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News Worth Knowing Ex-Tongaat boss hits back: Page 7

December 12-18 2019 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette

ZSE Report The All Share Index gained 0,3 per- Zim bleeds cent on Wednesday to close at 232 points. Mash picked up 20 percent to end at $0,10, while FML traded 12,5 percent higher at $0,27. Econet gained 1,6 percent to close at $1,48. The Industrial Index was up by 0,3 percent to close at 772,3 points, while the Top 10 Index gained 0,3 percent to end at 207,1 points. The Minings Index was flat at 328,5 points. formal jobs Currencies (Bloomberg) % change USD:ZAR 14,7555 0,24 ◀ EUR:USD 1,1091 0,01 ◀ ◀ GBP:USD 1,3180 0,18 USD: JPY 108,7200 0,02 ◀

Stock Markets ◀ ZSE (All Share) 232 0,30 ZSE (Minings) 328,5 0 11 793.00 0,69 JSE ◀ as local rot ◀ FTSE 100 7 220.52 0.09 ◀ Dow 27 883,96 0,01

Commodities ◀ Gold 1 468,24 0.28 ◀ Platinum 930,58 0,94 Brent Oil 64,10 0,37 ◀

Grains (Grain SA) gets worse ◀ White Maize ZAR 2 116,17 0.4 ◀ Soya ZAR 4 900,79 1,5 Nelson Gahadza Israel Murefu, the Employers Confederation ◀ Business Writer of Zimbabwe president, said the ongoing job Wheat ZAR 2 907,19 1.6 losses were attributable to a number of factors IMBABWE’S deepening economic crisis that hindered capacity utilisation in organisa- Two percent tax is forcing many of the companies that are tions. Zstill in business to scale down their oper- “The major ones are power, fuel, water and to stay — Ncube ations and to lay off staff, with the jobs carnage foreign currency shortages, as well as, in some FINANCE minister Mthuli Ncube expected to escalate next year. cases, the lack of access to adequate capitalisa- says the two percent tax introduced by This comes as virtually all of the country’s tion or credit,” he said. government last year is here to stay. key economic indicators are pointing to a tough- Crucially, Murefu said, there were policies This comes as business had called er 2020 for business than this year — as inflation that had been put in place by authorities “which for the removal of the controversial keeps soaring and the local currency weakens, stifle business performance, especially the enact- tax, which is largely blamed for in- amid severe shortages of power, fuel and foreign ment of unilateral statutory instruments which creasing production costs and fuelling currency. choke rather than promote business”. inflation. “There is no demand for labour from busi- He said Zimbabwe’s total formal working However, Ncube told Parliament ness. There are two issues currently resulting in population, inclusive of civil servants, was cur- yesterday that money collected from job losses, which are that business has lost vol- rently estimated at a mere 700 000 to 900 000 Jackie Mpondo-Hendricks, the current and first black female pres- the Intermediated Money Transfer umes — at least 42 percent on average. people. ident of the Johannesburg Chamber of Commerce and Industry, Tax was being used for several gov- “In addition, it is currently not possible for “This is because many companies have closed says the 129-year-old organisation, which last week signed an MoU ernment projects. business to increase salaries ... but retrench in shop and a lot of people have lost formal jobs. with the Zimbabwe National Chamber of Commerce, is looking to “A lot of projects have benefited order to preserve businesses,” Memory Nguwi, a “As a percentage of the population that has strengthen the contribution that South African businesses can make from the two percent tax, these include human capital expert with Industrial Psychology capacity to work, this number is very small, at towards the revitalisation of the Zimbabwean economy. projects under Cyclone Idai, some Consultants (IPC), said. around 10 percent, if not less. To Page 2 Picture by Freedom Mashava roads, health sector and education,” he said. Page 2 | December 12-18 2019 The Financial Gazette National News Zim bleeds formal jobs as local rot gets worse From P1 “And the current measures, especially as es- poused through the 2020 Budget and the Tran- sitional Stabilisation Programme, do not appear to be adequate to stop the job losses,” Murefu added. “Government needs to do more if the current carnage with respect to jobs is to be arrested or stopped,” he told The Financial Gazette further. On his part, Zimbabwe Congress of Trade Unions secretary-general, Japhet Moyo, said the massive job losses were an outcome of the country’s seemingly unending economic crisis. “The job losses have been underpinned by Godfrey Kanyenze Japhet Moyo Israel Murefu the economic decline that has also been high- lighted by a debilitating liquidity crunch, low “The energy crisis has also crippled pro- lenges also go to politics. Political parties tual — one of the few local business successes industrial capacity utilisation of less than 30 duction capacities, rendering some employees should find each other for the good of the econ- — recently embarked on a voluntary retrench- percent and prolonged power cuts of up to 18 worthless, and resulting in companies reducing omy,” Kanyenze added. ment exercise. hours a day. their workforce. According to ZIBAWU, banks alone laid off “The economic challenges facing our coun- “At least 300 financial services sector staff “The country’s economy is still too volatile at least 2 000 workers in the five years to 2017. try and the business have not relented, given the were laid off between August and October of to support job creation. Analysts also say more job losses will com- high inflation rate and the need to control total this year alone, as companies intensified staff "We are in a hyperinflation environment and plicate an already bad situation in the coun- operating costs. rationalisation programmes,” he said, adding demand is on the weak side, which has impact- try, where at least 75 percent of the country’s “It is important for the business to reduce that this had been happening across all the sec- ed the viability of companies,” Kanyenze said. working population ekes a difficult living in the costs,” Jonas Mushosho, the financial services tors of the economy. “The only thing that can address the carnage tough informal sector, according to research by group’s respected chief executive, said. Godfrey Kanyenze, a director at the Labour is dialogue through the Tripartite Negotiating IPC. “In April 2019 management rolled out a vol- and Economic Development Research Institute Forum. Government also needs to deal with the Some of the hardest hit sectors of the econ- untary retrenchment scheme as a way of man- of Zimbabwe, also said companies had been accounting issue, in particular the currency. omy jobs-wise have been the clothing industry aging costs in response to the deteriorating eco- dealt a huge blow by the economic crisis, partic- “It is the reason why the economy is self — which employed more than 35 000 workers nomic environment. ularly the ongoing foreign currency challenges. re-dollarising, resulting in reduced production in the mid-1990s, but now employs less than “However, the response to this vol- “The wave of job losses has been largely a by businesses as US dollar funding becomes 8 000. untary retrenchment exercise was result of the macro-economic volatility which difficult. In the meantime, and highlighting the tough below expectations,” he said. has forced companies to reduce labour. “While there is no easy solution, the chal- operating environment in the country, Old Mu- [email protected] New twist to Shanfari, army battle USINESSMAN Thamer Al Shanfari has erties" are rundown, and in a state of neglect. petitioned