‘Zim to miss growth targets’: Page 5 $4

News Worth Knowing Hwange seeks new concessions: Page 7

May 9-15 2019 ESTABLISHED 1969 @ FingazLive www.fi ngaz.co.zw Facebook: The Financial Gazette

ZSE Report The All Share Index added 1,19 per- cent on Wednesday to close at 138,89 Economic points. Innscor gained $0,1195 to close at $1,8520, while Delta rose by $0,0501 to end at $2,8502, and African Sun traded $0,0247 higher at $0,2747. The Industrial Index was up by 1,21 percent to close at 464,22 points, while the Top 10 Index gained 1,17 percent to close at 132,27 points. The Minings Index lost 0,41 percent to settle at 183,35 points. prospects Currencies (Bloomberg) % change USD:ZAR 14,3997 0,23 ◀ ◀ ◀ EUR:USD 1,11202 0,10 GBP:USD 1,3007 0,52 USD: JPY 110,0900 0,15

Stock Markets ZSE (All Share) 138,89 1,19 ZSE (Minings) 183,35 0,41 ◀ ◀◀ ◀ JSE 14,699,00 0,27 ◀ get worse 7 241,98 0,25 FTSE 100 0,15 Dow 25 965,09 ◀

Commodities ◀ Gold 1 287,50 3,07 0,37

Platinum 867,17 ◀ 0,26

Brent Oil 69,70 ◀

Grains (Grain SA)

White Maize ZAR 2 020,22 ◀ 2.2

― experts Soya ZAR 4 333,95 ◀ 1.6

Wheat ZAR 2 269,31 ◀ 0.1 Adelaide Moyo and Omega Ukama goods ... it will be disastrous if the crisis con- Staff Writers tinues,” economist John Robertson chipped in. “Most workers will have to be retrenched ‘Take advantage IMBABWE’S economy is haemorrhag- and consumer demand will fall further,” he of media reforms’ ing at an alarming rate, with experts said. Zsaying that all key indicators suggest “The exchange rate is a very destabilising MODUS Media (Modus) ― a very challenging future for both businesses element in the mix of uncertainties facing the publishers of The Financial and hard-pressed consumers. economy. Although the central bank claims Gazette (FinGaz) ― must take This comes as the International Monetary that this is stabilising — at around one to 3,1 advantage of the opened air- Fund (IMF) has projected that the country’s — nothing is happening that will prevent it waves and expand its portfolio, gross domestic product (GDP) will shrink by from weakening further,” he added. Information minister Monica 5,2 percent this year — signifi cantly down Robertson also said of equally grave con- Mutsvangwa has said. from its initial growth forecast of 4,2 percent. cern was the two percent electronic transac- This comes as President The gloomy outlook also comes as the tion tax that was imposed by Finance minister Emmerson Mnangagwa’s ad- Confederation of Zimbabwe Industries (CZI) Mthuli Ncube, coupled with the multiple fuel ministration has made a com- has forecast that industry capacity utilisation taxes which were eroding workers’ incomes. mitment towards media plural- will further decline to 34,3 percent this year — “The pay increases being granted to public ity, diversity and freedom, and down from 2018’s 48,2 percent. sector workers will not match the increases in has licensed several players, “If the policy direction does not change, consumer goods prices,” he said. mainly in broadcasting. this is what industry expects in 2019,” Tafadz- What was also worsening Zimbabwe’s cri- “As government, we sin- wa Bandama, CZI’s chief economist, told The sis, Robertson added, was the fact that inves- Securities and Exchange Commission of Zimbabwe chief execu- cerely hope Modus will take Financial Gazette. tors were reluctant to commit their capital in tive Tafadzwa Chinamo at The Financial Gazette’s Golden Jubilee advantage of the opening of “The economy is shrinking right now and Zimbabwe. celebration dinner in Harare last week. The commission is cur- the airwaves to grow its media the 2019 growth fi gure is indeed likely to be “The many investors who are said to be rently pushing for amendments to the Securities and Exchange portfolio and create jobs for minus fi ve or six percent. Many factories are interested are all waiting for government mea- Act to enhance the country’s capital markets, unlock value as well thousands of our young people unable to obtain raw materials to manufacture To Page 2 as improve investor protection. Picture by Freedom Mashava To Page 3 Page 2 | May 9-15 2019 The Financial Gazette National News Economic prospects get worse: Experts

From Page 1 knock on effect on disposable incomes, foreign sures that will improve the investment environ- currency generation and overall growth,” he said. ment,” Robertson said. Mlotshwa added that while “creating the in- And consistent with the CZI’s gloomy out- terbank market was a step in the right direction, look, Unilever Zimbabwe has said that its pro- the idea might be stalled by the solvency of cor- duction capacity has hit an all-time low due to a porates with foreign currency liabilities, but don’t lack of foreign currency to secure raw materials. have a strong export component in their revenue”. Likewise, refrigerator maker Imperial & “The authorities should also allow the inter- Commercial Refrigeration says it is operating at bank market to float to a realistic level that en- below 10 percent capacity as most of the com- courages those same exporters to trade their ex- pany’s major clients are reeling from foreign ex- cess forex formally and transparently, as opposed change shortages. to pushing them to a more attractive parallel mar- On the other hand, blue chip counter Delta ket rate,” he said. Corporation (Delta) said recently that “the fiscal In its latest financials, Proplastics — one of and monetary policies implemented between Oc- Zimbabwe’s largest piping products manufac- tober 2018 and February 2019 have significantly turers — also said foreign currency remained a altered the trading environment”. major challenge. “Of particular note is the two percent trans- Its chairman, Gregory Sebborn, said although action tax, the adoption of the local currency the company welcomed the recent changes un- (RTGS$) as the functional currency and the in- veiled in the February monetary policy statement, troduction of an exchange rate of the RTGS$ to it was yet to see the impact of this with regards the US dollar,” it said. to stimulating business performance and easing “The value of RTGS$ deposits continues to foreign currency bottlenecks. be eroded by the fast depreciating exchange rates “The operating environment remained very and cost push inflation,” Delta, one of the coun- challenging throughout the year,” he said in the try’s largest taxpayers and beverage maker, said. company’s financial results for the year ended On its part, financial advisory firm Morgan & December 31, 2018. Co recently said it now saw a state of “pareto op- But Eddie Cross, an economist who has been timality” in the broader economy — an economic optimistic about the 2019 outlook, is now blam- state where resources cannot be re-allocated to Gregory Sebborn Eddie Cross ing the central bank for “retarding” the economy. make one individual better off without making at “The reserve bank actually is responsible for least another individual worse off. sumer purchasing power,” Morgan & Co said. as businesses has pushed the costs to final con- much of the inflation in the market at present and “This implies that it is almost impossible to ef- “We contend that there has been a transfer of sumers,” Morgan & Co said last week. is therefore responsible for retarding economic fect a change in economic policy without making wealth from the general populace to the govern- Meanwhile, Lloyd Mlotshwa of advisory firm recovery and stability even though the economic at least one economic agent worse off,” it said. ment. For companies, the implication has been an IH Securities says Zimbabwe is “effectively in a fundamentals are now stable and sound,” he said. “The increase in fuel prices and the introduc- increase in the cost of production,” the research recession” already. [email protected] tion of the two percent tax has made the general firm said. “Early signals suggest that output will be populace worse off given the contraction in con- “The net effect is a general increase in prices lower relative to last year, which has a negative See also comment on Page 8 Chloride eyes regional markets

Tabitha Mutenga Currently, Chloride is exporting 30 percent of Features Editor the 30 000 batteries manufactured every month to Zambia, Malawi, Mozambique and Botswa- HLORIDE Zimbabwe (Chloride) says it na, with expansion plans in Namibia and South will be increasing its exports to 50 percent Africa. Cfrom the current 30 percent as it seeks to “We want to push it to 50 percent because we expand its regional presence by manufacturing 50 have a very strong export drive to support the re- 000 batteries per month. quirements of the country and our own require- The company, wholly owned by ART Corpo- ments and Zambia is our company’s biggest mar- ration, specialises in manufacturing and distribu- ket taking in about 6 000 batteries every month, tion of lead acid batteries under the brands Exide which is about 60 percent of the company’s ex- for the automotive market and Chloride for stand- ports. by and motive market. “We know we can supply the Zambian market Kudzielister Pasipanodya, Chloride's general size of 25 000 per month and we are only at 6 000 manager, said the company has capacity to meet so we want to grow that market since we are the the country’s battery demand of 30 000 per month biggest in terms of market share in Zambia, we as it has installed capacity of 35 000 batteries. want to swallow our competitors,” Pasipanodya “We are in the process of recapitalisation as we said. want to put in an additional $3 million this year to Raj Modi Chloride is also re-establishing its links with increase capacity from 35 000 to 50 000 to enable Botswana and Malawi markets. us to supply the local and regional markets,” he tery-making equipment in 2016 and has since “In Botswana, we have been there before and said during a tour of the factory by deputy Indus- broadened its product range to include solar bat- we want to improve. In Malawi, we used to be try minister Raj Modi. teries. Before the investment the factory was pro- there but we left in 2008/09 so we want to re-open The company invested $3 million in bat- ducing 240 000 batteries per year. there,” he added. [email protected] The Financial Gazette May 9-15 2019 | Page 3 National News ‘Take advantage of media reforms’ From Page 1 Also, government’s national digitalisation programme, who are graduating at our national universities and colleges,” which envisages migration from analogue to digital televi- Mutsvangwa said at FinGaz’s 50th anniversary celebrations in sion, will see the opening up of more television channels for Harare last week. the private players. “It is also critical to note that FinGaz is celebrating 50 Pilate Machadu, Modus’ chief executive, said the iconic years at a time government has opened up the airwaves and FinGaz ― affectionately known as the Pink Paper ― has has made the environment more conducive for journalists by “grown over the years and distinguished itself as a trusted making concerted efforts of repealing the Access to Informa- source for business news and economic insights and it con- tion and Protection of Privacy Act (AIPPA),” she said. tinues to set the trend in positioning local businesses and the As part of efforts to create a better media landscape, in nation for global capital”. February, government announced that Cabinet had resolved “We have gained a reputation for in-depth and authorita- to repeal AIPPA, one of the most toxic pieces of legislation tive business and financial news reportage that is anchored on enacted after independence. providing timely, accurate, fair and balanced news,” he said. The repeal of AIPPA gave rise to three legal instruments Machadu noted that while Modus has moved with the ― the Access to Information Bill, the Zimbabwe Media times and converged its content through multi-communi- Commission Bill and the Protection of Personal Information/ cation platforms — which include a revamped subscrip- Data Protection Bill. tion-based world class website (www.fingaz.co.zw), a daily Brains Muchemwa (left) shares the stage with African Economic Development Strat- Besides repealing AIPPA, government has opened up the email news platform Business Live, an e-paper version of the egies (AEDS) executive director Gift Mugano, Vince Musewe and Shingi Munyeza country’s airwaves, issuing private operators with commer- newspaper accessible the website, as well as theme-based re- at the Daily News-AEDS launch of their ‘state of the economy’ report in Harare this cial radio broadcasting licences. To date, eight local commer- ports – “it also plans to venture into other portfolios as well”. week. — Anne Mpalume cial radio stations have been licensed. — Staff Reporter [email protected] No exclusive talks with Standard Bank: govt IMBABWE has not been in “specific discussions Zwith any South African PUBLIC NOTICE REMINDER bank, particularly Standard Bank” to arrange an $800 mil- PAY AS YOU EARN (PAYE) DUE DATE 10 MAY 2019 lion-plus trade and financing facility, as it seeks financial aid from Pretoria and other global The Zimbabwe Revenue Authority (ZIMRA) hereby urges its valued clients registered for Pay As You Earn (PAYE) or required to be reg- markets, treasury officials say. istered to take note that the due date for PAYE for the month of April 2019 is 10 May 2019. This not only comes as The Financial Gazette has re-es- Mthuli Ncube SUBMISSION AND PAYMENT Of PAYE IN fOREIgN CURRENCY tablished that the mooted plan Employers are required to calculate PAYE using the relevant tax tables. The remuneration in RTGS$ and foreign currency should be added does not constitute a loan to Harare and would, there- then PAYE determined based on that total amount. fore, not increase the country’s debt burden, but the cash will only be availed to qualifying companies subject to One PAYE return [Form P2] shall be completed in RTGS Dollars. The employer must attach separate schedules showing total remuneration “stringent know-your-customer” checks or processes on and PAYE in foreign currency and in RTGS Dollars. Tax payable in RTGS Dollars shall be remitted to the Commissioner General’s RTGS applications submitted by clients. Account and the tax payable in foreign currency into the Commissioner General’s Nostro FCA. “You will be aware that Finance minister Mthu- li Ncube has been exploring various opportunities for The employer shall: unlocking huge amounts of foreign currency to reduce local firms’ business costs — and ultimately consumer • Convert remuneration earned in foreign currency to RTGS Dollars at the prevailing Interbank rate; prices to manageable levels — and these short-term fa- • Add the remuneration determined above, to the remuneration earned in RTGS Dollars to get total remuneration. cilities would range from 120 to 180 days in tenor,” the • Deduct allowable deductions to obtain the taxable amount. Deductions earned in foreign currency should also be converted to RTGS$. officials said, adding the “targeted facilities would be • Calculate PAYE in RTGS dollars using the tax tables. extended by regional banking and financial institutions • Subtract the credits to determine the PAYE payable. Any credits earned in foreign currency should be converted to RTGS$. to exporters in the industrial, agricultural and mining • Compute tax payable in foreign currency and in RTGS proportionately. sectors”. “The plan is to ensure that hard cash flows to benefi- ciary companies at real dollar value and thus alleviating Example on calculation of PAYE. the pressure on existing reserves that the Reserve Bank Employee Y earned a salary of US$200.00 and RTGS$1,200.00 earned in April 2019. Pension paid is RTGS$20.00. The payroll is run on of Zimbabwe has been allocating to the market. And the 27 April 2019. foreign facilities do not have a specific value or ceiling, as they are dependent on the local market’s appetite or Remuneration in US$ (converted to RTGS$ at 2.9827) 596.54 demands,” they said. Remuneration in RTGS$ 1 200.00 Crucially, the government programme — which was Total 1 796.54 being brokered by a trans-Limpopo advisory — was aimed at dramatically increasing local productivity, em- Less Pension 20.00 ployment and guaranteeing the country’s fiscal stability, Taxable Remuneration 1 776.54 and “no single bank was to monopolise the process”. According to people familiar with the development, Tax Due [1776.54*25%]-145 299.14 the financing scheme “was open to all banking institu- Add Aids Levy [299.14*3%] 8.97 tions that have a qualifying client base in export-related Tax Payable 308.11 industries”. “With the government having been in talks with a number of South African banks and private sector play- PAYE in US$ [596.54/1796.54*308.11] = 102.31/2.9827 USD$34.30 ers to put together an $800 million to $1,2 billion finan- PAYE in RTGS/Bond [1200/1796.54*308.11] RTGS$205.80 cial package to alleviate the country’s liquidity situation, the parties to the discussions have been quite keen on ensuring that the project reaches an operational stage The employer therefore pays USD$34.30 to the Commissioner general’s Nostro fCA and RTgS$205.80 to the Commissioner now,” the sources said, adding the “arrangements were general’s RTgS/Bond Account. pretty much in line with bilateral discussions between Harare and Pretoria”. In fact, clause nine of the two capitals’ March eco- For any further clarification, kindly visit your nearest ZIMRA office. nomic commission statements or communiques alluded WhatsApp line : +263 782 729 862 to the fact that any help to Zimbabwe would be chan- nelled via the private sector. Visit our website : www. zimra.co.zw While it would have been desirable to have Lungisa follow us on Twitter : @Zimra_11 Fuzile’s Standard Bank “as one of the major lenders and Like us on facebook : www.facebook.com/ZIMRA.11 with whom exploratory discussions have been held”, the South African finance giant’s participation “was not a Send us an e-mail : [email protected] / [email protected] pre-condition for the programme’s launch”. Call us (Head Office) : 04 –758891/5; 790813; 790814; 781345; 751624; 752731 The strategy, sources said, does not require any lead arrangements as it entailed the introduction of facilities to Zimbabwean exporters and the country can absorb Public Notice Number 17 of 2019. billions across various economic sectors. My Taxes, My Duties. Building my Zimbabwe Meanwhile, other conditionalities of the deal include guarantees to the participating banks that export pro- ceeds of beneficiary companies are to be ceded to the foreign banks and 10 percent of the gross facilities be lodged as security with the same. — Staff Writer [email protected] Page 4 | May 9-15 2019 The Financial Gazette National News RBZ to contain money supply growth

Tabitha Mutenga containing money supply. We are implementing was due to the revaluation, which was done in money supply, but it was because of the revalu- Features Editor what we call Monetary Targeting Framework. February, when we moved from the US$ to the ation in February. The trend is still a downward It is on this understanding that if we pin down RTGS$. trend,” he said. HE Reserve Bank of Zimbabwe (RBZ) money supply growth to around 10 percent, we “In the banks there were some people who still By curbing money supply growth, the RBZ is implementing the Monetary Targeting will be able to reduce inflation significantly be- had nostro balances and for recording purposes believes it will achieve a decline in inflation. TFramework meant to contain money sup- cause of that close relationship between money those nostro balances are now being recorded in “The decline in money supply will help in an- ply growth at 10 percent. supply and inflation,” Nebson Mupunga, the RTGS$. So the nostro deposits were multiplied choring adverse inflation expectations currently Statistics from the central bank show that RBZ deputy director for the Economic Research by the new exchange rate,” Mupunga said. driving prices. Inflation and money supply move trends in money supply have been going down Division, said last week. According to the RBZ, the RTGS$ has been on a 1:1 basis,” he said. since its peak in July 2018. Broad money supply However, in February broad money supply working smoothly as the official settlement and Quarterly annualised inflation statistics from growth peaked at 47,5 percent in July 2018, be- growth slightly increased to 38,17 percent, partly unit of account currency as bank balances, na- the RBZ indicate that inflation has been consis- fore decelerating to 28,05 percent by December reflecting revaluation to the new exchange rate. tional statistics and accounting books are now in tently declining since December 2018. This trend 2018. “There has been a small reversal, but we are RTGS$. suggests the likelihood of lower inflationary pres- “As the central bank we have taken a strong not worried about that small reversal, it is not “Now that we have multiplied the nostro de- sures in the short and medium terms. stance towards liquidity management as a way of an increase in money supply. The small reversal posits and it seemed like there was a reversal in [email protected] Poultry meat demand decreases

