sales, management from the Harare Polytechnic College. and development. He currently holds the position of Having worked for the Harare City Assistant Valuer specialising in Property Valuer and Estates Manager’s division Valuations and Management. Away from for many years, his experience encom- the office he enjoys the outdoors and passes all classes of immovable and traveling. movable assets including agricultural, He also enjoys partaking in sport- industrial, commercial and residential. ing and fitness activities among other Mangwiro worked for the Mining In- things. Currently, Muzarurwa is studying dustrial Pension Fund as property man- towards a BSc. Hons. in Property De- ager before moving to Mabikacheche velopment and Estate Management with and Associates T/A Surveying Services, NUST. before founding Crusader as Managing Sinikiwe Derera is the letting man- Director with Raymond Muzembe as ager. She holds a Bcom in Marketing Finance Director and Administration. Management from the University of Muzembe attained his Public Ad- South Africa (UNISA). She also holds a ministration and Accounting Diploma Certificate in Banking with the Institute in 1972 while in the Public Service of Bankers of Zimbabwe (IOBZ) and is occupying various positions until going currently studying with the Estate Agents on an early retirement while he was an Council of Zimbabwe. assistant secretary in 1988. Sinikiwe was with Kamunda He is an Executive Director Finance Investments as a Sales and Marketing and Administration at Crusader since its Executive before moving to E.M. Invest- inception in 1993. He has a wealth of ex- ments in 2014 were she obtained vast perience in Project Management gained experience in Property Management as over the years. a Property Administration Secretary and Charlotte Makwarimba has over 10 Business Sales & Marketing Executive. years’ experience in Real Estate and In the sales department is Sibusiso she is Crusader's chief administrator. Tshakalisa who has worked as Legal She holds a Higher National Diploma Secretary at Stumbles and Rowe and in Office Management and Administra- Gill, Godlonton and Gerrans before tion from the Harare Polytechnic and moving to Acutts Midrand, South Africa Certificate of Proficiency in Insurance where she worked as an Intern Estate (Short Term) from Insurance Institute of Agent. She joined Crusader in February Zimbabwe. 2012. She holds a National Certificate She is currently studying towards a in Secretarial Studies, Interior Deco- diploma with the Real Estate Institute rating Diploma and a Pastoral Ministry of Zimbabwe. She is an expert in the Diploma. application and use of property related Esther Gwarazimba is the personal software’s that include Tech Real Estate assistant to the managing director. She and Pastel. obtained her Diploma in Secretarial in Prior to joining Crusader, she worked 2002 before joining Semprex Pharma- for various organisations, including ceutical as internal sales lady. She then Premier Insurance and the Peoples Own joined Royal Car Sales in February 2007 Savings Bank (POSB). before moving to Crusader as a recep- In valuation and research services tionist in September 2010. is Muzivi Agree. He holds an Honours Her past experience has proved Degree in Rural and Urban Planning invaluable in her manning of the front (Project Planning and Management) office. from the University of Zimbabwe and Tabeth Kamaswa is the Secretary he is currently studying towards a REIZ to the Executive Director. She holds a qualification. Diploma in Secretarial Studies from He worked for Choruma Marias as Kushinga Pekelela. assistant valuer and Northway Real She has worked for various organi- Estate before joining Crusader. zations including Tees Sensing Engi- He has vast experience in valuations neering and Green Olive Primary School for mortgages, rentals, sales/purchase, before joining Crusader Real Estate rating, accounting/balance sheet, estate Consultancy. The Financial Gazette CRUSADER 26-YEAR ANNIVERSARY SPECIAL FEATURE September 5 - 11 2019 | S5 Crusader's major assignments

RUSADER Real Estate Consul- babwe, the then Jewel Bank, Ernst & tancy (Crusader) is one of the Young, Syfrets Trust and Executors, Cfirms carrying out Valuations Master of High Court, the then Public for the Reserve Bank of Zimbabwe Service Medical Aid Society, Zimbabwe (RBZ) Homelink Scheme and Standard Development Bank Services, ZUPCO, Chartered Bank. Privatisation Agency of Zimbabwe and It successfully carried out the the Metropolitan Bank of Zimbabwe. valuation of Zisco Steel assets which The firm was also appointed by included land, buildings, identification Kudenga and Company to do valuations and location of all estate-related assets of Zimbabwe Building Society proper- on its purchase by Essar. ties in Marondera and Norton. The team that possess various Its major assignments include the qualifications ranging from University valuation of all the Forestry Compa- degrees, Diplomas and are all at various ny Assets which included land and stages of Real Institute of Zimbabwe buildings, plant machinery and office Course, was been involved in the 1998 equipment. Harare Revaluation for the City of Ha- Crusader was also involved in the rare, the valuation of land and buildings valuation and disposal of ENG (Pvt) for various clients including Camelsa, Ltd under the liquidator. ZESA, First National Building Society, It is currently engaged by a number National Insurance Company of Zim- of financial institutions.

The Crusader team in pictures. Page S6 | September 5-11 2019 The Financial Gazette

Back To School Govt speaks on school fees, groceries

RIMARY and Secondary Education minister up, that’s why we allowed a slight Government gave schools around stipulated parameters. Paul Mavima says government has moved in school fees increase. Some schools the country the green light to increase “We have therefore allowed for modest increases P to stop the buying of groceries by parents on are demanding children to come with their tuition fees and levies for third in school fees to about $600 and $800 and for some top of school fees and levies. groceries, we are looking into that term to enable them to survive the schools from $800 to $1 200, but there are some Mavima recently told Senate that the government issue and I tell you the number of harsh economic climate. schools that clandestinely further increased their is looking into the issue with a view to stop the prac- schools doing this is out of this world, Mavima was, however, quick to fees and even asked parents to bring groceries, of tice. so we are making sure that this doesn’t point out that schools won’t be al- which the lists were even outside this world and we “For boarding schools, prices of food has gone exist,” he said. lowed to increase school fees beyond ensured this does not happen,” he said. The fee increases compound pressures on strug- gling parents and guardians whose earnings are be- ing eroded daily by the rising cost of living without corresponding salary increases coming their way from employers both public and private. As of 2013, the country had nearly 8 200 primary and second schools dotted across Zimbabwe whose ownership is split between church organisations, government, private and councils, which own nearly 80 percent of the schools. In terms of the existing government policy, all schools with the exception of those in private hands must apply to the ministry of Primary and Second- ary Education for permission to review their tuition and levies. But when the second term came to an end early this month a majority of the schools indicated that they will be increasing fees for the third term. Government had previously indicated that it was now up to schools and parents to sit down and de- cide which fees structure suit both parties with the ministry only coming in to legitimise the agreed fig- ures. Meanwhile, government said it has secured over $17 million for improved meals being served in schools under the Home Grown School Feeding Programme. Primary and Secondary Education deputy min- ister Edgar Moyo said in the next school term, all Early Child Development up to Grade Seven pupils will now be accessing a balanced meal at school. Initially, schools were feeding only ECD classes. Moyo said the schools feeding system had over 4,5 million beneficiaries who constituted at least a third of Zimbabwe’s population, while the latest census showed that the scheme has reached 9 566 schools. “Children are the most affected during drought times, therefore, it is government’s responsibility to look after their welfare, especially in terms of nutri- tional welfare,” he said. “The ministry has been receiving funds for pro- teins since in the past, issues of lack of balanced diet were raised and in March we got half-a-million, May another $2 million and $6 million in June and in a few weeks’ time $8,8 million will also be re- leased for the food programme. “Government is not only concerned about feed- ing learners, but it wants that which benefits their bodies.

Primary and Secondary Education minister Paul Mavima. The Financial Gazette September 5 - 11 2019 | S7

Zimnat partners Access Finance IMNAT customers can now access bureau de wealth management. customers to buy and sell foreign currency, as them a one-stop shop for various insurance and change services at selected Zimnat branches across The group is associated with Sanlam, the well as access foreign currency for business or financial services,” said Stanley Mazorodze, the country, following the establishment of a largest non-banking financial institution on the travel on a willing seller willing buyer basis, as Zimnat General insurance’s chief executive Z continent. prescribed by the Reserve Bank of Zimbabwe, officer. partnership between Zimnat General Insurance and Access Finance. Zimnat General Insurance is Zimnat’s short- following the establishment of an interbank “Access Finance is driven by a unique team Zimnat offers businesses and individuals a variety of term insurance division. market. of professionals who possess years of experience products that include motor insurance, home insurance, Access Finance, which is a specialist Zimba- “Zimnat exists to make the life of its clients in the banking and finance sector, locally as well life assurance, travel insurance, funeral cover, health and bwean financial services institution that provides better. The establishment of bureau de change as internationally. Zimnat is proud to be associat- accident insurance, pension schemes, unit trusts and private fixed income, structured finance and foreign services at Zimnat branches is part of Zimnat’s ed with this work ethic,” he said. exchange services, launched services to enable bid to make life better for its clients by offering Stanbic expands education support

