'Agric to Anchor Zim's Q2 Economic Recovery'

‘AGrIc To AncHor ZIm’S Q2 EconomIc rEcovEry’: P7

News Worth Knowing Pay other lenders first, IMF says: P3

February 25-March 03 2021 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette Z$260

ZSE Report TRADING on the Zimbabwe Stock Exchange (ZSE) was on a recovery path yesterday after 24 stocks recorded gains Gvt calls and 12 stocks in traded the negative. The biggest advancers were Natfoods at 20 percent and Unifreight 20 percent whereas the biggest losers were African Sun at 11,64 percent and Zimpapers down 10,71 percent. The total quantity traded was 12,6 million shares worth $89,5 million with Ok Zim trades valued at $21 million, Meikles 14,6 million and Simbisa Brands for trade dominating trades in terms of value. Currencies (Bloomberg) % change ◀ USD:ZAR 14,5655 0,15 ◀ EUR:USD 1,2162 0,10 ◀ GBP:USD 1,4156 0,30 ◀ USD: JPY 105,7600 0,48

Stock Markets ◀ ZSE All Share 4,075,87 2,28 ◀ 2,432,78 2,24 restraint Top 10 ◀ JSE 66,678.30 1,15

FTSE 100 6,618.69 ◀ 0,11 ◀ Dow 31,537.35 0,05

Commodities ◀ Gold 1,805,81 0 ◀ Platinum 1,266,90 1,92 ◀ Brent Oil 65,84 0,72 Grains (Grain SA) ◀ on prices White Maize ZAR 3,255 12,00 Soya ZAR 8,960 185,00 ◀ ◀ Tendai Kamhungira been accused of accessing foreign curren- Wheat ZAR 5,095 13,00 Senior Staff Writer cy through the RBZ’s much-lauded weekly auctions, and then allegedly going on Zinara gets nod HE government has called for mar- to sell their products using parallel market ket discipline and self-restraint by rates — thereby introducing market dis- to raise road T traders following the recent surge tortions. in prices of some goods in the country. “We are very worried about the extent Speaking on Tuesday during a Daily of the current levels of market indisci- rehab funds News webinar that unpacked the Reserve pline, and the government strongly sup- THE government has authorised the Bank of Zimbabwe (RBZ)’s recent Mon- ports the action by the RBZ to have the Zimbabwe National Road Adminis- etary Policy Statement, the ministry of necessary punishment for those who are tration to source funding on the mar- Finance’s permanent secretary, George abusing the auction system. ket for a US$400 million emergency Guvamatanga, said the creeping indisci- “In fact, we have actually been dis- road rehabilitation programme. The financing will be in advance pline by some businesses was threatening cussing with the central bank to introduce of allocations yet to come from the the stability of the markets. further legislation to ensure that we curb Treasury. As a result, he warned, the government that indiscipline before it becomes market This comes after the government would not hesitate to consider enacting failure. declared the country's roads a state appropriate legislation going forward, to “We are also concerned by the wan- of disaster, following incessant rains curb abuses of the foreign currency auc- ton increases in prices we have witnessed across the country. tion system and unjustified price increas- over the past two months, which we be- John mangudya, the central bank governor, says diaspora remittances The programme will cover cor- into Zimbabwe increased by a massive 57,6 percent from US$635,67 es. lieve are not justifiable,” Guvamatanga rective, preventive and restoration million in 2019 to US$1 billion in 2020. See story on Page 11 This comes as a few businesses have said. To Page 2 works over the next 36 months. Page 2 | February 25-March 03 2021 The Financial Gazette News Gvt calls for trade restraint on prices From Page 1 the back of an anticipated bumper has pinned the country’s econom- tomer due diligence and customer “There is no justification what- agricultural season this year. ic revival on agriculture — in the profiling,” Mangudya said. soever for this current level of He added that the good agri- process, setting for itself an ambi- “Some people are going to the pricing of $110 or $120 (trading cultural season would also see tious target of achieving a US$8,2 extent of selling the proceeds they Zimbabwe dollar exchange rate to the government saving signifi- billion agriculture economy by would have received in foreign the greenback) that we are seeing cant sums of foreign currency that 2025. currency to the black market at in the market. would otherwise have been used With improved output from ag- $100 and coming back to the auc- “We will see the course of for imports — and which resourc- riculture, coupled with the easier tion, bidding at $82 to $85 — and events in the next week and the es would be channelled to social availability of foreign currency, that is wrong. first two weeks of March. If there services. Mangudya said the manufactur- “There are people, companies is no significant change by then, “We are banking on a favour- ing sector was also set to recover and entities that have the propen- this could actually force govern- able agriculture season to contain since it drew 70 percent of its raw sity to abuse the auction system. ment to intervene, but it’s not our food prices. We, therefore, antic- materials from the agricultural We think that we should be a nor- intention to do so. ipate increased food production sector. mal economy where we do every- “So, we hope that the market due to the favourable agriculture In addition, he said, the RBZ thing above board,” he also said. will take heed and take the nec- season which will support ex- was working hard to ensure that “Our Financial Intelligence essary steps to make sure that ports, reduce imports and ease banks and other participants in Unity (FIU) has enhanced its there is market discipline,” Guva- pressure on the fiscus. George Guvamatanga the country’s foreign exchange monitoring and surveillance to matanga added. “We also expect inflation to system complied with auction make sure that those who are mis- He further observed that fall because of the favourable rules — to curb potential abuses behaving are brought to book. among “the biggest culprits (in agriculture season. Our food in- "We will see the of the foreign exchange auctions, “We are also refining the com- this regard) are players in the flation is mainly because of im- which contributed to price surges. pliance regulations, as well as the pharmaceutical sector, as well as ported inflation. course of events in “On this note, we have seen that fines and our methods in order to hardware stores”. "We have been importing the next week and there is a new spirit of non-com- curtail the mischief. The RBZ introduced the for- maize, wheat and crude soya oil, the first two weeks of pliance creeping in and slipping “We are also putting in place eign currency auction system last whose prices have been going through the hands of banks, where a statutory instrument to ensure June to first stabilise, and then up. March. If there is no some shelf companies are being that the fines are increased, so boost the country’s economy — “In Zimbabwe, we have im- significant change by formed so that they come to the that we hit the pockets of those a move which helped to tame the ported inflation from outside the foreign currency auctions to get who misbehave and that the FIU then rampant forex parallel mar- country which we cannot con- then, this could actu- foreign currency. is improved. ket. trol. ally force government “We have seen that in this "We also have no qualms in Addressing the same Daily "So, when we grow more food economy, foreign currency is not freezing the accounts of offend- News webinar, central bank gov- we expect the price of maize and to intervene, but it’s always used for transacting pur- ing parties,” Mangudya warned ernor John Mangudya said Zim- wheat products, as well as cook- not our intention to poses, but as a store of value. further. babweans could look forward to ing oil to stabilise,” Mangudya do so." “It is precisely because of this See also Page 8 a further improvement in their said. point that we are calling upon all [email protected] lives and more stable prices on This comes as the government banks to ensure that they do cus-

The Financial Gazette @FingazLive RBZ bonds mop-up $14bln

Omega Ukama money growth to 22,5 percent from 25 per- Companies Editor cent, which it says is consistent with annual inflation of below 10 percent and economic HE Reserve Bank of Zimbabwe growth of 7,4 percent being pursued by the (RBZ) mopped up $14,1 billion of government. Develop financially Texcess liquidity through open market Analysts who have characterised the sta- operations (OMO) between October and bility seen in the economy in recent months December last year, which it says aided con- as “fragile”, however, say this is at risk as literate business leaders tainment of money supply below set targets. unplanned government expenditure remains Reserve money — the fundamental a “not so distant possibility”. component of money supply — closed 2020 “While the 2021 national budget indi- at $18,76 billion, compared to a target of cates a shift from Command to Smart Ag- $25,20 billion, according to the apex bank. riculture, we cite that there is scope for un- “In line with its conservative monetary planned government expenditure in 2021, targeting framework, the bank escalated particularly as we move towards an election OMO from October 2020 by aggressively year in 2023,” Morgan & Co, a local equi- mopping up excess liquidity through the is- ties firm said last week in a note. suance of short-term OMO savings bonds,” “Political interests will always take cen- RBZ governor John Mangudya said last tre stage, and this could lead to budget over- week in his 2021 Mmonetary Policy State- runs.” ment. The firm said because of this, “there is He said the OMO savings bonds, which no quick-fix solution to the currency issues offer interest of five percent per annum, in Zimbabwe”. complemented existing savings bonds that Morgan & Co estimates that the parallel had a total outstanding amount of $5,6 bil- market exchange rate, which has been hov- lion as at December 2020, bringing the total ering around $120, will move to $150 by the stock of central bank bonds in issue at the end of the first quarter of 2021 and $200 by end of the year to $19,7 billion. June 2021. The governor reported that the bank Meanwhile, broad money supply — a achieved a “conservative” quarterly growth measure of an economy’s entire stock of in reserve money of 18,6 percent in 2020, money, including foreign currency depos- against a target of 25 percent per quarter. its — increased from $36 billion in January “Containment of reserve money… is at- 2020 to $184 billion in December 2020. tributable to the bank’s active mopping-up “The growth in money supply was large- Subscribe for your former programme through OMO and the strong ly attributable to the impact of exchange fiscal consolidation measures that have seen rate movements on the 60 percent foreign & your child’s school government completely refraining from re- currency component of the deposits,” Man- sorting to the overdraft window at the cen- gudya said. The official exchange rate depre- tral bank.” ciated from $17,35:US$1 in January 2020 Contact our subscriptions team on: The central bank says out of control to $57:US$1 at the first foreign exchange money supply growth had pushed up the auction in June, and further to $81,82:US$1 [email protected] country’s inflation, which peaked at 837,58 by the end of November 2020. percent in July 2020 and closed 2020 at Consequently, Mangudya said foreign 348,59 percent after a slow-down in the currency deposits increased from $12,45 Subscribe Now month-on-month figure. billion January to $102,18 billion in No- A recent central bank study found that vember 2020, “thus significantly account- there is a corresponding relationship being for the expansion in money supply”. tween an increase in money supply and the “Foreign currency deposits ac- depreciation of the exchange rate. counted for 55,4 percent of money To support previous policies and address stock, while local currency depos- emerging risks, the central bank has this its constituted the remainder,” he said. year reduced its quarterly target for reserve [email protected] The Financial Gazette February 25-March 03 2021 | Page 3 National News Clear arrears with other lenders first, IMF says Tendai Kamhungira tracted sharply in 2019, amplified Senior Staff Writer by climate shocks that crippled agriculture and electricity genera- HE International Monetary tion. Fund (IMF) says it cannot “Growth is projected to contract T lend money to Zimbabwe further in 2020, with domestic de- unless Harare clears its arrears mand expected to be significantly with other international lenders. depressed from the lockdown put At the same time, the IMF said in place as a preventive measure to Zimbabwe has been in good stand- stop the spread of the virus. ing with it since it cleared its then “Cumulatively, Zimbabwe’s longstanding arrears in 2016. economy could contract by be- IMF representative in Zimba- tween 15 to 20 percent during bwe, Patrick Amir Imam, told The 2019 and 2020 — this is a massive Financial Gazette this week that contraction with very serious so- Zimbabwe had to clear its out- cial consequences,” Ncube said in standing debts with other interna- his letter. tional financiers to access money “Already 8,5 million Zimba- from it. Patrick Imam Mthuli Ncube Eddie Cross bweans (half the population) are “Zimbabwe has been a member food insecure, from Cyclone Idai of the IMF in good standing since recorded in 2019. coronavirus. ference here,” Cross told a Lon- and successive droughts, health it repaid outstanding arrears in late “To become eligible for finan- Eddie Cross, a former mem- don-based publication before he services are inadequate, and pov- 2016. cial support from the IMF, Zimba- ber of the Reserve Bank of resigned from the MPC. erty levels are rising. These indica- “Nonetheless, the IMF cannot bwe will need to clear its arrears Zimbabwe’s Monetary Pol- Last year, Finance minister tors are expected to worsen. provide financial support to any with the other international finan- icy Committee (MPC), rued Mthuli Ncube wrote to the IMF “Zimbabwe desperately needs member country that has arrears to cial institutions, as well as reach the IMF decision not to extend warning that the country was fac- urgent international support. other international financial insti- an understanding with its bilateral US$900 million to Harare, which ing a “health catastrophe” as it “The global pandemic will take tutions,” Imam said. creditors over the clearance of ar- he said would have made a big dif- didn’t have the funds to fight the a heavy toll on the health sector, Zimbabwe owes in excess of rears to them. ference in the country. virulent respiratory disease. with many lives being lost, and US$1 billion to the World Bank “It will also require Zimbabwe “The western world has not Then, Zimbabwe was suffering raising poverty to levels not seen (WB), African Development Bank to be ready to implement strong been particularly sympathetic. from the triple whammy of the in recent times, including worsen- (AfDB), European Investment macroeconomic policies and struc- Last year, the IMF denied us any country’s longstanding economic ing food security. Bank (EIB) and the Paris Club of tural reforms,” Imam further told assistance at all for dealing with crisis, the negative effects of the “A domestic collapse also sovereign creditors. The Financial Gazette. the Covid-19 crisis and I thought global coronavirus pandemic and would have potentially adverse The country’s external debt This comes as Zimbabwe failed that was grossly unfair. the severe regional drought which regional effects, where spillovers stood at US$8,2 billion in Sep- in its bid to access nearly US$1 “They in fact denied us a pay- left more than half the population are significant,” Ncube warned tember — an increase of US$106 billion from the IMF last year, out of about US$900 million, facing starvation. further. million from the US$8,09 billion during the first wave of the deadly which would have made a big dif- “The Zimbabwe economy con- [email protected]

TRAFFIC SAFETY COUNCIL OF ZIMBABWE

MAWUYA • WELCOME • SIYAMUKELA

Hon. Felix Tapiwa Mhona (MP) Hon. Mike Madiro (MP) Eng. Theodius Chinyanga The Board, Management and staff of The Traffic Safety Council of Zimbabwe would like to warmly welcome the trio and congratulate them upon their recent appointments as The Minister, The Deputy Minister and Permanent Secretary in The Ministry of Transport and Infrastructural Development, respectively. As one of the parastatals in the Ministry, we stand guided by you in achieving our mission and vision as we carry out our mandate outlined in The Traffic Safety CouncilThe BoardAct (Chapter & Management 13:17) of Fossil. Contracting would like to congratulate Engineer Theodius K. Chinyanga on his appointment as Permanent Secretary of the CONGRATULATIONS • MAKOROKOTOMinistry • of Transport AMHLOPHE and Infratruactural Development Together we can save millions of lives on our roads. Congratulations! Makorokoto! Amhlophe! Safety First – There’s no second chance Page 4 | February 25-March 03 2021 The Financial Gazette National News Zim to plug revenue leakages in mining Adelaide Moyo modities exports and re-engaging into the minerals involving state security agents, Chiedza Chipangura, Zimbabwe Min- Staff Writer international legal and economic systems,” security offi cers and VVIPs,” CRDZ said. ers Federation Mashonaland Province pres- he said. The smuggling resulted in a 31 percent ident, said the Mines ministry should take HE government is working on pol- “If we divide that fi gure (US$32,2 bil- decline in gold deliveries for 2020 to 19,1 responsibility for the chaos. icies aimed at preventing leakages lion) by 20 years, we approximately get to tonnes from 27,7 tonnes in 2019, the low- “The buck stops with the ministry of Tof mineral resources, amid indica- US$1,5 billion per annum. There are differ- est amount of gold sold to Fidelity Printers Mines. The moment the ministry does tions that the country is losing an estimat- ent estimates in that regard though, remem- and Refi ners since 2014, when 15,3 tonnes not process the mining licences within the ed US$1,5 billion annually through illicit ber these illicit fi nances are not accounted were delivered. specifi ed time frame in the Act, which is fi nancial fl ows, Mines and Mining Devel- for formally for the estimate to be built as Samson Dzingwe, from the Zimbabwe within 90 days, we have problems. …we opment Parliamentary Portfolio Committee conclusive,” Mkaratigwa said. Prospectors Union, said the system used have people whose applications date back chairperson Edmond Mkaratigwa has said. He said lack of evidence makes it diffi - in the acquisition of mining rights creates to 2018 and some to 2017. If you follow up Speaking during The Financial Gazette cult to fi ght corruption in the mining sector. room for corruption. on your licence today you are told there is a webinar on Corruption in the Mining Sec- “…hard evidence is diffi cult to come Edmond Mkaratigwa He said the ministry of Mines needs to backlog and we are expected to normalise tor, Mkaratigwa said the enablers of illicit by…hence we are focusing more on in- shift to a digital system as some maps cur- that abnormal situation,” she said. fi nancial fl ows include international and stitutional and legislative frameworks to search and Development in Zimbabwe rently in use are tattered and obscure, caus- According to analysts, government’s domestic legal and economic systems. discourage corruption in the sector. We are (CRDZ), shows that the country has a po- ing disputes in the sector. fl awed policies around the fl ow and ex- “We are addressing the policy incon- also encouraging communities to … be rous and corrupt aviation security system “There is a huge backlog throughout change of foreign currency are to blame for sistency legacy by creating a market that vigilant in terms of shunning and reporting that is facilitating smuggling at private air- the whole country caused by delays in the illicit fi nancial fl ows out of Zimbabwe. is friendly to miners including small-scale corruption and we are also looking at whis- strips, national and international airports. processing, verifi cation and inspection of The Reserve Bank of Zimbabwe has miners. We are also addressing institutional tleblower protection as a way of making The report refers to the Henrietta Rush- applications. If a client or miner … spends since ceded control of its refi nery of gold, quality issues, strengthening regulation and sure we curb corruption in government,” waya gold smuggling case as “confi rmation two or three years chasing … certifi cation offering mining companies 60 percent of perhaps institutional governance while re- Mkaratigwa said. that Robert Mugabe Airport has a long his- for an application, they end up giving in to the refi ning business of Fidelity Printers ducing excessive dependence on raw com- A 2020 report from the Centre for Re- tory of systematic smuggling of precious corruption because of time,” he said. and Refi ners. newsdesk@fi ngaz.co.zw IPEC to regulate NSSA, medical COMMERCIAL TELEVISION aid societies

