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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. breached Chinese shareholders’ rights [email protected] rency with the United States dollar the anchor currency to rand by June [email protected] No end in sight to Zimbabwe’s distress

From Page 1 proposal of a series of cost-cutting measures. We, duty on fuel is very small and so I do not think it The trained economist also said given that the however, place greater emphasis on the strict ad- will have much of an impact,” he said. government was the single largest employer, the herence to these proposals,” Van Der Linde said. “The elephant in the room is the currency real value of the budgeted $4 billion “expendi- “If there is to be meaningful change in Zim- crisis which is causing hyper inflation which he ture on wages for the civil service will be eroded babwe, this new administration needs to stay true has not addressed. We must demonetise the bond significantly by end April next year”. to its promises of fixing the mismanaged econo- note and use foreign currencies for now in order “There will be massive pressure on the gov- my by doing its part on the fiscal front,” he said. to stabilise the economy,” Chikohora said. ernment to hike wages. Therefore, the projected Tendai Biti, a former Finance minister during “Otherwise the numbers he (Ncube) present- budget deficit of $1,6 billion is understated, more the country’s short-lived coalition government, ed will be meaningless because we don't know so at a time that the government is expecting in- described Ncube’s budget as “cowardly”. where prices will be next year,” he said. flation to average above 20 percent in 2019 — “The budget is cowardly. It does not address “It does not come as a surprise that the Min- unless it has made an unrealistic assumption that structural issues … The currency of use and ex- istry of Finance lowered its economic growth those supplying goods and services to the State change rate, financial mess and currency issue, forecast. These growth targets were simply un- will not increase their prices in line with infla- serious fiscal consolidation measures, debt relief attainable given Zimbabwe’s current economic tion,” Muchemwa added. and political reform and the two percent tax,” he environment,” NKC said further. Jee-A Van Der Linde, another economist said. “We expect the real GDP growth rate to be with NKC Economics, was clear that the budget “It plunges Zimbabwe into further econom- even lower over the next few years, due to the would not address Zimbabwe’s underlying prob- ic turmoil,” Biti, an opposition kingpin, said on detrimental impact that the currency shortage lems. social media. continues to have on the primary and secondary “Following yet another year of imprudent Trust Chikohora, a former Zimbabwe Na- sectors, as well as economic activity in general,” government spending, the Mnangagwa adminis- tional Chamber of Commerce president and the research firm said. tration now wants to try and convince investors economist, said Ncube’s decision to ignore the This comes as NKC has reclassified Zim- and ordinary Zimbabweans that this administra- country’s currency issue would haunt the econ- babwe as one of sub-Saharan Africa’s “riskiest tion will revive a once-promising economy after omy. investment destinations due to economic volatil- decades of economic decay,” he said. “The budget was fair and it gave some pos- ity”. (See also pages 8 and 27) “They believe this is attainable through the itive statements of intent. The increase in excise [email protected] The Financial Gazette November 29-December 5 2018 | Page 3 National News Banks jittery over plans to convert TBs

Ndakaziva Majaka a knock. The discount rate will also be worth $2, 5 billion for the period January to August 2018. Markets Editor huge,” the DPC executive said at a nation- However, Togarepi argued that the move to convert the al stakeholder indaba organized by Ziopra securities into long-term instruments was also going to af- INANCE minister Mthuli Ncube’s decision to con- Consulting Group and The Financial Ga- fect asset composition for most banks. vert treasury bills (TBs) into long term securities zette. “The value of the TBs is going to be deflated by dis- Fmay seriously undermine the banking industry’s Togarepi was responding to a paper count rate with liabilities remaining the same while assets profitability, market experts warned. presented by Persistence Gwanyanya, an are depleted. This is because the assets are now being dis- Taurai Togarepi, the Deposit Protection Corporation economist and banker, on the conversion posed at a discount. (DPC)’s manager for policy research, said local banks of the TBs used by government to fund its “It is now also going to be difficult to trade on the sec- could be in for a bumpy ride if government moves ahead programmes into long-term instruments. ondary market so banks are going to be forced to hold. Is with its policy of converting TBs held by banks into a 10- “The new bonds can have special fea- this then an admission by government that they are going year bond. tures such as prescribed asset status and to default?” Togarepi said. “They (banks) are in for a hard time. They will not ad- tax exception to make the bonds attractive. In the past, market watchers have raised concern over mit it, but it is the reality. They are basically talking of con- The acceptance of this proposal is subject TB holdings, warning that banks were thriving under false verting a two year asset and spread interest income over a to inflation being contained to single digit “In order to manage maturities of the security, and cautioning the Reserve Bank of Zimbabwe long period. Banks will obviously get less per annum and levels,” Gwanyanya said. current stock of TBs, Treasury is explor- governor John Mangudya (pictured) against financing fis- affect liquidity on the part of banks. By his own admission, Ncube last week ing options for restructuring the Treasury cal imbalances using TBs. “It will also affect profitability. The coupon will now pointed out that the government securi- bills to longer tenure in consultations with In the last five years, Zimbabwe’s domestic debt has be paid once per annum with income spread over a long ties had flooded the market, posing risks market players,” Ncube said presenting his risen by over 1 400 percent from $442 million to $6,3 bil- period of time. If TBs are issued via the auction system, to macro-economic stability as a result of 2019 National Budget last week. lion — the fastest in the history of the country. banks will then need to mark their TBs and they will take money supply growth. Government issued TBs and bonds [email protected] Dodgy oil deal costs Nigeria $6bn

MILAN court is considering corruption charges against Eni and Shell in a controversial oil deal that Aled to Nigeria losing an estimated $6 billion. The campaign group Global Witness has calculated the OPL 245 deal in 2011 deprived Nigeria of double its annual education and healthcare budget. Eni and Shell are accused of knowing the money they paid to Nigeria would be used for bribes. The Italian and Anglo-Dutch energy giants deny any wrongdoing. The unfolding scandal has involved ex-MI6 officers, America’s Federal Bureau of Investigations, former presi- dent Goodluck Jonathan as well as current and former senior executives at the two oil companies. Dan Etete, the ex-Nigerian oil minister, was found guilty of money laundering by a French court and it emerged he used illicit funds to buy a speed boat, and a chateau. It is also claimed he had five tonnes of $100 bills. The analysis was carried out by Resources for Develop- ment Consulting on behalf of Global Witness, RE:Common and The Corner. The estimated losses were calculated using an oil price of $70 a barrel as a basis. Eni has criticised the way it was calculated because it ignores the possibility that Nigeria had the right to revise the deal to claim a 50 percent share of the production revenues. “We discovered that Shell had constructed a deal that cut Nigeria out of their share of profit oil from the block,” Ava Lee, a Global Witness official, said, adding the “deal must be cancelled”. “This amount of money would be enough to educate six million teachers in Nigeria. It really can’t be underestimated just how big a deal this could be for a country… (with) the highest rates of extreme poverty in the world.” Nigeria is Africa’s richest economy, but millions remain poor despite the country having large gas and oil resources. Eni and Shell wanted to acquire the concession because it is estimated to contain nine billion barrels of oil. But the process of how they secured the contract is dogged by claims of corruption. The Italian court is weighing evidence of how Etete awarded OPL 245 to Malabu, a company he secretly con- trolled. He is accused of paying bribes to others, including Jon- athan, to ensure that process went smoothly. Shell and Eni are accused of knowing that the $1,1 bil- lion exploration rights fee would be used for bribes, accord- ing to e-mails obtained by investigators. Eni has also denied any wrongdoing and it questions the competence of the experts commissioned by Global Witness as well as raising the possibility that the report is defamatory. “Global Witness… and Re: Common had requested twice to be admitted as aggrieved parties in the Milan pro- ceedings. On both occasions, the request was firmly denied by the Tribunal of Milan.” Eni also said it “continues to reject any allegation of im- propriety or irregularity in connection with this transaction”. Campaigners believe the outcome of the Milan trial will cause an earthquake through the global oil and gas industry. The contrast between the way Italy deals with migrants and the actions of one of its biggest companies has been raised by Antonio Tricarico of Re: Common. — BBC/Fin- Gaz Page 4 | November 29-December 5 2018 The Financial Gazette National News RioZim’s Sengwa DiDG plans to project on track modernise

John Kachembere headquarters in Beijing on October 29, gether with its subsidiary Sino Hydro News Editor 2018. and promised to complete the project “Both parties agreed to apply for within the next four years. ORK at RioZim’s $2 billion a special economic zone status for the Energy is one of China’s favou- Zim railway Sengwa coal project is ex- project in order to establish an export rite projects as the world’s number Wpected to commence early processing industrial project,” a source two economy invested $25,6 billion next year after the resources group said. in energy projects around the world John Kachembere to deal with exactly such issues and put and Power China International Group Another source added that Power in 2017, encompassing investments News Editor in a long term sustainable solution that (Power China) signed a framework China confirmed its commitment to in power generation, oil and coal ex- pre-invests, maintains and protects the agreement last week. invest in the project — to be known as traction. Sino Hydro recently complet- HE Diaspora Infrastructure De- Zimbabwean rail infrastructure from The Financial Gazette is reliably Sengwa Coal Thermal Plant (Private) ed the $530 million Kariba South ex- velopment Group (DIDG), which risks associated with extreme weather informed that Power China’s assistant Limited — as a joint shareholder with tension and is currently working on the won a $400 million tender to re- patterns that cause this sort of occur- president Wu Yifeng and RioZim’s RioZim. $1,2 billion Hwange 7 and 8 thermal T vive the National Railways of Zimba- rence,” he said. chief executive Bheki Nkomo signed “The share structure will be mutu- plant in Zimbabwe. bwe (NRZ), says it is investing towards “In our plans with NRZ and Trans- the agreement in Harare on November ally finalised and stipulated in the sub- The Sengwa project has guaranteed the modernisation of Zimbabwe’s rail- net, we are building what we call the 22, 2018 that will pave way for the stantive agreements, which are expect- coal supplies from RioZim’s conces- way system. vital works programme, which places construction of two 350 megawatts ed to be inked in early 2019.” sion, which has in excess of two billion Donovan Chimhandamba, the DIDG focus on rail infrastructure sections that (MW) coal-fired power plants and The latest development will come tonnes of proven reserves. executive chairman, said the investment have the most traffic and worst structur- 400Kv power lines (400km) under the as good news to President Emmerson Market experts believe that if the firm has a clear programme to recapital- al integrity challenges over the first two first phase. Mnangagwa’s government, which is project, which entails development ise and modernise rail infrastructure in to three years. Most of these sections re- When completed, the whole proj- scrounging for investment to take the of a coal mine, power station, a water Zimbabwe to make sure that train ser- quire sleepers and the general track for- ect is expected to generate 2400MW, economy forward. pipeline and a power transmission line vices are reliable and safe. mation urgently rehabilitated. Also, as which will be connected to the national The Sengwa project was first moot- to the national grid, comes to fruition, “We are fully aware of the current you are aware, we are now in a position grid in a move that is expected to meet ed in 1993 with an initial capacity of it would help Zimbabwe in dealing challenges and derailments happening to provide locally manufactured sleep- the country’s electricity demand of ap- 1 400MW but stalled due to lack of with intermittent power cuts, while across all the rail corridors at large, ers through Fort Concrete in Gweru to proximately 2200MW. funding. Several international firms excess electricity would be exported. which generally can be anticipated support NRZ efforts in the interim with People who are familiar with Ri- from India, China, Namibia and SA The land-locked country – current- when a rail network with structural fixing some of these rail sections that oZim’s operations said the agreement expressed interest in the Sengwa plant ly producing just above 1 000MW integrity challenges is exposed to ex- have structural integrity challenges.” was signed after delegates from Power since 2009, but nothing materialized. against demand of 2 200MW — im- treme weather conditions such as high The DIDG boss further indicated China had toured Sengwa on October However, Power China — which ports electricity from its neighbours — temperatures and rain. The extent of de- that the group, as part of its first $400 15, 2018 and RioZim management recorded $54 billion in revenue last Mozambique and South Africa. railements would be far less if the rail million spend, was going to re-tool the had visited the Chinese electric firm’s year — came on board this year to- [email protected] system and infrastructure is fully fund- NRZ workshops such that they have ca- ed, maintained, capitalised and rehabil- pacity not only to maintain its network itated,” he told The Financial Gazette. and equipment, but also to provide same This was after President Emmerson capacity to other regional rail operators. Mnangagwa had bemoaned the coun- “Amid some fears and concerns re- try’s rapidly deteriorating infrastruc- garding progress on the transaction, we ture, which he said is hampering invest- have made significant progress regard- ment and development. ing certain unavoidable processes re- “More work needs to be done on quired to be able to implement the proj- our network which is slowing down ect. Projects of this size and magnitude rail traffic, and causing frequent derail- are not an overnight success as they ments. Current rail speeds of 30-50km are generally long and invisible to the per hour cannot make us an efficient public since they involve dealing with economy, let alone a preferred transport government approvals, contracting, hub for the region. transition matters and most importantly “Equally, the NRZ workshops must banks who are the ultimate funders of be re-equipped so we are able to service the project. the moving parts of the whole network,” “We are cognisant of the urgency and he said. pressure we have and we have adopted Chimhandamba said the group was an approach that looks at beefing up working on raising more capital to ade- the transitioning period with solutions BIGTIME Strategic Group chief executive Douglas Zimbango (second from right) accompanied by the group quately address the country’s infrastruc- around the infrastructure rehabilitation corporate affairs director Alson Darikayi (left), receives an award from the Deputy minister of Industry and ture gaps. as we bed down most of these back- Commerce Raji Modi, who was the guest of honour at the Zimbabwe National Annual Community Social “The project we have embarked on ground processes,” Chimhandamba Responsibility awards ceremony at Rainbow Towers hotel in Harare last week. — Picture by Freedom Mashava with NRZ and Transnet is essentially added [email protected] Zim prosperity rating rises NSSA ‘engaged’ HCZ after police report

Adelaide Moyo social progress that has led to oppression during the 2008 HE National Social Se- And if HCZ has no ownership how had sought to remind NSSA and Business Reporter this rise in ranking. Gains in the election, the report noted. curity Authority (NSSA) will it (sic) able to pass transfer of enforce a dispute resolution pro- country’s judicial quality, po- However, the following years Tscrambled to acknowledge the completed units to NSSA,” he cess provided in clause 27:2 of the IMBABWE experienced litical freedoms, and improve- marked the first moderate im- Housing Corporation of Zimba- said, adding further that he wanted parties’ July 2017 contract, and a surprise rise in pros- ments in life expectancy have provements, with hyperinflation bwe (HCZ)’s dispute resolution the foreign-based investor “to ad- principal agreement, the NSSA hi- perity over the past de- represented important initial finally beginning to recede, life process at the Commercial Arbi- dress the issues raised before any erarchy’s counter measures or ac- Z tration Centre (CAC) in July ― further engagement”. tions have inadvertently fuelled a cade, despite a fragile economy steps toward a more prosperous expectancy rising and the 2013 buffeted by foreign currency future,” said a report on the 12th elections being significantly nearly two months after laying a Mungwariri’s dispatch not only perception that the charges against shortages and price hikes that edition of the index released less violent. criminal charge against the prop- came two days before another Molai and company were pre-con- have recently eroded incomes, yesterday. “The constitutional term erty development’s directors, doc- missive to Zimnat Lion Insurance ceived. a prosperity index by a British “Despite being close to the limit passed with an over- uments show. Company (Zimnat) detailing NS- Mungwariri’s rejoinder also firm has shown. bottom fifth in the Prosperity whelming majority, resulting This also comes as the statutory SA’s intention to call up the $16 flew in the face of the fact that he The country was 118th out Index, Zimbabwe is a fragile in modest gains in political pensions fund has been entangled million performance guarantee, was part of a delegation that was of 149 Global Prosperity In- riser in absolute prosperity over freedom and democracy level in other embarrassing gaffes such but 65 days after he had lodged a supposed to receive the first batch dex countries on the Prosperity the last decade, rising 19 places scores large enough by 2014 to as the firing and reinstatement of criminal complaint against Dug- of 53 completed units to have been Index, a tool meant to help for from 137th in 2008 to 118th in drive Zimbabwe out of the bot- investments director David Mak- gan, Adam Molai, his former handed over on March 15 this leaders around the world set this year’s rankings. The coun- tom 10 for Governance for the wara, and which decisions were chairman Robin Vela, Kurauone year and HCZ maintains it was their agendas for growth and try’s history has been marred by first time in the Index’s history. all marshalled or carried by the Chihota and Alec Nyatanga. still poised to deliver on its obli- development, according to Bar- economic crises, autocratic rule, “In 2015 Freedom House then acting general manager Em- “The complainant in this gations since it has an additional oness Philippa Stroud, chief political violence, the scourge improved Zimbabwe’s civil lib- merson Mungwariri. matter is… NSSA represented 114 housing structures, nearly 130 executive officer Legatum In- of endemic disease, and sys- erties score, following court rul- “We acknowledge receipt of by… Mungwariri, the acting GM. completed foundations and 450 stitute, producer of the index. tematic oppression of political ings against Zanu-PF in several your letter dated 16 July 2018 ti- Accused Adam Molai … is the fully serviced stands on site. Zimbabwe, which has risen dissidents by Zanu-PF militia. prominent cases, suggesting tled ‘Dispute Resolution Process’ chairman and director to … HCZ, Even, though HCZ and its di- from 137th in 2008 to 118th in Despite this recent history, Zim- greater judicial independence and highlight the following,” which is a duly registered compa- rectors are reeling from a number this year’s index, was 16th out babwe’s relative development (although the score dropped Mungwariri said in a July 23 letter ny according to the laws of Zim- of criminal charges, the company of 40 countries in Sub-Saharan serves as a lesson that even the again as a result of last year’s to Stephen Duggan’s HCZ. babwe. Accused and … Vela are has obtained a High Court inter- Africa. most fragile of states are capa- coup). Judicial independence as “The copy of the title deed re- former school mates who know dict to prevent NSSA from can- “While it is still close to the ble of some positive reform and reported by business executives ferred to has not been furnished as each other very well,” read a May celling the Caledonia bond from bottom fifth and currently in a social progress,” the report said. in Zimbabwe has also been im- said … From the documents sup- 18 Harare Central affidavit and Zimnat, as the matter is still pend- fragile position, the country has Zimbabwe was at the peak proving. ” it said. plied, it is clear that HCZ has not case outline. ing before the CAC. ― Staff Writ- seen some positive reform and of hyperinflation and violent [email protected] acquired ownership of the land. While Duggan’s July 16 letter er [email protected] The Financial Gazette November 29-December 5 2018 | Page 5 Page 6 | November 29-December 5 2018 The Financial Gazette National News Diamond experts head for Zim 1 Bodle Road Eastlea Phone: 0242 799 542 www.alexcourt.co.zw Shame Makoshori “The peer review will help Zimbabwe to operated in Chiadzwa, had lined up initiatives Trusted since 1987 Companies Editor further strengthen and continuously improve to promote the sector. in implementing and enforcing KPCS and best “The State diamond producer has in the IMBABWE, which is fi ghting to con- practices across the diamond value chain. A fi rst two years of existence implemented a vince global diamond markets that new diamond policy has been crafted and is number of projects and programmes that pro- INDUSTRIAL, Zgems from its Chiadzwa gem fi elds are expected to be announced by the end of No- mote community development and empower- clean, will next year host Kimberley Process vember 2018. The policy will give clarity and ment,” he said. COMMERCIAL Certifi cation Scheme (KPCS) experts to carry guidance on investment in exploration, mining This week, Moris Mpofu, the ZCDC chief out a review of the industry and recommend giving due regard to benefi ciation, responsible executive offi cer, told The Financial Gazette areas of improvement. environmental management and community that his team was building the diamond pro- & The team will arrive after the launch of a social investment,” Chitando said. ducer into a world class miner free of contro- diamond policy that is expected to provide KPCS refers to the Kimberley Process versy. RESIDENTIAL clarity on several issues affecting the diamond Certifi cation Scheme, a process that was es- Mpofu said as a State owned company, sector. tablished in 2000 by the United Nations to ZCDC must lead by example. Global gem markets avoid trading with prevent confl ict diamonds from entering the “We are 100 percent State owned and we PROPERTIES confl ict zones, such as diamonds originating mainstream rough diamonds market. should lead by example,” Mpofu said while from war torn regions and countries where A number of countries have volunteered receiving the top sustainable company of the FOR SALE children are exploited during extraction. for what is termed review visit inspections, or year award from the Corporate Social Respon- Writing in the inaugural edition of the peer reviews, to be carried out by teams from sibility Network in Harare.

1. TOWN HOUSE 16. Concrete Business Newsletter on Sustainability, an in-house pub- other diamond-rich countries, to ensure that “As we increase production, we should Eastlea 1500m2 Premix, business lication of the Zimbabwe Consolidated Dia- they comply with the requirements of the pro- also demonstrate development in the areas Strategically located For sale. Property mond Company (ZCDC), Mines and Mining cess and help curb the fl ow of illicit diamond that we mine. We are building a world class in main Road and equipment that 25 roomed solid can do 60 cubes Of Development Minister, Winston Chitando, trading, the so-called blood diamonds. company that is supposed to penetrate inter- corporate concrete per hour, said the aim was to open the sector to the team Chitando said as part of ongoing efforts to national markets so our buyers must know that Suitable for o€ces, batching plant with surgery etc all accessories and hear their views. build a transparent diamond industry, ZCDC, our diamonds are coming from a sanitised in- $3 million RTGs $1.6 million USD “Zimbabwe has invited a peer review visit a State controlled outfi t established through stitution,” he said. , 2. MSASA 17. Rydale Ridge in quarter three 2019,” Chitando said. Facing Mutare road Stands for the forced merger of seven private fi rms which newsdesk@fi ngaz.co.zw 89 O€ces Schools, Primary and Secondary 54 parking bays, Commercial Stand fuel tanks, suitable with approved plans for corporate serviced 20 Hectares o€ces, banks. Well maintained $4 million USD $1.6 million USD 18. CBD 3. MSASA Stand 2 300 sqm Surface Wilmar wants total control Warehouse Commercial stands opposite 3.7 acres Shame Makoshori shareholder, SR Armando, says the present ar- 2018 outlining several factors affecting its busi- Copacabana Consists of o€ces Terminus, fenced, Companies Editor rangement whereby the State controlled Cotton ness. Warehouses open deeds space Company of Zimbabwe (Cottco) has steward- “We have presented to government our pro- $1.6 million USD A must to view GRO industrial fi rm Surface Wilmar ship over the sector had failed. posal to manage cotton farming and trading,” Open o ers USD says government should liberalise the IDC controls 10 percent shareholding in the Wilmar said in a section of the report titled: “Se- 4. MT HAMPDEN RESIDENTIAL 69 hectares Walled PROPERTIES cotton subsector and allow private play- business. riousness of Government on Agriculture Funding and gated 2km from A ers. The company’s proposals obtained by The — a Waste of Time, Money and Opportunity”. Westgate Shopping FOR SALE Mall Surface Wilmar, a joint venture between the Financial Gazette this week were presented in The company noted that state subsidies into $10 Million RTGs 1. Borrowdale Industrial Development Corporation of Zimba- a 13-page report on its operations presented to Cottco, the subject of recent mismanagement 5. Msasa Magnificent double Warehouse – storey bwe (IDC) and its Mauritius-based 90 percent Finance Minister Mthuli Ncube on November 2, and fraud claims, were a waste of fi nancial re- 4000sqm Mediterranean house sources, just as command Consists of o€ce situated and warehousing On 1.96 acres of land agricultural interventions Space sitting on full with prolific were unsustainable for a title deed Borehole. 6 beds a government facing a sea of Ex Bhadella next to must to view, in Metro Peech A very quiet close, 2 problems. $3 million USD min drive to It slammed govern- 6. Msasa Sam Levy Village 89 o€ces & 54 $1 million USD ment’s strategy of deploy- parking bays facing 2. Borrowdale Vainona ing free inputs to farmers Mutare Rd well A majestic maintained and luxurious countrywide, saying its $1.6 million USD Mediterranean purse was overstretched. 7. Workington Double storey home The inputs are bank- Warehouse 10 quite suitable for an 000m2 Recently Embassy or as a rolled through schemes built neat family home. 5 like the presidential input $2.2 million USD bedrooms, Pool, borehole, scheme and command ag- 8. Ardbennie electric gated, has riculture. 6500m2, Warehouse many extras and o€ces Behind Including a granny’s Government has then Quest Motors Simon cottage with lounge directed farmers to sell Mazorodze and kitchen. A must $490K USD see. cotton output from the 9. Willowvale $650K USD schemes to Cottco, as part Tobacco Auction 3. Glen Lorne of a plan to revive the state Floor 7000sqm floor Folly John Crescent space Very serious sellers, enterprise, whose execu- $3.5 million USD price negotiable tives were arraigned before All o¡ers to be COMMERCIAL STANDS submitted to seller the courts two weeks ago, 10. Msasa 3000m2 their Consideration, charged with fraud. facing Mutare Road o¡ers grand split $300k USD level “Government still in- 11. Simon Mazorodze 1.9 4 storey luxurious, sists on free inputs and hectares Waterfalls breath taking views $500k USD 5 beds, kitchen, price subsidies on output. 12. Mt Hampden 69 lounge, anti smash Does government have hectares walled & and grab the money? Government gated $4m USD Windows and sliding 13. Mt Hampden prime doors walled and is funding Cottco-until flat land facing major security when? Free unsupervised road lomugundi 192 Mesh with 25 strand Hectares $10m electric fenced, inputs do not increase out- 14. Glen-Lorne 22 alarmed put. Can government af- Hectors suitable 32 000 litre storage for shopping water tanks and ford this?” the paper asked. mall school, golf filtration system + Surface Wilmar’s tenta- course, housing municipal water. development $3m $950K USD cles span from fast moving 15. FUEL DEPOT 4. Greendale Athlone consumer goods produc- Marondera 8 beds currently as a Industrial, stone lodge on 4 000 sqm tion through Olivine In- throw away from $290K USD dustries to stock feed man- Mutare Rd, consists 5. Eastlea Samora of Total Property Neat as a pin 3 beds ufacturing and contract size, 30 000sqm on 1 500 sqm farming. Diesel storage 717 $300K USD It says it is well placed 000 litres 6. Eastlea (Pennywise) Petrol storage 165 3 beds recently to drive the recovery of 000 litres renovated on 1 500 the cotton sector, which LPG storage 90cm sqm upright $170K USD can be given impetus if LPG bottling plant 7. Highlands 4 000sqm government helps the fi rm Water tank 55 000 Glenara Rd litres $200K USD to access foreign curren- Lube shed, o€ce 8. Alexandra Park cy to pay debts and other building, fenced Luxurious double commitments. In August And gated, railway storey 6 beds. This is sliding can take 7 a family home, government said it would tankers Pool, all weather boost its interventions Inside and outside tennis court, Many with deeds extras into the agricultural sector $2.5 million RTGs $850K USD through a presidential input scheme targeting 400 000 For an appointment & viewing Kindly contact Benjamin cotton farmers this season. 0713 317 544 / 0772 955 510 newsdesk@fi ngaz.co.zw The Financial Gazette Page 7 | November 29-December 5 2018