seasoned lawyer Jonathan Without clearly stating the army’s interest BSamukange and the deeds registrar to re- and beef with the Oasis Energy Group founder, cuse himself from representing the military, and though, Muchinguri-Kashiri and her defence al- explain how the latter would have secured title lies maintain that the troubled businessman had of his Glen Lorne properties without his consent. no claim to the “immovable properties as he This comes as new information suggests Diet- was a fugitive from justice, and a foreigner who rich Herzog — a German national whose alleged could abscond if he loses the current cases”. kidnapping forms the centrepiece of a strategic “The immovable property in dispute does offensive against the banished tycoon — has re- not belong to him, it is a property owned by the portedly renounced the ‘hostage’ story and the Defence ministry through its commercial vehicle latter had been a victim of sour Congolese deals. which was created for the purpose among other “We are taking further instructions of us filing things to acquire this property,” she said. an answering affidavit… However, the course Sadly, Al Shanfari’s papers have not made it that this case will take depends on your attitude clear what the (potential) source and nature of to key objections that the applicant… has raised dispute was between him, and his erstwhile busi- regarding your involvement in this case,” Al ness partners. Shanfari’s lawyers said in a November 27 letter And it is also the cast — of direct, and indi- to Samukange, adding the opposition emanated Jonathan Samukange Oppah Muchingwuri-Kashiri rect — role players as well as names associated from the fact that the prominent attorney had with this saga, which make it a curious and pe- previously represented the Omani businessman also barred from representing parties, including (Oryx) founder's assets not only comes as there culiar matter. in at least four cases and immigration matters be- Defence minister Oppah Muchinguri-Kashi- are renewed concerns about the country's prop- Firstly, the Oryx founder himself rose to tween 2012, and 2015. ri and Rusununguko Nkululeko Holdings erty rights record, and risks associated with its prominence when he became one of the major “It is our client’s conviction that many of (Rusununguko)’s beneficiary company Folyjon political economy, but he has had to “apply for a beneficiaries of Zimbabwe's costly intervention the documents that the 1st to 5th respondents Gardens (Folyjon). caveat to protect his own houses”. in the Democratic Republic of Congo to shore up have relied on in opposing the application in While the intriguing battle centres around As such, the out-of-favour Al Shanfari be- Laurent Kabila. HC8780/19 are extracted from the files that you four cliff-side mansions owned through Bourhill lieves checkmating people like Samukange Around the same time, certain figures of the opened in recent years..,” it said, adding his law Investments (Bourhill), Graphic Investments could be one of the slightest ways of fending off current administration — including President firm Venturas and Samukange was, therefore, (Graphic) and Fifty Seven Folyjon Trust (FSFT), his (brigade of) opponents. Emmerson Mnangagwa and Foreign Affairs Al Shanfari has also challenged the reg- And as the intriguing drama rages on, minister Sibusiso Moyo — were named as cru- istrar of (companies and) deeds to fur- Muchinguri-Kashiri not cial in helping the Zimba- nish the High Court with documents and only says the former di- bwean defence forces to set records on how the properties had been amond dealer “did not The applicant is surprised to up some businesses in the transferred to the army-owned invest- own any assets in Zim- read about the respondent’s as- Great Lakes region. ment vehicle. babwe”, but he could not sertion and is convinced that this And when Shanfari went In particular, the 51-year-old tycoon claim title to properties about establishing some of says the “purported transfer could only listed under stand num- submission… cannot be true be- the trusts to hold the "now have been fraudulent and illegal”. ber 98, 99, 100 and 101 cause he never sold or donated disputed assets", he enlist- “In paragraph 18 of first respondent of Glen Lorne Township the subject properties… to the ed the services of the likes (Muchinguri-Kashiri)’s affidavit… re- 8 since he was “neither a of Heena Joshi and Osman ferred to under paragraph 3.2… the min- director nor shareholder ministry of Defence or any oth- Dudhia, and who were all ister of Defence states that: the property of the Bourhill, Graphic er individuals or entity. linked to ex-M&S Syn- has already been transferred to Folyjon… and FSFT. dicate managing director and consequently the horse has already And to bolster her Jayant Joshi. bolted,” Al Shanfari said in a December case, the Zanu PF chairperson has procured the The man was also pre- 03 letter to the deeds registrar said, add- supporting affidavits of Rununguko executive sumed to be an ally of the current president. ing the key office needed to demonstrate director John Mupande, and Siwinile Tauya of And the Omani trader, meanwhile, says he how Rusunguko “laid its hands on his Folyjon. was surprised to learn or know — through his properties”. But Al Shanfari says — in another recent local agent Alan Passaportis in April this year “The applicant is surprised to read court application – he had “acquired the respec- — that his properties were to be transferred to about the respondent’s assertion and is tive properties between 1999 and 2001 using Rusununguko. convinced that this submission… cannot personal funds, developed them to his own taste While Al Shanfari has long been "a prohibited be true because he never sold or donated and the bona fide owner since he is a beneficiary immigrant in Zimbabwe", others claim he "still the subject properties… to the ministry of of the trusts as well as investment companies”. enjoys good relations with Mnangagwa". Defence or any other individuals or enti- While the late October papers list the prop- He was once placed on west- ty,” he said. erties as worth nearly US$3 million, one of the ern sanctions, but he is off the hook. The high-stakes drama and move to controversial businessman's workers and key —Staff Writer seize the ex-Oryx Natural Resources runners Philip Mapfiro says the "occupied prop- [email protected] The Financial Gazette December 12-18 2019 | Page 3 National News Load shedding affects SA’s GDP growth HE last thing South Africa’s by power utility Eskom. Stage four, omy as it undershoots the expecta- tion projects, for example, should be cember. So there is certainly pressure Then there is the political re- economy needed was another which removes 4 000 MW from the tions of economists. With little in the operating at breakneck speed at the on the overall economy,” said Chris- sponse, which has been deafening Tround of load shedding. It cer- grid, is sadly no longer an unprece- way of momentum or confidence moment ahead of the shutdown. The tie Viljoen, an economist at PwC. in its silence. President Cyril Rama- tainly did not need the unprecedent- dented event in summer. It happened heading into this quarter, the econo- manufacturing sector should also be “If there is another negative phosa used his Monday newsletter ed phase of stage six. If it persists this in March of 2019, and the economy my needed all the help it could get. going full throttle. But at the last hur- q-o-q number in Q4 and it pushes to wax lyrical, of all things, about week, the economy could be tipped contracted 3,1 percent that quarter, a It did