Ex-Minister Mpofu Battles to Keep ‘Zabg Assets’: P3

EX-MINISTER MPOFU BATTLES TO KEEP ‘ZABG ASSETS’: P3

News Worth Knowing Stimulus package finally here: P9

October 01-07, 2020 ESTABLISHED 1969 @ FingazLive www.fi nga.co.w Facebook: The Financial Gazette Z$260

ZSE Report The ZSE All Share Index yesterday gained 3,46 percent to close higher at 1,638.17 Production points. Gains were helped by CBZ Hold- ings which strengthened by $8,7010 to close at $52,9. FBC Holdings was up by $1,5844 to end at $15.4 and Bindura Nick- el Corporation traded higher at $4,1002 after advancing $0.4002. Innscor Africa which published its 2020 financials this week rose by $0,2068 to settle at $19,8 costs vault while crocodile skin manufacturer Paden- ga gained by $0,0923 to $13,1. Turnover was $239,9 million on the back of a huge trade value in the bourse's biggest company by market capitalisation CBZ Holdings.

Currencies (Bloomberg) % change USD:ZAR 16,8136 0,72 ◀ EUR:USD 1,1708 0,31 ◀ GBP:USD 1,2845 0,14 up as input ◀ ◀ USD: JPY 105,6700 0,01

Stock Markets ◀ ZSE All Share 1 638,17 3,46 ◀ Top 10 1 093,10 5,19 54 232,65 JSE ◀ 0,50 ◀ FTSE 100 5 904,36 0,12 costs surge Dow 27 452,66 ◀ 0,48 Commodities Gold 1 901,60 0,08 Tendai Kamhungira sequences because power is basic for every ◀ Platinum 886,22 0,08 Senior Staff Writer business, including ordinary people. ◀

“At companies in heavy manufacturing, Brent Oil 40,41 ◀ 1,51 ACTORY gate prices are set to rise such as mining and cement manufacturing, Grains (Grain SA)

White Maize ZAR 3 342,00 ◀ sharply in the coming weeks and for example, the component of electricity 118,00

Soya ZAR 8 070,00 ◀ 163,00 months for many goods, in response costs as a contributing factor to the total F Wheat ZAR 5 020,00 0 to soaring production costs — including the costs averages between 20 and 30 percent,” recent whopping 50 percent power tariff economics professor Gift Mugano said. ‘Border blockade a hike. “When you hike power prices, you are Experts who spoke to The Financial raising the cost of production. The com- declaration of war’ Gazette this week said Zesa’s new electric- pounding effect is also felt on the value OPPOSITION calls for a “blockade of ity charges, among other rising input costs, chain and the impact is signifi cant, as it can borders, particularly Beitbridge, are a declaration of war” under international law, would disrupt the economy again — at a exceed 100 percent of the total cost of pro- State Security minister Owen Ncube says. time that businesses and the country were duction. This comes as a shadowy South Af- beginning to recover from the devastating “This also affects ordinary people, which rican group has called for “xenophobic effects of the global coronavirus pandemic. will result in them demanding salary hikes,” protests” in Pretoria on October 16 and an outright closure of the southern entry While a new Zesa pricing model was he added. point would sink the economy — already always on the cards, as the power utility Mugano emphasised that while he agreed crippled by the Covid-19 pandemic. battles to overcome its perennial viability with the principle behind Zesa’s tariff hikes, “No country in the world and sane challenges, the experts said the parastatal’s the policy announcement was “supposed to people would tolerate elements who openly mobilise to close their country’s sharp price increase was worrying, as it be done in a consistent manner and not come borders… At international law, a block- would have an immediate adverse impact on across as a knee-jerk reaction”. OK Zimbabwe's chief executive, Alex Siyavora, after being ade is tantamount to a declaration of war,” all sectors of the economy. Economist and Zesa board member Ncube said in a very unusual statement, presented with a Top Companies Award last week. The retail giant adding “state security agents will take “There is no doubt that once you hike en- Ashok Chakravarti, expressed surprise at the emerged the second runner-up in this year's edition of the prestigious appropriate measures to protect the fl ow ergy prices by 50 percent, there will be con- new electricity charges. To Page 2 event organised by The Financial Gazette in partnership with Old of… commerce across our borders”. Mutual. — Wires Page 2 | October 01-07 2020 The Financial Gazette National News Zim’s maize yield down 50pc: Survey IMBABWE’s average maize yield continued to decline from an average 1,2 t/ declined 54 percent to 0,48 tonnes ha between the period 1990 to 1995 to an av- Zper hectare in 2019 from 0,78 tonnes erage of 0,749 t/ha between the period 2010 in 2018 weighed down by low output from to 2016. small sector and communal farmers, this Various stakeholders interviewed un- year’s edition of the Agriculture Sector Sur- derscored that the fall in maize output was vey has revealed. contributed by many factors ranging from The survey, which was commissioned by droughts, poor economic performance, The Financial Gazette in partnership with which increased the cost of going back to the Zimbabwe Agriculture Society and CBZ farming business, thereby rendering farmers Holdings, was conducted by the Africa Eco- highly incapacitated to lack of policy clarity nomic Development Strategies. on the pricing regime. ational output was significantly What is striking from the survey is that weighed down by small scale farmers, whose Mashonaland Central, East and West, on a output per hectare is around 0,2 tonnes while yearly basis, produce around 70 percent of the yields by commercial farmers are at an total maize production though the provinces average of 1,5 tonnes. have less land planted. “The research showed that smallholder The Midlands, which consistently ranks farmers, both resettled and communal farm- highest in land under maize has only contrib- ers, did not invest much in crop production uted between 10-12 percent of total maize and their yields are low compared to com- output in the last five years. mercial farmers. “Key insights emerging ... are that, over "The respondents showed that some of and above the effects of climate change and the smallholder farmers in natural regions IV economic hardships, policy in a way signifi- and V have a perception that fertiliser caused cantly contributes to poor output in the agri- crop wilting in light of lower rains and others cultural sector. have the perception that it destroys soil fertil- "For example, if the government places ity,” reads part of the report. more emphasis in growing maize in Mash- “As a result, this has reduced the coun- onaland Central, East and West provinces try’s maize average maize yield which aver- and focuses more on traditional grains and aged 0,478 t/ha. This is below average com- livestock in the Midlands, Manicaland and parator countries such as South Africa which Masvingo provinces, there will be a signifi- has an average yield of 5 t/ha”. cant increase in production for livestock and In 2019, Zambia’s average maize yield grains.” — Staff Writer was 2,3 t/ha. The country’s maize yield has [email protected], Production costs vault up From Page 1 Rights Association (CRA) spokesperson, “As you know ... the board had been sus- said the tariff hike would “take the shine pended and was only reinstated over a week away from the forex auction system, which ago. I am not aware of any resolution for the had brought about price and economic sta- electricity tariff hikes having been made by bility”. the board,” he said. The Zimbabwe Electricity Transmission But veteran economist John Robertson and Distribution Company’s tariff hikes said the recent tariff hike was a “necessary come at a time when the country has been evil”, as the Zimbabwean dollar had lost facing a serious energy crisis, with the com- considerable value against major currencies pany seeking to boost supply with imports such as the US dollar. from South Africa and Mozambique. “The Zimbabwe dollar has fallen so Zimbabwe needs between 1 400MW much that more of them are needed to pay and 1 700MW to meet its daily electricity for anything, Zesa included. Higher costs demand, against a current production capac- will add to inflation, but will also encourage ity of about 1 000MW. more efficiency,” he said. See also Pages 5, 7, 8 and 9 ffie cube, the ational Consumer [email protected] The Financial Gazette October 01-07 2020 | Page 3 National News Mpofu battles to keep assets Tendai Kamhungira application on the basis that it should have been 7 million. However, Mpofu’s lawyer Thembinko- nancial position. Following the cancellation of the Senior Staff Writer made at the High Court or during hearings of the si Magwaliba told the court that the request was bank’s operating licence, Mpofu was asked to pay SC appeal. misplaced, as judgment in the main application $16 790 000 to the liquidator, but he has failed to HE Supreme Court has blocked the Deposit Protection “After considering the submissions and argu- was already pending, making it impossible for do so. Corporation (DPC)'s bid to "submit fresh evidence and ments by both counsel, we are of the view that the the judges in the matter to make a ruling directing According to court papers, Trebo had in 2015 Treopening of a case" in which it is seeking to transfer application has no merit,” Uchena said in the their fellow judges to reopen the case for the made an undertaking to transfer land, buildings in Zanu PF secretary for administration Obert Mpofu’s three ruling, before noting that the application submission of fresh evidence. Bulawayo and another property in Harare to Al- companies into its name. had also been done while judgment He accused the DPC of speaking lied. This comes as the roly-poly politician has been tussling was still pending in the appeals filed with a “forked tongue”. With the assets worth a combined $17 million with the state-controlled entity — liquidators of Allied Bank by Mpofu’s companies, which had “The minutes are irrelevant, con- in terms of the share subscription agreement be- Limited (Allied) — after giving $17 million capital-guaran- lost the case in the lower court. tentious and do not add any value to tween Mpofu's companies and the bank, the DPC tees to the now defunct institution through five properties But Moyo had insisted the five the case as they are not backed by however, claims Mpofu has refused to surren- owned by Trebo and Khays (Trebo), as part of payment for year-old meeting and its resolution any resolutions,” Magwaliba said, der the properties in breach of the pact and thus, shares in the benighted bank. was so key or important since it adding that the requisite to adduce prompting a claim against him. While DPC lawyer Sternford Moyo had approached had "dealt with the actual transfer of further evidence had not been met as When the former Industry minister sprang up the Supreme Court (SC) to seek permission to take over the properties to the bank as part of the DPC had missed numerous opportuni- to acquire and rescue the former Zimbabwe Allied the firms, including Khanondo Safaris Tours and Moya purchase price". Obert Mpofu ties to make its request. Banking Group, it kicked off "quite a fuss" about Security, on account of minutes of a June 24, 2015 meeting The Scanlen and Holderness Allied, majority owned by the his source of wealth, and deep pockets, but he in- — instructing the liquidators to proceed with legal action senior partner minutes also showed that the prop- ex-Transport minister's Trebo, had its licence can- sisted he was a "shrewd and established investor" or proceedings to take over the entities — Justices Tendai erties prices had been inflated as they were only celled by the Reserve Bank of Zimbabwe in Jan- with interests in cattle ranching and other busi- Uchena, Samuel Kudya and Lavender Makoni dismissed the worth $5 million against a total demand of $16, uary 201 after it was found to be in an unsafe fi- nesses". [email protected] SAA ‘mothballed’ as gvt searches for money LL the airline operations of South African Airways (SAA) have been suspended with immediate effect Awhile a process is underway to "put the airline under care and maintenance" until funding discussions between the business rescue practitioners and government are complete. This is according to a Tuesday announcement by the flag carrier's business rescue practitioners. All existing cargo and repatriation flights will be undertaken, but no new ones will be accepted. Already at a virtual meeting of creditors on September 18, the embattled airline's rescue practitioners indicated that they were ready to either implement a structured winding down of the airline and sell its assets, or liquidate it due to no funding having been made available by government yet. A last minute letter, signed by SAA's shareholder, the department of Public Enterprises and national treasury, in- dicating continued attempts to obtain funding or a strategic equity partner made the rescue practitioners give government another week to come up with the money at that time. It has now been more than a week since then. "There has been certain progress throughout the previous week in relation to the securing of funding for the implementation of the business rescue plan, subject to certain terms and conditions," states the latest rescue practitioner letter to creditors. The rescue practitioners say they have engaged with government and "certain funders" that have indicated a will- ingness to provide a portion of the R10,4 billion in funding required for the implementation of the business rescue plan. Engagements are underway with government to secure the remaining funding required to fully implement the business rescue plan. They are also in talks about what the implications would be for the company if it receives only a portion of the required funding. The rescue practitioners said they hope to conclude these details next week. While government is still searching for funds, Mashudu Raphetha, president of the National Transport Movement (NTM) urged the DPE to announce a board of directors for the new SAA in order to restore public confidence in the airline. "We have no doubt that with a competent board and executives, SAA will be a force to be reckoned with again. We appeal to taxpayers to give SAA a last chance to proudly fly the South African Flag and play a pivotal role in the development of the country," he said. — News24 Page 4 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | Page 5 National News ‘Land beneficiaries must compensate white farmers’ Shame Makoshori Companies Editor

HE government must tax land reform beneficiaries to fund its US3, billion Tcompensation package to white former commercial farmers who were kicked off their land at the turn of the millennium, an industry lobby group says. In a widely contested move, the cash- strapped Harare administration in June agreed to pay farmers for improvements — infrastructure, biological assets and clearing of the land — made on the farms. But the Zimbabwe National Chamber of Mthuli Ncube Commerce (ZNCC) has warned President Emmerson Mnangagwa’s administration former president Robert Mugabe arguing against committing fiscal resources to the that it was redressing colonial land imbal- deal, arguing they should come from the ances. land beneficiaries. etails of how much money each farmer, “Fiscus cannot carry the cost/has no or their descendants was likely to get, given capacity to honour the obligation. Benefi- the time elapsed since the farms were seized, ciaries should pay for the farms on 2-year have not been released. mortgages which can be used to compensate However, the government has said it the former white commercial farmers, it would prioritise the elderly when making said. the settlements. The obligation should not be a burden As imbabweans, we have chosen to to the general tax payers. There is need to resolve this long-outstanding issue,” An- introduce a tax to be paid by farmers who drew ascoe, head of the Commercial Farm- benefited from the land reform which will go ers Union representing white farmers, said towards paying the US3, billion”, CC in July. said. arlier this year finance minister, Mthu- The industrial grouping said since Hara- li cube, indicated that the government is re was broke and its proposed payment plan exploring all avenues, including disposing would exert pressure on an already over- some of its assets to raise the US3, billion. taxed population to settle the debt. cube, said paying compensation was a “Government should disclose how it burden worth carrying as it would assist the intends to raise US3, billion to compen- country in the reengagement process as well sate former commercial white farmers,” the as improve the agricultural sector. ZNCC said. Another strategy cube said, would be to The evictions that were carried out 20 issue a 30-year bond instrument which will years ago affected 4 00 white commercial be guaranteed and backed by a good yield to farmers whose land was redistributed to make it attractive. about 300 000 black families, with the late [email protected] Landlords run out of options Omega Ukama these constraints, existing proects in the in- Senior Staff Writer dustrial and retail warehousing sectors pro- gressed steadily. IRST Mutual roperties FM says Further, Moyo said investments in own- subdued economic activity in Zim- er-occupied office park style buildings have Fbabwe, and the rising rate of property been rising as investors restructure invest- voids, is forcing landlords to charge uneco- ment portfolios with a bias towards property nomic rentals. as a hedging strategy. This comes as the country's commercial He said development risk remains high and residential property sector is reeling because of over-supply of commercial prod- from the double whammy of a long-standing ucts as well as uncertainty about supply economic crisis and the worsening effects of chain and development costs. the Covid-19 pandemic. However, it is anticipated that the de- lisha Moyo, FM's board chairman, mand for real estate will increase and that this week said his company's ability to should, in turn, drive development activity. charge economic rentals in line In the sales market, Moyo with inflation and execution of "The emerging said the majority of the trans- development proects, has been long-term trends actions were marked with lim- constrained. indicate remote ited commercial activity due to The absorption of space has working from illiuidity, and depressed debt been insignificant resulting in market instruments. continued excess supply. There is home will become He said FMP expects a re- also pressure to realign the rental supplementary, silient demand of corporate ten- levels to inflation and exchange rather than a ants, as this client group may rates in order to maintain viabil- substitute for the require larger space in order to ity. office. . . embrace non-pharmaceutical However, most property Covid-1 protocols. owners and agents were cautious Tenants are adapting, while in lease negotiations due to excess supply trying to maintain a presence at prime loca- of space and the Covid-19 induced market tions as part of their real estate strategy. risks, where the adoption of remote working The emerging long-term trends indicate and low economic activity heightened un- remote working from home will become certainty for tenants, Moyo said in a state- supplementary, rather than a substitute for the ment accompanying FMP's results for the office, as the offices will provide space for six months to June 2020. collaboration and corporate culture which is He said development activity has also essential for business growth, risk manage- been limited due to inflationary pressures, ment and talent development, Moyo said, foreign currency volatility and supply chain adding that this, coupled with inadeuate disruptions caused by the outbreak of the digital, road and energy infrastructure, the Covid-19 pandemic. negative effects of Covid-19 on the Zimba- The need to comply with non-pharma- bwe real estate sector may not be as adverse ceutical measures such as physical distanc- compared to developed markets. ing, workplace safety protocols and limiting The market dynamics are, thus, unlikely people on construction sites, slowed the de- to change for the traditional commercial real livery of construction proects. estate segment, he added. The chairman, however, said despite [email protected] The Financial Gazette October 01-07 2020 | Page 6 The Financial Gazette October 01-07 2020 | Page 7 National News Zim economy to shrink 10pc: Experts

Paul Nyakazeya and Omega Ukama lions in the region to fall back into extreme Staff Writers poverty," reads part of the World Bank report. Zimswitch Technologies, the country's ma- IMBABWE’S economy will shrink by jor digital payments platform, has this year at least 10 percent this year, double seen a 60 percent decline in transaction vol- Zwhat the government has projected, umes, according to deputy chief executive due to the negative impact of the Covid-19 Zabron Chilakalaka. pandemic which has hemorrhaged an already And while Treasury boss Mthuli Ncube has struggling economy, experts say. been trying to sell the public a projection of This comes as the country's major trade a decline of less than five percent, a leaked partner, South Africa, has reported a 51 per- letter he wrote to the International Monetary cent decline for the second quarter of 2020. Fund in March indicated that the economy Though authorities in Harare rarely pub- would shrink by at least 20 percent this year. lish reliable economic data, independent pro- On his part, veteran economist John Rob- jections paint a grim picture, with the tourism ertson said the rapid deterioration of the industry, which alongside the mining sector Zimbabwe dollar has created an illusionary was meant to anchor the country’s recovery, growth figure. forecasting a decline of 90 percent. "Zimbabweans are again being misled by “On a quarterly basis, we have been seeing high inflation and the falling value of the numbers above 50 percent from major econo- Zimbabwe dollar leads to the rapidly rising mies like South Africa and realistically speak- numbers of Zimbabwe dollars reported by the ing that is probably where Zimbabwe has been authorities. These vast numbers of Zimbabwe hovering, especially at the peak of the lock- dollars all have falling values," Robertson down. On an annual basis, however, we expect said. to see a decline of about 9,5 percent by year On his part Victor Bhoroma, an economic end,” Chris Mugaga, the Zimbabwe National analyst, said while the economy could decline Chris Mugaga Eddie Cross Chamber of Commerce (ZNCC) chief execu- by as much as 12 percent this year, 2021 holds tive told The Financial Gazette this week. the Reserve Bank of Zimbabwe’s monetary Bank the magnitude of the damage is further better prospects provided the country avoids “The numbers projected by the government policy committee, also said the country's eco- visible from the financial woes facing busi- another lockdown and coronavirus cases re- are a fantasy. Looking at the numbers coming nomic decline would be double what the Trea- nesses, where about 90 percent have reported main under control. out of the rest of the world, it is quite obvious sury has projected. having liquidity and cash flow shortages. "Output will gradually rise, buoyed by re- that a 4,5 percent decline is overly optimis- “I think it is more likely to be minus 10 "As a result of these severe economic sumption of trade, the rally in gold prices, for- tic," he said adding that despite projections of percent here. Still much better than South Af- strains, activity in the region (Sub-Saharan eign currency induced price stability and im- normal to above normal rainfall, Zimbabwe is rica,” Cross told this publication. Africa) is expected to contract by 2,8 percent provements in income levels for households. not out of the woods yet and "the Covid-19 The pandemic has shifted consumer spend- this year — the sharpest contraction on record The use of foreign currencies will provide pandemic, as well as current political attrition, ing patterns after massive retrenchments and 5,8 percentage points weaker than previ- business certainty in terms of planning and are choking the economy". which affected disposable incomes. ous forecasts. The fall in per capita GDP is improve consumer spending in the economy," Eddie Cross, an economist and member of According to a recent report by the World bound to be even deeper, likely causing mil- he said. [email protected] Page 8 | October 01-07 2020 The Financial Gazette Leader Page