STANBIC Bank has established a life-changing part- nership with a non-profit making organisation, Nduna Zimbabwe Trust. The partnership is set to leave a lasting impression on the lives of underprivileged but high-achieving students who are currently on the bank’s bursary pro- gramme. The leading financial services institution has part- nered Nduna Zimbabwe Trust to ensure the beneficia- ries of the bursary programme get a full complement of their educational needs from financial requirements to the provision of psychosocial support as well as career guidance among other needs as they pursue their academia. Patson Mahatchi, Stanbic Bank Zimbabwe Head of Private and Personal Banking, said the institution was committed to taking its bursary programme a step further for greater impact and support of students. “We are grateful to Nduna Zimbabwe Trust for join- ing us in our endeavour to bring out the best in these students by monitoring their academic performance and supporting them on a less formal and more social and psychological level”, said Mahatchi. The Standard Bank subsidiary’s new partner, Nduna Zimbabwe Trust, has a mandate to support initiatives that promote better livelihoods and enhance dignity and quality of life for marginalised and disadvantaged persons and communities As part of this partnership, six students from the country's leading tertiary institutions were beneficiaries of state-of-the-art laptops purchased by Stanbic Bank as additional support. Mahatchi said the purchase of the laptops is in line with Stanbic Bank’s parent company — Standard Bank Group’s key strategic drive of focusing on sustainability “to help the students achieve their set goals without unnecessary limitations.” He said the number of students under the pro- gramme has grown significantly since the launch of the support programme and that the financial institution had witnessed some of their beneficiaries graduating as engineers, medical doctors, and accountants. Among the beneficiaries who graduated is an engi- neer who is now a successful entrepreneur and another who is now a medical doctor, currently doing his resi- dency at Chitungwiza Central Hospital. Mahatchi said Stanbic's role as part of the founda- tional pillar of education will only be complete when the young academics graduate to become avid profes- sionals, which is why the institution decided to take a step further from just providing tuition and residence fees. Speaking at the handover event, Farai Mpofu, Nduna Zimbabwe Trust Director, expressed great hope in the new partnership with Stanbic Bank. “We are grateful that Stanbic Bank is among the first corporates to embrace our initiative of committing to the education of students as we provide the interface between corporates and beneficiaries,” said Mpofu. “The bank is greatly impacting the lives of these young students and we are excited to complement their efforts in the best way we can”, she added. Page S8 | September 5 - 11 2019 leading accounting firmS Special feature The Financial Gazette Old Mutual launches emergency rescue service LD Mutual, premium African financial services group, has partnered with ace air and ambulance to offer an emergency air and road ambulance medical rescue package oto its existing and new customers. as part of the old mutual emergency medical Rescue package, the two firms would be offering both road and air ambulance rescue services. Speaking at the launch, Shepherd fungura, old mu- tual insurance company managing director, said that focus should always be on the customer, which is why the company was introducing a lifesaving product. He said that this was another milestone that old mutual insurance company was adding in what was proving to be an exciting year for one of Zimbabwe’s leading insurance entities. “the product seeks to provide affordable options in times of emergencies, hence we think it’s necessary because after accidents and other emergencies, many people do not get immediate help, unfortunately some- times some of the cases are a matter of life and death, Members of staff at the Old Mutual Emergency Rescue Service Launch event. and some people actually unfortunately pass away when they could have been assisted on time, he said. “When we looked at the responses we were getting from our customers when we asked them what they wanted from us, the issues around health were raised and that’s where we thought perhaps we should offer this service to our clients. "the facilities we are offering are that ace air and ambulance provide either road or air ambulance ser- vice to get our clients to hospital and for that, one has to pay $40 per month.” He said old mutual insurance company has been receiving compliments which demonstrate that it takes care of customers’ needs. “these milestones included old mutual insurance Company’s re-certification to ISO 9001:2015 for the period 2018 to 2021, being re-rated a+ by global credit rating company and being declared winner of the customer care ex- cellence award in the When we looked Short term insurance at the responses we category at the Bold were getting from ads/ Business Weekly insurance awards. our customers when "despite the chal- we asked them what lenges in the operating they wanted from environment, we thank us, the issues around our customers for your health were raised continued support,” he said. and that’s where we Speaking at the thought perhaps we same occasion, James should offer this ser- Halsted ace air and vice to our clients. ambulance managing director said that his company was proud to be service provider for such an innovative package. “our company which is in the second year of operation is one of three companies accredited by the european aeromedical institute (eurami) who set worldwide standards. "We are one of three air ambulances in africa to gain this accreditation. We are also accredited by the international assistance group (iag) which is the biggest group of rescue assistance companies global- ly,” he said. “In 2017 we were nominated as a finalist for Global air ambulance of the year by the international travel insurance conference (itic) held in Barcelona. "the partnership with old mutual stands to be one where we rely on brokers to sell the product widely so that this kind of service is accessible to the majority of the population, as well as being an affordable one.” the medical package offers members transportation by ground ambulances, fixed wing air ambulances or medical helicopter services to the nearest appropriate medical facility. pre-Hospital emergency medical care provided by fully trained critical care paramedics/flight nurses or on call specialist doctors depending on the nature of the problem. a medical call centre with critical care paramed- ics, nurses and doctors is available to provide advice 24 hours. What distinguishes the old mutual insurance medical rescue package from the rest is it there is no waiting period, preauthorisation delays nor short falls. this is all available for a monthly fee for individu- als of ZWl $40 paid quarterly or annually. members are issued with membership cards for easy identification. Corporate membership is also available and rates can be discounted depending on volumes. The Financial Gazette ZIM National Awards Special Feature September 5 - 11 2019 | S9

ZIM senior vice president Chido Zimunhu with chief executive Godfrey Sunguro at the National Awards Ceremony. Celebrating excellence, competitiveness, innovation & sustainable development HE Zimbabwe Institute of Man- Rinos Mautsa CEO Chartered Institute agement (ZIM) Leadership Ex- of Customer Management Tcellence Awards are a prime event Most Influential Leader where recognition is given to business Worthwhile Mugabe CEO Worthwhile leaders for exceptional performance in Investments the previous year. The institute's mandate is to ensure that it contributes to Zimbabwe’s nation- Celebrating busi- al development through management ness excellence and and leadership capacities development achievement is at the and ensuring that organisations are re- sponsive, viable and sustainable. heart of the institute. The roots of true achievement lie in The first award was the willingness and capabilities of busi- conferred in 1978 and ness leaders and personalities to create since then several top and build successful business entities managers and lead- that are competitive, innovative and also lead to the sustainable development of ers in Zimbabwe have the nation as a whole. been recipients. The ZIM Leadership Excellence Awards are the most prestigious awards conferred by the management institute. Celebrating business excellence and achievement is at the heart of the insti- 1st Runners Up tute. The first award was conferred in National Contribution Award 1978 and since then several top manag- Bulawayo City Council ers and leaders in Zimbabwe have been Small to Medium Enterprises Award recipients. Clossack Trading The 2018 Zimbabwe National Lead- Customer Service Excellence ership Excellence Awards were event Broadway Spar full with a number of corporates and Public Sector Award individuals being recognised for their Joshua Nqabuko Nkomo Polytechnic success, leadership qualities and capa- Private Sector Award bilities. Cell Insurance Business Women of the Year 2018 ZIM national leadership excel- Sikhathele Musakwa of Oakleigh lence award recipients House Young Leader Award Kudzai Nyika of Doves Winners National Contribution Award 2nd Runner Up Econet National Contribution Award Small to Medium Enterprises Award NSSA Snow White Small to Medium Enterprises Award Customer Service Excellence Rams Security Peace Security Customer Service Excellence Public Sector Award TIB Insurance Brokers ZETDC Gweru Public Sector Award Private Sector Award Bulawayo Polytechnic Mukumba Brothers T/A Inter Africa Private Sector Award Business Women of the Year DSK Mandas Marikanda CEO Women’s Young Leader Award Microfinance Bank Auxilia Dzenga of Moonlight Young Leader Award Page S10 | September 5 - 11 2019 ZIM National Awards Special Feature The Financial Gazette ZIM national awards in pics The Financial Gazette September 5 - 11 2019 | Access Finance Bindura Nickel Corporation | September 5-11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 1 NMB 2 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 3 NMB 4 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 5 NMB 6 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 7 NMB 8 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 9 NMB 10 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 11 NMB 12 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 13 NMB 14 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | NMB 15 FMHL 1 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | FMHL 2 FMHL 3 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | FMHL 4 FMHL 5 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | Page 17 Column Recruit and select people on merit