not need stage six. dle, just when productivity needs to the y-o-y GDP number into nega- his recent visit to the Medupi Power into a recession — or deeper into performance in large part blamed on “It’s looking that way,” George pick up some speed, it has stumbled tive, then we will see very, very low Station. the throes of one — and any hope the power outages. Glynos, head of research and analyt- over the hurdle that is Eskom. And overall growth in 2019. He did at least acknowledge the for growth in 2019 will probably be Now, on late Monday, Eskom ics at ETM Analytics, told Business that hurdle just leapt from stage four But the negative y-o-y number problems that have bedevilled Me- lights out. moved to stage six — which means Maverick when asked if this round to stage six. in Q4 would need to be very deep to dupi and the Kusile plant — “State December is always South Af- 6 000 MW have been cut — citing of load shedding might be the death Some economists warn that it is cause a calendar year contraction,” Capture, corruption, loss and short- rica’s most unproductive month. “a technical problem at the Medupi knell for the fourth quarter, and most too early to use the R-word — if the he said. age of essential skills and misman- From Friday, a big “Gone Fishing” Power Station”. That takes the econ- likely 2019, growth. economy does shrink this quarter, it Another major concern is the agement” — but failed to address sign will be hung over Gauteng and omy into uncharted territory in what “It’s difficult to know because will be back-to-back contractions, fact that load shedding is taking the current crisis. other centres of industry. is its real last week of productivity it’s a low-production month and heralding a recession — but if the place during a summer month when This is yet another hammer The economy will pretty much for the year. less electricity is used in December. load shedding persists, then such the economy is on the brink of wind- blow to confidence, which is also close up shop for the festive season, Ominously, after a surprise re- That’s the one saving grace. But un- a scenario is possible, especially at ing down. in short supply at the moment. If with only the retail and holiday sec- bound in second quarter, the econ- til productive sectors shut down, the stage six. Even without load shed- That bodes ill for January when rolling power cuts are maintained tors still firing on all cylinders. But omy tanked 0,6 percent in third impact will be significant.” ding, it may have been on the edge. the economy should be in the pro- in the New Year — at stage six no- they need the power to do so. quarter — when stage six was still Indeed, this period in December “We have only seen a few days cess of rebooting from its holiday gal — then there may be no need to And that is in short supply at unheard of — against expectations is the economy’s last chance for an of load shedding. However, there is hangover. Load shedding then is take down the “Gone Fishing” sign. the moment as Monday marked that it had at least flatlined. That output spurt before the nationwide no guarantee that load shedding will entirely plausible. And what is next? — Daily Maverick five straight days of load shedding underscores the fragility of the econ- party goes into full swing. Construc- not be a frequent occurrence in De- Stage 8? Page 4 | December 12-18 2019 The Financial Gazette National News RBZ admits to 'fuelling inflation' Omega Ukama pacts on our prices and on exchange rate stability,” he Still, government has issued Treasury Bills worth tion rates, income and pensions erosion.” Senior Staff Writer told delegates at the Zimbabwe National Chamber more than $500 million in the second half of the “Since the expenditure is also recurring, it deprives of Commerce’s fifth annual business review year alone. the nation of infrastructure development projects such HE Reserve Bank of Zimbabwe (RBZ) says its conference in Harare last week. Some say this shows that govern- as those for energy, roads, water, technology and sports failure to control money supply growth this year Mlambo said a central bank study ment spending is far from being un- infrastructure,” he said. Thas fuelled inflation. found that there is a corresponding der control. Meanwhile, Mlambo’s explanation of the situation Zimbabwe suspended the publication of annual infla- relationship between an increase in Victor Bhoroma, an econo- only got so far as saying “what is driving this money sup- tion in July after it reached 176 percent, gaining from 57 money supply and the deprecia- mist, says government’s unre- ply growth is an increase in reserve money. percent in January. It is estimated to have spiraled to 440 tion of the exchange rate. strained expenditure remains a “So the way to deal with inflation is to manage the percent by October. “This means that if your re- major challenge. reserve money and this is what the central bank is doing “The question on everyone’s mind is what is behind serve money doubles, your cur- “This is the country’s foun- now,” he added. the persistence of inflation. By our estimation, and from rency will depreciate by 50 per- dation of macro-economic He said inflation is seen subsiding going forward. what economists tell us, it is to do with what is happen- cent,” he said. instability and general misman- “Year-on-year is telling us the past, but for policy per- ing on the monetary side,” Kupukile Mlambo, the RBZ’s The RBZ boss’s explanation agement. spective you want to look at month-on-month because it deputy governor said. was, however, vague on the specif- "Between 2009 and 2013, the is a forward-looking indicator. “The growth in money supply has continued. It resur- ic reason behind the growth in money cancer had stopped, but it has grown "We expect month-on-month inflation to go down to faced in June and this money supply growth is what has supply. each year from 2014 to 2019, to over about 12 percent by end of December. Kupukile Mlambo been driving our inflation. He said money supply had continued to US$2,8 billion,” he said. "We see it going down to about five percent by De- “Between June and September, our money supply grow even though government has “man- “The impact to economic recovery is cember 2020,” the deputy governor said. increased by 128 percent. aged to deal with the fiscal side”, which has notoriously … off-budget financing which puts pressure on the Re- "The problem with that kind of increase is that it im- driven money supply growth in the recent past. serve Bank (of Zimbabwe) to print money … high infla- [email protected] Govt urged to partner IPPs

Shame Makoshori Companies Editor

RESIDENT Emmerson Mnangagwa’s adminis- tration should partner with private players to help Pdeal with the debilitating power crisis, a local re- search unit has said. Zimbabwe is experiencing acute power shortages that have seen some parts of the country going for at least 18 hours without electricity due to declining water levels at Kariba and intermittent breakdowns at Hwange ther- mal power station. Econometer Global Capital (Econometer) said it was critical for government to create a conducive environ- ment that allows private players to thrive and help rebuild the economy. “Public Private Partnerships and Build Operate Transfer arrangements are but some of the options that government can promote in its quest to improve gen- eration capacity. Unlike major oil producing countries like Nigeria that can rely on the commodity to generate power, Zimbabwe needs cleaner and sustainable sources of energy that will help industry flourish,” the think-tank said in a research note.