Tabitha Mutenga increased by more than 30 percent compared to prices Features Editor in the fourth quarter, particularly all proteins (soya, sun- flower, cotton, fish meal), wheat bran, methionine and HE Zimbabwe Poultry Association (ZPA) says the lysine,” Zawe said. country witnessed a marked reduction in demand Average weighted broiler and layer feed prices in the Tand supply of poultry meat in the first quarter due first quarter of 2019 were $1 155 and $900 per tonne, to increases in cost of feed and reduced consumer buy- respectively, being 15 percent and 20 percent higher than ing power. prices in the fourth quarter. These twin forces are expected to persist into the sec- Estimated total broiler meat production in the first ond quarter of 2019 unless there are fundamental chang- quarter of 2019 was 10 203 tonnes per month, being nine es in the economy. percent and 19 percent lower than that of first quarter Solomon Zawe, the ZPA chairman, said as a result of and fourth quarter of 2018 respectively. reduced maize stock levels, the Grain Marketing Board Large-scale meat production in the first quarter de- has stopped selling subsidised maize to poultry produc- clined by 11 percent compared to Q4 of 2018, whereas ers for on-farm mixing and removed subsidies on maize small-scale production is estimated to have declined by procured by feed manufacturers. 22 percent. “Due to the drought, the country will have to depend Zawe noted that business pressures on production on expensive imported soyabean meal and maize for the costs along the livestock value chains are being com- rest of the year. All these factors will translate into in- pounded by the high level of inflation experienced in creased costs of poultry production,” he said. 2018, which have continued to erode consumer purchas- The poultry industry is anticipating an upsurge in ing power. both legal and illicit imports of cheap poultry products Low income families consider meat and eggs as lux- because of increases in production costs and reduced ury goods, consumption of which declines with falling consumers’ purchasing power. disposable real income, compromising the nutritional se- “The price of raw materials procured in the first quar- curity and development of children under the age of five Zimbabwe witnessed a drop in demand and supply of poultry meat in the first ter of 2019 continued to surge and many products had years. [email protected] quarter due to increases in cost of feed and reduced consumer buying power. Invictus, Sable sign gas deal Gvt invests $6m in Premier Adelaide Moyo stood,” he said. Tabitha Mutenga Under the MoU, Invictus and Sable have agreed to Business Reporter Premier holds a 49 percent interest in Featured Editor jointly work together and cooperate with regards to RHA and is the operator. investigating the economic and commercial viability REMIER African Minerals (Pre- Premier is focused in southern Africa IL and gas exploration company Invictus Energy of supplying natural gas from the Cabora Bassa Project to mier) says it has signed a new man- with its RHA and Zulu Lithium projects (Invictus) and Zimbabwe’s fertiliser maker Sable Sable’s fertiliser plant located in Kwekwe, Zimbabwe. agement agreement with the gov- in the country. OChemicals (Sable) have signed a 20-year gas sales “Signing this MoU with Sable marks a significant mile- Pernment of Zimbabwe that will see RHA Roach said Premier and NIEEF have deal for the supply of up to 26 billion cubic feet of the com- stone in our commercial negotiations as we look to progress Tungsten Private Limited (RHA) brought agreed a provisional implementation pro- modity. the Cabora Bassa Project,” Macmillan said. back into production without further fi- cess. The deal will see Sable replace ammonia gas, which it “The MoU demonstrates the huge local gas demand in nancing from the exploration company. From the management agreement, imports, with natural gas. an energy starved market in Zimbabwe and we expect to en- The Aim-listed miner said the new Premier’s 100 percent owned subsidiary Invictus, which recently announced an oil find in Zim- ter into additional gas supply MoUs in the future,” he added. agreement with the National Indigenisa- ZimDiv Holdings Limited is appointed as babwe along the Cabora Bassa belt, has signed a memoran- Sable currently has a capacity to produce 240 000 tonnes tion and Economic Empowerment Fund the manager for a period of five years. dum of understanding (MoU) with Sable on the deal. of ammonium nitrate fertliser per year and has historically of Zimbabwe (NIEEF) involves a funding Just early last month, Premier said it Sable, a large gas consumer, is the sole manufacturer of played an important anchoring role in Zimbabwe’s agricul- undertaking of US$6 million for RHA. had terminated its proposed acquisition of agriculture grade ammonium nitrate fertiliser in Zimbabwe. tural sector. George Roach, Premier chief exec- a 50 percent stake of the KME Plant and “Invictus announces that the Cabora Bassa Project part- “The potential future supply of gas by Invictus is also utive, said the agreement will see RHA in Honey Badger Resources (HBR) due to ners have entered into a non-binding MoU with Sable to critical for Sable’s medium-term expansion program aimed back in production later this year. ongoing uncertainty over the future of its progress gas supply from the…project, subject to a com- at increasing production to 600 000 tonnes of nitrogenous “Whilst it has been a long haul, I am RHA. mercial gas discovery being made” said Invictus’ managing fertilisers,” said Bothwell Nyajeka, Sable’s chief executive. very pleased to be able to report that we Roach said the $3,7 million sale ― director Scott Macmillan. [email protected] have signed a new legally binding agree- which was meant to be settled in Pre- ment with NIEEF that includes a funding mier shares then combined with its own undertaking of US$6 million for RHA,” Zimbabwean assets and seek a listing for he said. them on an unspecified London market ― US to return $200m to Malaysia “Use and application of these funds is would not proceed. expected to see RHA back in production “Premier announces that following HE US is to return close to $200 million to Malaysia in tion is being transferred back to Malaysia, demonstrating the later this year and allows for required up- the announcement on February 14, 2019, funds recovered from asset seizures tied to scandal-hit US commitment to return these assets for the benefit of the grades that are expected to result in major which outlined the proposed conditional Tstate fund 1MDB. people of Malaysia," operating cost reductions including elec- acquisitions of 50 percent of KME Plant US authorities have so far transferred $57 million tied to The $57 million remitted so far relates to a settlement tricity grid connection. Premier retains Limited and 50 percent of the equity in a Hollywood firm accused of using 1MDB funds to finance reached with US film production company Red Granite Pic- ownership of the plant and equipment and films. tures, Malaysia's Attorney General Tommy Thomas said in HBR, Premier will now not proceed with It will send another $139 million linked to the sale of a a statement. is reappointed as the manager for a further either transaction until there is some final- Manhattan property allegedly bought with 1MDB funds. The film production company settled a civil lawsuit with five years with renewal thereafter,” Roach ity on the future of RHA Tungsten (Pri- Billions of dollars from 1MDB ― officially the 1Malay- the US government over rights to blockbuster The Wolf of said. vate) Limited,” he said sia Development Berhad fund ― have gone missing. Wall Street. According to Reuters, US authorities say the film He said the investment from NIEEF “Premier notes that pursuant to our Set up in 2009, the sovereign wealth fund was designed was financed with 1MDB funds. will be structured as share capital and announcement on March 13, 2019, the to boost Malaysia's economy through strategic investments. 1MDB was set up by Malaysia's then-prime minister Na- Premier will simultaneously capitalise an final agreements are with the office of the But US authorities say $4,5 billion was diverted from jib Razak, but red flags were raised in 2015 after it missed equivalent amount from Premier’s exist- Ministry of Industry, Commerce and En- 1MDB into private pockets, and they have been investigating payments owed to banks and bondholders. ing loan account. terprise Development and Premier now the corruption scandal. Mr Najib faces more than 40 charges and has gone on “In my opinion, this represents both an awaits final sign-off,” he said According to US and Malaysian prosecutors, the money trial for his role in a financial scandal. He has pleaded not equitable solution and a good time for the HBR already has a resource greater was used to buy assets including luxury real estate, a private guilty. Zimbabwean government to invest direct- than 500 000 ounces and a further internal jet and expensive artworks. He is accused of pocketing $681 million from 1MDB. ly in this project. RHA has been signifi- resource in a semi-developed and previ- On Tuesday, US ambassador to Malaysia, Kamala Shirin Prosecutors said the money had been used to fund a lavish cantly de-risked over the past 4 years and ously mined deposit. Lahkdhir, told Reuters: "We are extremely pleased that this lifestyle for the former PM and his wife Rosmah Mansor, is now an operation that is better under- [email protected] first tranche of assets from this Justice Department investiga- who is also facing charges of corruption. – BBC The Financial Gazette May 9-15 2019 | Page 5 National News Zim to miss growth target: Report Adelaide Moyo environment that encourages produc- urgent need for industry, government Business Reporter tion. Monetary authorities and govern- and labour to set up a tripartite negoti- ment should be seized with this issue ating forum (TNF) in order to arrest the IMBABWE will miss its 3,1 percent economic and not threaten capital,” Mandiwanza deepening economic crisis. growth target due to “policy uncertainty and im- said. “We are in a transition and we need to Zpact of austerity measures” a recently-released “It is very important that we get to have a mid-wife to set up a TNF where report by the Daily News and Africa Economic Devel- the bottom of issues and proffer solu- all parties commit to some agreement to opment Strategies (AEDS) said. tions. How do businesses restock and set take the economy forward,” he said. This comes as the International Monetary Fund up prices for tomorrow when the future The former African Sun chief ex- (IMF) has said the economy will slide into recession is not known? We need to remove the ecutive said the current high inflation this year, projecting that real gross domestic product opaque nature of the interbank facility and soaring foreign currency rates on will drop by a negative 5,2 percent, from an initial es- and ensure that it is working efficiently,” the parallel market were symptoms of timate of 3,4 percent. the veteran industrialist added. deeper underlying issues besetting the “The negative growth prospects will be due to the Over the past few months prices of economy. contractionary impact of austerity measures (reduc- goods and services have skyrocket- “We need confidence in the economy. tion in government expenditure), uncertainty in policy ed, with the country’s annual inflation Our politics is toxic and polarised and (monetary policy and fiscal policy reversals), economic shooting up from around five percent to this causes convulsions in the econo- reforms and drought prospects,” said the report titled nearly 70 percent by March this year. my,” Munyeza said, adding that it was ‘State of The Economy’. Speaking at the same occasion, busi- critical to have political dialogue. Apart from that, the report said the country has not nessman Shingi Munyeza said there was [email protected] made any progress in “fighting corruption, while pub- Gift Mugano lic reform and ease-of-doing business remain on slow progress”. The Daily News/AEDS report added that the coun- try’s external sector has largely remained under con- siderable pressure due to foreign currency demand rel- ative that has failed to match foreign currency inflows. It said while export of goods and services has been on an upward trend, this has been offset by the increase in import of goods and services on the back of domestic supply gaps and rising international oil prices. On prices of basic goods, the report said it will be important to see how the “cost of living will respond to measures applied by the central bank, among them being the liberalisation of the exchange rate which is expected to address distortions and the exchange rate spiral on the black market”. PUBLIC NOTICE: Commenting on the report’s findings, AEDS exec- utive director Gift Mugano said policy consistency is NOTICE TO OUR VALUED CLIENTS: EXTENSION OF DATE OF key, as the general populace does not need to speculate all the time. SUBMISSION OF INCOME TAX (ITF12C, ITF1) AND CAPITAL GAINS “I think the challenge that we are facing from a gov- ernment point of view is a number of statements which TAX RETURNS (CGT1) FOR TAX YEAR ENDED 31ST DECEMBER 2018 are confusing as to what is going to happen to tomor- row. We are hearing about new currencies, we thought we has a new currency called the RTGS$ but we are The Commissioner hereby advises all taxpayers that the due dates for submission of Income Tax and Capital Gains hearing of another currency, so the thing of govern- Tax returns have been extended to 31 May 2019 as follows: ment saying we get a shock and we adjust, we have had enough shocks right now,” he said. He said government cannot talk of a new currency 1. INCOME FROM EMPLOYMENT [NON-FDS CASES] because there are no necessary fundamentals, includ- ing foreign currency reserves equivalent to one year, to Persons in receipt of income from employment should submit Income Tax Returns [ITF1] extended from 4 May bring back the Zimbabwe dollar. “The risks are coming on the backdrop of the fact 2019 to 31 May 2019. that, to date, there is about $10 billion in broad money supply made up of Treasury Bills (TBs), loans, savings 2. INCOME FROM TRADE AND INVESTMENTS bond and money in circulation,” Mugano said. The amount of money in circulation available for use according to the RBZ amounts to $1,8 billion while All taxpayers on Self-Assessment due date extended from 30 April 2019 to 31 May 2019. the remaining balance of $8,2 billion is in TBs, savings bonds and loans hence will not exert pressure on the 3. INCOME FROM DISPOSAL OF SPECIFIED ASSETS. exchange rate, he said. “It is not expected that the available liquidity of $1,8 billion will be used to purchase foreign exchange Individuals and persons who received or accrued capital gains from disposal of specified assets in 2018 due date as some economic agents will be using the money to extended from 4 May 2019 to 31 May 2019. pay for usual transactions such as salaries, fees, fuel,” Mugano said. “The risks which may arise here comes on the back 4. DORMANT COMPANIES of maturity of TBs as well as budget deficits (due to in- creasing pressure to raise salaries and other unbudgeted for expenditures) which may raise demand for foreign Dormant companies due date extended from 4 May 2019 to 31 May 2019. currency thereby causing sharp rises in the exchange rate.” Please Note: Meanwhile, speaking at the launch of the report, Anthony Mandiwanza — the chief executive of listed milk processor Dairibord Holdings — said government a) Income Tax Returns are submitted on line on http://efiling.zimra.co.zw except for taxpayers on employment must desist from threatening businesses as such actions income which are supposed to be submitted manually. will spook investors. His remarks come after vice president Constantino Chiwenga recently threatened businesses for increas- b) Any requests for extensions must be lodged before due dates to the nearest ZIMRA Offices. ing prices of basic goods, likening the move to terror- ism, and insinuating that government could close down c) Taxpayers who accrued or received income must register for tax and submit returns. the “unethical and unpatriotic” firms. “We would want to make this warning today. Those who’re doing this exercise, we already know. If one d) Any requests for extensions beyond the stipulate dates in the notice must be addressed to Regional Manager tries to practice financial terrorism in Zimbabwe, we at the nearest ZIMRA office. will react appropriately and no-one should cry that he has not been treated fairly,” Chiwenga said at the Zim- Public Notice No. 18 of 2019. babwe International Trade Fair last month. But Mandiwanza said investors are jittery, adding My taxes, My duties - Building my Zimbabwe that government must learn from the 2007/8 crisis, which was characterised by a rampaging parallel mar- ket and massive company closures. “Capital is timid and flies to safety and no amount of talking will stop it,” he said at the launch of Daily News’ State of The Economy report on Tuesday. “What happened in 2007 should never be repeated again,”Mandiwanza added. “Government should create a conducive operating Page 6 | May 9-15 2019 The Financial Gazette National News NSSA relishes NBS ‘success’ Omega Ukama of NBS, which by the way, is now profitable,” things, it is bound to work out in the way that it Business Reporter he said. has,” said Nziradzemhuka. He said the “success and impact” of the He said the success of the society was spe- HE National Social Security Authority NBS model “has been to offer affordable hous- cial because NSSA has not directly funded the (NSSA) says it has extended its social ing”. projects. Tsecurity net coverage through its subsid- “Other banks and building societies op- “Because of the technical skills that NBS iary, the National Building Society (NBS). erate entirely on a profit motive but we have has, they have been able to partner private pen- NBS, which has managed to offer afford- the room to balance that with catering for the sion funds to support the project,” he said. able housing to the masses in the past three needs that people have, even though we still Meanwhile, NSSA says it is adopting a years, recently reported its first profit since it aim to make a profit,” Nziradzemhuka said. consolidation strategy in its investments to en- was established in 2016. In a statement accompanying its financial hance the efficiency of the returns of the same. The building society made a profit of $1,03 statements, Stanley Kudenga, NBS’s board Nziradzemhuka said they have already million for the year ended December 31, 2018, chairman, said the society continued on a started rolling out the strategy in the insurance progressing from losses of $1,17 million and growth trajectory “with 2018 being another industry. $2,98 million in the previous years. positive year delivering further strategic prog- “In the consolidation agenda we are trying “As NSSA, we have aimed to offer the low- ress culminating in an increased customer base to re-evaluate our position to see if some things est premiums to ensure that no one is left out as well as delivery of additional housing units can be brought together. So what was known of the social security net and this can not only from various projects nationwide”. as a standalone short-term insurer, for instance, be done by offering low premiums for insur- The society has rolled out multiple housing might become a subset of a giant,” he said. ance and pensions but we can create options projects in areas such as Harare, Chinhoyi and “This is the case with the merger of Nicoz- Phillipine Mtikitiki and opportunities for people to have benefit in Masvingo. Diamond and Tristar Insurance Company un- their other life cycle needs and one of these is NSSA said the models that have been em- der First Mutual Holdings (FMH). housing,” Chakanyuka Nziradzemhuka, the ployed at NBS would have been too complex “FMH has been generating positive returns chief strategic officer at NSSA told journalists to go it alone. as we have started to realise the impact of the Coca-Cola makes at a workshop in the capital last week. “But when you have an institution that is consolidation,” he added. “This has been attained through the creation specialised and knows how to roll out such [email protected] key appointment

OCA-COLA has appointed Phillipine Mtikitiki Investment rules ‘chain’ insurers as general manager for the East and Central Afri- Cca franchise effective June 1, 2019. Omega Ukama provides that an insurer “which carries on The global beverages maker said Mtikitiki will be Business Reporter pension and provident fund business shall at responsible for developing and managing the business all times hold not less than 35 per centum of strategy across East and Central Africa. IMBABWEAN insurers and pension its assets, which are assets in Zimbabwe and The fast-moving consumer goods (FMCG) profes- funds have been forced to helplessly which have been designated as being assets of sional brings a wealth of experience in operations, mar- watch their books’ value get eroded by the pensions fund of that insurer” and in spec- keting, planning and commercial strategy to Coca-Cola. Z Bruno Pietracci, the president of Coca-Cola’s South- rising inflation, as regulators' investment rules ified securities or loans. restrict their ability to save the situation. First Mutual Holdings Limited (FMHL) ern and East Africa Business Unit (SEABU), said the The country’s inflation increased to a 10- said it has also been hurt by the “loss of value company has confidence in Mtikitiki. Donald Trump year record of 66,8 percent in March 2019, on prescribed assets and other monetary as- “I am very pleased to announce Phillipine’s new after gaining 61,4 percentage points since the sets required for regulatory compliance” due role. With Phillipine’s expertise and track record, I am beginning of October 2018. to rising inflation. confident that her leadership will take the business to Global markets Players in the local insurance and pensions “After the recent monetary changes, the new heights in this region, which is full of opportunity industry say the high inflation has been eating prescribed assets remained at 1:1, they have and growth,” he said. tumble amid US, away their balance sheets value and they have not been revalued,” Douglas Hoto, the finan- Mtikikiti said she was excited to be appointed as the not been able to do much about it. cial services group’s chief executive, said re- first female general manager in the region. “One of the challenges for the local insur- cently. “I am thrilled to have been appointed as the first fe- China tensions ance and pensions sector is the issue of regu- Following the announcement of the mon- male general manager for the East and Central Africa franchise. The franchise has been growing steadily over LOBAL stock markets have latory restrictions in investing. In an inflation- etary policy statement on February 20, 2019 slumped after US President Don- ary environment, funds that are not adjusted government gazetted Statutory Instrument 33 the last few years, supported by the region’s rapid ur- ald Trump's unexpected threat to quickly will suffer through the loss of value,” of 2019, which prescribed that certain assets banisation and expanding population. These trends also G Chakanyuka Nziradzemhuka, the chief stra- and liabilities would be converted to RTGS form the backdrop for our drive towards innovation and impose new tariffs on Chinese exports. On Wednesday, Japan's Nikkei 225 in- tegic officer at the National Social Security dollars at a rate of 1:1 to the US dollar. creating consumer-centric brands, which I am very ex- dex lost 1,5 percent after the Dow Jones Authority (NSSA) told a workshop last week. In an apparent response to the situation, cited to lead,” she said. ended down 1,8 percent. “One such restriction is the rule on pre- FMHL recently announced that it is in the Prior to her appointment, Mtikitiki was a region The US president has vowed to dou- scribed asset ratio. It says we are largely sup- process of relocating its reinsurance business, franchise manager for SEABU, leading and executing ble tariffs on $200bn of Chinese goods on posed to be in fixed income securities,” he First Mutual Reinsurance Company (FMRE), the business strategy across Mozambique, Namibia, Friday, amid claims Beijing is trying to said, adding that another unfavourable rule to Botswana in order to escape the “limita- Botswana and Zambia, according to the statement. row back on a trade deal. was “the one that says you can only invest up tions of the local operating environment”, and “Having been in this role since 2017, she has a deep But a Chinese delegation is still due in to 10 percent of your funds offshore”. to expand the horizon of the business. appreciation of the dynamics and opportunities this re- the US for trade talks this week. This comes as a serious foreign currency The Insurance and Pensions Commission gion holds. The talks, led by Chinese Vice Premier shortage has inhibited the operations of busi- (IPEC), however, argues that the set investing She joined The Coca-Cola Company in 1998 as a Liu He, are due to resume in Washington nesses in various sectors in the economy. parameters have played a critical role in the graduate associate. Over 13 years, she worked across on Thursday. “In an economy where it is particularly mobilisation of resources locally. the business unit and its bottling entities in South Africa Asian markets lost ground on Wednes- necessary to generate income in foreign cur- “About 80 percent of commercial buildings in various functions and roles of increasing responsibil- day, after investors in the previous session rency, if you have such restrictions it limits in every city in Zimbabwe are owned by the ity,” the company said. had sought shelter in safer government Mtikitiki, who holds a master’s degree in Business bonds and the Japanese yen. what your fund can do,” Nziradzemhuka said. players in the insurance and pensions indus- Administration (MBA) from Henley Business School, "As we digest the significance of the According to the Insurance Act, “every try.The sector plays a critical role in the de- tariff threat, we are a little less hopeful insurer shall in respect of the insurance busi- velopment of infrastructure through the mo- a bachelor’s degree in business administration and that we are going to see progress at the ness carried on by him in Zimbabwe, hold the bilisation of resources via prescribed assets,” Honours in Economics from the University of KwaZu- end of this week that will forestall the insurance fund in prescribed securities and in Cuthbert Munjoma, the executive assistant to lu-Natal, takes over from Ahmed Rady who has been additional tariffs," said Tony Roth, chief such proportions of prescribed securities as the IPEC commissioner said at the same work- appointed as general manager, Egypt, effective June 1, investment officer at Wilmington Trust in may be specified by the minister”. shop. 2019. - Staff Reporter [email protected] Wilmington. - BBC The Pension and Provident Funds Act also [email protected] Trump’s businesses lose $1 billion

RESIDENT Donald Trump's businesses re- six years of tax returns, a period not covered by the estate empire, the Times previously reported. said you need to change the tax laws. You can make ported losses of $1,17 billion from 1985 to documents reported by The Times on Tuesday. The Times did not obtain Trump's tax returns, but a large income and not have to pay large amount of P1994, The New York Times reported Tuesday, In 1990 and 1991, Trump's core business loss- someone who had legal access to the returns gave taxes." citing information from tax documents from those es were more than $250 million each year ― more the newspaper information about their contents. The CNN has reached out to the White House for years. than double those of the closest taxpayers in those Times then matched the information to figures in the comment on the report. On Saturday, Charles J It appears Trump lost more money than nearly years, the Times reports. public database of IRS information on top earners, Harder, a lawyer for the President, told the Times any other individual US taxpayer year after year, the Trump lost so much money that he avoided pay- where identifying details are removed. The newspa- that the tax information the newspaper acquired was Times reports, according to the 10 years of tax infor- ing income taxes for eight of the 10 years, according per used other public documents to confirm signif- "demonstrably false" and that the Times' statements mation the newspaper acquired. to the newspaper. icant findings, and used confidential Trump family "about the President's tax returns and business from Trump ran for president branding himself as a The Times previously reported that Trump tax and financial records the newspaper had previ- 30 years ago are highly inaccurate." He didn't cite self-made billionaire, touting his financial success, helped "his parents dodge taxes" in the 1990s, in- ously acquired. any specific errors, according to the newspaper. but he has been steadfast in his refusal to release his cluding "instances of outright fraud," and that he Several weeks ago, a senior White House official On Tuesday, Harder told the Times, "IRS tran- tax returns to the public, despite mounting pressure and his siblings helped his parents hide millions of told the Times, "The President got massive deprecia- scripts, particularly before the days of electronic from Congress. On Monday, Treasury Secretary dollars in gifts in a "sham corporation." tion and tax shelter because of large-scale construc- filing, are notoriously inaccurate" and "would not Steven Mnuchin formally denied a request from the Trump, starting at the age of 3, received at least tion and subsidized developments. That is why the be able to provide a reasonable picture of any tax- House Ways and Means Committee for Trump's last $413 million in today's dollars from his father's real President has always scoffed at the tax system and payer's return." - CNN The Financial Gazette May 9-15 2019 | Page 7 National News Hwange pursues new concessions Adelaide Moyo This comes as Hwange’s own open cast operation budgeted targets of 300 000 tonnes. istration of the fi rm — under Zimbabwe’s state-in- Business Reporter contributed 366 959 tonnes of coal during the year Total sales tonnage was 1,522 million tonnes debted, and reconstruction laws — is somehow ended December 31, 2018, representing 20 percent against a budget of 3,541 million tonnes. throttling reform progress and the contentious report WANGE Colliery Company Limited of total year production. Production during the year ended December 31, was only submitted to the interim managers in late (Hwange) says it will look for new mining The contractor operation contributed 1,22 million 2018 increased to 1,79 million tonnes from 1,2 mil- March. Hconcessions as the mine life at the open cast tonnes for the year, far higher than the miner’s own lion tonnes recorded in the prior comparable period. Ever since government, through Justice minister operations is now estimated to be less than 10 years. production. Moyo said during the review period there were Ziyambi Ziyambi, placed Hwange into bankruptcy Bekithemba Moyo, Hwange’s judicial adminis- Moyo said this demonstrated the need to increase constraints in the logistics and processing section of protection — after it had raked up debts of $352 mil- trator, said alternative reserves are required as this production by over 50 percent. the value chain which are being addressed. lion and was threatened with insolvency — a tussle threatens the future of the company. He said Hwange’s performance worsened in “Coal movement was largely by road, which is an of sorts has erupted between varied stakeholders, “Therefore the non-renewal of the western areas 2018, with the loss increasing by 79 percent to expensive mode of transportation. The revival of the including Temba Mliswa’s then Parliamentary Port- coal fi elds mining rights threaten the future of the $78,4 million during the year ended December 31, National Railways of Zimbabwe and our own con- folio Committee on Mines. company as well as the 25-year coal supply agree- 2018 compared to $43,8 million in previous compa- veyor belt to the power station will come as a solu- And as the wars escalated, Mines minister Win- ment, which was signed with the Zimbabwe Power rable period mainly as a result of the impairment of tion to the logistical requirements for the product to ston Chitando was accused of having pushed the Company’s Hwange Power Station stage three ex- some assets as well as subdued coal prices. reach to customers in a cost effective way,” he said. company into administration when an October 2018 pansion,” Moyo said last week. Revenue was up 27 percent to $69,1 million Hwange recently said the governance issues letter to key shareholders, including Nicholas van “These new developments require the company during the review period compared to $54,5 million, raised in a leaked Ralph Bomment Greenacre & Hoogstraten’s Messina Investments and Arcelor to plead for the renewal of the western areas or get attributed to an increase in sales volumes to 1,5 mil- Reynolds (Ralph Bomment) forensic audit are sub Mittal, shows that it was Juliana Muskwe’s board, alternative reserves around the current mining areas lion tonnes recorded during the review period, from judice and not comprehensive enough to conclude which had initiated the move. if there are any chances to supply stage three expan- 1,2 million tonnes in the prior comparable period. that the coal miner was inherently corrupt. With 52 percent, government is the biggest share- sion and also guarantee opencast mining operations The company failed to meet market demand, pro- This also comes as a lawsuit to challenge Moyo, holder in Hwange. to beyond 10 years.” ducing a monthly average of 150 000 tonnes against Mutsa Remba and Munashe Shava’s judicial admin- newsdesk@fi ngaz.co.zw ‘Zim economic growth to slow down’