IF YOU want Singapore to succeed…you must have Economic Performance that multinationals bring to the market in organisations being staffed by incompetent a system that enables the best man and the most at the London School “forces domestic players to improve their people who are less innovative. Just reflect on any “suitable to go into the job that needs them…” This of Economics and own productivity ― driving down prices, organisation that is not doing well, you will note what Singapore’s first prime minister, Lee Kuan Yew said. partners from Stanford increasing demand and creating more that the major reason is low staff capacity of the He was right ― countries that recruit and select people and Harvard universities choices for customers”. people who were elevated into roles for which on merit to fill public service positions tend to do well (2007), better managed The biggest threat to meritocracy they have no capacity. economically. firms report higher is patronage. A recruitment process Zimbabwe as a country needs to embrace Government initiated reforms tend to be driven by this productivity and resilience anchored on political patronage will bring meritocracy in hiring people if we are to dream cream of professional staff. Without such capable staff to negative survive incompetent people into the organisation. of economic transformation. All the countries that even well-intentioned reforms will fail largely because economic swings. In the The cost is huge for the organisation. Due have implemented well known and documented incompetent people resist change. They are afraid new same study they note that HR Perspective to corruption, most of the recruitment economic transformations anchored such changes will make them worse off. New systems will multinationals across all with processes in organisations with poor transformation on meritocracy in every part of expose their incompetence even more. They will fight well- countries studied tend to Memory Nguwi governance structures are based on their society, including the hiring of staff. Once intentioned government reform agendas. be more productive than patronage. The worrying part is that even that has been done, the impact will be massive on Selecting employees on merit is even more important local firms. The reason is that they select people for lower-level positions, patronage has taken the socio-economic front. This is not an easy task than looking for financial resources to support the on merit and they have superior know-how and route. as incompetent managers prefer “incompetent” government agenda. It is a tough call but this is where technology. I want to argue that the reason most of the methods of hiring people. reforms must start. According to the same study, countries with poorly governed organisations are struggling is lNguwi is an occupational psychologist and Research evidence shows that countries that use more multinationals tend to perform better than not due to lack of funding but a result of the use managing consultant with Industrial Psychology meritocracy in hiring staff tend to have better economic those without. It is noted that the competition of a patronage system in hiring. This has resulted Consultants. He writes in his personal capacity. growth and less corruption. When meritocracy has taken root in our institutions, economic reforms are easy to implement. Given decades of economic decline and corruption, most organisations need a cleansing process targeting the recruitment and selection process. This will ensure they start getting the best person available for each job. Remember a system that is not driven by meritocracy promotes incompetent people into roles. Roughly if 15 percent or more of your key roles are occupied by incompetent people, you can try whatever reform you want, but it will take ages to even record marginal impact and eventually it will fail. One of the human resources areas where corruption is rampant is the area of recruitment and selection. People want their colleagues and relatives to get jobs in return for favours and other benefits. This is prevalent in both the private and public sectors, but more pronounced in organisations that lack proper governance structures. A cursory look at recruitment practices in Zimbabwe shows that recruitment and selection corruption is prevalent in organisations that have weak recruitment and selection policies. Such policies are dominated by unscientific methods of selecting people. In these organisations, more weight is put on qualification and experience of candidates when shortlisting candidates despite ample scientific evidence showing that the two parameters have a very weak relationship with actual job performance. Such organisations dislike more scientific methods (testing for cognitive ability, personality, and integrity through psychometric tests) of selecting employees as it denies them the opportunity to bring in relatives and colleagues. Organisations that use better recruitment and selection methods get the best talent. The organisation, stakeholders, and individuals all benefit in the process as the organisation will deliver better quality products and services to clients/ customers. Recruitment and selection of people lead to better organisations performance. According to research by McKinsey (2007) in conjunction with the Centre for Coca-Cola tops profit estimates with higher prices, less sugar OCA-COLA posted a profit that beat estimates as the beverage giant got another boost from Cdrinks with less sugar, more than offsetting the company’s sluggish home market. Global unit case volume rose three percent in the second quarter, helped by a seven percent spike in Asia, where Chinese consumers have been key to the company’s success this year. The metric slipped in North America for the third straight quarter. Coke, grappling with the strong dollar, has already warned that earnings will be roughly flat this year. It updated its forecast for the full year on Tuesday, saying it now expects to post organic revenue growth of five percent, up from the four percent it had issued earlier. At the same time, it expects stronger-than-expected currency effects the rest of the year. Coke, like its chief rival PepsiCo, has struggled to boost beverage consumption in its home market. The company’s North America unit has benefited from higher prices on drinks, while less-sweet beverages have helped boost results. Coca-Cola Zero Sugar logged a seventh straight quarter of double-digit volume growth globally, it said. The company is pushing deeper into the canned coffee market after its high-profile acquisition of the British cafe chain Costa for $5,1 billion. Coca-Cola HBC, one of the company’s bottlers, recently said it will launch Costa Coffee in at least 10 markets in 2020, including Russia, Bulgaria, Greece and Poland. — Bloomberg Page 18 | September 5-11 2019 The Financial Gazette Column Tax reliefs for retrenched workers HERE are a number of ways in The starting point in the employee will not be separate exemption provisions from the rest of the which jobs are lost and these include taxing severance pay is that it taxable on the said exempted benefits contemplated above. Tmutual separation, retrenchment, forms part of the employee’s amount. Any pension or Therefore employers should take care to ensure that dismissal, retirement among others. In the taxable income because it cash in lieu of leave do these amounts are exempted under their provisions current hyperinflationary environment, arises from past services not qualify for exemption to maximise the employees’ after-tax earnings. The retrenchment counts for the highest number rendered. All amounts in relief notwithstanding they discount or benefit on sale of motor vehicle to an of job losses as employers adopt cost respect of services rendered may also be paid upon employee who was 55 years or above on the date of rationalisation strategies or close their by an employee in the past, retrenchment. These are sale of the motor vehicle to him or her is fully exempt businesses. present or to be rendered in taxable in full. in terms of the law. Passage benefit on termination of Where an employee is dismissed the future constitute gross Similar benefits as employment, any journey undertaken by an employee through no fault of his or her own, an income and may not be contemplated above may whose costs is borne by the employer is also fully employer often pays compensation known taxable if exemption for Tax Matters include school fees, medical exempt if it represents the first of its kind to be as severance pay. In practice severance such amounts is provided for with aid cover, disposal of a motor paid by the employer to the employee. The amount pay and retrenchment package are used within the law. Marvellous Tapera vehicle to an employee at a of any contributions paid to a medical aid society interchangeably. Retrenchment of at Meanwhile, the law discounted price or for no by an employer on behalf of his employee whether least five employees within a period of provides for the exemption of the severance consideration, passage benefit among others. during or termination of employee’s employment is six months requires the employer to file a pay, gratuity or similar benefit arising These should be aggregated as part of the fully exempt from tax. The Income Tax Act defines a notice of intention to retrench to the works on termination of employment due to severance pay for purposes of determining “medical aid society as any society or scheme which or employment council and, in the absence retrenchment. The exemption is a third of the the exemption. However, benefits such as is approved by the commissioner”. This implies of these, to the retrenchment board. This package or the first $10,000, whichever is medical aid, passage benefit, disposal of a that medical contributions made to an unapproved article unpacks the tax issues of severance the greater amount. However, the maximum motor vehicle at a subsidised price or for medical aid society do not rank for exemption as pay from an employee perspective. exemption is $20,000. This means that no consideration to an old person etc have aforesaid so is a cash payment given to an employee in place of medical aid contributions. “The starting point in taxing Meanwhile, a severance pay is that it separate exemption forms part of the employee’s applies to amounts taxable income because it payable by way of commutation arises from past services of a pension or rendered. All amounts in annuity from the respect of services rendered Consolidated by an employee in the past, Revenue Fund or a present or to be rendered pension fund, other in the future constitute than a retirement gross income and may not annuity fund to an be taxable if exemption for employee under such amounts is provided for the age of 55 within the law. ” whose employment is terminated due to retrenchment. A third of the amount or ZWL10 000 whichever is the greater is exempted from tax provided that the maximum exemption shall be limited to ZWL20 000. A commutation implies giving up part or all of the pension payable from retirement in exchange for an immediate lump sum payment. However, in cases where a person is over the age of 55, any pension granted to the employee is fully exempt. The above severance pay and pension commutation exemption amounts were reviewed with effect from January 1, 2013 and converted from United States dollars to Zimbabwe dollars on a 1:1 basis through Statutory Instrument 33 of 2019. Whereas most statutory deductions, exemptions and credits were reviewed through the recently gazetted Finance (No.2) Act 2019, these exemptions were not reviewed. As a result, these have lost their economic value as reliefs to employees and we call upon the government to review these amounts to cushion the affected employees. In order to process the payment of retrenchment or other similar lump sum payments, a directive from ZIMRA is required. The application for the directive must be made by the employer, which includes benefit funds, pension funds, pension preservation funds, provident funds, provident preservation fund, and retirement annuity fund among others. The directive is applied by completing certain forms obtainable from the ZIMRA website. A directive is very important because it gives an opportunity to minimise the tax burden on the part of the employee, especially those who were under the fi nal deduction system (FDS). The employer will therefore be required to deduct the tax as per the ZIMRA directive opposed to determine the tax itself. The fact that pension commutation is payable by pension or retirement annuity fund, whilst termination benefi ts are payable by the employer implies there may be two or more tax directives for one employee. The law has not stated how this should be dealt with but there is need for synchronising these tax directives. In conclusion employers should ensure they correctly exempt the severance pay and pension commutation in order to cushion their employees from the heavy tax burden that may arise on lump sum payment payable upon retrenchment. In every case it will be important to consider the mixture of the severance pay in order to maximise the after tax benefi t to the employee. This implies that employers should identify the packages that are appropriate in line with the circumstances of the affected workers. Meanwhile Matrix Tax School will be hosting the Tax and Business Interface 2019 from October 9 to 12 at Troutbeck Inn, Inyanga.  Tapera is the founder of Tax Matrix (Pvt) Ltd and CEO of Matrix Tax School (Pvt) Ltd. He writes in his personal capacity. The Financial Gazette September 5-11 2019 | Page 19 Column Role of due diligence in selecting Directors