China speaks on Zim mega deals

OWARDS the end of former president violate some environmental laws, but they are not Robert Mugabe’s rule, there were reports “I can feel the frustra- the mainstream of the cooperation. that China was reluctant to financially tion when it comes to TM: China has been accused of seizing na- T the issue of exporting tional assets in Zambia, is that true? bail out Zimbabwe because of its bad debtor record. This, it has been alleged, was the rea- raw products to Chi- ZB: It is not. Some Zimbabwean friends also na. It needs to stop! asked me this question and I said to them, here son why Mugabe’s multi-million dollar “mega in Zimbabwe you also owe us but we have never deals” inked during his visit to China in 2014 But learning from China’s experiences, seized your assets or airports. This is total fabrica- never materialised until his departure. Under tion. I want to make this clear, China will never the new dispensation, Zimbabwe is still pursu- we also had the same do that. We try to find solutions. We never seize ing funding for mega infrastructure and energy problem at the be- assets. China will continue to support the develop- deals with the Asian economic giant. The Finan- ginning of our devel- ment of Zimbabwe, we provide loans and through cial Gazette’s Features Editor Tabitha Mutenga opment, we exported the development of the country, Zimbabwe will (TM) interviewed acting Chinese ambassador to raw materials. But we earn more revenue and more foreign currency to Zimbabwe, Zhao Baogang (ZB), to establish the continued doing that pay back the loans. Though we have a debt issue, as it allowed us to earn we never force our friends to repay the debts. For status of the “mega deals” and state of economic example in Zimbabwe, when President Mnangag- relations between the long-time allies. Below are foreign currency and accumulate capital wa visited China in April this year, he said some excerpts from the interview: projects in Zimbabwe needed loans from China, which allowed us to in- though at the time Zimbabwe had arrears with TM: What is the Chinese government’s view on Zim- vest in factories.” financial institutions and if we had stuck to the babwe’s new political dispensation? rules of the financial institutions, we would not be ZB: We are very supportive of the choice of the Zim- able to provide the Zimbabwean government with babwean people, which came immediately after the mili- more loans, but we considered our friendship and tary intervention in November 2017. President Emmerson made the decision to continue supporting Zim- Mnangagwa was sworn in as president and immediately a babwe and provide loans for at least two or three new cabinet was appointed. Some members of the cabinet projects, the RGM International Airport, Hwange are young men and professionally experienced. This reflects Thermal Power Station and the NetOne phase 3 well on the determination…to transform Zimbabwe from project. The NetOne project is still under consid- being an underdeveloped country into a developed nation. eration by the financial institution. Mnangagwa also proposes Vision 2030 to turn around the TM: Zimbabwe is exporting raw materials country and we are very supportive of the vision. The new to China instead of finished products. How government proposes a raft of measures to carry out a lot of best can the two countries address this issue? reforms to promote the development of the country. I think ZB: I can feel the frustration when it comes that after 37 years of rule by the former president, the econ- which really helps in boosting the country’s tour- resources in most African countries, can you to the issue of exporting raw products to China. omy was not in very good shape and we have to give the ism. We also have completed the Kariba South comment? It needs to stop! But learning from China’s ex- new government time. I believe that with the leadership of Extension project, and we all have to agree that ZB: Plundering resources? No! There is some periences, we also had the same problem at the Emmerson Mnangagwa, Zimbabwe will recover and regain it helps reduce the country’s electricity import kind of baseless accusation that we “plunder” re- beginning of our development, we exported raw its past glory. bill by adding 300 megawatts to the national sources. I can say that China has been working materials. But we continued doing that as it al- TM: Has your longstanding relationship with Zimba- grid. This project helps the country save a lot of with most African countries and we help them lowed us to earn foreign currency and accumulate bwe been a win-win? foreign currency and power cuts have also been in extracting those resources. African countries capital which allowed us to invest in factories. ZB: China has developed a number of cooperations with reduced. The ground-breaking ceremony for the have abundant natural resources and this is their Later we started processing the raw materials into African countries that are mutually beneficial. We never pro- RGM International Airport has been done and I economic advantage for their development. They finished goods for export. I can assure you that the mote a kind of relationship that just benefits China. In Zim- believe Harare will soon become the regional hub have the resources, but they do not have the tech- export of raw materials is the first step of develop- babwe, the relation brings benefits to both countries. From of aviation. I know that there is some criticism but nology and capital and so they have bilateral co- ment. You cannot just jump from doing nothing the point of view of Zimbabwe, politically we support each I hope that those people do not have ill intentions, operation with China. In many African countries, to the exportation of manufactured goods. Guard other. We support Zimbabwe as you saw in 2008 that we ve- as they do not know what is going on. We have we have very successful cooperations, for exam- against spending the accumulated capital, neglect- toed the United Nations Security Council resolution to place done many projects in this country, but some peo- ple in Angola, Nigeria, Equatorial Guinea, Ghana, ing building of factories. Zimbabwe under sanctions. Economically, we provide assis- ple choose not to see it. Some deals are also not Ethiopia and Zimbabwe. TM: Your last words to Zimbabweans? tance to the government and this has been extended socially materialising. We have to know the difference be- With such relations, some parties may be jeal- ZB: I would like to take this opportunity to through the provision of food aid. We also provide conces- tween Memorandum of Understandings (MoUs) ous and make such groundless accusations. They call on the media in Zimbabwe to be more pos- sional loans and we have implemented various projects such and agreements. Sometimes we sign MoUs and want to drive a wedge between us; they want to itive when reporting about Zimbabwe. Construc- as the Kariba South Extension project, Hwange Thermal sometimes we sign agreements. Agreements create some kind of suspicion between China and tive reportage of the country, of the economy and Power Station and the Robert Gabriel Mugabe (RGM) Inter- mean that the deal is binding and it has to be done. African countries. Who is accusing China? Who also of the bilateral relationship between Zimba- national Airport. At the end of 2016, we commissioned the MoUs, however, only convey a message that is doing substantial work on the ground to help bwe and China will benefit Zimbabwe. Balanced Victoria Falls International Airport. China is also a beneficia- parties are willing to have more cooperation in a the development of Africa? No top African lead- views will assist Zimbabwe in attracting investors, ry in the cooperation. Zimbabwe has been supportive polit- certain sector. ers have accused China of plundering resources in who you know are really sensitive when it comes ically on the Taiwan and South China Sea issue. Zimbabwe TM: Of the areas that Chinese investors are Africa; it is only the western media. They always to the media. A negative perception can damage has been supporting China. Economically, China imports involved in, which are the most profitable, and talk about the environment. Take Zimbabwe for the country, it sends bad signals to potential inves- from Zimbabwe over $500 million worth of tobacco every which ones have not been good? example, we have so many projects, from agri- tors. They will move to Mozambique or Zambia, year. China also has some investors in Zimbabwe who are ZB: China has some investments in Zimba- culture to energy, and all these projects are suc- Kenya and Nigeria. I sincerely hope that the local involved in tourism, manufacturing and mining. We actually bwe and they are prospering as Zimbabwe has cessfully implemented. Whenever we do these media plays a constructive role in the promotion export less to Zimbabwe than we import. Zimbabwe enjoys great potential for investment. In the past, inves- projects we always take the environmental impact of the economy of the country. Certainly, we ac- some kind of surplus in its trade with China. tors feared the inconsistency of the policy but with into consideration. We always work with the En- cept the scrutiny of the media, but positive report- TM: Let’s talk about the so-called “mega deals” the new government, many people are interested vironment Management Agency and the Envi- age is good for the country. We are satisfied with signed between Zimbabwe and China. in investing in Zimbabwe. A lot has been done to ronment ministry. Whatever we are doing here the status quo of the relations between China and ZB: We have signed mega deals and we see that many improve the economic environment and ease of is in line with the law and generally there are no Zimbabwe. Let’s work together to take care of the of them are materialising. At Victoria Falls International doing business. problems and those accusations are groundless. I relations and ensure that it is on the right course. Airport, the handling capacity has increased to 2,5 million, TM: China has been accused of plundering cannot rule out one or two cases really exist who [email protected] Page 8 | November 29-December 5 2018 The Financial Gazette Leader Page

News Worth Knowing Ncube fiddles as Zim burns N THE day Finance minister Mthuli Ncube unveiled his budget last week, black market rates and basic commodity prices soared in tandem Owith a trajectory they have maintained ever since the military interven- tion of November last year. The Zimbabwe Stock Exchange also spiked Friday after a streak of four-day losses just before the vote, whose ridiculous proposals included traffic fines be- yond the majority's basic monthly incomes. And the reaction to the national budget was one of panic. While Ncube un- veiled a few measures to buttress his austerity regime ― a five percent cut in ministers and the presidency’s salaries (which makes for good optics, and public relations since many in this bracket earn their money through allowances and fuel coupons) ― the retirement of aged civil servants, embassy rationalisations and measures to flush out ghost workers may have not been enough to deal with an economic malaise manifesting itself in many ways. It did little to nip the scourge of price hikes and currency problems in the bud. In fact, a number of Ncube’s measures are likely to fuel inflation and further erode incomes. For example, the hike in excise duty on paraffin and diesel by seven cents per litre, and that of petrol by an almost similar amount, is likely to result in a knock-on effect on commodity prices due to the increased cost of logistics and production. It will also impoverish poor, unelectrified households, which depend on par- affin for cooking. A boy plays on the glass of Thailand's first skywalk. The 314-metre high platform and rooftop bar on top Crucially, the $8,2 billion budget failed to deal with the currency crisis. Ncu- of the capital Bangkok's 78-storey King Power Mahanakhon building, offers a bird's eye view of the city. be, who has previously spoken strongly against the bond note and bank balances Picture by BBC emanating from the real time gross settlement (RTGS) platform, arguing that the surrogate currency is bad money chasing away good cash, surprisingly sought to give an impression that the bond notes were at par with the greenback in terms of exchange rate. Yet industry and commerce, and the general public have been unable to get foreign currency from the banks. The black market has become the major Ncube budget statement source of foreign currency at rates determined by demand and supply. Ncube maintained a multi-currency regime, insisting the US dollar, the cur- rency used for the national budget, would be the reference currency. But there is a paradox: trading in foreign currency is now illegal and is pun- ishable by up to 10 years jail time. Yet importers of vehicles and a host of other promising, but… products are now expected to pay duty in foreign currency. Where will they get this if they can’t get it from the banks? Why is government rejecting its own cur- rency, forced on the people after government ransacked US dollar bank accounts INANCE minister Mthuli lifetime savings due to hyperinfla- then the belt tightening should have to fund profligate spending? Ncube last week present- tion. started at the top. Countries such Moreover, businesses charging US dollars to the public are also required to ed one of the best national At the moment, citizens, who as Malaysia, Saudi Arabia, Liberia, pay taxes in foreign currency. These include pharmaceutical companies, medical F budgets we have had in years. It have been sleeping in bank queues Greece and Argentina have all ― at facilities and suppliers of motor vehicle spares. touched on various economic and in an effort to access their hard one time or another ― implement- This is staggering. The majority of Zimbabweans earn their salaries in social issues and was very detailed earned cash, are not certain if ed 20 to 30 percent salary cuts for RTGS, but have to pay for goods and services in foreign currency without pro- on some issues such as sanitary their deposits in banks are safe cabinet ministers and the presidium tection from government. In fact, government appears eager to profit from this. wares and government’s notorious and whether the money will retain as part of cost-cutting measures. The more serious implication of this budget is that it does not reflect a serious ghost workers. the same value in the next three This is more practical as op- erosion of the value of localised modes of payment and the people’s earnings, but Despite its brilliance, punctuat- months. posed to the five percent tokenism a contradiction of epic proportions — which can only lead to serious industrial ed with philosophical quotes and What makes the situation more announced by Ncube on Mnangag- disharmony. We wonder if Ncube had envisaged this. easy to follow arguments, the bud- volatile and menacing is the resur- wa and his ministers’ salary cuts. get failed to resonate with many gent inflation, which is expected to We all know the executive makes people in society because it did not close the year at nearly 30 percent, most of its money on allowances as Southern Africa’s Leading Business and Financial Newspaper address the main pressing issue ― and government’s insistence that opposed to salaries. Established 1969 cash shortages. bond notes and the real time gross If Ncube was serious about Publisher: Modus Media While the nation fully appreci- settlement (RTGS) are still at par cost-cutting then he should have ates that the budget statement does with the United States dollar. What announced measures to cut allow- EDITORIAL MARKETING not have magical powers to end the is even more astonishing is Ncube’s ances by 40 percent and reduce Editor-In-Chief & Chief Operating Ofcer General Manager - Marketing country’s well-chronicled econom- decision to charge import duty for government officials’ appetite for Christopher Goko: gok .zw .zw ic woes overnight, the least we all cars and selected goods in hard cur- trips and trinkets. Brand Executive - Advertising Deputy Editor rency. On the contrary, the learned .zw Edwin Vengesa: evengesa@ngaz.co.zw If the bond notes/RTGS have the professor saw it fit to pile more Senior Sales Executives Managing Editor same value as the greenback then misery on the poor and hapless by Christobel Washaya: cwashay .zw Open Forum surely there’s no need to force peo- increasing taxes on fuel and import- .zw ple to pay duty in hard currencies? ed goods. This will not only result Senior Assistant Editor .zw Chris Gumunyu: chris@ngaz.co.zw with And when people complain, they in more price increases across the Sales Representatives - Harare are quickly branded unpatriotic. value chain, but also make Zimba- News Editor .zw Perhaps the voice of the people is bwean goods uncompetitive on the John K .zw Frank Nyandoro: fny .zw John Kachembere Edreck: emudzinganyama@ngaz.co.zw no longer the voice of God, but I international market. Markets Editor digress. The majority of our econom- Sales Representative - Bulawayo Ndakaziv .zw Clever Pedzisai: [email protected] expected was some policy direction To add salt to injury, the good ic problems can be directly traced on how government plans to end professor ― who has spent the back to the Zanu PF-led govern- Companies Editor Brand Executive - Events Shame Makoshori: smak .zw Kerina Chizemo: kchizemo@ngaz.co.zw the debilitating cash crunch. better part of his life in functional ment’s disastrous policies and mis- During his campaign trail, Pres- economies ― proposed austerity management of the economy. Since Online Editor Brand Executive - Subscriptions Paul Nyakazeya: pnyakazey .zw Tatenda Taka: ttaka@ngaz.co.zw ident Emmerson Mnangagwa told measures for the long-suffering 2013, the government in its wisdom Subscriptions Representatives his supporters ― and anyone who Zimbabweans. Someone should ― mostly likely lack of wisdom ― Features Editor Ronald Madiviko: rmadivik .zw cared to listen ― that when voted tell the minister that we have been decided to harvest where is did not .zw Elizabeth Nyamaruze: eny .zw into power he would immediately tightening our belts for the past 20 sow, resulting in the country’s do- Production Supervisor Chief Executive Ofcer end Zimbabwe’s long running cash years, and adding more tax burdens mestic debt surging from US$275,8 Kudzai Rushambwa: krushambwa@ngaz.co.zw .zw shortages and engage the interna- on the populace will not help that million in 2012 to the current tional community to support resus- much either. US$9,5 billion.

Bulawayo citation of the country’s moribund There’s nothing wrong with aus- Is it then fair or just to punish Editorial, Advertising & Circulation 1st Floor, Princess Court, economy. terity measures, provided they are the citizens for government’s de- 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. And when Ncube deliberately being implemented fairly and for linquencies? It doesn’t therefore Tel: +263-242-781 572 Tel: (029)75873/75270 Website: www Distributed by: ANZ skirted the contentious and emo- a good cause. But in the campaign require a rocket scientist to prog- tional currency reforms issue, the period no mention was made of nosticate that Ncube’s excellent essence of his dazzling blueprint austerity, which is why the country Transitional Stabilisation Pro- VOLUNTARY MEDIA COUNCIL OF ZIMBABWE e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced was lost on the majority of people. now faces a political backlash from gramme and national budget will news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of And who can blame them ― the a disillusioned and duped elector- follow the same route taken by 19 Zimbabwe at: No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 memories of 2008 are still fresh ate. other anti-poor economic blueprints Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz and indelibly etched in the minds of And if the minister was truly produced by government since Zimbabwe many Zimbabweans who lost their sincere in his austerity measures, 1980. The Financial Gazette November 29-December 5 2018 | Page 9 Founding Father’s Memoirs Beware, Zim dollar is coming back, Cdes! WAS thinking of taking an early as useless. pretenders. You can now see for your- Anyone who accepts that the Tuli will not let them adopt their money. Christmas break but after listening to I am sure you have heard that this selves that I had nothing to do with the dollars will be at par with any currency, To join the Rand Monetary Union, a Ithis madness of a budget, I had to ad- Mthuli (Tuli, the name of that cow, suits introduction of those stupid and useless even the kwacha, will be a fool. They country needs to have its own currency, dress you. I have also been hearing this him better) fellow is toying around with green things ― what do you call them will be very stupid, in fact. The options which can’t be the US dollar or the bond. stupid talk that I can’t walk. Of course the idea of bringing back the Zim dollar. by the way? Oh, yes bond notes. Those that are being considered are just smoke- A new currency’s value will simply I have not been able to walk ever since What nonsense is this? You see, these bond papers were introduced against my screens for the reintroduction of the Zim nose-dive because there are no foreign they usurped my throne last November. good-for-nothing imperialist servants will. That is why I never took much in- dollar, comrades. I hear that they want currency reserves to talk of. Whatever I have been under house arrest and the have put the country into reverse gear. terest in their introduction. You all know to decide on three choices ― to adopt way, we are doomed. But knowing these only walking I am allowed is around my They are reversing everything that I put how principled I am. I am not somebody the US dollar only and remove the bond former comrades of mine they will just garden. in place to save the country from com- who flip-flops on important matters notes; adopt the rand by joining the Rand print some more new bond papers and I am currently addressing you from plete collapse. like this. I brought you the greenback Monetary Authority; and adopt a new give it a name such as the Second Re- somewhere in the Far East where I am I am sure you all remember me ban- because I knew that was what was suit- Zim dollar that is adequately backed by public dollar. Asante Sana! preparing to have my Christmas break. ishing the Zim dollar from the face of able for this country. But now this Tuli foreign currency reserves. All these are Kindest Regards Anyway what has really got me mad is this beautiful planet and this Tuli fella dreamer wants to give us a Christmas crazy ideas because it is now too late to this pretence that I am their Founding and his handlers want it back. So there present of Zim dollars. Comrades, this is adopt the US dollar because they have Your One and Only Leader Father when they are treating me and it is, comrades; this is exactly what I am abominable because we all know what adopted new masters in the form of the everything I have done for this country trying to tell you that these people are that means. Chinese and Russians, so the Americans ME

. . . . AND NOW THE NOTEBOOK

Brilliant the issue of local and foreign trips was never touched. growth. However, where there is excess capacity, the Crocodile tears HAT a brilliant budget! It was just spot on. The last finance minister to touch those lost his job. stimulus can result in an increase in employment and HERE has been quite a lot of crying of late. If it It truly brought out the true nature of the Austerity for prosperity output. But for our economy reaching near capacity were for the many beloved innocent souls that WZANU-PF way of doing things. We indeed EYOND it being such a beautiful rhyming is a dead dream. So we are a little discomforted when Thave been robbed from us by road accidents, wished our Finance minister truckloads of good luck catch line, it’s as illogical as it sounds. In terms our CEO congratulates his lieutenant for a good bud- we would be pitied. But the crying has been by some when he accepted this arduous job. And indeed he is Bof political economy the term austerity refers get under our present circumstances. He described individuals who we think don't even have the tears at doing everything by the ZANU-PF rule book. He in- to policies that aim to reduce government budget defi- it as “a historic, responsible and disciplined budget, all. Some of us are just too pessimistic about every- deed catches on very fast. We were told that our bud- cits through spending cuts, tax increases, or a combi- which both cuts costs and contains crucial confidence thing around us. We were born that way and we won’t get deficit target is $1,6 billion, but we want to dare nation of both, according to our largely reliable Wiki- building measures to stimulate economic growth”. apologise because that is our nature. reverse the figures to $6,1 billion by the end of 2019 pedia friends, who further say that austerity measures We pessimists, however, think this budget is far Can anyone in ZANU-PF seriously shed tears that because that is where everything is pointing to. The are used by governments that find it difficult to pay from being responsible and disciplined. It is indeed people’s homes are being destroyed? We think their evidence: Civil service bonuses will be paid in full by their debts. The measures are meant to reduce the bud- historic as far as taking us nowhere because we cer- tears are never genuine because they have been the year-end from empty coffers. This means that govern- get deficit by bringing government revenues closer to tainly believe what others who have gone before us major culprits or land barons that have been making ment will have to borrow from somewhere to finance expenditures, which is assumed to make the payment have seen and noted. “We contend that for a nation people’s lives miserable by selling them land that is the bonus payments. of debt easier. Austerity measures also demonstrate a to tax itself into prosperity is like a man standing in a not theirs. Government’s hope of increasing its revenue base government's fiscal discipline to creditors and credit bucket and trying to lift himself up by the handle,” so Humour is also just wishful thinking. For example it hopes to rating agencies. said a former British Prime Minister, Winston Chur- WEALTHY aristocrat was hosting a party at raise a chunk from cigarettes, which smokers are be- Now here is the catch; in most macroeconom- chill, some seven decades ago. his estate, which had been in his family for ing discouraged to take the world over. Besides, our ic models, austerity policies generally increase un- Rent-seeking Agenerations. He noticed that one of his guests tobacco grade has been getting poorer by the year and employment as government spending falls. Cutbacks URING the recent budget presentation there bore a striking resemblance to himself. He could not we are pretty sure soon no one will be smoking the in government spending reduce employment in the was promise to nip all rent-seeking tendencies believe that such a similarity could exist with no ge- poor leaf. Meanwhile, the looming fuel price increase public and may also do so in the private sector. Ad- Din the bud. Wow! That would be the greatest netic link, so guessing that his father had sown some will push prices up and government will continue rais- ditionally, tax increases can reduce consumption by present this country would have had in decades. By wild oats, he approached the guest and asked with ing the same amount it has been raising, if not less, be- cutting household disposable income. Some claim the way, the experts say rent-seeking is an individual’s a smirk: “Was your mother ever a maid here?” The cause everything will also go up as inflation kicks in. that reducing spending may result in a higher debt- or entity’s use of company, organisational or individu- guest replied: “No, my father used to be the gardener.” We also liked the issue of salary cuts for top civil to-GDP because government expenditure itself is a al resources to obtain economic gain without recipro- Painful truth servants. That was a master stroke because those sal- component of GDP. cating any benefits to society through wealth creation. WHEN an African becomes rich, his bank ac- aries are useless anyway. In fact, they can do without In the aftermath of the Great Recession, for in- An example of rent-seeking is when a company lob- counts are in Switzerland. He travels to France them. What will simply happen is that these smart stance, austerity measures in many European coun- bies the government for loan subsidies, grants or tariff “for medical treatment. He invests in Germany. He guys at the top will increase their domestic and for- tries were followed by rising unemployment and protection. These activities do not create any benefit buys from Dubai. He consumes Chinese. He prays eign trips through which they get allowances. They debt-to-GDP ratios despite reductions in budget defi- for society, but merely redistribute resources from in Rome or Mecca. His children study in Europe. He will increase their “thank you” and “meet the people” cits. When an economy is operating at or near capac- the taxpayers to the company. Now imagine if this travels to Canada, USA, Europe for tourism. If he rallies locally. They will treble bilateral trade visits to ity, higher short-term deficit spending (stimulus) can threat to hunt down and destroy all rent-seekers was dies, he will be buried in his native country of Africa. foreign lands to cushion themselves (ZANU-PF style) cause interest rates to rise, resulting in a reduction in followed through? There would be serious gnashing Africa is just a cemetery for Africans. How could a from the effects of the pay cuts. This is exactly why private investment, which in turn reduces economic of teeth. cemetery be developed?” The Millennials: The lost generation HE name Millennial while hiding Shriver started alternative Olympics for (marijuana) “contains the pyschoactive variation in characteristics between the physically disadvantaged. compound THC … (with) potential ther- Tone person and another, reveals Started in 1968 with the US and Can- apeutic benefit…in the treatment of pain, certain commonalities, characteristics and ada as the only participants, today, 180 anxiety, and epilepsy.” tendencies observable to outsiders. It re- countries take part. Now, you will ask: “Ken, what do fers to the most spoiled generation in US But the idea which Shriver enshrined these Millennials want?” history, those born after 1980. in US psyche was taken over by Millenni- The Millennials misread the wisdom This generation is distinguishable als to mean that everybody is special and of their fathers which says that all things from their predecessors (nicknamed the deserves a medal. In today’s world, every may be lawful, but not all things are ben- Greatest Generation) by their sense of en- member of a basketball team walks away eficial. titlement. Life owes them happiness. with a trophy, not just the best player. They can marry whoever they want, Singer Miley Cyrus has encapsulated This assumption that everybody de- same sex or not. They have broken up serves success is harmful to academic life. the established churches over this issue. Pupils are awarded a 65 percent grade, Generally, they have ruled that churches whether they wrote anything on their pa- are refugees for hypocrites. Preachers, if pers or not. “But he deserves something” at all, should preach about nice things that is the retort. US Senate Minority Leader Chuck Schumer’s daughter Alison (left), a Facebook six-fig- make them feel good. Prisons are racist Therefore, Millennials have never ure executive, marries her sweetheart Elizabeth Wellband, a graduate student. and designed to lock up blacks and poor experienced failure in their lives, the red whites. X has been banished from schools. They The Pew Research says that 50 per- is that shacking has become “more rea- The idea of “feel good” is their have rights but no responsibility; their cent of Millennials are politically disen- sonable” and when things go wrong, one foundation stone. Having been spoiled helicopter parents intimidate teachers and gaged from religion and politics. of the partners just moves out. Divorce is throughout school and college years, they coaches on their behalf. Nevertheless, the 21st Century be- costly, time consuming and attracts de- find employment demanding and de- I was prompted to this subject by longs to them. They are electronically pression among those involved as legal meaning in its emphasis on consistency, my experience during the thanksgiving savvy, write at least 50 emails a day, and vultures move in to pick up the remains. rules, targets and uniformity. LETTER FROM AMERICA holidays. On my journey, I stopped by a respond well to banking and international There is another cause for concern. They find the idea that repeating a task by Ken Mufuka friend’s house, only to find the mother in a trade. When they do well, it is not uncom- The reply to whether one has a family 1 000 times makes for perfection a recipe full blown argument with her 22-year-old mon to see a 22-year-old financial stat- or not, a question which should never be for boredom. They cry for stimulation, daughter. Though the mother (50 years istician or computer wizard earning $50 asked in the first place is, “My partner and creativity and refuse to be mere cogs in them in her song, Me, Myself and I. The old) has two fully grown up daughters, 000 per year but still living with parents. I have two dogs and a cat.” The declin- the wheel of uniformity. They are special, lyrics may have come from Whitney she was doing all the cooking by herself. These are stupendous incomes. ing birth rate among whites is a cause for their parents and teachers told them. Houston before her. In short, they are As soon as the mother uttered a word, Almost to a tee, they are Progressives. concern. Millennials make up half the popu- narcissistic. They were brought up under the daughter threw the word back (Black Sex if free, though same sex liaisons are “Birthing” (as giving birth is called lations in “Recovery Centres” designed the mantra, Follow Your Dream; they are English) with disrespect. The daughter more highly prized than other forms. here) and raising children is considered a to redeem drug addicts, alcoholics, pill special and overly self-confident. They wants to go to seminary. I hid in my car Religious leaders have been caught in serious and costly interruption to a career overdose patients and yes, sexual addicts. yearn for equal opportunity of results. and pleaded with the spirits of my moth- an unpredictable web. Man-wife marriag- by Millennial college educated women. The training of 6 000 South Carolina offi- Thus though the physically impaired er’s sacred Hungwe clan, offering the es have declined over the last 10 years by Every college student has been taught, cers to spot the addiction syndrome in its cannot win Olympic trophies in the 100 Pharisees prayer; “Lord, I am not like that 10 percent and so have divorces. The rea- as cannabis expert Linda Parker eloquent- early stages shows the seriousness of the metre race as Bruce Jenner could, Eunice sinner over there.” son for declining divorces and marriages ly expressed in her book that mbanje problem. Page 10 | November 29-December 5 2018 The Financial Gazette National News $1bn forex debt Govt budgets for parastatal chokes Zim firms privatisation windfall Ndakaziva Majaka Omega Ukama ventures or listing on the Zimbabwe Stock Ex- Markets Editor Business Reporter change. “Government will, however, refrain from IMBABWEAN companies are struggling REASURY says it expects to raise at least taking over all or part of the debts that these to service external loans worth over $1 $350 million next year from the privatisa- entities have accrued, as not all debt is risky to Zbillion in the wake of foreign currency tion of public enterprises. potential investors,” he said. shortages and an escalating cash crisis, an indus- T Government is undertaking a raft of state en- Privatisation of the other entities on the list trialist has said. terprise reforms under which 16 entities will be is expected to be accomplished in the next two Sylvester Mangani, Surface Wilmar’s chief privatised, 13 parastatals merged while others years. executive, on Monday said while the country’s will be liquidated. Meanwhile, government says fi ve public en- foreign currency situation had “escalated to un- The reforms have been necessitated by terprises face liquidation in 2019. These include bearable levels”, Treasury had not addressed the sub-optimal operations at most of these entities Zimglass, National Glass Industries and Kings- issue of private sector international debt over- that have led to losses and a drastic decline in tons. hang in the 2019 National Budget. contribution to the GDP. Government also has plans to merge Zarnet, “You see that local businesses owe over $1 “The 2019 budget proposes the privatisa- Powertel and Africom to create one compa- billion in loans that need to be serviced. This tion of at least fi ve public enterprises, namely ny while the Postal and Telecommunications is because we have had to go out on our own TelOne, NetOne, Telecel, ZIMPOST and POSB. Regulatory Authority of Zimbabwe and the and source for capital. You fund your own op- “The 2019 Budget assumes proceeds of at Broadcasting Authority of Zimbabwe will be erations. allocation system. least $350 million being raised from privatisa- combined to create one telecommunications “In his budget (Finance) minister (Mthuli) Presently, foreign currency is allocated by tion,” fi nance minister, Mthuli Ncube said in his regulator. Ncube (pictured) did not make a provision for the Reserve Bank of Zimbabwe (RBZ) with maiden budget statement last week. The Civil Aviation Authority of Zimbabwe is this debt… suffi ce to say he merely proposed guidance from an import priority list, which has In October, government announced that it being unbundled into an Airports Company and that there be a special forex allocation board, been slammed by industry as unrealistic. had carried out an exercise of categorising all a Civil Aviation Regulatory Authority. how will this help us clear what we owe?” Complaints have also been raised about public enterprises according to viability, profi t- Commercial state enterprises’ inability to Mangani said at a national stakeholder indaba transparency in the disbursement process, lead- ability and balance sheet strength. generate profi table returns poses a fi scal risk to organised by Ziopra Consulting Group and The ing to eventual suspension of the apex banks' “The process of privatisation will be acceler- the economy in the form of explicit contingent Financial Gazette. directors. ated for those entities that rank highly on priva- liabilities as well as transfers from the govern- Local fi rms have been forced to buy foreign “In the interim, steps are being taken to es- tisation scale. ment to the entities. currency on the parallel market, where the US tablish a foreign currency allocation committee “This will not only improve their viability In 2015, government transfers amounted to dollar is attracting premiums of over 300 per- to promote effi cient management of our foreign but also strengthen the public private partner- $129 million, marking a signifi cant disparity cent. currency infl ows,” the Treasury chief said in his ship character of the enterprises and generate with dividends received during that year which Recent measures penalising black market ac- budget presentation last week. much need revenue to government,” the minis- totaled only $7,8 million. tivities have failed to stop the illegal currency Mangani added that Ncube had allocated the ter said in his fi scal statement in October. The major challenge that has been cited for dealing. ministry of Industry a mere $47 million, proving The minister said the fi ve entities, which the dismal performance of public entities is In his maiden budget, Ncube said he was the sector was not going to receive meaningful have been earmarked for immediate restructur- non-compliance to good corporate governance moving to enforce gradual movement towards support from government. ing, will be partially privatised through joint practices. newsdesk@fi ngaz.co.zw a more effi cient and optimal foreign currency newsdesk@fi ngaz.co.zw