Tabitha Mutenga Features Editor

IMBABWE’s economic growth is expected to slow down this year due to climatic shocks emanating from Zthe 2018/19 drought and Cyclone Idai, the central bank has said. Last year, the southern African country is estimated to have registered four percent growth, although it may be re- vised to around six percent because of the revaluation chang- es that took place in February 2019, from US$ to RTGS$. However, Zimbabwe now risks sliding into recession this year due to monetary and fi scal pressures, according to the International Monetary Fund. Nebson Mupunga, the Reserve Bank of Zimbabwe (RBZ) deputy director for the economic research division, said it was going to be a tall order for the country to achieve its targeted 3,1 percent growth. “Low economic growth is expected because of the chal- lenges that we are experiencing emanating from the climatic shocks that took place, the drought and the Cyclone Idai,” he told delegates at the May Day National Economic Dialogue Series. Mupunga noted that the economy was facing a number of challenges such as negativity, low levels of confi dence, spec- ulation and short-termism, low growth, shortage of foreign currency and lack of adequate external lines of credit. Zimbabwe is also struggling with low levels of Foreign Direct Investment (FDI), exchange rate vitality and parallel market activities, balance of payment (BOP) defi cits exacer- bated by lack of BOP support from international lenders, ex- ternal payment arrears dating back to 1999 and infrastructure defi cits and inadequate supply of electricity. “In terms of economic activity, what we are seeing now is that economic activity is still robust despite the challenges. We are also experiencing some subdued aggregate demand because prices are now beyond the reach of most people … If this is sustained, it will affect aggregate demand and will have a ripple effect on the economy. The low aggregate de- mand will weigh down on the outlook for 2019,” he said. Mupunga indicated that the increase in prices and the distortions in the pricing dynamics were causing the low ag- gregate demand. He also attributed the current foreign currency shortages to subdued production as well as lack of FDI. “As a country we are not producing enough especially exportable goods. We are relying on very few products. If you look at our exports it's mainly four or fi ve commodities, which are gold, ferrochrome tobacco and platinum. “If we were producing to the levels that Zambia is doing ― their exports reach $10 billion a year ― but when you look at Zimbabwe, we average 3,5 billion last year…we are on the right track but more is required to increase foreign currency,” he said. FDIs in Zimbabwe have been low, averaging between $400 and $500 million per year compared to other countries in the region averaging $1,2 billion per year. Mupunga said the country has not been able to access loans from traditional multilateral and bilateral creditors for the past 18 years. “As a result, we have been constrained in terms of access to foreign fi nance. We have been relying on China and other commercial creditors where interest rates are very high com- pared to the interest rates from the World Bank and African Development Bank,” he said. Zimbabwe has failed to settle its external obligations since 1999, resulting in its debt ballooning from $109 mil- lion in 2001 to over $5 billion. newsdesk@fi ngaz.co.zw Page 8 | May 9-15 2019 The Financial Gazette Leader Page

News Worth Knowing Where are the free goodies, education? N February 24, a Sunday headline ― and billboard ― screamed “cheaper goods by April this year”. O Two months earlier, the same publication had given us another headline: “Free education by next year”, but alas Zimbabwean folks seem to be reeling from a double-whammy of endless shortages, price increases and hefty school fees. With inflation at 67 percent also wreaking havoc in the economy, it would seem the facade ― if not mirage ― of normalcy that our government may want to project is fast fading away and mutating into a major nightmare for the generality of the populace. For instance, prices of basic commodities have continued to skyrocket at the back of rising foreign currency rates, while thousands of children are set to drop out of school due to the recent shock hikes in fees and uniforms at a time the people’s incomes have been significantly eroded by the runaway inflation. And in February, Industry minister Mangaliso Ndlovu told the public me- Chloride Zimbabwe general manager Kudzielister Pasipanodya and Industry and Commerce deputy dia that President Emmerson Mnangagwa’s government was putting in place minister Raj Modi during a tour of the battery manufacturing plant in Harare yesterday. The company measures “to assist the public in the access and provision of basic commodities is looking at investing another $3 million expansion aimed at increasing capacity from the current 35 at affordable prices”. 000 batteries to 50 000 batteries per month. The battery manufacturer is currently meeting national However, Zimbabweans continue to wail under the vagaries of high infla- demand of 30 000 batteries a month and exporting into the region. Picture by Freedom Mashava tion with incomes failing to keep up with changes in the prices of basic com- modities, some of which have risen by more than 300 percent in the last six months. And as we report on our front page today, the country’s economic funda- mentals and prospects do not look promising at all ― in the medium term. Case for public procurement index Although various government officials, including Finance minister Mthuli Ncube and Central Bank governor John Mangudya remain upbeat that in- HE idea that public spending offering quality products at com- The proposed public procurement flation will come down to an average of 15 percent by year end, skepticism can be used to spur economic petitive prices, paying their taxes as index elicits ease of bidding from abounds. Tgrowth has its roots in Richard well as spending their profits (and suppliers in terms of accessibility Frankly, there is no reason for anyone to be optimistic about such indica- Keynes’ General Theory of Employ- incomes for employees) on local of PE annual requirements, clarity tors in the near term or let alone expect things to change any time soon when ment, Interest and Money of 1936. products. Given challenges with cost of instructions and guidelines, time government has not done anything meaningful to improve the people’s plight. Keynes argued for government structures, this also entails prefer- consumed as well as cost of the bid- Zimbabweans have seen equally tough times before, and they have heard spending during times of depression ential treatment of local suppliers ding process. Gaps in this dimen- even bigger promises from government that have never been fulfilled and the and recession. which is also provided for by the sion can be used to lobby for future people are wiser. In 1944, he proposed a more PPDPA Act. amendments and reforms. Among Zimbabweans, the phrase “mega deals” has become a pun for an practical approach to help post Sourcing from previously dis- The integrity dimension evalu- empty promise This comes from the countless memoranda of understanding World War 2 Britain tame inflation, advantaged population groups like ates the extent to which the system that government has signed, which have not brought any meaningful results at the same time preserving employ- women and youths is also provid- has loopholes for corruption, its for desperate locals. ment. The theory’s success in Brit- ed for by the Act. This provides for transparency, and competition. Com- A case in point is that of the now dormant industrial giant Zimbabwe Iron ain and the United States led to the employment by and of these groups petition enables government to attain and Steel Company. For the past 11 years or so, government has made numer- acceptance of public procurement who are normally on the fringes of value for money on its expenditures. ous promises and announced more than one “mega deal” for the resurrection as a policy lever to attain economic, economic development. Regions that Transparency instils confidence in of the once largest integrated steel works in the region, the results of which no social, environmental and technolog- are behind in development, in line the procurement system by suppliers, one has seen. ical development and wide adoption with devolution, can promote growth the public as well as developmental It is now a worrying trend that what government promises and what it de- across the globe. Keynesian macro- and employment by resident firms. partners. Corruption on the other livers are complete opposites. One can only hope that the current administra- economic thinking returned to take Their growth has a multiplier effect hand yields lower value for money tion reviews its long list of unfulfilled promises and takes due heed to make centre stage in economic planning as it benefits local councils in tax- and lack of public confidence. This sure that come 2030, the country is not the exact opposite of a middle income in the aftermath of the 2008 global es as well. Procurement from local dimension also elicits the supplier’s economy. financial crisis to rescue developed firms in this case leads to reduction perception of how specifications pro- And with unemployment hovering over 90 percent, it is crucial that govern- economies. of disparities in regional economic mote or discourage local producers. ment remembers with reverence, its promise of “jobs, jobs, jobs” With the reforms of the Pub- development. Local in this case refers to both Zim- lic Procurement and Disposal of The Procurement Regulatory Au- babwe and regional location of the Public Assets (PPDPA) Act regula- thority of Zimbabwe (PRAZ) plays producers. Southern Africa’s Leading Business and Financial Newspaper tions enacted in 2018, the topic has both a supervisory role for procuring The index also elicits supplier Established 1969 gained more relevance for Zimba- entities (PEs) as well as monitoring perceptions on how government Publisher: Modus Media bwe as government explores alter- and evaluation. The monitoring and entities conduct market sounding. native ways for economic recovery. evaluation of PEs, however, is based When done transparently, market EDITORIAL MARKETING General Manager - Marketing Keynesian Economics speculates on self-reporting tools, which are consultation facilitates the maximi- Editor-In-Chief & Chief Oper susceptible to bias. sation of value for money. It brings Christopher Goko: gok .zw .zw Buy Zimbabwe, in collaboration supplier perspectives to the procur- Brand Executive - Advertising Deputy Editor Open Forum Edwin Vengesa: ev .zw with Bindura University of Science ing entity at an early stage, offering .zw Education, is proposing a public potential benefits in terms of making Senior Sales Executives Managing Editor Christobel Washaya: cwashay .zw with procurement tracking index to track subsequent procurement processes .zw public procurement from a perspec- more focused and efficient. Senior Assistant Editor .zw Lazarus Muchabaiwa tive of private sector local suppliers Lastly, the index assesses sup- as a key stakeholder. The index rates plier perceptions on the complaint Chris Gumun .zw Sales Representatives - Harare the current state of public procure- system for bidders. It elicits percep- News Editor .zw John K .zw Frank Nyandoro: fny .zw that when used properly, public pro- ment across three dimensions, name- tions on clarity of procedures for re- Edreck: emudzingany .zw curement expenditure is a useful tool ly promotion of local production, course, adequacy of the recourse, the Companies Editor Shame Makoshori: smak .zw Sales Representative - Bulawayo to lead economic recovery and sus- ease of procurement, and integrity time the process consumes as well as Clever Pedzisai: [email protected] tained growth. of the procurement system includ- the cost of the process. A functional Online Editor Brand Executive - Events Public procurement expendi- ing complaint systems. The index complaint review system improves Paul Nyakazeya: pnyakazey .zw K .zw ture can be used to reduce unem- can be used as a tool for facilitating transparency and accountability per- Brand Executive - Subscriptions Features Editor ployment. Introduced by Keynes, dialogue between local suppliers, ceptions and encourages reputable Tatenda Taka: t .zw .zw a concept known as the multiplier the government in general, PEs and private sector supplier’s participa- Subscriptions Representatives effect entails that a small increase in labour as well as being the basis for tion in public tendering. Production Supervisor Ronald Madiviko: rmadivik .zw government expenditure results in further reforms in public procure- Buy Zimbabwe is a social enter- Kudzai Rushambwa: krushambw .zw Elizabeth Nyamaruze: eny .zw a significant increase of a country’s ment to facilitate economic growth. prise at the forefront of advocating Chief Executiv income. The argument only holds if In developing the index, the re- for a more viable, inclusive, sustain- .zw the public expenditure relates to pro- searchers were inspired by the Ease able and internally acceptable indus- curement of locally produced goods of Doing Business Index and the try support system based on incen- Bulawayo Editorial, Advertising & Circulation 1st Floor, Princess Court, and services. By promoting local World Bank’s “Benchmarking Pub- tives for increased value chain based 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, producers through sourcing from lic Procurement” study conducted in local procurement and disincentives P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. them, government can promote in- 2016. The Ease of Doing Business for the continued importation of Tel: +263-242-781 572 Tel: (029)75873/75270 Website: www Distributed by: ANZ creased production and employment Index is used to determine how well finished products and services. Buy whose economic value is more than a country’s institutional infrastruc- Zimbabwe’s mandate is to promote, VOLUNTARY MEDIA COUNCIL OF ZIMBABWE the value of the original public ex- ture is suited to the promotion of a deepen and broaden the utilisation e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of penditure. productive business environment. It of locally sourced and produced re- Zimbabwe at: The suppliers, however, also has inspired at least 2 000 reforms in sources to yield quality and globally No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 have to meet their end of the bargain business regulation since its incep- competitive Zimbabwean brands for Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz Zimbabwe in terms of sourcing inputs locally, tion in 2003. sustainable economic growth. The Financial Gazette May 9-15 2019 | Page 9 Page 10 | May 9-15 2019 The Financial Gazette Advertorial

PSMAS Holdings scoops 1st prize at ZITF

SMAS Holdings has proven that it has in- Pdeed grown through experience to become the leading healthcare service provider and medical in- surance company as it scooped a prestigious 1st prize in the Healthcare ser- vices sector during the just ended Zimbabwe Interna- tional Trade Fair (ZITF). The PSMAS Group was promoting group syner- gies where it exhibited its 3 subsidiaries namely the medical aid, healthcare service provision and mi- crofinance. The exhibitors were marketing all PS- MAS products but special emphasis was placed on Premier Lifestyle, Twin Towers Renal and the new EMRAS branding. Winning feeling… The PSMAS stand. The Group took ad- vantage of this exhibi- tion to tell its history and achievements through a wall mural which was strategically positioned for all visitors to see. The graphics were relevant to tell the PSMAS Group story with all the three subsidiaries being prom- inent. The eye catch- ing graphics were clear enough to show that the Group has grown through experience over the past 89 years and passers-by could not resist the urge of stepping into the stand and have a feel of the experi- PSMAS Public Relations Manager Arthur Choga receives the trophy for the Best Exhibitor PSMI Senior Manager for Business Performance Measurement Polite ence. The new baby on the in the Medical Aid and Health Related category from Ugandan President Yoweri Museveni Mugwagwa leads a tour of the PSMAS Holdings stand showcasing a block, Premier Lifestyle while Ms Darling Ndlovu of PSMAS receives the gold medal. wall mural detailing the growth of the organisation since 1930. encourages participants to increase physical activity, improve nutrition, reduce tobacco and alcohol use. lifestyle. know that it is inevitable and also high performance ing its own product and the week is to ensure that team who brought this The wellness programme So far, the Group has to stay healthy always so recruited over 1000 peo- services but is promot- we recruit 1 000 people beautiful concept. It came is being extended to policy recruited more than 20 when one gets sick, there ple to the wellness pro- ing all services offered over the five days we are out well and it has a clean holders under the medical 000 people and it is on an is PSMI to cover for his gramme. by the PSMAS Group. at the show and I am con- look which shows that we aid society. Premier Life- extensive campaign to re- or her medical services The PSMAS Group However, our special fo- fident that we will surpass are a serious company. My style is a first of its kind in cruit all its 900 000 mem- which are provided to PS- Executive Officer Dr Fa- cus for this year is main- this target since I have major highlight is the his- the medical aid sector in bers so that it gives its cli- MAs members and non rai Muchena when he was ly on 3 key areas which brought the best team with tory which is highlighted Zimbabwe since no other ents a complete healthcare members. touring the stand with the are the Premier Lifestyle, me to assist in achieving by the wall mural, I can funder is offering wellness solutions package. The PSMAS Holdings sub- Board Members had this PSMI Twin Towers Renal this.” relate to this history and programmes on this scale. Group provides medical sidiaries work in synergies to say during ZITF, “This (which is set to open any- After the tour of the also it shows that PSMAS ZITF has indeed shown aid cover whereby one to enable the delivery of is our first year exhibit- time soon) and the new stand, PSMAS Board is growing bigger and bet- the urge by PSMAS pol- joins medical aid and is total healthcare solutions ing as PSMAS Group and EMRAS branding. These Chairman Mr Jeremiah ter over the years. With icy holders to join the automatically recruited for to its subscribers. The we are putting to test our are our three main exhi- Bvirindi had this to say, the 89 years’ experience, wellness programme as Premier Lifestyle so that Group carried with it a synergies as a Holdings bition points and Premier “This is a beautiful stand we have achieved a lot they are very much aware he or she stays healthy. culture of service excel- company where each sub- Lifestyle being the major which deserves an award, which is a result of hard of the benefits of a healthy However, as we all lence, value alignment sidiary is not only promot- highlight. Our target for special thanks goes to the work and innovation.” May 9-15 2019 Page 11 Companies&Markets The Financial Gazette PADENGA COUNTS OF RISING DEMAND — 12 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) PADENGA Holdings is expected to trade 46 000 premium quality skins in 2019 despite an ongoing shift in the indus- try towards curbing the use of exotic skins, research firm 0,73% 0,96% 0,17% 0,11% 0,39% IH Securities has said. 10,6684 12,41 77,48 11 373,12 1 379,86 Banks get capitalisation reprieve

Omega Ukama Business Reporter IMBABWEAN commercial banks have RioZim cuts been given a respite by the recent mon- Zetary reforms as they are now required to have RTGS$100 million in capital by 2020 instead of the initial recommended US$100 out contractors million. In 2014, the Reserve Bank of Zimbabwe Adelaide Moyo increased the minimum capital requirement Business Reporter for commercial banks to US$100 million from US$12,5 million “to ensure that the in- IOZIM Limited (RioZim) has moved away from stitutions would be able to effectively respond contract and commissioned owner-mining at two to the financial requirements of the business Rof its mines in an effort to increase its revenues. community and other potential borrowers”. Lovemore Chihota, the mining house’s chairman, said But it would have been a tall order for the the new development at Cam & Motor and Dalny Mining banks to reach the required capital in US dol- sites will result in the listed gold miner becoming self-de- lars. pendant. The greenback is currently trading at the “…the group successfully moved from third-party steep rate of 1:4.80 to the RTGS$ on the par- contract mining and commissioned owner-mining at both allel market. its Cam & Motor and Dalny Mining sites thus not only However, following the recent redenomi- significantly reducing operating costs but also, this made nation of bond notes and local bank balances the group’s mining operations wholly self-dependant,” into a new currency, the RTGS$, which is trad- he said last week. able against major currencies on an interbank Market watchers say the transition is a logical pro- market, government gazetted Statutory Instru- gression as it is expected to not only have both cost and ment 33 of 2019, which prescribed that for operational benefits, but also provide the miner with fi- accounting and other purposes, certain assets nancial flexibility, thereby cementing RioZim’s margin and liabilities will be “deemed to be RTGS$ In 2014, the Reserve Bank of Zimbabwe increased the minimum capital requirement position. at a rate of 1:1 to the US dollar and would be- for commercial banks to US$100 million. Owing to the country’s macroeconomic factors and come opening RTGS$ values from the effec- difficulties, RioZim’s gold production for 2018 regressed tive date”. management skills,” he said. that conversion of some of the bank’s US dol- by 13 percent to 1 792 tonnes, which is less than the 2 Central bank governor John Mangudya Commenting on these developments, Bata- lar balances to RTGS$ would push it over the 071 tonnes achieved in the prior year. said this also applies to regulatory capital for nai Matsika, the research head at Morgan & line. The miner lost two months of production due to for- financial institutions. Co said while “this will make things easier for “In terms of accounting capital as at De- eign shortages. “Yes indeed, it is now RTGS$100 million banks to attain the required capital by 2020, it cember 2018, we were on RTGS$105 million RioZim halted production in October for a month af- and not US$100 million,” Mungudya told The will expose them to adverse ratings”. but when the central bank does their usual ter running out of key inputs, before announcing another Financial Gazette last week. “You will find that the international rating haircut it leaves us at about RTGS$90 mil- temporary shutdown in February. “All the books of accounting in Zimba- agencies consider capital in US dollars, so if lion, but you will see that some of our capital The resources firm claim that the Reserve Bank of bwe have changed to RTGS$, so we are only local banks shoot for a target in local dollars, comprises real US dollars while some of it is Zimbabwe (RBZ) is yet to pay for gold deliveries since doing what is permissible by the law, in this which as you know are losing value, they will RTGS$ so when you convert the US dollars December and failed to meet its pledges to allow produc- case Statutory Instrument 33 of 2019. So we be exposed to adverse ratings,” he said. into $RTGS you will find that we are well over ers to retain the bulk of their earnings. are merely conforming to that and we have not Meanwhile, FBC Holdings says its banking RTGS$100 million,” he said. “As a result, for a greater part of the second half of revised the figure,” he said. unit, FBC Bank, has surpassed the 2020 capi- Mushayavanhu said FBC Bank, which had the year 2018, the group effectively sold 45 percent of With the RTGS$ trading against the US tal adequacy requirement, following monetary not been contributing to the group dividend in its gold production at only 25 percent of its true value,” dollar on the official market at a discount of changes in February. a bid to make the 2020 deadline, would now Chihota said. more than 300 percent, many had expected the According to the central bank’s calcula- resume contributions. RioZim, which dragged the central bank to court over apex bank to revise the figure upwards. tions, as at December 31, 2018, four banks “They have reached the minimum require- its failure to pay foreign exchange earnings due to the Mangudya, however, said the central bank out of the 13 had reached the US$100 million ment in terms of capital so they can now start gold producer in the past, estimated losses caused by has no plans to revise the figure in the foresee- threshold. This excluded FBC Bank, which at contributing towards dividend and what that payment delays to be $40 million in increased expenses able future. the time had US$94 million. means is that all things being equal, there is and delayed capacity, a figure anticipated to have shot up, “We are not revising the figure now because However, John Mushayavanhu, FBC Hold- going to be more dividend,” he said. precipitating the temporary suspension of operations in we believe that the banks should improve their ings’ chief executive told analysts recently [email protected] February. [email protected] Page 12 | May 9-15 2019 The Financial Gazette Companies & Markets Unifreight restructuring pays off