T IS common cause that the position of Director of an in risk to the organisation? - Is there a range of skills aligned with the organisation is at the top of the hierarchy and must be - Are the qualifications and experience business strategic objectives? Itaken seriously because the incumbent makes critical authentic? - Were there board resignations in the past five decisions to determine the direction of the organisation. The potential Director can consider to ask the years and why? The key goal in selecting directors is to build a mix of following questions: - What is the Board – CEO relationship like? skills and experience that achieves a well-rounded team in Critical risk matters - Are non-executive Directors kept informed fulfilling the board’s duties and responsibilities. - What are the main risks the company faces of important issues? King III code of good governance stipulates the ground and how are they being managed? - What is the conduct of board meetings and principle that “Directors should be individuals of integrity - Does the company have effective internal chairman’s leadership? and courage, have the relevant knowledge, skills and control systems? - Which board committees exist and which experience to bring judgment to bear on the business of the Executives Only Corner - Is there any material litigation currently would I be assigned to serve on? Company. Every board should consider whether its size, with underway or threated by or against the company? The potential Director should also ask incisive diversity and demographics make it effective. Diversity Shepherd Shonhiwa - What are the key issues facing the board? questions about the organisation’s legality as applies to academic qualifications, technical expertise, - Is there D & O insurance to cover Directors’ an entity, history, nature of business activities, relevant industry knowledge, experience, nationality, age, business, governance and strategy? legal liabilities? strategy, vision, mission and core values. race and gender”. Therefore, it is only fitting that exhaustive - Does the candidate portray integrity, honesty, - What is the company’s current financial This two-way due diligence is to ensure that due diligence is done to enable the organisation to bring courage, teamwork and good instinct? position and past three-year record? there is long term compatibility between the on board the most appropriate individual. Conversely, the - Do they show genuine interest in the - Is the company a going concern or is there two parties before consummating a contractual potential Director must also conduct due diligence on the organisation and its business? any possibility of insolvency? relationship. organisation before accepting the invitation to the board. - Do they have the time to commit to our Board related matters l Shonhiwa is a chartered director (SA) By making the right inquiries, asking the right questions organisation’s board work? - What is the current board composition and and has authored books on leadership. He and taking care to understand the replies, the risk of - Could associating with the candidate result its track record? writes in his personal capacity. unpleasant surprises can be reduced and the likelihood of success dramatically increased. The due diligence allows the prospective director to assess the risks posed through involvement with the company, its governance procedures, financial management and strategic aims and objectives. The exercise may reveal the main areas for input requiring the non-executive director’s attention. Alternatively, it may provide some idea of just how much work will be involved. The Corporate governance network of the Institute of Directors South Africa initiated helpful guidelines on conducting the reciprocal due diligence. However, the organisation should be mindful of the fact that it is unlikely for a single individual to fit all the requirements perfectly. If they have most of the skills and attributes required and they are not legally ineligible, most other gaps in expectations should be manageable with collective remedial effort. The following are the due diligence questions for the organisation to consider or ask: Legal and governance • Is the person legally eligible to serve as a Director under applicable laws? • Does the candidate understand their role as a non- executive Director? • Are there any actual or potential conflicts of interest with the organisation? • Has the candidate consented to become a Director of the organisation? Knowledge, experience and personal attributes - Will the candidate fit within the board culture and dynamics? - Does the candidate satisfy any transformation or diversity considerations of the board? - Does the individual fill the right knowledge and skills gap? - Do they demonstrate the necessary knowledge for Mr Price’s new CEO earns R7m for 3 months’ work MR PRICE Group’s remuneration policy faced stiff opposition from shareholders, with many voting against it at last week’s Annual General Meeting. Results of the meeting show that investors representing more than a third of the shareholding in the company voted against the remuneration policy. “Mr Price Group is disappointed at the overall result of the voting on these resolutions, particularly given the positive results of the remuneration resolutions at the 2018 AGM and the policy and implementation adjustments that have been made over the course of the 2019 financial year," the company said in a statement. The Durban-based company said it would engage dissatisfied shareholders to hear “their reasons for their dissenting votes” on the matter. Its annual report shows that former chief executive Stuart Bird, who retired at the end of last year, received total remuneration of around R23 million for the year, which was R6 million lower than the previous year. His performance bonus, which was linked to profit and strategic targets, fell from R11 million to less than R4 million. In the year to end-March, Mr Price’s revenue grew by 5,8 percent to R22,6 billion, with headline earnings up 6,2 percent. The new incoming chief executive (and former chief financial officer), Mark Blair, earned more than R7 million in his first three months on the job (January to end-March) — including a performance bonus of almost R2 million. In total he received R20,3 million for the past year (which included nine months as chief financial officer). The share price of Mr Price Group, which includes stores such as MRP Home, MRP Sport, Sheet Street and Miladys, has fallen by a third over the past year. Last week, the company warned that sales at its core Mr Price clothing stores fell by more than 5percent over the past four months. Group sales were 2,5 percent lower. — Fin24 Page 20 | September 5-11 2019 The Financial Gazette Column Quasi-judicial tribunals fraught with pitfalls

IME and again, organisations find punishment handed down law. Thus, any court action at through fair and equitable procedures, including the themselves having to institute to perceived transgressors. any level in a democratic and fact that any hearing must be justifiable and based on Tproceedings against errant individuals The bottom line, as can be civilised society like ours must an objective evaluation of facts. There are two main to enforce discipline, safeguard integrity, noticed, is that quasi-judicial conform with the fundamental principles of natural justice, which are the audi alterum and to promote order and accountability. The tribunals although being principles of the rules of natural partem principle and the nemo judex in sua causa rule. nature of the proceedings, the procedures delegated courts of justice, justice. According to the former, a party involved in a matter adopted and other ancillary issues vary with for the stated reasons, end I shall therefore, discuss must be given a proper opportunity to present his the peculiarities of each organisation. up inflicting intolerable generally about the intensifying or her case before a decision is arrived at. The latter Clubs and societies are usually guided by injustices on individuals and indispensable subject of rule dictates that those mandated with administrative constitutions, companies by codes of conduct arraigned before them. rules of natural justice, and decision making should be impartial and must not be and statutory bodies by regulations emanating There is always an ever how they should guide those motivated by hostility or any other ulterior motives from parliament. The common difficulty present need to ensure that tasked with the unenviable in their deliberations. The audi alterum partem rule, experienced by these informal courts or quasi- members who preside over burden of enforcing justice when read together with the constitution, advances judicial tribunals is that they are presided over these informal courts get Legal Matters mainly in the various tribunals. the elementary notion of fairness and justice ― that by individuals not trained in law, and invariably regular training on matters with It goes without saying that these any person arraigned for a hearing must be allowed to misunderstandings occasioned by ignorance of of disciplinary procedures. VOTE MUZA rules equally apply in the non- adequately present his case before a decision concerning the law and procedures are common. Blunders While procedures adopted disciplinary hearings similar to the case is arrived at. inherent in these hearings are associated with vary from organisation to organisation, there tender boards. In furtherance of this principle, a party to a hearing bias, caprice, malice, improperly constituted are certain minimum procedural standards and Principles of natural justice are concerned must be given reasonable notice to enable him to prepare hearings, insufficient notice of hearing, rules of substantive fairness that are provided with ideals of procedural fairness and justice. his defence. In addition, during the hearing, an accused improper investigations and excessive for by constitution, as well as the common They seek to facilitate the dispensing of justice or any other party for that matter must be afforded an opportunity to explain his case “The common difficulty to controvert experienced by these informal incriminating courts or quasi-judicial evidence tribunals is that they are through cross- presided over by individuals examination and not trained in law, and to call witnesses invariably misunderstandings and other occasioned by ignorance of corroborative the law and procedures are information. common. Blunders inherent in It is a gross these hearings are associated disregard of not with bias, caprice, malice, only principles improperly constituted of natural justice, hearings, insufficient notice but the supreme law of the land of hearing, improper to hand down investigations and excessive a decision after punishment handed down only hearing to perceived transgressors. one side or as an The bottom line is that quasi- illustration, just judicial tribunals, although the accuser. In being delegated courts of terms of the nemo justice, for the stated reasons, judex in sua end up inflicting intolerable causa principle, injustices on individuals decision makers arraigned before them. ” must disabuse themselves of abuse, animosity or favouritism. If it can be shown that there was bias on the part of one or more of the members of the tribunal, then such proceedings can be reviewable with the possibility of being declared null and void for not being in accordance with real and substantial justice. In the letter and spirit of promoting and sustaining justice, no party must preside over a case in which he has an interest. One who challenges the decision of the tribunal on the basis of bias must be able to demonstrate that bias was displayed or that there was reasonable suspicion that there was a real likelihood of bias having being present. A study of judicial precedents will confirm that bias may be found where one has a financial interest in the matter, and even a slight one. The same goes where one of the adjudicators was related to or friendly with one of the parties or was hostile to one of the parties as a result of events before or during the hearing. It was also held that where there were advance indications of support, or giving undertakings in advance of the hearing to support one side, then that too can be bias. Other illustrations of bias are when a member of a tribunal makes a statement showing that he is prejudiced against a party, or where the body deciding a dispute aligns itself with one of the parties to a dispute. Lastly, it is impermissible for a member of a tribunal to be judge, prosecutor and witness in the same case. Where one anticipates that he may be biased, the honourable thing to do is to recuse oneself in order to ensure that the proceedings are judiciously held. It must be observed that factors falling under the two rules of natural justice are limitless, to the extent that any factor perceived to be inconsistent with the basic expectations of a civilised society can qualify as violation. The overall standard used to measure whether there has been a violation or not is if the behaviour of the tribunal is so irrational or so intransigent such that it becomes morally repugnant to an average, irrational adult human being. Conduct or a decision by a tribunal that is easily frowned upon by any reasonable human being may upon review to the High Court, be held to have been a violation of natural justice thus rendering the whole or part of the proceedings unfair. Quasi-judicial hearings must not only strictly follow laid down procedures, but when weighing, evidence led. In legal terms this is called substantive fairness as opposed to procedural fairness. l Muza is a Harare-based legal practitioner, he writes in his personal capacity. [email protected] The Financial Gazette September 5-11 2019 | Page 21 Column Ethics: Moral compass for HR practitioners