SAZ SAZ SAZ SAZ Zimbabwe Green MEGAFEST NAQA NAQA Leadership NAQA NAQA Supply Award of Product of the Service of the year Awards year 1st runner up 2nd runner up Product of SADC Product of Company of Chain Excellence 2018 2018 the year the year the Year 2017 2013 Award 2018 2017 2013

[email protected] +263 773 715 485 November 29-December 5 2018 Page 11 Companies&Markets The Financial Gazette CALEDONIA LOOKS TO EXPAND RESOURCE BASE — 12 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) ZIMBABWE-FOCUSED gold miner Caledonia says it is look- ing to buy small-scale mining operations around the country. 0,16% 1,12% 0057% 0,03% 0,11% 10,6219 12,34 77,92 10 770,02 1 156,30

ZSE gained $400m TM PnP ‘sticks in post-budget trade Omega Ukama Business Reporter

HE Zimbabwe Stock Exchange (ZSE) on Friday put on $400 million, coming off three consecutive Tlosses as the market reacted to Finance minister Mthuli Ncube’s maiden budget statement. to its guns’ Last Thursday, the minister unveiled a budget that will see an increase in import duty for fuel while duty for selected goods — including motor vehicles — will now be charged in foreign currency. Omega Ukama The measures, which are meant to eliminate “arbi- Business Reporter trage” and curb foreign currency leakages, are regret- tably, also a harbinger for inflation, which has thus far M PICK n Pay (TM PnP) provided fuel for the local bourse’s intermittent rallies. says it will not buckle under The ZSE’s market capitalisation closed $402 million Tpressure and wantonly in- higher on Friday at $17,2 billion, coming off three suc- crease prices in line with rising for- cessive down sessions which saw the All Share index eign currency parallel market rates lose 8,4 percent. and inflation. The market’s gains were the largest recorded for a This comes as prices of goods single trading session in the past seven sessions. and services have spiked dramati- It has over the past two years seen record breaking cally since the start of October on performances spurred by a monetary crisis, which has the back of intensifying foreign primarily been caused by the domestic creation of mon- currency shortages, made worse ey through the transferable deposits platform. by the market’s frantic response to Under the current monetary regime — a multi-cur- fiscal and monetary measures put rency system made up of only non-domestic currencies in place by government, includ- – financing a budget deficit should not be done through ing a two percent tax on electronic domestic credit as the government has been doing. transactions and the introduction of “Investors are wary of inflation, a sharp fall in ex- separate foreign currency accounts. change rates which has made liquid assets relatively less While some of the price in- attractive and the immovability of foreign disposal as the creases have been justifiable, with major drivers of buying pressure,” analysts at research the drastic deterioration of the ex- firm Equity Axis said of the market’s performance in a change rate for transferable depos- Infographic by Darius Mutamba comment last week. its and bond notes against the US In October, the market jumped to a record $23 billion dollar on the parallel market, the the cost or price is from our suppli- it looks like the group is going to amounted to $305,6 million, a market capitalisation after Ncube’s shock announcement uncertainty caused by the situation er, we apply our specific category have a good presence in the resort growth of 32 percent from $232 of a two percent tax on electronic transactions, coupled has however forced some busi- margins to that product, irrespec- town,” Mycroft said. million during the comparable pe- with the central bank’s introduction — on the same day nesses into arbitrary price increases tive of what it is. We don’t use the A refurbishment of the group’s riod the previous year. The retailer — of separate foreign currency accounts meant to pro- which cannot be justified by taxes rate from the street, we don’t use a Victoria Falls Hotel is set to com- says the rise in revenue was under- tect nostro dollars. or the developments on the parallel what-if rate, we have simple mar- mence this year. The retail chain’s pinned by a considerable growth in Since early October when the measures were an- market. gins and we have committed to this boss also defended TM PnP’s poli- the number of units sold. nounced, the broader economy’s reaction, along with The Meikles’ retail unit has, over the past 45 days,” he added. cy to limit the amount of goods that Meikles, TM PnP’s parent the effects of the intensifying foreign currency shortages however, only adjusted prices in re- Mycroft said the retailer has also can be bought by a single customer. company, recorded growth of 467 currently bedeviling the country, have sustained the mar- sponse to its suppliers’ quotes. had some suppliers demand cash. “Some say we are being unfair. percent in profit after tax from con- ket above last year’s record $15 billion capitalisation. “We have not adjusted our pric- “But we have not buckled to Well, yes we are being unfair to the tinuing operations to $15,3 million The market is expected to remain buoyant in the me- es despite pressures in the market to those pressures,” he said. street vendors that come into our from $2,7 million achieved the dium term as there has not been an apparent short term do so; we have stuck to our guns,” He noted that the retailer is cur- store and buy copious amounts of same period the previous year. The resolution to the monetary crisis spurring it. Malcolm Mycroft, TM PnP’s man- rently revamping seven of its exist- goods and then go and sell the same group’s profit after tax for the six “We expect the equities market to trade sideways in aging director, said at the group’s ing outlets while the development stuff outside the store for five times month-period surpassed the results the medium term as valuations remain demanding and 81st annual general meeting on of an outlet in Victoria Falls “is on what we would have sold it to them for the full financial year ended recommend only selective buying into weakness,” ana- Tuesday last week. track”. for,” he said. March 31, 2018 of $7,7 million by lysts at advisory firm IH Securities said in comment last “We have a simple business “With the developments that are TM PnP’s revenue for the half 99 percent. week. [email protected] philosophy at TM PnP, whatever happening with the hotel as well, year ended September 30, 2018 [email protected] Page 12 | November 29-December 5 2018 The Financial Gazette Companies & Markets Caledonia looks to expand resource base

Ndakaziva Majaka is currently under judicial management and a joint venture Markets Editor with Chandiwana mines. The state-owned firm invited tenders from private part- IMBABWE-FOCUSED gold miner Caledonia says ners as it sought to reopen the mines rich in gold, chrome, it is looking to buy small-scale mining operations coal-bed methane, emerald, tantalite, lithium and graphite, Zaround the country. which have been dormant as a result of capitalisation prob- Mark Learmonth, Caledonia’s finance director, said lems. while the firm — which recently agreed to buy an additional Tenders were invited for investment opportunities in the stake in the Blanket gold mine through a $6,6 million deal, emerald rich Sandawana mine of Mberengwa which also leaving it with a 64 percent stake in Blanket — was not pre- has been under-utilised for several years, having first been pared to spend above $3 million, it was interested in expand- exploited in 1955 when emeralds were discovered, as the ing its Zimbabwean resource base. Caledonia produced 14 000 ounces of gold at Blanket Mine in the third quarter of 2018. state miner also invited partners for the Lynx Graphite Mine “Typically, we are not interested in buying large scale “We have indicated to government that assets around Zimbabwe. There is plenty near Karoi in Mashonaland West province. mature operations because that is going to be too expen- we are prepared to look at these assets in of interesting assets around Zimbabwe, the Meanwhile, Caledonia produced nearly 14 000 ounc- sive, the reason being we are not going to be able to add too terms of doing due diligence and working main issue though is price expectations,” he es of gold at Blanket in 2018’s third quarter, three percent much value to them… We want things that are extremely out if it is something we can add value to… said. lower than same quarter of the previous year but 10 percent small production or can be converted into small scale opera- “We wouldn’t want to look at a project Caledonia recently confirmed it bid for higher than in 2018’s second quarter. tions…,” he said during an interview with an investment-fo- that doesn’t have potential to do at least 50 Zimbabwe Mining Development Corpora- The company produced 39 559 ounces of gold in the first cused outlet, Proactive Investors. to 60 000 ounces a year. Some other ones tion (ZMDC) mines on the market, along three quarters of 2018, slightly less than in the first three The Caledonia boss said Zimbabwe had “plenty of in- we are looking at have got the prospect to with 151 other bidders. quarters of 2017. As a result, the company has decreased its teresting assets,” adding the miner also wanted to acquire be much bigger than that. ZMDC owns troubled Jena and Elving- 2018 production guidance from 55 000 to 59 000 ounces. privately-owned operations. “We will look at other privately-owned ton goldmines, as well as Sabi mine, which [email protected] ‘Zimbabwe has potential to attract investment’

Tabitha Mutenga Features Editor

IMBABWE has the potential to attract the much-needed investment to realise medium-term Zgrowth targets in line with the country’s Vision 2030, a regional bank has said. PUBLIC NOTICE The African Development Bank (AfDB) last week launched a flagship economic report on the southern afri- can country titled: “Building a New Zimbabwe: Targeted The Zimbabwe National Road Administration (ZINARA), would like to advise the mo- policies for growth and job creation”, which aims to sup- port renewal and transformation of the country. “Zimbabwe has investment opportunities requiring toring public that in view of the de-registration exercise to be conducted by the Central minimal additional investment to realise medium-term growth targets. Deep structural reforms can improve Zim- babwe’s business climate and attract private investment Vehicle Registry (CVR) of vehicles not licensed or exempted for a period of two or and the return of the skilled labour force,” said Ferdinand Bakoup, the bank’s acting director in charge of the country st economics department. more years as at 31 July 2018, ZINARA will be offering a 50 percent discount on penal- According to AfDB, Zimbabwe holds a lot of promise to regain growth and structural transformation, through a st three-pronged strategy of agriculture-led industrialisation, ties ONLY on outstanding vehicle licence fees up to 31 of December 2018. eco-tourism sector development, and special economic zones. “The country has enormous potential given its natu- Our valued motoring clients are advised to visit any ZINARA office countrywide and ral resource endowment, public infrastructure stock, and skilled human resources. But the country has long-standing take advantage of the discount promotion to up date and regularise their vehicle licence debt arrears with several development partners and lenders. “While Zimbabwe cleared its arrears with the Interna- tional Monetary Fund in October 2016, the country has before the de-registration process to be carried out by CVR. yet to clear its arrears with the African Development Bank (AfDB) and the World Bank, a requirement for relief from sanctions and for access to development finance from mul- Please call the ZINARA National Complaints and Information Centre (NCIC) for en- tilateral development banks,” Bakoup said. A range of policy recommendations have been proposed to address the infrastructure financing shortage, including quiries on the status of your vehicle arrears on the following numbers: the short-term measure of linking mining sector rents to infrastructure development financing, the medium-term measure of gaining access to international financial mar- kets, and the long-term measure of adopting policies that 08677000131 support macroeconomic stability, increase investors’ con- fidence, encourage allocation of capital to long-term in- 08677000129 vestment, and enhance the country’s absorptive capacity, in particular the large amount of foreign direct investment from China. 08677000130 “Zimbabwe could grasp the opportunities provided by the large number of Chinese enterprises ‘going glob- Visit our website: www.zinara.co.zw al’ and join existing global supply chains in food, cotton, wool, leather, footwear, garments, and assembly lines of farm machinery, motorcycles, or buses and become a light Email: [email protected] manufacturing and construction logistics centre for south- ern and east Africa and eventually the entire continent,” Callus (Headoffice): (0242) 442711-3/442783/490545 AfDB said. The report results from a one-year extensive research work of country, sector and thematic studies to offer eco- nomic analyses and policy recommendations that can help ZINARA, driven to make you drive well. spark Zimbabwe’s transformation. [email protected] The Financial Gazette November 29-December 5 2018 | Page 13 Companies & Markets ZAMCO faces uncertain future

Ndakaziva Majaka date and consider winding up of its operations have given up buildings to enable settlement of Markets Editor which are being supported by government,” the outstanding loans,” Kanhai said. Ncube said in his maiden budget statement. Data from the central bank shows that since INANCE minister Mthuli Ncube says gov- He said this was part of efforts to manage TB ZAMCO’s formation, the country’s NPL ratio ernment will soon disband the Zimbabwe stocks after government issued TB s and bonds for the period to September 30, 2018 was down FAsset Management Company (ZAMCO) worth $2,5 billion between January and August to 6,22 percent from 20,14 percent when the ve- as part of strategies to streamline operations and 2018. hicle was created in 2015. reduce budget defi cit. In order to manage maturities of the current ZAMCO was established as part of efforts to This comes as company chief executive Cos- stock of TBs, Ncube said government was ex- strengthen the banking sector, with government mas Kanhai recently said the fi rm had managed ploring options for restructuring the instruments advancing Treasury Bills (TBs) to all fi nancial to clear or convert $200 million worth of bad to longer tenure in consultation with market institutions whose bad debts it assumed. loans into other assets. players and establishing a TB auction system. The John Mangudya-created ZAMCO facility The Treasury boss last week indicated that According to the ZAMCO boss, ZAMCO is itself is almost similar to what Washington did ZAMCO — which was formed in 2015 as part looking for the most optimum ways to convert in bailing out automakers and distressed banks of efforts to strengthen the banking sector and the NPLs like debt asset swaps and debt-equity during the 2008 fi nancial crisis. clear Non-Performing Loans (NPLs) — would conversions, and to mop up 12 percent of the to- The company — initially credited with boost- no longer take new bad debts from the banking tal loans per annum to enable a complete mop-up ing TB stocks for local banks — also gave banks sector. by 2025. an opportunity to release resources that had been The Reserve Bank of Zimbabwe’s special pur- Disposing of shares on the ZSE to offset the tied up in NPLs so that they continue to support pose vehicle has $1,1 billion worth of NPLs on bad loans has also been another method debtors economic activities throughout the country and its books. have been using to settle outstanding obligations helped borrowers to restructure their facilities so Homelink will soon introduce more housing projects “With immediate effect, ZAMCO will no lon- with ZAMCO. that they could continue to service their loans at after the launch of its low-income housing venture in ger assume further loans from the market. In ad- “Borrowers have offered ZAMCO assets to affordable interest rates over a relatively longer Bundira. dition, government will review ZAMCO’s man- auction in honour of their obligations and some period. newsdesk@fi ngaz.co.zw Homelink to roll-out more housing projects

Omega Ukama Business Reporter

IVERSIFIED fi nancial services group, Home- link, says it will soon introduce more housing Dprojects after the launch of its low-income hous- ing venture in Bindura. Set up in 2005 as a vehicle to harness foreign curren- cy from the diaspora population, Homelink has evolved into an outfi t offering property investments, microfi - nance and money transfer services. To date, Homelink has provided houses to at least 1 500 families. “Apart from Brockdale, Homelink is also working on housing projects to be launched in Harare’s Marlborough and Strathmore, near Lake Chivero; Gweru, Mutare and Bulawayo,” Desmund Ali, Homelink’s managing direc- tor, said at the offi cial launch of the Brockdale housing project in Bindura on Friday. “We are very excited at the pace we worked at Brock- dale and are looking forward to delivering affordable shelter across Zimbabwe. We have, therefore, worked on criteria that ensures that houses are accessed by low income customers,” he added. Located seven kilometres outside Bindura’s town centre and adjacent to the Zimbabwe Ezekiel Guti Uni- versity on the Bindura-Shamva road, the Brockdale proj- ect will, upon completion, have 329 housing units. “The project is specifi cally designed to benefi t low to medium income earners, in line with Homelink’s quest to provide affordable accommodation as it supports the government’s broader housing objectives,” Ali said. Speaking at the same event, Khupukile Mlambo, the Reserve Bank of Zimbabwe’s deputy governor, said the central bank, which commissioned the setting up of Homelink in 2005, considers housing as an essential cog in the infrastructure ecosystem. “As a result, we have opened mortgage lending to other fi nancial institutions, such as commercial banks and microfi nance institutions. “We recognise the urgent need to close the defi cit in housing supply particularly for the low-income segment of the economy. We have, therefore, increased the hous- ing fi nance pool outside the traditional building societies to micro fi nance institutions such as Homelink,” Mlam- bo said. Mlambo said the banking sector funded nearly 6 000 new housing units worth over $172 million in 2017, up from 1 531 housing units worth $75 million funded in 2016, a development he attributed to the apex bank’s “policy initiatives”. “By the end of 2018 nearly 12 000 new housing units are expected to be funded by the fi nancial sector. It is worth noting that the highest number of these housing units are targeting low income households,” he said. newsdesk@fi ngaz.co.zw Page 14 | November 29-December 5 2018 The Financial Gazette Companies & Markets Fears mount over $2bn TBs

Nelson Gahadza players,” he said. by government, and ensure better price discov- Business Reporter According to official figures, TBs issuances ery. increased from $2,1 billion in 2016 to a cumula- “Such a market based system also promotes HERE are fears that government may de- tive $7,6 billion by end of August 2018. transparency and hence, market confidence,” he fault on paying over $2 billion Treasury Ncube said government is proposing a new said. TBills (TBs) that are maturing next year framework for issuing treasury bills that will Ncube also noted that the Public Finance after Finance minister Mthuli Ncube said the manage maturities of the current stock of TBs Management Act is being amended to penalise figure is unsustainable. while it explores options for restructuring the any Treasury Bill issuances outside the frame- In his $8 billion 2019 National Budget state- Treasury Bills to longer tenure. work. ment presented last week, Ncube noted that high “Going forward, with immediate effect, all Government has been issuing TBs to fund its fiscal deficits became entrenched largely due TB’s issuances will be strictly for financing of programmes over the past few years as a stop- to expenditures committed outside the budget short term cash-flow mismatches. gap measure since it no longer has access to framework through TBs issuances. “Further to this, such TB’s issuances will investment from international financial institu- “Resultantly, TBs maturities in 2019 are es- only be triggered by a Treasury Bill Issuances tions due to its legacy debt. timated at $2,2 billion, which is unsustainable Note by the Accountant General,” he said. The biggest takers of the TBs are banks who in one year. In order to manage the maturities, In addition to that, he added, Treasury Bill are exposed to potential default, as government Treasury is exploring options for restructuring issuances will be through an auction system, in has limited resources. this commitment, in consultation with market order to derive a fair market cost of borrowing [email protected] Mthuli Ncube

Rural Electrification Fund Stanley & Livingstone

6TH FLOOR, MEGAwATT HOUSE, 44 SAMORA MACHEL AVENUE, HARARE, ZIMBABwE completes DEVELOPMENT OF LARGE BIOGAS UNITS PROGRAMME $4m facelift Expression of interest (EOI) Application by Beneficiary Organizations/institutions The Rural Electrification Fund (REF) of Zimbabwe established in terms of theRural Electrification Act (Chapter 13:20) invites entities that produce large quantities of organic waste but have a problem in disposing of the Shame Makoshori waste to partner REF for the development of large biogas units. Companies Editor REF as part of providing universal access to sustainable modern energy services by 2030 has developed a bio- TANLEY & Livingstone Boutique Hotel has re- gas delivery programme from 2013. The organisation initiated the Zimbabwe Institutional Biogas programme launched in the resort town of Victoria Falls, a (ZIBP) wherein 69 biogas digesters were installed at various rural public institutions such as schools, health cen- year after it kicked off a $4 million facelift meant ters and prisons in all the eight provinces. It also piloted a 350m3 biogas at Kotwa Growth Point for supply of S to maintain its status as a destination for high end vis- gas to restaurants. itors. It has taken over in part the Zimbabwe National Domestic biogas programme (ZNDBP) initiated by the Ministry Located 15 minutes from the majestic Victoria of Energy and Power development (MoEPD) in conjunction with development partners such as the Humanist Falls, the high end resort becomes the first luxury bou- Institute for Co-operation with Developing Countries (Hivos) and the Netherlands Development Organisation tique hotel in Victoria Falls. (SNV). The town has positioned itself for transformation Large biogas units programme (LUBP) responds to the need of developing energy for industrial and agricultural into a modern destination attracting high spenders from across the globe, as well as domestic tourists. purposes from organic waste. The aim of the LBUP is to initiate large-scale dissemination of biogas in Zimba- The five star facility, befittingly located at the edge bwe, through a market-based approach. The purpose of the request for expression of interest for high organic of breath-taking landscapes in the Zambezi National waste producers such as dairy farmers, cattle ranchers, abattoirs,piggeries etc. is to stimulate both the supply Park, was re-commissioned by Tourism minister Pri- and demand forlarge biogas development. The development of such biogas provides a secure and reliable sca Mupfumira on Thursday. renewable energy supplyfor own use at the farm, abattoir, hotel, restaurant, etc. In the process of biogas She said the investment was important to Zimba- generation the waste is disposed of in an environmentally friendly manner. Through this call we invite interest- bwe, which recently announced plans to launch a re- ed parties to make an expression of interest a as a partner/ beneficiary in the LBUP initiative with the view of volving fund to help the industry refurbish and expand implementing the technology to provide energy for industrial and agricultural applications at their premises. operations ahead of anticipated boom in the coming Who can apply? years. Expression of interest is targeted at producers of organic waste mainly from farming (Dairy, cattle ranching), At least five million tourists are projected to visit Zimbabwe by 2020, from about 2,5 million last year. industrial waste, and effluent with potential for development of biogas. The organisations applying must be However, capital starved leisure firms have been owners of the property/waste of can provide proof of a lease greater of at least 5 years. struggling to work out strategies to match this project- Submission procedures and instructions ed boom, except for a few. Expression of interest shall include; “The investment in Stanley & Livingstone has had a far-reaching positive impact that extends well be- 1. A Clear overview of the responding entity spelling out; yond tourism into the areas of environment, employ- I. Type of organisation ment and community development,” Mupfumira said. II. Nature of Core business Stanley & Livingstone emerges as an elegant hide- out for families, couples or individuals who are keen to 2. Ownership status of the proposed site/ entity explore and take a break far from the madding crowd. 3. Type of organic waste proposed to be used for Biogas generation Stanley & Livingstone’s 16 suites have been stan- 4. Finance access options dardised to contribute to its distinctive atmosphere, which is dominated by rolling Kalahari plains that add 5. Project Implementation and operation approached preferred. excitement to tourists that have to use high endurance Please submit the expression of interest no later than the 31st of December 2018 vehicles to explore. Email: [email protected] Aujun Investments chairman, Abdulla Aujun, a Post to : The Procurement Administrator key shareholder in the resort, said the facelift would help Stanley & Livingstone improve arrivals in Vic- Rural Electrification Fund toria Falls. 7th Floor, Megawatt House “This refurbished property is set to attract more of 44 SamoraMachel Avenue the niche market that is interested in high end prod- ucts as the property meets global luxury standards. My Harare, Zimbabwe family has a heart connection with Zimbabwe hence our maintaining presence in this country. We value the support rendered by the government and we remain committed to bettering the lives of Zimbabweans Rural Electrification Fund through our business,” he said. The resort is popular for its regional and interna- tional cuisines, which are targeted at the big spending tourists who demand good tastes in the destinations Magetsi Kumusha/Amagetsi Ekhaya that they visit. [email protected] The Financial Gazette November 29-December 5 2018 | Page 15