Omega Ukama are well on track in our quest of taking the central bank ring-fenced RTGS$ bank balances and Business Reporter Unifreight Africa Limited from ‘Good to Nostro FCAs. Great’,” Consequently, the group’s profit from continuing op- NIFREIGHT Africa (Unifreight) says it is “on “We continue to build a solid founda- erations shrunk to $1,58 million from $2,15 million in track” to achieve its long term strategic goals af- tion, and have adapted our model to be 2017. This was after “higher than budgeted operating Uter embarking on a restructuring exercise nearly able to show steady growth both in rev- expenses” of $23,02 million, which the company said five years ago. enue and profits but more importantly in were incurred due to a “combined impact of foreign cur- The group was restructured in 2015 to reflect a real terms on the statement of financial rency shortages and price increase challenges”. “one-company-one-focus” business providing transport position, no matter the country’s econom- Chingoka further indicated that the company was and logistics solutions. And in 2016, it disposed of its ic environment,” he said. “excited with progress achieved during the period un- subsidiary PXL Freight & Logistics and sold off the lo- Chingoka, however, noted that the der review, particularly the acquisition of new revenue cal Pioneer Services. Over the two-year period, the com- group’s revenue growth was below bud- earning equipment, and the growth in the statement of pany also laid off about 200 employees and effected pay get owing to lost sales during its normal financial position in real terms”. cuts on the remaining staff. peak period between October and De- The group’s net assets grew marginally from $15,21 Patrick Chingoka, Unifreight’s board chairman, said cember. million in 2017 to $15,46 million. the listed logistics concern saw its revenues growing “This was as a result of most of our “We are also optimistic with regard to the positive by 18 percent to $27,13 million during the year ended major customers facing serious disrup- changes in the monetary policy, with the view that it is December 31, 2018, notwithstanding a harsh operating tions due to pricing and re-stocking un- in favour of formal business flourishing, while the play- environment. certainties,” he said. ing field is levelled to include the informal market in the “Despite a very difficult trading environment during In October last year, the local markets economy,” Chingoka added. the 2018 financial year we are pleased to report that we erupted into a frenzy of uncertainty after [email protected] Padenga counts on rising global demand

Adelaide Moyo Business Reporter

ADENGA Holdings (Padenga) is expected to trade 46 000 premium quality skins in 2019 despite an Pongoing shift in the industry to curb the use of ex- otic skins, research firm IH Securities (IH) has said. The global movement, spearheaded by Chanel, which banned the use of exotic skins, began by the limitation and exclusion of animal furs and it has seen some of the largest players in the global exotic skin demand chain, such as LVMH, Fendi, Christian Dior and Marc Jacobs, tighten the criteria for exotic leather to improve animal welfare, environmental preservation and working condi- tions of employees. “However, global demand for defect-free skins re- mains steady and prices are anticipated to hold as long as the quality and criteria requirements of the premium market are satisfied, where Padenga is a founder mem- ber for an association promoting good animal husbandry practices,” IH said. “Thus, Padenga has made concerted efforts to ad- dress the historical micro-defect issues impacting neg- atively on skin quality through the construction of a research laboratory for scientific analyses into disease transmission and skin quality.” A further 80 new grower pens were constructed at the Nyanyana Farm to facilitate the earlier movement of stock out of hatchling pens, the research firm said. IH said it projects Padenga’s revenue to amount to $44,18 million in full year 2019 with $29,06 million stemming from Nile skin sales and $11,61 million from local trading. “However, we anticipate some upside to our fore- casts given medium term plans to increase capacity in both the alligator and crocodile operations,” the com- pany said. IH noted that Padenga’s revenue last year was spurred by an increasingly stringent skin market which constant- ly sets a moving target in terms of quality standards. The skin producer posted volume growth of 2,2 per- cent year on year to 44 253 Nile skins compared to 43 313 skins in the comparable period last year. “Furthermore, skin quality in the Zimbabwe opera- tion was negatively impacted by legacy disease issues that emanated consequential to poor quality as Lake Kariba water levels declined as a result of the El-Nino effect,” IH said. Padenga’s performance in its alligator operation in Texas showed signs of improvement as volumes were up 21 percent to 13 500 skins from 11 190 skins in full year 2017. Output increased in response to prevailing market trends in which the demand for medium and large-sized skins is growing. Consequentially, revenue surged 40,3 percent year on year from $30,28 million in full year 2017 to $42,48 mil- lion in full year 2018, with the Zimbabwe crocodile op- erations contributing $39,23 million, 92 percent of rev- enue which includes $10,46 million from local trading. The group’s Texas alligator operation contributed $3,25 million compared to $1,76 million in full year 2017. [email protected] The Financial Gazette May 9-15 2019 | Page 13 Companies & Markets Equities market picks up in April

Adelaide Moyo ended December 31, 2018 compared to a loss of $689,401 Business Reporter recorded in the comparative period. MedTech gained 55,56 percent — the stock has outper- HE Zimbabwe Stock Exchange (ZSE)’s mainstream formed every other counter on the market after gaining 350 index picked up significantly in April, gaining 64,30 percent. Tpercent in turnover to $116,33 million, mainly on the Shares in the company, which sells consumer goods, back of gains recorded by heavy counters. medical supplies and light industrial products, opened the Average daily trades of $6,12 million were realised year at $0,0002 and closed the first quarter at $0,0009. during the month. African Sun was up 53,67 percent. The Industrial Index, which was subdued for two con- The hotelier recorded a 110 percent increase in profit to secutive months in March, dropping 17,95 percent to 405,57 $ 10,135 million during the year ended December 31, 2018 points, gained 10,09 percent to 446,52 points buoyed by compared to $4,816 million achieved in prior period driven gains in Delta, up 22,75 percent and Cassava, up 0,86 per- to trade on a positive trajectory with activ- losses recorded in Falgold down 13,25 per- by both an increase in prices and volumes. cent, offsetting a 0,21 percent loss in Econet. ity increasing amongst the mid and heavy cent and Bindura, down 1,95 percent. Edgars was up 30 percent while Simbisa gained 29,02 The most significant contributions to total value trad- caps,” research firm IH Securities said. The All Share Index rose 9,05 percent percent. ed during April were Old Mutual, Delta Corporation, and The market strengthened in the month to 133,70 points while the Top 10 Index in- Notable losses were registered in Fidelity Life, down 20 Econet Wireless, contributing 31,72 percent, 21,72 percent of April, gaining 8,55 percent to close the creased 10,18 percent to 127,70 points. percent, First Mutual Limited, down 19,67 percent. and 9,18 percent, respectively. month at a total market capitalisation of The month’s top gainers were Turnall, Other losses were recorded in National Tyre Services, Total volume traded increased 8,96 percent to 134,43 $17,45 billion. up 56,36 percent. which was down 19,44 percent, National Foods, down million shares. Meanwhile, the Mining Index dropped The buildings materials producer 18,43 percent and Lafarge, down 17,29 percent. “During the month of April, the stock market continued 3,87 percent to 186,50 points on the back of achieved a $3,836 million profit for the year [email protected] General Beltings fails to service order book Nelson Gahadza Business Reporter

ENERAL Beltings (GB) says it failed to deliver on order books from key customers last year due Gto foreign currency shortages to import critical raw materials. This comes as the sole manufacturer of conveyor belt- ing in Zimbabwe has over the years faced stiff competition from cheaper imports as well lacked working capital, which turned the company into perennial losses. Godfrey Nhemachena, GB’s chairman, however, said despite persistent economic challenges, the company was focused on improved value chain and operational efficien- cies. “An acute shortage of foreign currency limited the com- pany’s ability to deliver on the order book from key cus- tomers. As a result, the outstanding orders at year end were carried over into the ensuing year,” he said. He also noted that the advent of new monetary measures in the last quarter of 2018 compelled the business to remodel in order to preserve value and create capacity to import raw materials. In 2017, GB secured a technical partner called NUVO from South Africa, which provided a R5 million facility for working capital, reliability of equipment and order turn around. The facility had a 60 day window account which allows for bulk procurement of raw materials. Nhemachena said notwithstanding curtailed activity in the last quarter of 2018, turnover at $4,74 million was line with prior year’s $4,75 million with both divisions comple- menting each other He said during the year, the company defended its mar- ket position through delivering a commensurate value prop- osition to its customers underpinned by improved operation- al efficiencies. Volumes at the Rubber division dropped 11 percent to 257 metric tonnes compared to 289 metric tonnes due to foreign currency constrains for raw materials procurement. “Owing to the need to realign the business with the new operating environment there was limited invoicing despite a firm order book. The strategic partnerships enable the di- vision to compete in the industry as improved efficiencies reduced costs and turnaround time,” he said. The GB boss noted that unit’s turnover at $2,3 million was a reduction of 17 percent from prior year’s $2,77 mil- lion as orders were carried over into the ensuing year. Turnover at Cernol, the chemicals division, increased 37 percent to $2,42 million although volumes declined 16 per- cent due to a favourable product mix. “The performance was underpinned by market consoli- dation in the traditional markets and benefits from the tech- nical partnerships. Operating costs increased 23 percent due to partial reinstatement of the wage cuts in compliance with statutory requirements,” he said. Nhemachena said renewal of technical partnerships in the year and existing synergies within the company are ex- pected to deliver improved performance in 2019. However, during the year under review, group oper- ating expenses at $1,72 million were three percent above prior year’s $1,65 million despite inflationary pressure on expenses and partial reinstatement of salary cuts in the last quarter of the year. “As a result, an operating loss of $323 000 was recorded against a prior year operating profit of $6 000,” he said. [email protected] Page 14 | May 9-15 2019 The Financial Gazette Companies & Markets Lunar Chickens plans rebound ORMER Reserve Bank of Zimbabwe governor Eggland — is targeting to be the largest table egg pro- Gideon Gono says his chicken business — Lunar ducer in Zimbabwe and take control of over 60 percent FChickens (Lunar) — will soon reclaim its market of the market share. share after injecting fresh capital into the venture. Gono said Eggland is the first and only company in Lunar, which at its peak was producing about 500 the country to have automatic egg collecting machines. 000 birds a week, has over the past years scaled down It is also the only agro-based company with modern high operations in line with the country’s harsh economic en- rise poultry houses and it is gaining tremendous popular- vironment. ity in Zimbabwe under the banner of Lunar Chickens. In 2013, the integrated chicken firm dreamt of listing “Looking ahead Eggland will introduce several new on the Zimbabwe Stock Exchange and expanding opera- products on the market to compete well in the global tions into regional countries. market. It will also continue to invest in new technology Gono said the scaling down of operations was part of in order to produce table eggs of the highest quality. a preservation strategy. “This will make Eggland the most efficient and the “The slowdown was temporary and part of a deliber- producer of the highest number of eggs nationwide to ate retreat strategy akin to a rose-flower farmer pruning nourish a growing population,” he said. his flowers in order to prepare them for greater bloom The group’s meat processing unit, Meatland, com- and yield. Lunar Chickens will become what it is intend- prises of seven state-of-the-art chicken houses with each ed to be — a national giant of regional and continental At its peak, Lunar Chickens produced about 500 000 birds a week. having a holding capacity of up to 40 000 birds. proportions,” he said. “Our vision for the future is to have 16 more houses Lunar, which has several certifications, including they are producing lesser eggs from their atrice and Goromonzi areas, while the constructed at Omega Farm soon. With the additional the Halaal seal of approval, operates from several sites, Buhera, Mutare, Beatrice and Norton broiler meat operations are situated in the houses, the number of the broilers we produce will in- ranging from rural areas to farms and peri-urban plots. sites. Shamva/Mutoko area, Ruwa, and other crease from 346 000 to 666 000. That is our dream at On a combined scale, the firm has a total capacity Their breeder flock and hatcheries are provinces via outgrower programmes. Meatland,” Gono added. — Business Reporter for 400 000 table eggs a day but due to feed constraints located around Borrowdale, Harare, Be- Lunar’s egg-hatching division — [email protected] ZPI eyes higer earnings

Nelson Gahadza Business Reporter

IMRE Property Investments (ZPI) says it is eyeing a return to profitability through earn- Zings generated from its $15 million Sawanga mall project and resumption of stand sales. This was after the listed property developer re- corded a loss of $1,42 million during the year ended December 31, 2018, compared to a profit of $2,49 million in 2017. Jean Maguranyanga, the ZPI chairperson, said the Victoria Falls-based Sawanga mall and conversion of Nicoz House in Bulawayo projects are expected to start earning revenue soon and will have a bearing on company’s profitability. “The mall will provide approximately 5 000 square metres of retail space. Letting of the space is 90 percent complete,” she said. On the other hand, the conversion and refurbish- ment of NICOZ House Bulawayo to student accom- modation is complete and the facility has started ac- cepting students. Maguranyanga noted that the company reduced stand sales, which is a key revenue contributor, re- sulting in lower revenues. “In order to manage risk precipitated by market uncertainty, the board took a deliberate decision to slow down project sales during the year under review. The company has significant stand stocks and sales performance is anticipated to be enhanced in future,” she said. Zimre Holdings Limited (ZHL), the major share- holder in ZPI, last year took a deliberate decision to realign ZPI’s investment portfolio which was skewed towards office space in the central business district (CBD). This resulted largely from challenges facing the property sector which included rising voids as ten- ants continued to reduce occupied space. “There was also rapid erosion of rental revenues due to inflation and the contractual nature of leas- es made it difficult to immediately adjust rentals,” Maguranyanga said, adding that rental performance tracked the performance of the economy and re- mained in line with budget, closing the year at $2,2 million. “The average portfolio voids rose from 26 percent in December 2017 to end the year at 33 percent and the increase was due to evictions for non-payment and voluntary surrenders of leased space,” she said. During the year under review, average collections were 106 percent of total charges and compared well with prior year’s 107 percent, whilst debtors declined 11 percent compared to prior year. As a result of low rental income, the company’s revenue declined 24 percent to $4,03 million from $5,27 million during prior year largely due to decline in rental income by 21 percent to $2,2 million from $2,78 million in 2017. Stands sales were at $1,42 million in 2018, com- pared to $2,49 million during the previous year. Maguranyanga said the company’s shopping mall is nearing completion and scheduled to open for trad- ing this month. [email protected] The Financial Gazette May 9-15 2019 | Page 15 Companies & Markets Willdale to increase output Adelaide Moyo “Willdale is closing the gap between and pricing strategies, the company was accumulated from unpaid Preference Share dividend. Business Reporter volumes and sales. In March, we were now debt free after using proceeds of a The dividend has been accumulating since 2014 when around 24 percent behind prior year but land sale last year to offset its outstanding the preference shares were issued but the company did ILLDALE says it is targeting to increase its as of now we are just around 10 percent obligations. not have capacity to meet the semi-annual preference capacity utilisation to 90 percent this year after behind last year so we are slowly closing “The land was sold at $11,3 million dividend obligations. Winvesting in new bricks that substitute imports. that gap,” he said. against an indicative value of $4,5 mil- Priority three of the obligations was $3,25 million re- This comes as most companies are reeling from foreign He indicated that the situation was due lion at the time of approval. All targeted demption of Preference shares. exchange shortages, which have negatively affected out- to mismatch between disposable incomes debt has since been repaid, as a result, The company issued 10 percent redeemable cumula- put and forcing them to operate below optimal capacity of clients and prevailing prices brought strengthening the balance sheet and im- tive preference shares in 2014 through a rights issue to utilisation. through by a difficult economic environ- proving profitability,” he said, adding shareholders. Nyasha Matonda, Willdale’s chief executive, said ment. that excess funds amounting to $4 million The shares were redeemable from last year to year material used to manufacture the new bricks is procured Matonda noted that while the listed were invested in a housing development five and subject to agreement with the holders ofthe locally hence cutting more costs. brick manufacturer had its fair share of project. preference shares. “Right now we are operating at 80 percent capacity challenges in the period under review, Prior to settling the debts, Willdale’s Willdale has intention to delist the preference shares utilisation and with the new bricks we call Topaz Bricks profitability was ahead of target due to exposure included a $2,68 million interest from the shareholders’ register by end of 2019. we see our capacity utilisation going up 90 percent. We various cost containment measures. bearing bank loan and overdraft owed to Last month, Willdale requested for the termination of are also looking at increasing our sales volumes,” he said. The Willdale boss also indicated that CBZ Bank. The loan had been accruing listing of the Preference shares following the redemption Matonda said the brick producer’s current sales vol- although the firm was affected by run- interest of 10 percent per annum. of 99,74 percent of the ZSE listed 10 percent semi-annual umes are above its targets although sales are still behind. away inflation, which impacted on costs The other obligation is the $863,283 redeemable preference shares. [email protected]

AirZim has slowed down the hunt for a strategic partner for the national airline to allow for a debt assumption process to be finalised. AirZim shelves privatisation

IR Zimbabwe (AirZim) administrator Reggie Saruchera says he has slowed down the hunt for Aa strategic partner for the national airline to al- low for a debt assumption process to be finalised. The Grant Thornton Zimbabwe founder, who was ap- pointed by government to administer the revival of the struggling national airline, said Air Zimbabwe was sad- dled with a total debt of $380 million of which $30 mil- lion is owed to foreign creditors and talks with Treasury to settle the debt assumption process were on-going. “Engagements are currently underway with the Min- istry of Finance and Economic development to finalise on the debt assumption process. It has become neces- sary to alter the timelines of the coming on board of a strategic partner to allow for the debt assumption pro- cess to be finalised,” he said. Of the $380 million debt, $292 is owed to nine gov- ernment related institutions and the debt assumption is a pre-requisite to the turnaround of the airline and the coming on board of a strategic partner. The troubled airline is among dozens of state-owned firms that are set to be partially or fully privatised as the government seeks to cut its fiscal deficit. “Engagements with potential strategic partners and investors are currently underway to enhance future sus- tainability and competiveness of the airline,” Saruchera added. As part of its turnaround process, a strategic plan has been developed for adoption and development and as a result the airline received one Embraer (ERJ 145LR) as part of the implementation of the reconstruction process. “The aircraft will be deployed on domestic and re- gional routes upon completion of the necessary registra- tion and regulatory approvals,” he said. Saruchera noted that the airline will also be receiving two B777-200ER planes acquired from Malaysia within the next six to eight weeks. “Air Zimbabwe has been operating inappropriate air- craft by using wide body aircraft for short haul flights Official Media Partner instead of narrow body aircraft. The acquisition of the short haul Embraer aircraft and two medium range air- craft will enable Air Zimbabwe to develop domestic and regional route network. One of the medium range aircraft will be dedicated for charter services and relief flights,” he said. Also the airline awaits government’s approval on the disposal of redundant aircraft equipment and obsolete spares to allow the airline to raise capital for the acquisi- tion of additional aircraft and working capital. — Busi- ness Reporter [email protected] Page 16 | May 9-15 2019 The Financial Gazette Motoring

VW's Amarok has aged remarkably well On the trail — Amaroks dismissed the rough stuff with aplomb

Amaroks taking a rest in the Mbombela shade The “author’s” Amarok preparing to tackle the speed section Time for some wolf talk ...how VW’s V6 Amarok eats up inhospitable terrain

Spirit of Africa Trophy. bigger-engined competition. surfaces Mbombela can muster and ous nature of the course that demand- The South African winners get I’ve also established for myself, in discover whether a V6 mated to an ed speeds little higher than a crawl, to compete against top teams from the real world, that the relatively small 8-speed auto driving all four wheels the smooth V6 never showed any southern Africa and from other parts engine, especially mated to an 8-speed (dubbed 4MOTION) without the aid signs of getting hot around the collar. of the globe in the quest to win the gearbox, does a fi ne job of dismissing of low ratio can really come out smell- Once we’d got past the loose and International Spirit of Amarok com- almost everything that stands before ing of pine cones. rocky ascent stages, we were un- petition. it, including the bucket-load of ru- We started on the Technical Sec- leashed on smoother but still narrow The venue for the preliminaries mours articulated by non-believers. tion which is a euphemism for rocky and mildly sinuous dirt road “Speed TOP GEAR with varies each time but the one constant But then came an additional weap- tracks and washaways marked out by Sections” littered with closely-placed Richard Wiley up to now has been the weapon used on from the Wolf’s castle that really navigation posts set so close togeth- marker posts that had to be negotiated to conquer the rough stuff, VW’s 2.0 got tongues wagging in the outer er that only millimetres of clearance without clipping any part of the body- HERE can hardly be a person litre Amarok. reaches of Mzansi — the VW Amarok existed either side of the large wing work. alive who is not aware that This year, a signifi cant change 3.0 V6 complete with up to 180kW mirrors. This was more my territory as the Wolfsburg (wolf’s castle) is the has seen the much-acclaimed 3.0 V6 and enough torque (up to 580Nm) to Hitting the posts incurred penalty deliciously smooth and sonorous V6 T Amarok pressed into service and it move mountains. point deductions as did failure to exit could be given some welly and the tail home of Volkswagen but how many know the origin of the model name was this version that us pen-pushers Now, the once-maligned 2.0 ver- each chosen course in a tight, speci- could be hung out to a certain extent! Amarok? utilised in tackling a big part of the sions had some serious support and fi ed time frame. I could sense Oom Mild drifting and fairly heavy brak- There’s some debate on the matter course that will be home to all those big brother soon set about establishing Sarel licking his lips as the less ex- ing were the order of the day on these but it seems the name is derived from teams competing in the main compe- its credentials by running (admitted- perienced off-roaders, of whom I am sections — together with precision a gigantic grey wolf in Inuit (people tition. ly somewhat irrelevant) 0-100 km/h one, collectively looked a little daunt- placement, of course — and here the indigenous to Alaska/Greenland) my- Now I’ve set the scene, let me add times some 3 seconds or more, faster ed by what lay ahead. Amarok excelled. The slightly off-set thology, said to stalk and devour any a few words about the Amarok which than four-cylinder opposition of simi- In place of reduction gearing, the positioning of the rear leaf springs person foolish enough to hunt alone at in its early years on sale in Mzansi lar displacement. The factory claims 8 Amarok’s smooth 8-speed auto has confers advantages in terms of cush- night! was the target of a lot of misdirected seconds FLAT but independent testers a very low fi rst gear. In combination ioning too much vertical movement, I raise all these issues because I baloney coming from long-time (com- are regularly recording times in the with more closely stacked ratios fur- but in an unladen state even an Am- was recently part of a press contingent petitive) bakkie users who propagated mid-7s. ther up the scale, and with rear diff- arok will feel a touch wayward at the invited to take part in the Spirit of the belief that there’s “no replacement My own experiences reaffi rmed lock engaged, the torquey V6 was rear when pressed hard. Amarok Media Challenge, a concen- for displacement.” the effortless thrust provided by a largely unperturbed by all the obsta- For an amateur off-roader like me trated one-day event using much of a In the simplest of English, they diesel-slurping motor that actually cles thrown at it and surmounted large — and my partner — the Technical testing Mbombela off-road course de- were saying that there was no way a sounds rather pleasant while it goes rocks and loose gravel with surprising Section in particular was something vised by motorsport legend Sarel van 2.0 bakkie could possibly compete about dismissing gradients and cruis- ease, albeit that my co-driver did get of a challenge but as they say in the der Merwe for the ongoing Spirit of on equal terms with bakkies sporting ing like the best of the SUV brigade caught out through no fault of his own classics, you never stop learning. Africa Trophy. motors of 3.0 litres or more. They also that are laden with much higher price by a large rock displaced by the Ama- I certainly learned that the V6 This off-roading event has been said that without low ratio, the VW tags. rok immediately in front of us. Amarok is not just an accomplished hosted by Volkswagen Commercial would stand no chance when the go- So, shall we say that VW unques- Our collective lack of experience open road cruiser — something I ex- Vehicles for many-a-year and as far ing got really tough. tionably took the high ground as far as off-road drivers meant we weren’t perienced on the launch of this model as the SA market is concerned, it’s Well I’m no mud-plugger myself as on-road manners and pace are con- in line for any prizes, but the real point — but also an amazingly effective off- open to enthusiasts who have a de- because I’m not too partial to getting cerned and for now, let’s not get too of the Technical Section exercise was road tool as well. sire to test and show-off their rough paintwork dirty but I’ve seen enough worked up that the Amarok’s load to demonstrate that the V6 Amarok In particular, the absence of reduc- road driving skills over 21 elimination on-line video material to establish that box is wide enough to accommodate without reduction gearing will deal tion gearing was not noticed as my rounds. Some 420 teams are eventu- the 2.0 TDI in the Amarok more often a Euro pallet. with obstacles beyond the bravery of ability and my bravery levels are far ally whittled down to 20 hardy souls than not wins drag races and towing Rather, let’s get back to the matter most drivers. exceeded by what this “Wolf of the who compete in VW Amaroks for the contests against more established, of driving this machine on the nastiest I also noted that despite the tortu- Wilderness” can actually do. The Financial Gazette May 9-15 2019 | Page S1

