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GOVT BUDGETS FOR PRIVATISATION WINDFALL: Page 10 $2 CBZ Asset Management t/a Datvest News Worth Knowing China bitter over Anjin: Page 2 November 29-December 5 2018 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette ZSE Report THE All Share index regained 0,07 percent yesterday to close at 158,55 points. BAT added $1,7844 to close at $34,7844, No end while Old Mutual put on $0,0986 to trade at $8,0534, and TSL traded $0,0782 high- er at $0,6000. Econet was down by a further $0,0326 at $1,6867. The industrial Index gained 0,07 percent to close at 532,34 points, while the Top 10 index was up by 0,08 percent F1510A59KR at 162,76 points. The Minings in sight index picked up 0,08 percent to close at 208,56 points. Currencies (Bloomberg) % change ◀ USD:ZAR 14,8338 1,63 EUR:USD 1,1316 0,26 ◀◀ ◀ GBP:USD 1,2764 0,46 ◀ ◀◀ USD: JPY 113,2900 0,14 Stock Markets ZSE (All Share) 166,82 1,49 to Zim’s ◀ ZSE (Mining) 217,34 0,36 ◀ JSE 16 366,00 0,16 FTSE 100 7 142,33 1,52 1,48 Dow 25 243,54 Commodities (Bloomberg) 0,82 Gold 1 212,90 ◀ Platinum 836,31 0,02 ◀ 0,42 Brent Oil 75,59 ◀ Grains (Grain SA) White Maize ZAR 2 101,36 1,0 distress ◀ Soya ZAR 4 483,09 2,7 Ndakaziva Majaka moment in Zimbabwe’s economic recovery,” he ◀ Wheat ZAR 2 687,49 1,8 and Paul Nyakazeya said. ◀ Staff Writers But many economists and ordinary folks slammed Ncube’s outline, saying it would not LTHOUGH President Emmerson Mnan- achieve much as it had either ignored or inade- Ghana billionaire gagwa has described Zimbabwe’s 2019 quately addressed key issues weighing the econ- visits Zimbabwe Abudget statement as a pivotal moment in omy down — including the ease of doing busi- the country’s economic recovery quests, many ness in the country and the question of currency SAM Jonah, one of Ghana’s experts are not convinced that it will do much to reforms. three billionaires, is in Zim- change the local economy’s limp performance. Brains Muchemwa, Oxlink Capital’s chief babwe to scout for mining This comes after Finance minister Mthuli executive, was among those who bemoaned the opportunities. The Ashanti Ncube presented an $8,2 billion “austerity for fact that the budget had failed to take currency Goldfields chairman, with prosperity” budget last week and which author- considerations into account. an estimated net worth of ities hope will stabilise the country’s sickly econ- “By authorising the Zimbabwe Revenue US$1,2 billion, is expected omy. Authority to levy taxes in US dollars (USD) for to meet President Emmerson “I wish to congratulate @MthuliNcube on businesses selling in foreign currency, the gov- Mnangagwa and other Zimba- a historic, responsible and disciplined budget, ernment has accelerated the formal dualisation of bwean business people. Jonah which both cuts costs and contains crucial con- the economy,” he said. becomes the second African fidence building measures to stimulate economic “Resultantly, the one side of the economy that SCHWEPPES Zimbabwe managing director Charles Msi- billionaire to visit Zimbabwe growth,” Mnangagwa said in a tweet soon after will remain earning in real time gross settlement pa after attending an event in Harare recently. His company in recent years, after the con- the former banker had presented his fiscal vote. will witness massive erosion of working capital has announced that its subsidiary Beitbridge Juicing is tar- tinent’s richest man, Nigeria’s “The core message — austerity for prosperity or earnings, as it would need to contend with hav- geting to crush 25 500 tonnes of oranges and record $17,5 cement magnate Aliko Dan- — is a central component of our strategy to re- ing to convert their earnings to USD at a huge million revenue in the 2018 financial year. — Picture by gote, visited the country in structure, reform and rebuild, and I am confident discount in order to access USD priced goods and Freedom Mashava 2015. — Staff Reporter that in years to come, this will be seen as a pivotal services,” Muchemwa said. To Page 2 Page 2 | November 29-December 5 2018 The Financial Gazette National News Mugabe govt was erratic: China Tabitha Mutenga protected in terms of the Agreement Experts call for Features Editor on the Encouragement and Reciprocal Protection of Investments between the HINA has described former two governments. president Robert Mugabe’s “Immediately after the closure, Cgovernment as “erratic and some of the Chinese technicians and heavy-handed” in its takeover of dia- machinery were withdrawn and de- rand adoption mond mining operations in Chiadzwa, ployed in other African countries. That including Anjin Investments (Anjin)’s really is a sad fact and at that time I felt Ndakaziva Majaka concession, which policies were de- very sad because I really hoped that all Markets Editor terring capital inflows into Zimbabwe. the equipment could stay in Zimbabwe The sharp