Advertorial

FUNDING YOUR BUSINESS aving a business idea is just the start. good news is that there are several plac- attitude and stay vigilant in your efforts. Your savings can provide an initial source of funding. You need money to turn that idea es to look. No single source of money is 1. Fund it Yourself In addition, you can generate cash by selling some as- Hinto the income-generating power- necessarily easier to come by than the other. • You can invest your money into start- sets, for example, a vehicle you own. house that you envision. Finding funding is Therefore, it is important to be flexible in ing and growing your business. Scrape • The truth is that, if you believe in your vision a challenge for most business owners. The your choice. Also, remain positive in your together any personal funds you can find. then you should feel comfortable investing your own money into your business. In turn, self-funding will make potential investors more comfortable knowing that you have ‘skin in the game’. • A good approach is to self-fund your business, until it becomes profitable. A profit-making entity (going-concern) is more likely to attract financing from other investors. 2. Funds from Family and Friends • Those closest to you will probably believe in your vision and ability to make your business a suc- cess. Therefore, ask friends and family for funding for your business. While they might not be able to fi- nance you entirely, they could provide partial funding, which will bring you nearer to achieving your goals. • Before you ask family and friends for money, have a business plan ready. From it you will know ex- actly what you want from them and be able to explain it. Very important is to be clear whether you are ask- ing for a loan, an investment or a gift. In other words, should they expect to get back any of the money that they put into your business and if so, how much. • When friends and family lend you money for the business, structure a loan for a maximum of one- year and borrow just enough to launch your opera- tions. • If the funding you are given by relatives and/ or friends is to get an ownership stake, you will lose some control of your business. Be sure that your in- vestors know the true risks, lest the business fails, causing hurt feelings, ruined relationships and un- pleasant social situations. 3. Funding through Bank Loans • Traditional banks offer business loans and are generally more stringent about lending. They typical- ly require a track record. Sometimes they will want the loans secured with assets. They may also require a guarantee that the loan will be repaid. Therefore, to qualify for a traditional bank loan, demonstrate that your business has started making money and show that a loan would help you earn even more money. • Take note that business loans from banks come with several terms and conditions and these must be met. If you fail to make your loan repayments as agreed, the bank could force the company into liqui- dation. 4. Alternative Funders • The business can fund itself, using the money it generates for further growth. For example, sales in your pipeline could be sufficient to maintain planned growth of the business. • Partnerships with individuals or other business- es give the ability to raise funds and provide access to a wider pool of knowledge, skills and contacts. Vet potential partners and only go into business with those you trust. Address potential issues and discuss worst- case scenarios before committing. • Venture Capital firms or Angel Investors often provide early-stage funding. They will seek to make relatively large investments and they take a significant share of the company, even a controlling stake. At- tracting angel investors requires that you know your business plan thoroughly and that you are able to sup- port your figures with realistic projections and fact. • Crowdfunding is primarily web-based. It al- lows individuals with a business, idea or project to reach out to thousands of potential investors through various platforms, of which there are hundreds. Do your homework before launching into this area. ■ Page 16 | November 29-December 5 2018 The Financial Gazette Motoring More show with the same go! Datsun Go another manufacturer. tern that disguises the plastic origins in the new Go. What was that you said about entry What did come as a positive sur- well enough. This includes air con, electric level kit? TOP GEAR with prise is the fact that the cladding in And instead of a front bench seat, windows all-round, central locking, But that’s not all as they say in the Richard Wiley the cabin, albeit that it’s mostly and individual front seats of just accept- immobiliser, a drive computer, fol- classics. On the safety front, driver fully understandably of the hard vari- able dimensions are provided and low-me-home headlights, gearshift and passenger air bags are fi tted along ety, is extensive enough to ensure that these, along with the rear bench, are indicator, low fuel warning and the with three-point belts, front and rear, no bare paint is evident from within. swathed in decent quality, if rather crowning glory for young buyers, and the braking is assisted by ABS. HEN the original Datsun Indeed, Datsun has gone to commend- synthetic, black cloth. a 7-inch touch display with Apple Hallelujah! What is not yet fully dis- Go was launched in SA, it able lengths to ensure that the visual This has liberated space for a con- Car Play/Android Auto connectivity, closed is the status of the body struc- Wattracted more than its share quality of the door and dash coverings ventional handbrake but more import- Bluetooth, USB and AUX ports, pow- ture that didn’t impress the NCAP of vitriol owing to the absence of air is enhanced by a heavily-grained pat- ant still is the standard fi tments listing er socket and a pair of front speakers. crew all those years ago. Results are bags and ABS, not to mention a fail in awaited with interest and so too is the Global NCAP frontal safety test. the possible introduction in 2019 of A media hullabaloo of seismic propor- an electronic stability control system, tions accompanied the fi ndings and but in the meantime, those young, fi rst truth be known, a bit of ducking and time buyers will be snapping their diving behind the scenes was obvious- fi ngers and tapping their soles while ly going on to mitigate the bad press, enjoying streaming sourced from their but ironically, most of the red mist high-end smartphones. was coming from people who weren’t Externally, smart paint colours and buying the entry-level hatch anyway. a decent gloss brighten things up as do Sales were good enough which standard-fi t driving lights (Lux model) sadly proves that visible add-ons may and you’ll fi nd respectable panel gaps well carry more value than potentially too but don’t expect the doors to emit life-saving but hidden safety struc- a bank-vault-like thud on closing! To tures and related components such as protect that paint, there are even rear air bags. parking sensors on board! After all, no-one buys a car to have Out on the road, there’s no chance an accident in but sometimes the best- that too many would-be-GP-drivers laid plans of mice and men go awry will bother to take on the Go as the fa- and then, survivability becomes an miliar 50kW/106Nm 1.2 triple is em- issue. ployed and as the fi gures suggest, it’s It is relevant to note at this juncture there to facilitate getting from A to B that the location of the manufacturing rather than cleaning up all and sundry plant often determines the equipment off the line. mix of a model and it happens that In- Fancy 7-inch touch-screen is a surprise Connected to a fi ve-speed box dia, from where the Go hails, hasn’t which didn’t impress too much in the placed too much of a priority on de- case of our test unit owing to a vague vices such as ABS and airbags which shift action occasioned I suspect by have been de-rigeur in Europe for de- a fl awed set-up adjustment (others cades. didn’t complain of this problem), the Now, production lines are rather motor emits a pleasant thrum and is automated things which are controlled fi ne on fl atland but rather taxed on the to a great extent by software pro- long gradients. grammes so it’s simply not possible That gearbox needs lots of stirring to issue an overnight decree that all if the engine is to maintain momentum models destined for the African mar- in adverse conditions which is exactly ket must have airbags fi tted. why I thought the Datsun people were The addition of a single air bag was brave to bring us to the hilly environs the best Datsun could do as an interim of Soweto, but to be totally fair, there’s measure and even that found a home suffi cient on tap to meet most people’s only in the “top level” Lux derivative, expectations in the usual urban grind. but at least a start had been made. In those conditions, drivers will appre- Now, roll the clock along to No- ciate the smooth acting, lightweight vember 2018 when Datsun SA rolled clutch of the Go. out what is effectively the third gener- As for ride and steering, all seemed ation Go for assessment on the high- decent enough on mostly-smooth tar veld with its depleted levels of atmo- surfaces. Steering effort at parking spheric pressure and power-enhancing speeds is nicely-judged and out in the oxygen. open, damping is very acceptable and All credit to the marketing team there appears to be a pleasing level of which has gone out of its way to jazz- Front seats are much-improved pliancy, but we did not sample the car up perceptions of what was defi nitely with a full load on board. Wind noise an entry level vehicle. Fun, colourful is well suppressed and with aid of young-at-heart lifestyle-orientated power wing mirrors, the view outside promotional material is very much in is better than most. evidence in support of the importer’s It should be apparent by now that valid claim that vehicle ownership for the third gen Go has raised the game fi rst time buyers comfortably beats for an A-sector model in that it is no using public transport and relying on longer a spartan, poorly equipped con- taxis to get from A to B and beyond. tender devoid of basic safety kit. Sure, The fact is that car prices have the price has gone up a fair bit but so mostly overtaken a rise disposable has the kit level such that fi rst-time income levels down in the trenches buyers should fi nd the recipe much and Datsun wants to make amends more appealing even if a question by offering something new and much, mark still remains over outright struc- much smarter than of old. tural integrity in the event of a calam- The question to be answered is: itous collision. “Has it succeeded?” The answer is a For the record, SA prices as at No- qualifi ed “yes” as the enhanced equip- vember 2018 look like this: ment packages of the Go Mid, Go Lux Datsun Go Mid R144 500 and Go+ 7-seater derivative (not sam- Datsun Go Lux R165 500 pled) don’t come for nothing, so it’s Datsun Go+ 7-seater ranges from up to the individual to decide whether R154 200 to R175 900 and includes an enhanced new car is a better or saf- a panel van option. For pricing and er buy than a slightly used but initially model availability outside RSA, more expensive device sourced from Body-colour bumper includes proximity please consult your Datsun importer. The Financial Gazette November 29-December 5 2018 | Page S1

Simbisa Brands: positive impact in community S a multinational company, Simbisa Brands recognises Ramah Sports Academy Cricket Tournament and embraces our social responsibility to the regions True to our values of corporate social responsibility and getting Ain which we operate. We are fully dedicated to estab- involved in our communities, we partnered with Ramah Sports lishing environmentally conscious programmes that benefit the Academy during their Under 13 Mock Cricket world cup held at youth, veterans, animals and their entire communities. Alexandra Sports Club in Harare from April 18 to 21, 2018. In sup- Our projects vary widely and include programmes at the port of the grooming of a future sports generation, we made a dona- Emerald Hill Children’s Home and Greenwood Park in Harare tion of 2-piecer meals for the duration of the tournament. Simbisa Brands representative (second from le ) receiving the award. as well as the Harare SPCA. In Kenya, we fund a project that grows the beneficial spirulina for free, children’s clinics and in Mauritius we sponsor a Pizza Masterclass. We take great pride in making a positive impact through this responsible approach. Emerald Hill Children's Home Emerald Hill Children’s Home is for orphaned and other vulnerable children in Zimbabwe’s capital Harare. Since 1914, Roman-Catholic Dominican Sisters have provided shelter for the children. Today, the home cares for the physical and spiri- tual well-being of about 90 children aged 3 to 20. The children come from a variety of difficult backgrounds, many of them having been abandoned by their parents or having gone through traumatic experiences of neglect, emotional and physical abuse. Apart from providing food and shelter, Emerald Hill actively focuses on the emotional healing of its children through Chris- tian spirituality, engagement of social workers and counsellors, and other creative offers. Emerald Hill relies on donations for the upkeep and support of the children, including medical care, school tuition, clothing, food and shelter. Simbisa plays a big part and will donate meals and cakes for the children’s birthday parties as well as help with project funding. Mater Heart Run Simbisa Brands Kenya Limited supported this year's Mater Heart Run organised by Mater Hospital. We offered the hospital an in-kind partnership of about Kshs500 000 and allowed them to sell their T-shirts in our outlets to raise funds for the walk. The run is purely to support children with heart diseases. Over the years, the Mater Heart Run has managed to get three cardiac missions with 134 heart surgeries and 206 catheterisa- tion procedures done by local doctors and partners outside Ken- ya. They have also held eight free cardiac outreach camps in various counties through which 14 937 children benefited from free rheumatic heart disease screening and health education. SPCA Established in 1911, the Harare SPCA is the oldest animal welfare organisation in Zimbabwe. Harare SPCA is the first “go to” place people will consult when their pet goes missing ― either to report or to search for it. Their role is to provide safe sanctuary and care for animals and at the same time endeavour to educate the populace about animal care to prevent ill treat- ment and cruelty and promote sterilisation. Funding for the society going is reliant on the goodwill and support of concerned corporate entities, individuals and fund raising efforts. Simbisa continues to support the Harare SPCA. JCI Greenwood Park In partnership with the City of Harare and JCI, Simbisa is continually working with the business and residential commu- nity toward a clean and healthy environment. In order to ad- dress the problems faced by Greenwood Park, we undertook a two-year project to fix it and increase visitors which will result in increased physical activity and overall health of the commu- nity. Pizza Inn Lions Club Pizza Inn teamed up with the Lions Club to put on yet an- other charitable Kids Pizza MakingsMasterclass. The master- class is for children from local orphanages. Zvishavane Provincials We continue to stand firm and true to our values of getting involved with our surrounding communities. We partnered with schools in Zvishavane during their provincial athletics events by providing water and financial assistance to the athletes. Pumping Legs for Water Hwange National Park was founded in 1929 and encom- passes over 14 000 square kilometres. The north and north-west of the park are drained by the Deka and Lukosi rivers and their tributaries, and the far south of the park is drained by the Gwa- badzabuya River, a tributary of the Nata River. In 2008, Colin Gillies of Wildlife Environment Zimbabwe approached the National Parks of Zimbabwe and suggested a two-day100km mountain bike ride through Hwange to raise funds to supple- ment the cost of pumping water in the park as National Parks had limited funds and resources. Eleven years later as Pumping Legs for Water, they have averaged 180 cyclists over the last few years with last year’s entrants reaching over 200 from as far as the UK to the staff at Main Camp. The money raised is administered by Wildlife Environment Zimbabwe for use in maintaining and developing water sources in the Hwange National Park. Simbisa Brands was the main sponsor for this event. Page S2 | November 29-December 5 2018 ZIM NATIONAL CORPORATE SOCIAL RESPONSIBILITY AWARDS SPECIAL FEATURE The Financial Gazette National Foods in the community

ATIONAL Foods Ltd (NFL) has taken an initiative to Nsupport 38 centres in vulner- able communities across the coun- try monthly. These centres include Guest of honour Industry and Commerce Deputy Minister Raj Modi. orphanages, special needs groups, vulnerable women and children, schools, hospitals, churches, wild- life and other national social support Mutare Dry Port wins award e.g. the cholera pandemic. National Foods Ltd’s objective is S Mutare Dry Port we were en- ing, Logistics and Mechanics. to plough back to the communities gaged in a number of activities in These students are being given an within which the company operates 2018 to promote social responsi- opportunity to be trained on the job and by enhancing lives and improving A bility around the community. These in- are being equipped to meet economic and wellbeing. clude: industrial growth of the community and NFL engages in proactive ini- Employment of casual labour country at large. tiatives which deliver an impact to For each and every month we employ Sponsored Eastern Highlands Trust the social-economic well-being of more than 150 people as casual labour on Golf Tournament communities by way of investing in rotation basis thereby reducing poverty In January 2018 we again sponsored our society. NFL also participates in National Foods representative (centre) receiving the award. and crime rate since they are earning to Eastern Highlands Trust Golf Tourna- initiatives that are geared towards sustain themselves and their families. ment for old age people fund raising pro- the preservation and long term sus- Tokwe Mukosi National Disaster ble cause.Enhancing lives Donation of bins gramme. tainability of the environment. fl oods. The company implements proj- In January 2018, we donated bins to The Golf was a success and the old Key activities •The company also donated $20 ects in communities geared at sup- City of Mutare through the CZI. in the community were assisted to raise •To mention but a few, National 000 towards efforts to contain the porting and enhancing livelihoods. This has contributed to the cleanliness funds for their upkeep. Foods Ltd has partnered with Kap- cholera pandemic. To this end the company identifi es of the city. It has also raised awareness HIV and Aids workshop nek Trust to work on the rehabilita- Improving well-being schools, hospitals, church run in- to the community that the environment We held a workshop for the drivers, tion of schools in the disadvantaged The company adopted two char- stitutions in disadvantaged com- should be kept clean. employees and agents in conjunction communities in Zimbabwe. NFL has ities in each of the ten provinces in munities and support self-initiated Training and development with Nectoi. The work shop was to raise so far renovated and rebuilt eight the country to which a monthly pro- projects to contribute towards social Mutare Dry Port is playing a pivotal awareness of the dangers of HIV and schools in Sanyati and Mhondoro vision of foodstuffs is given over a causes. role in training of students from different STIs to the community. Ngezi rural districts. 12 month’s rolling plan. NFL also The company will continue to in- high tertiary institutions. Currently we People were tested for HIV and Aids •The company assisted Masvin- donates a day in the year for staff to vest in social causes in the commu- have nine students from various institu- and also given condoms for free thereby go Province with $20k during the participate in an organised charita- nity within which we operate. tions and different areas such as Account- reducing the spread of HIV and Aids. National Foods rebuilds 8 schools in Sanyati and Mhondoro Ngezi rural districts

National Foods Ltd (NFL) has taken an initiative to support 38 centres in vulnerable communities across the country monthly. These centres include orphanages, special needs groups, vulnerable women and children, schools, hospitals, churches, wildlife and other national social support e.g. the Cholera Pandemic.

BJECTIVES tional Disaster floods. National Foods Ltd’s objec- • The company has also donated Otive is to plough back to the US$20,000 towards efforts to communities within which the com- contain the Cholera Pandemic. pany operates by enhancing lives and improving wellbeing. NFL en- THE COMPANY’S CSR PIL- gages in proactive initiatives which LARS deliver an impact to the social-eco- Improving Well-being nomic well-being of communities The company adopted two charities by way of investing in our society. in each of the ten provinces in the NFL also participates in initiatives country to which a monthly provi- that are geared towards the preser- sion of foodstuffs is given over a vation and long term sustainability 12 month’s rolling plan. NFL also of the environment. donates a day in the year for staff to participate in organized charitable KEY ACTIVITIES causes. • To mention but a few, National Enhancing lives Foods Ltd has partnered with The company implements projects Kapnek Trust to work on the in communities geared at supporting rehabilitation of schools in the and enhancing livelihoods. To this disadvantaged communities in end the company identifies schools, Zimbabwe. NFL has so far ren- hospitals, church run institutions ovated and rebuilt 8 schools in in disadvantaged communities and Sanyati and Mhondoro Ngezi support self-initiated projects to rural districts. contribute towards social causes. • The company assisted the Mas- The company will continue to invest vingo Province with 31 tonnes in social causes in the community during the Tokwe Mukosi Na- for the long term. The Financial Gazette ZIM NATIONAL CORPORATE SOCIAL RESPONSIBILITY AWARDS SPECIAL FEATURE November 29-December 5 2018 | Page S3 Bonvie committed to better community

ORPORATE social responsibility (CSR) Cis an integral part of lanaheil flier.jpg https://mail.google.com/mail/u/0/#advanced-search/from=info@absolute... our company culture. As a responsible medical aid scheme, we respect the in- terests of our stakeholders — shareholders, employ- ees, members, suppliers, service providers, regula- tors, government and the community at large. We aggressively seek platforms to contribute to the well-be- ing of the communities in which we do business. Bonvie is represented in almost all Zimbabwean provinces in the medical aid business, having been able to enrol a balanced portfo- Bonvie Medical Aid receiving their Sustainability Award. lio of corporate and indi- vidual membership. Our es to the community to l We embarked on re- onto any available scheme business continues to grow manage the risk of some sponsibility efforts to make plans offered by a valued throughout the country and diseases through weight our overall operations even and functional medical aid as a responsible corporate loss over and above physi- more noticeable in the com- funder. Bonvie has partner- citizen, we strive to provide cal strength. munity as we launched an ships with service providers meaningful and impactful l Donated sports kits to old people’s home donation throughout the country so value to our stakeholders. selected state universities package to Ekuphumule- that members have the con- Business cannot grow in particular NUST, LSU, ni Old People’s Home in venience to access medical where the community is Chinhoyi University of Bulawayo, an initiative aid services as and when it struggling and hence, this Technology, Great Zimba- with social impact on the is needed. underpins our CSR culture bwe University, Midlands well-being of the elderly We encourage those at Bonvie Medical Aid State University, Bindura including, health, sanitary that are already members Scheme. We have achieved University of Science and wear and food. of Bonvie to remain on the a lot together in selected Technology and Zimbabwe l We sponsored and scheme where we are now regions from the time Bon- Open University. participated in the Spar leveraging on technology vie established its business. lBonvie is now the Rainbow Run, an event to to enhance consultation Previously, the scheme proud sponsor of Chicken raise funds for Childline and treatment services. The gave funding support in Inn Football Club. Branded Zimbabwe. future is certainly looking setting up clinics at Lupane soccer kits, gym facilities l We paid school fees bright for Bonvie as we

State University (LSU) and and medical aid cover are for selected students in continue crafting and of- 1 of 1 11/20/2018, 2:51 PM the National University of part of the donated pack- primary and secondary fering relevant medical aid Science and Technology ages as we support sporting schools in Epworth through plans at affordable rates. (NUST) over and above culture in the country with an organisation called an ambulance donation to valuable impacts on health FACEZ whose mission is NUST. This year, we have conditions of both the to provide for economically great news as the scheme members and community. challenged children in the achieved the following: l Bonvie is currently community. l Launched healthcare utilising technology (Elec- l We recently contrib- centres in Bulawayo and tronic Data Interchange) to uted funds towards the Kid- Harare accessible to all so submit and process member zCan Zimbabwe Children’s as to enhance patient expe- claims, enhancing service Cancer Relief initiative. rience to those in need of provider experience and For Bonvie to be able to essential consultation and reducing the use of paper survive and ensure more of treatment services. claims that have a negative the above for our country, l Opened fitness class- effect on the environment. one simply needs to enrol Page S4 | November 29-December 5 2018 The Financial Gazette

Standardisation removes trade barriers TANDARDISATION removes trade our, said standardisation was an integral as- “Inter Africa trade is possible when qual- barriers and allows organisations to pect of regional growth and globalisation as ity standards are key goals to be pursued by Sexport their products and services in- it is an important tool for trade. organisations. Standards offer market driven ternationally, Sifelani Jabangwe, Confeder- “The application of standards leads to the solutions that capture current good practices ation of Zimbabwe Industries (CZI) presi- production of goods and services that meet and we encourage their use throughout the dent said. international standards. This removes the economy,” he said. Addressing guests at the 2018 Nation- barriers to trade and allows organisations Managing quality in fundamental for al Annual Quality Awards (NAQA) hosted to export their products and services and organisations as quality products help to by the Standards Association of Zimbabwe accessing international markets,” Jabangwe maintain customer satisfaction, loyalty and (SAZ) recently, Jabangwe, the guest of hon- said. reduction of risks and costs of replacing

Guest of honour at the 2018 National Quality Awards Sifelani Jabangwe, CZI president. faulty products. “Standards are therefore an important tool for achieving sustainable economic development and growth. There is need to increase awareness and wide- spread application of standards even by Zimbabwean companies, in order to enhance the overall economy of the African continent,” said Jabangwe. The National Quality Awards are held annually and companies that win locally automatically proceed to the Southern African Development Community Re- gional Annual Quality Awards. “The aim of the awards is to recognise and appreci- ate organisations and individuals who are contributing to quality advancement in all sectors of Zimbabwe, by having measurement and quality systems, procedures and processes that are in line with local, regional and international practices and who use quality advance- ment to support regional development and growth,” he said. The NAQA awards are organised by the Nation- al Standardisation Quality Assurance, Accreditation and Meteorology (SQAM) committee which forms an integral part of the national infrastructure and is rep- resented by SAZ, SIRDC, Ministry of Industry and Commerce and the Medicines Control Authority of Zimbabwe. NAQA is a prelude to the SADC Quality Awards, which are held during the Annual TBT Cooperation Structures Meeting and will be hosted by Namibia in March 2019. The SADC Quality Awards ceremony is held ev- ery year to coincide with the general meetings of the SADC coordinating structures, where the heads of quality institutions of all of the SADC member states come together to conduct their business in support of harmonising Standards, Measurements and Technical Regulations in order to continually work towards a region free from unnecessary trade barriers. The SADC Annual Quality Awards serve as a platform for private sector engagement on quality of goods and services. The objective of the awards is to recognise enterprises that are implementing quality management principles for competitiveness and mar- ket access. The SADC Annual Quality Awards con- tribute to increased awareness of the importance of a quality culture and use of international standards for product competitiveness and in trade. SADC member states continue to give support and engage depart- ments and institutions to continue to organise the na- tional competitions and encourage private and public sector institutions to participate. NAQA objectives  To recognise organisations that excels in contin- uous quality improvement.  To motivate organisations to adhere to proper quality business norms.  To encourage organisations to comply with lo- cal, regional and international quality standards.  To encourage application by organisations of the To Page S5 The Financial Gazette 2018 NAQA AWARDS SPECIAL FEATURE November 29-December 5 2018 Page S5 Standards for economic growth HE National Quality Awards (NAQA) hosted by the Standards Association of Zimbabwe Thave grown from humble beginnings, with only a few entrants. NAQA provides for five categories of awards. In the first four, two awards per category are available: l One for small and medium enterprises (SME) with less than 100 employees, and l One for organisations with more than 100 employees ― large enterprises (LE). The fifth category is an individual award. Category 1: Company of the Year Two awards, SME and LE: awarded to a compa- ny or organisation that has proactively and effec- tively implemented quality principles. Category 4: Exporter of the Year Two awards, SME and LE awarded to a company or organisation that has made significant progress in commencing or expanding exports to new or wider markets by introducing quality in their company. Category 5: Individual award for quality This award is given to an individual that has Service of the Year Small and Medium Enterprises first runner-up Company of the Year Large Enterprises first runner-up made significant input into National Standards, Radio Solutions Volsec Security Private Ltd Quality Assurance, Accreditation and Metrology SQAM efforts. Company of the Year Large Enterprises Winner: Schweppes Zimbabwe Limited First runner-up: Volsec Security Private Ltd Company of the Year SME Winner: ZimTrade First runner-up: Sign Aces (Pvt) Ltd Product of the Year Large Enterprises Winner: Bitumen World First runner-up: Schweppes Zimbabwe Limited Product of the Year SME Winner: Sign Aces (Pvt) Ltd Achieving business excellence through standards First runner-up: Mukati investments T/a Well- pure Second runner up: Jacob Bethel Corporation (Zimbabwe) (Pvt) Ltd Service of the Year Large Enterprises List of certi ed water clients 2018 Quarter 3 Winner: Volsec Security Private Ltd Service of the Year SME Winner: Sign Aces (Pvt) Ltd First runner-up: Radio Solutions Second runner-up: Mukati Investments T/A Organisation Trade/Product name Wellpure Individual Award for Quality 1 Sommerby Sommerby Water Winner: Romana Marunda First runner-up: Danisa Chinamasa 2a Schweppes Bonaqua Second runner-up: Tinashe Mutarisi 2b Schweppes Schweppes Still Water 3 Chromopak Adlife Standardisation 4 Mukati Investments Well Pure 5 Tanganda Tingamira removes barriers 6 ZLG ZLG From Page S4 measurement tool kit, quality assurance, quality con- 7 Dairibord Aqualite trol and quality management systems. l To enhance understanding of quality principles, 8 Vivon Vivon business methods and all national and Zimbabwe har- monised standards that promote competitiveness. 9 Bubble Springs Bubble Springs l To recognise individuals that excels in their con- SAZ offers a beautiful serene venue for meetings and training purposes at its Head Office in Borrowdale. tributions to the SQAM quality drive. 10 Oasis Oasis Organisations can build good reputations for qual- 11 Milset EnterprisesSAZ Certified Water ClientsNatures as at 2015-09-18 Paradise ity by certification to a globally recognised quality standard such as the ZWS ISO 9001 :2015. Quality 12Organization Baobab WaterTrade/Product Name OrganizationBaobab Water Trade/Product Name will influence the company's good reputation. A strong reputation for quality can be important in differentiat- 1 13 Sommerby Organization Velez Enterprises Sommerby Trade/Product Water Name 22Jojo Organization Baobab Water Water Trade/ProductBaobab Water Name ing the company in markets that are very competitive. 2 Schweppes Schweppes Water 23 Raceys Enterprises Nova Springs Water 3 Rainbow Beverages Mr Juicy 24 Velez Enterprises Jojo Water Quality is critical for customer satisfaction and 4 14 Chromopak Wing King InvestmentsAdlife 25Victoria Hurricane Water Plus Hurricane their loyalty for them to continue buying the products. 5 Mukati Investments Well Pure 26 Les Nouveau Fountain Water On the other hand, poor quality or a product failure 6 15a Tanganda Cairns FoodsTingamira 27Border Redlight Streams WaterBBW Water that results in a product recall may lead to negative 7 ZLG ZLG 28 Healthy Lifestyle Zone 3 water publicity and damage to the company’s reputation. 8 16 Reichmark Denver Aquasplash Water 29Sabie Narru DelightWater Naqua Water The Kingdom of Swaziland played host to the 2017 9 Dairibord Aqualite 30 Wing King Investments Victoria Plus 10 17 Nilestroom LS Waters Krystal Water 31LS PeakstyleWaters Investments Mr Water SADC Quality Awards where Zimbabwe scooped five 11 Vivon Vivon 32 Bescom Panem Water awards in various categories. In 2018 the awards were 12 Hayling H2O Pur 33 Datlabs Datlife held in Johannesburg, South Africa, where two Zim- 13 18 Bubble SpringsAqua Mist Bubble Springs 34Aquamist Suneast Investments Water Mambo Water babwean companies won two awards, bringing to 13 14 Kumakomo Beverages Kumakomo 35 Dream Tree Dream Tree the total number of quality awards Zimbabwe has won 15 19 Ellengrow Investments Pinebreeze Investments Mr Water 36Exotican Cairns Foods Water Boarder Steams/ Willards Water since 2011 when the SADC awards were established. 16 Norseman Nyanga Water 37 Victoria Falls Water Company Top Drop The previous winners in the regional SADC awards 17 20 Oasis Hitlink InvestmentsOasis 38Everest Cairns Foods Water Boarder Streams/Willards Water 18 Milset Enterprises Natures Paradise 39 Victoria Falls Victoria Falls Water are; 19 Zimpac Zim Zim 40 Denver Sabi Water l BAK Logistics (Private) Limited – 2011/2012 20 Liquid asset Absolute Aqua 41 LS Waters LS Waters l Servcor (Private) Limited – 2012/2013 21 Inwai Inwai 42 Aqua Mist Aquamist Water l Chicken Slice – 2012/2013

l Integrated Properties – 2013/2014 KR l The Avenues Clinic – 2013/2014 l Schweppes Zimbabwe – 2014/2015 l BOC gases – 2015/2016 [email protected] F1703A22 l CPL – 2015/2016 l Peace Security – 2015/2016 l Cimas Laboratories – 2015/2016 l Bonaqa/Schweppes – 2015/2016 l Schweppes – 2016/2017 l ZimTrade – 2016/2017 Page S6 | November 29-December 5 2018 The Financial Gazette The Financial Gazette 2018 NAQA AWARDS SPECIAL FEATURE November 29-December 5 2018 | Page S7 Celebrating standardisation in Zim businesses