Celebrating a golden past, a diamond future AM genuinely pleased to join you on this momen- said his administration is open for business and dia- tous Golden Jubilee ― an event which looks back at logue. As such, it is important for media to align itself a distinguished past, and ahead to a daunting future. with national goals. Zimbabwe is for all of us and we I Monica Mutsvangwa, Information, Publicity & Broadcasting Services Minister, address- As government we would like to congratulate the organ- should be responsible enough to report accurately and isation for attaining 50 years of excellent service and To Page S3 ing guests at The Financial Gazette Golden Jubilee celebrations in Harare last week. may you be granted more wisdom to continue operating for more years ahead and contribute towards the growth of the nation. The presence at this auspicious event of various gov- ernment officials, business leaders and stakeholders is of paramount importance to me personally and for our country. For there is no doubt that relations between govern- ment, business and the media are central to the future of Zimbabwe, challenging and exasperating as that experi- ence at times may be. The media disseminates information, news, analysis and commentaries. It influences and shapes public opin- ion. Hence, ideally, its commercial interests should con- verge with the national interest. The media also provides an important channel for government and national lead- ers to communicate with the people, and by reporting key events as they occur, the media serves as an author- itative record of a nation’s historical moments for future generations. The media, therefore, occupies a privileged position in society. Editors and journalists should shoulder a heavy mor- al and social responsibility beyond that of the CEOs and executives of other commercial companies. As a business, I am heartened that The Financial Ga- zette has overcome many severe challenges from Rhode- sia to Zimbabwe, and continues to excel. When the newspaper was launched in 1969, its via- bility was not assured. Today, The Financial Gazette’s readership has grown significantly to include, not only captains of industry, but also the academia, students and the informal sector. The paper’s website attracts over one million visitors per month, leading the publisher to claim that the ‘Pink Paper’ is Zimbabwe’s most widely read business and fi- nancial newspaper. This is something to be proud of and of course reason to celebrate. Since its establishment 50 years ago, at the peak of Ian Smith’s Unilateral Declaration of Independence, The Financial Gazette has consistently and profoundly shaped the financial and economic discourse of Zim- babwe. No think-tank, institution or university has so consistently and so successfully captured and refined the way business and industry think about this country. It is also critical to note that The Financial Gazette is celebrating 50 years at a time government has opened up the airwaves and has made the environment more conducive for journalists by making concerted efforts of repealing AIPPA. As government, we sincerely hope Modus Media will take advantage of the opening of the airwaves to grow its media portfolio and create jobs for thousands of our young people who are graduating at our national univer- sities and colleges. It is encouraging to note that in recent years, The Fi- nancial Gazette has reverted back to its original objec- tive of being a truly financial newspaper. The paper’s tone may sometimes be light but its purpose is always serious: how can our county be better, today, tomorrow, next week, next month and in 2030. While the paper has long had a consistent perspec- tive, it has barracked for causes rather than party. It has promoted issues rather than individuals and the editorial line has never precluded well-argued dissent. Anyone seeking arguments against ― as well as for ― a price on fuel, support for industry policies as well as criticism of it, evidence against government spending as well as in favour of it and the case for smaller rather than bigger government would have found these in The Financial Gazette and, often enough, only in The Finan- cial Gazette. I am happy to report that government over-expendi- ture is now a thing of the past. And as we rebuild our economy, it is critical that the media fully understands what government is doing to achieve its 2030 vision of achieving upper middle-income status. President Emmerson Mnangagwa has consistently Page S2 | May 9-15 2019 The Financial Gazette The Financial Gazette FINGAZ@50 SPECIAL FEATURE May 9-15 2019 | Page S3

Guest speaker Tafadzwa Chinamo, Securities and Exchange Commission of Zimbabwe, CEO.

Introducing the guest of honour, Information, Publicity & Broadcasting Ser- vices secretary Nick Mangwana.

Minister Monica Mutsvangwa cutting the birthday cake. A golden past, a diamond future

From Page S1 need to understand what their larger respon- objectively so that our economy can attract sibilities entail and to demand them of their signifi cant investment fl ows. journalists. Editors and journalists must have Theodore Roosevelt, the 26th American high personal integrity and sound judgement President, once said: “The power of the jour- ― people who understand Zimbabwe’s nalist is great, but he is entitled neither to re- uniqueness as a country, our multi-racial and spect nor admiration because of that power, multi-religious make-up, vulnerabilities and unless it is used right.” national goals. Newspaper editors must always be mind- By this, I mean that our editors and jour- ful of the powers wielded by their pens or nalists must be men and women who know nowadays, keyboards. They have a greater what works for Zimbabwe and how to ad- responsibility to society than merely publish- vance our society’s collective interests. I do ing a sensational story, scooping the news or not know what our young journalists learn in turning in a bigger profi t for shareholders. their university courses but having our me- There are larger national and societal inter- dia play the role of the fourth estate cannot ests at stake. I suppose that is what Roosevelt be the starting point for building a stable, meant when he said that journalists should secure, incorrupt and prosperous Zimbabwe. use their power in a proper way. The starting point is how to put in place a Reputable international news organisa- good government to run a clean, just and ef- tions also face this consideration every day. fi cient system. Although their conditions may be different, Our editors and journalists must work foreign editors have also exercised restraint for the public good in a practical rather than and censorship when necessary. idealistic way. Thy must report the news and To that end, I would like to emphasize the present viewpoints with the aim to educate point that Zimbabwe needs a media model and inform without pursuing personal or where the players practise press freedom political agendas. Capturing readership is an in a responsible way. I also hasten to add important goal but to do so through sensa- that should a national crisis such as foreign tional coverage is not the right way. currency and fuel shortages or an avian fl u Opinions and analytical pieces on salient epidemic occur, our media should not go issues are important for giving readers vary- for the sensational. It should exercise judge- ing perspectives. However, editors should ment and cover unfolding events sensitively take a balanced approach so as not to allow and in a manner that informs, educates and the commentary and opinion pages of their unites, not divides our people. newspapers to refl ect only biased or parti- Do not get me wrong. I do not favour a san views. More importantly, news should subservient press. An unthinking press is not not be slanted to serve a hidden agenda. The good for Zimbabwe. But press freedom must media is free to put across a range of worthy be practised with a larger sense of responsi- different viewpoints to encourage construc- bility and the ability to understand what is tive social and political discourse. It should in or not in our national interests. Editors not parrot the government’s position. Page S4 | May 9-15 2019 FINGAZ @50 SPECIAL FEATURE The Financial Gazette The advertiser is King

Edwin Vengesa

HE Financial Gazette’s marketing team is delight- ed to share in the joy of this golden jubilee with its Timportant stakeholders – the advertisers. For years, we have been pacesetters in the advertising market, achieving record-breaking paginations through the support of our loyal advertisers. For The Financial Gazette marketing team, the ad- vertiser is King, and the advertising agencies are equal- ly treasured in this journey. Without their support, we would be poor. Our organisational culture promotes teamwork and hard work, with the team below having been behind the advertising wheel of the most respected fi nancial publi- cation in Zimbabwe. Our longest serving team player is Christobel Washa- ya, also known as the ‘Iron Lady’ because of her suc- Precious Mazhambe, Fingaz sales executive Fingaz sales executives Susan Mapininga (left) and Christinah Machaka. cessful golfi ng exploits over the past 40 years. Chris- tobel has been with The Financial Gazette for 27 years. Clever Pedzisai is our Matabeleland area manager with 25 years of dedication and service to The Financial Gazette. Susan Mapininga comes in with 21 years of unparal- leled service to The Financial Gazette. Frank Nyandoro and Edreck Mudzinganyama have uprightly fl anked the department for 15 years each, in the process imparting institutional knowledge to the new generation of marketers at the company. Christinah Machaka and Precious Mazhambe have been with the company for 10 years and seven years re- spectively. Linda Tito is our all-rounder who has been supportive to both production and marketing personnel for the past 13 years. Clive Chinaka, Tongai Masimba and Valentine Jafi koni are our latest additions to the team and have added diversity to the group with their new-age view to marketing. Kerina Chizemo recently joined the company to lead our events department, which is responsible with coor- dination of conferences and other events. We recently lost a cherished member, Chengetai Boroma, who had loyally served the company for over two decades. May her soul rest in peace. I have fi ve years with the company and am proud of the role I have been given to be a team leader. I work under the guidance of the general manager, sales and marketing, Lewis Chikurunhe. The team has developed strong relations with stake- holders and is united towards the attainment of its mis- sion and targets. At The Financial Gazette, we live by our values ev- ery day. These values promote service excellence, or- ganisational success and ethical leadership. As we propose a toast to our golden jubilee, we once again thank our valued stakeholders for the support as we look forward to enhancing our relations. To The Financial Gazette leadership, we salute you for proving a conducive environment which has enabled us to deliver positive results even under challenging eco- nomic conditions. On behalf of the advertising team I congratulate The Financial Gazette and its stakeholders for attaining 50 years of news excellence and I am convinced that to- gether we will continue leading and positively infl uenc- ing Zimbabwe’s economic narrative.

Edwin Vengesa, Fingaz brand executive-advertising The Financial Gazette FINGAZ @50 SPECIAL FEATURE May 9-15 2019 | Page S5 Thank you for the support, Fingaz @50

Pilate Machadu online products such as Business Live, Fingaz e-paper and mobile news among others to meet our customers’ E at Modus Media are humbled and honoured ever changing demands. today to celebrate The Financial Gazette’s The Financial Gazette has been the gold standard in 50th Anniversary. It is a wonderful journey business and financial journalism for 50 years and we W intend to do the same for the next 50. However, we could that began in April 1969 when the first issue of the iconic Pink Paper hit the streets. not have achieved this significant milestone without the The Financial Gazette grew over the years and dis- contribution of both past and present staff. I want to tinguished itself as a trusted source for business news thank our dedicated, hardworking and selfless staff who and economic insights and it continues to set the trend continue to give their best under the current harsh and in positioning local businesses and the nation for glob- challenging economic environment, I salute you. al capital. We have gained a reputation for in-depth and To all our various stakeholders including readers, fi- authoritative business and financial news reportage that nancial partners and advertisers who have been with us is anchored on providing timely, accurate, fair and bal- all these years, we are indeed grateful; and we look for- anced news. ward to even better collaboration and partnerships to our Owned by Zimbabwean investors, the weekly news- mutual benefit. And in this regard let me say a big thank paper jealously guards its editorial independence and you for your exceptional support and for believing in us. supports free market policies that enable both local and I also want to thank all the various authorities for international businesses to thrive in our economy. their continuous efforts to create a conducive media en- During our 50 year history, much has changed, es- vironment. pecially with the digital disruption of recent years. But Pilate Machadu, Modus Media CEO I thank you. there are some crucial constants — the quality of our journalism and the innovation we have brought to bear in adapting to the changing demands of our readers and in creating a dynamic multi-channel business. As we cel- ebrate 50 years, we have converged our content for the benefit of our readers and advertisers. We now operate a multi-communication platforms which include our re- vamped subscription based world class website (www. fingaz.co.zw), a daily email news platform (Business Live), an e-version of the newspaper accessible via our website, as well as our theme based reports. Serving a new generation, a new kind of audience with its changing taste and character is quite a task. And, for all these 50 years, we have loved that challenge and this has seen us coming up with more subscription-based Fingaz long serving members

Peter Sodzayi (left) receiving his 29 years of service certificate from Information Minister Monica Mutsvangwa.

Wendy Tauya (right) receiving her 29 years of service certificate.

Christobel Washaya (centre) has served The Financial Gazette for 27 years. Page S6 | May 9-15 2019 FINGAZ @ 50 SPECIAL FEATURE The Financial Gazette Fingaz @ 50 celebrations in pictures The Financial Gazette FINGAZ @50 SPECIAL FEATURE May 9-15 2019 | Page S7

Pictures by Freedom Mashava Page S8 | May 9-15 2019 The Financial Gazette The Financial Gazette May 9-15 2019 | Page 17 Column 26p.c. of workers faked sick leave in 2018

HERE are various types of leave that are have it on paper only and it would want to know why an assessments should not be just about how normally provided by employers. Some of the is never implemented. If you employee wants leave in the many employees took sick leave. Employers Tleave types are statutory and others are non- look at the leave liability of first place. Some reasons are need to go beyond that. You need to study statutory, that is, they are provided at the goodwill these organisations, it will be personal and should be none of the patterns, timing, etc. Correlate it to of the employer. Examples of statutory leave are so high. the manager’s business. other variables and outcomes like employee vacation leave (also referred to as annual leave), l The culture of encashing The primary issue here is engagement, industrial relations cases and special leave (that covers compassionate leave), leave is perpetuating a one of promoting work- life business performance. sick leave and maternity leave. Non-statutory leave terrible culture. Employees balance. Both employers and This interrogation of the patterns and examples are study leave and paternity leave. would rather fake sick leave employees need to rethink their relationships could provide valuable We have noted general misconceptions and abuse than take their vacation leave perceptions and approaches to insights into your organisation’s culture and of some of these leave provisions. Of particular days. HR Perspective encouraging this balance. Work is human resource management practices. concern is sick leave and special leave. We recently l Lastly, management with evolving and both employers and Overall, there is a big problem here that undertook a survey to assess the prevalence of misuse style. Some supervisors Memory Nguwi employees need to change with individual companies need to assess. If you of sick leave. Our findings were quite revealing. A and managers micromanage it. Employees should take leave. leave this unattended you may be sitting on total 634 Zimbabwean employees participated in the employees so much that they create With the rise in non-communicable diseases a culture and productivity time bomb. survey. an unnecessarily hostile and secretive and the increasing incidences of distress, Participants were drawn from over 20 economic environment. In these organisations, if depression, anxiety and somatisation, the l Nguwi is an occupational sectors. Most participants were from the financial employees ask for vacation leave, they are importance of rest cannot be overstated. psychologist and managing consultant sector (18,6 percent) with petro-chemicals having the interrogated on the reasons why they want Employers need to religiously track the with Industrial Psychology Consultants. least participants (0,5 percent). this leave. One wonders why managers prevalence of sick leave. However, the He writes in his personal capacity. We focused on the prevalence of faking sick leave in 2018 specifically. This was the baseline Employees aged survey. 34 years and be- A total 26 percent of “ low are more like- participants said they ly to fake sick leave faked sick leave in compared to those 2018. If we use these aged 35 years and findings as reflective above. According to of the general working this survey, female em- population, it would ployees are more likely suggest that in 2018, to fake sick leave com- at least one in every pared to male employ- four Zimbabwean ees. When we asked employees faked sick participants why they leave. This is a high faked sick leave, 60,47 occurrence. percent said they did We found that so to attend job inter- age, gender, level views, 50,39 percent of employment and said they faked illness remuneration were because “they were correlated with faking just tired,” 20,93 per- sick leave. A logistic cent did so “to have regression model was time to themselves,” used to determine the factors that predict an and 5,43 percent to employee’s likelihood deal with an “alcohol to fake sick leave. We induced hangover.” found that age and gender were significant predictors in the logistic regression model. Employees aged 34 years and below are more likely to fake sick leave compared to those aged 35 years and above. According to this survey, female employees are more likely to fake sick leave compared to male employees. Using the logistic regression model, there is a 17 percent chance that an employee will fake sick leave without considering any explanatory variable. When we asked participants why they faked sick leave, 60,47 percent said they did so to attend job interviews, 50,39 percent said they faked illness Happy 50th birthday to the Financial Gazette. because “they were just tired,” 20,93 percent did so “to have time to themselves,” and 5,43 percent to Celebrating a Golden past to a Diamond future. deal with an “alcohol induced hangover”. On average, in 2018, participants requested a Wishing you all the best in future years. total of nine days of fake sick leave. The average remuneration for employees who participated in this survey is $2,310.50 per month. If we use the average From the Board, Management and Staff of salary information and average number of days that employees fake sick leave per year to calculate the Associated Newspapers of Zimbabwe. dollar value of prejudice that employers incurred, it will translate to $258,479,674.45. This is in salaries alone. If we add productivity lost, the amount would be significantly higher. Before apportioning blame and concluding that this problem lies squarely with employees, it is Congratulations important to perform a root cause analysis. In our work with various clients we have noted four main problems pertaining to the management of vacation leave. We believe that this poor management of vacation leave (in particular) and toxic organisational cultures may help explain the high prevalence of faking sick leave. These are the four main issues that concern us: l People (employers and employees) take taking leave for granted. In some organisations there is stigma attached to employees that take vacation leave. They are labelled lazy and some say “these TELLING IT LIKE IT IS … WITHOUT FEAR.WITHOUT FAVOUR. people act as if they are the only ones that know their rights.” Employees in such organisations may find Second Floor, Bluebridge South, Eastgate Complex, Harare, Tel: +263-4-798820-8 themselves with no other option than to fake sick Website: www.dailynews.co.zw, Bulawayo Offi ces: Suite 101-2 Masiye Business Suites leave if they want to rest or deal with their personal issues. (Princess Flat), Fort street/9th Avenue, Bulawayo, Tel: (09) 75270 l Leave is poorly administered. Some organisations do not have a leave plan at all. Others Page 18 |May 9-15 2019 The Financial Gazette Column Is 2 p.c. tax deductible for 2018? HERE has been much debate about from tFebruary 20, 2019. provides that allowable shall of “any amount of Intermediated Money Transfer Tax the two percent intermediate money The purpose of this article be: “(a) expenditure and losses charged in terms of section 22G of this Act;”. This puts Ttransfer tax (IMTT), much of it is to share my view only and to the extent to which they beyond reasonable doubt the income tax treatment of stemming from its legality. should not be construed to be are incurred for the purposes IMTT. The only contentious issue is from which date The legality of IMTT is now a moot issue legal opinion and which is of trade or in the production it is disallowed because the Finance Act, 2019 has as it has been regularised through the Finance more fully explained below. of the income except — (i) not provided for the effective date of application of Act, 2019. What is at stake, however, is its Finance minister Mthuli to the extent to which they the law. Section 132 of the Constitution provides as deductibility for income tax purposes and Ncube introduced IMMT are expenditure or losses follows: “An Act of Parliament comes into operation this article seeks to provide insight into the in 2003 and revised it from of a capital nature; or (ii) at the beginning of the day on which it is published in possible interpretation of the law regarding fi ve cents per transaction expenditure that constitutes the Gazette, or at the beginning of any other day that this matter. to two cents per value prepayment for goods, services may be specifi ed in the Act or some other enactment”. It is clear that the Finance Act, 2019 of transaction effective Tax Matters or benefi ts that will be used This implies that where the Act or regulation is prohibits it as a deduction in the computation October 13, 2018. Since the with up in any subsequent year of silent regarding effective date of the law, the date of of income tax, but the Act is silent on the time the tax was introduced, Marvellous Tapera assessment.” gazetting of an instrument that has created it becomes effective date of the prohibition. This has legislation had been silent Regarding IMTT, it would its effective date of application. The overall effect is resulted in different interpretations within the regarding its income tax deductibility and the satisfy the requirements of section 15(2) that the disallowance of IMTT is through Finance Act, tax and legal fraternity. There is a school of presumption was that it should be allowed as (a), but was specifi ed as disallowed by the 2019 which was gazetted on the February 20, 2019 and thought that appears to suggest that IMTT has a deduction because the law did not specify Finance Act 2019, gazetted on February 20, so is the effective date of its offi cial disallowance. always been disallowed in the computation of that it should be disallowed. Section 15(2) 2019. This was done through a new section Confusion, however, reigns regarding the period income tax, while others of like mind like me (a) of the Income Tax Act (Chapter 23:06) in the Income Act (Chapter 23:06) namely prior to February 20, 2019. In other informal forums, thinks disallowance takes place with effect which guidelines on deductible expenditure section 16(1)(d1), which prohibits deduction word is that ZIMRA is disallowing deduction of IMTT from the period prior to February 20, 2019, on the basis that clause 8 of the memorandum to the initial Finance Bill published is indicative of the intention of the legislature to disallow the amount from the inception of IMTT in 2003. Clause 8 on which this argument is predicated reads as follows: “This clause seeks to clarify that any amount of Intermediated Money Transfer Tax is not deductible in terms of section 16 of the Income Tax Act.” While this argument is persuasive, it is our strong view that the Constitution, being the supreme law of the land, supersedes any other laws. And what is said puts an end to that which is not spoken. To construe that IMTT is disallowed from its inception, in my view, would be an error at law. Another argument that is being thrown into the fray is that IMTT is a tax. This argument is correct because it comes from the defi nition of “tax” in section 2(1) of the Income Tax Act, which reads as follows: “Tax means any tax or levy leviable under this Act.” This defi nition then takes us to section 16 1(d) of the Income Tax Act, which provides for the non-deductibility of a tax on income. However, while IMTT is a tax leviable in terms of the Income Tax Act, it is not a tax on income, which explains why it is being introduced as non-deductible separate of paragraph (d). The only provision where tax was disallowed as a deduction prior to the Finance Act 2019, is section 16 1 (d). Section 16 (d1), which categorically disallows IMTT, was only introduced into law on February 20, 2019. It is therefore our view that IMTT is a deductible amount and this deductibility subsists until February 20, 2019. Taxpayers should separate IMTT incurred prior to and post the gazetting date of the Finance (No. 1) Act 2019, which is February 20, 2019. IMTT incurred prior to February 20, 2019 should be claimable as a deduction while that incurred post February 20, 2019 should be disallowed as it is specifi cally prohibited. Proper records of accounts must always be maintained in terms of the requirements of legislation. Meanwhile Matrix Tax School will be hosting its 2019 Victoria Falls Tax Conference from May 22 to 25, 2019 where this issue, among others, will be discussed . Tapera is the founder of Tax Matrix (Pvt) Ltd. He writes in his personal capacity. SA signs $1bn South Sudan oil block deal