Nelson Gahadza BROADCASTING SERVICE Staff Writer

OVERNMENT has approved the Insurance LICENCE and Pensions Commission (Ipec) (Amend- Gment) Bill, 2020, which is expected to facilitate wholesale reforms to the sector for the benefi t and protection of policy holders and pension fund members when passed into law. Most importantly, the bill will bring the National TAKE NOTICE that Jester Media Social Security Authority (NSSA) and medical aid societies under the ambit of Ipec. “The Insurance and Pensions Commission Bill will Services (Private) Limited T/A 3KTV therefore strengthen the integrity of the insurance sector and enable it to play its role in supervising the sector,” Information minister Monica Mutsvangwa told has been awarded a Broadcasting reporters this week. Ipec had over the years made a case to the government for medical aid societies and NSSA to be placed Service Licence by the Broadcasting under its regulatory purview to improve governance and protect policyholders’ funds. This comes after thousands of policy holders have Authority of Zimbabwe in terms struggled to access medical services on fully paid-up schemes due to the high prevalence of corporate mal- practices including corruption, misappropriation of of Section 10 of the Broadcasting funds and revenue leakages. The Bill also gives Ipec the power to accredit actu- aries, auditors, asset managers, credit rating agencies and other service providers. Services Act (Chapter 12:06). Through provisions of the Bill, the commission will conduct investigations where it sees fi t for the purpose of preventing contraventions of the law in the insurance sector. “Among other functions, the board of Ipec shall ensure compensation is paid to benefi ciaries for losses Details of licence are as follows: they may incur, and shall determine the level of such compensation, based on the different classes of insurance policies or type of pension or provident fund. “Above all, the commission shall keep and main- 1. TYPE OF LICENCE: National Commercial tain asset registers for insurers, insurance brokers, pensions and provident funds,” the government said Television Broadcasting Service in the statement. Government has also approved amendments to the Insurance Bill, 2020 which, when passed into law, seeks to repeal the Insurance Act and introduce best practices in Zimbabwe’s insurance sector. 2. LICENCE AREA: National The insurance and pensions sector, according to the government, plays an important role in socio-economic development. “Through the proposed amendments, the govern- 3. APPLICANT’S HEAD OFFICE: ment intends to strengthen the institutional capacity of the Insurance and Pension Commission and the regu- 18 James Martin Drive, Lochinvar, Southerton, latory framework to create a robust and internationally respected industry regulator,” Mutsvangwa said. Harare. She added that the bill also aims to synchronise the main Acts that guide the regulation of the insurance and pensions industry and address identifi ed defi cien- cies in the current legislation. “This will also align insurance and pension legislation to international best practice in order to build a stronger regulatory framework that promotes growth and development of the insurance and pensions industry”. newsdesk@fi ngaz.zo.zw The Financial Gazette February 25-March 03 2021 | Page 5 National News Industry feels lockdown impact local community. …as coronavirus CZI president, Henry Ruzvidzo, was among the business leaders who told the Fi- nancial Gazette that the corporate sector was disrupts supply chains indeed mobilising funds to help bring in vaccines. Paul Nyakazeya “There are financial commitments from Group Digital Editor various firms in this regard so far. What is left is for the government to agree on the type HE Confederation of Zimbabwe Industries of vaccine, the time-frame when the vaccine (CZI) says nearly 86 percent of industry’s sup- is expected in the country, when the procure- ply chains have been severely disrupted during ment will begin and the roll-out programme T after working on the shots. the current national Covid-19 lockdown. Zimbabwean authorities imposed a tough lockdown “The vaccines give us reason for optimism at the beginning of January following a sharp rise in as repeated cycles of lockdowns take a heavy deaths and infections. toll on the viability of business,” he said. In its State of the Industry Report, CZI said the dis- Zimbabwe has already received the first ruptions impacted businesses and consumers as move- batch of 200 000 vaccines which were donat- ment of goods from producers to consumers had been ed by the Chinese and kick-started the vacci- Police checkpoints restricting unnecessary movement of non-essential workers have led to seriously affected. nation programme last week. “Eighty-six percent of businesses noted that their massive delays on the roads. [email protected] supply chains have been heavily disrupted by the lockdown, while 14 percent highlighted minimal to no disruptions in supply chains. “The main reasons for the disruptions were border delays, restrictions in movement and certain suppliers designated as not essential and, therefore, were not able to operate,” the CZI said. This comes as the pandemic has tested the ingenu- ity, resilience and flexibility of supply chain leaders locally, as they have sought to maintain essential operations. The survey, which was conducted between January 5 and February 14 this year, looked at four main business areas — production, employee levels, demand and supply chains. At lest 57 companies responded to the survey. “Forty-four percent of the respondents highlighted that they were operating at less than 30 percent capacity utilisation, with 32 percent recording capacity utilisation of between 30 percent and 60 percent, and 24 percent of the responses noting capacity utilisation of between 60 percent and 90 percent,” the CZI further said. “On the demand side, 65 percent of the responses highlighted that the lockdown had negatively affected demand for their products, while 35 percent highlighted that demand for their products has not been affected by the lockdown, especially those that supply to businesses that are considered essential,” the largest business member organisation said. The CZI said the survey results showed that employment levels of workers going to work varied from one organisation to another, adding that employment levels ranged from 10 percent to 100 percent. “Thirty-seven percent of the respondents had employment levels of between 50 and 100 percent, while 63 percent had employment levels of less than 50 percent,” the CZI added. It said other challenges faced by industry during the period under review included short working hours due to the curfew, police roadblock delays and lack of clar- ity on the requirements to commute to and from work. The challenges also encompassed delays in receiving procured raw materials, lack of safe public transport for employees, unstable digital connectivity, limited access to all channels of distribution, border delays and support services not readily available. “Some of the challenges include service providers not classified as essential, so they are not allowed to operate, too many taxes/levies from government and quasi-government institutions, employee absenteeism due to quarantine/isolation, as well as attending to sick family or relatives." Further challenges noted include: “Low morale due to Covid-19 fears and stresses, shortage of financing and high interest rates and police interference on pri- vately-contracted staff transport. About 30 percent lost operational time due to transport restrictions,” the CZI further revealed. It said the other challenges included the Zimbabwe Revenue Authority “forcing all businesses” to install forex fiscal devices when industry was struggling. The CZI has now made suggestions to limit the impact of the lockdown on industry going forward, which include long-term working capital funding for affected businesses, containing the spread of the virus through vaccination and allowing the economy to open up. Other suggestions by the CZI include more consul- tations between the government and industry as well as gradual re-opening of companies, which it said should be mapped by provinces or towns depending on the prevalence rates. The CZI also suggested that the government should provide funding for distressed industries. Last week, the business organisation said it was ramping up efforts to help procure the much-needed coronavirus vaccines under a multi-sectoral initiative, which aims to protect both workers and the broader Page 6 | February 25-March 03 2021 The Financial Gazette National News Cafca’s export volumes up 25 percent

Nelson Gahadza Staff Writer

AFCA Limited (Cafca) has maintained firm lev- Mthuli Ncube Duduzile Shinya John Mangudya els of finished goods stocks as a strategy against Clogistical and currency instability as well as avoiding stock outs, the company said in a first quarter to December 31, 2020 trading update This comes as the group’s conductor tonnes increased to 615 compared to 426 achieved during the prior year’s same quarter comparable. Legacy debts: RBZ “Efforts to maintain finished goods stock levels will continue, and we have no reason to believe that the next three months will be any different to this quarter’s volumes,” Caroline Kangara, the company secretary said. Cafca manufactures and supplies power cables and allied products for the transmission and distribution of electronical energy and information primarily in South- considers gvt paper ern and Central Africa. The manufacturer, like many others, has been impacted by delays in imports and movement of commer- Adelaide Moyo Following the reintroduction of the ZWL$ by the coronavirus (Covid-19) hence the issue cial cargo. Staff Writer in June 2019, Finance minister Mthuli Ncube of legacy debt should be urgently addressed,” However, despite that, the group’s export volumes called on all banks representing companies Henry Ruzvidzo, CZI president, said recently. increased by 25 percent compared to the current quarter HE governor of the Reserve Bank of with legacy debts to transfer the domestic cur- The RBZ committed to assuming the for- to the same quarter last year due to consignment stock Zimbabwe (RBZ), John Mangudya, rency portion of the “blocked funds” to the eign legacy debts to rescue companies. initiatives and Covid-19 implications on logistics. Tsays the bank is considering issuing apex bank for payment or settlement at a rate The financial results indicated that some Kangara noted that local market volumes increased a tradable financial instrument as part of of one-to-one to the US$. companies were keen to offload their debts to by 47 percent year-on-year with utilities, mining and solutions to settle outstanding foreign lega- By August last year, the central bank said it the RBZ with some still waiting for their ap- retail being very buoyant. cy debts, which continue to weigh down the had approved as much as US$1,2 billion of the plications to be approved. “Accordingly, we are forecasting a six-monthly books of most local firms. legacy debts, but the respective debtors, how- Some have indicated that they have en- volume that will be well above the previous year’s Over the past two years, a number of com- ever, still have the obligations on their books, gaged their creditors to restructure the debts in six-monthly volume,” it said. panies have received adverse audit opinions and in most cases as a foreign currency debt line with directives and guidelines. According to the group’s 2020 financials, year-on- on their results due to, in part, the delayed res- obligation, which tracks movements in the ex- Delta Corporation said steady progress has year volumes slightly improved from 1 735 conductor olution of the matter and the lack of a defini- change rate. been made in the settlement of its loan for the tonnes in 2019 to 1 444 conductor tonnes in 2020. tive accounting framework for the obligations. Duduzile Shinya, Icaz’s president, wel- acquisition of United National Breweries (SA) Cafca’s turnover in historical terms improved by “The reserve bank, together with the Fi- comed the government’s proposal, saying it while Nampak Zimbabwe said it would next 822 percent, ahead of inflation while turnover in in- nance ministry, through the debt manage- “hopefully, with time, will reverse the impacts month start paying in tranches, the US$66,8 flation adjusted terms increased by 24 percent partly ment office, is putting in place a definitive of the modified opinions”. million it owes foreign creditors. due to the slight increase in tonnage but mainly due to programme for accounting and expunging “A lot of companies have been affected in British American Tobacco (BAT) Zimba- sales mix. of foreign exchange obligations under the the past by way of modified opinions on their bwe said it is pursuing the central bank for the The company’s balance sheet for the year remained blocked funds and foreign exchange lega- financial statements… if we go back just two finalisation of US$15 million in legacy debts strong with a net positive bank balance of $82,5 million cy-debt framework,” the governor said during years, there are a number of companies with owed to creditors. and debtors mainly being foreign US$ balances. a Daily News webinar on Tuesday, adding international reporting lines that have been The emotive issue also comes as a number [email protected] that applications for qualification under this negatively impacted,” she said during the of local companies have been at odds with framework have been closed and the bank and same webinar. their foreign suppliers owing to the country’s government are at the stage of implementing a “Auditors have constantly flagged these is- inability to earn, and avail hard cash. For in- “resolution”. sues as key audit matters,” she added. stance, Innscor Africa-owned NatFoods — “We are considering a financial instrument Financial results announced during the sec- one of Zimbabwe’s food processing giants — to ensure that audit requirements are met… ond half of 2020, and reports by CZI mem- has been wincing about a US$40 million-plus we have spoken to the Public Accountants and bers showed that local companies with these foreign debt, which was fully funded locally, Auditors Board and they have made recom- debts on their books were sinking deeper into but not remitted by the apex bank. mendations, which we are happy with… we dire straits as their balance sheets are being in- On the other hand, the International Air will also meet with the Institute of Chartered creasingly eroded. Transport Association has said a number of Accountants of Zimbabwe (Icaz) over the “I think we really need to put finality to that its members, among them British Airways, same matter to hear their submissions. matter so that companies can begin to enjoy Ethiopian Airlines, Fastjet, Kenya Airways “It is something that we are definitely go- credit from their suppliers outside the coun- and South African Airlines, were owed $196 ing to put in place and we need to finalise it as try. Stability is the best stimulus that can be million by the southern African nation. Cafca manufactures and supplies cable and allied soon as possible,” Mangudya said. given to industry following the tragedy caused [email protected] products. Unki’s 2020 output down on Covid-19 Adelaide Moyo vice and Unki was able to ramp up to full pro- preciating by 13 percent on average for the year (operating and capital expenditure) as part of Staff Writer duction. As a result of the precautions taken to to R16,36 per dollar (2019: R14,50 per dollar),” its digitalisation programme during 2020 (2019: ensure a safe start, mining operations lost nine Amplats said. R14 million). This included installing under- NGLO American Platinum's (Amplats) days of production, concentrator operations lost Rand-denominated cash operating costs in- ground Wi-fi infrastructure, as well as a fleet data Zimbabwe unit, Unki Mine, recorded a 33 days, and smelting operations lost 60 days,” creased by one percent to R2,4 billion despite management system to track analytics on pri- Athree percent decrease in platinum group Amplats said in its annual report. lower production. The South African based min- mary production equipment. This will enhance metals (PGM) production during the year 2020, Unki was back at normal production levels er said as a result, cash operating costs per PGM real-time data analysis, improve short-interval primarily due to the Covid-19 national lock- from early in the third quarter. ounce rose by four percent to R12,198 per ounce. control and overall equipment effectiveness,” downs and disruptions. The mine delivered adjusted earnings before Unki mine improved the built-up head grade Amplats said. The Shurugwi-based operation recorded 196 interest, taxes, depreciation, and amortisation by four percent from 3,45 to 3,58 g/t, decreased Meanwhile, PGM production for Amplats for 100 PGM ounces last year compared to 201 700 (EBITDA) margin of 46 percent in 2020 com- mass pull and increased recovery as its P101 pro- 2020 decreased by 14 percent to 3,808 million ounces in the previous year. pared to 35 percent for 2020 and a return on cap- gramme delivered results. ounces, mainly attributable to the shutdown of The miner conducted a safe and measured ital employed (ROCE) of 38 percent. Amplats said whilst it is too early to tell the operations due to national lockdowns aimed at ramp-down to care and maintenance when the “US dollar cash operating costs were 11 per- full impact of the reduced retention levels, to reducing the spread of Covid-19, as well as the government announced a national lockdown on cent lower at US$145 million. However, the date, Unki continues to meet its obligations to closure of the Tumela Upper section and some March 28, 2020. US-dollar-denominated costs were adversely im- suppliers and production has not yet been im- surface operations at Amandelbult, as they “With effect from April 7, however, the gov- pacted by the weakening of the rand against the pacted. reached their end of life. ernment recognised mining as an essential ser- US dollar, with the South African currency de- “The mine incurred R26 million of costs [email protected] The Financial Gazette February 25-March 03 2021 | Page 7 National News Zim poised for Q2 recovery: Experts Farai Mabeza The month-on-month food and non-alcoholic Staff Writer beverages inflation rate stood at 7,84 percent in Jan- uary, gaining 1,3 percentage points on the December NALYSTS have tipped the economy to re- 2020 rate. bound from the current coronavirus chaos in The month-on-month non-food inflation rate A the next quarter, on the back of strong tobac- stood at 3,7 percent — gaining 1,07 percentage co and grain deliveries following improved rainfall. points on the December 2020 rate. At the same time, the Reserve Bank of Zimbabwe The economy has been showing signs of steady (RBZ) has said the country will remain on course to progress — following a raft of measures that were achieve its target of reducing inflation and increas- introduced by the government last year — including ing foreign currency in the economy — despite the the introduction of the foreign currency auction sys- effects of the Covid-19 pandemic. tem which tamed the once rampant black market of Lloyd Mlotshwa, director at IH Securities, told hard currency. The Financial Gazette that increased activities in the To further shore up the economy, the government agriculture sector was crucial to economic recovery also recently unveiled NDS1 — which officials hope in the second quarter. will improve the lives of ordinary Zimbabweans. “Zimbabwe, in our view, is an agriculture driven NDS1 replaced the Transition- economy with an estimated 67 percent of the coun- al Stabilisation Programme (TSP) which try’s labour force employed directly or indirectly in Economic analysts believe the tobacco marketing season would be timely given came to an end on December 31 last year. agriculture and its value chains. the anticipated easing or lifting of the current lockdown. [email protected] “Our manufacturing sector is also significantly dependent on throughput from agriculture. So, from a GDP growth and consumer livelihoods perspective, activity in the sector is vital. “Therefore, in our view, when tobacco auction floors open at the end of March and the maize marketing season begins in April — given the sheer number of people employed in agriculture and its importance to the growth prospects of the country — activity will inevitably begin to improve and the government will make maximum effort to facilitate that. “Q2 from that perspective becomes a nexus point, in our view, where economic activity begins to visi- bly recover,” Mlotshwa said. An IH Securities economic update also noted that: “In Zimbabwe, it is our view that Q1 business volumes will be significantly affected, we however, see a recovery beginning to emerge in Q2 as tobacco auction floors open and maize deliveries to GMB begin. “We are going to be seeing significant easing in the demand for food imports which had spiked due to drought. “We expect a reduction in the reported US$46 million monthly cereal imports, thereby positively impacting the trade balance,” IH Securities said while forecasting the manufacturing sector to benefit from expected boon in agriculture. “We believe that the sector may see claw back gains on the back of a strong agricultural season, but industry capacity utilisation may remain subdued in the short-term as recapitalisation constraints are highly unlikely to be resolved within the time-frame. “We anticipate Innscor will be one of the largest beneficiaries of the current government programmes to increase agricultural production and ensure food security as the company is the largest grain user in the country,” IH Securities said. The securities firm said vaccines which Zimba- bwe has begun receiving would boost production as more workers were expected to return to work. Morgan and Co head of research, Batanai Matsi- ka, told The Financial Gazette that the tobacco marketing season would be timely given the anticipated easing or lifting of the current lockdown measures. Matsika said already the government had increased trading hours for business operations, which was an encouraging sign that restrictions would be eased. “This means production levels are going to increase resulting in an increase in the demand for forex. So, the inflows from tobacco will help in terms of foreign currency liquidity,” Matsika said. In a State of the Nation Address recently, Pres- ident Emmerson Mnangagwa indicated that the country was poised for economic growth despite the Covid-19 headwinds. “This pandemic and the constraints, insecurity and anxieties it has brought along will surely end. Let us not despair, Zimbabwe is rising. Together we will cross the finish line and achieve Vision 2030. “Through the rapid implementation of the Nation- al Development Strategy 1, and buoyant agriculture and mining sectors; we remain positive about the prospects of notable economic growth in 2021,” he said. The expected recovery comes as analysts have previously opined that the weakening Zimbabwe dollar and rising inflation were putting at risk the country’s plans to further stabilise the economy. Data released by Zimstats last month showed a mar- ginal rise in inflation. Page 8 | February 25-March 03 2021 The Financial Gazette Leader Page