News Worth Knowing Shock power tariff hike to jolt industry

IN OUR leader last week, we warned about the dangers of knee-jerk and ill- thought out policies, and why President Emmerson Mnangagwa’s administration MUST avoid the seduction of such disruptive policies — given the current sense or modicum of stability in the country. While the focus of that piece was on the unfortunate decision to send Ivy Rupande onto Buena Vista Farm, there is a general consensus that the recent 50 percent hike in power tariffs might fall in that category of ad-hoc policies and apprehension that this will also hit an already-distressed industry. n the other hand, the economic rationale and arguments for a costreec- tive electricity regime, the need to do away or scrap subsidies ― as has been Emmerson Mnangagwa gets a feel of one of the tractors imported from Belarus in Harare's Hatcliffe yesterday. The done in the fuel sector ― and build an efficient Zesa are uite compelling too. tractor is part of the first batch of agricultural equipment worth US$51 million imported from Belarus that includes 800 Without a doubt, the recent hikes are going to result in higher production units of farming equipment. costs for industries, other enterprises such as wheat farmers, possible review of commodity-producer prices and supermarket prices for related products, but a sub-economic tariff structure was also unsustainable. Crucially though, these adjustments MUST also be met with other reforms Zim needs to tighten cyber-laws at Zesa oldings and innovation for alternative power sources. While the tariffs can be increased ten-fold in a month, they might never be IMBABWE is at risk of cyber- (VAS), thereby enabling innovative ferencing.” enough for as long as the utility maintains its shambolic debt collection, loss crimes and cyber-attacks if it product and service capabilities to be In the face of all this, we do not control and other organisational or structural systems ― where more than two Zdoes not immediately establish commercially exploited. have the adequate online consumer thirds of its income reportedly goes to salaries. and enforce the long overdue legal and However, whilst this adoption of protection frameworks to regulate The company, for instance, is owed US$1,2 billion-plus by customers who are institutional framework that insulate the converged ecosystem has furthered internet-based services yet the con- mainly government departments, local authorities and other highly-connected citizens from the various pitfalls they the interests of consumers as they can verged environment is now more intri- people, yet these are still connected to the grid and accessing free electricity. are exposed to online. This is important access multiple internet based services cate than ever before. ence, reforming Zesa ― for the fourthtimer and hand that is ydney Gata owing to the rapid digital revolution, such as web-browsing, emailing, vid- In Zimbabwe, ICTs play a cen- as well as Mnangagwa must be a priority if the country is to forge ahead with which has precipitated convergence eo on demand services such as etflix, tral role in today’s digital economy of technologies, services and devices its economic recovery agenda. online banking and Over the Top Ap- which encompasses e-entertainment, resulting in multiple ICT services and plications (OTT) such as WhatsApp, e-learning/e-education, e-commerce, Zimbabwe cannot talk of growth without reliable and economicallypriced products being offered using the same it has exposed them to various online e-health, e-governance and numerous power to fire up mines and factories, which are so eager to make up for produc- devices for social and commercial en- vulnerabilities which they need to be other forms of ‘e-interaction’. Online tive time lost due to the coronavirus pandemic. vironments over the years. protected from. Despite the prevalence consumer protection has become an Our neighbours, which we usually rely on for excess electricity, are currently The evolution of advanced tech- of these susceptibilities like cyberbul- issue of both rising concern and in- facing their own constraints and, hence, it is in our interest to make the most of nologies has brought about rapid dig- lying, revenge pornography, child por- creasing importance in recent years the little that is being generated internally. ital transformation, which has come nography, online fraud, data privacy, due to rapid technological and scien- Even if there was available capacity for imports, we just do not have the to be known as the Fourth Industrial sexting, cyber grooming, fake news tific transformation. This has led to money to do so. herefore, it is also high time that arare urgently addresses Revolution (4IR). The International and identity theft among others, the increased efforts to redress the various ― by removing ― all barriers or impediments to the ow of capital for new Telecommunications Union (ITU) has existing legal and institutional frame- malfeasances perpetrated by criminals projects. over the years developed global stan- works in Zimbabwe are lagging be- operating in such an online environ- And since the government has invited independent power producers, it is an dards and crafted conceptual frame- hind the reach that this technology has ment. indictment that less than a third of all applicants have gone on to launch and works for assisting administrations attained. The country needs to align its cyber generate power due to the inhibitive nature of processes for private capital to to transition from the first generation Cyber vices are borderless and do security framework with other coun- thrive or ourish. 1G to fifth generation G technolo- not respect country borders, hence we tries to limit the risks associated with While we are still on this, there is no better time to seriously consider more gies. Second generation networks (2G) cannot control or enforce the consum- cybercrime. efficient and affordable alternatives, as the worlds biggest maker of coalfired were for voice-oriented services with er protection using the current mecha- A modern legal framework is over- plants, General lectric, has also announced plans to close down such divisions. low speed data such as General Packet nisms at our disposal. For example, we due as we are trailing behind techno- Environmentally-friendly power is no longer just a politically-correct and Radio Service (GPRS). Third genera- cannot predetermine the content that logical developments. ICTs platforms tion networks (3G) are mostly focused expedient rallying point or call, but the only viable option. we receive from other countries. Some are the new playgrounds where people on high speed data. 3G has been fur- content may be of a criminal nature or play, do business and get on with life, The recently-launched renewable energy policy, which suggests incentives ther enhanced to 3.G and ultimately intended to destroy our ICT systems. but if people are not protected, they for IPPs, is a good starting point to encourage investments and augment other evolved to the fourth generation (4G) The Covid-19 pandemic has vali- become vulnerable to all the vices that progressive measures. and what the ITU refers to as ‘Next can be induced into that field, hence Generation Networks’ (NGNs). it is key that we enforce and seek to Zimbabwe has implemented 3G Open Forum modernise our online protection mech- mobile networks covering almost 8 anisms for the sake of our citizens. We percent of the country, which means with must urgently enact the cyber-security consumers can access multiple media, and data protection law otherwise the EDITORIAL MARKETING voice and electronic services using George Munyaradzi Manyaya country will become a honeypot of Editor-In-Chief & Chief Operating Officer Advertising Manager their smart devices. Normally these cybercrime. The online consumer in Christopher Goko: [email protected] Edwin Vengesa: [email protected] services are now accessed using a Zimbabwe does not have anywhere Deputy Editor Brand Executive Sales & Advertising single device as mobile network op- dated the significance that ICTs play in to turn because we do not have legal Tabitha Mutenga: [email protected] Shingirai Chirikuutsi: [email protected] erators (MNOs) are allowed to offer ensuring that businesses, governments, safeguards just as we do not have an Associate Editor Senior Sales Consultant both voice and mobile data or mobile and societies remain interconnected institution distinctly responsible for Susan Mapininga: [email protected] Eric Chiriga: [email protected] broadband. Convergence allowed and functional. The social distancing combating cybercrime or data protec- Senior Assistant Editor Senior Sales Executives our networks to shift from the classi- restrictions led to an exponential rise tion. The enactment of the cybersecu- Chris Gumunyu: [email protected] Christobel Washaya: [email protected] Christinah Machaka: [email protected] cal voice mobile networks to mobile in the use of technology. Business is rity law will foster online confidence Markets Editor broadband networks, which can carry now being conducted online, students and security, and thus preserve law and Kudakwashe Chideme: [email protected] Sales Representatives - Harare Precious Mazhambe: [email protected] voice, video, data, internet, SMS in the especially children are using the in- order in the cyber space. Group Digital Editor Frank Nyandoro: [email protected] Edreck: [email protected] same network. ternet more than ever before owing Developed countries have gone far Paul Nyakazeya: [email protected] Some network operators have to e-learning. Moreover, children are in furthering the interests of consumers Companies Editor Sales Representative - Bulawayo rolled out the fourth-generation net- accessing applications such as Tik- through protecting the online end user Shame Makoshori: [email protected] Clever Pedzisai: [email protected] work (4G) based on Long Term Evo- tok, Instagram, Dubsmash, Tinder, as they have taken a unified approach Chief Sub Editor Brand Executive - Events lutions (LTE) technology which is Tellonym, House party, YouTube and like the European Union’s General Tawanda Chiwara: [email protected] Kerina Chizemo: [email protected] much faster in terms of access to the Facebook even without their parent’s Data Protection Rules (GDPR) which Staff Writers Brand Executive - Subscriptions internet. One can watch online tele- consent. However, despite all that they Omega Ukama: [email protected] Tatenda Taka: [email protected] were designed to harmonise data pri- Adelaide Moyo: [email protected] vision, use online applications and are exposed to, we do not have suffi- Subscriptions Representatives vacy laws across all of its member Tendai Kamhungira: [email protected] interactive gaming over the internet. Nelson Gahadza: [email protected] Ronald Madiviko: [email protected] cient online protection frameworks countries as well as providing greater Freedom Mashava: [email protected] Elizabeth Nyamaruze: [email protected] This merging of products and service which in itself is a significant risk to protection and rights to individuals. Chief Executive Officer offerings on unified platforms has led the protection of consumers of these However, Africa does not have a com- Production Supervisor Pilate Machadu: [email protected] Kudzai Rushambwa: [email protected] to further convergence. According to technologies. munal approach to consumer protec- renowned Information Communica- According to Potraz’s second tion, let alone a lot of countries do not tion Technology (ICT) scholars like quarter sector performance report for have adequate data protection laws. Eunhee and Stephens, convergence 2020 Mobile internet and data traffic The communications sector (tele- refers to the coming together of previ- increased by ,2 percent to record communication and broadcasting) is ously distinct technologies, primarily 10 407 terabytes from 1terabytes characterised by highly fragmented attributable to the emerging compe- recorded in the previous quarter. Used regulatory frameworks. The legal tencies from advancements in inter- International Internet Bandwidth Ca- and regulatory framework in the tele- net protocol and broadband networks pacity also increased by 2,8 percent communications sector is currently VOLUNTARY MEDIA COUNCIL OF ZIMBABWE and the creation of new products and to record 128 173 megabytes per sec- anchored on the Postal and Telecom- e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced service competencies. This ability to ond from 124 27 megabytes per sec- munications Act of 2000 while the news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of intertwine previously unrelated tech- ond recorded in the previous quarter. Zimbabwe at: broadcasting sector is governed using No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 nologies through an online networked Internetdata traffic will continue to the Broadcasting Services Act. The Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz interconnection has led to the advance- grow due to the increased adoption of two frameworks are distinct. Zimbabwe ment of new Value-Added Services e-learning, telecommuting, and e-con- Full article on www.finga.co.w The Financial Gazette October 01-07 2020 | Page 9

‘We owe it to our to culture of innovation’ Our Deputy Editor Tabitha Mutenga (TM) caught up CN ireless Zimbabwe Limited fended off stiff competition from a strong field of bluechip companies to win the coveted Top Companies Survey Award. According to the judges of the annual survey of Zimbabwe Stock Ex- with Econet Wireless Zimba- change-listed companies, conducted by The Financial Gazette and Old Mutual, the top accolade is awarded to a bwe chief executive, Douglas E company that not only performs exceptionally well on the stock exchange, but also excels on other issues to do with social Mboweni (DM) (pictured), responsibility, environmental, leadership, corporate governance as well as disclosure and investor relation factors. after his company received As we support the coveted award, to find out financial results for the past year contribution to a current issue. our government what he attributes the stellar which, by any accounts, was When Cyclone Idai hit east- business performance to and not an easy one for businesses ern Zimbabwe early last year, and WHO-backed what the market and inves- operating in Zimbabwe. Yet conet was one of the first -or programmes in tors can expect going into the your revenue for the half year to ganisations to respond and to future. August 31, 2019 was ZW$1,3 mobilise humanitarian assis- the fight against TM: Congratulations to you billion and your EBITDA tance and emergency relief on Covid-19, we and your company on winning margin was an impressive 42 the ground to victims of the cy- believe there this year’s prestigious award. percent. What do you attribute clone. Well done! DM: Thank you. We give your company’s outstanding This year again, we see are several all the glory to God who gives performance in that period to? Econet has been quick off the opportunities us and our teams the grace and DM: I have to say first of blocks, leading a spirited pri- ability to create wealth and add all that I am grateful to our vate-sector driven response in for private- value, to serve our customers, to customers whose loyalty and support of government efforts in sector driven create value for our shareholders custom we never take for mobilising resources, sourcing initiatives…” and to make a difference in this granted. Our customers are the ventilators for public hospitals, market. reason why we are in business. PPE for frontline health work- TM: This award is for ZSE- Then I am thankful to the ers and over 100 000 test kits in from our group chairman, Strive listed company performances for clear and enabling leadership the fight against Covid-1. What Masiyiwa who, as you know, is the period covering the full year of our board in all that we motivates Econet in this particu- an African Union Special Envoy do as management and staff, lar effort? in the fight against Covid-1 on to effectively implement our DM: We see Covid-19 as the continent. business model using various It shapes how we execute our value for their money and in a common enemy against us We have benefited immense- strategies. new product development pipe- continuing to contribute to the all; against our staff and our ly and drawn vital learnings and Of course, management line as well as how we continu- growth of this economy through families, our customers and our inspiration from the work he is implemented appropriate reve- ously deploy new technologies the technologies and services we businesses, against our suppliers doing as well as leveraging his We remain nue-optimisation and cost-man- and solutions that solve people’s offer. We believe in the power of and our partners, and indeed partnerships and the several ini- agement strategies in the period problems. Our innovation DNA technology to transform people’s against our country. tiatives he is driving to try and focused on that was under review, in light of shows through in our service lives. And so, to help ourselves, we make a difference where we can. offering our the challenging economic envi- delivery, where — as you may So, our goal is to offer the have to help others, and by help- These include his leadership customers the ronment we are operating in. But be aware — we are increasingly market the endless possibilities ing others we are really helping in developing the Health Status I would hasten to say our strong leveraging digital platforms to that a fully digitalised organi- ourselves because we are in this Report, a mobile-based, global best value for performance had its foundation create channel convenience and sation delivers. And so, as we together. health information platform that their money and in our fundamental values and improve our customers’ experi- deal with the current business As we support our govern- captures a person’s Covid-19 in continuing to business performance culture. ence. challenges in our operating en- ment and WHO-backed pro- testing data and results, and is As an organisation, we em- All these, I would say — vironment, we are fully engaged grammes in the fight against set to help to get economies go- contribute to the braced innovation as a business plus of course the exceptional on our future-focused, on-going Covid-19, we believe there are ing again, especially as private growth of this culture from inception, and we diligence of our staff — created transition from a communica- several opportunities for pri- and commercial travel resumes, economy through apply it consistently to remain the platform for the solid perfor- tions service provider to a full vate-sector driven initiatives, and borders reopen again start- agile, to drive performance and mance we achieved in the period digital service provider. and for Public-Private-Partner- ing this month. the technologies to lead change. Our innovation under review. TM: Besides the overall ships. I am very confident to- TM: Thank you very much, and services we DNA runs throughout the busi- TM: Long-term, what is Top Companies Award, your gether we can defeat this foe. and all the best for you and for offer…” ness, in our internal processes your company’s focus? company also won the Top Life I must also acknowledge the Econet Wireless Zimbabwe. and our cost-management ini- DM: We remain focused on Insurance Award, and the Special leadership and support that we, DM: Thank you and God tiatives. offering our customers the best Merit Award for outstanding as a company, have received bless you! Gvt finally moves on Covid-19 stimulus package