OUTH Africa signed a deal on an oil block in South Sudan as part of a $1 billion investment S in the country emerging from civil war. The countries signed an exploration and production sharing agreement for block B2, the second such contract since South Sudan’s independence seven years ago. The deal will help restore oil output to levels of around 350 000 barrels a day, according to South Sudan Oil Minister Ezekiel Gatkuoth. South Sudan is focusing on increasing crude production by using oil blocks that were halted during its civil war. South Africa in November reached an initial agreement to invest $1 billion in its oil sector. Energy Minister Jeff Radebe said in March the move is part of an effort to secure crude supplies. Total SA held a licence for block B, a 120 000-square kilometre area the size of the US state of Pennsylvania, but ceased activity in 1985, according to the ministry. The government in 2012 split the block into three licences: B1, B2 and B3.- Fin24 The Financial Gazette May 9-15 2019 | Page 19 Column Board’s role in CEO succession HE board’s greatest opportunity to add value to the organisation, appointing the CEO is one of process that includes: organisation is to ensure that it has the right CEO the board’s most critical responsibilities. With lDefining the selection criteria used to select at all times because a misfit will destroy the best of stakeholder relations and reputation management a leader; T l businesses. This makes CEO succession a critical agenda being core components of a CEO’s role, care Knowing insider candidates well so that item for the board constantly. should be taken not to focus exclusively on they are not by-passed; Recently, the CEO of a major pan-African bank the candidate’s ability to take the organisation lAssessing both inside and outside announced their pending departure the following month forward strategically and financially. There candidates thoroughly; after 10 years at the helm. It caught the market, banking should be a fit in terms of the already established lRecognising a faltering CEO early and fraternity, the bank workforce and the public by surprise. culture and values with the new CEO. exiting them with minimal disruption; There was no fiduciary impropriety attributed to the CEO What is the right CEO? One or all of these lProviding formal CEO reviews supported and the board had not prompted the departure. results-led choices are correct: by professional development. The source of worry was that there was no heir apparent Executives Only Corner lStrategic thinker who can create a vision to The board’s responsibilities continue beyond to the CEO because no succession plan had been instituted. with be followed by majority of staff; the new CEO appointment to providing guidance The fallback was to ask a sitting independent non-executive lArtful about handling stakeholders on all and support to help the new CEO become Shepherd Shonhiwa director with considerable banking experience to step into fronts; effective as quickly as possible. Simultaneously, the CEO’s position on an interim basis while a substantive lResults-driven to achieve business plans; the board should also be open to the inevitable incumbent was sought. This is a monumental failure of perpetual conundrum due to each individual and lInclusive leadership style to marshal all changes the new incumbent will introduce. board performance in undertaking one of its foremost organisation being unique, research suggests that resources; “Courage is what it takes to stand up and speak duties to ensure a stable, high performing business. five years on average is a good rule of thumb. lUnderstands sustainable development and for the right” ― ethical leadership principle. Interim CEO appointments bring in their train several Even tougher is for the board to decide on value-creation; l Shonhiwa is a chartered director (SA) unintended consequences such as: what makes the right CEO for the company. In the CEO succession and appointment and has authored books on leadership. He l They create some uncertainty in the highest office in Given the impact the position has on the exercise, the board must develop a guiding writes in his personal capacity. the organisation, which may alarm stakeholders into taking self-protective stances; l Crisis of expectations may obtain from various stakeholders, both internal and external, to the company having different perceptions of what the interim CEO should do for them in that short tenure of office; l By the very fact of being interim the incumbent loses the unlimited clout that they would normally carry when viewed as permanent; l The interim CEO sits in a strategically invidious position where they inherit a corporate strategy which they cannot change and they cannot introduce a long term vision that they will not see through to the end; Therefore, the board ought to be always alert for signs that a CEO has served long enough and must not overstay. One of the most difficult decisions for a board is to decide when a CEO should leave, either for their own good or for the organisation. While there are no easy answers to this Zim to host smartech symposium in June

IMBABWE will next month host a smartech symposium aimed at driving economic growth Zthrough various new technologies. Global Renaissance Investment (GRI), which is organising the event, said the conference will come up with ways to harness technology for economic growth. “Digitisation is the new game in town and it is imperative that the country adopts smart technology to grow the economy,” Ngoni Dzirutwe, the GRI chief executive said. “Most banks have reported profitability in the past year riding on smart technology. This is testament that smart technology reduces costs and boost profits for companies. China and India, currently hubs of technology, are exporting more goods because technology has reduced the costs of production for their companies.” This comes as recent research has shown that the positive impact of smart city technologies on economic development could see cities locking in incremental growth of over five percent and driving more than $20 trillion in additional economic benefits globally over the coming decade. Dzirutwe said it was crucial for Zimbabwe to embrace technology in most facets of the economy to help it achieve its 2030 vision of becoming an upper middle income nation. Biggie Matiza’s Transport ministry recently adopted a smart system at its provisional learning institutes in a move aimed at eliminating corruption and increases efficiency. “The symposium will also bridge the gap between academia and the private sector. Our university graduates needs to be commercially equipped so that the nation becomes self-sustainable in information communication technology (ICT) systems. “Currently, the country is losing a lot of foreign currency to international ICT companies yet we have got a crop of young innovative graduates who needs commercialisation techniques to enable them to compete with international companies. Smart systems enhance production and efficiency,” he said. Dzirutwe noted that Zimbabwe in the long run will benefit from the ICT hubs by being an export hub in the region, attracting forex in the end. The event will run under the theme “Smart-tech the new enabler of economic evolution to achieve the 2030 vision”. Some of the sessions to be discussed are anchoring on smart technology for economic growth and the future of smart tech, establishment of data centres, commercial ICT hubs and innovation centres, fintech, insuretech, digital and mobile banking, social media promotion in marginalised areas and many more. Reserve Bank of Zimbabwe governor John Mangudya, Indian ambassador to Zimbabwe Rungsung Masakui, Postal and Regulatory Authority of Zimbabwe director- general Gift Machengete, Ecocash’s Natalie Jabangwe and Powertel's Propser Mutswiri are expected to make presentations at the event. - Staff Reporter [email protected] Page 20 | May 9-15 2019 The Financial Gazette Column The law favours the diligent creditor

HERE is an old adage that says “the law free electricity at his expense. ty sometime in June 2014, the cover a debt within the prescribed time renders such a debt favours the diligent” and this proverb has As the problem continued to tenant did not take any action “prescribed”. The legal effect is that such a debt becomes Tbeen cited in many judgments by judicial exacerbate, the tenant, out of only to wake up from his slumber extinguished and ceases to exist in the eyes of the law. When officers when dealing with litigants who have set serious concern, instituted a sometime in 2017 and instituted such extinction occurs, the right to pursue the debt naturally on their matters. I make reference to this state- thorough investigation, which a criminal complaint. No civil becomes obsolete, thereby giving a debtor a solid defence ment with particular interest in the subject of pre- led him to discover the theft of action was launched at the mate- in the event of the creditor seeking to recover outside the scription that is provided for in the Prescription electricity by his landlord. This rial time. Nothing came out of the prescribed time limits. Act [Chapter 8:11] (“the Act”). Few are aware pilferage had gone on for more landlord’s criminal prosecution. In the case of the tenant that I have highlighted above, of what debt prescription is all about and this ig- than a decade and the financial The lawyers who represented he had three years from June 2014 within which he should norance seems not to spare even some of those prejudice ran into millions of the tenant were timid and lacked have sued the landlord for compensation for electricity that seemingly sophisticated individuals like one gen- dollars. courage to advise him that his he lost through illegal tapping. He was left without a reme- tleman I encountered a week ago. When confronted with evi- civil claim for compensation for dy on account of ignorance coupled with lack of vigilance He had a dispute with his landlord who, using dence of the theft, the landlord, stolen electricity had long been about enforcements of his rights. some chicanery, had gone on to fleece him of elec- out of shame coupled with ar- Legal Matters prescribed. Section 15 of the Act provides for the various prescrip- tricity through some illegal connection that the rogance, folded up his compa- with The doctrine of prescription tive periods and as an illustration, an ordinary debt gets pre- landlord effected on the tenant’s electricity meter. ny that was in the forefront of VOTE MUZA exists primarily to cajole creditors scribed after three years from the date the cause of action The tenant went on to experience high electric- illegally drawing electricity. It into pursuing their debts timeous- arose. An ordinary loan and/or claim for damages are simple ity bills for several years without understanding simply thumbed its nose at the poor tenant and ly. It is always not ideal for a creditor to sit on his examples of ordinary loans. In terms of Section 16(1) of the the source of the mysterious inflated bills. Unbe- who out of ignorance, failed to enforce his rights. laurels and pursue a debt many years after such Act, prescription in respect of a contractual obligation com- known to him, his landlord was busy enjoying Having discovered the theft of electrici- a debt has become due. Hence, any failure to re- mences to run as soon as a debt is due. In simpler terms, this is the time when the claimant’s cause of action is crystal- lised. So in the event of seeking to recover say a loan, one would need to calculate the date of prescription from the time when the debtor was expected to settle the amount due. The prescriptive period for a debt that is secured by a mortgage bond is 30 years. It is always therefore wiser to secure a loan with a mortgage bond so as to benefit from the longer prescriptive period. Similarly, a judgment debt also gets prescribed after 30 years, meaning that despite having enjoyed success in a court of law, if one does not enforce the judgment within 30 years, such a judgment becomes useless any time thereafter. The State also has 30 years within which to claim any tax that may be due to it. However, for debts owed to the State for loans advanced or for sale/lease of land, claims must be made within 15 years. For an ordinary debt owed to the State, the prescriptive period is six years. The running of prescription can be delayed by various acts and typical examples are when the debtor is outside Zimbabwe, or when the creditor/debtor is deceased and a trustee to run the estate is yet to be appointed. Further, the running of prescription can also be interrupted by the ac- knowledgement of liability by the debtor. There are other examples when prescription can be delayed or interrupted that are captured in the Act that I do not need to list here due to space constraints. At the end of the day, the lesson that creditors need to learn is that pursuing of debts must be done timeously and alertness and vigilance to management of debts should be the order of the day. l Muza, a Harare-based legal practitioner, writes in his personal capacity. [email protected] China to overhaul agriculture giants

HINA is planning to overhaul its mammoth state ag- riculture companies, transferring the trading assets of Cstockpiler Sinograin to food giant Cofco Corp., ac- cording to people with knowledge of the plan. The restructuring would be implemented in several stag- es and would also include Cofco taking over oilseed crush- ing capacity from Sinograin, said the sources, who asked not to be identified. The details of the plan are subject to change, they said. The Chinese government aims to complete the re- structuring by the end of next year,. The revamp of the biggest state companies in China, the world’s top consumer and importer of farm products, will be felt throughout global agricultural markets. It would take Cofco closer to its goal of rivalling the storied “ABCD” group of international commodity powerhouses that domi- nate flows of agricultural products, while extending its abil- ity to secure food supplies for the world’s most populous country. While Cofco’s duty is to keep China’s population fed, Sinograin’s role is more blurred. It imports soya beans and soyoil for state reserves but it also has commercial oilseeds crushing and refining capacity that makes it the fifth biggest player in China, according to its website. Transferring Sinograin’s crushing capacity would make Cofco China’s biggest crusher of soya beans, according to data from China National Grain and Oils Information Cen- tre. The State-owned Assets Supervision and Administration Commission, an arm of the Chinese government overseeing the biggest government enterprises, didn’t respond to a fax seeking comment. Representatives at Cofco and Sinograin also didn’t reply to a fax and email inquiry. The overhaul would also dovetail with President Xi Jinping’s drive to reform China’s sprawling and inefficient state-owned enterprises, which account for almost half of the nation’s industrial assets. Steel, power and chemicals companies are among those already targeted in the restruc- turing programme, with a long-mooted mega merger of Chi- na National Chemical Corp and Sinochem Group now said to be close. - Bloomberg The Financial Gazette May 9-15 2019 | Page 21 Column Fostering trust culture at workplaces

F THERE is one issue that is it connects to the roles of others. Trust in the workplace boils down affecting most organisations internalising the idea that a company is a team of interconnected Iin general and the country in people that have to collaborate to be most effective, rather than silos particular today, it is trust. The of individuals fi ghting for positions or prominence. issue of trust can make or destroy c). It means trusting your colleagues and yourself to do the right organisations or institutions. Even thing for the business, for ourselves, for our communities, etc. We all if we want to elevate the issue at earn trust by being transparent, direct and honest. Taking immediate national level, the issue of trust is a accountability for anything that is not going right; admitting faults big issue. How then can HR play a and mistakes endears one to others as we all make mistakes. People strategic role in making sure that trust naturally feel more comfortable about those that are not behind a issues are dealt with in an effective “perfect” facade. Trust is built over a time as Rome was not also built way in organisations or institutions? in a day. What is very clear is that we all d). Trust in the workplace operate on the basis of trust and is freedom and encouragement FURTHER CAUTIONARY STATEMENT once trust has broken down, to put your imagination, that will be the end of the road creativity, and passion to unless measures are taken to work. When the system rebuilt it. micromanages employees, The issue of trust can be such organisations kill Further to the Cautionary Statement published on the 11th of April 2019, the Directors of ZimRe both a cause and an effect of creativity, stifl es growth, Holdings Limited (ZHL) wish to advise its Shareholders and members of the public, that the company culture. The trust destroys confi dence, creates Company, is currently engaged in negotiations that involve a potential transaction at subsidiary Phil Chitagu we have in each other informs clicks and disempowers level, that may have a material impact on the Company’s share price. how we operate, and the employees. Some way we operate encourages organisations want to play it trust. Experience has shown that safe and scrutinise everyone wanting to take a path less trodden while The Directors therefore advise the Shareholders of ZimRe Holdings Limited, and the public, to trust issues can alter the status quo other organisations give a wealth of trust from day one. Being trusted continue to exercise caution and to consult their professional advisors when dealing in the shares of either way. Even when you look at actually makes one more aware and responsible. Relationships with the Company. the relationship between economic your colleagues become much stronger, as does your dedication to the players, it is evident that the issue company. These are some of the issues HR should watch out during By order of the Board of mistrust is high. When the onboarding of new employees with a view to improve trust issues in monetary and fi scal policies were organisations. announced, the issue of trust was e). The issue of trust is critical to ensuring success in institutions pronounced, perhaps as a result of right from central government to the corporate world. Several useful historical experience. When we look concepts are presented in Stephen M. R. Covey’s book series. He L Madzinga at the current economic situation, it uses the metaphors of taxes and dividends to describe the result of Group Company Secretary is diffi cult to rule out issues of trust. distrust and trust, respectively. Lack of trust leads to bureaucracy,

Pronouncements such as Vision 2030, which is a tax. Organisations with low trust are characterised by 7 May 2019 ease of doing business, devolution, “offi ce politics”: withholding information, infi ghting, hidden agendas, Zimbabwe is open for business, just endless meetings, etc. In contrast, the dividends generated by a high to mention a few, have good intention trust environment foster effective collaboration and innovation, but the issue of trust hampers improve employee engagement and retention, and accelerate the execution of the same. The same creation of value. BN Kumalo (Chairman), M Haken, J Maguranyanga, I Mvere, HWB Rudland, C von Seidel, E Zvandasara, S Kudenga* (*Executive) mistrust at national level fi lters to all f). If an organisation’s leadership trusts its employees to collaborate other levers of the economy. Having openly with one another, it provides each employee an entrepreneurial HEAD OFFICE: Block D, 2nd Floor Smatsatsa Office Park Stand Number 10667, Borrowdale Harare, Email: [email protected] Website: www.zhl.co.zw said this, how can HR play a strategic position within the organisation. This is not just smart business; it also role to ensure that there is trust in deepens employees’ connections to their organisations/institutions so that all individual contributions. The organisation levers of the economy are oiled and benefi ts signifi cantly as these contributions move in the same direction? If and drive larger initiatives. unless those who deal with people g). Trust is formed on the basis of actions (HR) are excluded where strategic than cheap talk ― do what you committed decisions are made, building bridges to deliver. Do you do what you say you are of trust will be a pipedream. going to do? Are your actions consistent Having worked in both with the values you have communicated? If government and the corporate people are able to consistently demonstrate world, experience has shown that actions that align with the values they have bureaucracy exists where trust does committed to, then trust is born. Where not; excessive process and overhead there is trust, people can work towards a exist because people do not trust common purpose and goal particularly in each other to do what is right and project teams where individuals have to what is needed. It is echoed that collaborate with each other so that there is trust is necessary for transfer of tacit seamless work performance. Where there knowledge, in an age where the fl ow is no trust, people work at cross-purposes. of information is the competitive Most important projects take more than advantage for any operations one person to accomplish. While the urge anywhere in the world. Fortunately, is strong to do a lot as individuals, trusting social tools make us more human, co-workers is about letting go of that urge. transparent and accessible, helping Many important tasks require multiple build trust in organisations. people’s effort, and oftentimes one must rely In situations where there is on other people to accomplish their tasks to trust in organisations, productivity, complete one’s. This creates a lot of stress effi ciencies, profi tability, service in most workplaces, because of limited delivery, employee engagement to visibility. Sure, hierarchies are created to mention but a few, improves and the force compliance, but compliance will only reverse is true where there is absence get you so far. Autonomy is therefore a key of trust. These are issues that HR can driver to success and this is only possible deal with on a daily basis as part of where there is trust and this is exactly what organisational culture improvement. Zimbabwean institutions or organisations Trust issues are pivotal for the need to go over the current economic success of the organisation and challenges. HR therefore plays a strategic the few issues that are highlighted role in the turnaround journey. show how important the subject is in As much as it is easy to build trust, driving performance: destroying it and then rebuilding trust a). It allows one to focus on the allows you to look at what does not work job, without second-guessing what to create a trusting work environment. To others are doing. Trust helps avoid or achieve the above, start building trust from eliminate bureaucracy, unnecessary the beginning of your relationship with process, and excessive oversight each new employee. Go back to the root that can both inhibit innovation and cause of mistrust. slow down progress. It is through The following approaches can be building trust that organisations can pursued to build trust at workplaces: create high performing teams and  Recruit and promote people to this is where HR plays a pivotal role supervisory positions if they are able of by designing policies and procedures creating positive, trusting interpersonal which guide its practices. relationships with those who report to them. The supervisor's relationship with b). Trust may also mean working reporting employees is the fundamental with a team of people who appreciate building block of trust. the superordinate goals of their  Upgrade the skills of all employees company or institution and their — particularly those of current supervisors roles. Everyone works hard to fi ll and people desiring promotion. Effective those roles effectively because they interpersonal relationship building will be know that if everyone is aligned, key in this regard. everyone succeeds. This embeds not  Effective communication ― Give as only knowing your role, but also how much To Page 22 Page 22 | May 9-15 2019 The Financial Gazette Column Board success through performance evaluation