THICS are indeed not a new phenomenon. What is Can HR practitioners become ethical? - The Butterfly Test new however, is the emphasis that ethics have been How to find the moral high ground If you get butterflies in your stomach, it is a Egetting from businesses, governments, theorists The answer to this question is yes we can. sign for you to reflect on what you are about to and the public in general worldwide. As HR practitioners we definitely can work do. It is a gut feeling or intuition and must not Here in Zimbabwe, we read in the media almost every towards it because there is always room for be ignored. day, about fraud, misappropriation of funds, theft and improvement in all areas of our lives. Here The Authority Test corruption that is happening across nearly all sectors. are some guidelines on how we can conduct Think of someone whose opinion you value What role then, are we playing in our organisations as Shingi Gundu ourselves professionally and ethically: highly and say if they knew that I did this, how Human Resources professionals to assist the organisation • Adhere to the highest standards of ethical would they react or how would they handle deal with unethical practices? They then exchange these for placement for a and professional behavior. such a situation. The HR professional needs to integrate ethics into fee. • Work consistently with the values of the The Public Scrutiny Test the strategic management plan of the organisation. It has 2. An HR manager who collects money from profession (know them and work with them). Before making a decision or engaging in invariably been proved that this is not only the right thing casual workers each week in order for them to • Set the standard and be an example for a questionable behavior, ask “What impact to do but also the profitable thing to do. Let’s think about keep their contracts others. would this have if it were to be publicized in it. 3. An HR officer who collects long service • Earn individual respect and increase your the Social Media. Would I be able to publicly As HR professionals, we are responsible for adding award monies from the organisation for credibility with those you serve. defend my actions? value to the organisations we serve and to contributing to ghost employees (the deceased, retired and • Be ethical and act ethically in every Therefore, HR professionals can be drivers the success of those organisations. nonexistent). professional interaction. for building a strong ethical foundation and can It is imperative that we accept personal responsibility The list is endless. • Seek expert guidance when in doubt about greatly influence the organization’s culture and for our individual decisions and actions. We are also I am sure some of these practices are the ethical propriety of a situation. ultimately its longevity and profitability. advocates for the profession by engaging in activities that familiar. Where is our character if we engage in • Refrain from using your position for n Shingi is the Managing Director of enhance its credibility and value. such malpractices? personal material or financial gain. Flair HR Consultancy. She writes in her You might be wondering, what Shingi is talking Three ethics tests for the individual personal capacity. about? How can we be ethical in a country with shortages of currency, jobs, food and basically almost all essential commodities? I believe that with such challenges, the temptation to be unethical is great but, it must however, be resisted. Ethics are an issue for the human resources practitioner and should be taken seriously because the ethical or unethical conduct of employees has a direct bearing on the overall performance and image of the organisation. It has been invariably confirmed that ethical conduct has a correlation with the longevity and profitability of an organisation. Corporate governance and HR The problem is that HR is not involved in Corporate Governance issues as it should be. John Drummond, a CEO with Integrity Works was once said, “Corporate Governance is about how people behave. It is also about running the organisation with As HR professionals, integrity, ethically we are responsible and professionally. for adding value to These are people the organisations we issues and thus it is serve and to contrib- of essence that HR is uting to the success of involved. those organisations. We have always It is imperative that thought that this was we accept personal something HR would responsibility for our want to be involved in but, invariably we individual decisions find that is not the and actions. We are case. HR is brought also advocates for the in at a later stage. profession by engag- There doesn’t ing in activities that seem to be much enhance its credibility appetite from HR and value. either.” How very true this statement is. Why then are most HR professionals not willing to get involved in Corporate Governance and Ethics issues? Is it because we do not know what our role is or is it because we ourselves lack professionalism and integrity? Do we fear that spearheading ethical practices and ethical conduct would actually expose our unethical behaviors? Do not get me wrong here please. I am not saying all of us HR practitioners are corrupt, but there are some of us who are very corrupt. Efforts made by IPMZ to deal with unethical conduct When the Institute of Personnel Management of Zimbabwe (IPMZ) realised the seriousness of unethical and corrupt behaviour in the HR profession, they decided in 1996, to work together with the then Association of Personnel Consultants to identify corrupt and unethical human resource practices in all sectors of industry. Any incidents of unethical conduct were to be published in the human resources journal in a column that was entitled the “crooks corner”. The aim of the crooks corner column was to conscientise enterprises of such conduct with a view to dealing with culprits. It also aimed to report cases of corrupt behavior and to encourage personnel to report on such cases to either the IPMZ or to the APC (Association Of Personnel Consultants). Such cases were to be described in general terms without information about companies and individuals. This would be done to draw the attention of IPMZ to unethical practices and to educate the members about correct ethical practices. Here are some examples of corrupt practices by HR practitioners that were unearthed then and some of which were flighted in the HR journal. 1. Two HR managers who both own briefcase employment agencies and both fire their accountants. Page 22 | September 5-11 2019 The Financial Gazette Column Cryptocurrencies here to stay despite bitcoin crash

David Ho significant steps toward regulatory clarity,” says Morgan Stanley are entering this space,” says of key digital assets, a shift in focus to stablecoins and an Dave Chapman, CEO of digital trading platform Chapman. expected up-swell in security token offerings,” says Chapman. ESPITE 2018’s “crypto crash”, ANXONE. “Crypto has many use cases, but in order to “Resurgent sentiment has also been supported by the cryptocurrencies appear here to stay, but Towards the end of April, bitcoin’s prices succeed, institutionalisation is a necessary next step increasing number of jurisdictions taking steps to regulate Dwhen can we expect to see them traded entered a “golden crossover”, when the 50-day to help drive growth for the tokenised economy,” the sector, which we consider a pre-condition for the full on institutional, regulated exchanges on trusted moving average price of an asset rises above its said Kiran Nagaraj, managing director of KPMG’s professionalisation of the asset class.” platforms? crypto asset services. Currencies or assets? Rising prices and a higher degree of regulatory The volatility of cryptocurrencies has both The market itself remains uncertain as to whether to clarity are signalling wider acceptance of attracted and scared investors and regulators, even consider cryptocurrencies as currencies or assets. What is cryptocurrencies a little more than a year after as market actors take steps to reassure investors and happening with cryptocurrencies is ‘exciting yet tumultuous’, prices crashed. to develop more stable products. says David Broadstock, an assistant professor of economics at At the end of 2017, a single bitcoin was trading For instance, payments and cryptocurrency Hong Kong Polytechnic University. He believes that a clearer at highs of almost US$20 000 and seemed destined platform Crypto.com added Paxos Standard’s regulatory definition may allow investors to allocate flows to go higher. A year later, a bitcoin was going for long-term moving average. Prices hit $5 500 for PAX token to its wallet and card app. PAX is a with more confidence. a little more than US$3 100. And with regulators the first time in over five months in April, but stablecoin, a digital token pegged to a specific What is certain is that cryptocurrencies cannot be now working on defining what cryptocurrencies memories of the “crypto winter” of 2018 are still commodity or currency to make it more stable. overlooked, says Broadstock. There is growth in corporate are and where they fit in the finance universe, fresh. “Stablecoins play a critical role in the adoption of initial coin offerings globally and even a physical market digital assets could find themselves on more solid Chapman thinks there is stronger-than-ever cryptocurrencies,” says Crypto.com co-founder presence. According to Coin ATM Radar, there are now 39 footing for another bout of growth. recognition of cryptocurrency as a unique asset and CEO Kris Marszalek. such machines in Hong Kong alone. “We expect the industry will become more class as opposed to a commodity and sees the PAX may be used to pay for items or traded Fluctuating values regulated globally in the next 48 months. Up industry heading towards institutional, regulated instantly for US dollars. And because it is regulated Yet, the progress of cryptocurrency continues to be until now, we have seen the most regulatory exchanges on trusted platforms. by the New York Department of Financial Services, hindered by a reputation of volatility. “There is concern that, clarity coming from Japan, with Indonesia, “This is backed by the fact that more traditional it may give businesses confidence. even through e-payment platforms, the value of a bitcoin at the Thailand, Singapore and Hong Kong also taking players such as Goldman Sachs, Fidelity and “So far in 2019, we have seen the consolidation start of a transaction may differ considerably to its value at the end of the transaction,” observes Broadstock. The initial coin offering (ICO) craze of 2017, not unlike the dotcom bubble, “left a stale taste in the mouth of some”, says Fran Strajnar, CEO and co-founder of blockchain and cryptocurrency research firm Brave New Coin. “Half of them felt left out of a lucrative game, the other half confused it with scams.” The market may have largely corrected itself but adequate security is paramount, particularly in the light of the bankruptcy of Japanese bitcoin exchange Mt. Gox. Launched in 2010, it was the largest crypto exchange in the world. Then hackers started siphoning off as many as 850,000 bitcoins. Mt. Gox filed for bankruptcy in 2014 and the aftermath of the bankruptcy is still being litigated in Tokyo. How to determine what bitcoins are, how to track them and tax them, and how to protect investors from price volatility are all considerations for creating a robust regulatory framework. Strajnar observes that regulations on security guidelines and tax compliance have picked up worldwide and he expects most jurisdictions to have some kind of framework in place by the middle of next year. But there are also post-transaction considerations. “When most people think of markets and the trading of an asset, usually they are focused on what happens before or to the point of execution of a trade. But what occurs after a trade is executed is critically important and this issue has not been broadly discussed within the context of tokenised securities or crypto assets more generally,’” says Mark Wetjen, managing director at Depository Trust & Clearing Corporation. “The entire world wants the regulation around this asset class to be finalised so they can get on with business,” adds Strajnar. Regulation could also help further institutionalise cryptocurrencies. “While bitcoin is still dwarfed by traditional asset markets, crypto is now much broader than just bitcoin, and the debate on the case for crypto is far from settled,” says Nagaraj. Growing value The market capitalisation of the cryptocurrency market was US$175bn as of 1 May 2019. The market capitalisation of the New York Stock Exchange, the largest stock exchange in the market, is upwards of US$20 trillion. Strajnar says that as more and more larger companies get involved in the cryptocurrency space, then more people are likely to jump onboard. For instance, Japanese e-commerce giant Rakuten is now preparing to launch a cryptocurrency exchange and a wallet. “Companies like Rakuten already have millions of members registered. That means they can immediately get them onboard without much work, as the know-your-customer process is already completed,” says Strajnar. There are practical reasons driving the adoption of cryptocurrencies, according to Broadstock. “First there is the need for a unit of currency and, second, there is the increased use of technology in the bartering and transaction process,’ he says. ‘The move away from paper-based money is to be expected in the long run, and virtual currencies are the most natural next evolution.” But Broadstock admits the transition will take some time. Here for good But the consensus is that cryptocurrencies are here to stay. “Though we are still probably at the stage of crypto 1.0, the concept of a virtual currency is appropriate for our times given its prevalence and social acceptability,” says Broadstock. Strajnar agrees. “There have been too many billions of dollars spent on it for cryptocurrencies to be more than a passing fad,” he says. Chapman makes the point that transaction volumes have not slowed down. “And the pie is no longer concentrated on a couple of digital assets. There are now about 3,000 coins, all in private markets,” he says. CoinMarketCap, which tracks alternative coins on the market, puts the number of cryptocurrencies in circulation at 2,141. As for KPMG’s Nagaraj, he believes the staying power of cryptocurrencies will be defined by their ability to reduce friction and inefficiencies that currently exist within the global economy. And Strajnar believes major cryptocurrencies like bitcoin will continue to experience cyclical performance even as they continue to rise. “A rising tide lifts all boats. We are just on the cusp of a multi-decade wave of digitising value,” he says. l Ho is a journalist Reproduced with permission from ACCA’s Accounting and Business magazine accaglobal.com/ab. The Financial Gazette September 5-11 2019 | Page 23 Page 24 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | Page 25 Page 26 | September 5 - 11 2019 The Financial Gazette The Financial Gazette September 5-11 2019 | Page 27 ICAZ Round Up ZESA needs cleansing: Chasi NERGY minister Fortune ment it is very difficult to get a suit- Chasi says Zesa Holdings able tariff because of these inefficien- ‘Zim up to date with loans repayments’ E(Zesa) needs to be purged of cies,” he said. inefficiencies and corruption, before The minister, however, conced- IMBABWE is up-to-date with re- ference in South Africa that the regional government can approve another tar- ed that the tariff will need to be re- payment of loans of about $8 bil- lender was pleased with the country’s iff hike. viewed upwards eventually. lion extended to it by the African performance. In August, government increased “We all must have a chorus to Z Export-Import Bank (Afreximbank) in “Afreximbank has stood with Zim- the power tariff from 9,86 cents per say let us move the tariff up. As it is the past 22 years, The Financial Gazette babwe from the first signs of economic kWh (about one US$0,01) to 27 cents we are digging Zesa into a hole and has learnt. difficulties that the country was facing (US$0,03) but still, ZESA insists that it will only haunt us in the future,” Zimbabwe’s debt to Afreximbank and since1997, the bank has disbursed the tariff remains uneconomical. Chasi said. surged by 66 percent to US$1,25 bil- a cumulative $8 billion to Zimbabwe,” Chasi, however, says inefficien- The national power utility has lion in May this year after government he said. cies at the utility should be eliminat- been implementing rolling blackouts incurred a US$500 million loan facility “We continue to support the country ed first to avoid passing the costs to power cuts after losing generation ca- from the bank to supply the interbank primarily because we see immense hope “innocent” consumers. pacity at its Kariba Power Station due foreign currency market. The invest- that the country presents. Additionally, “We cannot just say we want a to low water levels. ment-starved southern African coun- we also build structures that are in line cost-reflective tariff when there are “As it stands, it should also be try has over the past few years used its with our structure trade finance approach Fortune Chasi lots of inefficiencies. We need to san- considered that any tariff revision natural resources ― including gold and as an institution. This has helped signifi- itise the utility,” Chasi told delegates would cause suffering because in- tobacco ― to secure capital from Afrex- cantly to make sure that have a line of at the Institute of Chartered Accoun- also, for example theft of power from comes have been wiped away by in- imbank. sight on the cash flows in each and every tants of Zimbabwe’s Winter School the grid, to which the utility has lost flation,” Chasi added. Andrew Masuwa, Afreximbank’s sector that we support and to this point, and Investor Attraction Conference. about $40 million. In addition, al- The minister noted that the director of business development, told we have zero non-performing loans “ZESA is a dark horse and there most two thousand transformers have state utility had proposed a tariff of delegates attending the Institute of Char- from the country, we have recovered ev- have been all sorts of issues with the been vandalised. US$0,13 per kWh but government tered Accountants of Zimbabwe’s Win- ery penny that has been disbursed,” he utility such as tendering and so on “There are many things that need restricted it to US$0,03 per kWh. ter School and Investor Attraction Con- said. [email protected] and people made millions. There is attention at the utility and at the mo- [email protected] CAs relevance under scrutiny