HELPING HAND: Marjorie Mutemererwa, Seed Co public relations manager centre, with representatives from Mutemwa Leprosy and Public Private Partner- Care Centre, Mother of Peace, Jairos Jiri Home and Mashambanzou Care Trust during a handover ceremony of mealie-meal and maize ships and Build Operate seed to the charity organisations at the company's headquarters yesterday. Transfer arrangements are but some of the op- tions that government can promote in its quest to im- LRH contemplates temporary closure prove generation capacity. The country currently produces less than 1 000 mega- watts (MW) of electricity against national demand of ear- HE owners of Leopard Rock Hotel (LRH) Despite sending a distress call to govern- ly 2 200MW. are "seriously contemplating a temporary ment officials and particularly the tourism au- Econometer noted that the energy sector requires Tclosure of the iconic resort, as disruptions thorities, the American-Iranian businessman huge capital and that capital can only be secured when on its property by illegal settlers and police in- says he has had no joy and, therefore, he was Zimbabwe improved its ease of doing business rankings. action have taken a toll on its foreign owners", going to petition the Netherlands ambassador According to the African Development Bank, Zim- officials say. Barbara van Hellemond since LRH was 75 per- babwe requires nearly US$35 billion to fund its infra- While the Manicaland police provincial cent-owned by Dutch-based Lyons Africa BV, structure projects including energy. spokesperson Tavhiringwa Kakohwa and politi- and it is protected under bilateral agreements. However, for a country with a huge debt burden, at- cal leaders, including Ellen Gwaradzimba, were While the hospitality group has been bat- tracting concessionary funding for such projects requires not immediately available for comment, com- tling invaders since six years ago, Shasha and much more than rhetoric. pany executive director Samir Shasha has told company feel or believe the group — which “In the absence of this, any hope of rebooting agri- The Financial Gazette of his exasperation at the has reportedly destroyed 50 hectares of pris- culture, manufacturing or mining will remain distant,” Mutare rural police's zeal in arresting his work- tine woods — have had the "encouragement Econometer added. ers — seeking to enforce long-standing court of local politicians and war veterans, including The latest development comes after the Zimba- orders for the squatters to leave by clearing out Winmore Mushakavanhu, and Joel Mureremba, bwe National Chamber of Commerce (ZNCC) survey maize fields within the hotel boundaries — and who have even threatened to burn down a bull- attributed energy challenges in the country to limited not the offenders, who keep cutting down trees, dozer, and remove the fence". investment and maintenance with 90 percent of the re- and taking down his fences. And the continued disruptions not only come spondents citing this as a major cause of power shortages. “It would seem that we will have to close as the illegal settlers have undertaken, and com- Christopher Mugaga, the ZNCC chief executive, Leopard Rock over Christmas as we cannot risk mitted to vacate the land since 2013, but the said the findings showed that the aged and incapacitat- police roughshod on our property. Leopard Rock Hotel in Vumba Vumba farm and property was never designated ed equipment at the country’s major power stations was "We have now established the names of surances have been guaranteed". for land redistribution anyway. adding on to the worsening of electricity challenges on politicians interested in taking Leopard Rock's Earlier, Shasha had expressed dismay at how And Shasha, who has invested US$10 mil- top of other factors. property and, if this is how they want to go "uniformed forces had harassed and taken his lion into the venture, says the majority of the The business lobby group said that there is need for about it, we will have to close to the public until 12 employees, and people intending to protect squatters are from Buhera, and Marange. businesses and the general stakeholders to seriously start the safety of our guests is established," he said, their property, instead of enforcing the removal — Staff Writer diverting to renewable sources of power as a means of adding "this would mean refunding guests and of the settlers” — some of whom had been on long-term planning for the continued sustainable energy stopping any further bookings until safety as- site since 2013. [email protected] sources. [email protected] The Financial Gazette December 12-18 2019 | Page 5 Page 6 | December 12-18 2019 The Financial Gazette

National News Tough 2020 beckons for Zim John Kachembere Kipson Gundani, the CEO Africa down the importation of goods and this, ness, which is yielding the much needed pos- Assistant Editor Roundtable chief executive, said the current combined with high prices of goods that itive results. We will also continue to grow sluggish growth is expected to endure as were available, slowed sown consumption the specilaised dedicated service throughout IMBABWE faces little or no pros- government has failed to address structural particularly in the second half of the report- Bulwark Bran. Skynet continues to expand pects of economic recovery next obstacles to growth such as limited capital ing period. Resultantly, volumes sales de- its footprint on the international courier ser- Zyear as long as the country does not resource and deficient infrastructure. clined by 23 percent compared to the same vice,” Mukamba said. address issues of investment and political sta- “Entrenching macroeconomic funda- period last year,” she said. Zimbabwe’s dire electricity situation, bility, market experts have warned. mentals and strengthening capacity recov- Proplastics chairman Gregory Sebborn which has been headlined by rolling black- The southern African country, which has ery requires a marked paradigm shift by all indicated that demand is expected to remain outs, is killing business, with companies experienced significant economic decline in stakeholders — government, business and subdued in the short term given the current facing unprecedented downtime while oper- the last two years, which has seen poverty labour — in respect of charting a common economic environment. ating costs have skyrocketed as firms turn to and unemployment rising to unprecedented approach and mutually shared way for- “However, we expect demand to signifi- diesel-powered generators to stay operation- levels, is projecting a 3,2 percent growth rate ward,” he said. cantly improve in the medium to long-term al. This has added to the existing pressures on in 2020 on the back of a better rainfall sea- The trained economist noted that any given the need to rehabilitate the water and business costs. son, improved electricity supply, and greater economic reform programme should be sewer infrastructure as well as irrigation re- However, despite these challenges, econ- macroeconomic stability. designed to deal with the underlying causes Emmerson Mnangagwa suscitation initiatives. The current electricity omist Eddie Cross believes that next year However, analysts said Zimbabwe’s and the symptoms will progressively disap- and water challenges will continue to weigh will be better for companies and the econo- crisis requires a multifaceted approach that pear as the policies become entrenched and has resulted in depressed demand. down business operations into the foresee- my. combines both macro-and-micro-economic take effect. Andrew Lorimer, Innscor Africa’s com- able future,” he said “We have taken the harsh medicine of interventions that addresses both the quantity “The programme of reforms is premised pany secretary, said the diversified conglom- He said the shortage of foreign currency