O COMPANY, whether public quoted, induction, attending board lStrategy ― setting organisational direction; private limited, state-owned or communi- leadership seminars, con- lMarket and competitive landscape review and position- Nty-owned, would be happy with an ineffec- ferences, team building ses- ing; tive board, whether as a collective or as individual sions, etc. boards, therefore, lEnterprise risk management review and positioning; board members. need to be evaluated on their lTalent quality review and positioning; and There are many factors that impact the effec- effectiveness in this area. lOrganisational culture review and positioning. tiveness of a board. Recently, voluntary board d). Corporate control, f). Board financial oversight performance evaluation has been added to the list fiduciary duties This entails appropriately stewarding the financial resourc- of factors by most progressive boards. This post This is the traditional es of an organisation to prevent or minimise financial haemor- explores good practices in the area of voluntary responsibility of any board rhage and ensure financial soundness of an organisation on a board performance evaluation, covering some key ― monitoring managerial sustainable basis. considerations, bearing in mind that it is not a “one- performance and achieving g). Board dynamics and processes size fits all” affair. an adequate return for share- How well a board conducts itself in terms of running board Board performance dimensions evaluated Johnson Manyakara holders. Corporate control meetings, how board members are engaged with and commit- Best practice suggests that boards should evalu- and fiduciary duties entail: ted to board business, performance of individual board mem- ate themselves in performance dimensions indicat- b). Board governance systems l Board meetings bers, how the board chair runs board affairs, is key to board ed below: Board governance systems, namely board char- l Review of action points from the last board effectiveness. a). Board composition and renewal ters, board codes of ethics, board codes of conduct, meeting; h). Managing key interfaces Good corporate governance demands that in etc., form the foundation for effective board lead- l Performance report; How the board interfaces with the CEO/MD and with constituting itself, a board should be alive to issues ership. Evaluating this performance dimension is l Board committees reports; shareholders and relevant key stakeholders is another indicator of gender, expertise, skills, knowledge, integrity key in the board’s continuous improvement thrust. l Annual general meetings. of its effectiveness. and board member independence. Considerations c). Board learning and development e). Enterprise shaping Is there a clear understanding of where the board’s role like board terms and voluntary board performance Board and director capacity building is a stra- This performance dimension, inter alia, entails ends and the CEO’s begins? Is there an effective system for evaluation are also key in board renewal. tegic imperative for boards. This includes board the following: managing the CEO’s performance? How is accountability to shareholders and relevant stakeholders managed: lSound communication? lUnderstanding and taking into account their interests? lMonitoring of relations? lPromoting goodwill and support? Board performance evaluation process Board performance evaluation is voluntary. The impor- tance of buy-in from board members, informed by a strong business case for adopting the strategy, can, therefore, not be over-emphasised. Should the board adopt this strategy, it should agree on the following: lWho should lead the process ― either the board chair, a board member grounded in the functioning of the board or a board committee (usually the HR committee or the nominat- ing committee); lWhether to use a third party consultant in the process; lThe methodology to be used in the performance evalua- tion ― usually a questionnaire, followed by individual inter- views and the writing of an aggregate report (for confidentiali- ty) shared with and discussed by the full board; and lHow board evaluation should be disclosed. Board performance evaluation is not just another formality in the board leadership framework of a company. It, among other benefits, helps to identify priority areas for the board ― acting as a board planning tool. lManyakara is a board governance advisor with Board Leadership Zimbabwe. He writes in his personal capacity. Fostering trust From Page C11 information as possible particularly in this VUCA environment. Be agile in your communication. Current challenges facing organisations in Zimbabwe require regular communications for alignment. l Need to act with integrity and keep commitments. If you cannot keep a commitment, explain what is happening in the situation without delay. Observed behaviour or actions are perceived by employees as the basis for predicting future behaviour. Supervisors who act as if they are worthy of trust inspire more cooperation with fewer complaints. l Address hard issues in a timely fashion. If an employee is frequently absent or spends work time wandering around, it is important to confront him or her about these issues. Other employees will be watching and learning to trust you more. Be careful about setting wrong precedents, which will be difficult to manage going forward. l Safeguard the interests of all employees. Do not talk about absent employees or allow others to place blame, call names, or point fingers. Employees learn to trust when they know that their names are not being taken in vain. In any case, there are reasons why the employee might be absent. Establish the reasons before calling names. l Show competence in supervisory and other work assignments. Know what you are talking about, and if you do not know, admit it. Nothing builds trust more effectively than managers owning up to not knowing something and pledging to find out so that everyone is informed. l Pay great attention with respect. Exhibit empathy and sensitivity to the needs of staff members. l Take calculative risks to improve services and products for the customer. When you take calculative risks, you show employees that they may do the same, especially if there are no consequences when a thoughtfully considered risk goes awry. When risk-taking initiative is not censored, trust at workplace is cemented. l Maintain your expectations high. If you are a supervisor or team member, act as if you believe staff members are capable of living up to your standards. HR has an important task of coaching managers and supervisors in how to build trust at the workplace. This role balances the power within the organisation as well as improving relationships across all functions. To be very effective in this drive, line management needs to be empowered so that they play critical roles in building trust at workplaces. They should be able to coach and mentor employees in respective functions. l Chitagu is the IPMZ vice president for PR, research and customer care. He writes in his personal capacity. The Financial Gazette May 9-15 2019 | Page 23 Page 24 | May 9-15 2019 The Financial Gazette The Financial Gazette May 9-15 2019 | Page 25 National News Land development process in Zimbabwe

Mike Juru nancial institutions to take part and fund developments, without that, it is the rea- ITH the ever increasing pop- son we have developments without ade- ulation, the demand for hous- quate infrastructure. Wing has grown so much out- Land Development Process pacing the rate of supply of the houses Land development is defi ned as the resulting in the huge housing backlog process followed in altering the land- currently being experienced. Land and scape in any way such as changing housing development in nearly all towns landforms from natural or semi-natural in Zimbabwe is being experienced in as state for a purpose such as agricultural much a way the fi nancial institutions are or housing, subdividing real estate into embarking on mortgage lending but un- lots, typically for the purpose of building fortunately the impact is not easing the houses. The activities involved are se- housing challenge. quential and linear as they follow one af- The above emanates from the fi nan- ter the other with a few that can be done cial rewards that go with unlocking value at the same time. on land but if the due processes are not Feasibility study to ascertain the vi- followed, the rewards remain a pipe- ability of the project. It is a fact not all dream. It is thus imperative for the pro- developments are viable and the critical cess involved to be highlighted so as to and necessary skill of a Property Val- have an understanding of the bottlenecks uer in combination with an Engineer stands will be done. the Valuers, Land Surveyors, Engineers, and known, the pressure arising from for the stakeholders and other authorities and Financial Analyst are required for a Engineers are then called in to do the Estate Agents and Legal Practitioners the demand for land to develop housing to plan accordingly. thorough assessment. Upon production onsite and offsite infrastructure designs while the Town Planners and Envi- has resulted in houses being developed In theory, the process of land devel- of a positive report a topographic sur- (Water and sewer reticulation, storm ronmentalists are not. This is food for on land without adequate infrastructure opment in a given but the actualization is vey which is done by a Land Surveyor water drainage, road, power, etc,) which thought for the respective professionals and in many cases ignored resulting in shaped by the due processes and various is done. The outcome enables a Town have to be approved by the relevant Au- to address the anomaly so as to give con- no title being issued and the silent effect legal instruments in place in every coun- Planner to design a spatial plan which is thorities. fi dence to all stakeholders. Without the of a lower asset value which cannot be try and compliance with such, however submitted to the planning authority for The implementation of the civil regulation of the profession, the end re- used for economic gain as one accesses time consuming or costly they maybe, approval and granting of a development works by the various contractors will sult is non trained enterprising individual fi nance for further development. The le- it is a must comply issue. In Zimbabwe, permit. result in the availability of stands. Upon producing substandard work. gal instruments are there, the authorities some of the critical legal instruments Environmentalist then undertake compliance with the respective permit With the land or respective stands are established and the only challenge is include but not limited to are the Re- an Environmental Impact Assessment conditions, title deeds are issued and Es- made available and ready for develop- about enforcement. gional Town and Country Planning Act, wherein stakeholders are engaged and tate Agents can then sell the stands which ment, Architectural services will then be If the trend continues unabated, infor- Environmental Management Act, Urban Environmental Management Plan is the Lawyers (Conveyancers) will then be required to design respective units and mal settlements and urban sprawl issues Councils Act, National Museums and produced. Environmental Management able to pass title. the Quantity Surveyors do the costing of will escalate and become unmanageable Monuments of Zimbabwe Act, Deeds Agency issues an EIA certifi cate which Professionals Involvement the development and bill of quantities. and create further costly problems for the Registry Act, etc,. enables the development to be imple- The professionals involved in the Engineers are required then for structur- country. In compliance with the provisions set mented. The Land Surveyor would then process mentioned above fall into two al, electrical and mechanical designs.  Juru is the CEO of Integrated Proper- in the relevant statutes and permits, title be required to undertake cadastral survey categories of regulated and non-regulat- Challenges ties. He writes in his personal capacity. He deeds are issued which would enable fi - wherein the pegging of the respective ed. The regulated professionals include While the process is clearly defi ned can be contacted on [email protected] Masimba banks on $45m order book

Nelson Gahadza Business Reporter

ASIMBA Holdings (Masimba) says it has a fi rm order book Mof $45 million with strong bias towards mining, agriculture and housing, which will support the group’s growth ambitions. Canada Malunga, the company’s chief executive, yesterday said the order book is expected to grow on anticipated infrastructure projects. “Anticipated growth opportunities will grow the order book and sustain growth that was achieved in 2018,” he said at briefi ng in Harare after a tour of Canada Malunga some of the fi rm's construction sites. we could not be just reckless and we Malunga said there are signifi cant slowed down as we were not able to take growth opportunities on road construc- unnecessary risk,” he said. tion, water systems, agriculture, mining The Masimba boss also noted that and housing. the company has since signed a memo- “We are in the fi nal stage of capaci- randum of understanding with one mu- tating the roads unit and we are certain nicipality for a housing project of 2 000 to achieve that by the second half of the residential stands. year,” he said, adding that while foreign He said development will commence currency issues have been a major chal- during the second quarter of the current lenge, the company managed in some year as feasibility studies are already un- instances to enter into partnerships with customers who have the ability to secure derway. the hard currency. During the 2018 fi nancial year, the “We had two customers who would group’s revenue grew 46 percent to $40 pay in absolute hard currency. Some cli- million compared to $27 million in the ents have also agreed to purchase their prior year. own material,” Malunga said. Malunga noted that the growth in He also noted that the listed construc- turnover was curtailed by suspension of tion fi rm is looking at chasing markets a major project due to client fi nancing that have an export exposure to militate challenges and uncertainty of the oper- against liquidity, foreign currency and ating environment. pricing, raw material availability and However, the company’s current human capital. projects include the 10 million litres res- According to Malunga, in 2018, the ervoir project for Fidelity's South View business started slowly as a result of the housing project. The fi rm is also con- November 2017 shocks that resulted in structing Proplastics' new factory, which changes within the political landscape. is now almost complete. “These had cash fl ow implications, newsdesk@fi ngaz.co.zw Page 26 | May 9-15 2019 The Financial Gazette National News

Cyril Ramaphosa SA rand strengthens as election gets underway

HE rand gained a second day on ly on power, President Cyril Ramapho- Wednesday as South Africans sa needs a convincing majority to push Tstarted voting in an election that through economic reforms in the face of may determine prospects for reforms to opposition from factions within the party. revive the country’s flagging economy. A narrow victory could stymie his The currency advanced 0,6 percent efforts to restructure state-owned compa- to 14.3530 per US dollar by 14:13 in Jo- nies and root out corruption. hannesburg, after gaining as much as 0,9 Voting for the 400-member National percent earlier. Assembly and nine provincial legisla- Yields on dollar bonds due 2028 tures started at 7:00 and will run until climbed three basis points to 5,23 per- 21:00. cent, while the cost of insuring the debt Final results are scheduled to be re- for five years using credit-default swaps leased by May 11, and a first meeting of rose three points to 197, the highest since the new parliament has been provisional- March. ly set for May 22. While opinion polls point to the ANC The president is officially elected at extending its quarter-century monopo- that sitting. — Bloomberg Mining giant faces US$5 billion lawsuit in Brazil INING giant BHP Billiton is The lawsuit is being brought on behalf facing a $5 billion claim for of 235 000 Brazilian people and organisa- Mdamages over a dam collapse in tions, including municipal governments, Brazil in 2015. indigenous tribes, utility companies and Law firm SPG, which is representing the Catholic Church. than 200 000 Brazilian claimants, said It claims BHP failed to act on repeated the company “knew of the risks” at the warnings from independent experts about Samarco mine in Minas Gerais state. the dam’s integrity. The claim, which was served at Liv- Instead, it claims the mine continued erpool’s High Court on Tuesday, is the to increase output of iron ore, leading to largest in UK legal history. heightened water levels. BHP, an Anglo-Australian firm listed Goodhead said: “BHP was woeful- in London, rejects all of the charges. ly negligent in its duty of care and the Tom Goodhead, partner at SPG, said: damages sought are entirely commen- “The repeated warnings and recommen- surate with the devastation the company dations of dam safety experts were acted has wrought upon the people of Minas upon too slowly, or sidestepped entirely. Gerais, (the state of) Espirito Santo and “Driven by concern for declining Brazil.” revenues amidst the falling market price BHP has rejected all charges against of iron ore, the company took risks, in- the company, as well as current and for- creased production and turned a blind eye mer staff. to dangers that ultimately claimed lives On Tuesday company spokesman Neil and destroyed communities.” Burrows said the miner intended to de- The Samarco disaster in Minas Gerais fend itself against the claim. state, south-eastern Brazil, killed 19 peo- Samarco, the mining company in- ple and displaced 700, and is considered volved in the disaster, is co-owned by the country's worst environmental disas- BHP and Brazilian firm Vale. ter. Both firms have faced big fines in Bra- When the dam burst, it unleashed a zil, and have had to pay millions of dol- deluge of thick, red toxic mud that wiped lars into compensation and remediation out the village of Bento Rodrigues. programmes. It also polluted the Rio Doce river and BHP has separately settled a class ac- Atlantic Ocean 650km away, devastating tion by US investors over the disaster and wildlife and tainting drinking water for continues to battle Australian shareholder hundreds of thousands of people. lawsuits. — BBC The Financial Gazette May 9-15 2019 | Page 27 Page 28 | May 9-15 2019 The Financial Gazette National News Apple to unleash Firms’ profits, dividends a slew of apps PPLE is planning to unleash a slew of new apps, features and development tools at its annual soft- boost govt revenue Aware conference next month. To improve its devices and strengthen its connection Omega Ukama erating environment”. to customers, the consumer technology giant will contin- Business Reporter “We are waiting for the rest of the results, but ue to walk a fine line between wooing outside app mak- from the full year and half year results we have, ers while also competing against them. HE Zimbabwe Revenue Authority (ZIM- ZSE companies grew their bottom lines by 153 The Worldwide Developers Conference, or WWDC, RA) says it saw a considerable increase percent on average during 2018,” Nyaungwa starts on June 3. The company will reveal updates to the in taxes related to corporate earnings and said. operating systems that run the iPhone, iPad, Mac, Apple T Watch, and Apple TV. dividends during the first quarter of 2019, after “In our view, dividend payments were largely some firms recorded robust performances in a function of the profit growth. Highlights include upgrades to core iPhone apps 2018. “In addition, some companies such as Delta such as Maps, Reminders and Messages; new apps for This comes as many companies in the coun- issued special dividends over and above their the Apple Watch that make it more independent from the try, particularly those listed on the Zimbabwe normal pay-out ratios as a way of giving back iPhone, and enhancements to the health tracking capa- Stock Exchange (ZSE), recorded robust perfor- value to shareholders given their large cash re- bilities of Apple devices, according to people familiar mances during the six months ended December sources,” she said. with the plans. 31, 2018, despite economic challenges that be- Enock Rukarwa, a research analyst at FBC Since launching the iPhone in 2007, Apple has pur- seeched the country during the this period. Securities Research echoed Nyaungwa’s senti- sued an aggressive approach to refreshing its mobile In its revenue performance report for the ments saying there was bound to be an increase operating systems each year. The fast pace is taxing on quarter ended March 31, 2019 ZIMRA said in dividends since they “are a function of a com- Apple engineers, but the results have been impressive. corporate income tax collections amounted to pany’s earnings and cash flows”. The company's products are often unique and more $242,08 million, which was “above the target of “If you look at companies’ financial perfor- capable than those of rivals, because Apple’s home- $172 million translating to a positive variance of Faith Mazani mance lately, you will find that a good number of grown software works so well with the hardware. The 40,74 percent”. them have been recording double figure growth new updates also give users access to the latest services Collections in this revenue head grew by percent. The revenue head recorded a positive in revenues and profits. like Apple Music and the upcoming TV+ video-stream- 88,31 percent from $128,55 million that was col- growth of 176,78 percent from $18,72 million “Regardless of the rising inflation, perfor- ing subscription, which give Apple a recurring revenue lected in the same period in 2018. that was collected in the first quarter in 2018. mance has been increasing across the board and stream. “Major factors to the positive performance of ZIMRA said “this is reflective of the positive it follows that dividends should also be com- It’s a delicate balance. Part of the allure of iPhones this revenue head include improved profitability performance by companies”. mon,” he said. and iPads also comes from all the different apps made by some established companies, improved com- Analysts who spoke to The Financial Gazette A common trend during the period of concern by independent developers. The company provides new pliance and enforcement activities by the author- concurred with the authority saying there was an was that companies’ performance was driven by tools for these partners, but it is increasingly building its ity,” ZIMRA said. notable upsurge in earnings of selected compa- price increases as well as speculative and panic own versions of popular apps, too. Meanwhile the Faith Mazani-led authority nies which led to bigger profits and insome cas- buying which were common during the second That helps differentiate its devices from rivals but says total collections of taxes related to divi- es, more dividends. half of 2018. sometimes upsets third-party developers. Spotify Tech- dends, fees, interest and remittances during the Fungai Nyaungwa, a senior associate at Akri- Between June 2018 and March 2019, the nology and other app makers have complained to Euro- first quarter amounted to $51,82 million against bos Research Services said this had been a gen- country inflation gained 62,5 percentage points pean antitrust regulators that Apple’s own software and a set target of $19,71 million. eral trend with a number of notable companies from 2,9 percent to 66,8 percent. services give it an unfair advantage on the App Store. This gives a positive variance of 162,92 over the past few years “despite the difficult op- [email protected] — Bloomberg

ForFor the the week week ending ending 13 March8 May 20192019

For the week ending 13 March 2019 The Financial Gazette May 9-15 2019 | Page 29 National News ‘Mining can spur investment’

Shame Makoshori Companies Editor

INANCE minister Mthuli Ncube says investors with interest in Zimbabwe’s Fmining industry can capitalise on 10 years of uninterrupted growth in the gold min- ing sector. He says there are significant opportunities that have come up in a variety of mining in- dustry subsectors, including investments into value addition, which is vital for the country to improve earnings from the industry. In a recent presentation outlining Zimba- bwe’s 2030 vision, Ncube also said the broad- ness of the country’s mineral endowment pre- sented opportunities for investment into the sector. Sifelani Jabangwe “Zimbabwe’s highly anticipated gold sec- tor is on a ten-year growth path,” he said. “All 40 major minerals have been iden- tified. (Zimbabwe has the) second largest platinum reserves and (is the) second largest Interbank producer of ferrochrome in Africa. Zimbabwe requires an estimated $11 billion of capex (capital expenditure) to modernise its existing mines. “Furthermore, almost all minerals are ex- to ride ported from Zimbabwe in their unprocessed state. This allows opportunities for investors in the value-add stage of production.” The country requires up to $11 billion to modernise its mines and boost production to on tobacco maximum capacity over the next five years, according to the Chamber of Mines of Zim- Zimbabwe requires an estimated $11 billion of capital expenditure to modernise its babwe. existing mines. Foreign investor interest has been grow- ing in Zimbabwe since 2017, when long-time its of platinum and chrome after South Afri- Ncube said while Zimbabwe still faced a earnings leader, Robert Mugabe was ousted in a mili- ca and has lately seen increased interest from number of economic problems, the economy tary intervention. lithium investors, who however say funding had remained vibrant. The Chamber of Mines says with the ex- still remains a hurdle. “Despite all the challenges, the economy Nelson Gahadza ception of platinum producers, all other mines, The industry faces problems that included still remains vibrant (with a) target per capita Business Reporter including those of gold, nickel, cobalt and coal high costs of electricity, labour and royalty income level of at least $4 500 by 2030. This were operating below their installed capacity. fees when compared to other jurisdictions. implies a sustained growth in nominal GDP HE recently-introduced foreign currency interbank Mining generates more than half of Zimba- There had also been little exploration in the from the 2018 levels of around $25 billion market has failed to deal with a crippling foreign bwe’s export receipts. country since 2000, according to the Chamber to around $65 billion by 2030. The private currency shortage in the country, with industry still It earned the economy about $3 billion last of Mines. sector is expected to stimulate growth, with failing to access hard currency from the official year. Equipment at most mines was more than 50 Zimbabwe assuming the position of a factory Tmarket, an industry executive has said. But industry executives say it has the po- years old, severely undermining efficiency and to the world. This will be complemented by The situation, said Sifelani Jabangwe, the president of tential to earn more with increased investment. cost effectiveness of the sector, according to increased competition to bring down prices,” the Confederation of Zimbabwe Industries (CZI), may im- Zimbabwe holds the second largest depos- various official reports. said Ncube. [email protected] prove due to the current tobacco selling season. “The system has already lost the first quarter,” Jabangwe told a Business Economic Empowerment Forum (BEEF) conference on currency reforms last week. “If we are to get the interbank system to work, it should be in the first half, riding on the tobacco selling season. Be- yond that, there is nothing.” He said the interbank system should be allowed to trade on a willing-buyer, willing-seller basis, and not through some unclear bidding process, if it were to thrive. “The rate should be determined by the rate at which the bulk of transactions are conducted. At the moment, it is not very clear as to the transparency of bids and offer on the interbank market,” Jabangwe said. The central bank introduced an interbank auction system in February with a managed rate of 2,5 to the US dollar. This was part of efforts by the central bank to solve the foreign currency crisis in the country and to deal with price distor- tions across the country. Jabangwe said stakeholders should ensure the interbank system works. “It is not an RBZ, government or private sector system, but we should make it work as an economy,” he said. Solomon Matsa, the BEEF president, said currently there is no alignment between the monetary and fiscal poli- cies, resulting in loss of confidence in the RBZ. “People have lost trust with the RBZ. Also, many foreign companies claim to bring money for investment, but end up borrowing locally and externalise the profits. We need to address such as an economy,” he said. Jabangwe said the local industry requires at least $250 to $300 million monthly for raw materials, which could not be adequately met from foreign currency receipts. Eddie Cross, an economist, said until there was an inter- bank market that is free from RBZ interference, the current system would not work. He noted that diaspora remittances alone are adequate to support local industry if the money is managed efficiently through the market system. Cross also indicated that adopting the rand will not help the situation and there is no flexibility to even invoice in rands. “We need flexibility to invoice in rands, but a lot of people have already rejected the rand, making it difficult to adopt it,” he said. Persistence Gwanyanya, an economist, noted that over $600 million is sitting in nostro accounts and not trading on the interbank market. [email protected] Page 30 | May 9-15 2019 The Financial Gazette National News Is command agric a bad scheme?