HE National Annual Quality Awards them relate to quality issues. In my capaci- (NAQA) continues to celebrate qual- ty as president of the African Organisation T ity and excellence across different for Standardisation (ARSO), I am delighted industry sectors. to be associated with these prestigious “There are a number of awards that are awards, which seeks to promote quality hosted by various individuals and organi- products, and services destined for Africa sations in Zimbabwe throughout the year, and made in Zimbabwe,” Gadzikwa said. but this particular event is unique because Awards are important to organisations, it is the only recognised platform which to create benchmarks and to promote is specifically organised to acknowledge leadership. Leadership and top management quality at national level and applicants have should play a critical role here. to provide proof of sustained application of “I am convinced that the key to success- productivity and quality principles, and go ful management of quality begins at the top through a rigorous adjudication process. (leadership) of the organisation. Effective “The NAQA winners proceed to par- leadership is therefore a key factor of qual- ticipate at the SADC Quality Awards,” ity management. Standards Association of Zimbabwe direc- “Management and leadership commit- tor-general Eve Gadzikwa said when ad- ment are indispensable elements for a suc- dressing guests at the 201 NAQA ceremony cessful quality implementation. Leadership in Harare recently. and management roles are important for NAQA presents an opportunity for win- quality and innovation and in the develop- Standards Association of Zimbabwe director-general, Dr Eve Gadzikwa ners to benchmark at SADC level and can ment of a highly motivated and performing be used as a tool to provide structured and team within organisations. robust criteria upon which organisations “The nurturing of a performance and can carefully assess their quality achieve- result-oriented culture based on quality is ments and successes as well as identify crucial in the development of an organisa- areas that need improvement. tion and the economy at large. Employee “Once a company or individual receives involvement has great impact on quality a NAQA, it is no surprise that the award management, it is crucial that leadership will open many doors and will elevate your should encourage the involvement and organisation to a global market. The value commitment of management and, all human of these awards tonight therefore goes be- resources for the quality management’s yond just the physical shield or certificate success. but creates new opportunities. “To gain commitment and engagement of “The NAQA have grown, from their people to sustain business excellence is im- humble beginning with only a few entrants. portant. Employee’s involvement, creativity Today, these prestigious awards now attract and innovation levels are positively led by many organisations from various sectors. leadership influence. Managers who are The number and quality of entrants is im- committed to service quality and employ proving each year. an empowering leadership style can create “Organisations wishing to sell their a transformational climate that conveys products, especially in international mar- their commitment to quality service to their kets, face several challenges and many of employees,” she said. Product of the Year SME fi rst runner-up Mukati Investments T/a Wellpure

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4 Beit Avenue, Milton Park, P.O Box CY 1832, Causeway, Harare, Zimbabwe (Tel: +263-4-796052, 796328, 2933512/3, 764370, I Fax: +263-4-793387) www.radiosolutions.co.zw Page S8 | November 29-December 5 2018 The Financial Gazette o instituteI of directors zimbabwe ‘Promoting CorporateD Governance Excellence’ IoDZ New Council Congratulatory Feature Integrity & Enterprise Meet the 2018/19 IoDZ council

I FEEL honoured to be elected as the chair- Council and look forward to us jointly getting support all director requirements to make iat in keeping the Institute alive. It is incumbent upon person of the Institute of Directors Zimbabwe IoDZ to the stature of an international IoD. them effective in their leadership and gover- this Council (2018/19), as IoDZ turned 60 years this year (IoDZ). I take your selection as Council’s The Institute of Directors (IoD) is a glob- nance roles. IoDZ was the 1st IoD out of UK, (2018), to make it more visible and the “go to place” for commitment and confidence that as a team ally recognised brand. It is termed the home 60 years ago. We are grateful for those who all directors in Zimbabwe. we will achieve the mandate. I accept to lead for directors and is meant to capacitate and came ahead of us as Councillors and Secretar- Good Corporate Governance requires that we come up with a strategy that will deliver on the very reasons Institutes of Directors exist. We will during our term en- sure IoDZ will have the appropriate structures, systems and processes for it to be efficient and effective and offer an appealing value proposition. I will repeat that IoDZ ought to be the “go to place” for Directors in Zimbabwe. We will be guided by the four pillars of good cor- porate governance, namely, responsibility, fairness, ac- countability and transparency. We promise that we will walk the talk and we will be ethical. We will religiously adhere to the precepts of good corporate governance and we intend to transform IoDZ into a Centre of Excellence. Because we exist for directors we will be responsive to trending director issues and will value directors’ input as we take IoDZ a level higher in the time we have. I look forward to a very eventful and productive ten- ure. The Chairman — Institute of Directors Zimbabwe

Tendai Masimirembwa — IoDZ chairperson

MASIMIREMBWA is the founder and managing con- sultant for Code_IT Systems. She is a seasoned ICT pro- fessional and has been in leadership for more than 20 years. She is an associate of one of the big four account- ing firms in Zimbabwe. She has extensive experience in the financial services sector and in the creation of competitive advantages through the strategic deployment of technology. She is a passionate project manager, (the underplayed arm in strategy execution). Masimirembwa keenly believes in the strict obser- vance of corporate governance precepts, as key determi- nants for the success of organisations and nations. Her interests include involvement in the development and adoption of standards. She is a holder of an MBA from NUST, HND in Computer Studies and Post Graduate Diploma in Management. She chairs the IT Governance and Service Management Committee for the Standards Association of Zimbabwe and is a Trustee for the ZIM- CODE Trust. To Page S9 The Financial Gazette 2018/19 IoDZ COUNCIL SPECIAL FEATURE November 29-December 5 2018 | Page S9 Meet the 2018/19 IoDZ council

From Page S8 DR DIARRA (PhD), is the chief executive of the Zimbabwe Institution of Engineers, Civil/Structural En- Cynthia Tapera — Chairperson ety (ZAS). A scientist by education, she gineer, Academic with over 35 years’ experience. Lec- strategy and marketing committee traded the test tubes for the Marketing tured at the University of Zimbabwe, NUST, Harare and WITHOUT a marketer in the room, a profession. Bulawayo Polytechnics, worked for the United Nations board could only have a rudimentary con- Tapera holds a BSc Hons Degree in more than 30 countries, winner of the Megafest Busi- versation about brand strategy, customer in Food Science and Nutrition, Execu- ness Awards: Megafest CEO of the year 2016, member insights, or e-commerce. tive Diploma in Business Leadership, of various boards both in academia and industry and Tapera is a seasoned, tenacious and MComm Marketing Strategy and is cur- member of the Engineering Accreditation Board of Zim- highly qualified senior manager of dis- rently studying towards the Chartered babwe. tinguished performance with a combined Marketing Certification with the CIM Diarra is the former chairman of the Research and In- experience of more than ten years in (UK). She is enthusiastic about helping tellectual Output — Science, Engineering & Technology manufacturing, advertising, insurance, boards gain a better understanding of (RIO-SET) Adjudication Committee for Engineering & agriculture and exhibitions. marketing’s role, its components, and its Technology projects evaluation, patenting and commer- She is the head of Sales and Market- impact on resources, risk, sustainability cialisation (under the Ministry of Higher & Tertiary Ed- ing for the Zimbabwe Agricultural Soci- and performance. To Page S10 ucation Science & Technology Development). He is a certified and registered practitioner of alterna- tive dispute resolution (Adjudication, Mediation, Arbi- tration) (Zimbabwe, UK, South Africa). Member of the Dr Sanzan Diarra — Vice chairperson dispute avoidance Board under the Dispute Resolution Board Foundation (USA). Member of the Anti-Corruption and Transparency Committee of the World Federation of Engineering Or- ganisations (Paris based).

Wellington Madya — IODZ councillor and treasurer MADYA is the chairman of the Finance and Risk Com- mittee of the Institute of Directors Zimbabwe. He is the head of Finance and Administration at CitiMed Chitung- wiza Hospital. He has experience in Financial Model- ling, Health Care Finance, Risk Management, Strate- gic Management and Financial Reporting among other skills. Madya is a holder of a Master of Business Admin- istration Degree (University of Zimbabwe), a Bachelor of Accountancy Honours (University of Zimbabwe), and several Post-Graduate Accounting and other Profession- al Qualifications including the Company Direction Cer- tification offered by the Institute of Directors Zimbabwe.

Manyara Chigunduru — Chairperson finance and audit committee CHIGUNDURU is the managing partner of Marianhill Chartered Accountants, a firm of Auditors, Accountants and Consultants. She is a qualified chartered accountant (Zimbabwe) and a registered public auditor and has over 17 years’ experience spanning across different sectors covering financial management, accounting, auditing, taxation and advisory. She advises in areas of corporate and business strat- egy, financial management, business recovery and turn- around, internal controls, risk management and business incubation for start-ups. She is a holder of a Masters Degree in Business Leadership with UNISA. She is a Tony Elumelu Alumni and a mentor to start-up business- es across Africa Chigunduru sits on the board of the Zimbabwe Wom- en’s Microfinance Bank and she chairs the board audit committee. As a councillor with the Institute of Direc- tors, she chairs the Audit and IT Committee. She is an active member of the Institute of Chartered Accountants of Zimbabwe and is the vice-chairperson of the Public Sector Task Force Committee. She is a member of the Zimbabwe Women Chartered Accountants Network.

Jorrum Munyaradzi Chinamasa - Chairperson training, research and development committee CHINAMASA is a business planning consultant with China Communication Services. China Communica- tions Services Corporation Limited (CCS) is a compa- ny listed on the main board of HKEX. He is chairman of Training, Research and Development Committee of IODZ and a full member of the Business Excellence - South Africa and Computer Society of Zimbabwe. He holds a HND in Advanced Systems Analysis and Design and a Diploma Systems Analysis and Design (ACP – UK). He is currently doing his final semester - Master in Business Administration (MBA). Additionally he holds qualifications in Management and Business Leadership. He has been involved in ICT and Telecoms services for over 20 years. Page S10 | November 29-December 5 2018 2018/19 IoDZ COUNCIL SPECIAL FEATURE The Financial Gazette Meet the 2018/19 IoDZ council

From Page S9 and corporate services manager for the Oswell Binha — Councillor Continental Free Trade Area (CFTA) facilitated by Unit- Caroline Ann Chigumira Zimbabwe Newspapers (1980) Limited. BINHA, the chairperson of the CEO African Roundtable ed Nations Economic Commission for Africa (ECA). — Chairperson of corporate She is the immediate past corporate sec- board of governors, is the promoter and chief executive Private sector participant in the design of boosting In- governance and human resources retary for the Civil Aviation Authority of of Orac Systems, an engineering maintenance company tra African Trade (BIAT) Nomenclature, Road map and CHIGUMIRA is a holder of a Bachelor Zimbabwe. specialising in bulk materials handling designs, manu- Plan of Action since 2012. He is a presenter, panellist of Law (BL), Bachelor of Laws (LLB) Chigumira has sat on the inaugural facturing and installations. The company product offer- and facilitator on several local, regional and internation- and a Masters in Women’s Law (LLM) board of the Zimbabwe Academic Re- ing includes wear resistant lining, mechanical and elec- al business summits and conferences. with the University of Zimbabwe. She is search Network (Zarnet) and has also sat trical engineering, maintenance and equipment repairs He is also the former chairperson of Business Coun- currently in the final stages of writing a on the United Theological College board. servicing major mining, manufacturing, agriculture and cil of Southern Africa and Private Sector Representa- dissertation in partial fulfilment of a Mas- She is a councillor with the Institute agro-processing industries in Zimbabwe tive at the Tripartite Negotiations. Although this Apex ters Degree in Business Administration of Directors Zimbabwe (IoDZ) and is Binha is a councillor with the Institute of Directors Body was short-lived, it was created to harmonise broad with the University of Zimbabwe and an currently chairing the Corporate Gov- Zimbabwe (IODZ), member of the Institute’s Audit and private sector cross cutting issues for engagement with Executive Masters in Peace Leadership ernance and Human Resources and Re- IT and Strategy and Marketing Committees, member of key regional stakeholders. He is also former president and Governance with Africa University. munerations Committee. She also sits on Women in Business and Conference Awards (WECA) of Zimbabwe National Chamber of Commerce – ZNCC, She is a legal and governance expert. the Training, Research and Development panel of adjudicators, member of the SADC Quality former deputy president of Business Council of Zimba- Chigumira has been employed by the Committee. Chigumira is an International Awards panel of adjudicator/judges. bwe, an apex private sector organisation in Zimbabwe, Ministry of Justice Legal and Parliamen- Finance Corporation (IFC) trained Train- Binha participates in several SADC and African former board member and chair of Pan African Chamber tary Affairs in the position of Magistrate er of Trainers on Corporate Governance. Union Think Tank conferences, meetings of experts, of Commerce and Industry (PACCI).He was a member and rose to the position of Provincial She is also passionate about fairness jus- Governments Senior officials and Ministers. He has par- of Zimbabwean National Code on Corporate Crafting Magistrate. She has also been the legal tice and good Governance. ticipated in the formulation of a roadmap for creation the Committee. Former vice -chairperson of Buy Zimbabwe board and chair of Business Affairs Committee. Binha has chaired several company boards in both private and public sector covering Engineering, agricul- ture, agro-processing, construction, quarry among oth- ers. He also has interests in small scale gold mining in Zimbabwe. He currently chairs the National Branding Sub-Committee on Trade being spearheaded by the Of- fice of the President and Cabinet (OPC) in Zimbabwe

Christina Muzerengi — Councillor MUZERENGI joined Grant Thornton in April 2005 as a manager responsible for Tax. She was appointed as partner – Tax and Advisory Services in September 2012, a position she holds to date. Muzerengi is a certified tax accountant and an associate member of the Institute of Certified Tax Accountants. She holds a Masters de- gree in Business Administration, a Bachelor of Business Studies Honours degree from the University of Zimba- bwe and a Post Graduate Diploma in Applied Taxation. She is also an associate member of the Association of Certified Fraud Examiners, registered Estate Adminis- trator and an ordinary member of the Institute of human resources and administration. She has more than a two decades of experience in taxation, part of which was with the Zimbabwe Revenue Authority. Besides exten- sive knowledge in tax, Muzerengi has a combination of other skills in business advisory services and corporate governance.

Elisha Ngunga — Councillor NGUNGA is the chief executive and principal officer at the Construction Industry Pension Fund (CIPF) and prior to that he was the pensions manager since 1998. He has strong and good managerial attributes, strategic appreciation and vision that led him to build and imple- ment sophisticated plans, with a proven track record, that has explicitly supported the business needs of CIPF. He is a self-driven, self-reliant, and an exemplary leader who uses a collaborative approach with good interper- sonal skills to engage, motivate and encourage others through change. Ngunga is a firm believer of good corporate gov- ernance, change management, empowerment through training and provision of equal opportunity to both boy and girl children. He currently serves as a council member of the Zim- babwe Association of Pension Funds, National Employ- ment Council for the Insurance Industry and Insurance Employers Association of Zimbabwe. In charity he is also the chairman of the Kariba Development Trust, Trustee for Revival Sports Academy Trust and a member of the Resource Mobilisation Committee of the Anglican University in Zimbabwe. He is a holder of an MBA — University of Glouces- tershire (UK), Diplomas in Business Studies and Man- agement, several other certificates and is a licensee of Success Motivation International, Inc (USA).

Jackie Sande — Councillor SANDE is the managing partner for Sande. She is a law- yer duly admitted to practice as such in the courts of Zimbabwe. She is also a holder of a Master of Science Degree in Strategic Management from the Chinhoyi University of Technology. She has worked for the government in the Attorney General's Office and in several law firms before setting up Sande & Associates. Her strength lies in litigation, competition law, notarial work and conveyancing. Sande is also the managing director for Simuka Realtors which specialises in property buying, selling and letting. The Financial Gazette 2018/19 IoDZ COUNCIL SPECIAL FEATURE November 29-December 5 2018 | Page S11 All set for IoDZ Diamond Commendations

APTAINS of industry, gov- admirable.” Tapera said. Commendations categories to be awarded in- ernment officials and several “The Institute is proud to ac- clude; Loyalty Commendation for individual and invited guests are expected knowledge those members who have corporate members, Special Mention Commen- C dation, Corporate Governance Writer Commen- to grace the Institute of Directors gone above and beyond their usual Zimbabwe (IoDZ) Diamond Jubilee call of duty to contribute to the or- dation, Corporate Governance Coverage Media Commendations that will be held at ganization’s success. We would like Commendation, Entrepreneurship Commendation the Rainbow Towers on December 5, to extend our appreciation and grati- for corporates, first female chairperson of the 2018 under the theme: “Celebrating tude to their continued dedication, it IoDZ, Corporate Governance Training Commen- 60 years of advocating good corpo- is because of our members that the dation. rate governance for effective and Institute is a thriving and growing “The Diamond Jubilee Commendations show- sustainable growth”. organisation,” She added. case the achievement in the development of the The Financial Gazette spoke to Tapera told this paper that all is IoDZ as such we look forward to hosting the cap- Cynthia Tapera IoDZ Strategy and set and delegates are expected from tains of industry, government officials and invit- marketing chairperson who high- various sectors to grace this presti- ed guests to this premier event. In line with this, lighted that this year the Institute gious ceremony. the Commendations will be a memorable white commemorates its milestone 60th an- “These Commendations are com- tie event for business leaders, drawn from all the niversary. ing at a stage when corporate gov- sectors of the economy and distinguished person- “It is therefore fitting that the In- ernance is topping on the national alities from the region. stitute should recognize the commit- agenda,” Tapera indicated. “In warm appreciation of our association ments and efforts of all the organi- We owe our accomplishments and Cynthia Tapera — IoDZ strategy and marketing during the past year, we extend our very best sations, men and women who have successes to the hard work and dedi- chairperson. wishes for a happy festive season.” contributed, in one way or another cation of our members and partners. to the development of IoDZ. They “On behalf of the Institute I have made notable contributions in would like to thank all our partners the support of good corporate gov- for acknowledging and being aware ernance and have been significant- of the value and role that IoDZ plays ly present in the journey of the In- in advocating for good corporate stitute hence the Commendations. governance practices for business Simply put, a commendation is a success and hence taking a leading formal statement of praise for an in- role in anchoring the Commenda- dividual who has done something tions. Significant milestones of the IoDZ Diamond Jubilee Commendations

STABLISHED in the then Fed- •It assisted the Zimbabwe Gov- eration of Rhodesia on March ernment with the roll out of the Cor- E 12, 1958,the Institute of Direc- porate Governance Framework for tors Zimbabwe (IoDZ) is a business State Enterprises and Parastatals, membership organisation providing a partnering with PWC. home for directors and executives of •It is one of the three promoters companies and other organisations, it behind the current comprehensive is also there to champion the ethos National Code on Corporate Gov- of good governance within the whole ernance of Zimbabwe which was fabric of the national economy of our launched on by our President Em- country. merson Mnangagwa on April 9, 2015. Some of its significant milestones •It has been contributing to cor- include: porate governance legislation that •It was the first oversees branch of includes the Companies Act draft bill the Institute of Directors UK, which and the State Entities Corporate Gov- itself was established in 1903. ernance Bill, now law as the Public •IoDZ has been making strides to- Entities Corporate Governance Act wards strengthening corporate gov- (PECOGO). ernance in Zimbabwe and beyond. •IoDZ is a founding member of •Way back around 1999, it was the African Corporate Governance involved together with the Com- Network (ACGN), a network of In- monwealth Secretariat in the devel- stitutes of Directors across the Af- opment of a Code of Principles of rican continent whose key objective Corporate Governance for Common- is to promote good corporate gover- wealth countries and did help to es- nance on the continent tablish institutions to drive corporate •The support that the Institute has governance in Botswana, Gambia, given to the Zimbabwean corporate Ghana, Kenya, Tanzania, Uganda director over the past six decades has and Sierra Leone. been invaluable and commendable. Page S12 | November 29-December 5 2018 The Financial Gazette

IR conditioning and refrigeration equipment manufacturer Carrier is to become a separate in- Adependent company after parent United Technol- ogies (UTC) announced its spin off. The previously-rumoured move follows UTC’s com- pletion of the purchase of aerospace company Rockwell UTC to spin off Collins, making UTC an industry-leading aerospace sys- tems supplier. As a result, UTC says it now intends to separate into three independent companies by spinning off its Carrier and Otis elevator businesses. “Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its Carrier business industry in innovation and customer focus, and maxi- mise value creation,” Gregory Hayes, UTC chairman and CEO said. Currently known as Climate, Controls & Security (CCS), Carrier is a leading global provider of HVAC, refrigeration, fire, security and building automation tech- nologies with sales of $17,8 billionn in 2017. The com- pany’s portfolio includes industry-leading brands such as Carrier, Kidde, Edwards, LenelS2 and Automated Logic. Hayes will oversee the transition and will continue in his current role as UTC chairman and CEO following the separation, which is expected to be completed in 2020. “I’m confident that each company will continue our proud history of performance, excellence and innovation while building an even brighter future,” said Hayes. As standalone companies, United Technologies, Otis and Carrier will be ready to solve our customers’ biggest challenges, provide rewarding career opportunities, and contribute positively to communities around the world.” UTC says the three independent companies “will be appropriately capitalised” with the financial flexibility to take advantage of future growth opportunities. “Each business,” it says, “will be better positioned to pursue a capital allocation strategy more suitable to its respective industry and risk and return profile, and enjoy greater flexibility with an independent equity currency and more appropriately aligned management and employee incen- tives.” Carrier’s founder Willis Carrier, credited by many with the invention of modern air conditioning, estab- lished Carrier Engineering Corporation in 1915. The company was acquired by United Technologies Corpo- ration in July 1979. Mergers and acquisitions will be key parts of Carri- er’s growth strategy after its spin-off from UTC, accord- ing to Hayes. Speaking after the announcement that UTC would spin off its CCS and Otis elevators businesses, Hayes said the move would allow each company to shape its own future. The Climate, Controls & Security (CCS) will become known, simply, as Carrier. On its own, it is a leading global provider of HVAC, commercial refrigeration, transport refrigeration, fire, security and building auto- mation technologies. Hayes maintained that Carrier would be better posi- tioned to pursue attractive M&A opportunities across its industry segments. “M&A is going to be part of the growth strategy of both Carrier and Otis,” he said, but acknowledged that anti-trust approval in the HVAC sector would be a hur- dle. “Anti-trust approval is one of the biggest risks that we see in consolidation in HVAC,” he stated and revealed that after the 14 month anti-trust investigation of the Rockwell Collins deal, “where there was very little over- lap”, it was hard for him to imagine how long it would take in the HVAC industry. “There would have to be divestitures if there is going to be consolidation,” he said. Hayes also recognised that being part of the UTC group, Carrier had not been free to make the investments that it might have done as an independent company. “The one missing piece of our portfolio is a VRF in- house solution,” he admitted. “So, today, we partner with Toshiba Midea for that product. We could have made that investment ourselves 10 years ago but chose not to.” Toshiba Carrier was formed in 1999 to capitalise on the VRF market. Toshiba Carrier formed a further joint venture with Chinese air conditioning manufacturer Midea in 2004. Hayes also noted that Carrier was more than just an HVAC company: “It is a very strong refrigeration com- pany with a leading market position in Europe. It’s a leading provider of refrigerated transport solutions as well as fire products and security products.” ― coolingpost.com The Financial Gazette SPECIAL FEATURE November 29-December 5 2018 | Page S13 Sustainable development for communities affected by mining

Selina Kudzai Zhuwarara Earlier this year communities in the diamond rich area of Marange protested over the lack of INING plays a vital role in the provi- development in their area and the environmental sion of various goods and services in impacts endured from diamond mining activi- Mour lives today. As such people have ties. had to learn to co-exist with the intrusive and In South Africa, communities in Umgungun- abrasive effects of mining. dlovu obtained a favourable court award allow- While the exploitation of mineral resourc- ing their right to object and stop the Department es is indispensable, it is important to structure of Mineral Resources from issuing a mining li- strategies around how communities can derive cense to an Australian company, Transworld En- attestable socio-economic value from sharing ergy and Mineral Resources in a bid to preserve their space with mining projects. their interests. The relationship between mining projects In October, Columbia's Constitutional court and communities is one borne out of intrusion made a landmark ruling which held that com- and disruptive overtones thus there is a general munities affected by mining cannot halt mining feeling of hostility between the two. or energy projects because the country's subsoil The divide between the expectations of the is national property which cannot be restricted community and the business objectives of min- by local authorities. ing entities is vast. There is a marked increase in litigation be- In order to bridge this gap, a deliberate col- All mining operations regardless of size should be monitored and held to account for tween communities, governments and mining laboration between mining entities, communi- environmental impacts. entities as communities become more aware of ties, government and extractive industry devel- their rights. opment groups should exist. It is clear that communities want to have The goal for every mineral rich country should be closely monitored. how they co-exist with communities, however, direct and enforceable rights in respect to the should be to ensure aggressive mitigation of Urban communities normally water down all mining activities whether artisanal, small protection of their interests in the awarding of environmental impacts and the transformation mining impacts because the natural environ- scale or large-scale impact societies and impar- mining licenses and want to also see the posi- of communities affected by mining through sus- ment has already been altered by many other tial measures should be in place to mediate the tive transformation of their communities from tainable broad-based development initiatives. urban developments’ however; communities resultant impact caused these operations. mining projects. When people think of community and min- should also be vigilant about compliance from All mining operations regardless of size The primary message in the increased num- ing company clashes many immediately visual- urban extractive projects as well. should be monitored and held to account for en- ber of clashes between communities and mining ise rural or sparsely populated areas. When mining and community interactions vironmental impacts and all players should also projects signifies that the current approach is no In as much as most mining activities occur are discussed both urban and rural communities be able to give back to the communities they op- longer tenable and a new and inclusive strategy in rural lands, urban communities also co-ex- should be encompassed. erate in to be best of their abilities and capacity. that accommodates balances and monitors the ist with varying degrees of extractive activities The other casual assumption is that only big The tensions between mining entities and interests of both parties must be introduced. which also generate changes or impacts that mining companies should be taken to task about communities cover a large range of issues. To S14 Page S14 | November 29-December 5 2018 SPECIAL FEATURE The Financial Gazette Sustainable development for communities affected by mining