income restraint and are now in a position to and quality of employment and economic on the foundations of genuine broad-based erate experienced subdued production levels on the interbank market will affect availabili- start servicing all our other priorities. Fixing growth. stakeholder buy-in,” he said. and volumes in the third quarter to Septem- ty of raw materials going forward. our infrastructure, improving power supplies Jee-A Van der Linde, an economist with “The approach is critical for effective ber. “However, the group will continue to ini- and reducing the cost of doing business. Our NKC African Economics, said the govern- synergies across all the various stakehold- “Levels of local inflation have continued tiate mitigatory measures in order to sustain economic fundamentals are sound and the ment’s growth assumptions underpinning it ers…Stakeholder buy-in cannot always be to push overhead in their business units, but operations. We expect the full year sales ton- way clear to dealing with our international are way too optimistic, and Zimbabwe will quantifiable but the effects are readily dis- generally cost has continued to be well man- nage to remain depressed below prior year liabilities,” he said. continue to register a budget deficit next year. cernible. The absence thereof is marked by aged,” he said overall but with some improvement expect- The Monetary Police Committee mem- “Conditions are growing worse by the apathy, distance and preponderance by those “Both foreign and local liquidity has re- ed in the fourth quarter. ber added: “Next year inflation will come day. Shortages of essential goods have be- feeling excluded to standby in detached mained extremely constrained in the quarter, "We also look forward to our call for the back to low levels by the end of the year, come more intense as Zimbabweans find indifference. The presence thereof creates and we continue to work with our financial removal of duty on imported raw materials exchange rates will strengthen and start re- themselves in a state of agitation. Economy an infusion of fresh energy, visible passion, institution partners to attain the necessary being considered favourably by the author- storing value to earnings and capital. fundamentals are frail, which leaves the unleashing a national synergy, for economic funding to support the significantly increased ities,” Sebborn said. Our farmers will get some security of country overly exposed to the effects of ex- recovery,” Gundani added. values of working capital now required,” Moreblessing Mukamba, Unfreight investment in the form of a negotiable lease ternal shocks,” he said. This comes as Zimbabwe Stock Ex- Lorimer said. company secretary said foreign currency over the land and assets they are using and “There is little prospect of significant change-listed firms are bracing for tough Margaret Munyuru, OK Zimbabwe’s shortages had a negative impact on the busi- our urban areas will slowly be able to restore change for the better to Zimbabwe’s eco- times next year the country’s economy company secretary, also weighed in and said ness as operational expenses continue to service delivery. nomic and financial challenges in the short- shows little signs of recovery. the trading environment became progres- increase month on month due to the hyperin- “2020 will not be easy, but after what we to medium term. We forecast real gross do- The country remains constrained by sively more unstable towards the end of the flationary economic environment. have been through it will be like the morning mestic product (GDP) growth will contract shortages of foreign currency, fuel, electricity six months to September 30, 2019. “We will continue to focus on growing after the rain.” by 7,3 percent in 2019.” as well as a weakening local currency which “The scarcity of foreign currency slowed volumes on low margin in the Swift busi- — [email protected] ‘Prescribed assets unattractive’ Omega Ukama the compliance levels improving and this is Senior Staff Writer something that we are engaged in with the industry. HE Insurance and Pensions Commis- "The new requirements were only recent- sion (IPEC) says uptake of prescribed ly legislated and so we are hoping that the Tassets has remained low amid calls for market is just taking its time and that they will government to come up with instruments that definitely move towards compliance,” the encourage participation in line with global commissioner said. trends. The new requirements came with new In September, government gazetted Statu- regulations, which provide for the commis- tory Instrument 206 of 2019, which raised the sion to cause non-compliant insurer’s finan- prescribed asset ratios for Life assures cial resources or investments in other to 15 percent from 7,5 percent. asset classes to be liquidated Funeral assurers, who were and be channelled towards previously required to hold investment in any finan- 7,5 percent, and non-life cial instrument with pre- insurers, previously scribed assets status. five percent, are now Life assurers are required to hold 10 also seeking a re- percent. prieve from govern- But according to ment on prescribed Ipec, the country’s 18 assets, which they short-term insurers had say are inhibiting their an aggregate compliance ability to invest in value level of 2,17 percent as at preserving assets. September 30. Funeral assur- “We have made the argu- ers’ compliance level ment to the minister… was 0,13 percent, while Grace Muradzikwa that our participation Life assurers were at … should be deter- 13,36 percent with pension funds at 7,64 per- mined by those assets’ ability to track infla- cent. tion. Having learned our lesson in the peri- “There is a genuine desire to comply, but, od leading up to 2009, where we lost value it is just that government must come up with mainly because of certain assets that we were acceptable instruments, which meet their invested in, our members are continuously investment objectives, especially when you seeking investment that preserves value”, look at the need to preserve value,” Grace Rufai Mavukeni, Life Offices Association’s Muradzikwa, IPEC’s commissioner said at a secretary-general said recently. recent media briefing. Cuthbert Munjoma, the executive assis- “Insurers have come to us about making tant to the IPEC commissioner, however, sure that government comes up with a paper says the Finance minister’s promise to issue that is acceptable…we would like to work indexed Treasury Bills will go a long way in with the industry to make sure that there is making prescribed assets attractive. good quality paper. “It is obvious that there is need to balance “Prescribed assets should not be seen as the issue of compliance with value preserva- inferior. We need to move to a stage where the tion,” Munjoma said at the same briefing. market will be looking for prescribed assets “We have also been calling for the in- because they would be meeting their invest- dustry to consider other investment op- ments objectives. tions like equity in projects of national "I do not see why prescribed assets should standing…that can also help to improve not be of a developmental nature and have compliance through private-public part- social impact and still meet acceptable invest- nerships of national importance as well ment standards,” she said. as social impact projects,” he added “As a commission, we would like to see — [email protected] The Financial Gazette December 12-18 2019 | Page 7 National News ZimAlloys deal hangs in balance Eric Chiriga ing $100 million to revive the Associate Editor ferrochrome producer, which ceased operations in 2008. Mtsambiwa hits back at Tongaat HE acquisition of Zimba- Following indications that ORMER Tongaat against the company and its bwe Alloys (ZimAlloys) GT had opted to terminate a Hulett Zimbabwe board of directors. Tby