Peter Gambara ic hardships that everyone is experiencing, how many farmers will have the resources HERE has been a lot of debate to go back to farm next season? However, as to whether the Command Ag- if we have contract schemes in place for Triculture programme is a good maize, soyabeans, tobacco etc, it would or bad scheme for the country. not be difficult for farmers to go back to It is my argument that the Com- the land. Everyone mourns the fact that we mand Agriculture programme is not end up having to import maize, wheat, soy- necessarily a bad scheme and that it abean oil and cake etc; it is only because the can be run and managed better. It just local farmers lack the capacity to produce, got a bad name with bad connotations due to their inability to raise the necessary and was run by the wrong people. It funding. Besides, who does not know that could be the panacea to our current the land cannot be used as collateral to bor- production problems and high agricul- row agricultural funding from banks? Our tural imports bill. However, the syn- agricultural production levels will increase onym, “Command Agriculture” has tremendously. attracted a lot of criticism from differ- Tobacco contract schemes have proved very popular in Zimbabwe. The third major question is should gov- ent angles for the wrong reasons. ernment run a contract scheme like this at Contract farming in agriculture is and pesticides to produce maize un- vide 200 hectares of arable land. has documented all the plans to develop all? Should this not be left to private sector? a very popular concept worldwide, der a “Special Maize Programme”. It Secondly, it is not as easy as walk- over two million hectares or irrigable land, Prior to government introducing the Com- where farmers are contracted to pro- targeted “2 000 farmers” who were ing in the park to farm 200 hectares of those plans have largely remained a pipe mand Agriculture scheme, private milling duce agricultural commodities by a expected to grow 200 hectares each, maize and achieve good yields. It is dream, mainly due to the unavailability of companies ran their own maize and wheat contractor. The contractor is normal- totalling 400 000 hectares (ha). Each only possible if a farmer has reliable funds. contract schemes. The consensus among ly a company that has interests in the farmer was expected to achieve a yield farm equipment and all the required Lastly, many farmers continue to lose economists is that those interested in a prod- commodity. Contracts vary from situa- level of at least five tonnes per hect- inputs are availed on time and an ef- aluminium pipes, pumps and transformers uct should contract farmers to produce the tions where the contractor will provide are to produce a total amount of two ficient management is in place. Now, on the farms to thieves. Ask any farmer and product for them. Tobacco merchants are all or part of the inputs to a situation million tonnes. The country’s maize besides the tractors and equipment he/she will tell you that it is pointless to re- contracting farmers to produce tobacco and where the contractor does not provide requirements are approximately two provided free of charge by the for- port these theft cases to the ZRP. They never the scheme has been very successful, over any inputs, but guarantees a market million tonnes. The scheme was to tar- mer RBZ governor, very few farmers take action and hence these thefts continue 70 percent of the crop is now grown under and sometimes a pre-determined pro- get farmers near water bodies who had actually bought their own equipment. unabated. It is very expensive to replace contract. Cotton merchants have done the ducer price to the farmer. The produc- irrigation schemes in place as well as It takes several years of investing in these items and once hit badly, most farmers same. Sugarcane companies in Chiredzi tion is done under some agreed condi- dryland farmers. tractors and equipment, for a farmer to just give up trying to replace the equipment. do the same. Therefore, companies whose tions and the farmer is obliged to sell These underlying assumptions ex- have reliable tractors and equipment. One option is to install centre pivots that are main business is in maize, soyabeans, wheat the produce to the contractor. In Zim- hibited the first bad planning. Very few Most farmers have to battle regular made of iron, which does not attract thieves. etc, should simply fund contract schemes to babwe, the tobacco contract schemes farmers can command 200 hectares breakdowns, try to cut corners here Aluminium pipes are being stolen to smelt produce these agricultural commodities. have proved very popular, whilst the on their farms. Because the Fast Track and there and in the end, compromise the aluminium. During the first year, the However, the major obstacle with such cotton and sugarcane schemes have Land Reform programme sought to on yield. ministry of Agriculture promised to bring an arrangement has been the fact that some- also done well. provide land to as many people as Thirdly, whilst many waterbodies in centre pivots and distribute these to the times government comes up with policies When the government introduced possible, the emphasis in the end was exist on the farms, very little irriga- contracted farmers, but as usual, only the that are not conducive to running those con- the Command Agriculture programme to provide medium sized farms, rather ble land has actually been developed. big chefs ended up benefitting. The rest tract schemes. As an example, in 2017, gov- in 2017, it sought to provide farmers than large-scale farms. Only the “big Whilst government, through the de- have to try and buy them using other means, ernment announced that it was going to pay with fuel, seed, fertilisers, herbicides chefs’ got large farms that could pro- partment of Irrigation Development, but a 40 hectare centre pivot can cost about US$390 per tonne of maize delivered to the US$60 000 (US$, not these RTGS dollars). Grain Marketing Board (GMB), as a way to How many farmers can afford that? “encourage maize production”. Millers ob- The second major problem with the jected to this price level, arguing that it was Command Agriculture scheme was the higher than the import parity price. Govern- way it was run. The word, “command” is ment eventually relented and agreed to sell thought to have originated from the army the same maize from GMB to the millers at and this is one reason why the army per- only US$$250 per tonne, making a loss of sonnel were entrusted with leading the pro- US$140 per tonne in the process. gramme. Initially, there was a big debate The ripple effects of this policy decision as to who actually came up with the idea. severely affected the contract schemes that However, irrespective of who actually initi- private millers were running with farmers. ated the programme, army officers lead the Farmers rebelled against the millers and programme from national to district level, refused to deliver to them at the agreed with technically competent Agricultural US$250 per tonne that they had agreed on Extension Officers from AGRITEX being in the contract. made to report to these army officers. millers simply said to the farmers, “go In a contract scheme, it is important ahead and deliver the maize to GMB, but that the inputs be availed on time and in we also want a 50 percent share of the extra adequate amounts, so that the production $140 that you are now making”. The millers process does not suffer. However, with the then went and purchased cheap maize from army officers in charge, it was very difficult GMB at $250 per tonne. However, subse- to get all the inputs on time. Pre-emergence quent to that, they decided against fund- herbicides were sometimes only made ing maize contracts and just waited to buy available after the maize has already germi- cheap maize from GMB. nated. Top dressing fertilisers were also only Government has since continued with made available when the maize cobs were the subsidy policy to millers, by announcing half formed. The importance of making sure in April this year that they will sell maize that these inputs are available on time is well purchased at RTGS $726/tonne to millers understood by the AGRITEX Officers, but at a discount of 38,5 percent. The question they would not dare challenge an army of- is who would bother sponsoring maize pro- ficer. If all inputs had been made available duction under such a scenario? on time and in the right amounts, the coun- It is therefore very clear that the Com- try could have achieved a much better yield mand Agriculture programme was badly than we did in 2017. conceptualised, badly run by the wrong With contract schemes, farmers do not people and given a wrong name altogether. have to worry about saving money for the Soldiers have no business running an agri- next season, they should just strive to pro- cultural scheme like this, they do not know duce enough to pay back the loan and re- anything about farming, they are trained to main with a surplus. They can then proceed handle guns and not holes. The scheme is to invest the surplus in either new tractors better run by the private sector, with those or equipment, knowing fully well that they companies with interests in any agricultur- will still get adequate inputs for the next al commodity sponsoring various contract season. In other words, farmers do not have schemes. With contract schemes in place, to be rich to farm. During the first year of our agricultural land utilisation and produc- implementation of the programme, the area tion levels are likely to increase substantial- planted to maize jumped to 1 243 624 hect- ly and once the private sector takes over the ares from 773 968 hectares planted the pre- running of these schemes, I am sure that vious year, largely due to the programme. they will rename them, “Maize Contract Because of that success, government then Scheme”; “Soyabean Contract Scheme” decided to fund the production of wheat the etc. Government’s role should be to provide following winter and include the growing of the necessary supportive marketing and soyabeans during the next season. land policies, and “it will work” perfectly, To put this in another context, it now simple. costs about RTGS$6 000 to grow a hectare Peter Gambara is an agricultur- of maize. With the low producer prices that al economist and consultant currently overnment pegged in April and the econom- based in Pretoria Life & ArtsNews Worth Knowing May 9-15 2019 Page 31 Ravishing ‘snow- aged’ beef at Andaz Tokyo Hotel

Young ladies in traditional kimonos visit the Bamboo Temple in Kamakura. HE seaside resort town of Ka- ready been taken when we arrived. feel very welcome. We made low makura, with its Buddhist tem- bows in response to our host as we ples, Shinto shrines, peaceful left, and set off for the Bamboo tem- bles. In addition to matcha tea, the and a green salad, all freshly made, T menu includes amazake (wine made teased our palates. The main course, gardens and bamboo groves, is only an ple. hour by train from Tokyo, and an ideal A Matter of Taste In addition to a few tourists, a from fermented rice), and strawberry grilled Japanese beef, was made from weekend retreat. group of pretty young Japanese wom- milkshakes, served with Japanese 'snow-aged' beef and prepared by ex- We set off for Kamakura on a Sun- with en wearing traditional kimonos were sweets. If matcha is not your cup of ecutive chef Shaun Keenan, an Austra- lian who has spent the last 18 years in day, planning to visit Hokoku-ji Zen Charlotte Malakoff visiting the temple. tea, you can always order a cappucci- Buddhist temple, also known as the We admired a statue of Buddha in- no, iced or hot. Japan. Bamboo temple. side the temple, and then climbed a One of the most impressive meals The Japanese science of snow-ag- Situated within a residential area a steep flight of steps leading past ponds, we had was a celebratory dinner in the ing matures beef for 25 days in a natu- bus ride from Kamakura station, Kamakuragosan, the rustic little streams and manicured shrubs, on the Tavern Grill and Lounge at the 5 star ral Yukimuro refrigerator, and gives Hokoku-ji is famed for the mystical restaurant where we had lunch, spe- way to the bamboo grove. Andaz Tokyo Toranomon Hills Hotel. the beef a melt-in-the-mouth quality bamboo grove flourishing behind the cialised in udon (flour) and soba Kosoan Teahouse, literally translat- As we stepped out of the lift on the with a buttery finish. main temple. (buckwheat) noodles, served either ed as Old Mulberry Hut, is one of the 51st floor, smiling waitstaff welcomed The flavour of Chef Keenan’s beef Deep within the bamboo garden is hot or cold. Ajisai, a set menu costing best kept secrets in the busy shopping us and escorted us to our table. was ravishing, and the plating of the a tea house serving matcha tea (oxi- 1 100 yen ($10), of miso soup, sticky suburb of Jiyugaoka in Tokyo. It is Marvelling at the sleek, modern ar- dish with white asparagus, micro rad- dant-rich green tea processed from rice with vegetables and miniscule also a favourite place to enjoy matcha chitecture with its futuristic outlook ishes and horse radish mustard sauce finely-ground green tea leaves). hints of chicken, a tiny dish of boiled tea in traditional surroundings. and aerial views of Tokyo, I could made this a stand-out dish. For 500 yen you can sip matcha tea rape blossoms with soy sauce, and If you see a carved wooden sign have been standing in the beautiful sky Dessert of the day, however, con- from a bowl, and achieve inner peace, three slices of pickled radish, was re- saying ‘open’, in front of 100 year old tower in Tom Cruise’s film, Oblivion. sisting of a handful of fresh strawber- as the breeze rustles through the bam- freshing rather than filling. wooden house, and follow it down a We all opted for the Evening Box ries and two miniature eclairs, was boo leaves surrounding the tea house, George fared better with a hot bowl winding path, you'll find a tranquil (4 800 yen), named for the appetizer, only mildly impressive. and birds chirp in the filtered sunlight. of soba noodles, with grated yam, edi- Japanese garden and the entrance to served as a bento box with 8 small When visiting Japan, enjoy sushi, Well, we never reached that peace- ble wild vegetables and mushrooms, Kosoan Teahouse. compartments. edible wild plants and miso soup, but ful state of being, as we stopped off for also 1 100 yen. Take off your shoes, and you'll be Shrimp cocktail, fried chicken with be sure to taste the Japanese beef. It is lunch before visiting the temple, and As always in Japan, customer ser- escorted over tatami mats to be seated wasabi, prosciutto ham and fruit, sea- something out of the ordinary. the last orders for matcha tea had al- vice was great, and we were made to inside on dark blue cushions at low ta- food salad, fresh cheese and tomato Comments to: [email protected] New thinking in African development! HEN former US Ambassa- Welcoming some guests, Trump joked front for a corrupt reprobate state, and well. first at prices one quarter of that quot- dor David Bruce Wharton that he did not know why Zimbabwe- which has no desire to change its ways The invasion of Gaika Mine I Kwe ed in Zimbabwe dollars. Wvisited Lander University ans are poor. His friends who have or to learn from its own past. Kwe was organised by a ZANU-PF Government seems impervious to last week, it sort of placed Zimbabwe travelled to that country (as specula- Hanke is an expert on inflation. The warlord and area representative with an obvious fact. The US dollar is a on the map. tors or hunters) have reported about measurement for hyper-inflation is the honirffic title of Al Shabab. consistent measure of wealth while the Two weeks earlier, CATO Institute fabulous wealth of that region. In the process of looting and de- Zimbabwe dollar plays yo-yo with invited renowned Africanists, Steve The theory that democracy is a pre- struction that followed, $100 million peoples’ wealth. Hanke, Barry Wood of the South Afri- cursor to economic progress is wrong, worth of property was destroyed. In my research on Mugabe, I found can Financial Times and Professor but Americans hold this view as fierce- I spent two years researching the that corrupt practices had long been Mtuli Ncube. ly as they regard their star spangled Shabani-Mashava Mines saga and its entrenched in the Zimbabwe psyche We start with Wharton. Wharton, a banner. owner Mutumwa Mawere. that the practitioners had become rep- soft spoken man, has spent the better In the ten years it took me to re- The rule was that if one wants to robate. part of 30 years in the field, covering search for the book, Life and Times of play, one must pay his tithes to a boss Zimbabwe Phosphate Company Southern Africa and is what Ameri- Robert Mugabe, the arguments being man. (Zimphos) annual reports reveal a pat- cans call a genuine human person. rehashed by CATO Institute African- The accusations against Mawere tern of deliberate sabotage of that Nevertheless, I came out with the ists can be summarised as Mugabe’s were entirely without foundation, but company by Harare City Council. impression that while these Africanists success in creating an organised crim- that at some point, he had forgotten to Harare had a predictable water re- fell in love with Zimbabwe, appreciat- inal syndicate (casa nostra). pay his tithes. But the greater corrup- ticulation system, using chemicals ed its abundance of educated human The nomenclature of a criminal tion lies in the fact that the fate of 2 from Zimphos (Zimbabwe Phosphate capital and its vast natural resource syndicate was used by Hanke. A few 000 workers (who were displaced) Company). base, the missing link is an honest illustrations will make the point. Of was never considered. City Council discontinued this re- government. the 190 states surveyed on business Letter from America ED inherited these Mugabeist out- lationship in favor of South African I shall return to this later. attraction, Zimbabwe was number fits. The general opinion now is that he companies. Tithes were paid in South Government policies are blamed 176. Of the 180 states surveyed for with is incapable of exerting control over Africa. for the fall from grace, four million corruption, Zimbabwe ranked at 160. them. However, when US dollars were no migrants in South Africa and its inabil- Of the 162 countries surveyed as in- Ken Mufuka Given the conditions described longer available, they sought to renew ity to climb out of what Trump calls “a vestment destinations, Zimbabwe above, and the fact that the US State their supply lines with Zimphos, even shit-hole situation.” ranked at 127 least desirable. Department found the use of the mili- though they had outstanding arrears. Wharton and others believed that My apologia for ED is that Mugabe when the grid passes a 50 percent tary in Zimbabwe electioneering on Please note the corruption of lan- genuine transparent democracy is part corrupted everybody and made it im- mark every thirty days. behalf of government contrary to dem- guage (a corrupt way of saying Zim- of the cure. possible for an honest businessman (or As we speak, Zimbabwe in moving ocratic standards, the renewal of sanc- phos was not paid). This pessimism has its basis on the person) to survive without being taint- along that trajectory. tions was a foregone conclusion. My conclusion is that either ED is following observations. ed. The consensus was that Zimba- Government has attacked business- badly served by his propaganda de- Until recently, many Americans The conclusions were that any for- bwe’s budget is “soft” because there es that engage in “price discovery” as partment or he is incapable of disrupt- were willing to allow Zimbabwe lead- eign aid money sent to Zimbabwe will are no restraints, anything goes. saboteurs. ing the casa nostra syndicate he inher- er Emerson Mnangagwa time to show end up in the hands of a corrupt re- A devastating report, showing that I have before me a video of a Zim- ited from Mugabe. that he is a reformer. gime. despite “big talk” of return to the rule babwean doctor schooling his patients It appears to me that ED has been In fact, US President Donald Further, while Professor Mthuli of law, the invasion of Gaika Mine about prices. ruled out by US policy makers as inca- Trump addressed the issue in this way. Ncube may be genuine, he is just a proves that the criminal state is alive He will serve holders of US dollars pable of bringing about change. ROGER Federer marked his first match on clay in News Worth Knowing almost three years with a victory over France's Rich- ard Gasquest at the Madrid Open. The Swiss great, 37, Sport needed just 53 minutes to win 6-2 6-3. Page 32 May 9-15 2019 SPORT SHORTS ‘They will never walk alone’ TALK all you want about great European nights. Talk of the swell of the crowd, the roaring emotion inside An- field. Talk of St-Étienne and Olympiakos and Borussia Dortmund. Talk of glory and heart and implausible goalscoring heroes, of Fabinho’s energy, Trent Alexan- der-Arnold’s wit and Jordan Henderson doing it on one leg. All that played its part. But talk also of Barcelona’s impotence in the maelstrom, of the familiarity of their problems, and conversely of the way in which Jürgen Klopp has resurrected the great historical virtue of En- glish football: its power. When a three-goal advantage is overturned, of course it is a surprise (even now, when such things seem to happen on an almost weekly basis in the Champions League). Just because the underlying causes can, with hindsight, be traced, the improbability of what happened should not be downplayed. The silliness of the away goals rule meant the tie was weighted even further in Barcelona’s favour: Tuesday’s second leg effectively started 3.5-0 given the impact a goal for them would have had on the tie. Plus Lionel Messi, plus Luis Suárez, minus Mo- hamed Salah, minus Roberto Firmino: of course this was a shock. And yet look at the two legs as a whole, look at the balance of play, and what was freakish was not ZIMBABWE women cricket team opening batter Sharne Mayers (right) during the on-going ICC Women’s Qualifier Africa 2019 match against Tanza- the scoreline at Anfield in the second leg but what had nia at Takashinga Sports Club in Harare on Monday. Picture by Freedom Mashava happened at Camp Nou. Liverpool dominated three-quarters of the tie and matched Barça in the rest. In the first leg, the excellence of Messi and Suárez and that series of ricochets in the buildup to the second goal, combined with the way Liverpool wasted perhaps half a dozen promising openings gave the scoreline an You ain’t seen nothing unrepresentative aspect. — theguardian.com Hamilton feels the pressure LEWIS Hamilton may have kicked off the season with two wins from four races, but is feeling the pressure of yet — Sharne Mayers the young talent in F1. The British driver has claimed that while it is refresh- ing to see the likes of Max Verstappen and Charles Le- clerc performing well despite only being 21 years old, it Lady Chevrons gun for final berth is making his job more difficult. The Formula One grid also includes F2’s top three drivers from last season, with George Russell at Wil- liams, McLaren's Lando Norris enjoying some points Austin Karonga once with the other match being abandoned “I’m happy about the two wins and I’m finishes, while Alexander Albon has already had a tre- and Freedom Mashava without a ball being bowled owing to rainy happy about Sharne Mayers’ brilliant form…I mendous drive with Toro Rosso. conditions. think all the preparations we have done in the And while new blood keeps the sport moving with IMBABWE women cricket team open- The locals however, managed to attorney past three months are really coming togeth- the times and evolving, Hamilton believes it does not ing batter Sharne Mayers said her two for the two defeats suffered at the hands of er. We have fewer things to worry about. We make it any easier for him. Zhalf tons in the opening two victories Uganda in the last two years beating them have polished our skill and everything and it’s As reported by crash.net, the Mercedes star said: against Mozambique and Tanzania in the twice in the round robin stage before reiter- really coming together.” Zimbabwe Cricket “I’m game for new drivers coming through. on-going ICC Women’s Qualifier Africa 2019 ating their dominance by beating them in the named an experienced side for the ICC Wom- “They come through with new techniques, new driv- are just highlights of more good things to final. en’s Qualifier Africa, with failure not being ing styles, new aggression so it definitely is refreshing come. “The big focus for me was playing qualifi- an option on home soil. Led by captain Mary- and it’s great to see. The on-song right-handed batter is enjoy- ers and not so much on the Uganda trip. How- Anne Musonda, the squad of 14 was strength- “Each year I just focus on trying to improve myself as ing her moment in the sun scoring more runs ever, I made sure that I adjusted my game,” ened, by the inclusion of another ex-skipper, a driver and welcome the new guys that come through. in either match than the opposing teams. Mayers added. Sharne Mayers, who missed Zimbabwe’s tour I don’t look at any of them and think that they looked at In the opening match against Mozambique “Well it means there’s a lot to come…my of Uganda for a triangular series that also in- me and think they wanted to beat me.” at Old Hararians Sports Club on Sunday, May- first one (half century) was really amazing and cluded Kenya last month. Verstappen and Leclerc have often been tipped to be- ers scored 62 runs in the locals’ 193-run win. obviously you will never forget your first one. Zimbabwe, who have won all of the nine come future world champions, with the Dutchman sit- The 26-year-old broke her previous T20 I look forward to batting some more.” Twenty-20 international matches that they ting fourth in the Drivers’ Standings, crucially ahead of top score the following day against Tanzania Today Zimbabwe host Rwanda at Old Ha- have played this year, went into the ICC Wom- his Monegasque rival. at Takashinga Sports Club where she scored rarians Sports Club in the morning before tak- en’s Qualifier Africa 2019 carrying the favou- Yet, it could been the other way round, had Leclerc 65 runs while Tanzania could only manage 51 ing on Nigeria at the same venue for their last rites tag. not suffered a electrical problem with his Ferrari while runs for the loss of eight wickets in their allot- match of the round robin on Saturday. Lady They are now just one match away from leading the Bahrain Grand Prix. ted overs. Chevrons captain Mary-Anne Musonda is not sealing a place in the final of the on-going ICC Meanwhile, Albon, Russell and Norris are all rookies “…it means there’s more to come…defi- looking too far ahead after seeing the team Women’s Qualifier Africa 2019. Zimbabwe this season and Hamilton feels the sport is only getting nitely more to come…I look forward to bat- rest in the last two days. She prefers taking it has rarely put a foot wrong so far with Mayer tougher with new additions.The Brit said: “I’ve heard ting some more and enjoying this vital form I one game at a time before she can entertain being the outstanding player for the qualifiers some of them talk about other drivers lie (Aryton) Senna have,” Mayers said of her two half tons in the thoughts of how it will play out in the final. to date. Whoever Zimbabwe’s opponent will and Michael (Schumacher). tournament so far. “We just trying to make sure we go through be on Sunday as lot could be expected from “Obviously I’be been where they are and I can em- “This one was a lot harder than against Mo- each game as it comes and when we reach the Mayer if her recent performance is anything pathise with the experience they’re going through and zambique but I had to go out there and apply finals it’s going to be a new game. But we are to go by. With team work and accolades also the challenges that they all face in their own way in the myself and do it for the team,” she said. still going to apply ourselves the same way we comes individual awards. It is an open secret races throughout the year and the following years. Mayers is making her comeback into the applied ourselves in the first two games. So we that Mayer who has managed to transform su- “I’ve got my work cut out to try and stay ahead of team after missing the Lady Chevrons’ trip to hoping not to be complacent…something that periority on paper into success on the field will them, which gets harder and harder every year. If anyone Uganda, a tri series that also featured Kenya. costs us in the final the last time we failed to emerge as one of the stand out players of the could do it, I guess then it wouldn't be a special job.” — Zimbabwe managed to account for Kenya qualify,” Musonda said. qualifiers. [email protected] thesun.co.uk