From Page S13 ronmental impacts which include being endure and what benefits they can donations, employing local skills eously detect breach and enforce There is a growing feeling in com- dispossessed of tribal lands, health risks derive. and creating business support by corrective action is key in keeping munities affected by mining that they and environmental degradation. If communities cannot relate buying available local produce and the peace between communities should be afforded the right to accept or Host communities pay the highest to the benefits of mining, then the products between companies and and mining entities and in deriving deny the issuance of mining licenses. price for accommodating mining proj- crisis between mining projects and communities are appreciated, such full value from mining projects. An This has become a contentious issue ects and in many instances are left with- communities will only escalate and initiatives are heavily dependent on organized and dedicated forum be- between governments and communities. out reward or improvement to show for result in a zero-sum scenario. the viability of the mining entity tween regulators and communities Minerals belong to the entire country it. Currently some countries recog- and are easily affected by a change for liaison and feedback is also es- and are exploited for the general good This has made communities very nise the soft right termed the ‘social in tenure or financial trouble. Sus- sential. Such a forum becomes the and development of the nation. hostile to extractive projects and it calls license to operate’ which requires tainable projects are initiatives reference point for addressing of However, their exploitation affects for stakeholders in the industry to be mining projects to get the consent that are self-perpetuating regard- compliance and expectations. mainly the host communities who en- more committed to balancing the scale and support of the community be- less of whether the mine or devel- Mining companies have two pri- dure material social, economic and envi- between what the communities must fore they commence their opera- opment partner exists. The focus mary responsibilities, that is; the le- tions. when structuring corporate social gal obligation for compliance with This is not a legislated right, responsibility initiatives and gov- all fiscal, mining and environmental therefore it's a step that is often ernment policies aimed at assisting laws and the moral obligation to be overlooked or engagement is only communities should be the pro- good corporate citizens who give concluded with community leader- vision of facilities or projects that back to the community. Recently ship without extensive consultative have the potential for a multiplier many countries in Africa have also meetings with community mem- effect. Such projects include sup- integrated a third obligation that is bers. The extensive engagement of porting infrastructure and technolo- the legal obligation to participate communities should become a reg- gy initiatives to aide food security, in the transformation and inclu- ulated pre-condition in the mining energy, transportation networks, sion of previously marginalised industry. education, health, the proliferation races and other minority groups. In In Zimbabwe this soft right is of local industry and the integration Zimbabwe, this attempt was made currently not awarded the weight it of appropriate technological ad- through the Indigenisation regu- deserves during the EIA (Environ- vancements in all socio-economic lations of 2010 that required com- mental Impact Assessment) stage spheres. Investing in these areas pulsory 51 percent ownership of and should be separated from the create derivative opportunities for mining companies by indigenous general EIA framework and investi- extensive growth. Zimbabweans, the establishment gated independently with the aid of Governments should play a of community and employee share local government structures. To S14 leading role in ensuring that mean- ownership trusts and development Communities should also re- ingful development occurs in com- trusts. While these requirements ceive extensive education on min- munities that are affected by min- have since been repealed and re- ing projects and the frameworks ing. A clear vision should be set laxed to allow for more investment at national, district and company for these communities, outlining in the country, it is an area that is level governing the rights and ob- development milestones that be- gaining traction in many mineral ligations of all parties. Communi- come guidelines for local author- rich African countries as the issues ties should be able to relate to the ities to execute. Whilst there are of inequality have become increas- role of mining in the economy, the always national competing needs, ingly relevant to the politics of the role of companies and how they as government can lead communi- day. While this new requirement communities fit into the overall ma- ty development by establishing a is still contentious, an opportunity trix. This Base line interactive step well-structured framework for the exists for companies to participate becomes the basis for ascertainable, distribution of revenue from rents and collaborate on finding viable progressive and practical expecta- and taxes collected from the min- and sustainable means of becoming tions between the community and ing sector. A part of these mineral vehicles of social inclusivity and the mining entities and has a signif- revenues can be aside to prioritise transformation in countries battling icant bearing on shaping informed development initiatives in commu- with entrenched historical inequal- and fruitful initiatives towards nities. When governments take the ities. broad based development. lead in transforming communities These obligations of companies What constitutes sustainable de- and championing compliance then to government and communities are velopment initiatives in communi- the corporates operating in these pivotal because of the social, envi- ties affected by mining? It is a con- localities will follow suite. Gov- ronmental and economic footprint sidered view that any initiative that ernment also has a critical role as a that mining leaves in project areas. is dependent on the existence of regulator and enforcer, all compli- Every entity that mines, whether the mine or a development partner ance issues need to be consistently big or small should endeavour to for its continuation is not a sustain- and persistently monitored at the leave a positive development foot- able project. Whilst the occasional highest levels. The ability to tim- print in the area they operate in by fully complying with laws and participating in development initiatives. Mineral resources are fi- nite and once exhausted no further benefit can be derived. When minerals have become exhausted communities should not be left in the same posi- tion that there were in and not worse off than they originally were. The drive for responsi- ble mining is increasingly being entrenched in the mineral sector with the market being sensitised to the human rights, social and environmental issues surrounding extractive industries. Financiers and consumers of minerals are now requesting proof that their products are not sourced from sources that disregard these issues. This is an awakening that corporates can no lon- ger claim that generating profit is their primary function. Corporates are part and parcel of society and are expected to partic- ipate constructively in the societies that they operate in. Being part of the so- ciety and community en- tails that corporates need to utilise their resources and influence on finding sustainable solutions to the socio-economic issues of the day. The Financial Gazette November 29-December 5 2018 | Page S15 Page S16 | November 29-December 5 2018 The Financial Gazette The Financial Gazette November 29-December 5 2018 | Page 17 Column The danger of equating leadership to hierarchy

HE general misconception I see as I do my work same leaders who are effective show high screen at entry. defects. and interact with people is that the majority of levels of integrity. Higher level of cognitive Chomorro in the same article estimates Given the above findings it is imperative Tdecision makers and ordinary people equate ability is also linked to people who eventual- that 30 percent to 60 percent of leadership for organisations to screen for leadership leadership to hierarchy. If the job carries the title “man- ly emerge as good leaders (5 percent). qualities are heritable (this is because the qualities at entry. If you decide to develop ager” therefore the person in that role must be a good What is more telling from the findings by qualities that determine leadership success those already in your organisation, check if manager. Chamorro is that the qualities cited above are are largely hereditary: personality and intel- they have the leadership potential first before Such assumptions lead to a lot of bad decisions all largely hereditary and partly early child- ligence). The implications of these findings you waste your resources investing in leader- about how to develop and manage people at work. Do hood experiences. The implications therefore for those involved in leadership coaching is ship training. not assume that because a person has been put into a are that if you hire or thrust people into lead- that you are likely to achieve better leader- l Nguwi is an occupational psycholo- leadership role it therefore means they are capable of ership roles without these qualities they are ship coaching results if you coach those who gist and managing consultant with Indus- leading. There are so many incompetent people in lead- likely to fail. You cannot address these fac- have leadership potential. It will be a waste trial Psychology Consultants. He writes in ership roles across our society. tors through training, therefore you need to of resources to coach those with personality his personal capacity. I want you to reflect on what is happening at your own workplace, religious organisation, political party and even in your family. How many people do you now know who occupy roles that carry leadership responsi- bility but have failed and continue to fail? The reason why they continue to fail and we tolerate it in some instances is because we have a wrong conception of leadership and how it can be developed. John Maxwell says “everything rises and falls on leadership”. This is very true in every sphere of life. With good leaders, everything seems so easy and mo- tivating. Without good leadership everything seems so hopeless and demotivating. Research has shown that over 50 percent of employees leave organisations be- cause of the way they are man- aged. The major cause of leadership failures are not due to lack of HR Perspective technical capacity with or domain Memory Nguwi knowledge expertise but results from personality defects ― leadership de- railment. Leadership derailment takes place when individuals seemingly with high potential fail to realise that po- tential due to personality defects. While this problem affects individuals at all levels in the organisation and generally in life, its negative impact grows as people move into leadership roles. Unfortunately, personality is a permanent disposi- tion and it rarely changes. This means whatever defects are detected, they are unlikely to change regardless of coaching and training. Others have invested a lot of re- sources in training with marginal improvements noted but overall, the leaders remain the same and stuck in their only way of doing things. So how do you detect derailment in a leader? First, such leaders are regarded as being very intelligent and it will be evident from the way they present issues. Sometimes they have excelled academically and ev- eryone is attracted by how bright they are. What then puzzles people is the “stupid” things they do. Most of these leaders are very cruel and use fear to lead people. They set people against each other as long as it benefits them. They love to be the centre of attraction in every interaction and love the limelight that comes from be- ing in a leadership role. They rarely care about how others feel emotionally. They are very ruthless when their authority is challenged. At every opportunity they will make you feel that they are the ones in charge and people must recognise that. The biggest challenge in addressing people who are likely to derail is that they lack self-awareness. They always view themselves as superior to other people and tend to exaggerate their own abilities. The fact that they lack self-awareness or the ability to self-intro- spect makes it difficult to give them feedback. They react negatively to feedback and tend to go after those who bring such negative feedback. It is reported that in the US alone the cost of top executive failures cost the economy $13.8 billion (Stoddard and Wyckoff, 2008). According to Tomas Chamorro writing in the Har- vard Business Review, it is possible to predict who is likely to emerge as a leader on the basis of their per- sonality. Quoting meta-analysis studies, he shows that people who are well adjusted, sociable, ambitious and curious are more likely to emerge as good leaders. Here is what is even more interesting from the same studies: 53 percent of the variability in leadership emergence is explained by the personality factors noted above. The Page 18 | November 29-December 5 2018 The Financial Gazette Column Contracts can be a tax trap IGNING contracts is not just a matter of is important to be more diligent at a price in excess of the fair ed is not a suffi cient justifi cation for the exercise of the appending your signature on paper but a when signing contracts and en- market price, or where he sells power. An occasion for its exercise arises when there is Smatter of life and death. Caveat subscrip- gage tax persons to analyse any property at a price less than something about the transaction that indicates an inten- tor is a trite principle at law which is roughly your contract before you sign. the fair market price the com- tion to evade assessment or tax, something that shows a translated as “signatory beware”. It entails that In addition, the contracts missioner may determine the lack of good faith or the presence of “moral dishonesty the signatory is bound by his signature and should be at arm’s length i.e. fair market price at which such in the taxpayer’s mind”. cannot deny existence of obligation included the agreement should be at fair purchase or sale shall be taken Contracts entered with the sole or main purpose of in the document he has signed. market value, especially for into his accounts or returns for avoiding or postponing tax can also be stripped of the The parties involved in a contract, the risk contracts between related par- assessment”. value and reconstituted by the commissioner in terms involved and the rights and responsibilities to ties. Arm’s length implies the This was the subject of de- of section 98 of the ITA. The section allows him or her be carried out under the contract, including contract terms are fairly refl ec- bate in Elite Wholesale (Rhode- to make adjustment raising additional tax, plus penalty dispute resolution mechanism, remedy clauses tive of the market conditions Tax Matters sia) (Pvt) Ltd v COT (1955) 20 and interest. Literally section 98 is invoked where the among others must be known before append- and are not constrained due to with SATC 33, a case that involved commissioner is of the view that transaction, operation ing one’s signature. Besides the commercial the relationship between the Marvellous Tapera a low mark-up sale transaction or scheme entered into or carried out by the taxpayer disputes that can arise between the contracting parties. between associates. The com- has the effect of avoiding, reducing or postponing tax parties, contracts are instruments which may Non-arm’s length or missioner alleged that the mark-up was low liability, and having regard to the circumstances under invite unwanted taxes if poorly drafted. To the abnormal contracts and increased it to 15 percent on cost. How- which it was entered into or carried out it was by means extent that contracts and reality or conduct Section 23 (1) of the Income Tax Act (ITA) ever, he lost his case after failing to prove the or manner which would not normally be employed in the are at variance the latter prevails for tax pur- Chapter 23:06 provides that “where any per- basis for adjustment. The court held that “If entering into or carrying out of such a transaction etc and poses. Therefore contracts will only become son carrying on a trade in Zimbabwe pur- the transaction is a perfectly innocent one, the as a result created non-arm’s length rights or obligations. worthless papers in the eyes of the taxman. It chases any property from any other person mere fact that a reduction in income has result- Contracts between related parties The prices exchanged by related parties are often not refl ective of market conditions. Some of the transactions between related parties can be offering technical support services within group set-ups; fi nancial assistance in terms of loans, guarantees and extended credit terms; intangible transactions, for example the use of brand, know how, IP, royalties; making available equipment ei- ther for rental payments or no consideration. Transactions like these need careful consideration of tax issues involved in terms of transfer pricing. For ac- counting purposes there will not be any problem in terms of pricing as fi nancial statements are prepared based on fi gures. When it comes to the taxman it will be a different issue. Some companies fi nd themselves in a scenario whereby they trade with a company in which the con- trolling shareholding of the company is also part of the board of the company with which that company is trans- acting and enter into abnormal contracts that are predi- cated at tax avoidance or evasion. Upon catching whiff of this sort of arrangement, the taxman immediately in- vokes the provisions of section 2A(1)of the ITA, which provide that “where a person, other than an employee, acts in accordance with the requests of another person, whether or not the persons are in a business relationship and whether or not those requests are communicated to the fi rst-mentioned person, both persons shall be treated as associates of each other for the purposes of this Act”. The effect of this is that taxpayers will be deemed associates and this triggers application of section 98B which deals with transactions of associates. The ram- ifi cations of this kind of arrangement is well captured in subsections (1) and (2) of section 98B which provide that: “(1)Where a person engages directly or indirectly in any transaction, with an associated person, the amount of taxable income derived by a person that engages in that transaction shall be consistent with the arm's length principle… (2) Any amount of income that would have accrued to either of the associated persons in a controlled transaction and been taxable in Zimbabwe, shall, in the absence of the arm’s length principle be included in the taxable income of either or both of them and be liable to be taxed accordingly”. In summary associated parties transactions must sat- isfy the arm’s length test as provided in section 98B as read with the 35th Schedule to the ITA. The minister, in his national budget speech last week, emphasised the transfer pricing policy document for associated enter- prises. Contracts with non-residents Non-residents often bargain for tax reduction in- curred by them in foreign lands and often bring about the clause that all taxes of the country be borne by the pay- ee. The effect is that any underlying taxes thereof will be borne by the recipient contrary to the provisions of the 17th, 18th and19th Schedule and section 15(2)(a) of the ITA. These taxes must be borne by the non-resident person, but because local payees hardly pay attention to these clauses or bargain for them, they end up bearing the taxes. Taxes paid on behalf of the non-resident are deemed donations and disallowed for income tax pur- poses in terms of s15 (2) (a) of the ITA. Conclusion Although taxpayers have freedom of contract, they should give careful consideration to every little detail to avoid disputes with the taxman, especially when drafting the terms that govern their contracts. Contracts are just not a signature on paper, they must be carefully read, understood and unfavourable clauses corrected. Tax Matrix (Pvt) Limited has a legal team that can review your contracts to ensure they are both commer- cially and tax proof. It is also going to host its 2019 Vic- toria Falls Tax Conference from May the 22 to 25, 2019.

 Tapera is the founder of Tax Matrix (Pvt) Ltd and CEO of Matrix Tax School (Pvt) Limited. He writes in his personal capacity. The Financial Gazette November 29-December 5 2018 | Page 19 Column Importance of diversity in boards MAGINE a board of directors of one of the largest list- l There is also a better appreciation of the environment from a diverse ed companies in Zimbabwe, by market capitalisation, board as they are coming from different vantage points. Such intelligence boasting of the following among its members: a creative helps the board to navigate diffi cult terrains. I  Increased innovation and creativity as diversity is the breeding ground musician like Tuku, a serial entrepreneur like John, a farmer Jangano of old, a recent MBA graduate in her late 20s, a hu- for creative ideas. man resources practitioner in his 40s and a priest in his 70s.  Increased social capital for the company, stemming from diverse net- Such a scenario may never see the light of day in Zim- works of the board members. babwe. One of the key debates in management research on  Enhanced company brand, especially if the company’s image is associ- corporate governance is about board diversity and its im- ated with consumer behaviour. plications on various indicators of board effectiveness. The  Enhanced fi nancial performance of the company stemming from di- key question is how boards can use board diversity to their verse contribution of board members. advantage. So, depending on gaps, a company can employ a young, female and black Board diversity dimensions lawyer to address many diversity issues at once. Board diversity entails heterogeneity in the boardroom Edwin Nharirire Board diversity ― the way to go along the dimensions of gender, race, age, profession, among Boards should start seriously looking at diversifying along what is stra- many others. Boards often differ in their emphasis of diver- This does not, in any way, suggest that fundamentals will be ignored. It only tegically important to them. The Public Entities Corporate Governance Act, sity dimensions they should strategically consider. Some means that they get shortlisted for investment due to the positive impression 2018, provides that, as far as is practical, public entities boards must: companies have superfi cial diversity not underpinned by any created by board diversity.  Have equal numbers of men and women; strategy. Key benefi ts of board diversity  Ensure that all regions in Zimbabwe are fairly represented; and In Zimbabwe, diversity along professional lines is often The following are amongt the key benefi ts of board diversity:  Ensure that there is diversity of skills, experience or qualifi cations. respected owing to compliance and governance dictates. l There is a high chance of making objective decisions if the board is Lawyers and accountants are the biggest benefi ciaries of this heterogenous, given the risk of overlooking subtle implications of certain Nharirire, a guest columnist, is an industrial psychologist and hu- requirement. However, other areas of diversity like gender, decisions in homogenous boards through groupthink. man resources practitioner. He writes in his personal capacity. race and age suffer greatly. What critics say against board diversity Critics of board diversity argue that more diverse opin- ions result in more critical evaluations in decision-making to a point of paralysis of analysis. There is a concern that diversity stifl es decision-making which is a disadvantage in a highly competitive environment. Thus, there is a fear that heterogeneity in a board would mean more time to reach THEME consensus and convergence on issues given the different Financial & Economic backgrounds. Many still fear that diversity in the board may corrode social cohesion and may result in marked emotional TOWARDS A FINANCIAL AND confl icts. In all these seemingly genuine concerns and fears, Rejuvenation Indaba ECONOMIC TRANSFORMATION TO the benefi ts of diversity are often lost. What critics miss about diversity in board ACHIEVE THE 2030 VISION. In their fears about board diversity, critics fail to note the The Indaba brings together Ministers, Government Officials, Bankers, Industrialists, Investors and positive correlation between board diversity and company Date: 6th December 2018 Venue: Meikles Hotel performance. In well researched pieces, diverse boards tend Diplomats to share experiences and explore financial to perform better, to respect corporate governance ethos, are and economic opportunities to turn around the Time: 08:00 to 05:00 Cocktail: 19:00 till late more ethical and more innovative than their counterparts. As economy in line with the government's 2030 vision. such, investors look positively on companies with diverse Furthermore, the conference will provide financial board members, especially along gender, profession, race models available to turn around the economy. and age lines. Such companies tend to get more inquiries from inves- tors than their counterparts, irrespective of the fundamentals. Zim annual money

supply hits $10bn Mr N. M. Ndlovu Mr G. Guvamatanga Mr A.S. Singh Mr J. Robertson Mr K Sharpe Mr B. Gilpin Minister of Industry Perm Sec, Finance Malaysian Ambassador Economist Chairman, West Properties Director, CFU Paul Nyakazeya Guest of Honour Guest Speaker Online Editor Expected Panelists: IMBABWE’s annual broad money supply (M3) rose by 35,68 percent to $10,1 billion in September 2018, Zfrom $7,5 billion in September 2017 driven by an in- crease in demand deposits and currency in circulation, latest data from the central bank has shown. This comes as the supply of bond notes in circulation increased to $354 million in June this year, surpassing the $200 million Afreximbank facility backing the surrogate Mr D. Hoto Mr S. Lamba Mr S. Jabangwe Dr D. Ndukula Mr N. Chanakira Mr B. Muchemwa currency. Group C.E.O Regional Representative President CZI President ZNCC Former Chairman, ZIA C.E.O, Oxlink Capital The central bank has previously indicated that it was ne- First Mutual Holdings Exim Bank, India gotiating a new facility for the bond notes, but has not up- dated on progress. “The growth in money supply, largely refl ected yearly increases in demand deposits by 44,73 percent and currency in circulation, 101,63 percent,” the Reserve Bank of Zimba- bwe (RBZ) said. M3 is a measure of the money in circulation which in- cludes physical currency and demand deposits. It is also Ms R. Kariuki Mr R. Chitsiko Mr M. Kunaka Dr. J. Kateera Prof. R. Chivaka Mr R. Chirochangu considered an important instrument for controlling infl ation. Country Director Perm Sec - Agriculture C.E.O Perm Sec Group C.E.O MD, World Bank Chartered Accountants of Zim Ministry of Public Service Marimba Global Investors Beta Risk Pension Fund Managers Zimbabwe’s offi cial infl ation is at 20,85 percent for the Labour and Social Welfare South Africa United Kingdom month of September. Annual declines of 6,11 percent and 5,25 percent in ne- Other Invited Panelists: gotiable certifi cates of deposits (NCDs) and time deposits, Minister of Finance, Minister of Small and Medium Enterprise, Permanent Secretary of Mines, Rwanda Development Bank, ZIA, UK partially offset the growth in money supply. On a month-on- Ambassador, IMF, Agribank, CBZ, MMCZ, ZB Bank, SME Association of Zimbabwe, IDBZ, NSSA, RBZ, MEFMI. month basis, broad money increased by 3,32 percent, from $9 billion in August 2018 to $ 10,1 billion in September 2018. Sessions: “Broad money comprised of demand deposits, 79,92 percent; time deposits, 14,71 percent; currency in circula- ­ New legal and regulatory framework to jump start the economy – Fiscal and Monetary; 2019 National Budget Review tion, 4,85 percent; and negotiable certifi cates of deposits, ­ Private Partnerships with Parastatals or Privatisation as the way -forward to reduce reliance on the fiscus 0,52 percent, during the month under analysis,” said the ­ Leveraging on pension funds and insurance companies to revamp the economy RBZ. ­ Models to grow the SMEs to conglomerates and policies to expand exports and value beneficiation philosophies It said annual private sector credit grew by 6,98 percent ­ Financial support measures to grow the Agricultural and Mining sectors and partnerships opportunities in September 2018, from 3,94 percent in August 2018. ­ Corporate Governance, Financial and Economic accountability as the engines of economic growth “On a monthly basis, credit to the private sector in- ­ Funding of bankable projects and struggling companies - models and government's support. creased by 4,43 percent, from $3,7 billion in August 2018 to $3,9 billion in September 2018,” said the RBZ. Contacts: Simba: [email protected]: 0242 773 646 / 0719 454 653 / 0737 509 353, WEBSITE REGISTRATIONS: During the month under review, households accounted Ngoni: [email protected]: 0242 773 646 / 0719 454 653 / 0774 054 652 www.gri.co.zw for 26,54 percent of total credit, followed by agriculture at 17,97 percent; distribution at 13,60 percent; services at EARLY BIRD $600 LATE BIRD $850 12,76 percent; manufacturing at 10,50 percent; fi nancial or- PARTNERS INVESTMENT ganisations and investments at 6,36 percent; mining at 4,48 Registration before 27 Nov 2018 Registration aer 27 Nov 2018 percent; construction at 3,15 percent; and transport and com- munications at 2,07 percent. newsdesk@fi ngaz.co.zw Page 20 | November 29-December 5 2018 The Financial Gazette Column Questions high-performing directors must ask (Part III)

NE of the foremost duties of the board is to Faced with this conun- While it is the norm that the hard work put in and risks taken but performance of the compile the job profile of the CEO, recruit, drum, the board has to turn executive compensation organisation must be the paramount determinant of the level Oselect and appoint the best fit for the organ- to the art of motivation to is higher than that of shop of reward. isation. Then it delegates the organisational strate- get the CEO to take on the floor staff, the gap should Administrative leadership rests with the remuneration gy and its implementation to the CEO to marshal burden and challenges of not be so yawning that it or compensation committee (REMCO) of the board which all the resources to drive optimal delivery by the running an organisation causes labour unrest or soci- must research practices in a chosen relevant comparator organisation. such as the many facets etal discord by creating a su- group of businesses. Although the CEO functionally reports to the of risk, onslaught from all per elite. This is particularly They use business drivers and given targets to compare board through the chairman, it is not possible for stakeholders and non-per- pertinent to our part of the with the results produced. They wrestle with the mix of fixed the latter to supervise the CEO constantly due to formance. world due to socio-econom- and variable pay with clear favour towards the latter. Hard time constraints and that the chairman may not be Question: How can my ic deprivation of the society performance numbers like turnover revenue, operating prof- a technical expert in the business of the firm. Most board structure the CEO Executives Only Corner around us. it, net profit and return on equity must take precedence over of all, the chairman is often and must be non-ex- compensation optimally to with The CEO must be ad- qualitative soft aspects. ecutive. get best results? Shepherd Shonhiwa equately compensated for To foster a strong CEO-board relationship, the REMCO should formalise the process and get the CEO to subscribe to the concept at employment stage. However, the whole pack- age must be approved by the whole board. Question: Why does the board need a lead director/inde- pendent chairman? A high performing board operates under the guide of a charter giving it terms of reference and directors’ perfor- mance parameters. The concept of lead director is likened to the Westmin- ster government system where the Prime Minister is the first among equals. The chairman of the board is elected by fel- low board members to lead the board to deliver. Human nature has proven that a group of people ― an orchestra, or a sports team, or a project team ― needs a clear leader to perform and boards are no exception. Leaderless boards can become factionalised, unfocused and indecisive due to lack of a person to keep dialogue on track and clear conflicts in favour of consensus. Primarily the chairman as leader of the board undertakes the following vital chores: l Shaping the dynamics of the board both inside and out- side the boardroom l Facilitating convergence of directors’ viewpoints l Promoting communication and understanding between CHANGE OF TENDER CLOSING DATES management and the board l Exercises trust and respect, not formal power. Exer- cised properly, it takes the board to a higher performance TENDER NUMBER TENDER DESCRIPTION CLOSING DATE AND TIME level l Building cohesiveness among board members to keep moving forward l Skillful judgment of issues to craft the best solution ZINARA 01/2018 Supply and delivery of motor vehicles 10 December 2018 – 1000 hours l Making meetings more productive through formal agenda and board annual calendar l Building the CEO-board relationship which is vital for ZINARA 02/2018 Supply and delivery of toll tokens 10 December 2018 – 1000 hours overall performance of the board and the executive team Board dynamics affect corporate governance in many ways. Since no individual director alone can make a deci- sion and all decisions have to be made by the group, board ZINARA 03/2018 Supply and delivery of toner cartridges 10 December 2018 – 1000 hours dynamics are a huge determinant of whether a board adds or destroys value. A high performing director must contribute positively ZINARA 04/2018 Supply and delivery of thermal till rolls 10 December 2018 – 1000 hours and actively to the board dynamics to make it a high per- forming board. This resonates with an old Hawaiian saying that “Stars are the spies of heaven” ― be that star. ZINARA 05/2018 Supply and delivery of corporate wear 10 December 2018 – 1000 hours l Shonhiwa is a South Africa-based chartered director and has authored books on leadership. He writes in his personal capacity. ZINARA 06/2018 Supply and delivery of ICT Equipment (Servers) 10 December 2018 – 1000 hours Uber fined over cyber attack that leaked client, driver data  The ZIMBABWE NATIONAL ROAD ADMINISTRATION (ZINARA) wishes to advise potential bidders th BER Technologies, already facing a range of legal that the closing date for the above tenders has been extended from the 29 of November to 10 and regulatory headaches in London, got another on December 2018 on or before 1000 hours. UTuesday after it was fined £385 000 over a cyber at- tack that compromised the data of millions of customers and  Tenders must then be addressed to :- tens of thousands of drivers. The Information Commissioner’s Office (ICO) said the The Acting Chief Executive Officer personal details of about 2.7 million UK customers ― in- cluding email addresses and phone numbers ― may have been downloaded during a 2016 hack. Clients were not told Zimbabwe National Road Administration (ZINARA) for more than a year and the company paid the hackers $100 000 to destroy the data. In addition, information about 82 000 489 Runiville Rd drivers was exposed. “This was not only a serious failure of data security on Glenroy Shopping Centre Uber’s part, but a complete disregard for the customers and drivers whose personal information was stolen,” Steve Eck- ersley, the ICO’s director of investigations, said in a state- Highlands ment. “At the time, no steps were taken to inform anyone affected by the breach, or to offer help and support.” Harare. The fine comes as Uber battles London drivers over their employment status and the number of benefits they are en-  Late submissions will not be accepted. titled. In June the ride-sharing company was given a new 15-month probationary licence to operate in the UK capital NB. Bidders are free to attend the tender opening process to be held on the same date and time after transport regulators raised concerns about its gung-ho attitude and the safety of passengers. as the closing date. Officials at Uber didn’t immediately return an email seek- ing comment. The Dutch Data Protection Authority also imposed a fine on Tuesday on Uber’s operations in the Netherlands for a data breach in 2016. ― Bloomberg The Financial Gazette November 29-December 5 2018 | Page 21 Column Strategies companies adopt to alleviate employee challenges in turbulent times