News Worth Knowing Monetary policy gains should be defended WE were encouraged to learn that the central bank managed to contain quarterly growth in reserve money at below 20 percent in 2020, against a target of 25 percent. This is a laudable achievement because it is a well-documented fact that there is a direct correlation between money supply and inflation. The record hyperinflation seen in Zimbabwe around 2008 was caused by wayward money supply and Gideon Gono, who was then Facebook Inc on Wednesday pledged to invest at least $1 billion in the news industry over the next three years, days central bank governor, has attested to this fact. after a high-profile stand-off with the Australian government over paying news outlets for content. Present day monetary authorities have also admitted that out-of- control money supply is what caused the most recent episode of hyperinflation, which saw ZimStat last year reporting figures upwards of 800 percent. Improving our disaster Kudos to Finance minister Mthuli Ncube, and central bank governor John Mangudya, who have pushed for fiscal consolidation measures that seem to have resulted in the government completely refraining from resorting to the overdraft window at the apex bank. management systems The numbers are telling. The inflation has gone down and the ex- ISASTERS can have massive payment systems with adequate controls. fication. Whenever possible, pre-existing change rate has stabilised. It is a huge win, but one that the govern- impact on countries usually re- Controls should be adapted to meet framework contracts can be used. Posting ment risks losing if the culture of wayward spending, that was typi- Dquiring urgent actions by govern- disaster emergency situations but not all procurement information related to di- cal of the previous administration, rears its ugly head again. ments and related stakeholders and it can weakened. For example authorisations saster management activities on govern- The "new dispensation" has the luxury of blaming a lot of ills on at times be difficult to balance this care- may be delegated to ensure speedy im- ment portals will enhance transparency the administration of former president Robert Mugabe, who left a fully with accountability, transparency plementation during emergency situa- and disclosure to ensure public trust. and integrity. The impact of disasters de- tions. Wherever such ex-ante controls During the disaster management legacy of “imprudence”. The expiration date on this scapegoat is, pends on the strengths and weaknesses of are reduced, they need to be replaced cycle, the government internal audit however, fast approaching and the current government will soon government and country institutions’ sys- by clear, explicit, and credible ex-post function may temporarily reprioritise have to answer for its own record. tems. Covid-19, like many other disasters controls or consideration being given to activities on its annual audit plan to fo- A lot of the Mugabe-era "recklessness" seemed to have been in- has affected, and will continue to affect performing remote audits as close to the cus on conducting disaster audits, with formed by political interests. The temptation of populism is thus, the business environment in many ways. transaction date as possible or conducting minimum time lag and issue short but Travel bans/restrictions, employees real-time audits. Disaster management timely reports for decision makers and probably the biggest test the second republic will face in its quest for working remotely, an increased reliance requires efficient cash management sys- stakeholders to enhance assurance. Such fiscal prudence as Zimbabwe goes to the polls again in just two years. on technology, and economic uncertainty tems throughout the disaster management reports are more useful than long delayed President Emmerson Mnangagwa’s government should be careful have become the reality around the world. cycle. Where a single treasury account is post-ante reports. not to fall into this trap and stick to the script, lest Ncube and Man- These and other hurdles in addition to pre- in place, government can quickly have The country supreme auditing institu- gudya’s toiling goes to waste. senting numerous operational challenges a total picture of cash available at any tion (Office of the Auditor General) needs at government and institutional levels, time. This makes it easy to manage cash to be prepared, adequately capacitated We were alarmed by reports that some elements have been using they also increase financial pressure on throughout the disaster management cy- and ready to respond to disaster. Audit shell companies to plunder the central bank’s currency auctions. It employees, present opportunities to by- cle. of emergency transactions by a govern- is encouraging that the bank has swiftly detected such abuses and is pass systems, and lead to rationalisation Where government cash is in various ment’s supreme audit institution provides lining up corrections. of wrong doing by individual employees. bank accounts, it may be appropriate for assurance on the value for money on Errant behaviour should be nipped in the bud, but it is equally im- All these increase the risk of fraud, treasury to quickly collect, aggregate, and expenditure incurred during emergency waste and abuse in the systems. establish systems to move funds into the operations and helps to identify actions to portant that the government restrains itself from militant regulation, The large number of players and various bank accounts. It may be appro- further strengthen systems for future di- the likes of which has been typical of even the current administra- spread of activities in the three phases of priate to ring-fence donor funds to en- sasters and ensure operational continuity. tion, and has been the cause of many shocks to the economy. the disaster management cycle; pre-disas- hance donor confidence that the funds are Supreme audit institutions need to in- As the authorities consider ways to deal with the abuse of the auc- ter, during-disaster (or emergency) and used for intended purposes and not mixed dependently decide on the nature, scope, tion system, it should not be lost to them that the progress of the post disaster phases present challenges with government funds for ongoing ex- and approach to disaster audits. They which call for extraordinary measures penditures. This contributes to account- should have contingency plans to revise platform lies in more liberalisation, and not heavy handed control. and a whole-of-government and wider ability, transparency and disclosure in the their client universe during the emer- stakeholder approach given the financial use of donated funds while enhancing gency phase of a disaster and be flexible Southern Africa’s Leading Business and Financial Newspaper and other resources availed to fight -di public trust. to change plans as disaster strikes and Established 1969 sasters. The geographical spread of most Procurement is a high risk process unfolds. They may consider classifying Publisher: Modus Media disasters and related activities present their clients in the following categories in further challenges. These require pro- Open Forum response to disaster emergency and plan EDITORIAL MARKETING gramme coordination among the many their audits accordingly: existing clients Associate Editor Advertising Manager stakeholders at play including various significantly affected by the disaster; for with government ministries, state owned en- example ministry of Health and Minis- Senior Assistant Editor Brand Executive Sales & Advertising terprises, law enforcement agents, local try of Finance under Covid-19, existing governments, development partners, civil Sonny Mabheju clients not significantly affected by the Markets Editor Senior Sales Consultant society and the public to avoid duplica- disaster, and new clients created by the tion of assistance while leaving gaps on even in normal situations without a di- disaster and significantly affected by it; Companies Editor Senior Sales Executives needs not attended to. saster. The need for efficient and account- for example stimulus funds created by the Lessons learnt from previous disasters able procurement is even greater during government to help mitigate the impact of Group Digital Editor globally and at country level include that the disaster management cycle particu- the disaster on the economy. Sales Representatives - Harare accountability and transparency systems larly in the emergency and post disaster Supreme audit institutions should may need to be modified particularly phases. Disaster responses may require conduct their audits with maximum inde- Chief Sub Editor during the emergency phase of the di- increased use of single-source procure- pendence and within minimal time lags Sales Representative - Bulawayo Clever Pedzisai: [email protected] saster management cycle in order to get ment with known and trusted suppliers after restoration of normalcy in the post Senior Staff Writer assistance where it is needed with mini- to expedite the procurement process. In disaster phase or consider conducting re- Brand Executive - Events mum delays. However, the accountability such situations, it would be prudent for mote audits with adequate capacity. Real- Staff Writers and transparency systems should not be the ministry of Finance and/or the pro- time audits should be considered during Brand Executive - Subscriptions removed completely. Public financial curement regulator to issue additional the emergency phase as necessary. management systems need to be respon- guidance on how to manage this process. To be able to conduct remote audits, Subscriptions Representatives Farai Mabeza: mabezaf@ﬁngaz.co.zw sive and flexible, while ensuring value An example in Zimbabwe is Circular supreme audit institutions and the gov- for money and minimising fraud, abuse No 1 of 2020; “Procurement of Require- ernment need to have appropriate levels Senior Photographer Editor-In-Chief and waste. There is need to make quick ments to Manage Covid-19 Disease Out- of information technology advancements Guthrie Munyuki: munyukig@ﬁngaz.co.zw responses to ensure that country systems break” issued by the Procurement Regu- and in addition the supreme audit institu- Production Supervisor Managing Director adequately support disaster responses latory Authority of Zimbabwe in March tion needs to keep abreast of the modifi- while maintaining adequate assurance on 2020 in terms of the Public Procurement cations done to the public finance man- Head O ce the credibility of the systems. and Disposal of Public Assets Act. Moni- agement systems and identify potential Editorial, Advertising & Circulation Donor funding is usually an important toring international and domestic markets risk areas. 2nd Floor, Green Bridge South, Eastgate Complex, source of funding particularly in devel- for price comparisons is a useful procure- Disasters like Covid-19 stress test P.O. Box CY 376, Causeway, Harare, Zimbabwe. oping countries. These are better routed ment procedure to prevent or early detect public finance management systems of a Tel: +263-242-781572 Advertising Media Association Website: www. nancialgazette.co.zw Distributed by: ANZ through the country systems ensuring that pricing fraud. To mitigate the risks of country and provide lessons to be learnt all donations, financial and in kind are fraud, it is important to maintain robust to help prepare for future disasters and VOLUNTARY MEDIA COUNCIL OF ZIMBABWE captured and reported upon by govern- audit trails for example in cases where it ensure government systems are resilient e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced news ment. Relevant ministries affected by the may be necessary to do away with some and contribute to country operations con- reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of Zimbabwe at: No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 disaster should collaborate with the min- standard procurement requirements like tinuity. Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz Zimbabwe istry of Finance to ensure that the total ex- bid securities and guarantees. Such devi- n Mabheju is an internation- penditures to be funded are quickly iden- ations will require adequate authorisation al consultant. He writes in his own tified, costed and paid for using credible and documentation with appropriate justi- personal capacity. The Financial Gazette February 25-March 03 2021 | Page 9 Page 10 | February 25-March 03 2021 The Financial Gazette National News Banks cautious about lending

Nelson Gahadza 12,12 percent. Staff Writer Distribution, financial services and mining were advanced 11,84 percent, ESERVE Bank of Zimbabwe 10,89 percent and 9,62 percent respec- (RBZ) governor John Man- tively. Consumptive loans were at 14,75 Rgudya says the banking sector's percent. loans-to-deposits ratio of 39,5 percent During the year under review, the shows that local banks have adopted a banking sector’s loan portfolio quality cautious approach to lending despite a continued to improve as reflected by a de- surge in deposits. cline in the non-performing loans (NPLs) Ideally, according to the RBZ, the ra- to total loans ratio from 1,0 percent as at tio should be 70 percent. June 30, 2020 to 0,3 percent as at Decem- The loan-to-deposits ratio shows a ber 31, 2020, partly reflecting the more bank's ability to cover loan losses and than proportionate growth in total loans. withdrawals by its customers. As at December 31, 2020, the banking If the ratio is too high, it means that sector’s core capital increased 94,08 per- the bank may not have enough liquidity cent to $40,85 billion, from $20,99 bil- to cover any unforeseen fund require- lion as at June 30,2020, mainly attributed ments. to growth in retained earnings, bolstered Conversely, if by revaluation gains the ratio is too low, from foreign ex- the bank may not be Ideally, according change denominated sweating its finan- assets and invest- cial assets enough to the RBZ, the ment properties. to earn interest. The banking Between June loan to deposits sector’s total as- and December de- sets amounted to posits increased by ratio should be 70 $349,59 billion and 114,5 percent to largely comprised $208,9 billion from percent. loans and advances, $97,40 billion. balances with the These were central bank and made up of $125,3 balances with for- billion, being 60 percent in foreign cur- eign institutions, which constituted 20,4 rency and $83,5 billion being 40 percent percent, 16,9 percent and 14,4 percent, in local currency. respectively. “The increase in total deposits was According to Mangudya, all banking mainly attributable to revaluation of for- institutions were profitable, with aggre- eign currency denominated deposits,” gate banking sector profits for the period Mangudya said. of $34,2 billion, an increase from $6,4 Loans and advances more than dou- billion reported in 2019. bled from $37,8 billion in June to $82,4 “The growth in income is largely at- billion as at December 31, 2020, largely tributable to non-interest income which on account of the translation of foreign constituted 79,5 percent of total income,” currency denominated loans. Mangudya said. Loans to productive sectors of the He said non-interest income main- economy constituted 84,8 percent of total ly comprised other non-interest income banking sector loans as at December 31, such as translation gains on foreign cur- 2020. rency denominated assets, revaluation Under the productive sectors, agricul- gains from investment properties as well ture advanced the bulk of loans at 27,97 as fees and commissions. percent, followed by manufacturing’s [email protected]

All banking institutions were profitable in the period under review. February 25-March 03 2021 Page 11 The Financial Gazette Companies&Markets BRIEFS Diaspora remittances reach US$1bln FX auction spurs HE Reserve Bank of Zimbabwe (RBZ) says diaspora remittances amounted to a record US$1 billion in 2020, up T58 percent from 2019. “The increase in diaspora remittances is mainly due to liberalisation of the use of free funds in the country and improved chan- nelling of remittances through formal channels,” RBZ governor dividend payouts John Mangudya said in his 2021 Monetary Policy Statement last week. Combined with remittances by international organisations for Tendai Kamhungira humanitarian assistance, all financial remissions to the southern Senior Staff Writer African country amounted to US$1,7 billion, an increase of 43 percent from 2019. IVIDEND payments to foreign inves- Diaspora remittances for 2020 exceeded the country’s gold tors and capital remittances from disin- and tobacco exports of US$995 million and US$782 million, re- Dvestments out of Zimbabwe increased spectively. 88 percent in 2020 to US$259 million as the Total remittances nearly equalled the country’s platinum group central bank’s weekly currency auctions im- metal exports, which were its biggest foreign currency earner af- proved foreign exchange availability. ter grossing US$1,77 billion. — Staff Writer Foreign investors have previously struggled to repatriate dividends and disinvestments due to foreign currency shortages and the Re- Copper surges above US$9 000 serve Bank of Zimbabwe (RBZ)’s failure to operationalise a Portfolio Investment Fund set ASE metals stormed higher this week, with copper rally- up in 2017 to assist in repatriating the funds — ing above $9 000 a tonne on bets that increased demand with the situation only being rescued by the Bdriven by the recovery from the pandemic will spur a introduction of the foreign currency auction historic deficit, putting the economic bellwether on course for a last June. record run of monthly gains. In the 2021 Monetary Policy Statement Nickel topped $20 000 a tonne. Copper climbed more than (MPS), RBZ governor John Mangudya said three percent and is heading for an unprecedented eleventh disinvestment figures went up by 70 percent monthly rise in February. between 2019 and 2020, from US$17 million Metals are on tear on expectations that post-crisis demand to US$28 million. will outstrip near-term supply. Mangudya also said that the country reg- That may both reinforce speculation about a new commodity istered a 91 percent improvement in dividend super-cycle and stoke concern about rising price pressures as the payouts, which increased from US$121, 2 mil- world economy recovers from the pandemic. lion in 2019 to US$231, 2 million in 2020. The metal’s revival marks a turnaround from earlier in the Foreign investors were previously sceptical month, when copper hit turbulence as investors signalled the of the local investment policies, which barred need for more details about stimulus measures and on concerns them from taking their money out of the coun- about a softening in Chinese demand. – Bloomberg try. In 2018, Zimbabwe’s largest cigarette man- TWITTER this week reached a seven-year high after gaining 33 percent year- ufacturer, British American Tobacco (BAT) to-date. The stock was spurred by the company's decision to ban former US BA resumes Jo’burg-Harare flights failed to remit over US$15 million in divi- president, Donald Trump to avoid “further incitement of violence” following the RITISH Airways (BA) has announced the reopening of book- dends to its offshore shareholder and for pay- insurrection at the US Capitol on January 6. Picture: Financial Times ment of raw materials. ings for daily regional flights between Johannesburg and Ha- But since June 2020 the central bank now Brare. Bookings for the regional route opened on Sunday and allows foreign investors to repatriate 100 per- of doing business, streamlining approvals for tion, the Centre for Education, Innovation, flights will resume on March 28. cent of their proceeds, bring any amount of permits, reducing business licensing fees and Research and Development are intellectual Desmond O’Connor, BA’s head of revenue management said: money into the country, borrow locally and creation of the Zimbabwe Investment Devel- property-based industrialisation opportunities “We are delighted to reopen bookings for our services to Harare as offshore, as well as operate foreign currency opment Agency (ZIDA) — a one-stop shop in line with the Zimbabwe constitutional dic- part of the gradual ramp-up to our schedule. These flights will offer accounts, among other benefits. investment platform. tates of devolution. This entails that industry in more choice for those customers who would like to fly to regional des- In a statement accompanying its results for On the other hand, the government is also Zimbabwe’s provinces will be grown based on tination from South Africa. the half-year to September 2020, South Afri- pushing to establish an innovation and research particular natural advantages,” Murwira said. “We anticipate that the reopening of this route and others in future can sugar producer Tongaat Hulett (Tongaat) centre which is expected to attract science and “The ultimate aim is to enhance the chanc- will be well-received by corporate and leisure travellers. We will soon reported that it had received US$19 million in technology-based investment. es to surpass an upper middle-income econo- reintroduce holiday packages through our tour operating divisions, dividends from its Zimbabwean unit. According to Science and Technology De- my by 2030 and human capital with a culture which will mutually improve regional tourism between the SADC These policies are among other key pro- velopment minister Amon Murwira, the centre of innovation which will be the catalysts for countries.” grammes put in place to lure investment, which will focus on manufacturing technologies, re- development in the nation and will help the Meanwhile, some airlines say they have seen a surge in bookings declined by 23,7 percent from US$52,47 mil- newable energy, telecommunications and food country attract significant science and technol- amid signs that a number of countries will soon come out of lock- lion in 2019 to US$40,06 million last year. processing. ogy-based investment”. down, with vaccination programmes having escalated across the Other initiatives include improving the ease “The expected outcomes of this institu- [email protected] globe. – Staff Writer Page 12 | February 25-March 03 2021 The Financial Gazette Companies & Markets Varun sees growth in Africa Nelson Gahadza and acquisition of assets for value enabled the group to restrict revenue es in the fourth quarter 2020 were Staff Writer added dairy beverages in Zambia. de-growth at 9,5 percent year-on-year significantly lower in comparison to The Pepsi Zimbabwe plant, which for the full year,” he said. the same period in 2019 on account ARUN Beverages' (Varun) was constructed at a cost of US$40 During the period, total sales vol- of better business efficiencies, cost African subsidiaries, which million, was commissioned in June umes declined by 13,7 year-on-year rationalisation strategies and healthy Vinclude Pepsi Zimbabwe, 2018. to 425,3 million cases and organic recovery in international territories,” contributed a combined 19 percent to It produces a wide range of bev- sales volumes declined by 20,8 per- he said. the Indian group’s revenue in 2020, erages including Pepsi, Mirinda and cent primarily because of decline in According to the Indian embassy up from 15 percent in 2019. Mountain Dew. the second quarter 2020, where vol- in Zimbabwe, trade between India In Africa, the company has oper- Ravi Jaipuria, the group’s board umes declined by 46,4 percent due and Zimbabwe literally shrunk in ations in Morocco, Zambia and Zim- chairman, said Varun ended the year to lockdown restrictions imposed by terms of items and volume of trade babwe. on a steady note despite unprecedent- governments. over the last four years. The group’s overall revenue for ed macro-economic challenges. On the profitability front, Jaipuria About 80 to 90 percent of Indian 2020 declined 9,5 percent to Rs64,5 “The spread of the Covid-19 pan- said, the group has been able to large- investor interest is in pharmaceuti- million (US$8,9 million), largely as a demic in early March 2020 caused ly sustain some of the cost-optimis- cals. But in 2017, trade between the result of the Covid-19 pandemic. significant disruptions in our busi- ation measures implemented during two countries reached $210 million, The company said its capital ex- ness operations, particularly during the pandemic that enabled it to report skewed in favour of India. penditure during the year included the seasonally strong period of April steady profitability in the third and There are two significant invest- Rs3,2 million (US$44 168,10) pri- to June quarter. Ravi Jaipuria fourth quarter. ments from India in the form of Pepsi marily towards brownfield expansion “However, a faster-than-antici- in the second half of the year com- “It is also encouraging that even and cooking oil manufacturer Zim- at certain plants in India, Zimbabwe pated recovery across key markets bined with operational efficiencies in a seasonally soft quarter, the loss- gold. [email protected] ART angles for Nampak’s Softex stake Nelson Gahadza Staff Writer