Landela Mining Ven- court-sanctioned scheme of ar- (Tongaat) managing “I view the failure by tures (Landela) is yet to be con- rangment entered with Balaso- F director Sydney Mtsambiwa Tongaat... to adhere to the summated, as there are “some re, the company subsequently has petitioned the South Af- basic tenants of justice, and financial and legal-related loose received considerable offers and rican-based sugar processor fairness as regrettable and ends to be tied”, The Financial interest from other local, and for- to furnish him with a copy evidence of clear prejudice Gazette has learnt. Farai Rwodzi eign investors, which included of PriceWaterhouseCoopers and malicious intent on the Although company judicial Landela. (PwC) forensic audit, which part of..," the former Anglo manager Bulisa Mbano and plementation of the transaction, As it prepared for a resusci- allegedly unearthed several American executive and one of the ferrochrome miner’s Rwodzi emphasised that Landela tation, ZimAlloys embarked on accounting malpractices. chartered accountant said. co-shareholder Farai Rwodzi "had met their end of the bar- a number of initiatives includ- This comes as the Last month, the South insisted that the deal had gone gain”. ing the review of dumps with a trans-Limpopo company is African-based company through, sources said the ex-An- “What’s left is for Grant Chinese firm and the securing immersed in a major scan- Sydney Mtsambiwa issued a statement impli- glo American asset could “very Thornton (GT) to conclude the of funding for the refurbishment dal and whereby several cating senior executives well fall back into Balasore Al- court process. We are now wait- of furnaces at its Gweru plant or of its executives, includ- to the defamatory state- in financial reporting -mis loys (Balasore)’s hands after the ing for (them) to get ZimAlloys site. ing ex-chief executive Pe- ments that are made in the statements due to “internal local grouping had failed to meet out of judicial management,” the ZimAlloys, acquired by Ben- ter Staude, had reportedly SENS statement... as they governance failures where its financial obligations on time”. businessman and ex-banker said. score for $10 million in 2005, bumped up profits and sugar relate to an alleged breach policies, guidelines and “No shares have exchanged However, Rwodzi declined had failed to take-off as due sales. of my fiduciary duty to the frameworks were ignored.” hands so far as Landela has not to comment on amount paid by to poor international prices of “We are instructed… company and shareholders, However, Mtsambiwa paid in full the monies due to Landela and the stake involved. chrome, a hostile operating en- that you provide the full and my being complicit or said the "statements and ZimAlloys’ former shareholders Balasore, meanwhile, had vironment and which led to the PwC report… within seven participating in improper conclusions reached" had in the form of Benscore,” they taken GT to court on allegations closure of its four furnaces. days… failing which legal accounting practices..,” he tarnished his image, and said. that it had unfairly terminated This then culminated in its steps to compel the board said. reputation. “In as much the consortium their agreement to acquare 70 placement under judicial man- and company to so do will In an earlier statement, Tongaat, which has oper- has paid significant amounts percent of ZimAlloys on the agement in 2014 after debts had be instituted without further Mtsambiwa said he was ations in South Africa, Mo- of cash to the Midlands-based grounds that Indian billionaire risen to alarming levels. notice,” Mtsambiwa’s law- particularly miffed by the zambique and Zimbabwe, firm’s creditors, no further- re Pramod Mittal's firm had "failed At its peak, ZimAlloys em- yers said in a December 10 fact that he had "not been said that its 2018 results sources have been availed to the to raise the required cash or ployed thousands of workers di- letter to Tongaat CE Gavin afforded an opportunity by could face a potential hit sellers and this could see Balas- funds within the agreed time- rectly and indirectly. Hudson, adding he had al- his former employers or its of up to R4,5 billion ($306 ore, which has a pending High frames". Landela, meanwhile, is the ways conducted himself agents to comment on the million) following a review Court case, coming back into the The company, however, same entity, which reportedly professionally in his time at PwC report or address any of its accounting practices. picture,” the sources said. maintains that the deal was still acquired gold producer Bindu- the Johannesburg Stock Ex- issues Tongaat had concerns — Staff Writer While Mbano yesterday sug- on and it was just waiting for ra Nickel Corporation and its change-listed firm. on", and such that he was — [email protected] gested that the finalisation of “conditions precedent” to be ful- looking at other related assets. “I take great exception contemplating a lawsuit See also Page 30 the case was key to the full im- filled before pumping a whoop- — [email protected] Page 8 | December 12-18 2019 The Financial Gazette Leader Page

News Worth Knowing Zanu PF conference must prioritise the economy

FOR the past 15 months, our country has endured economic policies that have resulted in slug- gish economic growth. With that in mind, it should be clear to everyone in leadership positions that our nation’s top priority must be to restore our country to former economic growth levels growth in order to create jobs, incomes, and crucially, opportunities for all Zimbabweans. Faster economic growth not only creates more good-paying jobs and boosts wages, it brings in more tax revenue allowing us to improve our infrastructure, invest in education, and support a strong health system. We are cognisant of the fact that economic growth alone can’t solve all our country’s prob- lems, but without it, we won’t be able to solve any of them. In order to grow the economic pie, every policy proposal — whether it covers regulations, trade, energy, infrastructure, education, taxes, or legal issues — must be judged on whether it will support or impede growth. As the ruling Zanu PF gathers in the sleepy rural district of Goromonzi this week for its 18th annual national people’s conference, we hope that our leaders will focus on the economy. While as a financial paper we try not to make political shindigs our business, we are also cognisant of the fact that it is the on-going conference will set the policy direction for govern- ment in a country which is going through one of its worst humanitarian and economic crisis. In the old days, the meeting could come and go without us flinching, but we are living in extraordinary times. The country is in recession, inflation is shooting through the roof, more than half of the country’s 16 million people are food insecure. Foreign investors are fleeing the country in droves while local businesses are hemorrhaging on the back of low demand and high production costs. The recently-commissioned US$20 million Varun Beverages (PepsiCo) state-of-the-art additional plant in At the same time, fuel and electricity remain in short supply despite monthly price increases Harare has three production lines that include cane manufacturing, plastic bottles and preforms manufac- to reflect costs. turing. The world’s second largest producer (outside the US) of carbonated soft drinks and non-carbonated As such, Zanu PF’s business has a direct bearing on the economic and social well-being of beverages, increased production from 13 million bottles to 45 million bottles annually. Zimbabweans and thus warrants our keen interest. Picture by Freedom Mashava The country’s prospects are bleak and the situation is likely to degenerate even further un- less President Emmerson Mnangagwa and his sycophants come up with