IMBABWE is going through transformation of removal of the same (temporary mea- pay employees on time cannot be overem- and some austerity measures geared towards sure). phasized. Zturning around the economy have been herald- l Fuel coupons ― In extreme situations, l Once-off bonus ― Some companies ed. Such measures include but are not limited to the employees are given fuel coupons which have adopted payment of once-off bonuses. following: can be redeemed l Part payment of salaries in US dol- a) Tax free threshold from current $300 to $350; l Wait-and-see approach depending lar (hard currency ― Some companies who b) 5 percent compensation cut for senior civil ser- on what happens in the economy. This ap- earn revenue in US dollar have adopted part vants up to the presidium; proach puts a lot of pressure on the com- payment of salaries in that currency and the c) Staff rationalisation; pany and also shows it does not treat its balance in bonds. d) Recruitment freeze for non-critical positions (I human resource as critical. We have seen Having said this, it should be noted that guess these are positions which are difficult to fill companies taking such a stance in some sit- different companies have adopted different when they fall vacant); uations. strategies as shared by HR practitioners at e) Fuel price increase of 6.5 percent; the company’s capacity to pay and the flex- l Food hampers for employees ― Some different forums. f) Foreign currency account-Nostro; ibility of stakeholders to remove the same companies are giving employees food ham- lThe writer, Phil Chitagu, is the HR di- g) Foreign currency account-RTGS; when the economy stabilises. Beneficiaries pers to alleviate challenges being faced. rector for Schweppes Holdings Africa h) 2 percent tax on certain transactions above $10 have to acknowledge such an understanding l Payment of salaries on time ― When Limited and a chartered HR practitioner. save for those exempted. to avoid unnecessary bickering at the time the environment is turbulent, the need to He writes in his personal capacity. We will not spend much time explaining the above because a lot has been discussed during fiscal, mone- tary and budget presentations. We are in this situation and we need to share strategies that have been adopt- ed by different organisations to assist both business and employees. It is a fact that the above measures have affect- ed employees and business in one way or another. After the announcement of the fiscal and monetary policies, there was a reaction that left both business- es and employees exposed. No-one had ideas on how to react to such a development ― good intention but seemingly not broadly shared, if change management dictates are to be taken into consideration. Since November 2017, we have had various en- couraging policy pronouncements including “Zim- babwe is open for business, ease of doing business, austerity for prosperity”, to mention a few. All these have a huge impact across the entire economy, in- cluding the effect on employees who are supposed to be key players in driving the success of the country’s Vision 2030. Prices of basic commodities shot through the roof and this affected employees. Some even spent lots of productive time queuing for precious liquid-fuel. Some basic commodities were now beyond the reach of employees due to the three-tier price regime. Com- panies had no response to such developments as ev- erything happened at a very fast pace. Suddenly, there was no prescribed direction on how to manage the situation. In the midst of the confusion, various strategies have been adopted by businesses to cushion employ- ees and keep the businesses going. Such temporary measures include but not limited to the following: l Encashment of leave ― Employees are allowed to encash an agreed number of leave days. Given that leave is normally provided for, there will not be much impact on bottom line. l Once-off salary payment over and above the normal salary ― Some organisations pay equivalent of once-off one month’s salary depending on capacity to pay. This strategy impacts the company once and not in the long term. l Performance variable pay linked to a target ― This is performance linked e.g. setting cost reduction target and pay a portion of the same once such targets are met. This does not impact on bottom line as this is self-funding upon meeting cost reduction initiatives/ targets. l Review of traditional pay dates ― some organ- isations have adopted payment of salaries twice per month depending on capacity to pay (cash-flow con- sideration). This guarantees value for money. l Advance loans ― some companies are paying advances to employees which will then be deducted over time. l Facilitating in procurement of scarce and low priced foodstuffs/basic commodities for employees and manage deductions through the payroll. This ap- proach does not apply to all products but only those believed to be in short supply. The arrangement can always be reviewed based on prevailing circum- stance. l Review performance incentive bonus arrange- ment (change quarterly incentive to monthly and an- nual to bi-annual). This is done to preserve value for money. However, agreed targets have to be met. l Salary adjustment based on official inflation ― Organisations are hesitant to take this approach as this is not sustainable in a turbulent environment. In a run-away inflationary environment, increasing fixed costs is like chasing the wind. It is not sustain- able. However, statistics from ZimStat help to come up with critical decisions. l Payment of an allowance e.g. hardship, which can be removed when the economy is stable. The per- centage to be effected can be anything depending on Page 22 | November 29-December 5 2018 The Financial Gazette Companies & Markets PPC projects robust cement demand Adelaide Moyo The group said to deal with challeng- monetary investments into fixed assets eight percent to R5,6 billion, with total Business Reporter es, including the inability to repatriate and growing government infrastructure cement volumes increasing by four per- funds, risk to business continuity, it has expenditure,” Claassen said. cent to approximately 3,1 million tonnes. RETORIA Portland Cement (PPC) established a solid base with government Earnings before interest, taxes, de- PPC has operations in South Africa, says performance at its Zimba- and invested PPC dividends in govern- preciation and amortisation (EBITDA) Ethiopia, Botswana, Rwanda and the Pbwean operation is expected to be ment bonds. went up 42 percent to R352 million from DRC. steady, driven by increased demand. “The initial face value of the Trea- R248 million in prior period, with cor- Cost of sales increased by 16 percent In a commentary accompanying the sury Bills was US$706 831 (R8 million), responding margins improving from 30 to R4 494 million from R3 859 million group's financial results for the half year repayable in three equal annual instal- percent to 33 percent. reported in the previous comparable pe- ended September 30, 2018, Johan Claas- ments from June 2017 to June 2019,” PPC said it continues to drive local riod. sen, the company's chief executive, said PPC said. procurement to reduce foreign currency “PPC has produced resilient results an improved political environment is “In the current period, an instalment requirements. against a challenging South African en- also expected to spur growth. of US$326 609 was received. Due to “Acute forex shortages as well as li- vironment. Our diversified portfolio has “Zimbabwe is expected to deliver a current liquidity constraints in Zimba- quidity constraints continue to hamper enabled the group to offset the weaker steady performance, supported by robust bwe and uncertainty around receipt of economic activity. PPC Zimbabwe is op- South African performance with robust demand and an improved political envi- the remaining instalment, the remaining erationally self-sufficient and continues growth in our rest of Africa segment,” ronment,” Claassen said. value is still recognised as non-current,” to drive local procurement and exports Claassen said. The regional cement manufacturer’s PPC said. to reduce forex requirements,” PPC said. Group EBITDA dropped by 13 per- revenue at its Zimbabwe unit increased The group said the Zimbabwe oper- “Furthermore, the company is con- cent to R1 039 million from R1 193 by 31 percent to R1 077 million during ation delivered improved profitability tinually looking to capitalise on sus- million reported in the previous period the half-year ended September 30, 2018 against the backdrop of liquidity con- route to market strategy has enabled PPC tainable acquisition opportunities in the largely due to a lower contribution from on the back of strong volume growth of straints. to benefit from the upsurge in construc- value chain in the country.” the South African operations. 28 percent. “Successful implementation of our tion activity as consumers convert their Meanwhile, group revenue increased [email protected] ‘Zim property prices highest in SADC’ Shame Makoshori Moving Zimbabwe Companies Editor

IMBABWEAN properties are among the most expen- Agriculture for 30 years sive in southern Africa, a leading building society has Zsaid. Mara Hativagone, FBC Building Society’s non-executive director, said high financing costs and building material short- ages in Zimbabwe were some of the factors behind the high costs of acquiring properties. “Activity on the local residential property market has slowed down with owners who had put their properties on the market withdrawing them in response to the prevailing eco- nomic environment,” she said. Hativagone, who was officiating at the handover of cluster homes in Waterfalls, Harare, said FBC will be rolling out more housing projects across the country. “In the same vein, high financing costs coupled with the high cost of building materials for new property develop- ments, have seen property prices remaining relatively high compared to other countries in the region. We are striving to deliver state-of-the-art and high quality housing solutions in a challenging operating environment,” she said. Hativagone noted that FBC’s strategy was to help reduce Zimbabwe’s 1,3 million housing backlog through investments in low-cost, value driven, customer focused properties. Last year, FBC Building Society built a total of 64 housing units, in addition to eight residential stands in Harare. The mortgage lender is building 40 more housing units in Harare, while exploring possible developments in Kuwadzana and Glen Lorne, which are also in Harare. Hativagone said FBC was also engaged in negotiations for possible land acquisitions in strategic cities across the country. She said FBC had delivered more than 900 housing units to the property market since 2009. “In 2013, the building society built and sold a total of 462 housing units in strategic areas encompassing low, medium Duly Holdings would like to congratulate our business partner and high density schemes in Philadelphia, Glaudina, Green- dale, Waterfalls as well as Mkoba 14 in Gweru and in Mbizo Agriseeds on their 30th Anniversary. We recognise your Kwekwe,” she said. [email protected] consistent performance in the agricultural sector and wish you many more years of continued growth and success. SA minimum wage bill signed into law

OUTH Africa’s President Cyril Ramaphosa has Congratulations ! Makorokoto ! Amhlophe ! signed into law the national minimum wage S bill, his office said on Monday, part of efforts by the government to tackle wage inequality in Afri- ca’s most industrialised economy. The National Minimum Wage Act sets South Af- DULY HOLDINGS rica’s minimum wage at 20 rand ($1.45) an hour, equal to 3,500 rand per month. The law will come into force on a date to be determined by Ramaphosa, the presidency said. Supporters of the minimum wage say it will re- duce inequality and stimulate economic growth as [email protected] • www.dulys.co.zw workers spend more. But critics say it could lead to increased unemployment, already at record highs, because some employers won’t be able to afford higher wage bills. Thousands of union members protested against the proposed minimum wage in April, saying it was too low. ― Reuters The Financial Gazette November 29-December 5 2018 | Page 23

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VACANCY NOTICE NO.9/2018 Post Q: Safety Health and En- Technicians in daily tasks or heavy industry • Supervises Electrical Tech- HWANGE POWER STATION – vironment Officer (x7) and appraises their work • Experience with DCS sys- nicians in daily tasks and EXPANSION PROJECT (BATCH output and quality. tems is an added advan- appraises their work out- Post R: Information Technolo- 2 - 27 POSITIONS) tage put and quality. gy Officer (x1) Zimbabwe Power Company POST B: QUALITY AND RISK EN- • Project Management Cer- Post S: Welding and NDT Spe- GINEER (x4) tification an added ad- POST E: ELECTRICAL ENGINEER is the leading generator of LINES (x3) cialist (x3) Ref: ZPCHR38/11/18 vantage electrical energy in Zimba- Ref: ZPCHR41/11/18 Qualifications and Experi- Duties and Responsibilities bwe and supplies the bulk of Post T: Mechanical Techni- ence • Participates in design re- Qualifications and Experi- the nation’s electrical pow- cian (x28) ence • A Degree in Engineering, view of C & I project de- • er requirements from its five Post U: Electrical Technician Environmental Scienc- signs A degree in electrical en- gineering power stations. ZPC is under- (x19) Post V: Control & Instru- es, Risk and Insurance or • Carries out Plant and equivalent qualifications • Preferably 6 years of elec- taking various projects that mentation Technician (x6) Equipment Inspections trical engineering/ Trans- • Membership of a profes- • Monitors C &I plant instal- are meant to close the gap mission experience Post W: Buyer(x1) sional institution lations to relevant stan- between electrical energy • Post X: Safety Health & Envi- • Preferably 6 years post dards Strong communication demand and supply. The and technical writing skills ronment Clerk (x3) graduate experience in • Conducts commissioning company is now on the ex- an industrial setting and plant acceptance • ECZ registration and/or Post Y: Stores Clerk (x2) membership of a profes- ecution stage of the 600MW • Excellent oral and written tests sional engineering institu- Hwange Power Station: Ex- Post Z1: Accounts Clerk (x2) communication skills • Investigates plant failures tion pansion Project. Post Z2: Office Assistant (x3) • and recommends solu- IMS knowledge • tions Project management cer- We are therefore inviting suit- • Project Management Cer- tification an added ad- • Prepares periodic reports ably qualified and motivated POST A: MECHANICAL ENGI- tification vantage Duties and Responsibilities persons for the following 27 NEER (x14) Duties and Responsibilities • POST D: ELECTRICAL ENGINEER various vacant positions of Ref: ZPCHR37/11/18 Assists in formulating long • Provides engineering sup- term Risk Policies and pro- (x9) the project that have arisen Qualifications and Experi- port in the area of trans- ence cedures to govern Quality Ref: ZPCHR40/11/18 mission and distribution on a fixed term contract basis and Risk performance on • A degree in Mechanical Qualifications and Experi- designs. of up to 36 months. the project. Engineering ence • Provides design support • Advices staff on necessary • • ECZ registration and/or A degree in Electrical Engi- to construction personnel Quality and Risk safety pol- membership of a profes- neering during project implemen- VACANCIES LIST icy changes and reviews sional engineering institu- • Preferably 6 years experi- tation Post A: Mechanical Engineer tion • Develops and reviews ence in power generation • Verifies that field modifi- Quality Control Plans and or heavy industry (x14) • Preferably 6 years experi- cations will not undermine Risk Register • ECZ registration and/or the integrity of the design Post B: Quality and Risk Engi- ence in power generation or heavy industry • Recommends and en- membership of a profes- and ensures such modifi- neer (x4) forces necessary actions sional engineering institu- cations are recorded. • Certification in project or changes to procedures tion Post C: Control and Instru- management is an added • Reviews conceptual so as to correct areas that • mentation Engineer (x4) advantage. Certification in project routes, layouts, preliminary do not comply with regu- management is an added Duties and Responsibilities and detailed designs and Post D: Electrical Engineer (x9) lations advantage specifications for high volt- • Participates in reviews • Develops and implements Duties and Responsibilities age transmission lines Post E: Electrical Engineer and updates of designs Quality management sys- • Participates in reviews and • Lines (x3) and drawings, tracks all Monitors all construction tems updates of designs and the updates and produc- activities including termi- Post F: Electrical Engineer Sub • drawings, tracks all the up- es relevant reports. Conducts training on nations at substations Stations (x3) Quality Management Sys- dates and produces rele- • • Participates in plant and Monitors site works, in- tem vant reports. Post G: Protection Engineer spections and tests on equipment testing and • Monitors Quality standards • Monitors site works, inspec- commissioning (x3) physical plant and mate- tions and tests on physical rial. AND Carries out Periodic Post H: Communications & audits in the workstations plant and material. • Checks operating param- POST F: ELECTRICAL ENGINEER • Checks operating param- Metering Engineer(x3) eters during testing and SUB STATIONS (x3) eters during testing and Post I: Project Chemist (x1) commissioning. POST C: CONTROL AND IN- Ref: ZPCHR42/11/18 STRUMENTATION ENGINEER commissioning. Qualifications and Experi- Post J: Project Controller (x1) • Ascertains that all designs • Ascertains that all designs ence and operational parame- (x4) and operational parame- Post K: Procurement Adminis- ters are met before hand Ref: ZPCHR39/11/18 • A degree in electrical en- ters are met before hand trator (x1) over of plant gineering Qualifications and Experi- over of plant • Reviews operation and ence • Preferably 6 years of elec- Post L: Stores Administrator • Reviews operation and maintenance procedures • trical engineering/ substa- (x1) A Degree in Electrical / maintenance procedures for the different plant tion experience Electronic Engineering or for the different plant Post M: Risk Officer (x2) items. • Knowledge of substation Applied Physics. items. • Participates in Vendor • protection and control de- Post N: Logistics Officer (x1) ECZ registration and/or • Participates in Vendor Quality Surveillances, Fac- sign membership of a profes- Quality Surveillances, Fac- Post O: Quality Officer (x5) tory and Site acceptance • Knowledge of substation sional engineering institu- tory and Site acceptance Post P: Environment Officer tests. construction and design tion Preferably 6 years ex- tests. (x5) • Supervises Mechanical perience in power industry deliverables Page 24 | November 29-December 5 2018 The Financial Gazette

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• 330kV switching authorisa- • Monitors all protection in- standards, codes of prac- schedule management. chases as per station limits tion is an added advan- stallations during project tice and Employer require- • ECZ registration and/or • Handles supplier’s griev- tage implementation. ments as required. membership of a profes- ances and queries per- • ECZ registration and/or • Ensures compatibility of • Arranges third party cali- sional engineering insti- taining to procurement of membership of a profes- contractors designs to ex- brations on or off site and tution Experience in high goods and services. witness when required to sional engineering institu- isting infrastructure. valued, multi-discipline • Liaises with government tion ensure compliance. • Assists construction in trou- project environments from tender board (PRAZ) on Duties and Responsibilities bleshooting and problem inception to close out. procurement of goods • Provides design support resolution and provides I. PROJECT CHEMIST (x1) • PRINCE2/ PMP certifica- and services above sta- to construction personnel on-site support Ref: ZPCHR45/11/18 tion. tion financial limits. during project implemen- • Verifies that field modifi- Qualifications and Experi- • Experience with Microsoft • Assists management with tation cations will not undermine ence Project or Primevera will information regarding de- • Assists construction in trou- the integrity of the design • An Engineering Degree be an added advantage. livery schedules, progress bleshooting and problem and ensures such modifi- in Chemical Technolo- Duties and Responsibilities on outstanding orders, resolution and provides cations are recorded. gy, Chemistry or Applied vendor performance and • Forecasts final costs and on-site support • Chemistry all purchasing matters Participates in plant and the controls the budget, • Verifies that field modifi- • Project Management Cer- which impact on the at- equipment testing and i.e. commitment and ac- cations will not undermine commissioning tification i.e. Prince 2/PMP tainment of best value. the integrity of the design • tuals 6 years post graduate • Evaluates informal tenders and incorporates field working experience • Manages project trends and takes minutes in ten- modifications into the de- Post H: Communications & • and changes to deter- Woking experience in Pow- der adjudication meetings sign documents to ensure Metering Engineer (x3) er generation is a pre-req- mine legitimacy and esti- • configuration control of Ref: ZPCHR44/11/18 uisite mated impact to project Maintains an up-to-date system components schedule and budget schedule of suppliers. Qualifications and Experi- • Membership with a rec- ognised professional insti- • Participates in reviews and ence • Reviews total Project and updates of designs and tution Change Notice estimates • A Degree in Electrical/ POST L: STORES ADMINISTRA- drawings, tracks all the Duties and Responsibilities to ensure accuracy of esti- Electronic or Telecommu- TOR (x1) updates and produces re- • Conducts design reviews mated costs for the scope nications Engineering Ref: ZPCHR48/11/18 ports pertaining to water treat- of work at hand. • • Preferably 6 years Trans- ment, coal and ash han- Qualifications and Experi- Participates in plant and • Verifies progress pay- mission Power Network or dling and chemicals deliv- ence equipment testing and ments, final invoices, esca- commissioning Metering or Communica- ery plants. • Degree in stores/retail • lation and Forex calcula- • Monitors critical parame- tion experience. Coordinates all activities management/ Purchasing pertaining to the Labo- tions ters during and after test • ECZ registration and/or and Supply or any other ratory and the mainte- • Reads and understands runs and commissioning of membership of a profes- relevant discipline nance and proper use of Project Schedules to en- plant and equipment sional engineering institu- • equipment. sure a true reflection of the 5 years relevant working • tion Identifies deviations in • Installs, operates, cali- Project progress and fore- experience plant parameters from • Project management cer- brates, and maintains test casted dates. • Knowledge of SAP specifications tification an added ad- equipment. • Liaises with Project Con- Duties and Responsibilities vantage • Performs internal inspec- sultant on schedules, • POST G: PROTECTION ENGI- Duties and Responsibilities tions of the area specific Compiles data on stock equipment as needed. change notices, costs and materials consumption NEER (x3) • Expertise are required for May include but not lim- payments patterns to establish reor- Ref: ZPCHR43/11/18 the following specialities: ited to boiler, condenser, der levels Qualifications and Experi- (i) Power Network Control, cooling tower, media fil- • ence (ii) Metering, and (iii) Com- ters, and demineralisation POST K: PROCUREMENT AD- Authorizes and issues stock munication MINISTRATOR (x1)Ref: ZP- purchase requisitions • A degree in electrical / plant. CHR47/11/18 electronic engineering • Participates in reviews of • Performs chemical draw- • Identifies and compiles ex- all metering, power net- downs, tracks chemical Qualifications and Experi- cess, slow and non-mov- • preferably 6 years of elec- work control and commu- inventory, transfers, un- ence ing obsolete stocks trical engineering/ Trans- loading and sets feed rate nication designs. • • Coordinate the goods re- mission protection experi- adjustments. A degree in Purchasing • Monitors critical parame- and Supply or equivalent ceiving and inspection ence • Possess a working knowl- ters during commissioning qualification in relevant process • ECZ registration and/or and test runs of critical edge of thermal power generation specific pro- discipline • Maintains and updates membership of a profes- plant and equipment. sional engineering institu- cesses and systems. • Membership of a rec- the authorized signatories • tion Analyses fault records and ognised professional insti- list errors generated by the tution • • 330kV switching authorisa- SCADA and other systems POST J: PROJECT CONTROLLER Identifies non-confor- tion is an added advan- and ensures that correc- (x1) • At least 5 years relevant mances or possible sourc- tage tive action is taken during Ref: ZPCHR46/11/18 experience es of non-conformances • Project management cer- commissioning in order Qualifications and Experi- • Professional qualification and takes appropriate ac- tification an added ad- to achieve the targeted ence or certification an added tion or preventive action vantage system availability as re- • A degree in Engineering or advantage quired. Duties and Responsibilities other relevant discipline Duties and Responsibilities POST M: RISK OFFICER (x2) • Controls and monitors • • 5 years Post Graduate Ex- • Adjudicates, negotiates, Ref: ZPCHR49/11/18 Conducts reviews of pro- measurement quantity& perience in a project en- tection designs and short quality system equipment awards and manages Qualifications and Experi- vironment with detailed circuit engineering studies including audits/inspec- supply contracts ence to ensure compliance to knowledge of estimating, tions/surveys to check • Prepares and signs pur- • Higher National Diploma standards. cost control, planning and compliance with relevant chase orders for all pur- in Risk Management and The Financial Gazette November 29-December 5 2018 | Page 25