Omega Ukama had received “nothing”. Senior Staff Writer Under the Covid-19 facility, the manufacturing sector, for ex- HE government says it ample, was expected to receive is now ready to process $3 billion to fund its working Tapplications for financ- capital requirements — with all ing guarantees to the private other key segments of the econo- sector as part of its $18 billion my earmarked to receive similar- Covid-19 stimulus package, ly sizeable packages. which was first announced five This also comes as Zimba- months ago. bwe has recently relaxed its lock- Finance minister Mthuli Ncu- down measures to allow firms George Guvamatanga Ralph Watungwa Henry Ruzvidzo be first announced the rescue to operate at full throttle, and package in May, before denoting the Covid-19 economic recovery The Financial Gazette last week "The appetite for lem... banks don’t have the li- to save an economy which the the guidelines and modalities for and stimulus package through that there was no indication that funding is there in business... quidity. They are only lending Finance minister has said could accessing the funds in June, but the normal banking channels," either the government or com- but there is no clear way forward small amounts. Ideally, we re- plummet by at least 20 percent mystery has continued to sur- Treasury secretary, George Gu- mercial banks had released any on the package… as companies, quire external funding for facil- this year. round the programme that was vamatanga said last week in a funds linked to the programme. we cannot go to a bank and say I ities like this,” Ruzvidzo noted. In May, the CZI said Zimba- meant to help the private sector letter to BAZ president, Ralph Christopher Mugaga, the heard about the facility from the Ruzvidzo also said while in- bwe’s economic crisis had esca- ride out the turmoil caused by the Watungwa. Zimbabwe National Chamber government, and they give you dustries had been pushed to the lated beyond expectation during novel coronavirus. In the letter, Guvamatanga of Commerce chief executive, loans," Mugaga said. brink by the coronavirus crisis, the first half of 2020, after com- "Please be advised that, fol- also spelt out "mandatory" sub- said there had been noticeable On the other hand, Henry “hurrying the government to de- panies were confronted by the lowing the various engagements missions that should accompany weaknesses in the government’s Ruzvidzo, the Confederation ploy funding would only worsen double whammy of falling de- between officials from Treasury, applications for the guarantees, recovery plan from the begin- of Zimbabwe Industries (CZI) an already difficult situation”. mand and the deadly coronavirus Reserve Bank of Zimbabwe and which include full details of ning, amid a lack of transparen- president, said bank guarantees And while government pandemic. the Bankers Association of Zim- current borrowing positions and cy about the stimulus package’s would not work for business claims that farmers have been It said so dire was the eco- babwe (BAZ), Treasury is ready debt management strategies in beneficiaries to date. because the domestic financial the major recipients of funding nomic storm that capacity util- to process requests for govern- case of arrears. In addition, he said, authori- system is ill-equipped to handle from the package, the Commer- isation suffered a sharp knock, ment guarantees in line with the Treasury claims that it start- ties seem to have announced the and fund the required outlays to cial Farmers’ Union was also while output plunged by much guidelines and modalities for ed making disbursements of the recovery plan without making cash-strapped firms. among the organisations which bigger margins than anticipated. industry to access funds under fund in June, but business told the necessary engagements. “The funding is still a prob- said last week that its members [email protected] Page 10 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | Page 11 Page 12 | October 01-07 2020 The Financial Gazette October 01-07 2020 Page 13 The Financial Gazette Companies&Markets BRIEFS Innscor takes tariffs I was not fired: Chitanda LAWRS representing former ational Building Society BS chief financial officer thel Chitanda have said their client was not fired from the four-year-old bank”. This follows a Financial Gazette piece suggesting that the ex-Tetrad Investment Bank executive was released from the a- watchdog to court tional Social Security Authority-owned institution for disruptive behaviour”. Nelson Gahadza reasonable third uarter, volumes were severe- Our client was not dismissed and she never committed any Staff Writer ly affected in April and May following limited misconduct. o charges were preferred against her..,” Coghlan, Welsh and Guest partner Wellington Magaya said in a September accessibility to the large informal sector and 23 letter, adding the article portrayed our client as unruly, riotous NNSCOR Africa Limited is contesting reduced trading hours in the formal market and disorderly”. a Competition and Tariffs Commission as a result of the Covid-1 lockdown restric- While Chitanda was the BSs founding financial director, the I(CTC) order to divest from Profeeds and tions,” he said. article was part of a series of exclusive stories about reforms par- pay a 40 million fine for breaching competi- However, he noted, that the gradual easing ticularly executive changes happening at the bank. tion regulations. of trading restrictions saw volumes recovering And following her surprise departure nearly four months ago, CTC in une this year reversed the acui- in une, and this has continued to be the trend bank managing director Lameck anga has also announced his exit. sition of rofeeds 4 percent shareholding by in the early part of the new financial year. Staff Writer Innscor and fined the conglomerate an amount The business continues to work with the euivalent to US1, million for failing to no- relevant authorities to achieve efficient pricing tify the commission of the transaction in terms frameworks that meet the reuirements of all Access Forex targets rural Zim of the Competition Act. stakeholders in the value chain. The matter is currently being appealed ational Foods, according to Chinake, de- MO transfer agent Access Forex Access says it is targeting through the udicial system, and no provision livered a solid performance, notwithstanding rural imbabweans after diversifying into the domestic remittances for this fine has been made,” Addington Chi- a 2 percent volume drop against the com- market last uarter. Mildret Kuinga, the companys business development manag- nake, the groups chairman, said in a statement parative year to 4 000 metric tonnes, driver, said the firm which already offers cross-border remittances as accompanying financial results. en largely by reduced consumer purchasing it is licensed by the South African Reserve Bank and United King- rofeeds recorded a 3 percent decrease power. dom Financial Conduct Authority was targeting the last leg of in feed volumes and a 25 percent decrease in The Colcom division, comprising Triple Addington Chinake the financial chain. day-old chick volumes against the compara- C igs and Colcom Foods experienced an 18 Access Forex has been aggressively growing the cross-border tive year. Chinake, was dominated by revaluation gains percent decline in overall sales volumes year- remittances targeting imbabweans in the iaspora. We launched Chinake said most of this volume decline on financial assets while fair value losses on on-year. domestic remittances three months ago and have been expanding... was within the retail platform, which serves biological assets resulted from the reduction in ig production grew by four percent from to take care of the last mile receiver,” she said, adding this was the small-scale segment of the market, and the real market value of parts of the groups the comparative year, with over 103 000 an- aimed at bringing seamless currency flow in the country. was a reflection of subdued consumer spend- livestock herds, and represents lower real sales imals processed during the year due to im- As the company has recently expanded its business footprint ing, evolving consumer demand in response to pricing being realised within the protein mar- proved genetics and production efficiencies in South Africa and launched an innovative payment application, market trading conditions, and the Covid-1 kets. across the herd. Kuinga also said they were looking at covering imbabwes 210 pandemic. otwithstanding the reduction in net gear- Irvines recorded a 13 percent volume districts through strategic partnerships by the close of 2020. Overall, group revenue for the 2020 finan- ing levels, resulting from scarce liuidity and growth in table eggs during the year under The firm is already present in areas such as Lupane, Gwanda cial year reached 24 billion achieved on the the steady devaluation of the local currency review, with the volumes achieved being a re- and Tsholotsho. Staff Writer back of mixed volume performance, the grad- the net interest expense increased, mainly due cord high for the business. ual removal of subsidies on most products, as to the various monetary policy measures that Frozen chicken volumes were, however, Tongaat: Deloitte faces axe well as inflation-induced price adustments. resulted in a higher cost of borrowing from lo- 21 percent behind the comparative year, while Chinake said throughout the year, the cal financial institutions,” Chinake said. day-old chick volumes were down by 27 per- TOGAAT Hulett chair Louis von euner assured shareholders group focused heavily on balance sheet pro- rofit before tax for the year at 4,44 bil- cent as demand dropped in the small-scale attending Mondays AGM that the board will take action where tection and in building solid working capital lion was percent ahead of the comparative farmer market in response to the current eco- we believe it needs to be taken” but stopped short of committing to bases in the face of steep inflation levels and year, while overall current annual headline nomic conditions, diminished crop yields and taking action against external auditor eloitte. limited local borrowing availability. earnings per share of 40, cents showed an the disruptive effects of Covid-1 lockdown Much of the focus of the two-hour-long meeting was on e- “Management of inventory pipelines is one 84 percent increase from prior year. measures. loittes role in the near-collapse of the company. The fact that we are not public in our discussions does not of the key critical success factors for a busi- Chinake said the increase in other compre- Volumes at the AM Group grew seven mean were not willing or will not take action,” said Von euner, ness of this size and nature, and so working percent against those recorded in the compar- hensive income to 1, billion is largely attrib- adding that eloitte is very aware of the fact that the case against capital and debt financing will continue to re- utable to exchange differences arising on the ative year, and this was enhanced by the con- it is not closed.” ceive priority attention,” he said in a statement translation of foreign operations. tinued growth of the retail network, which saw Shareholder activist Chris Logan, who tagged problems at the of financials for the year ended une 30, 2020. uring the period, the groups Bakery i- the opening of the first Texas Meat Market sugar group as far back as 2014, uestioned whether the board re- Chinake said the groups improved product vision saw overall annual loaf volumes decline outlet in Bulawayo. alised how badly eloitte let the company down”. mix, coupled with a well-priced strategic raw by 3 percent against the comparative year. At atpak, volumes during the year were Logan said the issue was not ust the repayment of audit fees. material investment and enhanced production Chinake said flour availability at the nec- 18 percent above those recorded in the com- If eloitte had done its ob properly and had picked up the and overhead efficiencies, combined to deliver essary pricing level reuired to maintain loaf parative year, primarily driven by increased massive misstatements early on, it would have alerted shareholders an operating profit of 3,8 billion for the year pricing within the regulated framework char- utilisation of the corrugated packaging plant to the gross mismanagement in this company three, four or five under review, representing growth of 4 per- acterised the first half of the financial year, and the newly-commissioned rigids packag- years ago, and shareholders would have been able to change man- cent over the comparative year. resulting in lower production. ing operation which operated close to capacity. agement.” The groups financial income, according to In the second half of the year, and after a [email protected] Moneyweb Page 14 | October 01-07 2020 The Financial Gazette Companies & Markets Nat Foods to preserve Afdis volumes down 22pc balance sheet as Adelaide Moyo uring the half year ended une 30, 2020, Af- Staff Writer dis had 32,8 million net cash in hand. volumes decline The company remitted 3 million in gov- FRICAN Distillers (Afdis) recorded a ernment taxes during the period under review. Nelson Gahadza profit of 371,2 million during the half The firms assets amounted to 1,2 billion Staff Writer year ended une 30, 2020 from a loss of during the review period compared to 814,734 A ATIONAL ,3 million in the comparative period driven by million recorded in the prior year. inflation-induced pricing, a favourable sales mix Gowero said the difficult macro-economic Foods Limited and cost containment. environment has been compounded by the resur- Nsays its focus in The wine and spirits maker recorded a 1 gence of hyperinflation and the Covid-1 pan- 2020 has been to protect percent increase in revenue to 1,3 billion during RT category performance which declined 30 demic. the balance sheet in view the review period from 1,0 billion in the prior percent. However, the recently introduced Reserve of the prevailing infla- period. The spirit category, which dominates revenue Bank of imbabwe RB auction system should tionary environment Multiple negative economic factors resulted generation, recorded a 11 percent drop in volume ease availability of foreign currency and stabilise Todd Moyo, the in reduced consumer disposable incomes and re- compared to the prior period. exchange rates. The company will continue to ex- groups chairman, said sultantly lower sales volumes in comparison to The RT performance was negatively affect- plore strategies designed to best serve the market management and funding prior periods. The business environment towards ed by limited outdoor activities due to Covid-1 under the prevailing market conditions and en- of raw material pipelines the end of the trading period was negatively af- lockdown restrictions in the last uarter, Gowero sure business continuity, he said. remained a key priority, said. Todd Moyo fected by the advent of Covid-1, which signifi- The board proposed not to declare a dividend both in view of the con- Afdis earnings per share increased to 31,47 cantly altered the operating landscape,” earson due to uncertainties presented by the Covid-1 strained local liuidity as well as the extended lead Gowero, the companys chairman said cents during the half year compared to a loss of pandemic as well as the need to invest in some times brought about by the Covid 1 pandemic. Volumes declined by 22 percent compared to 4, cents recorded during the comparative pe- necessary capital projects. prior year, impacted largely by the ready-to-drink riod. [email protected] As a result of these efforts, the group currently has adeuate pipelines of all key raw materials to trade sustainably in the year ahead,” said Moyo in a statement accompanying financial results. The groups balance sheet shows that inventory grew to 2, billion from 834 million in 201. The group also invested 1,3 billion in property, plant and euipment, as it sought to improve efficiencies that would result in reduced costs. uring the period under review, overall volumes were 2 percent lower at 4 000 tonnes compared to prior year levels. Whilst there were year-on-year volume declines across all categories, the uarterly volume trend during the year was largely stable, with the exception of seasonal variations in the maize division,” Moyo said. However, despite lower volumes, revenue for the group increased 2 percent to 13 billion, which Moyo described as reflective of higher selling prices following the progressive removal of most grain subsidies. He said gross margin dollars increased by 48 percent, below the increase in revenue as the group focused on competitively pricing its products. Operational expenditure increased by 4 percent compared to last year driven by the optimisation of cost structures. As a result, profit after tax increased by 4 percent to 1, 38 billion. The company also declared a final dividend of 44,71 cents per share payable in respect of all ordinary shares. In terms of operations review, flour milling volumes declined 3 percent compared to prior year, as the significant subsidies which existed last year were removed mid-way through last year and since then, flour volumes have largely stabilised. Moyo said volumes of the prepack flour segment was firm, with volumes increasing nine percent over last year due to increased home baking during the Covid 1 lockdown. The maize milling division saw volumes declining five percent on last years high base. Moyo said there was a loss in volume momentum in the last uarter as the subsidy programme was progressively reduced and maize from the local harvest became available. The stockfeeds divisions volumes declined 2 percent last year in line with overall market performance. Feed prices increased in line with the removal of subsidies on maize and this, together, with constrained demand for protein products led to the reduction in demand,” Moyo said. Volumes in the groceries division declined 22 percent compared to the prior period largely driven by a reduced demand in rice on the back of affordability. Moyo said focus has been placed on recovering volumes in this unit and there was a pleasing improvement during the final uarter. The snacks and treats division saw volumes reducing by 30 percent as consumers tended to procure essential basics. In addition, Moyo, noted that the removal of grain subsidies impacted the relative affordability of both snacks and biscuits. He added that the Covid-1 lockdown also had a negative impact on demand for both snacks and biscuits as these products tend to be consumed on the go”. ure Oil Industries, a unit where ational Foods holds an effective 40 percent stake, saw overall volumes declining 18 percent. uring the year, cooking oil volumes declined by 24 percent, a similar trend with other basic food categories. Moyo said the group continues to support local farming, although the schemes were heavily curtailed compared to last year due to the shortage of bank funding on the back of constrained market liuidity. uring the 201 winter wheat season the group supported 2 00 hectares of local wheat which produced 10 400 tonnes. [email protected] The Financial Gazette October 01-07 2020 | Page S1

Econet, OK, Delta win big at TCs

CONET Wireless, the country’s largest mobile oper- eign investors. recognises a company that upholds good envi- Ecobank, was capped the best bank, while Ned- ator, was recently crowned the best performing com- “All our small towns are not manufacturing ronmental, social and governance principles and bank was the runner-up. pany on the local bourse in this year’s edition of The anything and it has to start now. It is a process operates an ecologically friendly business model The award is based on both quantitative and E which can be done in 10 years if done properly,” that promotes the efficient and sustainable use of qualitative attributes. Financial Gazette’s Top Companies (TCs) Survey. A panel of judges and analysts, independent of both The Rukuni said. resources and conducts value adding social devel- The aim of the survey is to promote good cor- Financial Gazette, and the sponsor, Old Mutual, comes up Padenga Holdings won the 2020 Environmen- opment programmes in the community. porate governance practices, ethical conduct and with the criteria and categories for the winners. tal, Social and Governance (ESG) award, which In the banking sector, the pan-African bank, corporate social responsibility. Beverages maker elta Corporation was the first runner-up, while retail group OK Zimbabwe was crowned second runner-up. The mobile operator also walked away with the Special Mention Award, which recognises outstanding achievement or contribution to a current topical issue. This year’s awards recognised companies that were instrumental in assuming a corporate social responsibility role in the wake of the Covid-19 pandemic. Econet, as a group, again also walked away with the top award under the Life Assurance Category. Econet Life was recognised as the best performing Life Assurance Company as determined by a quantitative assessment of Insurance and Pensions Commission (Ipec) returns submitted over the review period. The telecoms giant has consistently been among the top performing companies in Zimbabwe since listing on the Zimbabwe Stock Exchange in 1998. Delta Corporation also walked away with the Disclosure and Investor Relations Award of the Year. The award rewards companies that are vigilant and make full disclosure of information about their business, satisfy the requirements by regulators, stock exchange disclosure rules as well as disclose information in a timely manner and sim- plified financial language. Hospitality firm, African Sun, won the Tangible Investor Returns Award for 2020. The award recognises a company that would have delivered the best tangible gains to investors during the year. The 2020 short-term Insurer of the Year was won by Zim- nat Insurance. Speaking at the event, guest of honour Mandivamba Rukuni, a development analyst, said the country needs to re- imagine and rebuild a new industrial system. “Industrial upgrading is the path to a more open dynamic and inclusive economy. “Covid-19 has created havoc for us, but on the other side, there are some positive aspects that can inform our future,” he said. “For us, Covid-19 is a wake-up call to rebuild our industrial and food systems because over relying on global and regional markets is not going to work all the time. “As a matter of fact, as we rethink the agro-industrial process for imbabwe, we have to think first and foremost, how do we have self-reliance, and how do we rebuild our industrial processes from basics. “We cannot rebuild the old industrial system. It has to be a new and re-imagined one. That is why I am talking about upgrading rather than substitution by bringing in a few for-

Mandivamba Rukuni was the guest of honour at the event. Page S2 | October 01-07 2020 2020 TO COMAIS AWARS SCIAL FATUR The Financial Gazette Top Companies adjudication team

Simbiso Musa (Chairperson) SIMBISO is an investment analyst with the National Social Security Authority (NSSA). Currently responsible for management and analysis of both listed and private equity portfolios, Simbiso has 10 year's professional experience in the investments industry with extensive knowledge in corporate restructuring, portfolio risk management and financial modelling. She holds a Bachelor of Commerce degree in Finance from UST and Masters in Business Administration from the same university.

Simbarashe Mangwendedza SIMBARASHE has over 12 years experience as an investment professional in Zimbabwe working under different business units for blue chip rated financial services companies as well as an up and coming investment banking group. Simbarashe is currently the senior investments analyst for First Mutual Wealth and supervises the research function and subseuent portfolio house-view recommendations for the FMHL group. He holds a Bachelor of Science Honours egree in conomics from the University of imbabwe, and plans to complete level III of the CFA program having passed the Level 2 exams. Simbarashe is at an advanced stage with regards completing the Data Scientist ython Career Track with ata Camp ew ork. rior to oining First Mutual Wealth, Simbarashe gained valuable experience as both a buy side and sell side research analyst at Old Mutual Investment Group as an economic analyst and as the research analyst at Old Mutual Securities and Senior Associate of Research at Akribos Research Services.

Manatsa Tagwireyi MAATSA is a licensed securities dealer with the Securities and Exchange Commission of Zimbabwe. He holds a B.Com Hons degree in Business Management, an MBA in Banking and Finance, and holds securities dealership certificates from the South African Institute of Financial Markets SAIFM. Manatsa is a registered Level III candidate in the CFA program. Manatsa has extensive experience in investments analysis, securities trading and advisory. To date he has successfully concluded transactions related to company restructurings, capital raising and divestures. Manatsa has been a member of the Top Companies Surveys analysts and udges panel since 201. ...continued to S5 The Financial Gazette 2020 TOP COMPANIES AWARDS SPECIAL FEATURE October 01-07 2020 | Page S3 Top companies in pics ...

A panel of judges and analysts, independent of both The Financial Gazette, and the sponsor, Old Mutual, comes up with the criteria and categories for the winners. Page S4 | October 01-07 2020 2020 TOP COMPANIES AWARDS SPECIAL FEATURE The Financial Gazette 2020 Top Companies awards in pics . . .

This year’s awards recognised companies that were instrumental in assuming a corporate social responsibility role in the wake of the Covid-19 pandemic. The Financial Gazette 2020 TO COMAIS AWARS SCIAL FATUR October 01-07 2020 | Page S5 Top Companies adjudication team

...From S2 YVONNE holds a Bachelors in Business FARAI is a seasoned investment professional Administration majoring in Finance from with over 13 years experience in the imba- Solusi University and an xecutive Certificate in bwean financial markets. Investments and Portfolio Management from the He is a fundamental analyst with a bottom up University of imbabwe. She has over 10 years approach to investment appraisals. Farai is of experience in research providing coverage on currently the General Manager Conventional both euities advisory services and economic Investments at Zimnat Asset Management, analysis. where he leads a team of passionate invest- Yvonne is currently part of the Corporate ment professionals. Finance team at FBC Bank Limited specialising He is married to Nonsi and has two chil- in structured investments. She is also a dren, Makatendeka and Mukudzei. member of the working party involved in the establishment of the Sustainability Framework of the FBC Group.

Tinashe Yafele Farai Gwaka TINASHE holds a Bachelor of Science Degree in Mathematics and Statistics. He is an investment professional with eight years’ experience in investment research, financial analysis, responsible investment and portfolio management at Old Mutual Investment Group. Tinashe is a CFA Level 3 candidate.

Linda Tsarwe LINDA is a CFA Charterholder and holds a Bachelor of Commerce degree in Banking and Finance. She has 10 years’ experience in the investments industry, having worked previously for Zimnat Asset Management and Old Mutual Investment Group. Currently, Linda is the investment manager at DBF Capital Partners, an investment holding company.

Evonia Muzondo EVONIA is a financial analyst with Imara dwards Securities. She has over 15 years’ experience in the financial services industry covering investment analysis and portfolio management, economic research, treasury management and dealing and equities administration. Prior to joining Imara, Evonia worked for the Reserve Bank of imbabwe before oining TFS Management Company where she rose through the ranks to the position of Head of Research. Evonia is also an avid writer, having contributed insightful economic and investment articles to reputable local newspapers and magazines.

Yvonne Saiti Page S6 | October 01-07 2020 2020 TOP COMPANIES AWARDS SPECIAL FEATURE The Financial Gazette The Financial Gazette 2020 TOP COMPANIES AWARDS SPECIAL FEATURE October 01-07 2020 | Page S7 Top Companies 2020 judges’ report

Simbiso Musa cluding micro-finance institutions, whether n Best SG practices recognises a citing developments such as Victoria Falls deposit-taking or not. company that upholds the sustainability and Stock xchange on the cards giving the Top HE 2012020 financial review process ex- n Top insurer long-term recognises ethical impact of their business model to the Companies Survey more urisdiction for posed the economic structural weaknesses ex- the top life insurance company licensed by operating environment performance assessment. Tacerbated by natural calamities spanning from the Insurance and ensions Commission of n Special mention this year it recog- The udges convey their warm congratu- Cyclone Idai to the Covid-1 pandemic and all this in imbabwe. nises a company that was highly responsive lations to the winning companies in the var- the midst of a hyperinflationary environment. n Top insurer short-term recognises to the social needs of the country in light of ious award categories. The dynamics of hyperinflation threatened operat- the top casualty insurance company licensed the devasting effects of Cyclone Idai. We also urge others to benchmark them- ing business models and the analytical landscape had by the Insurance and ensions Commission As per tradition, the udges maintained a selves against the criteria and strive to be to be adusted accordingly. Whereas in 201 we were of imbabwe. Special Mention Award that goes to a com- winners next year. talking about recalibrating the model for evaluating n Best disclosure and investor relations pany that may not necessarily have been a We remain grateful to the sponsors, Old companies in the midst of a harsh operating environ- recognises a listed company that goes out winner in any of the above categories but Mutual, for their continued support of this ment, 2020 was all about establishing an entirely new of its way to provide as much information as demonstrates some positives towards cre- initiative. model which was relevant to hyperinflation. possible to the investing public, through de- ation of shareholder value that is worth flag- As usual, Old Mutual was excluded from On one end we had companies struggling to report tailed and informative annual reports, inves- ging out. participation by virtue of being a sponsor in performance timeously because of the reuirements of tor relations website, analyst briefings, etc. Overall, udges noted the improvement in these awards, in order to preserve the inde- hyperinflation reporting and on the other end we had n Best tangible investor returns recog- sustainability reporting amongst companies. pendence and integrity of the awards. analysts trying to make sense of the reported numbers. nises a company that managed to reward its This enhances information for investors' Judges – Simbiso Musa (Chairperson), Sim- udges were seized with the task of contextualising shareholders the most during the past year decision-making and therefore, improves li- barashe Mangwendeza, Evonia Muzondo, the numbers by removing artificial performance and through dividends and capital gains that are uidity on the bourse. Tinashe Yafele, Yvonne Saiti, Farai Gwaka, sticking to core fundamentals and further unpacking supported by volumes of trades. The capital markets continue to with ex- Linda Tsarwe and Manatsa Tagwireyi. them. The udges' task this year was that of building a new model which, despite economic challenges, continued to extract top performance. Whereas some school of thought would argue to say, can we ever have a top company in a hyperinflationary environment Our view was that top companies are fortified in hyperinflationary environments. The design of a new model involved creating a new universe for ualitative factors evaluating strategy, leadership, agility and compatibility of business models to hyperinflation. Additionally, we rationalised the uantitative factors and added a lot more weight towards ualitative factors in order to measure fundamental performance in such an environment. An illustration would be where previously financial health assessed the liuidity, solvency, profitability and the operating efficiency of a company. With hyperinflation insolvent companies turned to being solvent overnight and we had to adust such a metric with regards to its weighting as well as its com- position and eventually give a new definition to solvency which was more applicable to our environment. The overall take away was that given our pecu- niary history in imbabwe, where economic cycles have been uite repetitive in 10-year cycles, it only takes an agile company to swiftly adapt to the different phases of the cycle effectively. In light of the threat to business models posed by the difficult operating environment, sustainability concerns were key in the model design. In simple terms, we carried out a business model test awarding fundamental improvement of performance as opposed to inflationary-enhanced performance. The theme therefore, this year was evaluation of growth in real terms”. In our evaluation criteria, we considered both uantitative and ualitative factors, premised on the following guiding principles. n The recognition of consistent financial performance sustainability of business model strategic leadership and adaptive culture healthy financial position and superior tangible total returns to investors or shareholders and nThe promotion of good corporate governance practices, including providing adeuate disclosures, transparency and accessibility to investors and analysts environmental awareness and sustainable business practices and corporate social responsibility. We maintained a robust scorecard of uantitative metrics which covered the following n earnings performance - including assessment of growth and uality of earnings n size - including levels of revenue generation and total assets n financial health - liuidity, solvency, profitability and operating efficiency and n investor returns - including issues of share liuidity, share price growth and payment of dividends to shareholders. This years awards recognised winners in the following categories n Top listed company recognises the top company listed on the imbabwe Stock xchange excluding banks and insurance companies. n Top banking institution recognises the top bank licensed by the Reserve Bank of imbabwe, ex- Page S8 | October 01-07 2020 2020 TOP COMPANIES AWARDS SPECIAL FEATURE The Financial Gazette Ecobank revenue up $1,47 billion COBANK Zimbabwe (Eco- ment. bank) revenue amounted The bank’s cost to income ratio Arden targets robust Zim operations E to $1,47 billion during the remained contained and increased half year ended June 30, 2020 slightly to 15,43 percent during RDEN Capital says it seeks to creation of a strong balance sheet with driven by fee income and com- the review period from 14,56 per- build robust operations in Zim- capacity to anchor growth. missions which increased by 1045 cent. babwe after increasing its share- “It is anticipated that consolidation of percent. Moses Kurenjekwa, the bank’s A holding in African Sun Limited (ASL) to ASL and Dawn’s businesses will create The pan-African bank record- managing director, said Ecobank 61,48 percent. a robust balance sheet, with enhanced ed a profit of $817,205 million will continue to adopt a cautious It says ASL will in turn hold 100 per- financial leverage for unlocking future during the half year ended June approach in exploiting opportuni- cent of the issued share capital of Dawn developmental capital for the combined 30, 2020 compared to $803,596 ties as they emerge to protect the Properties. business to survive the Covid-19 down- million recorded in prior period. franchise. Currently, Arden holds 57,67 percent turn, protect jobs, as well as guarantee Fortunate Chisango, the bank’s “Covid-19 may be with us for of ASL and 66,81 percent of Dawn. future for the business and its stakehold- chairperson said Ecobank will an extended period and business- Under the transaction, ASL seeks to ers,” Arden said in an announcement. leverage on digital platforms and es need to embrace it and devise acquire all the issued ordinary shares of The transaction will also result in space to provide service to its ways to minimise its disruptions. Dawn, for an aggregate consideration shared costs and improved efficiencies, of one ASL ordinary share for every including compliance costs of a dou- market segments. "Despite this reality, we also 3,988075946 Dawn ordinary shares held. ble-listing of essentially the same busi- Interest income growth was anticipate a slight improvement This will result in the creation of 616 ness, cognisant of the fact that Dawn’s 590 percent lower reflective of in the operating landscape as the Moses Kurenjekwa 129 718 new ASL ordinary shares. revenues are tied to the current ASL op- subdued lending in response to exchange rate stabilises,” he said. According to Arden, the consolida- erations. the depressed business environ- newsdesk@ngaz.co.zw tion of the businesses will result in the [email protected] PPC Zim launches new product range RETORIA Portland Cement (PPC) Zimbabwe has launched a new product range as the firm Pseeks to address the challenges of cheap and substandard cement imports flooding the local market. The cement maker launched its latest product range called the Surerange, which is made up of six exceptional products namely: Surewall, Surebuild, Surecem, Surecast, Sureroad and Suretech. PPC Zimbabwe managing director, Kelibone Masi- yane, said being champions of innovation and manufacturing products of the future was their style. He said the latest product range was being launched because PPC Zimbabwe is optimistic of the massive construction projects in Zimbabwe in light of attaining an upper middle-income economy by 2030. “We are very optimistic in terms of the country and this is why we are looking ahead and launching products that we believe are for the future,” said Masiyane. The PPC Zimbabwe boss said Surerange provides the ideal cement to complete any construction project, no matter its style, size or scope. “There are challenges facing the construction sector today as cheap, somewhat substandard cement is flooding the local market, mostly through imports. This imported cement, when used in construction projects, results in infrastructure that lacks structural integrity. “The longevity of the investment is thereby compro- mised, and Zimbabwe’s economy bears the cost. Addi- tionally, the cement industry’s viability is challenged and job security and economic growth are challenged,” said Masiyane. [email protected] Lager consumption down in lockdown ELTA Corporation (Delta) says beer consumption declined in the three months to June due to Da combination of lockdown measures as a result of the Coronavirus (covid-19) pandemic and an unsta- ble economic environment. In a trading update for the first uarter ended une 30, Delta said lager beer volumes declined by 18 percent compared to the same period last year, noting the low outturn in prior year during the transition to the mono-currency system. “Trading in al- coholic beverages was restricted to off premise outlets for home consumption in line with the covid-19 guidelines. "Sorghum beer volume in Zimbabwe declined by 51 percent for the quarter due to limited access to the market particularly in trade channels such as bottle stores and bars,” Alex Makamure, Delta company secretary said. “The category (lager and sorghum) witnessed higher price adjustments driven by escalation in the cost of imported inputs such as packaging and brewing cere- als,” he said. At Natbrew Zambia, volume increased by 17 percent during the period under review, benefiting from price moderation and the ongoing measures to revive volumes. [email protected] The Financial Gazette October 01 -07 2020 | Page S9