RT Corporation (ART) says it is negotiating a transaction which may see it assume total con- Atrol of its 50 percent-owned joint venture, Softex Tissue Products. Nampak Holdings owns the other 50 percent stake in the company, which manufactures and distributes a wide range of hygiene care products for the industrial and consumer markets in Zimbabwe. “,…if successfully completed, the transaction may have a material impact on the company’s business and share price,” Abisai Chingwecha, the group company secretary said in a statement. ART is a group holding company, with subsidiaries in the manufacturing and retailing of lead-acid batteries, pens, stationery and forestry resource management. It has operations in Zimbabwe and Zambia. The group’s units include Chloride Zimbabwe, Chlo- ride Zambia, Exide Express, Eversharp, Kadoma Paper Mills, National Waste Collection, Softex Zimbabwe and Mutare Estates. ART products are also distributed in Malawi, Mozambique, South Africa, Zambia and other African countries Hunyani Holdings, now Nampak, in 2013 intended to offload its 50 percent shareholding in Softex Tissue Products as part of the group’s rationalisation, a position which it later changed in 2014, after it decided to consider other options. The disposal of Softex was initially expected to have been concluded during the second half of 2014 of the company's financial year. According to ART’s trading update for first quarter to December 31, 2020, volumes at Softex increased by four percent as a result of the improved supply of raw materials and the continued growth of the non-tissue product range. Overall, group revenue grew by 23 percent for the quarter in inflation adjusted terms and 483 percent in historical terms compared to the prior year. “The group continued to operate profitably despite inflationary pressure on margins as input costs increased considerably,” Milton Macheka, ART’s group chief executive said. He added that overall volumes for the quarter increased by 26 percent compared to the same period last year as a result of improved product availability while export earnings increased by seven percent compared to the prior year. The group’s batteries business maintained production volumes following the easing of the restrictions during the period and managed to record a 48 percent increase in sales volumes compared to the prior year. Battery export sales volumes increased by five percent compared to the same period last year. In the same quarter, Chloride Zambia volumes increased by seven percent compared to the same period last year as a result of improved product availability and distribution. The paper divisions, Kadoma Paper Mills and Na- tional Waste Collections, were adversely affected by the Covid-19 pandemic and the measures instituted to contain transmissions by the government. [email protected] The Financial Gazette February 25-March 03 2021 | Page 13 Companies & Markets Financial sector ‘ripe’ for more mergers Omega Ukama holding in ZB Financial Holdings (ZB) dominated by two funeral assurers The central bank last year set new ital injections,” he said. Companies Editor and increased its stake in CBZ Hold- who had a combined market share of US$-benchmarked minimum capital Meanwhile, ZB has said it will ings (CBZ). 80,9 percent, with the other six split- requirements for the banking sector soon finalise the merger of its bank and IMBABWE’S financial sector The state pension fund is now also ting the rest. of between US$20 million and US$30 building society — initially announced is primed for mergers and acqui- considering bids for its shares in First million. in 2014 — to address capitalisation Zsitions in 2021 amid indications Mutual Holdings (FMH) and “strate- “Our research The apex bank then said this was compliance. that a majority of institutions are strug- gic investment” in National Building reveals that there is meant to ensure that banks and deposi- This also comes as the International gling to raise capital, a research firm Society. tory institutions’ holdings are not dom- Monetary Fund (IMF) had warned that has said. “There also appears to be scope for scope for mergers and inated by investments that increase the the “premature” re-introduction of the High inflation in recent years has mergers and acquisitions activity in the acquisition activity in risk of default “and are able to sustain ZWL$ would create several challenges seen a number of institutions’ capital insurance sector,” Morgan & Co said. the sector in 2021 and operating losses while still honouring for the financial sector. bases shrinking in real terms, raising The Insurance and Pensions Com- withdrawals”. “While reported financial sound- solvency and liquidity risk. mission’s (Ipec) latest reports showed this could present In his 2021 monetary policy state- ness indicators suggest banks were “Our research reveals that there that a majority of players in the indus- interesting opportuni- ment last week, reserve bank governor, solvent and liquid at end-2018, risks is scope for mergers and acquisition try have not met minimum regulatory John Mangudya said the sector had put have increased,” the IMF said in a activity in the sector in 2021 and this capital requirements. ties for investors” in place “encouraging” capital preser- 2019 report. could present interesting opportunities Only three out of eight funeral as- vation measures towards compliance “Following the currency conver- for investors,” Morgan & Co said last surers reported capital positions above This trend is common through- with the minimum capital require- sion, institutions with large net open week in a research note. the statutory threshold of $625 million, out the rest of the insurance industry, ments effective December 31, 2021. foreign exchange positions face reduc- As part of a “capital optimisation” as at September 2020. a situation which Morgan & Co says “The banking sector capital raising tions in their capital base,” the Bretton strategy, the National Social Security In addition, the funeral assurance has prompted it to “opine that there is plans are based on organic growth, Woods institution warned. (Nssa) last year sold its majority share- sector’s gross premium written was scope for consolidations in the space”. mergers, consolidations and fresh cap- [email protected] Zim market sustains Tiger Brands Adelaide Moyo Staff Writer

OUTH Africa’s Tiger Brands says firm demand for its products in Zimbabwe has anchored its Sexports business growth. The Tastic rice and Jungle Oats maker currently exports its products to 33 markets in Africa including Mozambique, Zimbabwe, Zambia, Nigeria and Cameroon. “The exports business delivered strong growth, benefiting from increased demand in Zimbabwe and a resumption of sales into Nigeria. Volumes in deciduous fruit were adversely impacted by the ongoing effect of the Covid-19 pandemic on the food services sector in major trading regions,” Tiger Brands said in a trading update. The group’s revenue from continuing operations was up 12,1 percent during the quarter ended De- cember 31, 2020, underpinned by overall price inflation of nine percent and volume growth of 2,6 percent. The firm said the strong start to the year was diluted by a particularly poor performance for the month of January 2021, reducing the overall growth in group revenue from continuing operations for the four months to January 31, 2021 to 9,4 percent, driven mainly by price inflation. Tiger Brands said it expects headline earnings from continuing operations to rise as much as 20 percent in the six months to March 31, 2021. “Although there were no major disruptions to business continuity, some businesses were impacted by inbound supply disruptions. Preventative costs directly attributable to Covid-19 amounted to approximately R26 million (US$1,78 million) for the four months to January 31, 2021. As a precautionary measure, contingency plans have been put in place to mitigate the potential disruption to our internal and external supply chains in the event of an anticipated third wave,” Tiger Brands said. The firm said cumulative volume growth was achieved across many parts of the portfolio during the four months to January 2021, with particularly strong performances in maize, oat-based breakfast offerings (Jungle), rice, snacks and treats and beverages as well as home care, personal care and baby. “However, volume challenges were experienced within bakeries, maize (Ace Instant) and sor- ghum-based breakfast offerings, as well as Grocer- ies and deciduous Fruit (LAF). Volume declines in bread were behind the overall bread market decline, whilst groceries’ volumes were affected by increased competitor activity, inbound supply chain disruptions and poor seasonal demand,” the firm said. In addition to its South African operations, Ti- ger Brands also has direct and indirect interests in international food businesses in Chile, Zimbabwe (National Foods Holdings), Mozambique, Nigeria, Kenya and Cameroon. It is South Africa's largest food company. [email protected] Page 14 | February 25-March 03 2021 The Financial Gazette Companies & Markets RBZ pins hope on Fidelity unbundling Adelaide Moyo ever, the Covid-19 pandemic has be offered to main FPR gold buy- The central bank boss said the Staff Writer slowed down the process. ing agents, and the balance of sev- volatility in gold deliveries to FPR “The unbundling of FPR into two en percent to small scale producers during 2020 is attributed to subdued HE Reserve Bank of Zimba- entities, a gold refinery and a print- through their representative bodies performance by small scale produc- bwe (RBZ) says the ongoing ing company, is also expected to such as the Gold Producers Associa- ers as deliveries from primary pro- Tunbundling of Fidelity Print- enhance gold production given that tion and the Zimbabwe Miners Fed- ducers relatively mirrored that of ers and Refiners (FPR) is expected the producers will be involved di- eration (ZMF). 2019. to enhance gold production at a time rectly in the operations through their The privatisation of FPR comes “Side marketing of the precious official deliveries have been sub- 60 percent shareholding in the gold after lobbying from some players in metal could have contributed to the dued. refining business,” John Mangudya, the mining sector. decline in gold deliveries. In 2020 Gold sales to the country's sole the RBZ governor, said last week in In value terms, gold exports de- small scale producers contributed buyer and exporter fell 31 percent to his 2021 monetary policy statement. clined by six percent from US$1,1 48,89 percent of the total gold de- 19 tonnes last year due to a signifi- Under the unbundling struc- billion in 2019 to US$994,7 million liveries to FPR compared to 63,19 cant drop in deliveries from small- ture, the RBZ will retain 40 percent in 2020. percent in 2019 whereas primary scale miners. shareholding in Fidelity and dispose The apex bank chief said future producers contributed 51,1 percent The central bank announced at of 60 percent shareholding to both efforts to increase gold deliveries to in 2020,” Mangudya said. the end of 2020 that it will unbundle the large scale and small-scale gold FPR also include enhanced capacita- Gold deliveries to FPR plunged and dispose of 60 percent of its stake producers. tion of gold producers, coupled with 60,8 percent in January after heavy in FPR as part of reforms to attract Fifty percent of the sharehold- rigorous monitoring of gold produc- rains that caused mines to collapse private capital into the key industry ing will be offered to primary gold tion and marketing and security to and small-scale miners to scale back player and mining sub-sector, how- producers while three percent will John Mangudya miners. production. [email protected]

ZSE valuations divide opinion Omega Ukama Companies Editor

PINION among local equities analysts as to whether the Zimbabwe Stock Exchange (ZSE) will return Oto fundamentals valuation in 2021 is split, with one side forecasting a return to basics while others see a contin- uation of inflation hedging. In the face of a currency crisis which has seen the country’s inflation rising as high as 700 percent, activity on the local bourse has been driven by hedging as opposed to critical fundamental valuation. “It is our view that the present stability in the economy, fragile as it is, will necessitate a return to fundamental valuations as investors return to basics and interrogate opportunities,” IH Securities said in a note last week. The equities firm said there is a current dislocation in valuations on the ZSE with its own computations, “implying deep discounts”. “Reviewing latest trading updates of consumer facing businesses like Delta, Innscor and Econet; we see a marked improvement in trading volumes albeit off a low base but signalling that consumer spend may be more robust than expected under the circumstances. “We foresee a resilient earnings base in select consumer names… we believe there is a prescient opportunity in under-valued equities,” it said. Mutandani Makuyana, Invictus Securities’ head of research, however, says “a quest for inflation and exchange rate hedge will continue to influence activity ahead of company specific fundamentals”. “Prevailing uncertainty, investor confidence deficit, and continued adverse inflation expectations will prompt investors to seek refuge in equities, with investment strategy naturally inclined towards defensive and blue-chip counters. “On balance, we expect ZSE activity to be influenced largely by exchange rate and inflation outcomes, in 2021,” he told The Financial Gazette last week. On his part, Batanai Matsika, the head of research at Morgan & Co said: “For as long as we are in the triple digits, inflation hedging will remain a priority. “We expect inflation pressures to remain, so inflation hedging will remain priority.” In 2020, Zimbabwe’s inflation peaked at 837,58 percent in July and ended the year at 348,59 percent. There was a marked devaluation in both formal and in- formal rates, with the interbank rate devaluing from its peg of 1:25 to the current auction rate of 1:82. The parallel market, which began the year at around 1:22, ended at about 1:115. The ZSE posted record gains of 1 045,84 percent in 2020, with the bulk of these coming in the latter part of the year. The market followed this up by recovering from early losses in January to gain 35 percent, closing the month $117 billion firmer with a capitalisation of $435 billion. [email protected] The Financial Gazette February 25-March 03 2021 | Page 15 Column Cashless payments in Zimbabwe Blessed Chimbgha Small but important gains Facebook Messenger, WhatsApp, and Crypto wallet adoption It may not seem like much of an advantage, WeChat can reach of millions of users. Blockchain wallet users are predicted to soar ITH limited cash in hand and the Covid-19 pan- but being cashless makes it easy to ward off Cryptocurrencies to 200 million by 2030 globally. demic scare, most people are rushing to cashless borrowers. Another advantage is that payment An interesting growth on transaction vol- Hardware and in-store interfaces Wtransactions. Cashless transactions bring in bet- can be done in exact amounts without worrying umes in Zimbabwe. Square, Stripe, and Clover are driving new ter transparency, scalability and accountability. The new about not having change or getting it back from mobile processing integrations across developed move compels more merchants to accept payments in the shopkeepers. markets. With the level of digital adoption in digital form for services and goods. Introduction cashless The future of cashless payments Zimbabwe, I will not be surprised to use these transaction economy doesn't mean shortage of cash rather As transactions rise, a number of other tech- channels to pay for my new golf driver at the it indicates a culture of people processing transactions in nological innovations could be instrumental to Golf shop. the digital form. In today’s economies, money moves elec- shaping the evolution of the digital payments The multi-million dollar digital payments tronically. industry: ecosystem in Zimbabwe is facing a notable tran- Modes of cashless transactions Peer-to-peer payments sition, catalysed by a wave of advancements and Online Transfer Banks in Zimbabwe and fintech companies disruption. As the industry continues to widen its This services is normally offered through the use of In- alongside the support from Visa and Master- Biometric payments reach, consumers and investors alike can benefit ternet banking facilities from banks. Online transfer using card are investing heavily into P2P partnerships. Smartphone biometric security features from the shift towards a cashless economy. EFT or RTGS are comparatively faster especially as they These payments allow the transfer of funds be- could spur traction across digital payments in the use the STP (Straight through Processing) channel. Online tween two parties using their individual banking consumer payment space. ●Chimbgha is the chairperson of the Elec- transfer can be done from virtually anywhere using internet accounts or credit cards through an online or Facial recognition tronic Payments Association of Zimbabwe facility. Some of the classic use cases for internet banking mobile app. May soon replace QR codes across retail, and the head Cards and eBanking Products that I have experienced is setting up a large corporate on Messaging-app payments transport, and airports by 2030. for Ecobank Zimbabwe Limited. Internet banking and the executives being able to process and approve transactions whilst they are thousands of ki- lometres apart using internet banking. The same signing mandate that we hold in the branch can easily be replicated on setting up internet banking profiles. Credit Card, Prepaid Card or Debit Card Credit card or debit card are very popular cashless payment method in Zimbabwe. The ever growing population of POS terminals in the market increase the places where customers can use their card. Being a digital leader for a number of years now, I am a strong believer of the fact that, “a product is as good as the number of places where you can use it!” The increase in POS terminal in Zimbabwe opened up new avenues for card usage. Banks in Zimbabwe have rental POS terminals that we used to rent out for events e.g. weddings and parties, well before Covid-19 restrictions. E-Wallet We use e-Wallets to purchase products starting from grocery to airline tickets. For a customer to use E-Wallet they require a smart phone with active internet connection. The most popular example or E-Wallet is PayPal. After registering for E-Wallet one needs to link their credit card or debit card with their E-Wallet ID. The E-Wal- let can be used for fund transfer or online shopping. It is my personal choice for online payments and one of simplest cashless method. Mobile Wallet This is arguably the most popular digital payment channel in Zimbabwe. Banking customers have been given the options to move funds from their bank account to Mobile wallets and vice versa. This introduced a very comfortable level of convenience to customers. Customers can down- load mobile wallet app from play stores or use the USSD channel to access Mobile wallets. Virtual Card A number of banks in Zimbabwe have introduced or are working on introducing virtual cards. Virtual cards are one of the safer and smart ways to make subscription payments or once off online payment. We have all visited some online shops before where we find a number of interesting products to buy but we do not feel comfortable to provide our Debit card detail to make payments. A once off virtual card comes in handy for such payments. Advantages of cashless transactions There are several reasons why the Government and the financial services sector is keen on promoting cashless transaction economy. Besides convenience, digital transaction gives more scope for recording of transactions and in this way it is a first step against the spread of unaccounted money or black money. Secondly, the problem of coun- terfeit notes can also be avoided when payment is settled digitally. Convenience The ease of conducting financial transactions is probably the biggest motivator to go digital. One no longer needs to carry wads of cash or even queue up for ATM withdrawals. It is also a safer and easier spending option when one is travelling. Easy tracking of spend If all transactions are on record, it will be very easy for people to keep track of their spending. If one is given a US$100 note today and asked how they spent that money three months later, they are unlikely to recall how each dollar was spent. However, if the same amount is loaded in a bank card and spent and one is asked to account for it three years later, one would easily view the online statement for the card and articulate how you spent every dollar of it. Budget discipline The written record will help consumers keep tabs on your spending and this will result in better budgeting. Var- ious apps and tools will help people analyse their spending patterns and throw up good insights over a couple of years. Lower risk If a card is stolen, it is easy to block it or to block mobile wallet remotely, but it is nearly impossible to get cash back once stolen. This is especially true while travelling, especially abroad, where loss of cash can cause great in- convenience. Page 16 | February 25-March 3 2021 The Financial Gazette Column Independent contracting in the new normal ITH the advent of the new nor- differentiates independent contractors from the remuneration, but other jurisdictions have gone mal, where systems and the employees. further to look at other considerations to clearly lay W way of working are constantly There is a great need to establish the bare the distinction between an employee and an in- changing, most individuals are opting for business relationship that exists between dependent contractor. self-employment so as to service a larger your business and the person providing the The statute and common law then serve as refer- number of clientele as well as pay lesser service. ences in determining the difference between the two. tax. The existence of a contract in itself is The statutory tests make use of the Income Tax Act This is particularly for services such as not enough to conclude the nature of the and the Labour Act. graphic designing, Information and Tech- relationship. The common law tests encompasses the various nology (IT), bookkeeping and accounting, The substance over form principle or tests that have been established by the courts. only to mention a few. doctrine allows the Zimbabwe Revenue The tests adapted by the courts to decide if an For companies on the other hand, the at- Authority to ignore the legal form and ex- individual has the status of an employee include the traction of hiring an independent contractor amine its actual substance, with the goal of Control tests, organisation test, Multiple factor test is the reduced costs in: expenses, payroll, Tax Matters preventing an artificial structure from be- and Mutuality obligation test. benefits, and other overheads. with ing used to avoid paying taxes. The control test refers to the level of control an Lower overheads mean less stress to Marvellous Tapera Misclassifying an employee as an in- employer has over his\her employees. This control bring in new business revenue to cover dependent contractor can have serious tax arises from the division and enforcements of jobs, costs. complying with the country's tax system. ramifications. time and work time. One of the most consistently challeng- There are many nuances and exceptions In defining an employee, the Income The test was adopted from the definition given by ing aspects of contracting in Zimbabwe is in the laws, tests and definitions on what Tax Act heavily relies on the quantum of Lordship Bramwell B in the case of Yewens v Noake. In the case of Walker v Crystal Palace, a football player as a skilled person was given more freedom as to how to perform his job, but yet he was under the control of his master as he was under the direction of the football club and direction of his captain all the times. Also his method of play, discipline and training were all controlled under his master and hence, he was an employee. There was some weakness in this test as it has become less effective because in the modern industrial set up, there are several specialists who monopolise a particular skill and the degree of control has become loose. The degree of control over employees has become lessened and this test may be found to be unsuitable in some instances. The organisation test, tests whether employees are an essential part of the organisation. If the employee is integrated full into the employer’s business then he is an employee or is under the contract of service. Lord Denning in the case of Jordon & Harrison v MacDonald & Evans suggested that an individual is an employee if his work is an integral part of business even though the employer has no direct control over his employee. The multiple factor tests also known as the dominance test looks at the entire situation and much wider than the control and integration test. In the case of Short v Henderson (1946), four criteria were used to ascertain whether a worker is an employee or otherwise. They are the power of choice, wages or remuneration, the right of suspension and dismissal and also right to control. In the case of Mirren v Swinton Pendelbury Bor- ough Council ( 1965) the factors looked into by the courts included number of working hours, the normal working hours, geographical limitation of work, the skills and also the perception of the society as re- gards to the methods of appointment and termination and types of wages. There cannot be a contract of employment if there are no mutual obligations. Once there is an obligation by the employee she or he is entitled to pay, holiday pay and sick leave. In the case of Carmicheal v National Power Plc, there was no mutuality of obligation on the casual workers who were power station tour guides. When they were offered work, they were asked to sign a statement stating that they were offered an offer of employment as casual as required. The court held that this means they are not employees but are independent contractors owing to their position as casual as required. In conclusion, the classification of workers remains a complicated subject. While the consideration of tax consequences of the classification are an integral part in decision of the business, there are other legal considerations that have to be taken into account in deciding whether to classify a worker is an independent contractor or an employee. Businesses are advised to approach their legal counsels and tax consultants in making such decisions especially in the advent of social distance arising from effects of Covid 19 pandemic. ● Tapera is the founder of Tax Matrix (Pvt) Ltd and the chief executive of Matrix Tax School. He writes in his personal capacity. Meanwhile, Ma- trix Tax School will be hosting its “Managing VAT Compliance-Practical Considerations” Webinar Seminar on March 17, 2021. The Financial Gazette February 25-March 3 2021 | Page 17 Column Applying Newton’s first law of motion to Zim economics HE economics discipline involves studying economic or business cycles. An economic cycle is defined as Tthe fluctuation of the economy between periods of expansion (growth) and contraction (recessions). It is usually measured with the Gross Domestic Prod- uct (GDP) of a country. Generally, an economic cycle goes through four stages namely expansion, peak, contraction and trough. Once the cycle is complete, it continues from the start again. There is no definite rule that exists in determining how long each phase lasts. In fact, expansion phases can last many years before hitting a peak. However, a healthy economy will always go through a contraction phase occasionally. During the expansion phase, an economy will experience strong growth and interest rates will generally be lower but will begin to increase as the expansion matures. The overall production level increases and inflation rates begin to rise as the expansion matures. The peak is reached when the growth of an economy reaches a plateau or maximum rate. It is usually characterised by higher inflation that needs to be corrected. The correction then occurs through the contraction phase, wherein the growth of the economy slows, unemployment rates rise, and inflation tapers off. It continues Morgan & Co Research GDP growth estimates. until the cycle reaches a trough. The trough is characterised as a low point in the economy from which it can re-enter an expansionary phase. Looking at the Zimbabwean economy, we note that the country has experienced recessions in 2019 and 2020, with GDP estimated to have contracted by 6 percent and 4,1 percent, respectively (ministry of Finance sstimate). The economic contraction has been a result of output losses in key sectors such as agriculture, mining, manufacturing and tourism.