tangible solutions to take the country out of crisis and better the lives of suffering Zimbabweans. Mnangagwa should break with tradition and order his comrades to stop sloganeering and start focusing on the economy so that the conference can live up to its theme “Modernise, Mechanise and Grow The Economy Towards Vision 2030”. Implications of Zim’s This is because the Zanu PF conferences are generally not known for coming up with any- thing meaningful, but in all sincerity, we hope and pray that by some miracle this year’s edition will be different. At last year’s conference, party officials went to town about how one of the main outcomes was that the entire party had endorsed Mnangagwa as the presidential candidate for the 2023 new Companies Act (II) elections, barely three months after the 2018 elections. But we cannot afford to remain in election mode while the country burns. When will the OLLOWING from my previous cess which will now include the publica- become due in the ordinary course of leadership get down to work if it is disturbingly obsessed with sloganeering and campaigning article wherein I discussed the tion of a notice. This transparent process business for a period of 12 months after instead of delivering on its mandate of improving the livelihoods of people? newly enacted Companies and ensures that the State will not needlessly the date on which the test is considered; We also understand that the ruling part has snubbed South Africa's ANC on the pretext F Other Business Entities Act [Chapter “expropriate” unclaimed property, since or in the case of a distribution (which is that delegates are not necessary at a conference, but the truth of the matter is that Zanu PF 24:31] which repeals the Companies Act the State will be obliged to publicly auc- fully defined in the Act), 12 months fol- is still miffed by Naledi Pandor's insistence that there should be real and meaningful political [Chapter 24:03], I will share a few more tion the said property. lowing that distribution. dialogue in Zimbabwe so as to get the country out of this current economic abyss. insights into the Act, hereinafter referred A significant change is the fact that As I have mentioned, distributions are Zimbabwe is in the current position because our leaders are so obsessed with retaining to as COBE. shares in COBE no longer carry a nomi- fully defined in COBE and the definition power at all costs at the expense of the economy. A noteworthy addition to discuss is nal or par value. The elimination of this covers transfers whether in the form of For our nation to develop and attain the middle income status by 2030, then all hands the obligation of companies to maintain concept follows the laws in countries dividends, payments in lieu of capital- should be on deck and the focus must be on improving the economy. and file beneficial ownership informa- like South Africa, Botswana and New ization, incurrence of debts and waivers tion. COBE defines the beneficial own- Zealand. Par values generally often have of debts or other obligations. Over and er as “a natural person who ultimately no relation to the market value of a share above the solvency and liquidity test, the Southern Africa’s Leading Business and Financial Newspaper owns or controls the rights to or benefits since the non-par value share values are distributions must be authorised by the Established 1969 from property or a person who exercis- determined by what a buyer is willing to Board who have an obligation to reapply Publisher: Modus Media es ultimate effective control over a legal take for the shares anyway. the test if the distribution does not take EDITORIAL MARKETING person” and either directly or indirectly The fact that shares have par values is place within 120 business days after the General Manager - Marketing holds more than 20 percent of the shares not an indication of the value of the com- Board acknowledgment. Editor-In-Chief & Chief Oper .zw Christopher Goko: gokoc@fingaz.co.zw or directly or indirectly holds 20 percent pany. Shares that do have par values on These are all mechanisms to protect Associate Editor Brand Executive - Advertising of the voting rights. the effective date of this new Act, howev- the company and more importantly mi- Eric Chiriga: chirigae@fingaz.co.zw Edwin Vengesa: ev .zw This person may have the power er, will not be affected and will continue nority shareholders from wanton uses of Senior Assistant Editor Senior Sales Executives to appoint or remove a majority of the company resources. Director liability is Chris Gumunyu: gumunyuc@fingaz.co.zw Christobel Washaya: cwashay .zw company directors or generally have the included where distributions are carried Managing Editor .zw right to exercise significant influence or Open Forum out contrary to COBE. Tabitha Mutenga: mutengat@fingaz.co.zw .zw control in the company. The required Whereas the right of first refusal to Assistant Editor Sales Representatives - Harare information shall be held by the Regis- new shares was normally mentioned in John Kachembere: kachemberej@fingaz.co.zw with .zw trar of Companies and may be inspect- a company’s memorandum and articles Markets Editor Frank Nyandoro: fny .zw ed by the Financial Intelligence Unit or of incorporation, COBE provides spe- Kudakwashe Chideme: chidemek@fingaz.co.zw Edreck: emudzingany .zw law enforcement agencies referred to in Phillipa Phillips-Sadza cifically for this common law right for Group Digital Editor Sales Representative - Bulawayo Paul Nyakazeya: nyakazeyap@fingaz.co.zw the Money Laundering and Proceeds of existing shareholders. This right should Clever Pedzisai: [email protected] Crime Act [Chapter 9:24]. This effec- to have the par value assigned to them not be taken for granted and the required Companies Editor Shame Makoshori: makoshoris@fingaz.co.zw Brand Executive - Events tively means that the use of proxies will when issued. Several provisions related detail of how it should work is provided Chief Sub Editor K .zw be affected as the real owner must be to the issuance of shares remain largely for. The pre-emptive right to new shares Tawanda Chiwara: chiwarat@fingaz.co.zw disclosed. unchanged from the Companies Act such is therefore prescribed for the avoidance Brand Executive - Subscriptions Staff Writers Tatenda Taka: t .zw COBE sees the improvement and as the effect of failure by a company to of doubt. Omega Ukama: [email protected] codification of the common law principle redeem or purchase shares, the power With all these changes that COBE Subscriptions Representatives Adelaide Moyo: [email protected] of bona vacantia. The Act provides for of a company to arrange for different brings, new forms will need to be creat- Nelson Gahadza: [email protected] Ronald Madiviko: rmadivik .zw Freedom Mashava: [email protected] Elizabeth Nyamaruze: eny .zw the vesting of any property of a defunct amounts being paid on shares and the ed, such as the form on which the benefi- company or to which no one has any requirement for a notice to the Registrar cial owners will need to be listed. COBE Production Supervisor Chief Executiv Kudzai Rushambwa: rushambwak@fingaz.co.zw .zw claim in now vesting in the State. Section of consolidation of share capital, and con- contemplates regulations which the Min- 53 of COBE goes further than the old version of shares into stock. ister is empowered to make from time to