Pfumvudza seeks to achieve food self-sufficiency

HE Pfumvudza farming concept, which has been adopted by the government, revolves around the Tutilisation of small pieces of land and application of correct agronomic practices as part of efforts to ensure household and national food self-sufficiency. This concept was first spearheaded by a imbabwean farmer by the name of Berin Stockil. It is an accurate description of the hope embodied in the method and message of Foundations for Farming FfF. FfF is a local Christian ministry that seeks to help vulnerable communities escape hunger and poverty by becoming profitable farmers through faithful stewardship of the resources available to every farmer. These are sunlight, soil, rainfall and their own labour. FfF was birthed in imbabwe by Brian Oldreive, who saw the unsustainable effect of ploughing and conventional farming practices on the land. As a commercial maize farmer in imbabwe in the 180s and 10s, Bri- an was able to successfully convert the entire 2 500 hectares of land that he farmed to follow the conservation agriculture principles of: 1. Minimum soil disturbance no ploughing 2. Thick mulch cover of crop residues, leaves, grass- es, cut weeds and To Page S10 Page S10 | October 01 -07 2020 PFUMVUDZA SPECIAL FEATURE The Financial Gazette Pfumvudza seeks food self-sufficiency

From Page S9 woodlands burst to life for a few glorious Get ready. other decaying organic matter (no burning) weeks. The hot, dry, lifeless veld domi- In 2011, with Berin Stockil and Brian Oldreive on 3. Crop rotation (alternating every sea- nated by weathered khaki, brown and grey its board of trustees, Foundations for Farming adopt- son between maize and a legume like cow granite kopjes turns into a kaleidoscope of ed Pfumvudza as the brand name for what has be- peas, ground nuts, soya or chick peas). ochre, amber, peach, russet and ruby. The come its signature training. 4. High management, or precision farm- new leaves of the Msasa and Munondo The Pfumvudza plot is a cropping field that ening, to reduce wastage and increase effec- trees shimmer in the sultry breeze as farm- ables a farmer to implement the four principles of FfF tiveness and profitability (no broadcasting ers return to the fields after endless months to a high standard. or scattering of inputs or seed). of cold, dry, winter in the rugged heart of The 4 FfF principles are: Berin attended a Foundations for Farm- Sub-Saharan Africa. 1. On time: The optimal date for planting in Zim- ing conference in 2010 and was inspired The turning of the leaves is a sign that babwe according to the heat units of the sun that al- by the sight of the national maize-yield- winter is drawing to a close. It is an extrav- low for the maximal growth of our traditional sum- record-holder, Brian Oldreive, holding a agant signal to every farmer watching from mer crops is November 25 every year. badza (hoe) aloft and declaring “a man or every dwala or anthill that the season is ap- 2. At standard: In order to achieve success in any a woman with a hoe can be the best farmer proaching. For hungry villagers it is a hope- business venture it is important to do things well to in the world!” ful time. For parched lips and sun-drenched achieve a high quality product. This ensures profit- Berin sensed that the winds of change soils it is a season of yearning expectation ability and sustainability. In farming, the correct pop- were beginning to blow through the barren for the rains. ulation density and maximum growth rates is only fields of Zimbabwe. The dusty sky is often filled with a thick achieved through precision. Pfumvudza literally means the changing haze from wood-fires and dry earth, causing 3. Without wastage: It is obvious that if we use of the leaves or “new season.” sunsets to bleed across the horizon and add excess products for our business activities and then In September, Zimbabwe’s miombo Brian Oldreive to the spectacle of this sensational season. waste these inputs by misusing or misplacing them, we will incur unnecessary losses in our commercial activity. The same is true in farming. Broadcasting seed and fertiliser is inefficient and wasteful. Plant- ing late wastes, or misses out, on the heat units of the sun when they are available. Not using a grain protectant for storage results in losses to pests and disease. 4. With joy: When a farmer applies the first three principles to their farm there is dignity and hope that gives them strength and pride. Suddenly they are overcome with joy and become faithful, productive, sustainable stewards of the land. This results in pro- ductivity, self-sufficiency, profitability and joy! The Pfumvudza plot has already brought transformation to several communities and been tried, tested and refined since its inception in 2011. In 2020, the Permanent Secretary for the Ministry of Agriculture, Dr John Basera, invited the leadership of FfF to visit the ministry and explain the concept that was then gaining attention on social media platforms for its simplicity and ability to produce astounding yields despite a crippling mid-season drought. The permanent secretary requested a partnership with Foundations for Farming to train government Agritex extension staff to implement the Pfumvud- za concept to aid the agricultural revolution that the ministry hopes will bring food self-sufficiency to the nation in 2021. The Pfumvudza plot has achieved such success because it is small enough to plant on time: at just 16m x 39m land preparation, or the digging of 1 456 small holes (badza head width, 8cm depth) can be done in one day. At standard: neither traditional animal traction, nor automated machinery, can perform higher precision farming than a person with a badza (52 straight lines, 75cm between rows, 3 kernels per hole, 60cm between holes). Without waste: as farmers conserve water, nutrients, time, resources and optimise the impact of sunlight and household labour they become faithful stewards and easily break the cycle of dependence and enter profitability. With joy: farmers that work with purpose discover the joy and dignity of success and enjoy the fruits of commitment and a strong work ethic. FfF has been faithfully teaching this simple, sustainable farming methodology that feeds a household for a year off just one-sixteenth of a hectare, and sharing the life-giving message of hope in Jesus Christ that is threaded throughout the farming narrative to the most vulnerable and downtrodden communities in Zimbabwe free of charge to the participants for nine years. With the help of international donors, 28 communities were immersed in the culture of stewardship at FfF’s international training station in Harare. Each community was visited monthly for ongoing mentor- ship, in-field guidance, discipleship and encourage- ment. These desperate, despised communities quietly began to be food secure. These uneducated, remote villages began to teach others. They slowly became oases of hope and healing in a hungry and hurting land. Recently, an elderly widow stood triumphantly in front of her bulging grain storage bin and recounted the story of her local counsellor coming to find her to tell her that her name was on the list of vulnerable and food-insecure villagers in that community. The dutiful aid worker informed her that she was to receive a large bag of upfu as her food handout for the hungry season. She proudly said, “No! I don’t need it, I was taught to farm by Foundations for Farming and I am not hungry I have grown enough food to feed myself.” The Financial Gazette PFUMVUDZA SPECIAL FEATURE October 01-07 2020 | Page S11 Why Pfumvudza makes sense for Zim

Kudakwashe Mashanda

OIL is the anchor of all life on earth. Unfortu- nately half of the world’s soil is estimated to Shave been lost over the past 150 years, with more losses expected as a result of conventional tillage. With the United Nations estimating a population increase of one billion people on earth and three million people in Zimbabwe by 2030, there is no doubt that soil conservation is key in increasing and sustaining food security. Superfert Fertiliser wholeheartedly supports the Pfumvudza concept because of its long-term sustainable approach to attaining food security for Zimba- bwe. The Pfumvudza concept champions a blend of scientifically-based methods that allow small-scale farmers to increase their yields in a cost effective and sustainable manner. Below we discuss a few reasons why the Pfum- vudza concept is a sound approach for small-holder farmers to play a significant role in Zimbabwe’s food security. Maximum resource utilisation and increased nutrient use efficiency Pfumvudza involves using a combination of both organic and inorganic fertilisers. The inorganic fertilisers, such as Superfert Compound D, ensure that the plant gets a boost of sufficient nutrients early in the season. They also provide critical macronutrients like potassium that usually cannot be provided in sufficient amounts by organic fertilisers. The inorganic fertilisers also introduce nutrients like sulphur, that are crucial in helping the plant increase its nitrogen use efficiency which results in increased maize yields. The organic matter which mainly consists of livestock manure, compost and mulch increase the soil’s water and nutrient holding capacity. This allows the soil to hold nutrients like ammonium nitrate around the plant root zone, allowing for more time for nutrient uptake and absorption. The beauty of this concept is that it makes use of simple inputs that can be found in almost every small-scale household without any additional cost to the farmer. Simple materials like cow dung, compost, straw and crop residues make up the key components organic matters for Pfumvudza. Another key element to consider is the substantial amount of fuel being saved as well as the reduction in greenhouse gas emissions that are usually associated with conventional farming when producing crops in this manner. The beauty of Pfumvudza is that in the long term the build-up of organic matter over the years will increase crop nutrient efficiency and soil biodiversity, which can only decrease the cost of production while increasing crop yields. Climate adaptation and soil conservation One of the key components of Pfumvudza is the use of mulch when planting the maize crop. Mulching may seem like an old fashioned farming practice but it has never been more relevant given the devastating effects of climate change and unpredictable weather patterns on soil. The key advantage of mulching is that it can prevent up to 40 percent of all ground evaporation, increasing both water availability to the plant as well as nutrient uptake. A key thing for farmers to understand is that nutrients are taken up by plants as solutions, which means that you can put down as much nutrition in the ground as possible but if there is no moisture to help those nutrients dissolve and enter through the root zone all that nutrition may not lead to any significant yield increase. This means that moisture retention through mulching has the potential to increase moisture availability and yields significantly. The same concept using minimum tillage methods is being adopted by commercial farmers around the world and seems to be yielding positive results. Mulching also helps in soil conservation as it eases the effects of rain drops on the soil as well as preventing soil runoff, hence reducing soil erosion. The maintenance of soil structure is also assisted by mulching as it reduces the effects of compaction from humans and machinery. A good soil structure will promote better root volume and drainage. This will prevent root death from suffocation due to waterlogging conditions and stunted root development as a result of compaction. Other benefits of soil mulch include reduced soil salinity and addition of organic matter through mulch decomposition. The Pfumvudza concept has many benefits that go far beyond the scope of this article. What is essential is for famers to appreciate the science and thought processes behind it, as well as its adaptability as a climate-smart technology. Pfumvudza has the potential to build Zimbabwe into a food secure nation once more. l Mashanda is an agronomist at Superfert Page S12 | October 01 -07 2020 PFUMVUDZA SPECIAL FEATURE The Financial Gazette Understanding soil pH key to successful farming

Dzidzai Caleb Munhutu soil is among the most important characteristics ou will realise that at almost every farming Type of rocks from which the soil developed deter- for crop production. Therefore, for successful enterprise in the country, there is always use of mines the soil pH. Soils that developed from granite mate- HE thin layer of soil covering the earth’s farming, it is imperative for the land user to con- Ammonium Nitrate almost every year. Ammo- rial are likely to be more acidic than soils developed from surface represents the existence of life. sistently take responsibility of adjusting the soil nium based fertilisers are major contributors to calcareous shale or limestone. TTaking care of it is of paramount im- pH by making use of soil conditioners. In Zim- soil acidification. itrogen in the ammonium Effects of soil acidity portance as it perpetuates the very existence of babwe, the optimum pH range for most crops in form is readily converted to nitrate and hydro- a utrient availability Soil acidity affects nutrient mankind. The soil is a biologically active medi- between . and .. An assessment in commu- gen ions in the soil. The nitrate can be taken availability to crops. In very acidic soils, major plant nutri- um filled with pore spaces that allow penetra- nal areas of imbabwe that was done in 2012 up by plants and if that does not happen, it can ents that include nitrogen, phosphorus, potassium and sul- tion of water and circulation of air that are much revealed that 77 percent of the soils required ad- leach away from the root zone, leaving behind phur may be unavailable, or only available in insufficient needed by micro-organisms and plants. In its dition of agriculture lime for most crops as the hydrogen ions thereby increasing soil acidity. quantities. In addition to being chemically less available support of biochemical processes, the soil can pH was below .0. For that important reason, This is happening at almost every farm every to plants, nutrients may also be positionally less available be likened to the human skin, as many scientists this article will centre on soil acidity. year. due to poor root growth in acidic soils. lants can show would put it across. Causes of soil acidity b) Removal of stova deficiency symptoms despite adeuate fertiliser applica- As a medical practitioner would assess ail- An acid is defined as a substance that tends to As crops grow, they will be uptaking nu- tion. This is affecting most farmers in the country and de- ments through the skin, so do farmers when they release hydrogen ions (H+). The strength of the trients from the soil and the nutrients include mystifies the myth of blaming fertilisers for not being as take care of the soil. Good skin or good soil re- acid depends upon the degrees of ionisation (re- bases like potassium, magnesium and calcium powerful” as they used to be. flects the activities that take place underneath it. lease of hydrogen ions) of the acid. This means that counteract the development of soil acidity. b Microbial activity Acidity has a bearing on microbi- How we look after the soil determines whether the more hydrogen ions held by the exchange At harvesting, the yield is taken out of the field al activity in the soil. Most microbial processes, including we live well or not. rocesses that take place in complex of a soil in relation to the basic ions and in some instances, the remaining stova is the breakdown of organic matter and cycling of nutrients, the soil are mainly affected by its pH, which is a (Ca, Mg, K) held, the greater the acidity of the removed to feed livestock or burnt to make the are reduced in acidic soil. Primarily bacteria and fungi measure of acidity or alkalinity of the soil. Soil soil. Several factors, some of them inevitable, field workable. Removal of stova would mean growth and reproduction are reduced. Legume nodulation pH is measured on a scale of 1 to 14 using the result in soil acidification. Three of the many removal of the mentioned nutrients from the is not spared and it results in nitrogen deficiency in legu- Calcium Chloride Scale where 1 to is acidic, causes will be discussed field, the net effect being increased acidity. minous crops such as soya bean and sugar bean. 7 is neutral and 8 to 14 is alkaline. The pH of a a) Use of nitrogenous fertilisers c) Parent material c lement toxicities Aluminium and manganese tox- icity is a big problem in acidic soils.When the soil pH is above about ., the aluminium in soils remains in a solid combination with other elements and is not harmful to plants. Once pH goes below ., aluminium becomes soluble and enters plant roots by the process of osmosis. Toxic levels of aluminium in the soil solution affect root cell division and the ability of the root to elongate. The element also affects other physiological process within the plant. At the end, the farmer will not get the desired yield and crops may remain stunted in some instances. Managing soil pH One may wonder how they can come to know the level of acidity or alkalinity in their soil...Well, the answer is simple. Have the soil analysed by experts! By merely looking at the colour, texture, or structure of the soil, one cannot understand the pH and nutritional value of the soil. Soil analysis points out the pH and fertility levels, which then determines the type and amount of conditioners plus fertilisers to use. FC offers a soil analysis service with three packages pH only, basic and premium analysis. After an analysis is done and pH level is found to be lower than optimum, a FC agronomist will recommend the type and amount of agricultural lime to apply to offset the acidity. Liming materials contain calcium andor magnesium ions which when dissolved, will neutralise soil acidity. There are vari- ant types and brands of lime on the market but what ultimately determines the extent to which lime is effective is the particle size as well as the neutralising value of the lime. The finer the particles of lime, the faster it reacts with the soil. The neutralising value tells the lime's capacity to neutralise soil acidity with a value of at least percent being highly commendable to deliver the intended results. Types of lime supplied by ZFC Limited 1. Calcitic lime Contains 8 percent calcium carbonate and 0, percent magnesium carbonate, with a neutralising value of 8 percent. 2. olomitic lime Contains 2 percent calcium carbonate and 40 percent magnesium carbonate, with a neutralising value of percent. Your soil test results and your crop's need of calcium andor magnesium will help your FC agronomist decide which type of lime to recommend for a farmers specific field, meaning lime does more than ust correct soil acidity as it also supplies essential plant nutrients, namely calcium and magnesium. When and how to apply agricultural lime Lime can be applied at any time for almost all crops, but farmers must realise that it takes a significant amount of time for the lime to dissolve and make the desired change in soil pH. As such, it should be applied at least 3- months before the crop is planted. Moisture availability will aid the process. Freuency of liming should be determined by a soil test. Pfumvudza concept in line with soil pH management The government of imbabwe adopted the fumvudza concept in a bid to increase yield output per unit area amongst smallholder farmers. Over the years, poor yields averaging as low as 0.1 tonnes per hectare for maize have been recorded and this is unsustainable, particularly for a booming population. One of the contributing factors to the low yields has been a gradual drop in soil pH, due to some of the reasons discussed above. A fundamental decision was made to lime all agricultural fields, because on record, these lands hardly got any supply of agricultural lime over the years. The application of agricultural lime is therefore a must under the fumvudza programme. Once this is done, along with good agricultural practices GAs such as good crop nutrition, control of insect pests and diseases, imbabwean farmers will surely improve their yields and feed the nation. In conclusion, agricultural lime is a relatively affordable soil conditioner whose many benefits outweigh the cost of the product. Farmers should make deliberate decisions to improve the health status of the soil and the wealth status of the pocket. l Munhutu is an agronomist with ZFC Limited The Financial Gazette October 01-07 2020 | CBZ 1 CBZ 2 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 3 CBZ 4 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 5 CBZ 6 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 7 CBZ 8 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 9 CBZ 10 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 11 CBZ 12 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 13 CBZ 14 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 15 CBZ 16 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 17 CBZ 18 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 19 CBZ 20 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CBZ 21 CBZ 22 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | AXIA 1 AXIA 2 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | DAWN 1 DAWN 2 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | DAWN 3 DAWN 4 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | STEWARD 1 STEWARD 2 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | STEWARD 3 STEWARD 4 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | STEWARD 5 STEWARD 6 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | STEWARD 7 STEWARD 8 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | STEWARD 9 STEWARD 10 | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | CASSAVA E-PAPER | October 01-07 2020 The Financial Gazette The Financial Gazette October 01-07 2020 | Page 15 Companies & Markets Zim a difficult market: Choppies Nelson Gahadza ening of the local currency against the pula of goods from the continuing operations, in- Staff Writer during the previous 12 months. creased by a marginal 1,1 percent to P5 421 We are being targeted Gross profit margins improved slightly to million. OTSWANA Stock Exchange (BSE) 19 percent compared to 18,8 percent in prior This increase was inflation driven in Bo- listed regional retailer Choppies says year with EBITDA on a comparable basis at tswana and Zimbabwe against a backdrop of — Charumbira BZimbabwe is one of the most chal- P15,7 million. negative sales volumes in both countries due ARARE City Council (HCC) land management lenging markets to operate in due to econom- “The abrupt changes and volatility in to the impact of the Covid-19 pandemic,” and development manager Priscilla Charumbira ic volatility. the currency makes operating in Zimbabwe Choppies said says she is “being targeted for being one of the In a statement accompanying financial extremely difficult. This resulted in all the It added that the impact of the Covid-19 H statements for 2020, Choppies noted that the gains obtained at country level being elimi- pandemic on the group’s continuing opera- potential witnesses to the corruption cases”, which have consumed the capital and claimed the heads of many big- challenging environment in the country im- nated when converted at group level due to tions revenue is estimated at P190 million. wigs. pacted revenue performance as hyperinflation the weak currency compared to the Botswana Last year, the regional retailer exited This comes amid fears of fresh arrests and the coun- wiped away value of disposable incomes. pula,” the retailer noted. South Africa, Kenya, Tanzania and Mozam- try’s biggest municipality has been paralysed by polit- With hyperinflation in three digits, con- However, it noted that despite all these bique but will keep focus on Zimbabwe and ically-motivated squabbles, which have also seen the cerns surrounding the economy, changes in issues, the business remains self-sustaining a few others, having suffered running short- arraignment of ex-mayor Herbert Gomba, housing di- the money market and public disturbances, without any cash flow constraints. falls. rector Addmore Nhekairo, town clerk Hosea Chisango Zimbabwe is one of the most challenging The retail chain noted that the repatriation In the same year, Choppies was suspended and human capital director Matthew Marara. As it is, markets to operate in,” the company noted. of profits to Botswana will continue to be dif- from the Johannesburg Stock Exchange and the ex-town planner has been fingered in irregular stand As a result, revenue declined by 18 per- ficult until the economy undergoes a structur- the Botswana Stock Exchange after the com- allocations in the Willowvale, Belvedere and St Martins cent to P4 141 million from P508,5 million al change. pany failed to publish its financial results on districts or areas. in 2019 resulting from an 87,5 percent weak- At group level revenue, consisting of sale time. [email protected] “These (allegations) emanate from the fact that in- vestigators from the municipal police through the town clerk's office and imbabwe Republic olice identified me as one of the people who can be a credible expert witness on town planning procedures,” Charumbira said, adding the HCC was riven by divisions between corruption-busters and people supporting it, and she had no involvement in the “sites being referred to”. “The record will show that the plans were approved during the time I had been re-assigned to land management ... Therefore, it is strange how anyone can link their approval to me. It is also trite that all plans are approved by council before the city planner can sign. I have it on good authority from colleagues who were responsible that all procedures were followed,” she said round about the same time she has also confirmed the Willowvale lease had benefitted a trucking firm in which her husband Fortune Charumbira has an interest. The statement comes after the land management boss had been entangled in the conversion of nearly seven hectares of city land for industrial use at the corner of Gle- neagles and High Glen road, numerous service stations in Belvedere and a huge wholesale chain in Sunningdale. But Charumbira says these are “malicious and blatant lies” by those bent on tarnishing her image, as part of their “counter political projects and attacks”. Meanwhile, suspended works director Zvenyika Cha- watama — who is also accused of involvement in dodgy land deals in Mufakose, delayed utilisation of Zimbabwe National Roads Administration (Zinara) funds and leak- ing confidential information on social media, among a litany of charges is fighting tooth and nail to keep his job and turn up the heat on his adversaries. “Available documentation clearly indicates that Chisango sent Chawatama on special leave to avoid further investigations into Kuwadzana land anomalies after the resignation of Tapiwa Gona Gona had indicated that he would not go down alone as ‘top people’ were also involved in the land scams,” Chawatama’s lawyers Zinyengere Rupapa Legal Practitioners said, adding allegations that he was “too slow” were also generalised, vague and embarrassing, and their client's February misconduct warnings had been withdrawn on September 8. Regarding the Taringana Housing Cooperative and Youth In Business issues, the lawyers said: “The survey- or was appointed in response to the director of housing... order of November 28, 2019. For the record, our client joined council in December 2017 when the layout plan had been approved in 2015. He inherited a project that had commenced over two years prior... and cannot be held accountable for a process for which he had no control,” the lawyers said. Amid claims that the former water affairs boss had delayed in utilising the road funds, the towering engineer has given a written breakdown through an August 04 letter about how the HCC had used the 10 million payout. While Chawatama has sought to clear his name by writing to Zinara and stating that they had used 90 percent of the funds, and was being let down by material and pro- curement delays, a July 21 internal memo by chief roads engineer Gerald Mutumhe to one of the supply chain managers also seems to suggest that delivery turnaround times were poor and, hence, suppliers had to be changed. It is nonsensical and speculative with severe want in substance and incapable of being responded to, let alone appreciated. Our clients finds himself in an invid- ious position to respond in the dark and hereby reserves his right to respond in substance at the appropriate time,” Chawatama said, adding the alleged Mufakose projects had been concluded way before he assumed office. The inescapable and undeniable narrative surrounding our client’s suspension is that engineer Chisan- go is pursuing a personal vendetta against our client. Our client is a witness to a case involving the unprocedural disposal of 13 stands on a public open space Knowl- edge by Chisango of the contents of engineer Chawata- ma's statement triggered his immediate suspension,” they said, adding the suspension was, therefore, “unlawful, pre-mature, unwarranted and he should be immediately reinstated”. — Staff Writer [email protected] Page 16 | October 01-07 2020 The Financial Gazette Companies & Markets Forex shortages dent Lafarge ops Adelaide Moyo settling foreign obligations,” Kumbirayi to the same period last year. The re- in an overall decline in the company’s Staff Writer Katsande, Lafarge’s chairman said in a bound continued into July 2020, further operating costs by 10 percent,” he said. statement accompanying the results. narrowing volumes decline to only 6,4 Lafarge continues with the imple- AFARGE Zimbabwe's operations The business did not have any new percent lower than those achieved in the mentation of the previously announced were weighed down by foreign borrowings during the period under re- same period to July last year.” US$25 million capital expansion pro- Lcurrency shortages which drove view. He said the recovery for the remain- gramme. up foreign exchange losses to $367 mil- He said the business started the year der of the year is likely to be slower due In March this year, the cement firm lion during the half year ended June 30, on a satisfactory note, with first uarter to the planned plant shutdown scheduled started constructing a US$2,2 million 2020 compared to a gain of $18 million volumes marginally exceeding the prior for the last uarter of the year. DMX products plant, which is part of its in the comparative period. comparable period by 1,4 percent. Volumes for the Dry Mortar Mix US$25 million capital investment proj- The cement maker said conclusion “However, the Covid-19 lockdown (DMX) business however grew by over ects. of the blocked funds registration process caused a significant drop in the monthly 100 percent compared to the same period “This investment is earmarked to strengthened the companys financial volumes of April 2020 by 71,4 percent in prior year. improve cement milling capacity and position as foreign denominated liabili- compared to the same month in the prior Revenue increased by 27 percent to automate the DMX plant. In addition to ties and capex commitments amounting year. The volumes recovered in May and $1,1 billion during the review period the expected increase in production ca- to US$31 million were registered with June 2020, leading to total volumes for compared to $0,9 billion recorded in the pacity, the programme will also create the central bank. the period closing at 14,1 percent lower prior period. infrastructure to improve power supply “However, recent policy changes, than the same period last year,” Katsande “Our cost rationalisation, innova- and cement storage. The DMX plant is which include the introduction of the said. tion and efficiency initiatives helped to set to be completed in the second half of foreign currency auction, have seen im- “This performance is largely in line improve gross profit margins by eight 2020, while the vertical cement mill sup- proved hard currency inflows and the with market trends as there is an overall percent to 50 percent (June 2019: 42 per- ply contract was signed in August 2020,” company has made significant strides in market decline of 13 percent compared Kumbirayi Katsande cent). The same initiatives also resulted Katsande said. [email protected] Axia units buoyant despite challenges Adelaide Moyo Staff Writer