Economics & Market Intelligence with BATANAI MATSIKA

The government estimates that the economy will rebound by 7,4 percent in 2021 on the back of recovery in agriculture. That said, the big question is whether the 7,4 percent growth estimate is realistic and if we should expect a V-shaped economic recovery in 2021. The 2019 and 2020 recession also signifies the importance of base effects — namely the tendency for growth to be stronger when the starting level of GDP is unusually depressed. In the depth of the crisis, many doubts were expressed about the capacity of economic activity to revert quickly back towards pre-pandemic levels after lockdown restrictions were eased. This debate was couched in terms of L ver- sus V-shaped recovery paths. In the event there is a much sharper-than-expected pick- up following the loosening of restrictions after February 2021, a full V- shaped recovery (implying immediate rever- sion to pre-crisis levels) appears to be a bit elusive. We estimate GDP growth of 3,1 percent in 2021 and five percent in 2022. In our view, an L-shaped economic recovery is most likely to play out in 2021. While a low-base effect points to an economic rebound of some sort in 2021, there are also lessons to be taken from Isaac Newton’s first law of motion. It states that if a body is at rest or moving at a constant speed in a straight line, it will remain at rest or keep moving in a straight line at constant speed unless it is acted upon by a force. This is also known as the law of inertia. This means that if the Zimbabwean economy was on a free-fall in 2019 and 2020, then there should be an external force that is required to change the trajectory. It would therefore, make sense for economists to look for triggers or factors that can change the direction of the cycle. In our view, key triggers could include rapid Covid-19 vaccination programmes across the world leading to a return to normalcy, a surge in foreign direct investment, speedy recovery of international tourist arrivals and changes in international relations (removal of economic sanctions). That said, a key highlight is that businesses operating in Zimbabwe will have to be nimble enough and maintain enough liquidity to survive periods of low sales in 2021. As Morgan & Co Research, we have identified 3 sectors to watch this year: Agriculture, Mining and Financial Ser- vices. We also maintain that investors on our market should seek exposure in companies that have defensive business models, cash-generative and export-oriented. ● Matsika is head of research at Morgan & Co, and founder of piggybankadvisor.com. He can be reached on +263 78 358 4745 or [email protected] / bata- [email protected] Page 18 | February 25-March 3 2021 The Financial Gazette Column/Companies The profile of an HR executive ne of the key roles any organisation credibility such that they become a "go-to" and can use these to present credible information would need is that of a Human sounding board for all things that matter to 14.excellent presentation skills OResources executive. If you fill this the business. 15.excellent communicator, capable of customising role with the wrong person many negative 8.Capable of building a psychologically all communications to suit the needs of each audience. things will happen in your organisation. safe organisation where people can raise 16.An honest individual with whom everyone in To hire the best HR executive, you need issues, problems, concerns, including the organisation can trust and share information. to understand what profile is required of differing with authority without censure. 17.Capable of handling and diffusing conflict such a person. I outline below the profile 9.Capable of building a memorable among different interest groups within the that is required of an HR executive. employee experience within the organisation. organisation. 1.Understands the business and how it 10.Able to build a reward system that 18.excellent report writing skills that enable them creates value for its stakeholders. HR Perspective natures value sharing. to present written material in a way that everyone 2.Capable of building sustainable with 11.Capable of developing talent using understands. relationships with key stakeholders. scientifically proven approaches for Nguwi is an Occupational Psychologist, Data 3.Able to positively influence those not Memory Nguwi identifying talent and for evaluating the Scientist, Speaker, & Managing Consultant- directly in their line of command. impact of talent interventions. Industrial Psychology Consultants (Pvt) Ltd a 4.Able to put together solid credible how HR can help grow these sustainably. 12.Capable of being a two-way bridge management and human resources consulting evidence to support their own decisions. 6.Able to intervene at various stages of between employees and the leadership of firm.Email:[email protected] or visit 5.A good understanding of profit and the business value chain. the organisation. our websites https://www.thehumancapitalhub. loss, income statement, balance sheet, and 7.Capable of building enough internal 13. Someone who understands numbers com/ and www.ipcconsultants.com

Maz launches leadership development programme

He Marketers Association of Zimbabwe (Maz) is introducing the first ever Marketing TLeadership Development Programme, (MLDP) in the country. The programme is aimed at bridging the gap between theory and practise, at the same time developing future marketing leaders. MLDP is a targeted at young marketers and recent graduates, marketing assistants, post graduate marketing students, brand managers, entrepreneurs in growing businesses, consultants, agency directors, leaders from other disciplines seeking to inform their leadership with a strategic marketing perspective. MLDP is also for those with, or anticipating, significant strategic leadership responsibility. The courses explored will be relevant to those in any size or maturity of organisation and any category, with case studies tailored for practical application. The one-year programme is set to commence in March 2021 and end in March 2022. enia Zimunya, Maz head operations and marketing manager said the programme presents an exciting opportunity for young marketers to develop both their marketing and leadership skills mainly through practical work scenarios. “This programme is customised and has tailored curriculum that is focussed on enhancing the abilities of students and those who are still at the early stages of their marketing career," she said. The programme allows individuals to migrate into high marketing professional status through some practical experiences in marketing leadership, customer experience, marketing strategy, marketing financial analytics, media, communication and digital transformation,” said Zimunya. She said the MLDP presents a platform for students to be equipped with latest marketing techniques, tools and strategies as well as leadership approaches that addresses the current business realities and challenges. “It is designed to transform the marketing discipline from a mere management skill to building a marketing leader who is able to fully address business issues and influence decisions at the top,” she said. “In this digital age, Maz’s seeks to listen to the young marketer’s ambitions and goals and bring along a programme that capacitate and empowers them with practical skills that employers are looking for,” she added. Maz has over the past years been offering relevant programmes that have brought a new perspective of learning to both their professional and student membership. The association has often introduced practical, forward thinking courses for beginners and those that wish to advance their marketing careers. The first and real-life changing MLDP, has taken lead in bridging the gap between postgraduates and those under three years’ experience in a marketing job. It build a new refreshed marketer with leadership and some practical experiences of key marketing concepts just within a year. "We have partnered with industry experts who will provide practical insights that will bridge the gap with theory. This learning approach will bring value to the curriculum and to the students in shaping their thinking and decision making." Further these industry experts have been involved in coaching and mentoring, a process that has moulded excellent industry market leaders. — Staff Writer The Financial Gazette February 25-March 3 2021 | Page 19 Companies & Markets Biovac to make vaccines for underserved Africa

hE Biovac Institute, a South African Few countries on the continent were “With support from government and tech-transfer vaccine company, is formulating ex- able to secure supplies, while several West- partners we believe we can raise the funds to add Tpansion plans aimed at helping Af- ern nations pre-ordered more than enough what we need, using the foundation that we have rica become more self-sufficient when it to cover their populations. built.” comes to accessing the immunising shots. Biovac, which is based in Cape Town, Biovac will consider taking out loans to finance The coronavirus outbreak has highlight- last year began making the first vaccines in expansion, he said. ed the continent’s reliance on imported South Africa since the mid-1990s, a pedi- It can currently manufacture about 20 to 30 mil- vaccines, with limited shot-making facili- atric shot made under license from Sanofi lion doses annually, while Aspen’s facility can pro- ties only present in South Africa, Senegal Pasteur Ltd. duce as many as 300 million. and Egypt. It will start producing pneumococcal Biovac has so-called fill-finish capability, which Biovac, which is 47,5 percent state- vaccines under license from Pfizer Inc. by means it can fill vaccine vials and package them. owned, is in talks to produce a Covid-19 the fourth quarter. Makhoana said it now wants to start producing the vaccine at its facilities, and Aspen Phar- The outbreak has highlighted the Once it manages to sign an agreement to raw materials used to make the shots. macare holdings Ltd. has agreed to make continent’s reliance on imported vaccines. make a coronavirus shot, production could It would need a bigger market than the South Af- Covid-19 shots on behalf of Johnson & start within 12 months, Makhoana said. rican one to justify the investment, and could model Johnson at a facility in the southern city of “You cannot rely on importing vaccines he declined to identify which vaccine itself on vaccine makers in India and China. Port Elizabeth. as a country, you need to be self-sufficient.” developer Biovac is negotiating with. “We want to build capacity to sell beyond South “It’s important to deal with the current While countries from the US to the UK “We have the capability to develop and Africa to build economies of scale,” he said. pandemic, but we have to build capability and China were among the first nations to manufacture bacterial vaccines, but we To supply other parts of Africa, conversations for the future so that we won’t be in a sim- start inoculating their populations, Africa need to build capability of developing viral with programmes such as Covax, an initiative to ilar situation in ten years,” Morena Makho- has barely started — it accounts for less vaccines, that will give South Africa a sol- distribute Covid-19 vaccines equitably, and GAVI, ana, Biovac’s chief executive officer, said than 90 000 of the 205 million vaccines ad- id footing to deal with future pandemics,” the global vaccine alliance, will be needed, he said. in an interview last week. ministered so far. said Makhoana. — Bloomberg Afreximbank boss leads JUA team FRICAN Export Import Bank pres- Aident Benedict Oramah, pictured, is to lead the panel of 12 judges for the US$2 million JUA Fund (JUA) — a venture initiative to help regional entrepreneurs to kick-start or expand their businesses. This comes as 700-plus candidates from 22 countries have applied to the endowment, which was launched in November last year, and qualifying ideas will be evaluated at a March 1 to 5 event. “Africa is the second most populous continent, but its contribution to global manufacturing… did not even reach two percent in 2020! For this… to change, it is important that Africa industrialise,” JNC Consulting Group chairperson and one of the judges Jeanica Onema said, adding “growth and development will not come from donors, and the public sector, whose role is to put in place policies for the private sector to flourish”. “We need Africans… to encourage local entrepreneurship through coaching, mentoring and… rewarding the best projects. This will create a culture of entrepreneurship. By initiating… JUA, Adam Molai (has) confirmed his trans- formational leadership to change the paradigm..,” she said. Brad Magrath, the Zoona founder and one of Zambia’s leading money transfer platforms, said: “I am honoured to be on the judging panel… as I want to pass on the experience I have gained as an entrepreneur. ...when you take on investors and partners, it is not about how much money you get… (but) the quality and integrity of the person sitting across the table… Your business will thrive or die on the… people you surround yourself with.” The other adjudicators, include JUA coordinator and Mota-Engil Construction director Mhanisi Malaba, fund representative and investment advisor Vera Baker, Cher- yl Kisunzu from co-sponsors SIMBA Global StartUps, Afreximbank head of advisory services and capital markets Ibrahim Sagna, Andrew Lowe from Tuareg Energy, PanAfrican Capital Holdings chief executive Chris Oshiafi and Molai himself “Without entrepreneurs, economies cannot grow and countries cannot advance. African entrepreneurs unfortu- nately do not get the support they need to thrive for a myri- ad of reasons. Yet Africa is full of enterprising people,” the Pacific Cigarette Company chairman said. “Wherever there is adversity, there is opportunity. Afri- ca is rife with adversity, wherever you turn business prospects are in abundance. "Entrepreneurs provide solutions to societal challenges, whilst creating space for the advancement of their communities. I feel that Africa is… full of… opportunity than you would find elsewhere. I want to do everything in my power to ensure that this potential is cultivated and unleashed,” Molai said. The African industrialist, who has successfully launched several global enterprises and had US$125 million worth of assets under his TRT Investments’ management in 2019, launched JUA — which means sunrise in KiSwahili — to inspire the continent’s entrepreneurs. And today, Molai’s interests span the energy, beverages manufacturing, financial services and property development as well as transport and logistics sectors. — CAJ Page 20 | February 25-March 3 2021 The Financial Gazette Column Chatbots revolutionise customer experiences HE future is here and Artifi- impact of Covid-19 on the Labour seamless round the clock service to sider factoring chatbots into their count and can easily be programmed cial Intelligence (AI) is tak- market. The future of work has been thousands of clients simultaneously systems. to respond to FAQs promptly. Ting the world by storm! Tech imminent but how prepared was the which works well in this globali- Both private and public sector WhatsApp also offers the same savvy institutions have already in- world, particularly Zimbabwe, for sation era, where the borders have organisation can adopt the use of AI services for established and upcom- corporated and optimised chatbots, the unexpected plunge? been collapsed and e-commerce is and transform their interactions with ing businesses and these chatbots taking the digital customer experi- The diffusion of the chatbots taking centre stage. customers. attend to the customer before the ence to a whole new level. has been mainly within the banking Some will argue that the human Imagine the Passport Office us- human takes over. When the future of work narra- sector where names such as Batsie, touch is incomparable and irreplace- ing a chatbot to respond to all fre- Whereas an organisation would tive began to take shape globally, Chido, Ally and recently Stan have able and all customer touch points quently asked questions (FAQs) and employ customer care officers and the general assumption was that the been introduced to the market as should have a human face, but a re- people being able to get information contact centre agency, chatbots have process would be gradual and there cutting edge solutions to customer about when passports will be out or proven to be a cost cutting measure. would be enough time to prepare service. even just to check if their offices are Most companies are financial- for the 4th industrial revolution but The chatbots have been chris- open during the lockdown. ly constrained due to the Covid-19 alas, Covid-19 came making it inev- tened with names so that humans Imagine reporting a burst pipe to pandemic and the prevailing eco- itable for companies not to enhance can relate with and have a sense of the local authority or checking your nomic challenges resulting in low their digital systems. security when dealing with them. bills flawlessly anytime of the day. remuneration and or delayed pay- The contact centre wave that once Chatbots have been known to Constance Makoni-Thodhlana Chatbots have become a necessi- ment of salaries. gripped the market and created jobs mimic intelligent conversations in ty that organisations that are serious AI can provide the much needed for thousands has been side swiped a way similar to humans, moreover about customer experience cannot relief to some of these companies. by chatbots which are proving to be they engage in conversations which cent study revealed that 40 percent afford to ignore. The importance of chatbots can more efficient and cost effective. resemble real-life interactions as of customers do not care whether a Most decision makers will em- never be over emphasised particu- In 2013, the International Labour they converse using natural lan- human or a chatbot responds to their brace AI on the pretext of cost ver- larly at a time when the world con- Organisation initiated the future of guage just like human beings. questions as what is important is sus return on investment. tinues to grapple with the Covid-19 work global dialogue with the aim Customer service is among jobs they have been responded to. What are the costs involved in pandemic. of gaining a better understanding of that have been identified as inher- Customers want to have their is- setting up a chatbot? Human interaction has signifi- the drivers of the current unprece- ently stressful as one often has to sues handled promptly and satisfac- Some organisations purchase AI cantly minimised and digital plat- dented change such as technological deal with complex issues and rude torily with minimal effort involved. but others develop their own and forms have taken over. innovations, the changes in the or- customers. Does my organisation really need customise them to suit their exact Chatbots are a game changer and ganisation or work and production, The digital space has made the a chatbot? You have been asking needs. organisations that haven’t deployed globalisation among other issues. situation much better for customer yourself this question as dealing Other organisations are taking them might as well start the conver- The World Economic Forum is service officers but the worst night- with customers particularly during advantage of inbuilt chatbots that sation in their boardrooms now be- also spearheading the preparing mare is that customers have grown this pandemic is increasingly become with applications such as cause the future is here! for the future of work programme very impatient and expect to be re- coming a daunting task albeit being Facebook. whose objective is to promote a sponded to in the split of a second. done within the confines of the dig- Such chatbots also augment the  Makoni-Thodhlana is a mar- positive and proactive approach to While the average human can ital sphere. human touch and transform the ser- keting and communications pro- navigating the future employment handle one customer at a time and Any organisation that provides vice experience for most businesses. fessional. She is a member of the and skills landscape, new technol- deserves some health breaks in services and has to respond to cus- The architecture of the Facebook Marketers Association of Zimba- ogies, demographic shifts and the between work, chatbots provide tomer queries should seriously con- chatbot is that it exists within the ac- bwe.