HE Institute of Chartered Accoun- tants of Zimbabwe’s (ICAZ) new- Tly-elected president Fungai Kuipa, has challenged the profession to reclaim its relevance in the country. According to a research done by for- mer ICAZ president Martin Makaya in 2008, in a sample of 53 Zimbabwe Stock Exchange-listed entities, 67 out of 91 board members were ICAZ members. Kuipa said this shows that chartered accountants (CAs) are well-positioned to provide invaluable input and guidance for the betterment of the economy. “But sadly, we have not,” he said in his inaugural speech at ICAZ’s Winter School and Investor Attraction Confer- ence in South Africa over the weekend. Fungai Kuipa “You see my fellow colleagues, what good does it do us to claim to be the resort for the prestigious calendar event. pre-eminent profession body, but fail to This year’s edition of the winter deliver. What good does it do us if we are school, which ran from August 29 to the labelled as cowards in some circles and 1st of September, was held under the fail to rise to the occasion when required. theme “Disruptive Innovation — Invest- “If there is one thing we understand ing for Growth”. in this profession, it is deliverables,” he “The Institute of Chartered Accoun- said. tants of Zimbabwe has consistently con- The new president noted that CAs tributed to both the accounting profes- had been criticised for sion and the society around turning a blind eye to it and the theme of this corruption. Stories by year’s Winter School and “This has undoubt- Investment Attraction Con- edly dampened our Omega ference augments the insti- standing in terms of the tute’s vision,” ICAZ said in value that we provide Ukama a statement. both within and outside Running parallel to the our institute. conference were Investor “I challenge members here present Round-tables, where senior government and those tuned in via live streaming that officials, financiers and promoters delib- there is no such time as this to regain erated on consultative candid conversa- footing, and participate at various levels tions around the investment landscape in of both the private and public sectors Zimbabwe. while speaking to our core values: Re- Topics on discussion at the conference sponsibility, Honesty and Integrity. this year included the state of the energy “Let us reclaim our relevance fellow industry, corruption, licensing processes members,” Kuipa said. and the regulatory environment in the Kuipa, who was previously senior country, as well as the national project vice president, replaced Deloitte partner pipeline and funding gaps. Tapiwa Chizana who stepped down after ICAZ is the longest established and the expiry of his term. the largest Zimbabwean professional ac- Duduzile Shinya, who is the chief fi- countancy organisation. It was set up on nancial officer at Amalgamated Brands, January 11, 1918 and is a statutory body was elected the senior vice president, incorporated in terms of the Chartered while Deloitte’s assurance director Tumai Accountants Act. Malinga, is now junior vice president. The institute is a member body of the Meanwhile, the winter school was a International Federation of Accountants, resounding success after more than 300 Pan African Federation of Accountants delegates, including Energy minister For- and the Public Accountants and Auditors tune Chasi, converged at the Sun City Board. [email protected] Page 28 | September 5-11 2019 The Financial Gazette National News

Timo Olkkonen Zimbabwe misses EU economic opportunities

Tabitha Mutenga Markets Editor

IMBABWE is missing out on various economic opportunities within the European Union (EU) as Zthe country’s politics continue to negatively im- pact on its economic reform agenda, a top envoy has said. This comes after the international community has jointly condemned the country’s recent crackdown on civilians during peaceful demonstrations against wors- ening economic challenges, as well as the recent human rights violations and abductions. Timo Olkkonen, EU ambassador to Zimbabwe, said the trading block was deeply concerned with the eco- nomic and political crises, which continue to unfold in the country. “We have supported the government’s reform agen- da, although we would have loved it to move faster,” he said at the SAPES Trust Dialogue Forum last week. “However, with constant reports about human rights violations, it cannot be business as usual from an EU perspective,” he said, adding that Zimbabwe’s eco- nomic recovery was premised on the country’s political agenda. “All these are interlinked when we publicly or pri- vately voice our concern, it is in the hope of seeing a positive trajectory in the country. Olkkonen also indicated that Zimbabwe should first clear its debt to the international community for the country to receive fresh capital. “But these questions around arrears clearance are linked to both the economic side of the agenda and the political side of the agenda. All these issues are inter- linked and we from the international community are following closely,” he added. Zimbabwe’s growth prospects are currently hindered by debt vulnerabilities, low foreign reserves, and grow- ing public debts. The total debt stock is estimated at $66,8 billion as at end June 2019. And the external debt is estimated at US$8 billion, of which almost US$5,9 billion is accumulated arrears. “I am still hopeful for a positive trajectory that will open up all kinds of opportunities for Zimbabwe as from an EU perspective ... the whole aspect of finan- cial development moving away from the traditional grant aid towards different kinds of loans and guarantee mechanisms for the private sector,” Olkkonen said. “Zimbabwe is missing out on this not because of sanctions or restrictive measures but because of the ar- rears issue and the debt issue.” The EU is now planning for the next multi-annual financial framework, which covers the whole of the Union’s finances and Zimbabwe is already missing out from the union’s budgetary plans. The multi-annual financial framework, EU’s long- term budget, which sets the limits for the trading bloc’s annual expenditure as a whole and in different areas of EU spending covers a period of at least five years. [email protected] The Financial Gazette September 5-11 2019 | Page 29 National News RBZ chokes exporters Zisco deal