XIA Corporation Limited (Axia) says its business units remained resilient during the year ended AJune 30, 2020 despite foreign currency shortages and liuidity constraints, which led to reduced consumer disposable income and demand. The specialty retail and distribution group said the operating environment was volatile and presented a number of challenges characterised by the weakening Zimbabwe dollar, re-emergence of hyperinflation and shortage of foreign currency. Luke Ngwerume, the group’s chairman said foreign currency shortages have made it difficult to settle foreign obligations as well as sell imported products. “These challenges necessitated management to proac- tively refine business models to manage ever-changing operating costs, working capital levels as well as protect the business units’ balance sheets in real terms. Resultant- ly, the business units were resilient despite these adverse factors and this helped the group record a fair performance,” he said. Axia recorded a profit of 3,37 million during the year ended June 30, 2020 from $108,253 million recorded in the comparative period despite the inflationary pressures on costs. Revenue declined by one percent to $7,8 billion from $7,9 billion recorded in the prior period. The impact of inflationary price increases negatively affected demand thus turnover volumes were below those traded in the prior year. An improved performance was noted in the last uarter of the financial year, where volume growth was better than that achieved in the prior year,” Ngwerume said. The group generated cash of $1,109 billion from operations, which was up 278 percent from the comparative period. Axia’s capital expenditure for the year totalled $124,769 million and this was limited to critical maintenance and expansion projects as these were also affected by inflationary pressures. TV Sales and Home had a slow start to the year with subdued volumes in the first uarter which were later offset by improved trading in the second and third uarters. Turnover was 11 percent below the prior year, with volumes 23 percent below the prior period. “Operating costs were under control and this resulted in the business being able to maintain its profitability levels against prior year,” Ngwerume said. Turnover was down 16 percent at Distribution Group Africa imbabwe, with operating profit also down from the comparative period. Volumes were 31 percent below prior year and this led to a decline in turnover as consumer spending power was negatively affected by the economic challenges. Regional operations reported a 11 percent increase in turnover over the prior year in US dollar terms. “The growth in turnover was contributed by the acuisition of new distributorship agencies like estle and Blue Band in Zambia and the addition of Pro Group and Blue Band distributorship agencies in Malawi,” Ngwerume said. Transerv suffered a volume decline of 38 percent compared to prior year. “The strategy to focus on fast-moving stock lines and managing costs helped the business to remain profitable. The business witnessed an operating profit growth of 274 percent against prior year,” he said. Ngwerume said going forward, Axia’s key focus areas will be on managing gearing levels and operating costs given the inflationary pressures, foreign currency expo- sure and preserving the balance sheet in real terms. [email protected] Page 17 | October 01-07 2020 The Financial Gazette Column E-banking legislative framework in SA, UK Sharon Fadzai parts thereof. These principles that are contained The UK enacted the Electronic Communica- same. The EFTA provides for an error resolution Manangazira in the ECTA are in line with international e-bank- tions Act, 2000. The key features of this legisla- procedure in Section 908 thereof whereby the ing standards/ practices. The principles play a tion are that it recognises that the use of digital client is compelled to report any errors in the use HIS is the fourth of a se- pivotal role in ensuring that client information is signatures in undertaking electronic transactions of e-banking services to the bank within 60 days ries of articles aimed at utilised in a lawful manner by banks in SA. is recognised as valid at law. The Act further pro- and where it is established that the error in ques- Tcomparative analysis of The ECTA provides the ap- vides for the manner in which tion was attributable to computer errors or mal- the way in which other jurisdic- propriate legislative infrastruc- e-signatures are created, veri- function on the part of the bank it is held account- tions such as South Africa and the ture and the much needed legal fied or communicated between able to compensate the consumer of e-banking United Kingdom have tackled regulation of e-banking by certainty with regards to the a client and service provider. services. Under US federal law, banks have 10 way of Acts of Parliament or statutes. internet and other mediums of The Act provides for the stor- days to investigate the aforesaid errors after they The third edition last week demonstrated that Zimbabwe e-banking. Chapter VII of the age of electronic client data by receive communication from a client of an error lacks ample legislation that specifically regulates e-banking. ECTA is especially very pro- banks in the UK. The Act also and are further required to notify a client of the Across the Limpopo, our neighbour South Africa enacted gressive as it addresses the vital covers the vital issue of con- findings in writing within three days of conclud- the Electronic Transactions and Communications Act No. issue of consumer protection in sumer protection in the use of ing investigations regarding computer error. 25 of 2002 (ECTA), which came into operation in August the use of e-banking services. e-banking services in the UK The SA, UK and US legal provisions regard- 2002. This Act regulates electronic communications and In comparison to Zimbabwe, jurisdiction. ing e-banking reflect an ample appreciation that transactions in South Africa as it provides for the definition South Africa does indeed offer greater protection In the United States the Electronic Fund e-banking is now part of everyday life and is here of a wide range of terms connected to e-banking for exam- to the consumer of e-banking services due to the Transfer Act of 1978 (EFTA) is instructive with to stay as evidenced by the presence dedicated ple the following; presence of specific legislation in the form of the respect to e-banking communication and trans- legislation to regulate this phenomenon in line a Consumer the definition of consumer places em- ECTA to tackle the issues surrounding e-banking. actions in that country. Section 905 of the EFTA with technological advancements. phasis on the fact of intending or actually entering into an Zimbabwe has a lot to learn from our counter- requires that banks explain in easily understand- n Manangazira is a legal practitioner and electronic transaction with a provider of goods and/or ser- parts across the Limpopo River with regards to able language to a consumer the terms and condi- a member of the Bankers Association of Zim- vices. the regulation of e-banking effectively by way of tions attached to e-banking channels at the point babwe (BAZ) Legal Committee. She writes in b ata subect meaning a person from whom per- legislation. of entering into a contract for the provision of the her personal capacity. sonal information is requested. c ata controller meaning the service provider who electronically requests, collects, processes and stores client personal information d ata message data generated, sent, received or stored by way of electronic means e lectronic signature data in electronic form which is intended by the user to serve as a signature. Section 11 as read with Section 24 of the ECTA provides for the legal recognition of data messages and this is one of the most important features of the aforesaid Act. Banks typically provide a contract for signing by a client which contains all the contractual terms and conditions which form the basis for the banker client relationship in the use of e-banking facilities. In line with technological advancements the demand is growing for such contracts to be initiated and concluded by way of data messages. The objective of the ECTA is thus to provide a legal framework for the legal recognition of electronic communications and transactions. Section 16 of the ECTA provides for the retention of data messages. Where a bank in South Africa received or sends information or documentation by way of a data message, this data message must be stored in the format prescribed by Section 16 of the ECTA. Therefore, the duty to store manual or paper-based client records in relation to e-banking transactions in South Africa is dispensed with by operation of the abovementioned provision. The issue of the electronic delivery of documents is dealt with extensively in Section 19 of the ECTA. There is emphasis on the data message sent to the receiver being capable of retrieval by the receiver. Section 22 of the ECTA provides for electronic offers and acceptance. In this regard, an agreement can be valid- ly concluded between or amongst parties to a contract by means of the exchange of data messages at the time the offer for provision of specific services is accepted by the client. Section 23a makes specific reference to data messages used in the conclusion or performance of an agreement. In terms of this provision, a data message is regarded as having been sent by the originator when it enters the information system of the receiver or the person to whom the data message is addressed to. Thus an electronic offer and acceptance is present, enabling electronic communication and transacting to take place within the banking sector. Section 37 of the ECTA provides for an advanced electronic signature. This is a signature which has undergone an accreditation process by the Accreditation Authority established in term of the aforesaid Act. The benefit of acuiring an advanced electronic signature is that it adds authenticity to the advanced electronic signature. The fact of the SA Ac- creditation Authority authenticating an advanced electronic signature provides more weight to the said signature within the context of electronic agreements in the SA jurisdiction. Section 86 of the ECTA expressly prohibits the intention- al interception or unauthorised access to client data without the authority or permission form a client. It prescribes that a violation of this provision amounts to the committal of an offence in terms of Section 86 (1) of the ECTA. Section 86(2) of the ECTA also makes it an offence where a service provider (bank) intentionally interferes with client data to the extent that is modified, destroyed or rendered useless without permission of the client. The use of e-banking facilities requires a client to provide personal information to the bank. Chapter VII of the ECTA contains dedicated provisions relating to the issue of the protection of client data. Consumers of e-banking services in SA are afforded ample protection in this regard. It is vital to note that Section 48 of the ECTA provides that banks in South Africa cannot contract outside the obligations placed upon them by Chapter VII of the ECTA. In addition, Section 49 of the ECTA provides that consumers of e-banking services may approach the Consumer Affairs Committee to report instances of non-compliance by banks with the provisions of Chapter VII of the ECTA. Section 51 of the ECTA outlines nine (9) important principles that must be adhered to when a data controller, for example a bank collects personal information from clients. Section 50 of the ECTA states that all the principles must be adhered to by a data controller (a bank) in full when pro- cessing client personal information and not compliance in Page 18 | October 01-07 2020 The Financial Gazette Column/Companies To tax motoring benefit in the wake of Covid or not?

HE employment relationship is they cannot use. coupled with a number of du- To facilitate the process, employ- Tties and obligations by either ees should keep logbooks and record Global rise party, but one other aspect that em- the number of kilometres travelled ployers use to motivate their employ- when the vehicle is used for business ees is that of fringe benefi ts because purposes. The number of kilometres they reduce expenses for employees. travelled when the vehicle is used in in robot Fringe benefi ts are brought into gross a private capacity is therefore, equal income in terms of s8 (1) (f) of the to the difference between the total Income Tax Act. number of kilometres travelled and The law defi nes a benefi t or ad- the number of kilometres travelled workers vantage in relation to employment as when the vehicle is used for business the value of an advantage or benefi t purpose. HE rise of the machines has well in respect of employment, service, The amount of the taxable benefi t and truly started. Data from the offi ce or other gainful occupation or corresponds to the ratio of the cost International Federation of Ro- in connection with the taking up or of the vehicle and the kilometres T botics reveals that the pace of industrial termination of employment, service, travelled, multiplied by the private automation is accelerating across much offi ce or other gainful occupation. kilometres. Preferably, this should be of the developed world with 74 installed This implies anything that has ehicles are a common employment benefi t world over. calculated monthly. industrial robots per 10 000 employees saved an employee from taking out It can, therefore, be concluded that except if it was used was less than the Holding on to a company car can- globally in 2016. of his or her own pocket. the benefi t arising from the right of year of assessment. not help the employee as long as the By 2020, that increased to 113 across Common employment benefi ts in use of company cannot be diminished It follows therefore, that employ- car is parked at the employee’s prem- the manufacturing sector. Zimbabwe include housing, use of by having the car parked at home ow- ees will be taxed for use of motor ises. Adjustments are usually made Asia now has a robot density of 118 furniture, motor vehicle, loan, tele- ing to Covid-19. vehicles during the lockdown for as to the benefi t-in-kind tax deductible units per 10 000 workers and that fi gure phone or cellphone, domestic worker Our laws are not fl exible enough long as they are or were using the from an employee’s salary if the com- is 114 and 103 in Europe and the Ameri- or gardener, security services, fuel to remove this benefi t due to circum- vehicles for personal use. A taxable pany car was not available; if they cas, respectively. coupons, school fees, passage ben- stances imposed on employers and benefi t will generally arise on each were in for repair, for example. China is one of the countries record- efi t, medical cover, pension cover, employees by Covid-19. day when the car is garaged at the In practice, this does apply if the ing the highest growth levels in industri- holiday, airtime and entertainment Meanwhile, motoring benefi t is employee’s residence — even if the period the car is unavailable is less al automation but nowhere has a robot allowance. not the only one affected by the re- employee does not than 30 days. density like South Korea. With the coming in of Covid 19 strictions. There are other benefi ts use the car on that The situa- In 2019, South Korea had 855 in- and working from home becoming a such as the airtime, accommodation, day. tion is different stalled industrial robots per 10 000 em- new norm, taxability of some of these etc which would need to be evaluated In other words, when it comes ployees. fringe benefi ts has come under the on a case by case basis. if employees are to private mile- That is mainly due to the continued spotlight and other aspects that may Employers and employees should not using a car in age fuel. While installation of high volume robots in the not necessarily fall under the fringe thus, be vigilant to ensure they do not the way that they the compa- electronics and electric sectors. benefi ts bracket may have since be- continue to pay taxes for a benefi t usually would be- ny car cannot Germany and Japan are renowned come relevant. which has been made redundant due cause of Covid-19 be diffi cult to for their automotive industries and they We take stock of motor vehicle to Covid-19 or other similar circum- restrictions, a lia- withdraw the have density levels of just around 350 per use in the wake of Covid-19 and stances. bility for PAYE can private fuel 10 000 workers. build a case whether to continue or Considering the novelty nature of still arise. benefi t can be, Interestingly, Japan is one of the main discontinue taxation of this benefi t. Covid-19 and lack of preparedness For most em- as this does not players in industrial robotics, accounting Motoring benefi t arises where an for it in terms of laws and administra- ployees, working need a physical for over half of the global supply. employee is granted the right of pri- tive systems, we implore the author- from home came return of the In the United States, the pace of au- vate use of the employer’s vehicle. ities to provide guidance on the cur- as a cost-cutting Tax Matters fuel card. tomation is slower with a density rate of Private usage of the vehicle in- rent laws so that they suit the times measure but those with It will, how- 228. cludes travelling between home and and realities that taxpayers are facing. employees with Marvellous Tapera ever, need a China is eager to expand its level of place of work, the use of the vehicle This would ensure certainty in the company vehicles change of pol- automation in the coming years and it during weekends and holidays. tax treatment of benefi ts as the cir- will still incur the icy and em- has been targeting a place in the world's In the case of Butcher, it was held cumstances in which the laws were tax for use of the vehicle ployee agreement to proportionally top-10 nations for robot density by 2020. that the mere parking of the vehicle drafted have since been shifted by the The Zimbabwe Revenue Authori- reduce their benefi t while the car re- It had a density rate of 25 units in at the employee’s residence will give new order. ty will not see cars as “available” for mains unavailable. 2013 and that grew to 97 by 2017. rise to car benefi t. Meanwhile, the In- Tapera is the Founder of Tax benefi t-in-kind tax purposes if em- Employers should also consider In 201, that fi gure had grown come Tax Act does not provide any Matrix (Pvt) Ltd and the chief ex- ployees are able to hand the car back revising their policies around private quite considerably once again to 187. other method of reducing the deemed ecutive of Matrix Tax School. He to their employer — by posting their fuel benefi t in order to prevent em- — statista.com cost for usage of the motor vehicle writes in his personal capacity. keys, for example. ployees from being taxed on a benefi t The Financial Gazette October 01-07 2020 | Page 19 Column Finding Pokémon and seeking Alpha T IS fascinating that much of what humans do in life is searching for something. Life in itself requires one to find Ia good education, a job or income generating activity and most importantly a life-partner. Those who are lucky enough also find happiness. "Ask and it will be given to you; seek and you will find; knock and the door will be opened to you”. Much of our activities tend to revolve around this Bi- ble verse and this could be the reason behind the success of Pokémon Go, a 2016 augmented reality (AR) mobile game developed and published by Niantic. Pokémon Go is perhaps the biggest AR game to date. It is estimated that in 2019 alone, Pokémon Go earned US$1,4 billion while Pokémon Go live events earned US$249 million in tourism revenue. Pokémon Go is a game that uses your phone’s GPS to de- tect where and when you are in the game and make Pokémon (virtual creatures) "appear" around you (on your phone screen), so you can go and catch them. As you move around, different and more types of Pokémon will appear depending n the same way gamers search for Pokmon, left, the focus for investors on a stock market is getting alpha returns. on where you are and what time it is. The idea is to encourage you to travel around the real founder of piggybankadvisor.com. e can be reached on 2 44 or batanaimor- ganim.com batanaipiggybankadvisor.com world to catch Pokémon in the game. You may have heard stories of people hunting down Pokémon on their office desks, in hospital rooms, and even in bathrooms. One teenage girl even found a dead body while looking for Pokémon. In the same way gamers search for Pokémon, the focus for investors on a stock market is getting alpha returns. Alpha, one of the most quoted indicators of investment performance, is defined as the excess return on an investment relative to the return on a benchmark index. For example, if you invest in a stock on the ZSE, and it returns 20 percent while the ZSE ASI earned 5 percent, the alpha is 15. An alpha of -15 would indicate that the investment un- derperformed by 20 percent. An alpha of zero suggests that an investment has earned a return commensurate with the risk. Alpha of greater than zero means an investment outper- formed.