For the week ending 24 February 2021

For the week ending 06 January 2020 The Financial Gazette February 25-March 03 2021 | Page 21 Column Hard talk: Leadership lessons from football vErything rises and falls on lead- primes his team for a streak of ruthlessness employees. seeing and then rally the team towards the ership. What leaders do around their in the upcoming matches. if you are one of Manchester United's Portuguese mid- goal. E followers determines the future of the strikers in your organisation, it is time fielder, Fernandes has been in sparkling the best strategy to fight and win on the organisations. results do not come on a sil- to take stock and score goals. form and has been scoring goals for fun. market is to be aggressively be present in ver platter. they come through leadership. yes, there is need to score them and do so Equally important, Edinson Cavani sends such markets with your own products. Leaders get results through people, ruthlessly. it is time messages to his team- in any cutthroat competitive environ- hence, the often-heard dictum that people to study the market, mates over how to cre- ment, businesses lose money due to lack are the greatest resources which an organ- the routes, the com- ate a winning mentality. of aggressiveness, entering the market with isation can have. petitor and come Story telling can change highly priced products, poor execution, there could be state-of-the-art machin- up with a winning the way the team envi- slow decision (wait and see attitude), low ery but without people, machines are not formula. the entire sions the current and the working capital and unfair competition on likely to do anything even in highly-mech- world is still under future. Organisations the market just like in football. anised places. lockdown but with or Philemon Chitagu need such people. this is Some of the factors listed above are in- in preparation for a football match, Man- without covid, results powerful to ensure that ternal while others are external. research chester United Football Club boss Ole gun- should come through. strong, aggressive, and has shown that 85 percent of the organisa- nar Solskjaer has ordered his star strikers Solskjaer said: “We are the highest scor- confident teams are developed. it is a mat- tion’s challenges are internal while 15 per- to ease the goalscoring burden on top-shot ing team in the Premier League, so that's ter of identifying opportunities and utilise cent are external. Bruno Fernandes. something to build on. them. if therefore, the organisation focuses on Fernandes has weighed in with 21 goals “But it's fair to say that Mason, Anthony i have heard organisations saying that achieving 85 percent of the goals, surely it in all competitions this season — includ- and Marcus — the forwards who scored so during the first quarter business will be will be profitable. many goals last season — haven't really hit slow. is this not a myth? is this not in the Organisations need to look on the posi- In a razor wire those same numbers this time," he added. team’s mentality? tive and start scoring goals and the results environment, Most organisations are in same predic- What needs to be done to unlock the will continue to improve. ament. potential coming out of depressed environ- in a razor wire environment, leaders leaders should rally their performance has gone down as ments? During the first lockdown at the end should rally their teams towards winning their teams towards compared to prior year and it is the right of March last year, most organisations’ per- every opportunity coming their way. the time to look at what happened-good or bad, formance was affected. more you fail to score the more the chances winning every take key lessons and move on. At times the same is happening this year due to of losing the game on the market. opportunity coming organisations spend a lot of time quizzing continued lockdown. is this not a matter the current environment and this pan- their way. The more each other over spilt milk — it is done and taking key lessons from the scattering ex- demic influence the consistency of teams dusted. perience/lockdowns and unlock the winning and leaders have responsibilities to take the you fail to score the it is not necessary to cry over spilt milk, formula? organisation to the promised land. more the chances of but it is important to take key lessons from Assuming that we will continue to oper- the team must consistently produce su- what happened-good or bad and move on. ate under shattering environment or another perior results. Leaders play a critical role losing the game on Leaders need to breathe confidence in more deadly disaster strikes, are organisa- in winning on the market and what leaders the market. their teams. the team needs to know that tions going to experience losses during the say during pep talk defines the future of the there is life at the end of the tunnel. first quarter? organisation. Organisations should strive ing 14 in the Premier League where Unit- negative talk drains the team’s ener- is this something that we can continue towards continuous improvement. ed are second on the log standings.Marcus gy. Pause, reflect, and move on. Develop to celebrate as if it is a seasonal business? they need to treat their everyday opera- rashford has hit 17, while Anthony Martial a never say die attitude. Even if the envi- how do we unlock the winning mentality tions as work in progress. and Mason greenwood have just seven and ronment is very difficult, just move on and and unlock value for the business? in conclusion, everything rises and falls four, respectively. focus on what matters most. the reason for the tone of the leader during abnormal on leadership. Solskjaer has told his front three that it infusing talent is to create an environment environments erases all grains of doubt. n Chitagu is the current IPMZ Presi- is now time to step up to the plate, as he which guarantees psychological safety for the leader needs to see what the team is not dent and writes in his own capacity. Page 22 | February 25-March 03 2021 The Financial Gazette Motoring Suzuki Vitara Brezza GLX Well-equipped for the money, but …

TOP GEAR with Richard Wiley

NYONE familiar with the Su- zuki Vitara may well be sur- Aprised by the compact dimensions of the newly introduced Brezza model. The reality is that Suzuki is trading on the brand cachet of the Vi- tara name as the Brezza is not strictly a Vitara at all, being based on the C platform that underpins the S-Cross. Also, it’s relevant to point out that the Brezza was wholly designed and engineered in India and that it fi rst saw the light of day in 2016. Whatever its origins, the Brezza has aged relatively well as its pleasingly proportioned SUV orientated body- work still telegraphs. Its wheelbase and track precisely mirror that of the S-Cross but the Indian engineers had to do some platform tweaking to get the overall length down from 4 300mm to 3 995mm, a fi gure deliberately select- ed in order to take advantage of an In- dia-specifi c excise tax break applicable below to vehicles below 4 000mm. That didn’t stop the engineers from adding height in place of length which is why I struggled to clean the centre of the roof that stands at 1 640mm. The end result of all this massaging is Smart alloys and lots of shiny bits for GLX.model. a cabin that offers surprising fore and aft proportions in relation to the area of real estate occupied but be aware that limited width in the rear means there’s decent space for two adults only. So now you know the real origins of the Brezza which gives Suzuki SA a weapon to fi ght with in the compact SUV segment. Sure, it’s late to the par- ty, something Suzuki has been eager to mask behind a slick, fun-orientated marketing campaign clearly intended to appeal to aspirational young families who might fi nd something like the Ford EcoSport to be more suited to the blue rinse brigade! I guess one of your fi rst questions will be about what motivates the Brez- za, whether in GL or smarter GLX trim as boasted by the test unit. The answer is a normally aspirated 77kW/138Nm 1.5 litre injected four that has served Kneeroom is surprisingly good in the rear. Heavily bolstered seats are a feature of the Brezza. under the bonnets of numerous Suzu- kis, not least the Jimny which has had to be withdrawn (in passenger confi g smooth take offs and seamless shifts. but the fact that this is a practical, rel- tailgate suggests that Suzuki has not instrument displays, a comprehensive as opposed to cargo confi g) in Europe The ABS/EBD-equipped brakes also atively high-riding SUV can never be been overly generous in applying sound fuel consumption read out, auto wipers, because this engine’s CO2 emissions of proved to be pleasing, arresting speed totally disguised. damping materials but having said that, cruise control, cooled cubby hole, two around 154g/km decimated the targeted with ease and with a perfectly weighted The unusually conservative “60 pro- note that the unladen mass of 1115kg airbags (4-star NCAP safety rating) and corporate average fi gure of 95g/km. pedal that facilitates feathered stops. fi le” of the 215/16 tyres mounted on places this model in the middleweight ISOFIX mountings plus more. Such a high CO2 fi gure is apparent- It’s almost self-obvious that cruising smart alloys wheels logically has ben- division whereas most Suzis compete in Before I depart and allow you to ly of no great concern in RSA so let’s at the national limit requires around 50 efi ts in terms of ride comfort. the lightweight division. digest the contents of this report, I feel concentrate instead on how this small percent more revs than a smaller dis- Doubtless the Brezza will spend Access to the interior is gained via compelled to comment on an issue that displacement, naturally aspirated mill placement turbo would demand. That much of its life in and around urban a keyless entry/start system with early is common to most Suzukis and most goes about motivating the Vitara Brez- equates to around 3 300 rpm, and with centres when the powered steering sys- impressions fashioned by acres of rather especially relevant to the Brezza — za at sea level at least. the revolutions comes a measure of tem will make light work of negotiating nasty patterned plastics competing with even after making due allowance for the The answer is that in lightly laden buzziness that in truth never quite goes multiple obstacles. comfortable and very heavily bolstered, very competitive launch price of R289 form while driving the front wheels away in any circumstances. Happily, As speeds rise though, the system substantial seating swathed in nice qual- 900 for the GLX manual. through a 5-speed manual box, it goes that propensity to rev has no ill effect on generates a stodgy and artifi cial feel just ity self-pattered anthracite cloth. My concern is directed at the tactile about its business with a measure of fuel consumption as my week’s varied off centre, a Suzuki characteristic unfor- Luggage space is listed at 328 li- and visual quality of the cabin plastics. verve at lower speeds at least. use yielded an excellent 7.0l/100km. tunately shared by the Ignis in particu- tres with 60:40 folding seats in place I have no hesitation in stating that this Revs need to be kept up above the Other than at full taps though, the lar. Having said that, I somehow doubt but quite why Suzuki lines the sides of Suzuki trails all its contemporaries in 3 000 mark though and when baulked, extent of the mechanical intrusion is that this “rubbery” feedback will worry the load area in easily-scratched plastic this regard and given that the offend- such as on the motorway, regaining not all-pervasive and thanks to the fi t- too many owners. instead of carpet is something I can’t ing bits are on display every minute the momentum needs a few downshifts. ment of double door seals all round, Externally, the Brezza presents a answer. car is driven, I surely can’t be alone in For those living at higher altitudes, I’d wind noise is respectably contained as nicely resolved silhouette. The rather Equipment levels in the GLX are suggesting that many potential buyers recommend a pre-purchase ride with a is road roar on smoother surfaces. Let’s orange-peely orange paintwork of the very good for the class and price cate- would happily exchange the keyless few pax on board as I suspect the torque say refi nement levels are at about class test unit added to the pizzaz and with gory (please see www.suzukiauto.co.za start/entry, the dipping and folding mir- defi cit will come into play on longer ris- average. niceties such as fancy LED headlamps, for specifi c differences between GL and rors and the “auto” side of the air con, es. Ride, which is effected courtesy of a blacked-out window line detailing and GLX models) and that means you’ll fi nd for example, in return for greater invest- Happy to report, that’s no hardship as MacPherson strut/torsion beam suspen- black wheel arch/sill extensions, the a 7-inch nav touchscreen with Apple ment in better quality cabin cladding. the manual box is a pure delight, fl ick- sion set up, is well sorted and offers a SUV element is brought to the fore. CarPlay/Android Auto compatibility This aside, the Brezza makes a sol- ing through the ratios with disarming controlled yet decently absorbent feel The generous deployment of chrome and reverse camera imagery, Bluetooth, id case for itself as an attractive, well- ease and a nice mechanical feel that’s more akin to what might be expected detailing around the prow and stern is a USB and AUX inputs, auto climate equipped and economical compact complemented by a superbly smooth, from a bigger vehicle. Given the ride matter of taste and while panel fi t all- control, rear park sensors, auto dipping SUV but be aware that in India at least, lightweight clutch which boasts a bite height, the level of roll control during round is consistent if not notably tight, internal mirror and folding external 2021 is likely to see the launch of a new point in exactly the right place to aid hard cornering is perfectly acceptable the rather hollow sound of the doors and mirrors, variable ambient lighting and model. The Financial Gazette February 25-March 03 2021 | Page 23 National News

Paprika is witnessing a surge in global demand. Zim to resuscitate paprika production Farai Mabeza to target new markets such as Libya and Staff Writer Algeria who are second and third top importers of paprika in Africa. Egypt IMBABWE has plans to diversify and Tunisia are some potential lucrative and beneficiate its product range markets for paprika in Africa,” ZimTrade Zto get maximum value from its ex- said. ports. “If local exporters ride on the AfCFTA Last year, the country’s exports grew to — which commenced trading this year — US$4,4 billion from US$4,28 billion re- the current market size is around US$39 corded in 2019. However, worryingly for million, with South Africa ranking as top the country, primary commodities domi- African importer of paprika.” nated the export list with minerals making Demand for products that are deemed up 73 percent of all exports, according to to have healthy benefits is growing across the Zimbabwe Statistics Agency. the world and paprika is touted as having But ZimTrade, the country’s trade pro- anti-inflammatory, anti-depression, and motion body, says there are untapped ex- antioxidant properties. port opportunities in the processed foods The most popular paprika varieties sector. grown by most farmers in Zimbabwe are The sector recorded a 17,96 percent Papriqueen or Papriking, a standard com- growth, from US$98 million in 2019 mercial seed variety for sweet paprika to US$115 million in 2020, according that is not only highly productive, but also to Zimstat. In 2018, the exports were at developed for the drying and processing US$71,2 million. market. “This year we will focus on diversifi- North America consumed paprika ex- cation of value-added products and ser- ports worth US$221 million as at 2019, vices as well as improving access to mar- followed by Europe (excluding the Unit- kets. Specific strategies will be developed ed Kingdom) with an approximate market and implemented for the key sectors iden- size of US$196 million. tified by the National Export Strategy as Asia’s market size is approximately low hanging fruits by having comparative US$179 million, according to ZimTrade. advantage and export potential,” Allan According to Trade Map, the inter- Majuru, ZimTrade’s chief executive, said. national market for paprika and related And part of that strategy includes re- products has been on an upward trend as suscitating the production of crops such indicated by world imports, which have as paprika which are witnessing growing been growing by an average seven per- global demand. cent from 2015 to 2019. Total world trade This comes as horticulture has been of paprika and related products in 2019 singled out as one of the sectors with were around US$743 million, up from comparative advantages that can unlock US$703 million in 2018 and US$560 mil- lucrative opportunities for Zimbabwe. lion in 2015. To help improve production in the sec- Zimbabwe, however, has been record- tor, ZimTrade says it has been working ing insignificant exports of paprika over with the Nyanga Paprika Exporters As- the past few years, with farmers in 2019 sociation to resuscitate production in the not able to produce enough volumes to Nyamaropa and surrounding areas. meet regional and international demand, “There are plans to roll out capacity according to a paper published by Trade- development programmes to cover cur- Comm in 2019. rent and potential paprika farmers across Paprika can be grown in most parts of all provinces. Going forward, local farm- the country but performs better in warmer ers need to increase production of quality areas with well drained soils. paprika and target already performing and According to a report by Grand View emerging markets,” ZimTrade said in an Research forecasting the Paprika Market update. Size for the period 2019-2025, the global According to ZimTrade there has been international market however, has high considerable growth in the use of paprika entry barriers with huge global corporates in cosmetics, perfumery, beverages, food likely to provide intense competition by processing, flavouring and pharmaceuti- continuously improving and innovating cals while the recently launched African on paprika products. Continental Free Trade Area (AfCFTA) To mitigate this and as an entry strate- offers other opportunities for potential gy, ZimTrade advised Zimbabwean pro- producers. ducers to seek partnerships and collabo- “Already, South Africa is Zimbabwe’s rations with key existing global players biggest trading partner, which will make in this industry to tap into the growing it easy for local farmers to tap into this market for paprika products. market. In addition, value-addition will also “The coming into action of the con- ensure local exporters earn more in export tinental-wide trade agreement raises an markets. opportunity for Zimbabwean producers [email protected] Page 24 | February 25-March 03 2021 The Financial Gazette National News