Shame Makoshori including the RBZ, had failed to respond to Companies Editor his call. Zimbabwe’s government is fighting a blis- drags on HE Reserve Bank of Zimbabwe (RBZ) tering economic crisis, which has been high- directive forcing firms to stop further lighted by a dire foreign currency crisis. exports once they reach US$400 000 Importation of critical supplies like fuel, Omega Ukama T Senior Staff Writer in unremitted export proceeds has paralysed power, food and drugs has been undermined industries, The Financial Gazette heard yes- by the foreign currency crisis, which has terday. also constrained the import of raw materials NDUSTRY minister Mangaliso Ndlovu says gov- Henry Nemaire, Tanganda Tea (Tangan- and spares. ernment is yet to conclude negotiations with Chinese da)’s finance director, said Zimbabwe’s big- The currency crisis deteriorated this year Iinvestor R and F for the resuscitation of Ziscosteel gest tea leaves producer could lose lucrative when the government ended a decade long (Zisco), two years after the deal was consummated. business from regional companies after it multicurrency system and reintroduced the The deal, which is estimated to be worth over $2 bil- failed to meet contractual obligations. domestic currency for local transactions and lion, follows a series of similar efforts to restart the Red- “For the past two weeks we could not ex- liberalised the exchange market. cliff-based steel maker which ceased operations 11 years port because of the $400 000 cap,” he told The move was meant to stimulate the ago, including a botched deal with Indian giant Essar. delegates attending an exporters conference availability of foreign currency in the official “There is an agreement with R and F, a Chinese com- in Harare yesterday organised by the Confed- market. But subsequent to that, rates on the pany and there are a few housekeeping issues that are eration of Zimbabwe Industries (CZI). black market have spiked and the country being tidied up to that effect. We will be meeting them “Pick n Pay will delist us. These are sanc- has failed to pay for critical power imports. in the next two weeks as there are issues that as govern- tions which we are putting on ourselves. Industrial output is projected to decline this ment we feel need to be agreed to,” Ndlovu told journal- We should understand where government is year, as a result of the foreign currency crisis. ists yesterday. coming from. They are saying exporters are Sekai Kuvarika, the CZI chief executive, “We are hoping that we will finally reach an agree- keeping money outside Zimbabwe but if they said government should develop strategies ment with our potential investor,” he said. attended meetings like this, then they will un- that help businesses flourish. Last year government gazetted the Zisco Debt As- derstand,” he said. “We have received complaints from CZI sumption Bill, effectively taking over the steel giant’s The central bank recently directed export- members that have been affected. It is also debt, clearing the way for the takeover by the Chinese ing firms to halt exports unless they acquit timeous that we are getting this as we go into firm. CD1 forms worth $400 000. Government consultation for the national budget. These According to the bill, Zisco’s debt stood at US$494 defended this position arguing that exporters John Mangudya are some of the issues that we may need to million as at December 2016, with US$211,9 million of were deliberately keeping their export pro- discuss,” she said. that being external loans owed to KFW (Germany), Si- ceeds abroad. ing a backlash from customers who are un- “Most of our growth prospects as a coun- nosure (China) and Sumitumo (Japan) who are owed a However, industry players say there were happy with erratic supplies. try will rely on exports. We continue to lobby total of US$6 million. several factors, including delayed payments Chemplex Corporation said it was one of for an enabling and conducive environment Domestic loans amount to US$56 million while do- of exported consignments, which result in the firms that had been affected by the RBZ for businesses to growth their export capabil- mestic suppliers, utilities and statutory obligations are at firms failing to acquit CD forms within the limit. ities”. US$219 million. stipulated time frames. The fertiliser producer said while Pres- John Mangudya, the central bank gover- Ndlovu said ZimCoke is expected to commence op- Tanganda, which has been exporting avo- ident Emmerson Mnangagwa has talked nor, said he “will be quite happy to remove erations at the defunct Zisco plant in February next year. cados and macadamia nuts to South African about rebuilding the economy through an ex- any obstacle that constraints exporters”. The company has taken over the coke oven battery at retail giant Pick n Pay since last year, is fac- port-led strategy, other government agencies, [email protected] the plant. [email protected]

ForFor the the week week ending 4 13September March 20192019

For the week ending 13 March 2019 Page 30 | September 5-11 2019 The Financial Gazette

National News Emeritus gets credit rating upgrade Nelson Gahadza –A which is the best rating. This means that ture was not giving us the benefit of size that group will move to list on the Botswana Stock Exchange Staff Writer our claims paying ability is enhanced,” he we wanted. We had done that because of through a private placement. said. sanctions which resulted in us having multi- Huvaya said in 2008, the group restructured the balance MERITUS Re International (Emeritus) has received Huvaya added that the latest grading is plicity of brands,” Huvaya said. sheet in order to survive and this has helped in growing the a credit rating upgrade from the Global Credit Rat- confirmation by an independent agent that He added that following the rebranding property portfolio. Eing agency, in a move that reflects the firm’s strong the group has demonstrated capacity to car- of the operations to Emeritus Re, the group “We know that the property values are undervalued, but financial performance and excellent level of risk-adjusted ry huge risk. This was after Emeritus’ claims is moving to raise $30 million from Botswa- given the high inflation, we see the property values are now capitalisation paying ability was downgraded due to sanc- na. coming in handy,” he said. Leo Huvaya, Emeritus’ managing director, told The tions and the precarious foreign currency “The initiative is ongoing and we are al- He noted that the restructuring exercise saw the group Financial Gazette that the rating upgrade is a result of situation in Zimbabwe prior to 2008. most there. We have had a number of inter- disposing off Zimre Centre building, and used the proceeds the group’s restructuring and rebranding exercise, which “We had Baobab Re in Zimbabwe, Zim- ests and right now we are engaged in a due to construct the Sawanga mall in Victoria Falls. strengthened its balance sheet. re Malawi, Zambia and Mozambique and diligence process,” he said. Huvaya said the company has also moved a big way into “Our rating was BBB and from that we have moved to First Re in Botswana, but the group struc- Post the capital raise, Huvaya said the student accommodation. [email protected]