and unsual criticism and help in the diamond mining sector, IMBABWE should adopt the comes as the country has been and could help generate more revenue South African rand as an anchor wracked by a persistent tag for its lack and job opportunities,” Baogang said. currency to address the current of respect for property rights, and the “However, that is in the past. It is Z rule of law as well as policy inconsis- a past from which we can draw some economic crisis, while building re- serves for the introduction of a local tencies. lessons,” he said. currency within the next three years, In 2016, deposed Mugabe’s ad- Baogang, however, noted that Chi- economists said at a national stake- ministration forcibly merged Anjin na has confidence in president Emmer- holder indaba held this week. and other diamond miners ― Mbada son Mnangagwa’s administration. The southern African country is Diamonds, Marange Resources, Dia- “Now I can say that China has Experts say the adoption of the rand will help stabilise prices in the currently experiencing acute foreign mond Mining Company, Kusena, Gye strong confidence in the new govern- country and improve investor confidence. currency shortages caused by a huge Nyame, Jinan and DTZ Ozgeo ― into ment, we believe that their policies are trade deficit, high government expen- a State-owned enterprise, the Zimba- working, though it is not perfect. I sin- diture and illicit financial outflows, as a reserve currency, Chris Mugaga, next year. bwe Consolidated Diamond Company. cerely hope that it could improve and among other things. the Zimbabwe National Chamber of “After this, there is need to fi- Zhao Baogang, the acting Chinese perfect the policies and attract more Persistence Gwanyanya, an econ- Commerce’s chief executive, said the nalise a facility to support currency ambassador to Zimbabwe, said the investors…to Zimbabwe. I would be omist and banker, said the immediate psychological effect of the rand lay in convertibility, boost forex generation Anjin case was “a bad memory of saddened if the wrong policies, the bad adoption of the rand will help to stabi- price comparison with South Africa. by supply side interventions and then something that should never have hap- policies that drive investors away are lise prices in the country and improve “As a weaker currency, the rand introduce our own sovereign currency pened”, considering the strong bilater- implemented,” Baogang said. investor confidence. will also increase the country’s com- predicated on currency board or gold al relations between the two countries. Anjin ― a joint venture between “The recent currency instability petiveness,” Mugaga said. standard,” Gwanyanya said. “This is a vivid example of the the Anhui Foreign Economic Con- has increased the benefits of rand as As an immediate measure to con- Zimbabwe — which is battling policy inconsistencies of the former struction Co Ltd (Afecc) and Matt anchor currency. Never mind that it’s tain its present cash and foreign ex- acute cash shortages and foreign ex- government,” he told The Financial Bronze Enterprises, a Zimbabwe De- already in the basket of multiple cur- change woes, Zimbabwe needed to change scarcity — recorded a 15,4 Gazette in an interview. fence Forces company ― had an esti- rencies, the immediate benefit of the immediately convert Treasury Bills percentage point inflation jump to “The former government changed mated $225 million invested in the di- rand is to reduce the excess Real Time (TBs) into long-term instruments and 20,85 percent last month as Treasury policies and ... contributed in scaring amond operation, before government Gross Settlement (RTGS) balances by list the bonds on the Zimbabwe Stock slashed 2018 growth projections to away investors,” Baogang said, adding terminated its mining licence. 14 or so times to around $655 million Exchange (ZSE), Gwanyanya said. 3,1 percent from an initial four percent that “in terms of investor confidence, I Anjin’s portfolio in Zimbabwe in- as at 30 June 2019,” Gwanyanya told “A permanent solution is to even- forecast. believe that after the closure of the di- cludes the three-star Golden Peacock delegates at the national indaba organ- tually introduce our own sovereign Tony Hawkins, an economics pro- amond company, investor confidence Villa hotel in Mutare and some share- ised by Ziopra Consulting Group and currency and the following steps are fessor, pointed out that the country was affected”. holding in Long Cheng Plaza mall The Financial Gazette. prescribed; firstly, the country needs to was going through re-dollarisation, By shutting down Anjin, he add- through Afecc Highlighting that the rand would convert TBs into long term bonds, list highlighting it needed at least 10 years ed, the Zimbabwean government (See full interview on page 7) make it easy to support the local cur- these bonds on the ZSE then change to stabilise.