conomics Market ntelligence with N M

So, when hedge fund managers talk about high alpha, they are saying that their managers are good enough to outperform the market. But that raises another important question; “How can one beat the market and achieve alpha returns?” Our approach as Morgan & Co Research involves a combination of fundamental analysis techniques and market intelligence. For stock recommendations, we make use of a system that is based on two key parameters; (i) the quality of management teams and (ii) future earnings as measured by our Forecasted Earnings Per Share (EPS). The EPS estimates are constantly being updated from time to time to reflect the changing dynamics affecting the company’s earnings potential. Stocks are then ranked based on these two set of parameters to identify winners (BUYs) and losers (SELLs). In addition to company fundamentals, our ears are always on the ground for any critical market intelligence that can impact share prices movements. Market sentiment analysis is also critical. In the long run, valuations tend to drive stock prices, but in the short-term it is market sentiment that moves prices. News Analysis is also another technique or method that is used to trade shares and other instruments on the financial markets. It is essentially an attempt to profit from price movements emanating from immediate market reactions to major news and economic data announcements. Generally, economic as well political news reports often spur strong short-term movements in the markets, which may create trading opportunities. For example, company results releases, M&A activity, announcements about interest rates, unemployment or the central bank’s policy shifts can affect exchange rates and share prices. Similarly, news relating to corporate profits or a change in management can affect the share price. Based on our analysis, stocks on the ZSE where possible M&A activity could present significant trading opportunities include Dairibord Holdings, First Mutual Holdings Limited, SeedCo, ZB Fi- nancial Holdings and Zimre Holdings Limited. Overall, when playing Pokémon Go, to catch them all (and earn the medals attached to catching Pokémon), you are going to have to explore far and wide and be engaged during the day and night. That is the only way to become the very best, like no one ever was. The same can be said of the stock market. We are reliably informed that there will be yet another round of liquidity injection on the stock market that could trigger a rally. If you are seeking alpha returns, download the Morgan & Co Research App today and have access to market intelligence on the go! Matsika is head of research at Morgan Co, and Page 20 | October 01-07 2020 The Financial Gazette ColumnCompanies Cognitive ability facts everyone needs to know and why

OGNITIVE ability is defined as a mental cies. Below I share some of the facts that every likely to end up with people who have no capacity concerned do not have serious personality defects. capability that involves the ability to rea- individual needs to know about GMA or cognitive for their roles. 4.eople with high cognitive ability tend to do well in life Cson, plan, solve problems, think abstract- ability. Mata analytic studies have so far shown that generally regardless of the environment they are operating ly, comprehend complex ideas, learn uickly cognitive ability contributes 40 percent to per- in. Because such people are clever, they tend to find solutions and learn from experience” Gottfredson, 17. cent to the variation in ob performance. to problems uickly. Wikipedia defines cognitive ability as brain- This is nearly half, and there is no other factor .Countries with citizens with a high cognitive ability on based skills which are needed in acuisition of which contributes to ob performance with this average tend to outperform those with low cognitive ability. knowledge, manipulation of information, and level of magnitude. Singapore, apan, South Korea etc outperform those reasoning. 2.Cognitive ability predict success in training countries with low on cognitive ability. The average cogni- They have more to do with the mechanisms of as well. We see most organisation wasting train- tive ability of citizens has been used to predict the socio-eco- how people learn, remember, problem-solve, and ing resources when they enroll people who cannot nomic prosperity of nations. pay attention, rather than with actual knowledge.” learn and also transfer what they will have learnt This is why some countries are investing heavily in the The other term used to refer to cognitive abili- to the practical work situations. Imagine the wast- cognitive development of their citizens especially investing ty is general mental ability GMA. ut simply, it HR Perspective age by organisations in this regard. The wastage in pre-school education including the provision of nutritious with is the ability to reason and find solutions to prob- Memory Nguwi is huge. food to kids in pre-school. lems. 3.GMA or cognitive ability predicts success in .Cognitive ability is largely hereditary and partly child- There are various tests of GMA used for se- all endeavors of life. Generally, people with high- hood experience. This means after adulthood, no matter how lecting employees. espite the value of cognitive 1.Cognitive ability or GMA is the biggest pre- er cognitive ability tend to do well across all facets much you try, there is unlikely to be any change in cognitive ability on life outcomes, very few people have dictor of ob performance compared to all other of life. ability for adults. facts about how cognitive ability impacts life out- factors. The contribution of cognitive ability in- There is plenty of research to show that people 7.Good nutrition is a maor factor in increasing the cog- comes. creases with the complexity of the role. who are generally intelligent do much better in life nitive ability of a child during their childhood years. In other Such facts can be used to positively impact This means that if an employer underestimates than less intelligent people. countries they know the value of nutrition on the cognitive national policies and organisation specific poli- the role of cognitive ability in their hiring, they are This assertion is true assuming the persons development of their future workers, therefore, they have deliberately come up with feeding schemes for kids in pre- school and some in primary schools. This is a worthy investment for any government. 8.Cognitive ability can be impacted negatively by substance abuse during childhood. Try by all means to ensure that your children are not subected to substance abuse during their childhood years as this impact negatively on their cognitive ability development. .A good home environment, free of abuse impacts positively on the cognitive development of a child. This means that parents can benefit a lot if they can create a conducive home environment for children. The unfortunate part is that most parents realise the damage done to their children as a result of a poor emotional environment when the children are already in adulthood. As can be seen from the facts above, cognitive ability plays a big role in the prosperity of nations and individuals. Organisations that employ cognitive ability testing as part of their employee selection process tend to outperform those that do not. Low cognitive ability countries struggle economically compared to those countries with high cognitive ability. An understanding of how cognitive ability affect life outcomes can help countries and organisations to put policy interventions that will benefit their nations and organisations respectively. n Nguwi is the managing consultant of Industrial Psychology Consultants (Pvt) Ltd. He writes in his personal capacity. US judge halts TikTok store ban IKTOK has avoided a government-ordered block on new downloads in the US after a udge issued a tem- Tporary inunction. The video-sharing app had faced being removed from Apple's App Store and Android's Google lay. xisting US-based users would have been able to have continued using it.mBut they would not have been able to have re-downloaded the app if they had deleted it from their phones, nor have been offered software updates. udge Carl ichols of the US istrict Court for the istrict of Columbia issued the inunction on Sunday evening having held a 0-minute hearing earlier in the day. He wrote that the government had provided ample evidence that China presents a significant national security threat, but added that specific evidence that TikTok itself posed a risk and that taking its app off stores was the reuired was less substantial. TikTok welcomed the intervention, and vowed to keep defending its rights. We're pleased that the court agreed with our legal arguments and issued an inunction preventing the implementation of the TikTok app ban, it said in a statement. TikTok had argued that forcing it off the iOS and An- droid app stores would have violated the First and Fifth Amendments of the US constitution. It claimed that preventing some users oining the app unlawfully impinged upon their freedom of speech and that the firm's own right to due process would have been breached by not giving it a proper opportunity to defend itself first. How does it make sense to impose this app store ban ... when there are negotiations underway that might make it unnecessary added a member of the app's legal team. The US government's lawyers in turn had described the app's parent as being a mouthpiece for the Chinese Com- munist arty. The ruling comes one week after another Chi- nese app WeChat that also faced a ban, was given its own last minute reprieve by the US courts. — BBC Page 21 | October 01-07 2020 The Financial Gazette Columns Good governance yields high performance OR decades the debate has been raging whether there is leaders is double that delivered by companies scor- long-term value creation ter able to pay off long-term debts conclusive proof that strong governance practices lead ing lowest for quality of governance - Ability to make agile and responsive deci- Have 2 percent more liuidity and are better Fto better business performance than otherwise. Governance leaders had an BIT 43 percent sions, with higher levels of trust which improves able to pay off short-term debts Grant Thornton global consultants concluded a compre- higher than those companies with operational efficiency. Are 2 percent more efficient at generating hensive study in 2019, spanning over 10 years of data from the weakest governance practices Businesses with the strongest profits with the financial resources allocated to FTSE 350 companies which proves strongly that good gover- Governance leaders are twice governance practices perform bet- them nance has positive effect on an organisation’s ability to create as likely to stay in the FTSE 350 as ter in value creation than their oppo- Are twice as likely to stay in the FTS 30 and retain value. companies with the weakest gover- sites as borne out by the indicators than those dogged by weak corporate governance “Companies with the strongest governance practices nance practices. below from the research across 10 The fourth hypothesis is that companies that achieve shareholder returns of 8.5 times the initial investment, Businesses with strongest economic sectors: progressively improve corporate governance also which is double the return achieved by those with the weakest governance practices are 15 percent They generate 3.4x more cash improve financial performance The research found governance.” less financially leveraged and have flow from their operations strong link between progressive improvement in This is a clarion call for boards and investors to ensure 25 percent more liquidity than their Executives Only Corner They are 43 percent more effi- corporate governance and subseuent financial continuous design and execution of corporate governance best opposites with cient at making and selling market- performance improvement as manifested by large practice. This is enabled by the global development of gover- Strong corporate governance Shepherd Shonhiwa able products and services increase in operating cashflow and operational ef- nance codes — King IV in South Africa (2016), the UK Code doesn’t create value itself but condi- Remain with 3.4x more cash ficiency. (2019), similar efforts by the Australian Institute of Company tions conducive for value generation such as: after investment in operations, to pay off lenders The research confirms our experiences here at Directors (AICD), the American National Association of Cor- - Creating a decision-making environment with and investors home where all our parastatals are now a pale shad- porate Directors (NACD) and many others. clear purpose and strong strategic intent, thus fo- Generate double the returns for their share- ow of their former stature while other corporate The research gave supporting evidence to some bold hy- cusing all the organisation’s assets on aligned value holders giants titter on the brink of collapse. potheses discussed below. Firstly, that corporate governance is generation versus an ambiguous environment The third hypothesis was that companies with l Shonhiwa is a chartered direc- an indicator of future value, across a wide range of financial - Ensuring that risks are taken and managed ap- strong corporate governance are better at retaining tor and has authored books on leader- measures. propriately in support of the strategy, which results value than those with weak governance: ship. He writes in his personal capacity. The total shareholder return delivered by governance in more predictable operating performance and They are 1 percent more solvent and are bet- Getting most out of the marketing function Workmore Chimweta