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Insurance or equivalent corporate logistics to de- policy is implemented ence tage • 3 years Post Graduate ex- termine the most cost ef- • Carries out routine or un- • Degree in Computer relat- Duties and Responsibilities fective or efficient means perience in risk manage- planned visits and inspec- ed discipline • Inspects welds (plate and of transporting goods ment. tions to ensure compli- • Membership of Profession- pipe), castings, machined • Project management ex- ance with environmental al body i.e. Computer So- parts, pipe walls, tubes perience an added ad- POST O: QUALITY OFFICER (x5) legislation and taking ac- ciety of Zimbabwe (CSZ) and concrete slabs tion to improve conditions vantaged. Ref: ZPCHR51/11/18 • 5 Years working experi- • Completes required re- • Advises on planning and • Project Management cer- Qualifications and Experi- ence ports of the inspection licensing applications tification an added ad- ence • SAP certification an add- process within mandated vantage. • Monitors and evaluates time lines; reviewed and • A relevant Degree in rele- ed advantage sites. followed safety proce- Duties and Responsibilities vant field/Higher National Duties and Responsibilities dures. • Risk identification, assess- Diploma. • Administers the acquisition POST Q: SAFETY HEALTH AND • Approves, rejects or dis- ment, mitigation, monitor- • 3 years Post Graduate ex- and installation of com- ENVIRONMENT OFFICER (x7) card products, materials ing and maintaining risk perience puter hardware registers & risk issues logs. Ref: ZPCHR53/11/18 and equipment not meet- • Experience in Quality • Conducts hardware test ing specifications utilizing • Follows up on all critical Qualifications and Experi- Management is an added for procured hardware Dye Penetrant, Eddy Cur- action items that affect ence advantage items rent, Magnetic Particle In- project schedule, HSE and • A Degree in Environmental • Project Management • Sets up systems for man- spection, Ultrasonic, Radi- cost performance. Health and safety man- qualification and certifica- aging the hardware ography and Visual. • Provides Risk Manage- tion will be an added ad- agement or other rele- inventory in terms of • Interprets the results of ment expertise in techni- vantage vant discipline equipment acquisition, most methods of non-de- cal, planning and progress • Membership of a recog- Duties and Responsibilities movement and disposal. structive testing (NDT) such review meetings. nized professional institu- • Develops and implements • as acoustic emission, elec- tion Formulates and imple- • Reviews Insurance con- of Quality Management ments a system for the tromagnetic, leak, liquid tracts and processes Systems • 3 years post graduate ex- installation and running penetrant, magnetic par- claims. perience • Monitors adherence to of computers systems ticle, radiographic, ther- • Monitors site to identify project quality require- • Experience in mining en- for business applications mal or infrared, ultrasonic, risks and audits effective- ments vironment would be an throughout the area by vibration analysis, and vi- ness of existing controls. added advantage specifying procedures for sual testing according to • Administers of NCR Sys- object creation , testing ASME, AWS, API codes, or • Conducts risk surveys and tems at Site • SHATCO/OSHEMAC a re- inspects all installations. quirement and implementation any other standards as per • Conducts quality control Develops and implements client specifications. Duties and Responsibilities tests and inspections a training strategy for POST N: LOGISTICS OFFICER • Tracks and follows quality • Identifies and raises training of Users (x1) awareness of safety issues POST T: MECHANICAL TECHNI- issues on / offsite. • Determines user require- for the project. CIAN (x28) Ref: ZPCHR50/11/18 ments for network facilities • Ensures production and Ref: ZPCHR56/11/18 Qualifications and Experi- POST P: ENVIRONMENT OFFI- • Determines and specifies maintenance of health Qualifications and Experi- ence CER (x5) network performance and safety programmes ence • Degree in Logistics/pro- Ref: ZPCHR52/11/18 standards for both wide • Carrying out routine or • curement/purchasing and and local area networks Recognised apprentice- Qualifications and Experi- unplanned visits and in- ship in relevant trade (Me- Higher National Diploma • Manages delivery of User ence spections to ensure com- chanical Engineering/Fit- • support services for busi- 3 years relevant experi- • A degree in Environmental pliance with health and ting & Turning) ness and office automa- ence Health and Safety Man- safety legislation and tak- tion systems • National Certificate in Me- • Knowledge of SAP will be agement or equivalent ing action to improve con- chanical Engineering an added advantage ditions; • Membership of a recog- • Power generation experi- POST S: WELDING AND NDT Duties and Responsibilities nized professional institu- • Investigates accidents ence is an added advan- SPECIALIST (x3) • Monitors product import tion at work and complaints tage about poor standards of and export processes to • At least 3 years post grad- Ref: ZPCHR55/11/18 • health and safety, as well 4 years post apprentice- ensure compliance with uate experience Qualifications and Experi- ship experience the regulatory and legal as identifying areas of • Clean Class 4 driver’s li- ence Duties & Responsibilities requirements negligence; cence • Recognized Apprentice- • Carries out routine site • • Advises on planning and Ensures carrier compli- • Project management ex- ship in welding monitoring inspections ance with the company licensing applications; perience an added ad- • 5 years relevant experi- • policies and procedures • Monitors Contractors com- Works with subcontractor vantaged ence in a heavy manufac- on goods transportation pliance to HSE guidelines employees on the project turing environment and delivery Duties and Responsibilities requirements • Attends test-run of plants/ • • Level II NDT Certification equipment • Negotiates with suppliers Identifies and raises • Identifies hazard and con- in MPI, Ultrasonic, Radio- or customers to improve awareness of environmen- ducts Risk Assessment for • Imparts technical skills to graphic and Liquid Pene- supply chain efficiency tal issues for the projects critical activities apprentices, trainees and trant Testing and sustainability • Ensures production and semi-skilled personnel. • Diploma in welding / Valid • • Collaborates with other maintenance of safety Inspects quality of Project POST R: INFORMATION TECH- Coded welder certificate departments in integrating and environmental pro- Mechanical Installations NOLOGY OFFICER (x1) an added advantage logistics with business sys- grammes • Conducts routine inspec- Ref: ZPCHR54/11/18 tems and processes • Ensures the company’s • Knowledge and experi- tions of mechanical instal- environmental and safety Qualifications and Experi- ence in a Project Environ- lations. • Analyses all aspects of ment is an added advan- Page 26 | November 29-December 5 2018 The Financial Gazette

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• Carries out hazard iden- • Recognised apprentice- and other reports as and notes, credit notes and • 5 ‘O’ Levels including En- tification and risk assess- ship in Control & Instru- when required materials received forms glish Language ments for project critical mentation • Reconciles the stores led- • Qualification in Office -Ad activities • Diploma in Control & In- POST X: SAFETY HEALTH AND ger monthly ministration/Secretarial or • Attends to equipment strumentation ENVIRONMENT CLERK (x3) • Conducts quarterly relevant commissioning and test • Knowledge of PLCs Ref: ZPCHR60/11/18 administrative checks • 4 years relevant experi- runs • Power generation experi- Qualifications and Experi- to verify balances in the ence • Generates reports and ence stores ledger and general • Computer literacy is a tracks non-conformances ence and added advan- tage • A Diploma in Environmen- ledger. must • 4 years post apprentice- tal Health and safety man- • Participates in physical • Project experience will be POST U: ELECTRICAL TECHNI- ship experience agement or other rele- stock taking exercises an added advantage CIAN (x19) vant discipline quarterly to detect anom- Duties & Responsibilities Duties and Responsibilities Ref: ZPCHR57 /11/18 • Membership of a recog- alies. • Carries out plant and • Maintain files and records nized professional institu- • (Power plant 12, Substations 5, equipment inspections Ensures timeous replenish- up to date and ensures Lines 2) tion is an added advan- ment of stocks at re-order- • Participates in designing that they are easily acces- Qualifications and Experi- tage ing level and developing new con- sible ence • trol systems 3 years post graduate ex- • Ensures that the work- • Sorts and distributes in- • Recognised apprentice- perience place is kept clean and • Participates in plant equip- coming mail and prepares ship in relevant trade tidy at all times ment testing Duties and Responsibilities outgoing mail (Electrical Engineering) • • Inspects quality inspec- • Assists in production and Receives and issues stock • Utilizes office appliances • National Certificate in tions during project imple- maintenance of health such as photocopier, print- Electrical Power Engineer- mentation and safety programmes ers etc. and computers for ing POST Z1: ACCOUNTS CLERK • Reviews equipment and • Ensures that health and (x2) word processing, spread- • Knowledge of design, plant designs safety meetings are held sheet creation etc. installation / commis- Ref: ZPCHR62/11/18 as per statutory require- • Takes minutes of meetings sioning for power plant / Qualifications and Experi- ments and dictations substation or transmission POST W: BUYER (x1) ence equipment and protec- • Offers periodic feedback • Assists in office manage- Ref: ZPCHR59/11/18 • 5 “O” levels including En- tive relays to Safety Officers on health ment and organization Qualifications and Experi- and safety matters. glish Language and Maths • Power generation/Trans- procedures ence • Recognized Diploma in mission & Distribution ex- • Assists Officers in carrying • Monitors stocks of office Accounting or Bookkeep- perience is an added ad- • Higher National Diploma out routine or unplanned supplies (stationery etc.) ing vantage in Purchasing and Supply visits and inspections to and reports when there or equivalent ensure compliance with • 3 years relevant experi- • 4 years post apprentice- are shortages health and safety legisla- ence ship experience • Membership of a rec- • Assists in making travel ar- tion and taking action to ognised professional insti- • Knowledge of computers rangements and booking Duties & Responsibilities improve conditions; tution will be an added advan- venues for meetings and • Carries out routine site in- • At least 3 years practical • Attends to hazard iden- tage events spections full time experience in a tification and Risk Assess- Duties and Responsibilities • Interpret electrical sche- similar position ment for critical activities • Assists in Payroll costing Applications from prospec- matics, wiring diagrams, • Tracks, reports and investi- Duties and Responsibilities • Conducts invoice match- tive candidates with detailed and technical manuals. gates incidents • Ensures that requirements ing and initiates payments curriculum vitae and certified • Inspect and test power for the Project including • Generates daily HSE logs runs copies of certificates should lines and auxiliary equip- consumables are ordered and Progress Reports be received by not later than ment to locate and identi- • Prepares creditors ageing on time the 7th December 2018 ad- fy problems, using reading analysis dressed to:- and testing instruments. • Checks the corrects for POST Y: STORES CLERK (X2) • Files paid and unpaid in- purchases requests, spec- voices and ensures that • Practical knowledge in the Ref: ZPCHR61/11/18 ifications, analyse descrip- all invoices processed Senior Manager- Human Re- Installation, commission- tions and obtain addi- Qualifications and Experi- for payment are clearly sources OR Hand Deliver to ing and maintenance of tional information where ence marked (stamped paid) electrical distribution and necessary • 5 ‘O’ levels including and filed appropriately. transmission systems, in- Senior Manager- Human English Language and • cluding conduits, cables, • Researches for and selects Requests and files invoic- Resources Mathematics / Accounts es for payments made to wires, and related equip- potential and suitable Zimbabwe Power Company • National Certificate in Head Office. ment such as transform- sources of supply in line 12 Floor Megawatt House Purchasing and Supply ers, circuit breakers, and with existing laws and pro- • Prepares funding requests Chain / Business Studies or 44 Samora Machel Ave switches. cedures and usage returns equivalent Harare • • Attends tender openings • Prepares monthly cash High voltage switching au- • Computer literacy thorization will be an add- and performs tender sec- flow statements (cash • Zimbabwe Power Company ed advantage retariat duties in meetings 3 years relevant experi- paid/ cash received re- ence port) • Evaluates received bids, P.O. Box MP274 quotations and other Duties and Responsibilities Mt Pleasant POST V: CONTROL AND IN- terms against tender and • POST Z2. OFFICE ASSISTANT Harare STRUMENTATION TECHNICIAN Checks all goods on prepare comparative (x3) (x6) quantity and quality schedules against the order and Ref: ZPCHR63/11/18 or email to: projexphw@zpc. Ref: ZPCHR58/11/18 delivery note/ invoice • Compiles purchase requi- Qualifications and Experi- co.zw Qualifications and Experi- sitions /order status reports • Processes daily stores issue ence ence The Financial Gazette November 29-December 5 2018 | Page 27 National News Budget fails to inspire confidence Ndakaziva Majaka and Paul Nyakazeya Business Reporters AMG presses INANCE minister Mthuli Ncube’s inaugural budget was surprisingly realistic but offered ahead with Flittle to restore confi dence in the country's bat- tered economy, business leaders and analysts have said. The 2019 Budget presented last Thursday import plan slashed government spending, cut taxes and ac- knowledged a debt crisis in a bid to reassure inves- HE African Medallion Group (AMG) is press- tors and donors. ing on for “special concessions around its hu- However, Ncube ― a former banker ― failed to Tmanitarian project to bring in affordable basic calm investors’ jittery nerves as bond notes and real commodities” by petitioning the Zimbabwe Revenue time gross settlement (RTGS) lost further ground Authority (Zimra) and other authorities to “act fast on to the United States dollar (USD) when he reduced its requests”. economic growth forecasts from 6,3 percent to four This comes as Frank Buyanga’s company has percent for this year, and from nine percent to 3,1 said it can avail a Rand 500 million facility to import percent for 2019. essentials, including fuel, foodstuffs and drugs, and the Chris Mugaga, the Zimbabwe National Cham- Reserve Bank of Zimbabwe has already given or ex- ber of Commerce (ZNCC) chief executive, said pressed its partial support for the venture. Ncube’s budget did not inspire confi dence as it over- “We urge you to assist AMG with the processing looked that currency conundrum. of the necessary import documentation… with the ur- “Without a currency framework in place, inves- gency this matter requires. Within seven days, we will tors will naturally be jittery,” he said. be commissioning the process,” Estee Mamman, the However, Busisa Moyo, former Confederation company’s chairperson, said in a recent letter to Zimra of Zimbabwe Industries president, noted that it was commissioner-general Faith Mazani, adding “this was not Ncube’s responsibility to deal with the currency a non-profi t making initiative to benefi t the people of debacle. He suggested that the central bank should Zimbabwe and to be executed under bond”. address the matter in its monetary policy statement On his part, Central Bank governor John Mangudya next year. had said AMG could “utilise the current duty-free win- Although revenue collections exceeded budget dow and dispensation to import goodies using its free Mthuli Ncube Chris Mugaga targets for the fi rst nine months of the year, govern- funds”. ment overshot its expenditure target of $4,1 billion According to people familiar with the South Afri- to reach $6,5 billion. As a result, the Ministry of Fi- ages, Zimbabwe is battling severe economic vulner- tire civil service, starting next year while senior civil can-based fi rm’s offer, the request for a prolonged or nance expects the budget outturn at year-end to reg- abilities. The country’s revenue is forecast to grow servants will see a fi ve percent cut in basic salaries. enhanced special importation regime was based on its ister $8,2 billion, against a target of $5,3 billion, an by 25 percent to $6 billion in 2019, nearly halving Ncube also wants to reduce the number of for- anticipated volumes and that it might need to be imple- expenditure overrun of around $2,9 billion. the budget defi cit. eign missions and is committed to seeing through mented beyond the lifespan of Statutory Instrument 122 With a current account defi cit, rapidly rising in- To weed out ghost workers, the 2019 budget the termination of 2 900 of the remaining youth of- — in order for its impact to be felt — as well as being fl ation, a liquidity crisis and foreign currency short- looks to introduce biometric registration for the en- fi cers by end of year. newsdesk@fi ngaz.co.zw time-sensitive. newsdesk@fi ngaz.co.zw Page 28 | November 29-December 5 2018 The Financial Gazette The Financial Gazette November 29-December 5 2018 | Page 29 Page 30 | November 29-December 5 2018 The Financial Gazette National News Housing Africa targets Nigeria market

IGERIA’S Housing minister tial in Nigeria’s housing market was hancing Nigeria’s living standards Mustapha Baba Shehuri has quite huge and investors can “tactfully through low-cost housing. Ncalled on construction indus- embrace the risk with modest profits” The HAC boss, who was hound- try stakeholders “to relatively reduce to ensure low-income earners, and ed out of Zimbabwe, said materials the price of houses” to enable low-in- others can also have a roof over their for the construction of the envisaged come earners and the poor to afford heads. houses will be sourced locally and decent accommodation. The federal government minister with labour made up of Nigerians. This was after he had received a also challenged the Federal Housing Locally, the Irish businessman was delegation from Stephen Duggan’s Authority and the Federal Mortgage the brains behind a residential com- Housing Africa Corporation (HAC) Bank of Nigeria to find ways of part- plex in Harare’s eastern Caledonia to discuss a deal for providing cheap nering Duggan’s company to solve the suburb and where about 8 000 units houses for civil servants and others in country’s accommodation problems. were to be built in conjunction with the populous nation. Earlier, Duggan emphasised that the National Social Security Author- Nigerian Housing minister Mustapha Baba Sherui chats to Housing Africa Corpora- Shehuri disclosed that the poten- his mission was to find ways of en- ity. – Daily Sun/FinGaz tion chief executive Stephen Duggan (right) at his office recently. ZIMRA unfazed by potential revenue loss

Ndakaziva Majaka Markets Editor

HE Zimbabwe Revenue Authority (ZIMRA) says the payment of duty in foreign exchange will not dent next Tyear’s projected $6,6 billion tax collections. Faith Mazanhi, ZIMRA’s commissioner-general, told The Financial Gazette that while Treasury’s move to charge duty in foreign currency on designated goods ― including vehicles and meat ― may see a reduction in imports, she was banking on other tax heads to reach the target. “This is a policy trying to address one area and yes, the revenue may be reduced because less cars are coming because people can’t afford … but we are hoping those who may not afford duty in foreign currency are going to buy locally. So we will either get this money in duty or Value Added Tax (VAT),” she said. Finance minister Mthuli Ncube last week invoked the Cus- toms and Excise Act, which imposed duty in foreign currency on luxury imports in a move aimed at curbing outflows of hard currency. Official government statistics show that Zimba- bweans splurge $500 million, in scarce US dollars, on vehi- cle imports annually. A total of 300 second-hand vehicles are delivered to Beitbridge border post, while around 200 import entries are processed daily. Mazanhi said those who needed the goods would find ways to pay for them in foreign currency. “There are businesses that have foreign currency, they will still import and the cars will still come so those that really need cars can buy locally or make the sacrifice to pay duty in forex,” the ZIMRA boss said on the sidelines of a national stakeholder indaba organised by Ziopra Consulting Group and The Finan- cial Gazette. Other goods listed for duty in forex include cheese, grapes, groundnuts, margarine, selected meat products, poultry prod- ucts, preserved fish and salt water. When the policy statement was announced there was con- fusion on the effective date of the directive as those who had made payments for their vehicles before the announcement felt hard done by as they were still to take delivery. However, the tax collecting agency threw a lifeline to private motor vehicle importers who had paid on or before November 22, 2018, exempting them from mandatory duty in foreign currency. ZIMRA said individuals who imported vehicles on or before November 22, and whose cars are sched- uled to arrive in Zimbabwe on or before January 3, 2019 can pay their duty through RTGS, bond notes or foreign currency. [email protected] Pepsi, Coca Cola pour $1.4bn into Pakistan EPSI and Coca Cola are set to invest $1.4 billion in Pa- kistan in coming years, a statement from Prime Minister PImran Khan’s office said, after executives from the two companies met with Khan. Pepsi planned to make “a further investment of $1.2 bil- lion” in the next five years, Khan’s office said on Wednesday, after the company’s chief executive for Asia, Middle East and North Africa, Mike Spanos, led a Pepsi delegation that met Khan. Coca Cola, which has a $500 million business already in Pakistan, also pledged a planned $200 million investment in the coming two to three years, Khan’s office added in a sepa- rate statement on Tuesday. Coca Cola did not immediately respond to a request for comment. Pepsi could not be reached for comment. Khan, who assumed power in August, has inherited a wob- bly economy reeling from a ballooning current account deficit, which has prompted the government to seek loans from allies China and Saudi Arabia, as well as enter bailout talks with the International Monetary Fund (IMF). But many consumer companies see Pakistan, the world’s sixth most populous country, as a hot consumer market due to its fast-growing population of 208 million people. Khan told the delegations that Pakistan was committed to facilitate businesses and investors in Pakistan, where 100 mil- lion people are below the age of 30. ― Reuters Life & ArtsNews Worth Knowing

November 29-December 5 2018 Page 31 France to give back looted African art? FRICAN artworks held up to 90 percent of African art France,” he said at the time. taken in the 1860s after battles in French museums — is outside the continent, includ- The French report could in northern Ethiopia, Yonas Arichly carved thrones, ing statues, thrones and manu- have broader repercussions. In said. doors to a royal kingdom, wood- scripts. Thousands of works are Cameroon, professor Verkiji- In Nigeria, a group of bronze en statues imbued with spiritual held by just one museum, the ka Fanso, historian at the Uni- casters over the years has meaning — may be heading Quai Branly Museum in Paris, versity of Yaounde One, said: strongly supported calls for the back home to Africa at last. opened in 2006 to showcase “France is feeling the heat of return of artifacts taken from the French President Emman- non-European art — much of what others will face. Let their Palace of the Oba of Benin in uel Macron, trying to turn the it from former French colonies. decision to bring back what is 1897 when the British raided it. page on France’s colonial past, The museum wouldn’t immedi- ours motivate others.” The group still uses their fore- received a report Friday on re- ately comment on the report. Germany has worked to re- fathers’ centuries-old skills to turning art looted from African Among disputed treasures turn art seized by the Nazis, produce bronze works in Igun lands. in the Quai Branly are several and in May the organisation Street, a UNESCO World Her- From Senegal to Ethiopia, works from the Dahomey king- that coordinates that effort, the itage Site. artists, governments and muse- dom, in today’s West African France is planning to return artworks looted from Africa. German Lost Art Foundation, Eric Osamudiamen Ogbe- ums eagerly awaited the report country of Benin: the metal- said it was starting a program mudia, secretary of the Igun by French art historian Ben- and-wood throne of 19th-century logical that Africans should get er promises by Macron to turn to research the provenance of Bronze Casters Union in Benin edicte Savoy and Senegalese King Ghezo, the doors to the back their artworks. ... These the page on France’s troubled cultural objects collected during City, said: “It was never the economist Felwine Sarr, and palace of Kign Gele, and impos- works were taken in conditions relationship with Africa. In a the country’s colonial past. intention of our fathers to give commissioned by Macron him- ing, wooden statues. that were perhaps legitimate at groundbreaking meeting with Britain is also under pres- these works to the British. It is self. The head of Ethiopia’s Au- the time, but illegitimate today.” students in Burkina Faso last sure to return art taken from important that we get them back It recommends that French thority for Research and Con- The report is just a first step. year, Macron stressed the “un- its former colonies. In recent so as to see what our ancestors museums give back works that servation of Cultural Heritage, Challenges ahead include deniable crimes of European months, Ethiopian officials have left behind.” were taken without consent, if Yonas Desta, said the report enforcing the report’s recom- colonization” and said he wants increased efforts to secure the Ogbemudia warned the new African countries request them shows “a new era of thought” in mendations, especially if mu- pieces of African cultural heri- return of looted artifacts and French report should not remain — and could increase pressure Europe’s relations with Africa. seums resist, and determining tage to return to Africa “tempo- manuscripts from museums, just a “recommendation merely on museums elsewhere in Eu- Senegal’s culture minister, how objects were obtained and rarily or definitively.” personal collections and gov- to make Africans to calm down. rope to follow suit. Abdou Latif Coulibaly, told The whom to give them to. “I cannot accept that a large ernment institutions across Brit- “Let us see the action.” The experts estimate that Associated Press: “It’s entirely The report is part of broad- part of African heritage is in ain, including valuable items — Washington Post

For the week ending 28 November 2018 DEONTAY Wilder (33) makes his eighth WBC heavyweight title defense against Tyson Fury News Worth Knowing (30) in a battle between reigning and former champion at the Staples Center, in Los Angeles, Sport on Saturday. Page 32 November 29-December 5 2018 SPORT SHORTS Superstar LeBron James not retiring soon

WANT to know how long Los Angeles Lakers superstar LeB- ron James wants to play in the NBA? Just keep an eye on his son. James is hoping to last long enough in the league that he can share the court with his son. James shared that thought during an appearance on the Tim Ferriss Show. James said he would love to play with his son, LeBron James Jr., in the NBA. LeBron Jr. is currently in eighth grade, so that would mean LeBron James Sr. would have to keep playing in the NBA for five or six more years, depending on whether the current eligibility rules remain in place. It’s not the first time James Sr. has expressed that desire. He mentioned the pos- sibility to GQ in 2017, and reiterated it in an interview with ESPN in June. A lot would have to go right for it to actually happen. James Sr. would need to still be playing five or six years from now. While he’s one of the greatest of all-time, expecting him to stick around until he’s 40 could be tough. On top of that, his son needs to prove he’s a legitimate NBA prospect. James Jr. has been a standout player in eighth grade, but that’s a long way from the NBA. — aol.com Kyrgios will ‘run himself out’ of tennis

TENNIS great John McEnroe fears Nick Kyrgios is on a path FERNANDO Alonso (left), Sebastian Vettel (centre) and Lewis Hamilton hold 11 of the most recent World Championships won in a golden era for driving to tennis ruin if he does not talent in the sport. change his ways. “He’s going to run himself out of the game at this point, which I don’t want to see. But that’s what’s going to happen. It’s as clear as day,” McEnroe told the Nine Net- Brexit to hit British-based work’s 60 Minutes program. McEnroe’s provocative claim comes barely a fortnight after Kyrgios publicly announced he was seeking professional help to “get on top of” his mental health issues. McEnroe put his hand up to mentor Kyrgios two years ago, an offer that F1 teams, European races prompted a “he’s dreaming” response from the Australian but the pair have since bonded while McEnroe has captained Kyrgios in Team World for the first two editions of the Laver Cup. “I like him a lot. I think he’s a great kid and actually I think he’s the most talented tennis player that I’ve seen in 10 … Nine F1 grands prix to be held in Europe in 2019 years,” the former world No 1 and seven-times grand slam champion McEnroe said. — theguardian.com

ONATHAN Neale, the chief operating officer cumbersome process which would put risk into the Europe. Some complex sub-assemblies will cross Ronaldo hits 100 Champions League wins at McLaren, has warned the result of a no-deal ability to deliver the show.” many borders before they arrive here. JBrexit may put the ability of teams to stage For- Neale said McLaren have identified the key ar- “If every time a border is crossed there is a trans- mula One meetings at risk. Seven of the 10 teams eas they believed may be issues in light of a no-deal action, it introduces a huge amount of inertia and are based in the UK and there will be nine races in Brexit. “The friction points are talent; supply chain inefficiency to our supply chain. It will be the same Europe next year. According to Neale, McLaren are and export of our product; administrative costs in for everybody but as a business it is something we already working with partners within the sport in an coping with inefficiencies in borders and delays,” would be keen to avoid.” attempt to ensure they are ready to deal with potential he said. “We will wait and see. We are not running On Sunday, Lewis Hamilton won the Abu Dhabi difficulties. around being over-dramatic but we are absolutely Grand Prix to end the season in which he clinched If parliament rejects the prime minister’s deal addressing it.” his fifth World Championship on a high. It was the in December there is a possibility of the UK leav- Talent will be of particular concern to all teams 11th victory of the year for Hamilton, who dominat- ing Europe with no deal on 29 March next year, given the international nature of F1. McLaren’s F1 ed the race with a controlled drive. although other scenarios are still possible. By then, team employs 800 people. Neale revealed in the Hamilton performed 'doughnut' spins after cross- the F1 season will have started and the first Europe- engineering group alone there were 23 nationalities. ing the line, before he and former title rival Sebastian an race is in Spain on 12 May. Mercedes, McLaren, Ensuring this diversity was paramount. He said: Vettel flanked the retiring two-time world champi- Williams, Force India, Renault and Red Bull are all “What we would like to avoid is getting into crazy, on Fernando Alonso, and all three performed more JUVENTUS coach Massimiliano Allegri hailed the impact in the UK, while Haas have their headquarters in the administratively costly and time-consuming visa doughnuts on the start-finish straight. Cristiano Ronaldo was having on the Italian champions as USA but a base in Banbury. requirements either for retention or for future recruit- Hamilton and Vettel then each shared an embrace the Portuguese star became the first player to achieve 100 “The key issues will be border efficiency for both ment. We want to be able to hire talent on the basis of with Alonso, demonstrating their respect for each Champions League wins in Tuesday’s 1-0 success over Va- parts and people and administrative costs,” said Ne- right person for the job.” other's abilities. The three drivers hold 11 of some lencia that clinched their passage to the knockout rounds. ale. “McLaren F1 takes 40 tons and 100 people and Toto Wolff, Mercedes’ team principal, recently of the most recent World Championships won in a “Ronaldo gives us a sense of security and confidence,” said we pop up at an event every two weeks around the said he had concerns too for the 1,800 people em- golden era for driving talent in the sport. Vettel took Allegri of the beaten finalists in two of the last four editions globe in 20 countries and five continents, through a ployed across Mercedes motorsport in the UK, many second after Hamilton's team-mate Valtteri Bottas of the elite European competition. “The team is essential- variety of customs borders, to put the show on the of whom are EU citizens. Renault also face potential faded to fifth, which means the Finn ends the season ly the same as last season. We’ve grown, become faster in road. Currently there are well-trodden paths in how difficulties. They are based in Oxfordshire but their without a victory. playing the ball, but then of course, there is Cristiano Ron- we manage customs and borders in order to move engines are manufactured in France. Meanwhile Michael Schumacher’s son Mick, aldo. This team is constantly improving – they’re passing seamlessly. “We are 10 weeks from starting our car build 19, will compete in F2 next year. He will continue to and putting play together more quickly.” Ronaldo — who “One of the things we are doing is working with for 2019,” Neale said. “An F1 car has about 14,000 race for the Prema team with whom he drove an ex- joined Juventus last summer from Real Madrid — is target- F1, HMRC and our logistic providers like FedEx parts and the carry-over between the last race of this ceptional season in this year’s Formula 3 European ing a sixth Champions League title to add to his four with and DHL and try to anticipate [and] lobby, to make year and the first of next year will be less than 10%. Championship, taking the title with eight wins and the Spanish team and one with Manchester United. sure that we continue to work efficiently … that the Many of those materials are sourced from a number seven poles. F2 is the final proving ground in an at- The Italian team are looking for their third European title administrative cost and the burden don’t make that a of small-to-medium enterprises in the UK and across tempt to gain a seat in F1. — theguardian.com and first since 1995. — Sports24