Givemore Chidzidzi Sanganai preps on course Freedom Mashava Staff Writer

HE Zimbabwe Tourism Authority (ZTA) says preparations for this year’s edition of Sanganai/ THlanganani World Tourism Expo have progressed well and organisers expect to host a polished event. Givemore Chidzidzi, ZTA’s acting chief executive, said the first batch of international buyers from major source markets have started arriving in the country for pre-tours ahead of the premier tourism event to be held in Bulawayo next week. “For us Sanganai/Hlanganani has already started with the arrival of the first batch of international buyers in the country. We are looking at 170 hosted buyers who are coming and 25 international media houses. There are 260 exhibitors from 20 countries,” he said. Chidzidzi noted that Botswana was leading the way with 15 exhibitors, who have already confirmed their participation for the event scheduled for September 12 to 14. “As we speak both buyers and sellers will initiate ap- pointments online and they are able to maximise on the platform since there are many buyers and sellers who are coming. So they book for an appointment online and then meet later,” he said. Another highlight at this year’s edition is the famed Speed Networking where buyers and sellers derive max- imum value when interacting face to face under one roof. Chidzidzi said the hosted buyers tours will also pro- vide tourism players with a win-win situation, as service providers would be presented with an opportunity to subsidize products and then get exposure and publicity across the world. “There will be special events such as the Tourism Researchers Educators Association, which has since be- come an annual event. There is also the Culinary Demos, whereby people experience food and culture. The chefs will be showcasing there culinary skills and their inno- vations. “We also going to have Women in Tourism Capacity Building Workshop in line with the UNWTO guidelines. We are happy to say most accommodation facilities in the host city Bulawayo are run by women so we are bringing them together to discuss and share ideas. There is also the Schools’ Quiz on tourism,” he said. [email protected] The Financial Gazette September 5-11 2019 | Page 31 Life & Arts ‘Springbok medallions more than just coins’ HE Cape Mint’s in- of expansion initiatives, (from sentiment and that and we also realised that are not only buying (a spe- tion having been launched put together in conjunc- victus medallions including a multi-million rich history) … and we we had to cater for a whole cialised coin) but an in- to commemorate the tion with the South Afri- Tare “not just a col- proof coin marketing deal want it to carry on from secondary market because vestment. And so from an springboks’ 1995 rugby can Rugby Union and pro- lection of special edition with the South African generation to generation,” that is what democracy is. investment perspective, it world cup (RWC) win and fessional rugby players’ coins, but an investment to Mint Company — a sub- Maunganidze said at the So, we have the base met- is worth every fun of it and the country’s 25-year de- union. increase people’s portfoli- sidiary of the South Afri- recent unveiling of the al, which is also of com- as we know with precious mocracy, the three-year Natanya Van Niekerk, os”, company representa- can Reserve Bank. medallions in South Afri- petitive value because it is metals they increase all deal was hammered as SA a Cape Mint artist, recent- tive Itai Maunganidze has “From a value perspec- ca. a collector’s piece,” he the time, and it is about looks forward to capturing ly said the product was in- said. tive… it encompasses our “…the medallion is said. looking at long-term in- its third world cup win — spired by a number of so- This comes as the com- time, culture, democracy made up of a precious “We have the silver vestments..,” Maunganid- after the 1995, and 2007 cio-economic milestones pany’s parent African Me- and history. And when you metal, which is linked to medallions, which are ze, an AMG executive, victories. in SA and there was “no dallion Group (AMG) has look at it… that sort of an international trading as- linked to the international said In the meantime, the better way of celebrating launched quite a number value actually comes set based to diamonds… silver price and, so, you With the rare collec- invictus arrangement was those issues and moments than rare coins”. “There was probably nothing more inspiring in SA than the 1995 World Cup and now that we have our first black captain of the springboks (and l be- lieve) its huge,” she said, adding the process of mak- ing the invictus medal- lions was also quite inten- sive as it involved designing, engraving play- ers’ portraits, size-sculpt- ing and magnituding. “For us, the symbolism of rugby within the coun- try (and beyond) is much more than sport, but team spirit and that is what we need to do (in building our continent, and econo- mies,” Van Niekerk said. With the invictus me- dallion already on sale through licensed retailers and directly, the Cape Mint became part of Frank Buyanga’s AMG after the latter’s acquisition of the Pagliari Group mid last year. The development also comes as the gold trading entity has spread its tenta- cles to at least four region- al countries, including Le- sotho, Mauritius, Namibia and Zambia — which was to be achieved through or- ganic growth, and strate- gic acquisitions. “Our aim is to bring (value and) real wealth to our investors and that R100 million takeover was just the beginning of our consolidation, and leap,” Buyanga said then. “We also remain hum- bled and motivated to en- sure that AMG significant- ly contributes to the continent’s numismatic industry, and create val- ue... by championing local beneficiation, employment creation and international exposure,” he said. The SAMC and Pagliari deals also comes as the South African-based firm has set its sights on partnering African sover- eign wealth funds (SWF), starting with Zimbabwe, at the back of its R6 billion gold reserves acquired from Rand Refinery. With the Pagliari deal having been completed in May 2018, the 61-year old jewellery maker’s Cape subsidiary was part of the iconic gold processor. And the Atlantic seaboard mint also has major contracts with companies such as global cigarette giant BAT, Germany automaker Volkswagen, the South African Police Services and others . — Staff Writer [email protected] RED Bull’s Max Verstappen will start Sunday’s Italian Grand Prix from the back of the grid as a result of a penalty for excessive engine usage. The Dutchman will run Honda’s latest ‘Spec News Worth Knowing Four’ engine at Monza, which will take him over the permitted number of engine components for Sport a season. Page 32 September 5-11 2019 SPORT SHORTS Zimbabwean to captain Hamilton Masakadza retires ZIMBABWE captain Ham- ilton Masakadza has an- nounced his decision to retire from international cricket af- Australia rugby team ter the upcoming T20I tri-se- ries in Bangladesh. “After a great deal of Paul Nyakazeya consideration, I have decided to announce my retirement Group Digital Editor from all formats of international cricket at the end of the upcoming triangular series in Bangladesh,” Masakad- IMBABWE’S senior rugby team might za said at a press conference at Harare Sports Club on have failed to qualify for this year’s Rug- Tuesday. Zby World Cup to be staged in Japan this “It has been an enormous privilege to have played for month, but the tournament will not be without and captained my country, and this is one of the hardest ‘local’ flair. decisions I’ve had to make.” By default, many Zimbabweans will have a Masakadza, 36, had been Zimbabwe’s captain across soft spot for Australia and South Africa because formats since taking over from Graeme Cremer in the of the presence of David Pocock and Tendai fallout of Zimbabwe’s failed World Cup qualifying cam- Mtawarira at the forth coming World Cup. paign last year — his second stint in charge, having also The Zimbabwean born players have been lead the country in 2016. making international headlines lately. The ICC’s suspension of Zimbabwe in July meant Had Zimbabwe qualified it was going to be that his future as well as that of other cricketers in the the country’s first appearance at the global tour- country became much more uncertain, and Masakadza nament since the 1991 tournament held in En- said that without the lure of a potential place at the T20 gland where they lost all three group matches to World Cup next year to look forward to, he felt the time Scotland, Ireland and Japan. was right to end his international career. — Staff Writer Sadly it did not happen. One win, one draw and three defeats is hardly the return Zimbabwe expected after Peter de Villiers’ high profile ap- pointment and the coming on-board of sever- Micheal Owen vs Alan Shearer al sponsors to bankroll the team’s World Cup qualification campaign. MICHAEL Owen’s new book has ignited a row on so- De Villiers has since been relieved of his du- cial media between the former England striker and New- ties and has returned to South Africa. castle United legend Alan Shearer. Under De Villiers, Zimbabwe lost to Na- One of the more cutting lines in the book includes mibia, Tunisia and Kenya, while drawing with Owen’s claim that his transfer from Real Madrid to the Morocco before defeating Uganda. Magpies in 2005 was a “downward step” and the one The Sables’ first season under De Villiers move he “really regrets”. can best be described as topsy-turvy as the for- The pair exchanged barbed tweets as the story broke mer Springboks coach began his tenure with on Tuesday — but what is the background of their feud? high hopes, before facing the grim prospect of In Reboot — My Life, My Time, which is being se- relegation from the top tier Africa Gold Cup. rialised in the Daily Mirror, Owen also goes into detail The David Pocock story about his relationship with Newcastle’s fans during an For many Zimbabweans, Pocock is just an- injury-hit spell with the club, which ended with him other ‘son of the soil’ who is now playing for joining Manchester United after the Magpies’ relegation Australian professional rugby union football to the Championship in 2009. team, the Brumbies. “I should have followed my gut instincts, I didn’t But for the sports’ followers, the Gweru want to go there — my heart was set on a return to Liv- born star is one of the game’s finest open-side erpool,” said Owen — who had left Anfield for Real in flankers, a vocal and inspirational player whose 2004 — of his move to St James’ Park. silence can be too loud for his team mates or The 39-year-old former England captain also claimed opponents. Newcastle were “only a big club in the sense that it has a Pocock has been a standout player for the lot of fans and a big stadium”. — bbc.com Brumbies and key member of the Australian national team – the Wallabies. He is one player whose form, Australia is Roger Federer out of US Open banking on to progress beyond the quarter finals in the upcoming rugby world cup tournament. FIVE-time champion Rog- It is no wonder his injury was extensively er Federer is out of the US covered by the international media in the past Champion Wallabies flanker David Pocock will captain Australia in his first Test of the year on Open after Bulgaria’s Grigor five months. Saturday. — Getty Images Dimitrov won a late-night The Australian media bemoaned the injury thriller to finally beat the of a player who they are expecting to be part of Hooper, who does not feature in a match-day ticket sales to the Wallabies’ final World Cup Swiss great. the Wallabies team at the global showcase. squad that is a blend of veterans and relative warm-up. Federer, 38, had won all Yesterday Australia’s coach Micheal Chei- newcomers including front row forward Jordan The fixtures seven of their previous meet- ka named Pocock as the Wallabies’ captain for Uelese and fullback Tom Banks. The 2019 Rugby World Cup gets underway ings but unseeded Dimitrov fought back to win 3-6 6-4 their warm up game against Samoa on Satur- It will be the last home game for a trio of in September as Japan hosts the global gather- 3-6 6-4 6-2. day, 16 days before the World Cup officially Wallabies stars: Will Genia, Sekope Kepu and ing for the first time. The action gets underway Federer, who needed treatment for a back injury in begins. Tatafu Polota-Nau, who on Wednesday an- on September 20 as Japan raise the curtain on the latter stages, said: “I felt it the whole time, but I was The talismanic 31-year-old will be putting nounced he would retire after the World Cup. the tournament against World Cup debutants able to play.” on a gold jersey for the first time in almost a It is likely to be Pocock’s last game on home Russia, with the final taking place six weeks lat- Dimitrov, 28, faces Russian fifth seed Daniil Medve- year, after a series of calf, neck and concussion soil and his first Test appearance since last No- er on Saturday November 2 to crown the 2019 dev in the last four. problems. Pocock will don the Number seven vember, not to mention a rare appearance in his world champions. “Clearly in the end he was not at his best. I used every jersey at the new Parramatta stadium natural position of open-side breakaway. Three-time world champions New Zealand opportunity I had,” said the Bulgarian. His playing time has been severely limited The peerless back-rower has battled a long- will defend their crown against 19 other nations World number 78 Dimitrov's shock win ensured there in the 2018-2019 season, but Australia is anx- term calf injury, first picked up in a Wallabies who have already qualified for the World Cup. will be at least one first-time Grand Slam finalist on Sun- ious to see his return after a horror run. fitness camp in January, which forced him to Two-time winners Australia and South Af- day. The team has won just six of their last 17 call time on his Brumbies career on May 28. rica will also be among those tipped to rival Third seed Federer, who lost to Australian John Mill- games and slumped to sixth in the world rank- Speculation suggests that he is likely to join the All Blacks along with 2003 champions En- man in the last 16 last year, has now been knocked out ings. Japan’s Top League next year. gland, while Ireland, Wales, Argentina, France of the US Open by players ranked outside of the world’s Saturday’s match will be Australia’s last be- Rugby Australia hope the chance to see one and Scotland will also be among those looking top 50 for the second successive year — after never pre- fore the Rugby World Cup kicks off. of Australia’s great Test players play at home to play a big part in the knockout stages. viously having lost to one at Flushing Meadows. — bbc. Pocock replaces current captain Michael for potentially the last time will boost sluggish [email protected] com