have had to innovate around coming up with Vision 2030 initiatives. OVES Holdings (Doves) managing initiatives such as outsourcing certain ser- PN: How has the current economic environment director, Talent Maziwisa (TM) sat vices, cost cutting measures, without compro- affected monthly premium payments? Ddown with The Financial Gazette’s mising quality of services for our customers TM:We have had to regularly review our premiums Group Digital Editor Paul Nyakazeya (PN) among other initiatives. in line with infl ation movements. However, the process to give us insights into the funeral assurance We are also faced with signifi cant high of getting consent from every member through comple- industry. Below are excerpts of the interview. duty levels when importing critical funeral tion of physical forms is cumbersome and we encourage related equipment. Under the auspices of the the authorities to accept technologically-driven engage- PN: What are the major challenges fac- Zimbabwe Association of Funeral Assurers ment as permissible consent for deduction. ing the funeral assurance business, and as (Zafa), we recently engaged the relevant min- PN: Doves is the country’s oldest funeral service a major player how can these issues be ad- istry as an industry and the latter promised to provider, in the country and has been growing over dressed? look into this key issue. the years. What do you attribute this growth to? TM: One of the key challenges is that The high cost of doing business inevitably TM: We have navigated different terrains throughout we provide defi ned benefi ts at market costs, puts pressure on the ease of doing business. several decades and gone beyond the centenary mark. which include forex-denominated costs We are pinning our hopes and are confi dent We are proud of our rich heritage, our resilience and our against collection of premiums in local cur- that ongoing government efforts to improve people who have helped us navigate turbulent times and rency. As an entity and industry at large, we Talent Maziwisa the economy will bear fruit as espoused in the brought us thus far. We are proud of our customers who have remained loyal to us through thick and thin. We have now grown into a diversifi ed lifestyle management institution spanning, funeral services, life assurance, fi nancial services and furniture manufacturing through the following strategic business units: •Doves Funeral Services •Doves Life Assurance •Doves Financial Services •Silkwood Manufacturing PN: As Doves or as an industry, what are you doing with new players (banks, retailers and telecommunications fi rms) entering into the market? TM: Competition is inevitable in every sector. Doves is a one-stop shop for all funeral-related products. We offer life assurance products as well as funeral service, hence our clients have the added comfort of knowing that they are not only covered but they are guaranteed world class services when they pass on. Our promise is not just imagined, it is visible through state-of-the-art investments for such a service through hearses, ambulance removals and modern parlours, among others. PN:What market share does Doves currently hold and where do you see yourselves going forward? TM: From a life assurance perspective our market share currently stands at eight percent as at September 2020 and we believe we have been growing. We are on a drive to become the leading player in our chosen markets. PN: How do you intend to achieve this target? Which of your business units are performing well in this environment for you to be confi dent of com- manding such a market share? Remember your competitors are also aiming higher. TM: All our business units have performed well in the prevailing environment, our drive is for each of our business units to grow signifi cantly in terms of market share. We have developed robust strategies to grow our market share and have also invested in developing our human capital, systems and processes to ensure they support the envisioned growth trajectory. PN: We understand space to bury people is running out, especially in Harare. What is Doves doing in this regard? TM: We have engaged the relevant authorities to explore the options available and we will inform the market of any developments in this regard. PN: What is your view on cremation? TM: Cremation has its own merits in terms of con- serving burial space, but this has to be put in cultural contexts. For some religions this is the normal way of burial, while for some religions or traditions, this will be taboo. So, as long as it conforms to the values and norms of that community, we will be supportive of the cremation initiatives. PN: About three years ago, then Harare City mayor, Bernard Manyenyeni, challenged funeral associations to partner the city council to improve the deplorable state of various cemeteries around the city. How far have you gone as a company and industry in this regard? TM: This calls for an industry approach and as members of Zafa we are joining other stakeholders to come up with lasting solutions to this particular challenge. PN: What advice would you give to someone who does not have or does not believe in funeral assurance? TM: A funeral policy is a must for every member of our society. It takes away the burden of funeral costs for the family when one passes away. We have seen families going into debt or selling valuable assets to give a member a befi tting send-off. Our clarion call is for everyone to be prepared for this inevitable stage of our lives by signing up for a funeral policy. At Doves, we have policies that suit the needs of every member of our society. newsdesk@fi ngaz.co.zw The Financial Gazette February 25-March 03 2021 | Page 25 CHIWANZA ICDZ honours Zim’s top directors

HE Institute of Corpo- winning serial entrepreneur, rate Directors Zimbabwe honoured as the youngest, in- Honouring leadership excellence T (ICDZ) has recognised novative and outstanding chief corporate directors in business, executive in Zimbabwe, Mauri- in challenging times of Covid-19 public service, civil society who tius South Africa and the United have distinguished themselves States. HE Directors’ Excellence Honours other business organisations in Zimbabwe. as effective directors by con- He is currently the group chief were pioneered by the Institute of There was a greater use of the print and tributing to the success of their executive of a tripartite hold- TCorporate Directors Zimbabwe digital media in attracting nominations from enterprises, sports and entertain- ing company, Cernic Holdings (ICDZ) in order to recognise the achieve- across all sectors. ment. with interests in microfinanc- ments of individuals in Zimbabwe who have ICDZ recognised Directors in the fol- The awards recognise inde- ing, derivatives and investments distinguished themselves as effective board lowing categories: pendent corporate directors of through Cernic microfinancing. members by contributing to the success of Individual Categories: public, private and non-profit The former Affirmative Ac- their enterprises or organizations. 1. Board Chairperson of the Year. This is board directors who have made tion Group president and former The honours seek to recognise an indi- fl agship award vidual’s contribution through their respec- 2. Board Chairperson of Listed Compa- "valuable" contributions to the local government board mem- tive boards to strategic direction, sound nies boards on which they serve, as ber, currently sits on several corporate governance and good corporate 3. Board Chairperson of Higher Learn- well as the entire boards that boards locally including ZIFA citizenship as seen through enhanced oper- ing Tertiary Institutions have significantly protected or Chamu Chiwanza and has interests in Nigeria, the ational performance of their organisations. 4. Special Lifetime Award enhanced stakeholder value, UK and South Africa. It also rewards boards who have collec- 5. NGOs Director of the Year especially during the Covid-19 Chiwanza is also the founder tively contributed the same. The main ob- 6. Women Champion on Boards pandemic period. Chamu Chiwanza was rec- of a young entrepreneurial de- jective is not to recognise the management 7. Corporate Director Listed Companies The awards were held under ognised as the most influential velopment movement, The Shift, contribution of the recipient but rather their 8. Corporate Director Large Companies the theme “Honoring Leader- young corporate director in the and believes in equipping and directorial contribution to the organisation. 9. Corporate Directors –Small to Medi- ship Excellence in Challenging financial sector. empowering the next generation The theme of the honours this year um Enterprises Chiwanza is a multi-award- was “Honoring Leadership Excellence in 10. Young Director of the Year Times – Covid-19”. of economic leaders. Challenging Times – Covid-19” This is in Board and Corporate Honours acknowledgment of the challenging and 1. Public Enterprises Board volatile environment that the Zimbabwean 2.Special Enterprise Award-Fami- business world is currently facing amid the ly-Owned Business of the Year Covid-19 pandemic, and the need to reward 3.Special Mention-Board of the Year-En- incisive directors who are of keen penetra- vironment tion and discernment. These directors are 4. Special Mention-Corporate Social Re- seized with the pursuit of commercial op- sponsibilty portunities that have made their organisa- In line with its prominence on good cor- tions realise sustainable growth. porate governance, the ICDZ placed special The call for nominations for the differ- emphasis on the contribution of nominees ent categories of the honours was sought towards sound corporate governance in their through a public relations campaign in the respective organisations as the main part of media, through the ICDZ itself and through the criteria for the honours. Page 26 | February 25-March 03 2021 CHAMU CHIWANZA CONGRATULATORY SPECIAL FEATURE The Financial Gazette Corporate directors excellence honours 2020 The Financial Gazette MOTORING SPECIAL FEATURE February 25-March 03 2021 | Page 27 Croco Motors: The best for service ROCO Motors (Croco), they hold through on-the-job train- which is part of Zimba- ing. Cbwe’s largest automotive Once one buys a vehicle from Adventure packed conglomerate, Croco Holdings, is any of the dealerships, Croco an authorised dealer, which offers Motors provides warranty cover, world-class vehicle sales and after- aftersales support in terms of ser- new Nissan Patrol sales support. vicing and parts supply. This dealership network holds The dealership has a nation- HE all-new Nissan Patrol has been neatly craft- franchises to international auto wide footprint spanning Chiredzi, ed to perfection. Available on order at Nissan icons such as Toyota, Nissan, Masvingo, Bulawayo, Kadoma, TClover leaf motors, the sales team are ready to Ford, Kia, Renault, UD Trucks, Mutare, Harare and provides farm assist with test drives and pricing. Volvo Trucks, Eicher Trucks, New visits for Commercial division af- It comes from a family with a strong reputation Holland Agriculture, Yutong Bus- tersales support for tractors. of superior performance that spans more than six de- es, and Higer Buses among others. The nationwide footprint al- cades has earned the all-new Nissan Patrol enviable At Croco, an expertly-trained lows for coverage of fl eet owners, recognition as the "king of off-road". port training to ensure the team For those with a passion to Combining functionality, versatility and powerful service team works on all vehicles mines and farming communities, is up to date in terms of the ev- work in the industry, the auto gi- performance with bold styling and luxurious interior that come in for service, ensuring who after buying a vehicle from er-evolving technology and trends ant runs an apprenticeship pro- refi nement, the Nissan Patrol takes sophistication and a high quality, reliable and profes- Croco Motors, will be able to ade- capability to a whole new level. sional vehicle service. that are innate to the automotive gramme, which trains technicians quately cater for the vehicle’s sus- At a glance there is a clear formidable on-road This is driven by regular sup- industry. under the various franchises that tained usage. presence with a more-luxurious-than-ever interior. This vehicle has a fresh and modern design approach inspired the creation of the impressive exterior. The bold window graphic of the blackened A-pil- lar, alloy-wheels, as well as the dynamic chrome grille all contribute to Patrol’s undeniable on and off- road presence. On the new Nissan Patrol the air conditioning system features curtain vents mounted in the ceiling above each side window and upper vents mounted above the windshield. For the ultimate in quiet interior cabin space. The laminated windshield and front windows reduce noise by 35 percent.

Nissan Patrol's mission is to deliver more comfort and more room, it offers versatile luxury leather seats dimensions that you will be forgiven in thinking that you are inside a private jet. For the driver, and all seven passengers, Nissan Patrol offers immeasurable comfort and space from any seat you choose. The Nissan brand has taken a huge step when it comes to technology and the Patrol comes loaded with Nissan Intelligent Mobility. Nissan's intelligent driving is foremost about performance, comfort and safety, removing the stress from a daily commute or minimising the risk of un- safe conditions like Nissan Intelligent Driver Alert- ness that detects driving behaviour consistent with a drowsy driver and send a warning. Nissan is leading with its safety shield technologies like lane departure warning and forward emergency braking, and will advance this leadership into autonomous drive technologies. Nissan intelligent mobility is redeﬁ ning the way we power vehicles, the way they are driven and integrated into society, all while staying focused on creating a more enjoyable ride through life. At the wheel you can literally feel raw power in your grip as you cruise on urban roads or manuevore the rugged roads. From the beginning, the Nissan Patrol has been synonymous with power. The 5.6 litre V8 engine offers the ultimate power trip. The DIG technologies improve efﬁ ciency, power and torque with lower emissions. The 7-speed VVEL automatic transmission with manual mode delivers seamless acceleration with 298kW of power and 569Nm of torque. It comes packed with off road capabilities. Con- quering the off-roads means roughing through a di- verse range of challenging landscapes. Fortunately, it is well equipped to tackle any ter- rain thanks to its advanced technologies, thoughtful design and incredible forethought. The heavy-duty frame at the Patrol’s core is designed for improved structural rigidity without any compromise in ride quality. Change your world in the new Nissan Patrol at Nissan Clover Leaf, Derrick Mazvito and his team will assist with the ordering the payment options. Page 28 | February 25-March 3 2021 Motoring special Feature The Financial Gazette Duly’s — home of service excellence Rutendo Chabururuka

uly Motors, a division of Duly's Holdings, provides expert aftersales support for a wide range Silas Nyagura (extreme right), Duly Motors driver trainer pauses for a photo with ZETDC drivers after undergoing a UD Trucks Dof vehicles, from passenger cars, trucks and ag- training course at Duly Trucks in Harare. ricultural equipment. under the passenger vehicles, Du- ly’s specialises in Ford, renault, nissan, Kia, and toyota, among other brands. For trucks, Duly’s is known to be the home of uD trucks, Volvo trucks, eicher, Higer and yutong buses. the automotive giant, also has the new Holland franchise for tractors, backhoe loaders and other agricultural equipment, for which spare parts and servicing are covered. Duly Motors has a team of highly-qualified technicians who benefit from training conducted by various franchises regionally to ensure that the team is up to date with international best practice in vehicle service and maintenance. the relevant modern, state of the art diag- nostic equipment is available in all our well kitted Duly’s workshops nationwide. established in 1902, the company is reputed for a sound and stable reputation throughout Zimbabwe for good products, excellent customer after-sales service, fair dealing in the industry and integrity that has held true for over 100 years. Having a knack for providing an exceptional level of service in the motor industry to valued customers, Duly Motors opened a dedicated Bulk parts Department, which subsequently launched the first depot in Harare in 1932, motorists head here for genuine parts, car batteries, car accessories or car care products to keep vehicles in great shape. Duly’s branches are located in Harare, Mutare, gweru and Bulawayo to enable customers for vehicle sales and aftersales support. Duly’s agriQuip provides farm visits for certain special servicing requirements to ensure pro- ductivity on the farm is not compromised. Duly trucks provides training for drivers who would have bought their truck from Duly’s. the drivers are taken through a curriculum for best user experience, and providing the best care for their truck. there is no limit to the number of candidates for training, even one customer is trained, bearing testimony to the length that Duly’s goes to ensure the best user experience. Duly's: Your aftersales support partner

an't seem to find the right components for your vehicle? auto body parts shopping c starting to become a challenge? if the search for replacement parts is already giving you headaches, it's time you stop looking elsewhere — try Duly Holdings limited (Duly’s). Duly’s sell genuine parts for the following brands: Ford, nissan, Volvo, uD, Higer, yutong, either and new Holland. if you're looking for a boost in your driving power, we have high-performance parts that will help your engine churn out more power. How about improving your driving safety? Whether you need new brake pads, headlights, or shock absorbers for your family car, we have them, too! and even if you simply want some more sizzle in your ride, we can help you find the right car accessories. our product selection covers a wide range of vehicles. We offer complete truck, van, and suV parts for different makes and models. We have heavy-duty components for off-road rides (think the ranger that can handle the harsh- est terrains), import cars such as toyota, and even hard-to-find components for classic vehicles (think phased-out cars that are seldom seen on the roads today). The Financial Gazette February 25-March 03 2021 | Page 29 CITY OF VICTORIAFALLS

Vic Falls’ city status to boost tourism IMBABWE’S resort town of Victoria Falls was fence Forces camp and sporting facilities. Unesco declared Victoria Falls a World ernment minister July Moyo three years ago recently conferred with city status by President Victoria Falls’ city status came after a Heritage Site in 1989, 10 years before the to assess the then municipality’s capacity said ZEmmerson Mnangagwa, a move seen as boosting thorough research locally and international- town was granted municipal status. Victoria Falls is a special city. its investment potential. ly by a commission of inquiry which recom- Erica Jones, the principal director for ur- She said it took a thorough research around Mnangagwa proclaimed Victoria Falls a city through mended that the local authority be exempted ban local authorities in the Ministry of Local the world to get additional benchmarks used Statutory Instrument 285 of 2020, upgrading the munic- from some expected standards because of its Government and Public Works who chaired in upgrading local authorities as Victoria Falls ipality to a city in terms of the Urban Councils Act. uniqueness as a World Heritage Site. the commission that was set up by Local Gov- did not meet some of the requirements. “It remains government’s expectation that the city will continue on its vision and mission to provide high-quality services that maintain the uniqueness, natural ambience and competitiveness of the city of Victoria Falls as a premier tourist destination,” Mnangagwa said. Mnangagwa encouraged the city leadership and stakeholders to utilise the new status to boost the national image to grow the tourism sector and other ongoing national investment, trade and modernisation programmes. He said the implementation of the integrated landscape and development plan for Victoria Falls included the preservation of the environment and cultural heritage. “To this end, the ecosystem of our mighty Victoria Falls (Mosi-oa-Tunya) – one of the Seven Natural Won- ders of the World – should be jealously protected and safeguarded. The habitat of animals and their age-old corridors must continue to be respected,” he said. A tourism executive commented: “With the city status, Victoria Falls will assume prestige that is reserved for cities and now compete with other tourism destinations globally. This will also make the tourism town a well sought-after investment destination, with potential for more twinning relationships with other cities around the world.” Zimbabwe wants to make Victoria Falls its confer- encing capital and plans to build a multi-purpose con- vention centre with top-notch facilities such as five-star hotels, medical centre, a university, a Zimbabwe De-