H marketer is a chief executive (CE)’s best friend. Not only does he/she have the capacity to make the business Tlook good this month, she builds it for the long term. Here is why. What does a marketer do, anyway? Marketers are professionals charged with building the connection between the customers or potential customers of a business and the proposition the business offers, at a price and a profit. The magic words there are ohns 2 s proposition and profit. ote that product doesnt come into play here. The primary magic s are proposition and profit. Proposition Wondering why product hasn’t featured and why proposition is core? The reason is very simple. Customers are not looking for a product per se. They are looking for a solution. They have needs and are looking for satisfaction. ohn gets hungry around noon every day and wants satiation. We could simply give ohn an intravenous inection of liuified nutrients. That would not suffice, would it ohn wants an experience. There must be pleasure in satiation. More than pleasure of the mouth. ohn wants more. Marketers make it their business to understand what pleasure means to ohn they call it insight and they make a proposition to ohn that hopefully he cannot resist innovation. The trick comes in the fact that there is more than one marketer propositioning ohn. Who will get John’s dollar? Success is not assured at the point a marketer wins ohns dollar. The marketer must understand how to break down that dollar in business speak. After considering the cost of the chicken and chips that we sold ohn, along with the packaging and the costs of frying it, our marketer establishes the first hurdle. Gross profit and gross profit percentage. This begs the uestion, for every dollar we got from selling ohn our chicken, and apart from raw material, packaging and cooking costs, what money did we have left over to pay our costs of selling, distribution and management? If we recognise that some of these costs are variable and will only be incurred when we are producing, we can subtract them from gross profit and remain with what are called fixed costs. These are those costs which we must incur even if we do not open for the whole month. This might be rental costs, management salaries, insurance etc. The money left from the dollar sold to ohn after taking out variable costs from real gross profit is what is referred to as contribution dollars or profit. This is the most important line of profit to understand. It helps us determine whether our business is alive or dead. It tells us what we have available to contribute to the fixed costs of the business. If we are able to contribute to the fixed cost of the business and have some change left, we are in business. Ac- countants call the point of ust being able to pay for fixed cost, the break-even point. It is a milestone point that every good marketer needs to know. A marketer knows how many chicken meal sales cover the business’ expenses. Every month a marketer must know on which day the company breaks even. Every cent that comes into the business over and above break-even filters down as real profit in the pocket. Any such profit which is created through marketing or management intervention is what is called incremental contribution. Marketers obsess over incremental contribution because it is from incremental contribution that marketing activity can be funded. And this is the virtual cycle of success. If any investment into the marketing of the business proposition brings into the business incremental contribution, that is sweet business. This is the point that the marketer almost does not need anyone’s permission. They begin to play in the “self-funded” space. It is the job of the marketer to demonstrate to the CE that the initiative is self-funding and get alignment on an acceptable time horizon that is compatible with the business’ other priorities. The finance director should partner with the marketer in building this story. In business, every story is about the consumers. And in business, every story is financial. veryone must understand the consumer story. ohn is hungry. A marketer knows how to satisfy ohns hunger. Marketers, do your maths. Give ohn a solution. Finance team , partner your marketers. CE’s - give marketers a chance to offer ohn a tender, uicy, sizzling hot chicken n Chimweta, a member of the Marketers Association of Zimbabwe Page 22 | October 01-07 2020 The Financial Gazette Column/Markets War against counterfeit goods far from over he rapid growth of capitalism through gi- tioning China, a country that has over the years ing. gantic manufacturing industries as well as gained a notoriety for dishing out all manner of Time may have come for those who have been thriving Tthe miracle of the electronic age makes the fake products, and both the developed and third on the fake products market to pay the price because interna- fight against patent and trademark protection a world have been recipients of this country’s fake tional brand owners have ganged up against China and are near futile game. merchandise. putting immense pressure on it to put a stop to all forms of The appetite for affordable goods by con- Gucci, Georgio Armani, Hilfiger, expensive piracy. sumers, the need for consumers to get protection wines, alcohol, cigarettes, cell phones, computers, Indeed, those who have travelled to China recently talk against fake products, as well as the need by in- vehicle spare parts, and in fact anything capable of of massive operations in that country to seize all counterfeit novators to benefit from their ideas bring a con- being made have been plagiarised and sold from products from anyone found in their possession. Those who trasting but interesting view to the whole subject China and those responsible for the mischief have have been unlucky have lost valuable life savings after losing of intellectual property rights. racked in billions of dollars, to the detriment of the goods destined for resale locally. In the international forum, the discourse on brand owners. Closer to home, South Africa has been roped in and its the subject has tended to question the ability of Legal Matters Musicians and film makers have been hit hard customs service is intercepting any merchandise in transit both international and domestic law to curb the by piracy and those who have been slow to find from anywhere in the world for as long as it is fake. Con- worrying and escalating violation of intellectual with ways of conquering the black-market have failed tainers of cell phones and their accessories, clothing, vehicle property rights. VOTE MUZA to survive. spare parts and all manner of goods have been impounded Those who are prone to predicting argue that Gone are the days when musicians and film and destroyed leaving local victims in misery. capitalism within the next few decades will reach makers used to make money through selling CDs the fake products market remain nameless and Getting legal recourse has not been easy for once found its saturation point, and it might resultantly be or albums because the electronic age has made faceless, making the business of catching them a in possession of counterfeit goods; the South African law af- impossible to pass any laws that might bring an reproducing the staff for either domestic or com- none starter. fords no protection to offenders. Those who have got wind of effective end to theft of patent, trademark or copy- mercial purposes easy. Hence live musical shows There is no discussion on counterfeit prod- the exercise are rerouting their cargo through Kenya, a coun- rights. The Internet has compounded the problem, where ticket sales may guarantee revenue are the ucts that can meaningfully be done without men- try that has not yet joined the international anti-piracy club. as some gangsters and industrial cartels driving only means by which artists may now earn a liv- Counterfeiting or piracy has been labelled the cancer of the century, and despite the existence of a plethora of international, regional and domestic legal instruments to curb the practice, very little has been archived. Locally, while our manufacturing suffers, those importing cheap Chinese products have been smiling all the way to the bank. It appears though that very little can be done, because ours is an economy that cannot meet the demand of local consumers on many products that matter. We remain at the mercy of those cartels importing pirated products. The goods come cheaply, but most have no sound back up service and are not durable and barely last their expected lifetime. History has taught that the law does not always provide protection wherever it may be expected to offer such protection, and with regard to the growing threat of fake merchandise those who bring about any form of innovation must begin to devise other means of protecting their rights. For without that, they might end up creating ideas only for intellectual property thieves to benefit. n Muza is a Harare-based legal practitioner. He writes in his personal capacity. India's kite-makers see sales fly during lockdown OHAMMAD Ahmed has been selling kites for the past 11 years, and he says he has never seen Mit so busy. Sales at his shop in Delhi have soared over the past six months — thanks to coronavirus. Ahmed says that on most days, since India went into lockdown on March 25, he has restocked his shop with kites worth a total 150 000 rupees ($2 000), only for them to sell out by the evening. "I am tired of taking phone calls," he says. "Suddenly everybody has needed kites. I am still getting calls from all over the country — Maharashtra, Tamil Nadu, Rajasthan… There is still so much demand that I am not able to fulfil it. While Italians sang songs from their balconies and win- dows to boost morale when they were stuck at home due to Covid-1 restrictions, Indians flew kites from their terraces and roof tops. Ahsan Khan, a seller in Mumbai, says the country was at risk of running out. "The period between April and August is usually the leanest (for kite sales)," he says. "But this year, I have sold about 500 000 kites (during that time)." He adds that neighbouring Pakistan had also caught the kite-flying bug during its lockdown. I am even getting calls from Karachi and Lahore in Pakistan, from people offering to pay me double the usual amount." Kite-flying has been a popular pastime in India for cen- turies, with historians saying that it was introduced to the country by Chinese travellers. It is, however, usually a seasonal activity in India. In most parts of the country sales peak around the festival of Makar Sankranti — celebrated on January 14, to mark the beginning of spring and harvest season. The tradition of kite-flying has long been associated with this festival, with the western state of Gujarat organis- ing an international kite festival on the same day. Preparations for this begin months earlier, with kite-makers from other parts of the country going to Guja- rat, and the city of Mumbai, just to the south, to lend their expertise in making India's traditional brightly-coloured paper kites. Some other festivals, like Basant Panchami and Pahela Baishakh, keep up the demand in northern India until April, after which sales start to fall. They then recover just before August India's kite-makers see sales fly during lockdown when India celebrates its Independence Day. — BBC Page 23 | October 01-07 2020 The Financial Gazette Column Time to ring-fence the human resources profession Charles Tichavavamwe Analyst. Analysing HR systems cannot be achieved ed cadres. Of concern as well are the bureaucratic old. This following statement is very common in through the use of statistical models only, more im- systems that exist in the public sector, which, if not public sector boardrooms; MAGINE if anyone, even without a valid driver’s licence portant should be the interpretation of results in the strategically managed, can impede on the competi- “HR is just a 'new thing' which was introduced could be allowed to drive on our roads! Imagine again if such context of HR management principles. Statisticians tiveness of organisations. Even though there are old around year 2000 or so. We have been operating Ia person could be permitted to operate a passenger services and mathematicians cannot do so because they do not established ways of dealing with people, the system without it and we can still do better without it. It’s not vehicle just because he watched his uncle or brother operate the understand the dynamics of HR management. should be flexible to allow buy-in of new trends. anything so special…” same at some point. Strategic management inclusion Why not have an annual HR conference which takes Pushing the HR Practitioner’s Bill This will be catastrophic! Now, what if anyone could be an A general observation has revealed that most of every practicing member onboard. IPMZ, as the body which represents the practi- accountant — would we have reliable accounting records upon those organisations which are deliberately working You will be surprised to see that you have so tioners managing people in Zimbabwe, has already which sound management and investment decisions can be against the HR profession do not have much talent within your ranks. It’s either achieved some milestones in trying to provide pro- made? an HR representative at their L-suite. By their zeal will eventually die a natural tection of the profession from abuse and attacks To those who subscribe to the warped notion that certain jobs now, the strategic contributions of HR death or they will choose to leave the or- from various detractors. One such milestone is the require mere application of natural logic — would you be able to should have been widely accepted across ganisation due to frustration. There is a conception and subsequent initiation of the drafting defend natural logic devoid of professional principles applicable the whole industry and commerce lead- tendency where by those at the helm of of the Human Resources Practitioner’s Bill close to to a given decision matrix? Can this line of reasoning possibly be ership. organisations feel threatened by young, a decade ago. rode on in respect to the human resources profession? If your current HR person is failing to vibrant and talented professionals, usually The first draft was issued in the year 2013. e- How then can we safeguard the interests of our stakeholders prove his worth, it is better to search for labelled as overzealous when they suggest spite IPMZ’s effort to make the bill sail through Par- from the cunning and yet misplaced antics of chancers and char- talent elsewhere rather than over-gener- interventions that are not characteristic of liament, the body faced a number of setbacks. How- latans who claim knowledge and skills that they seldom possess? alising that HR people are not ready to be part of the the traditional and normative practices of the compa- ever, it is still persistent and there is hope that sooner What is the essence of professionalising a given skillset and what strategic decision makers. We have fired-up, young ny. So, they do everything possible to frustrate them or later, the HR profession will be regulated by an Act are the potential merits that can be reaped from such an endeav- and passionate HR practitioners who are willing to forcing them to leave or at least neutralise them. I be- of Parliament. or? The only way one can clean his body effectively is for his advance the strategic management narrative and cre- lieve if we halt a bit and hear them out as well as try n Tichavavamwe is an HR Practitioner and body to come into active contact with water and not by merely ate value for organisations. out their suggestions, our firms can become better in writes in his personal capacity. For comments you looking at it. Allow them to climb the corporate ladder and every respect. can contact him on +263773614182, tichavavam- If you find out that your home is under severe threats of in- enable them grow and bloom. Oftentimes we find Certainly, our VUCA environment calls more to [email protected] trusion, it is only rational to put in place the necessary security leadership frustrating these young, vibrant and talent- the appeal of new inventive models and less of the safeguards, which, albeit may never offer full proof safety, can nonetheless substantially reduce easy access to your property by inimical and misguided elements. The same applies to a profession. There is need for a profession to be kept safe from abuse and attacks by "intruders". This article is predicated on the spate of job adverts with a very confounding mismatch between the job and person speci- fication in the domain of Human Resources Management practice. In short, it is intrinsically irked by the degree of casualisation of the HR profession and portrayal of same as a cheap undertaking not warranting occupation by a person with requisite training credentials. Human resources profession as a career When curriculum developers make considerations of requisite skills, knowledge and attitude (SKAs) necessary for one to successfully perform a given job, the outcome is a product of a well-researched and scientifically informed exercise. These SKAs are then bundled up to define ideal constituents of a given profession. Therefore, one who undertakes a study of a given professional programme does so to equip him/herself with relevant knowledge, skills, attitudes and experience that when put to practice makes that cadre an above average performer. Such an individual can never be the same or worse than one without such training except in a case of uncommon mental and or physical handicap of such an individual. Equally, a person of a different career or professional orientation cannot claim to be a jack of all trades or else risk being a master of none. Therefore, the HR portfolio cannot be just carelessly handed over to an individual without an HR ualification and the same be expected to perform above board. As a result, we end up having job adverts like the one below; Job Title: Human Resources Trainee aficaons and eence aceos egee n ngs or Communication. I remember quite incandescently the level of disdain received from members in all of our virtual HR Zone-Zim platforms when this advert was flighted in the local press by a certain firm and shared in our virtual platforms. Members both rationally and emotionally bemoaned the degree of casualisation of the HR profession. We unanimously agreed that as much as communication is a skill that an HR professional should possess, it is but a fraction of many other skills needed in HR which an incumbent with an English Communication degree vastly lacks. It appeared apparent that possibly because the HR in that particular firm had left for whatever reason, hence the need for replacement, another person totally foreign to the intricacies of the profession was randomly ripped in to draft and publish this advert. Now, let’s just ponder on the fate of that company after having engaged an HR candidate with only an English Commu- nication degree. Not only did this advert glaringly expose the danger of as- signing non-HR persons to handle HR business but it also la- tently insinuated that HR is not a profession as its mandate can be executed by any wannabe. What a misnomer! Respect has to be given to the profession of Human Resources Management. Again, let us have a look at the second job advert below; Job Title: HR Analyst aficaons and eence egee n ascs aeacs o eaen. Someone asked, “Where is logic in this? Why do companies use HR titles to further their own agendas? I think the job has been already taken, this is just a smoke screen.” However, some respected management scholars supported the advert on the basis that most HR practitioners are shy and scared of numerical tasks. This can substantiate my submission in one of my articles where I implored fellow practitioners to warm up to the idea of HR Analytics if they want to be seen as strategic players in their organisations. It is lamented that there is low uptake of HR metrics by practitioners even though this management tool was introduced way back at the middle of the 1th century. Certainly we have to close this gap because the “predators” are using this weakness as a scapegoat. Are we ready to move with global trends or we are com- placent and happy with the status quo? Locally, IPMZ is now offering HR Analytics Certification and that is a step in the right direction. Internationally, HR Analytic Academy provides online programmes. They intimated that on average, students may take 18 hours to complete the HR Analytics for HR Business artners course. With that certification, there is no basis for taking someone with a degree in Statistics or Mathematics as HR Page 24 | October 01-07 2020 The Financial Gazette Motoring Land Rover Discovery Sport D180 R-Dynamic HSE . . . significantly refreshed, but still familiar poration of plenty of soft-touch surfacing and materials that pass muster in visual and tactile terms. Some of the nether regions, such as the unlined door pockets and the lower dash, TOP GEAR aren’t quite so classy and the with absence of any gloss clear coat Richard Wiley around the tailgate aperture was NYONE who’s con- a surprise, but overall, passen- fused by Land Rover’s gers will feel very much at home model naming regime in this cabin. A Less satisfactory is the rather could be excused, especially when it comes to the Discovery narrow and somewhat clunky range which is presented here infotainment screen with nav, as a Sport model complete with part of Land Rover’s Touch Pro premium HSE and R-Dynamic system. In place of the second dressing. display screen found on the Introduced originally as a Discovery, the Sport presents Freelander replacement, the a large, black button-festooned Disco Sport underwent a some- Heavily bolstered seats stand out in a well-equipped cabin. Rear seat reclines and slides and is more spacious than expected. touch screen which is awkward what overdue fi nessing in the to use on the move and tele- UK in 2019 and presented it- graphs every fi nger mark. self with its new face in Mzansi For the record, this vehicle shortly before the wretched vi- included an optional Conve- rus arrived to spoil our outdoor nience Pack (loadspace equip- fun. In essence, it is positioned ment for safer load stowage in between the Evoque and the the generous 963/1574l load Discovery, yet it was the model area), an Activity Key and a that came with seven seats. That Technology Pack which among confi guration is now optional other features provides a Clear and is accurately described by Sight interior rear view mirror the importers as a 5+2. (very useful when off-roading) Externally, new LED lamps, plus a Head-Up display and a new grille and tweaked Wireless Charging together with bumper designs front and rear a Premium Interior Pack, all of are most obvious but aren’t as which adds just over R25 000 to signifi cant as the adoption of a selling price in RSA. 10+ percent stiffer front end that You have a right to expect a sees the introduction of a solid- generous level of equipment in ly mounted sub-frame (dubbed a vehicle that commands a near Premium Transverse Architec- six fi gure Rand price is standard ture which signifi cantly im- form, and that you get as all the proves comfort levels and noise expected mod cons are on board absorption. Also hidden away along with a host of air bags that are a larger (67 litre) fuel tank work in parallel with numerous and greater loading capacity. active safety aids. Please pay a Equally importantly, the visit to www.landrover.co.za to revised structure permits use get to grips with the vast array of LR’s in-house Ingenium of options on offer. (Please note engines, in this instance a 2.0 than a refreshed Discovery Sport turbo D producing 132kW at 4 was recently unveiled in the UK 000 rpm and more importantly, New lamps and grille mark out latest Discovery Sport. and should be in RSA early in a chunky 430Nm torque peak 2021. Among the upgrades, which holds station all the way such as when traversing hilly But the irony of equipping a a contrast black roof and a gloss horizontal panel at the base youll fi nd a much faster, more from 1 500 to 3 000 rpm. terrain, as found around my Land Rover with such a sporty black exterior pack. The add- of the tailgate that features a responsive Pivi infotainment Given its relatively recent residence, or when travelling in wheel and tyre combo is self-ev- ed dark bits seemed a little lost complex honeycomb structure system so it seems the makers arrival, more might have been dense traffi c which triggers con- ident when this vehicle’s single on this dark ortofi no Blue car within its depths. Naturally, the agree an upgrade was required.) expected in terms of economy stant speed changes, the box is biggest asset - its off-roading which was endowed with a nice, (cosmetic) honeycomb design In summary, the Discovery and refi nement from the Ingeni- over-willing to search for anoth- ability - is taken into account. glossy fi nish and decent panel was nirvana for dust and dried Sport model seems to be the odd um unit in outright terms. Other er gear which isn’t always ben- The AWD system is FWD bi- alignment, but allow me to add mud and required attention with man out in the Land Rover line- than when pootling along the efi cial. All this tells you that the ased but knows where the best a rider about some of styling a brush to extract. I might be a up. For sure, it’s well equipped motorway at a steady speed, it extra gears are there primarily to grip is to be found. Further, the adornment. niggly old bugger when it comes in standard form and a positive proved diffi cult to reduce thirst massage offi cial” fuel econo- tweaked Terrain Response 2 Some of us journos do actu- to detail and car cleanliness, but extravaganza as tested. It’s also below 9.5l/100km and when ex- my and emissions fi gures. system, with an Auto setting for ally wash press cars and let me I cannot see the point of adding extremely comfortable and re- tended, the combustion process There can be no doubt, how- Mr Average, can be confi gured say that this one made the job such fussy styling-driven ele- fi ned when that gravelly diesel can sound somewhat gruff. ever, about the quality of the ride, to suit prevailing conditions diffi cult and it wasnt ust that ments to the rear of a car which, isn’t extended and it is, without On lighter throttle openings assisted by optional Adaptive courtesy of simplifi ed switch- dark blue metallic paint that by design, should be spending fear of contradiction, an off-road and on the cruise though, the Dynamics, which is remarkably ing. telegraphed every speck of dust. lots of time off-road. leader. But it seems a trifl e in- aural disturbance all but van- well controlled yet comfortingly My own reasonably exten- Firstly, the black plastic R-Dy- Inside, the dark theme of congruous that the compact ver- ishes and regardless, the gruff- pliant notwithstanding the pres- sive experience of LR’s AWD namic badges are positioned the exterior was carried over in sion of the Discovery should be ness is mostly heard and never ence of optional 21-inch alloys systems confi rms a wide-held low down, right behind the front the form of an all-black cabin offered with two additional seats translates into any roughness wrapped in low profi le 244 belief that regular off-roaders wheels where they gobble up in which the revised dashboard and carry a Sport moniker when which can be felt through the rubber. Even when pressing on, wont fi nd better, but observa- every bit of road detritus imag- design - more akin to that of the its primary virtue is not getting pedals or the wheel, for exam- the grip levels are good and the tion, sadly, suggests that mount- inable. Then the gloss black Evoque – stood out along with out of the starting blocks. From ple. Indeed, that torque output roll control is remarkable for a ing Sandton pavements may be trimmings around the nose the large, generously bolstered, a purely personal point of view, provides pretty effortless thrust vehicle of relatively lofty build. the most taxing task the under- show the identity of every insect leather-swathed front seats with the entry level model Sport can in all conditions, and I know The steering too is responsive pinnings will be asked to deal encountered, but it’s down the 14-way auto adjustability to- be had for around R250 000 less from past experience that it’s and nicely weighted with a good with, and that’s just why those back that the dirt traps prolifer- gether with heating and position than this top model and for me, ideal for off-roading as it pulls measure of feel telegraphed fancy alloy wheels are offered ate. memory that added more than that’s a much more compelling the mass along nicely on a mere through the system, while the as an option. This test car had clearly been R27 000 to the cost. A Meridian proposition for those who often whiff of throttle. When pressed, all-disc brakes are reassuringly This test vehicle with its exposed to lots of dirt recently Surround Sound unit ballooned venture off road. the Sport will breach 100 km/h powerful and perfectly weight- HSE and R-Dynamic spec start- as the Sport and DISCOVERY the total by a further R10 200. For those who don’t, I’d sug- in around 9.7s and go on to a ed. This mechanical integrity is ed life near the top of the model badging, made up of raised in- Those front seats certainly gest the more style-led Evoque claimed 202 km/h. supplemented by effective sup- tree with niceties such as LED dividual black lettering, sported proved to be supportive and is a more compelling proposi- The motor is married to a pression of wind noise, aided by lamps being included, but in this a brown halo around each letter, comfy, more so than the other- tion and just maybe, the base 9-speed auto which I feel is at multiple seals on the doors, and instance, some R50 000 worth and then there’s a push-in black wise spacious rear quarters oc- level Velar too. Now why am least a gear more than needed. by decent damping of road gen- of external” extras made the panel to which the number plate cupied by a sliding and reclining I giving you so many options For the most part, the shift ac- erated commotions, such that re- list. Among the titivations were is attached. This proved to be a split pew that’s rather shapeless. when the Sport has been Land tion is rapid and unobtrusive but fi nement levels within the cabin a fi xed panoramic roof, the competent water and dust trap The interior ambience is Rover’s best seller in the UK under more testing conditions are thoroughly pleasing. aforementioned 21-inch wheels, but nothing like the indented cossetting thanks to the incor- market for years? The Financial Gazette October 01-07 2020 | Page 25

National News Zimplow in asset buying spree Nelson Gahadza Staff Writer

IMPLOW Holdings (Zimplow) is set to acquire three entities as the group seeks to diversify its product and Zservice offerings. In a circular to shareholders, Zimplow said it was pursuing the acquisition of Scanlink (Private) Limited, Tredcor Zimbabwe, Birmingham Investments and a two-hectare property along Dagenham Road in Willowvale, Harare. “The acquisition of Scanlink and Tredcor Zimbabwe will result in an increased market presence for Zimplow in new product categories and will add brands with existing market share and brand equity that resonate with local and international customers,” Thomas Chataika, the company’s chairman said in the circular. He said the transaction will also create a robust balance sheet through the addition of property assets. “A strengthened balance sheet will increase the company’s ability to attract capital and pursue growth opportunities organically and through strategic acquisitions.” According to Zimplow, the acquisitions will be done through the issuance of 106,19 million new shares, representing 30,82 percent of the company. It is hoped that the consolidation will unlock cost savings for Zimplow, Scanlink, and Tredcor Zimbabwe. “With three corporate structures, there is duplication of costs to achieve the same objective. "... Zimplow will improve its market position by gaining strategic business in haulage trucks, buses and tyres.” Scanlink is the sole distributor of Scania products in Zim- babwe. Its product portfolio consists of trucks, buses, coach- es, vehicles and generators. In 2019, vehicle sales were the leading revenue contributor of $97,75 million at $53 million. Parts followed with $29,98 million and workshops at $14,77 million. At present, it is 100 percent owned by Pioneer Development Company. “The acquisition will be done through the issue of $26,25 million Zimplow shares to the Scanlink shareholder. Senior staff from Zimplow have already been seconded to the company. Tredcor (trading as Trentyre) is the exclusive distributor for Goodyear tyres in Zimbabwe. It is involved in tyre re-treading, fleet tyre management, tyre fitting services and distribution of various brands of new vehicle tyres. As at December 2019, the company reported operating profit of 27 million from million in the previous year. The largest contributor to its $81,68 million revenue was new tyre sales at $60 million. A total 36,1 million shares will be issued to its shareholders Clan Services, Magister and Holdsworth Holdings. [email protected] Page 26 | October 01-07 2020 The Financial Gazette Foreign News Zambia royalty spat halts $2bn mine projects OPPER miners in Zam- Sunday. bia have halted $2 billion Mining investors are pushing Cof planned investments for tax cuts after Zambia ap- because a royalty tax introduced proached external creditors for Netflix bets on mobile last year makes the projects un- as much as $1 billion in debt-ser- viable, according to an industry vicing relief as the government lobby group. seeks to restructure its foreign content blitzkrieg A plan by First Quantum Min- loans. erals Ltd. to invest $1 billion ex- Zambia, Africa’s No. 2 copper ETFLIX became the world’s largest over 100 million Nigerians living on less than subscription-streaming service by $1,90 a day, it could still be a stretch. tending the life of its Kansanshi producer, depends on the metal flooding the market with popular The offer is still costlier than the equiva- operation won’t proceed until the for about 70 percent of its export N content that’s cheaper than the competition. lent of 250 naira a month charged by Iroko, royalty is deductible from other revenues. The chamber expects et five years after it arrived in Africa, a streaming platform that has the largest on- corporate taxes, said Sokwani the coronavirus pandemic to cut the US company is struggling to grow be- line catalog of Nigerian ‘Nollywood’ content, Chilembo, chief executive of- output this year to about 764 188 yond the wealthiest segment of the popula- including long-running hit comedy “Jenifa’s ficer of the ambia Chamber of tonnes, far short of Zambia’s tar- tion, held back by poverty, piracy and limited Diary.” Mines. The same goes for EMR get of 1 million tons. access to broadband. In a continent of more But the income from Iroko’s low-price Capital-backed Lubambe Copper The revenue-based royalty than a billion people, the service has 1,4 plans hasn’t been enough to cover its costs Mine’s project to invest a similar increases from a minimum of 5,5 million subscribers, according to Digital TV and the company is now scaling back its Af- amount in a new mining opera- percent to 7,5 percent when cop- Research. That compares with almost 20 mil- rican operation to focus on wealthier viewers tion, he said. per trades at $6 000 to $7 500 a lion customers signed up to African pay-TV in the diaspora. “We need this royalty pay- Edgar Lungu tonne, with a further jump to 10 company MultiChoice. Co-founder Jason Njoku partly blames a ow etflix is stepping up a gear ex- bleak economic backdrop. Nigeria has been ment regime removed for prog- percent should prices top $9 000. perimenting with cheaper, mobile-only sub- hurt by coronavirus lockdowns and a lower ress to begin,” Chilembo said in with Glencore Plc over the Swit- Copper has traded above $6 000 zerland-based company’s plan to scriptions and commissioning more local- oil price, leading to the threat of a recession. an interview. “If the government since the end of June. ly-produced shows that reflect the cultures mothball Mopani Copper Mines’ The government expects 33,6 percent of the thinking is otherwise, good luck.” The royalty represents a dou- and experiences of ordinary Africans. population will be unemployed by the end of operations. John Gladston, a spokes- ble taxation of producers, which An important battleground is Nigeria, this year, up from 23,1 percent at the end of Zambia’s increasingly aggres- man for Vancouver-based First also pay corporate income tax, sub-Saharan Africa’s biggest economy and 2018. Quantum, declined to comment. sive stance over the nation’s key Chilembo said. the heart of its TV industry. “You can’t remove yourself from the mac- A spokeswoman for Lubambe export industry may partly reflect “This pushes up the effective The rapid expansion of 4G mobile net- ro picture in igeria people are poor,” said didn’t immediately respond to an maneuvering by President Edgar tax rate and makes these proj- works gives streaming services a new chan- Njoku. “These markets are tough and I don’t email seeking comment. Lungu as he struggles with co- ects unattractive given the cost nel to reach audiences as long as theyre see them getting any better.” Earlier this month, Lubambe nomic challenges ahead of next of capital,” he said. “As soon as able to pay. etflixs answer is to avoid the low pro- CEO Nick Bowen said Zambia’s year’s elections. the double taxation element is For etflix to target the whole region duction values found in a lot of ‘Nollywood’ changing tax regime makes in- Zambia doesn’t get enough removed, these projects become coming in with a higher price, the mobile output and channel the continent’s best tal- market will be crucial,” said Ben McMurray vestment difficult. from its mineral resources, but viable.” ent to develop slickly-made shows across would be willing to consider min- of Ampere Analysis. every genre. This year it struck deals with Zambia’s uneasy relationship The chamber wants the royal- etflix is testing if viewers will buy the ing company grievances over the well-funded producers like Nigeria’s Eb- with mining investors has dete- ties to be deductible from profit mobile-only service at 1 200 naira ($2,65) a royalty, Finance Minister Bwalya onyLife TV and Star Wars actor John Boye- riorated over the past 12 months, tax. month, well below the 2 900 naira it’s been ga’s UpperRoom Productions. Ng’andu told state television on with the government clashing — Bloomberg charging for its most basic account. With — Bloomberg Life & ArtsNews Worth Knowing ctober 010 2020 Page 2 Fragrant flavours of the east at Shop Café and iconic roast pork at Garfunkels HIL the coronavirus got to apply hand sanitiser before crisis rages unabated in leaving home, the gate keeper Wthe UK, and social here will spray your hands, en- lockdown in London and other uire after your health, and take parts of the country seems inevita- your temperature with a thermom- ble, imbabwe shows signs of eter gun. coming to terms with the pandem- At Shop Cafe, Leeroy Wallace ic. and his sous-chef Tafi offer a 10 Although we're still dealing lunch time buffet from Tuesday to with the first wave of the virus, Saturday, between 12.30 and returning residents are now al- 3pm. A mouth-watering selection lowed to self-uarantine at home, of vegetarian salads made from domestic and international flights seasonal produce is on offer, and have resumed, schools are for carnivores, side dishes such as re-opening, and bottle stores are chicken schnitzel or slow-cooked now able to sell alcohol to their glazed ham are available. Before thirsty clients. Restaurants are per- approaching the buffet, we sipped mitted to stay open longer, mak- a glass of chilled sauvignon blanc ing it possible for patrons to eat an house wine 3 and munched early supper and be home before crispy tortilla chips with a creamy elicious vegetarian buffet at he hop Cafemani conic unday roast at Garfunkels the 8pm curfew. dip of hummus, one of Leeroy's A number of restaurants were many specialities. seeds, olive oil and garlic. Other you're likely to meet up with masks, and scanned the wide smoked chicken salad, fish and unable to ride out the loss of busi- Later, I filled a large dinner dishes were unidentifiable, but friends not seen in a while, wheth- menu, that offered seafood, chick- chips or a Margarita pizza. ness during lockdown, and closed. plate with a colourful combination uite delicious. er strolling past, or having a meal en, beef and pork dishes. Most restaurants seem to be Where landlords were sympa- of salads. Tomato towers com- Be sure to book a table in ad- in the restaurant. There's plenty of Bearing in mind that Garfun- taking reasonable precautions to thetic and provided rent relief, posed of layers of roasted tomato, vance, especially on a Friday, as seating outside under shady um- kels has its own pig farm, whose keep their clientele safe. As a food others survived. Another import- feta cheese, grilled aubergine and this coincides brellas, or on the herd enoys superior genetics” it writer, I want to help the industry, ant factor is location if a restau- creme fraiche with a balsamic vin- with the Farmers A Matter of Taste verandah. Some would make sense to order a pork and will continue to eat out. Some rant in your hood is easily accessi- egar glaze, sat alongside a giant Market at Aman- intrepid patrons dish. George was happy with a ba- of my acuaintances still feel safer ble, has safe parking, is in spicy onion bhai, served with its zi. with choose to sit inside. con steak and chips 10, and eating at home, but on the other attractive surroundings, and has own dipping sauce. The following Charlotte Malakoff George and I said he would order it again. side of the spectrum, many indi- outdoor dining, the choice to eat On one side of a slice of uiche Sunday, I booked arrived wearing An iconic roast lunch will al- viduals are letting down their out or not, is easily made. was a fragrant cold lentil salad a table for two for masks, and were ways be my choice on a Sunday, guard, and casting their masks and Last week on Friday, I met up garnished with uartered hard lunch at Garfunkels in Borrow- greeted at the entrance by leading and pork roast with tasty gravy, fate to the wind. with friends for lunch at The Shop boiled eggs and finely-sliced red dale. Open seven days a week, restaurateur Llew Hughes, who apple sauce, rice, roast potatoes, The general consensus is that Cafe at Amanzi. Here, sitting is onion on the other, flavours of the you can be sure of a welcome was armed with a sanitiser spray. creamed spinach and butternut the virus is here to stay, and we either on an airy verandah, or in a east in a combination of fresh peas here, whether for breakfast, lunch All the waiters were wearing puree , fit the bill. If you con- must all find ways to live with it, sub-tropical garden of palm trees, and crisp green beans, dressed or supper. Occupying an enviable masks, some at half mast. Before sider pork an unsafe choice during whether staying in or eating out. ferns and bromeliads. If you for- with roasted coriander and nigella position in Sam Levy's Village, long we unhooked our own hot summer months, go for a Comments: [email protected]