President Emmerson Mnangagwa proclaimed Victoria Falls a city through Statutory Instrument 285 of 2020, upgrading the municipality to a city in terms of the Urban Councils Act. Page 30 | February 25-March 03 2021 VIC FALLS CITY STATUS SpeCIAL FeATUre The Financial Gazette Victoria Falls city status excites ZTA OUrISM business activity is set for an all-time Government’s decision that will place Victoria Falls at high in Victoria Falls as the Zimbabwe Tourism par with other world acclaimed tour resorts. TAuthority (ZTA) has mooted plans to boost the “It is indeed befitting given that this new city is our new city in the next five years. country’s premier tourism destination. We are excited The country’s sole tourism administrator is on that Victoria Falls, the city, will now be able to compete course to cushion all tourism businesses entities in the with other destinations like Durban and Cape Town in resort city to take the lead in face-lifting Victoria Falls South Africa,” said Koti. so that it meets up to the local and international tourist He said, ZTA is aware of the immense value that expectations. tourism has on the economy of the City of Victoria As part of efforts to complement the government’s Falls. move in conferring Victoria Falls as a city, ZTA said “Without Victoria Falls there is no tourism to speak there was an urgent need for tourism to up its sleeve in of. We are talking about the jewel of tourism that has turning around the industry’s fortunes. enormous potential to raise a sound economy. The Zim- Victoria Falls is considered as the country’s premier babwe Tourism Authority wants to help businesses in tourism destination, being the most sought after “go to” the sector to be at the forefront of that economy. place that accounts for the highest earnings in tourist “Often times tourists shop for holiday or business receipts. destinations; they search for cities, instead of towns President Emmerson Mnangagwa officially de- and municipalities. We are quite elated ..,” Koti said. clared Victoria Falls a city recently. ZTA, however, remains cautious of the need for au- ZTA spokesperson Godfrey Koti said “big plans” thorities running the City of Victoria Falls to maintain are afoot to make sure the tourism business plays a part. the current environmental and nature conservation sta- He said the industry as a whole was elated by the Mnangagwa officially declared Victoria Falls a city recently. tus so as to keep on luring tourism activity. “There is a need for us to continue with the great work of the preservation of our sacred environmental and cultural heritage as Victoria Falls develops as a fully-fledged city,” said Koti. Victoria Falls was proclaimed a city through Statu- tory Instrument (SI) 285 of 2020 in terms of the Urban Councils Act. Mnangagwa told the nation that with Victoria Falls being a city, it was ample evidence for all to see the Second Republic’s devolution agenda was bearing fruit. “Over the years, the city has hosted many world leaders while conferences and meetings held here have seen the passing of decisions with far-reaching global implications. "The Tourism Growth Strategy, new Victoria Falls Stock exchange, the Victoria Falls International Air- port and the overall potential of Matabeleland North province are indeed a symbol of hope,” Mnangagwa said. He encouraged city leadership and all stakeholders to utilise this new status to boost the national image towards growing the tourism sector and other ongoing national investment, trade and modernisation programmes. “It remains government’s expectation that the city will continue on its vision to provide high quality services which maintain the uniqueness, natural ambience and competitiveness of the city of Victoria Falls as a premier tourist destination. "The city must honourably acquit its duties and rise to the new weighty and multifaceted responsibilities which come with the status,” Mnangagwa said. Sikhawuliso Sibanda, a member of the Tourism Business Council representing the southern region said if ZTA puts its words to practice, business players in tourism were to support all efforts to “make Victoria Falls great”. “Businesses in tourism want support, nothing else. That support comes from enacting business friendly tax exemptions, financial boost, incentives and recognition. In that way we can make Victoria Falls great. We applaud the government on making such a bold and noble move,” said Sibanda. In what will be seen as the most economical idea, Victoria Falls’ city status could explain the United Na- tions World Tourism Organisation (UNWTO)’s “Tour- ism Towards 2030”. The UNWTO says by 2030 the number of tourists in cities with heritage status will increase. The organisation believes the number of international tourists was set to increase by 3,3 percent between 2021 and 2030.

Victoria Falls is considered as the country’s premier tourism destination. Life & ArtsNews Worth Knowing February 25-March 03 2021 Page 31 Used ‘Jerusalema’ for your Hillary Clinton company video? — A bill to publish State of could be coming your way Terror novel aster KG's ‛Jerusalema’ ILLARY Clinton has written her first novel, a was the sound of 2020. It thriller featuring a US government "dangerous- was the song that launched ly out of touch" amid a series of terror attacks. Mcountless homemade challenge videos H State of Terror, which follows a novice secretary of and even found its way into a presiden- state, will be released on October 12, 2021. tial address last September. Clinton, a former presidential hopeful, secretary of "There can be no better way to cel- state and first lady, penned the book in partnership with ebrate our South Africanness than author Louise Penny. joining the global phenomenon that is It explores a world of "high stakes diplomacy and spreading across the world, and that is treachery" she said. the — ‛Jerusalema’ — dance chal- The novel's protagonist has "joined the administra- lenge. So I urge all of you to take up tion of her rival, a president inaugurated after four this challenge." years of American leadership that shrank from the Many South Africans and others world stage". across the world took up the challenge. It features a series of terrorist attacks which throws Workplaces got involved and people the global order into disarray, and the secretary is marshalled their kids to join in, posting tasked with assembling a team to "unravel the deadly their videos on social media. conspiracy". Type "Jerusalema challenge" into Clinton served as US secretary of state under the YouTube and the results go on for pag- Obama administration for four years from 2009 to es. The official music video has 2013, before losing against Donald Trump in the 2016 clocked over 344 million views on presidential race. YouTube. Master KG bagged the Best Publishers promise behind-the-scenes drama "in- African Act award at the MTV Euro- formed by details only an insider could know". pean Music Awards, beating Nigerian Clinton, the author of numerous non-fiction works, superstars Burna Boy and Rema described writing with Penny as "a dream come true". among others. "Now we're joining our experiences to explore the News in the past few days that complex world of high stakes diplomacy and treachery. Warner International sent royalty in- All is not as it first appears." voices to various video posters in Ger- Canadian crime author Penny, known for the Chief many sparked an outcry on social me- Inspector Armand Gamache series, said it was "an india — and just a little bit of panic. credible experience to get inside the State Department, The music giant charged various inside the White House, inside the mind of the secre- German government entities for using tary of state as high stake crises explode". the song in their versions of the chal- She added: "Before we started we talked about her lenge. So what does that mean for us? time as secretary of state. What was her worst night- Can anyone who filled some bored mare? State Of Terror is the answer." downtime during lockdown perfecting Clinton is not the first in her family to turn her hand the moves and sharing their effort ex- to fiction. pect a bill for their troubles? Her husband, former president Bill Clinton, teamed Eyewitness News spoke to Dumis- up with novelist James Patterson for The President Is ani Motsamai, an entertainment law- Missing — a thriller about a president forced to go off- yer and the man who takes care of le- grid for his own safety. gal and business affairs for Open Mic State of Terror will be published jointly in the US Productions — that’s Master KG and by St Martin's Press and Simon & Schuster and in the Nomcebo Zikode’s record label. UK and rest of the world by Pan Macmillan. He said some people took the chal- It follows a series of memoirs from Clinton, most lenge on for their own gains. recently 2017's What Happened, also published under "We have followed the news that Kgaogelo Moagi (left) better known as Master KG and Nomcebo Nothule Nkwanyana, also known Simon & Schuster, that attempted to explain why she Warner, our partners internationally, as Nomcebo Zikode of the hit song ‘Jerusalema’. failed to become president. has actually been taken to task by The book sold 300 000 copies in the US in a week. many people on social media saying playing in the background, and be- nothing to do with brand endorsement, have an exact number of companies — bbc.com 'you guys are being greedy, 'we are do- cause it is playing in the background, has nothing to do with using the song they were going after, he did say there ing this thing because of social (dis- now I have an interest in seeing what to push a particular brand and put the were "quite a few". tancing), we are all down because of this particular company is doing," he brand in the face of people with the He also explained how royalties Covid-19', and I think it's quite on said. "If it's for private use and has song in the background, then that's were due when a song was used for point. nothing to do with commercialising fine." commercial outcomes. "But there've been different ver- the song, in other words, using the So what constitutes a brand or an "There's royalties that, as Open sions of this challenge. There are situa- song in order to exploit the brand, in advert? Presumably, those Mic, we pay arising from synchronisa- tions where a child and their family are order to make a specific brand visible, heart-warming videos of frontline tion licences. So it is upon us to ensure in their living room and they are doing there is totally nothing wrong with healthcare workers at taking up the that we pursue this instance and make the challenge, or they are outside and that." challenge won’t be targeted. sure that some or other kind of licens- doing the challenge. That's perfectly Picking out the companies and "Those are the critical examples ing is paid so that we can pay them as fine. But we have seen these challeng- brands taking advantage of the feel- that we will certainly not go after. You well. Yes, it's income that comes to us es taking it a little bit too far, where re- good song in between people who are can see they were using it within the as master owners, but it's also income ally, what has been happening here is using it for a bit of fun isn't cut and context of uplifting spirits during diffi- we have an obligation with our artists that people have been pushing their dried, he said. cult times and within the confines of to pay over." brands," he said. "There has been a thin line. Some the call that was made by the presi- It’s worth remembering that all the Companies and brands using the of them will show maybe their logo at dent," he said. artists who make this music have to eat song to enhance their own social capi- the beginning and it's all about the So if you did it for fun or to lift the too. It’s been a very rough ride for their tal is the problem Open Mic will also dance. But some of them when you nation’s spirits, you’re good. But if you community as global lockdowns be targeting, he said. look at them, it's all about the brand, used the music to shill for business, not wiped opportunities off the board for "I saw brands where you would the company that is doing the chal- so much. them. see a drone showing a view of a com- lenge and little about the challenge. Motsamai said Open Mic was So if you took up the challenge, pany yard, then you will see their Those are the ones that Warner and looking at local examples of brands herded your kids into formation and workshop, they dish out products, they Open Mic has found. If the challenge exploiting the song and will request posted the results online, you’re not is taken and someone is dancing with payment from them too, just as Warner going to get a hefty bill - or any bill - make sure they give you a picture of Hillary Clinton every product they sell. The song is their family, individually, and has International has done. While he didn't for that matter. — ewn.co.za ANTHONY Joshua has fired an early warning shot to heavyweight rival Tyson Fury ahead of their block- buster bout. Negotiations are still ongoing to secure a date for the highly-anticipated Battle of Britain in News Worth Knowing either June or July. The winner will be crowned un- disputed heavyweight champion of the world with all Sport four belts on the line. Page 32 February 25-March 03 2021 SPORT SHORTS Red Bull reveal car for 2021 season ED Bull have revealed the car they hope will enable them to mount their first title challenge for eight years. R The RB16B develops the 2020 car, with which Max Verstappen finished third in the championship behind Mercedes pair Lewis Hamilton and Valtteri Bottas. Red Bull have worked on eradicating the instability issues that plagued last year's car and closing the performance gap they had to Mercedes last year. And Honda has brought forward a new engine that had been planned for 2022. The Japanese manufacturer is pulling out of F1 at the end of this season but has modified the internal combustion engine, turbo and energy recovery system in an attempt to challenge to Mercedes. SOUTH African billionaire and Confederation of African Football (Caf) presidential candidate Patrice Motsepe (left) and Council of Southern Africa Verstappen won the final race of 2020 in Abu Dhabi after the Football Associations (Cosafa) president Phillip Chiyangwa during Cosafa’s annual general meeting which was attended by Fifa president Gianni Infanti- team closed in on Mercedes in the second half of the truncated no in Johannesburg this week. The mining mogul, who is backed by Cosafa, is eyeing the most powerful seat in the continental game at the March 12 Caf season. — bbc.com elective conference in Rabat‚ Morocco. Victory was ‘emotional roller-coaster’ OVAK Djokovic says his journey to a ninth Australian Open title and 18th overall Grand Slam trophy was an Tiger Woods recovering from N"emotional rollercoaster". The world number one continued his dominance at Mel- bourne Park with a 7-5 6-2 6-2 dismantling of Daniil Medvedev. Djokovic won the title despite tearing an abdominal muscle during the third round, which impacted his training. surgery after serious accident "Emotionally it was one of the hardest tournaments that I've ever had, to be honest," the Serb, 34, said. OLF legend Tiger Woods is awake and re- that," Rapaport said of the shoot. "It was very challenging to keep my mind serene and focus covering from surgery, according to a state- Woods had hosted the Genesis Invitational over on what matters the most. Gment posted early Wednesday on his official the weekend, and was seen intermittently on Satur- "I've put a lot of energy and time to be sitting here with the Twitter account. day and more often during Sunday's final round. trophy." Woods, who was involved in a serious car acci- Woods was at the course Monday with NBA leg- Djokovic's victory leaves him two Grand Slams behind dent on Tuesday near Los Angeles, is "responsive, end Dwyane Wade, actress Jada Pinkett Smith and Roger Federer and Rafael Nadal in the three-way battle to finish and recovering in his hospital room," the statement actor David Spade. with the most men's titles. said. "The reason I picked up a golf club. Yesterday "Most of my attention and my energy from this day forward, Woods suffered serious leg injuries and was was a pretty cool day! Thank you @tigerwoods @ until I retire from tennis, is going to be directed in majors, trying trapped but conscious when emergency responders golfdigest for this dope opportunity!" Wade wrote on to win more major trophies," said Djokovic. — thesun.co.uk reached the scene of his one-vehicle rollover crash Instagram Tuesday. on a stretch of California road known for speeding Smith posted photos on Twitter of her and Woods and accidents, authorities said Tuesday. at the links. Abramovich’s US$610 million yacht Woods, 45, was driving shortly after 7 a.m. PT in "Guess who I had the most awesome golf day OMAN Abramovich certainly doesn't do things in Rancho Palos Verdes, near Los Angeles, when the with yesterdayyyyy??? Yes! The magnificent @ halves. SUV he was using crossed a median and went across TigerWoods !!!! Yes ... dreams come true. I can't The Chelsea owner, worth a cool £10bn, is oversee- two lanes of road before hitting a curb, hitting a tree wait for you to see my golf journey with Tiger. Stay R ing the development of his latest toy, Solaris - a superyacht that and landing on its side off the roadway in the brush. Tiger Woods tuned!" she wrote. promises to be the most powerful yacht in the world. A Los Angeles County sheriff's deputy who was Spade joked about Woods' ability as an instructor. The Russian, 54, must love travelling by sea - because he has the first to arrive said he found Woods still in the driv- Villanueva said that section of road is "downhill "Golf lesson with this guy today. And you know on a curve," and he and Gonzalez said the area is had a private navy of yachts - with SunSport believing Solaris to er's seat, wearing his seatbelt, and that the golfer was what? He's not bad... He picks things up very quick- be his eighth over the years. able to tell him his name was Tiger. known as a trouble spot for speeding and accidents. ly. Good listener," he tweeted with a photo of himself Deputies responding to Woods saw no evidence There's even one £25million vessel he allegedly gifted The 15-time major champion was lucid and and a smiling Woods. to Vladimir Putin, after he was elected as Russia's president calm, but potentially in shock, and didn't seem to be of impairment, Villanueva said, and they didn't ask Recent injuries hospital officials to take a blood draw, he said. in 2002. The latest yacht is nearing completion and has cost concerned with his injuries at the time, Deputy Car- Woods, who has won a record-tying 82 PGA £430million to build. los Gonzalez said. A Los Angeles law enforcement source told Tour events, announced earlier this year that he had CNN that no field sobriety test was administered be- A 460ft beast of the sea, it features eight decks, as well as a Los Angeles County Fire Chief Daryl Osby told a recent back operation, the fifth of his professional helicopter pad. CNN's John Berman that Woods was alert and ori- cause of the seriousness of Woods' injuries. career. A tweet from the sheriff's department earlier said The yacht is being built at the Lloyd Werft shipyard in ented and was trying to "self-extricate" but he was Woods told CBS sportscaster Jim Nantz in video Bremerhaven, Germany. — the sun.co.uk stuck. Firefighters used a pry bar and an ax to free rescuers used the Jaws of Life to get Woods out of posted Sunday on the PGA Tour's Twitter feed that the golfer, who this past weekend hosted a PGA Tour the vehicle, but Osby said firefighters in fact used a he was "feeling fine" but a "little bit stiff" after his event in the area but didn't play because of a recent tool for prying and an ax to remove the windshield most recent procedure. He said he was scheduled to back surgery. and free Woods. get one more MRI. The world’s largest cricket venue They broke the windshield with the ax and Woods was taken to Harbor-UCLA Medical Woods previously had back surgery -- a spinal to host India-England Test used the bar to pry the seats and metal from around Center, a trauma center. CNN has reached out to the fusion -- in 2017 and made his return almost a year Woods' legs, Osby said. hospital for his condition. The sheriff's department later. He went on to launch a remarkable comeback, LAYERS from India and England have been admiring the They put Woods in a neck collar, attached leg said Woods was the only occupant of the car. winning the Masters in 2019. refurbished Motera — the world's largest cricket stadium. splints and used a backboard to get him through the Another car, not involved in the initial rollover Any progress last year was hampered by yet an- The teams are set to play the third Test match in the incident, stopped after the crash and was rear-ended, P giant hole in the windshield to an ambulance. He other back injury and the pandemic, which heavily ongoing series at the stadium on Wednesday, in Ahmedabad, the went to the hospital in serious but stable condition according to Los Angeles County PIO Henry Nar- disrupted the golf calendar. biggest city in India's western state of Gujarat. with injuries to both legs, Osby said. vaez. "We have been made aware of Tiger Woods' car Both teams have won a Test each in the four-match series. Woods' agent, Mark Steinberg, said the golfer The days leading up to the crash accident today. We are awaiting further information Indian President Ram Nath Kovind and Home Minister was in surgery with multiple injuries, according to Woods likely was headed for the Rolling Hills when he comes out of surgery. On behalf of the PGA Amit Shah inaugurated the stadium, which has been named af- Golf Digest. Country Club in nearby Rolling HIlls Estates for a TOUR and our players, Tiger is in our prayers and ter Prime Minister Narendra Modi. How the crash happened shoot with Golf Digest and Golf TV, according to will have our full support as he recovers," PGA Tour Players from both teams have been training at the new- The crash, which destroyed the front of the Gen- Daniel Rapaport, the Tiger Woods correspondent for Commissioner Jay Monahan said ly-built stadium, which can seat 110,000 spectators. But only esis SUV courtesy vehicle, could have been fatal, Golf Digest. Woods last played competitive golf at the re- 55,000 fans will be allowed in the two Tests to be played at the but the airbags and seatbelts helped Woods survive, Woods had a 7:30 a.m. call time, with shooting scheduled Masters in November. He also played venue due to Covid restrictions. Gonzalez and Sheriff Alex Villanueva said. supposed to begin around 8. It was the second day golf in a father-son event called the PNC Challenge This day-night pink ball Test will be the first international The sheriff said he thinks Woods was traveling of shooting. in December in Florida. match hosted at the stadium since November 2015 when it was at a high rate of speed down a hilly part of the road Rapaport told CNN's "Situation Room with Wolf Woods was the host of this weekend's PGA Tour demolished for reconstruction work. when the crash occurred. Blitzer" that Woods was not playing or hitting, but event, the Genesis Invitational at Riviera Country Cricketers from India and England have been sharing pic- There were no skid marks or other indications of was giving on-course playing lessons to celebrities. Club in Pacific Palisades, and some proceeds went tures on social media, praising the new facilities at the stadium. braking, Villanueva added. "He was in good spirits on Monday when he did to his foundation. – cnn.com — bbc.com