resilient as they tend to benefit from the ZIMBABWE’S commercial and residen- flight to safe havens, where some investors tial property sector is reeling from the switch from euity to real estate to hedge double whammy of a longstanding eco- The woman in Masholds driving seat against loss of value. That trend tends to nomic crisis and the effects of Covid-19. withdrawn their properties from the mar- the economy. create some demand in strategic locations. This has seen both sales and rentals ket, further slowing activity within the sec- MC: o you think there is need for However, the income producing proper- plummeting, as hard-pressed businesses tor. What is the reason for this trend property valuers to relook at traditional ties will remain under pressure as their and beleaguered consumers are increas- GB: There are two scenarios at play valuation models, as concerns heighten capital values reflects the income earning ingly unable to afford to buy or rent prop- here. Firstly, there are those sellers who about the huge variations on properties capacity of those properties. We are how- erties. The Financial Gazette’s corre- bought their properties during the peak US GB: In our view, the valuation meth- ever expectant that the currency stability spondent Macilyne Chitepo (MC) this dollar era. sychologically, these feel they odology, which remains sound and solid, the country has experienced recently will week spoke to newly-appointed Masho- cannot dispose their properties at a price is not the root cause of the huge variations. stop the bleeding and usher in a new eco- naland Holdings chairperson Grace below the US dollar price they bought Valuation is a process of estimating the nomic traectory. Bema (GB), pictured, about the property their inflation hedging assets. The second likely selling price of a property. The ual- MC: With regard to the commercial sector in Zimbabwe. scenario is associated with developers ity of an estimate is hugely affected by the sector, would you say office supply contin- whilst market values have been going context within which the estimation is be- ues to outstrip demand in Harares central MC: Confidence in imbabwes prop- down, construction costs have been sticky. ing made. The huge variations in property business district and has this affected erty sector has sunk due to the widening As a result, if developers of either values is a reflection of the extent of distor- Mash Holdings in any way gap between seller preference and buyers' stands or completed units proceed to sell in tion of the property market. GB: The CB portfolio continues to capabilities, what is causing this and what this distorted market they would inevita- roperty valuation relies heavily on be under pressure. As Mashonaland Hold- does the future hold bly incur a developers loss instead of market transaction data. As stated before ings Limited we have plans to revitalise GB: Indeed, the property market has profit as they would be selling at a price there has been limited transactions in the those of our properties performing below largely been distorted due mainly to the lower that the total development cost. The believe, will help improve activity in the market and valuers are forced to base their optimal levels. es, the plans implementa- prevailing macroeconomic conditions. s- two variables, development cost and mar- property market. valuations on historical transactions and tion timelines were negatively affected by sentially, effective demand that is de- ket value, are driven by inflation and G roperty companies need to explore adust to suit current market conditions. Covid-1 and, in some cases, viability is- mand backed by financial capability has respectively. To improve effective de- ways to partner with local authorities and The adustments are largely udgement sues. We are, however, confident that once been going down from as far back as 201. mand, we need to increase our G. The come up with innovative solutions to pro- and somewhat subective. The other big the interventions are implemented, the In other markets, like markets for per- trend is, unfortunately, set to persist in the vide affordable housing for the bottom of challenge is that, unlike in securities ex- performances of the properties concerned ishables, the falling effective demand short term given the negative G fore- the pyramid market segment. change, the property market is generally will significantly improve. Ideally, we would have forced prices to go down, casts for current and next year. MC: Compared to the region, are fragmented and there is no central trading would have expected the responsible local leading to market clearance. However, in MC: What is your advice to the mort- property prices in imbabwe overvalued platform, where buyers and sellers inter- planning authority, the City of Harare, to the property market sellers can either with- gage sector considering that many home GB: I am not aware of any compara- act. This means that valuers rely on infor- take the lead in reviewing the Local lan draw their properties from the market or seekers do not ualify for loans tive empirical study undertaken to ascer- mal networks for market information and, umber 22 and, at a macro spatial level, hold up their asking prices. Given the high GB: We believe those running mort- tain this. However, I must say property as such, they may not apply the same in- align permitted uses with the current mar- inflation sellers have been unwilling to let gage businesses would like to increase values, or value in general, is largely influ- formation when undertaking valuations. ket reuirements. Unfortunately, the plan- go a real asset in exchange for the local their sales. However, as we saw in 2008 enced by the economic performance of the Fortunately efforts are underway for mar- ning authority has failed to respond time- currency. The Covid-1 pandemic has long term lending in a hyperinflationary country. Our country has been performing ket players to come together and share ously. We are, however, encouraged as worsened the falling effective demand as environment unfairly transfers wealth at levels below the region. market information through the Real s- more and more owners are pursuing re- most employers were negatively affected. from the lenders to the borrowers. With MC: What about rentals for both com- tate Institute of imbabwe. This would generation of their properties. I must say the currency stability ush- interest rates averaging 3 percent against mercial and residential improve the uality of valuations. MC: Mashonaland Holdings recently ered in by the introduction of the foreign inflation of around 78 percent uly GB: Indeed, our rentals are generally MC: o you foresee property values said reduced capacity utilisation across the currency auction system by the Reserve 2020, there is no incentive for banks to lagging behind the region based on the going down if there are no significant economy, the coronavirus-induced lock- Bank of imbabwe is encouraging. We offer mortgages. However, with the pre-Covid-1 statistics our research team structural changes in the economy down, and a decline in purchasing power begin to see sellers warming up to trans- growth in US dollar transactions following compiled. South Africa and Mozambiue GB: While some property sectors have continue to put pressure on demand for acting in both the US dollar and WL. the introduction of S.1. 18 of 2020 dual markets have been leading in retail and experienced some value erosion, other real estate space. What is the position Taming of hyperinflation should see confi- pricing, we have seen some banks starting office rentals respectively. As stated earli- sectors have been resilient. For example now n For full interview go to: dence restored in the property market. to issue mortgages in US dollar. This, we er, rentals in any market reflect the state of residential and land have been relatively www.finga.co.w MC: Most sellers are said to have Los Angeles Lakers and Miami Heat both breezed into the NBA Finals, losing three times apiece in three rounds. This marks LeBron James’ 10th Finals appearance and first with the Lakers, who last played for the News Worth Knowing championship with Kobe Bryant in 2010. It is the Heat’s first Finals appearance since 2014, when James led Sport them to the last of four straight title shots. Page 28 October 01-07 2020 SPORT SHORTS Lessons from the Russian GP ‘I am not going to lose’ HE Russian Grand Prix will Turn Two at Sochi has come un- not go down as a classic. Lew- der some scrutiny, specifically for the ZIMBABWEAN born, British boxer, Dereck Chisora will be is Hamilton's penalties killed way the policing of track limits and a rank outsider against Oleksandr Usyk, but he is convinced he T will make life extremely difficult for the unbeaten contender. off what could have been an intrigu- rules about rejoining the track led to ing battle for the race win, and there incidents and penalties. Dereck Chisora (32-9, 23 KOs) has warned upcoming op- was precious little action down the Britain's George Russell labelled ponent Oleksandr Usyk (17-0, 13 KOs) that he has no intention field. the corner "one of the worst on the of being the unbeaten Ukrainian's latest victim. But a boring race on a bland track calendar". And with a combination The two meet on October 31 in a fight that was original- has nevertheless brought to the fore of track-limits madness and a lack of ly set for earlier in the year until the coronavirus pandemic a number of key themes emerging overtaking it's a thought many share. ground live boxing to a halt for several months. in Formula 1 as the season heads to- Race director Michael Masi ad- Chisora will be Usyk's sternest test since the former undis- wards its final phase. mitted after the race that there was puted cruiserweight champion of the world moved up to the Hamilton simply punished for room for improvement here. maximum division, and though the Londoner is a considerable breaking rules ― again Perez shining in adversity underdog, he has promised to put the mandatory challenger to Hamilton feels like public enemy Sergio Perez is on the back foot the WBO heavyweight title through things he has never before number one with governing body the because his seat at Racing Point has experienced in the ring. FIA right now, after receiving a pen- been taken by Sebastian Vettel for "I am not losing. I'm going all out, guns blazing," Chisora alty that cost him a probable win for next season and he is looking for a told Sky Sports. "It's not about how much I want it. You know, the second time in three races. drive in 2021. when you want something badly, what you will do for it. I'll go With his lead at the top of the But he is putting in some good through this man. — dazn.com championship seemingly unassail- performances in the face of adversi- able even at this early stage, Hamil- ty to solidify his reputation and plant ‘I wanted to make Barca stronger’ ton came out after the race with the himself firmly on the radar of other LIONEL Messi says he had Barcelona's best interests at heart bold claim that the race stewards teams. when announcing that he wanted to leave the club in August. were "trying to stop me". For the second race in a row, Pe- The Argentine and the Barcelona board, specifically presi- The reality is that Hamilton and rez has had to race a car without new Hamilton leads Mercedes team-mate Bottas in the drivers' dent Josep Bartomeu, became embroiled in a bitter public dis- Mercedes have simply broken the championship by 44 points after the Russian Grand Prix. upgrades, after they were once again pute after Messi sent a letter informing them of his desire to rules both times. given to team-mate Lance Stroll fol- find a new club. In Monza, Mercedes and Ham- lowing his crash in Mugello. es in this manner, and the fact that on the shores of the Black Sea, with The 33-year-old admitted he had wanted to leave "all year" ilton pitted when the pit lane was Despite that, Perez was best of the he picked up penalties for both in- mountains as a backdrop, it should and claimed a clause in his contract meant he could do so for closed and received a penalty for it ― rest in both qualifying and the race in fringements (doing a practice start in create a nicely atmospheric setting. free, but in the end the Argentine was forced to stay as Barce- the same one as Antonio Giovinazzi's Russia, and well ahead of Stroll. He the wrong place on consecutive laps) But looks can be deceptive. The lona disagreed and wasn't willing to reduce its €700 million Alfa Romeo was given for the same beat fifth-placed Ricciardo by 22 sec- will only grate that bit more, and per- reality is that it's a circuit that lacks (US$897 million) release clause. infringement. onds - pretty much a full pit stop. haps seem over the top. much character. It's almost entirely Messi said his love for the club meant he had no intention None of Hamilton's immediate ri- He has had a public falling out The fact is, though, that Hamilton flat, and every corner seems almost of disputing the club's decision in court and dragging out a le- vals made the same mistake in Mon- with the team after being dropped at wanted to do a practice start there, the same ― an approximately 90-de- gal dispute. za and nobody else in the field broke the end of the season, despite having rather than in the designated practice gree turn. The only exceptions are the "After so many disagreements, I would like to bring an end the rules by doing a practice start at a contract in place. He has clearly felt start box, because it was less grippy slightly trickier ― but still 90-degree to everything," he told Spanish newspaper Sport. "We all have the exit of the pit lane in Sochi. poorly treated by a team he helped than the practice area, and therefore ― chicanes of Turns 13-16. to be united and assume that the best is yet to come. — cnn The regulations stated that drivers more like the grid slot he would be It's certainly not any driver's fa- save a couple of years ago by taking must do practice starts on the right af- starting on in the race. It would give vourite venue. them into administration and forcing ter the pit-lane exit lights. Mercedes him a better feel for the start. This year, Sochi followed on from a sale to Lawrence Stroll. Schumacher to make F1 debuts argued that there was no designated If this was allowed, everyone the debut of Italy's Mugello track, In spite of this, Perez is capable MICK Schumacher is one of three Ferrari academy drivers spot ― in terms of anything delin- would do it. The practice-start box which I praised in my last column of delivering good results, and his who will be given Formula 1 race weekend debuts in forth- eated by markings ― but they know has more rubber down because that for its old-school characterful feel. In fourth place is a demonstration that coming races. the rules define a specific place, and is the place drivers can practise their that context, I'd argue the new-school he does deserve a place in a decent Schumacher, son of seven-time champion Michael, and everyone else managed to use it. starts. So every other driver who sanitised feel of Sochi did little to car next season as well. British driver Callum Ilott will both drive in first practice at I do sympathise with Hamilton, complies with the regulations does help the excitement. Vettel counting down the days the Eifel Grand Prix on 9 October. because it is not necessarily his fault their starts there and little by little There have been seven Russian Next season can't come soon German Schumacher will drive an Alfa Romeo and Ilott a in both of these instances. rubber from their rear tyres is depos- Grands Prix at Sochi now, and it has enough for Vettel. Ferrari have a Haas. Both are Ferrari-affiliated customer teams. His Mercedes team let him down ited on to the asphalt. yet to produce a properly decent race. poor car this season and the four-time Russian Robert Shwartzman will drive at the season-end- by telling him to pit in Monza, and Sure, it's not always ideal for Overtaking is tricky and cars often champion has never looked comfort- ing Abu Dhabi Grand Prix. when Hamilton asked on the team race-start preparation, but they are spread out, despite the track having a able in it. The team Shwartzman will drive for has not yet been re- radio whether he could do a prac- the rules and Hamilton was the only high chance of a safety car. Team-mate Charles Leclerc has vealed. tice start from further down the pit one to do something different. He did Statistically, that safety-car prob- pulled a few star performances out of Schumacher and Ilott, both 21, are first and second in the lane in Russia, his race engineer Pete it twice, and he was penalised accord- ability will be even higher next year, the Ferrari and on Sunday he finished Formula 2 championship with two races remaining, while Bonnington gave Hamilton the green ingly. after first-lap crashes for McLaren's a very credible sixth from 11th on the Shwartzman is fifth. light to do it. The problem was, Ham- A bad track gives a bad race Carlos Sainz and Racing Point's grid. It is expected that at least one of the three drivers will ilton went a lot further down the pit The Sochi Autodrom winds its Lance Stroll. But the safety car on In contrast, Vettel had another be promoted to F1 next year, with Alfa Romeo and Haas the lane than the team had expected. way around the 2014 Winter Olym- Sunday did little to spice up the ac- weekend to forget. He crashed in teams most likely to take them. It's harsh for him to lose two rac- pic Park. Combined with its location tion ― unlike in Mugello. qualifying while trying to make up In preparation for their F1 weekend debuts, all three driv- a 0.4-second deficit to Leclerc, and ers will test at Ferrari's Fiorano test track on Wednesday in a then never made an impact in the 2018 F1 car. — bbc.com grand prix after a long first stint. The Ferrari is certainly a hand- ful with which Vettel is struggling Venus vague about future to make any progress, but on top of VENUS Williams was vague about her future after her latest that his relationship with the team has first-round exit from a Grand Slam tournament, saying she soured in a similar way to Perez's at was "not looking forward yet" to 2021. Racing Point. With her 6-4, 6-4 loss to Slovakia's Anna Karolina There has been needle between Schmiedlova, the 40-year-old Williams bowed out of a Grand Vettel and team principal Mattia Slam event in the first round for a third time this year, after Binotto all season since it was con- doing so at the Australian Open and U.S. Open. firmed Vettel hadn't retained his The number 76-ranked Williams has lost eight of nine drive. matches this year, with her only win coming over eventual Vettel doesn't seem to trust the U.S. Open finalist Victoria Azarenka in Lexington, Ky. Ferrari strategists at all this year “It's been a very long year of quarantine,” she said. “Now ― and this is not the first season in I'll get to rest. So I'm looking forward to that. which that has been apparent. He is "I'm going home from here. I'm done. If there is some- debating and often overriding some where to play, I won't be there." of their in-race calls. But more impor- As for her future plans, she added: “I just stepped off the tantly he seems to have lost his usual court. So even though it hasn't been a ton of tournaments, it's mojo for racing and performance. It still been a very long year. So, yeah, I'm not looking forward almost looks as if he is seeing out this yet.” A 2002 French Open finalist, Williams has won seven Tavengwa Mukuhlani, Zimbabwe Cricket chairman (centre), Hamilton Masakadza, ZC director of cricket, year in a holding pattern. Grand Slam singles titles, but her last one came at Wimble- left, and Givemore Marume, ZC acting managing director at the launch of the National Premier League at I'm sure a fresh challenge at Aston don in 2008. She reached the 2017 Australian Open final, los- Harare Sports Club yesterday. The nine-team domestic tournament will be played on a single round basis across Martin will reinvigorate Vettel and he ing to her sister Serena in the final when Serena was pregnant Harare, Bulawayo, Masvingo, Mutare and Kwekwe. Picture by Freedom Mashava probably can't wait. — bbc.com with daughter Olympia. — forbes.com