Bulawayo Companies Act’s section 321 by provid- COBE introduces the solvency and time, along with policy directions to the Editorial, Advertising & Circulation 1st Floor, Princess Court, 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, ing how the process is to be carried out liquidity test which a company must sat- Registrar of Companies. The public is P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. by the State when a company becomes isfy at any particular time “if, considering urged to now look out for these regula- Tel: +263-242-781 572 Tel: (029)75873/75270 defunct and struck off the register of all reasonably foreseeable financial cir- tions which will assist to operationalise Website: www Distributed by: ANZ companies and there is no one claiming cumstances of the company at that time,” COBE. VOLUNTARY MEDIA COUNCIL OF ZIMBABWE the property of the now defunct company the assets of the company, being fairly n Phillips-Sadza is a lawyer by pro- The Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced or there is no distribution taking place. valued, equal or exceed the liabilities of fession and a Partner at Phillips Law, a news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of the company “as fairly valued”. Zimbabwe at: This provision details the manner in local boutique law firm specializing in No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 which from the Registrar of Companies Also included is the fact that the com- Immigration and Citizenship and Cor- Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz through to the State will manage the pro- pany must be able to pay its debts as they porate Law. Zimbabwe The Financial Gazette December 12-18 2019 | Page 9

‘We need a construction sector law’ lion, it means the ZW$100 million is now around clauses in the Procurement Regulatory Authority OR more than a decade, the construction industry has been pushing for a law which pro- US$6 million at current rates. That has created chal- of Zimbabwe Act, which are being manipulated to tects the public from substandard products and poor workmanship. The industry has also lenges. Several projects have been suspended. There favour a selected few. If you look at most projects been unhappy with the influx of foreign players, which they want to be controlled. Zimba- is also a requirement that clients, if budget is exceeded you will notice that they are being done by the same F by 25 percent, they have the prerogative to cancel. As names. Maybe they are the best, but the question is bwe Construction Industry Association (ZCIA) president Bernard Musarurwa (BM), spoke to Nelson Gahadza (NG), our staff writer, about developments in the sector. Below are his views. a result, quite a number of contracts are being can- how do you expect others to grow and buy equipment celled on that basis. In other countries such as Zam- if everything is being monopolised by a few individu- bia, Malawi and Mozambique, contractors price their al contractors, it raises a lot of questions. NG: Would you explain why the different associations in There was effort by government to speed up payment projects in hard currency. In our case, we budgeted NG: How are you addressing issues of labour the build environment congregated together for this year’s of legacy debts some of which were converted into in US$ and now we have the local currency with the within the industry? annual congress, having done these separately over the years? part payment of taxes among others. exchange rate at 1:17. So this is creating serious chal- BM: Labour has also been affected by the issue of BM: The Zimbabwe Construction Industry Association start- NG: What are the key challenges impacting lenges. the exchange rate. Where there is a crisis, wages and ed off as a council in 1994. Its purpose was to provide a forum for the industry? NG: There are allegation of corruption in salaries have not increased that much, but prices have different members to articulate issues of mutual interest. ZCIA BM: The biggest issue is the exchange rate. If you terms of awarding of tenders by government. gone upwards. So, things are difficult for any labourer represents all players in the build environment namely engineers, look at the situation in January this year, the exchange What is your comment on that? and they end up leaving the country, especially skilled architects, Construction Industry Federation of Zimbabwe (CI- rate was 1:1. If you funded a budget of US$100 mil- BM: On the procurement of contracts, there are labour. FOZ), Zimbabwe Building Contractors Association (ZBCA) and real estate industry. We have the Zimbabwe Association of Consulting Engineers who provide construction and other civil engineering disciplines, the Zimbabwe Institute of Geomatics who are the surveyors who form the basis of our designs. We have the Architects Institute of Zimbabwe who do the pictorials, the Zimbabwe Institute of Quantity Surveyors who do contact documentation, bills of qual- ities and estimation among many other things. There are two groups of contractors. The ZBCA was created to advance the issue of indigenisation when it was government policy. But now that it is no longer government policy, they are now talking of merging with CIFOZ. This is the membership of ZCIA, whose purpose is to find areas of mutual concern and find strategies and solutions and present to relevant authorities particularly govern- ment. CIFOZ and ZBCA are pushing the Ministry of Labour to get the bill on the construction industry that will protect the contrac- tors. It has been there for decades now, and we are not sure what the holdup has been about. NG: What are some of the contents of the Bill? BM: Like in other countries, we need to have some form of regulation, where only bonafide members of the federation are allowed to offer construction services. It is happening to some extent, but there is no legal basis to stop others from giving sim- ilar services. The registration of contractors should ensure one is a member of ZBCA or CIFOZ. They would have assessed your capacity, ability and resources, which is important for protecting the public and the industry’s reputation. NG: You have been clamouring to be awarded govern- ment projects and other huge projects. Does these associa- tions’ members have capacity to fund them? BM: This is a chicken and egg situation. For there to be ca- pacity, there has to be the opportunity for work. You can’t expect the industry where there are no jobs and no projects to tool up because it costs a lot of money to buy plant and equipment. The industry needs to retain staff who had fled to the diaspora to seek sustenance. In terms of capacity, the Selous-Ngezi road done in 2000 is a classic example of a project that was done by locals. The 77-kilometre stretch was done in 210 days, wholly designed and constructed by locals. Once contractors are resourced, projects can be done locally. NG: There was a time the Reserve bank of Zimbabwe (RBZ) set up a $50 million facility to support the construction industry. Was this not an opportunity for growth? BM: Contractors complained that the facility was in local currency. Without a foreign component it became useless. The facility entailed that contractors would go to source foreign cur- rency elsewhere. If someone is serious about capacitating the con- struction industry, financing should be in hard currency. We don’t manufacture the equipment, all is imported. NG: Are you exploring opportunities in the region? BM: Local companies such Gulliver used to do work in Mo- zambique after approval by the central bank. However, am not sure whether there are still companies operating outside the coun- try due to the need to preserve the foreign currency. NG: How much are you owed by government? BM: We do not have the actual figures. But they can be best obtained from the Ministry of Local Government and Public Works where all records of government projects are kept. But oth- er government entities such as the departments of roads owe var- ious construction associations money dating back several years. Page 10 | December 12-18 2019 The Financial Gazette Advertorial Managing healthcare he cost of healthcare has been rising alarmingly over time due to a number of factors. Key among Tthe factors contributing to rising healthcare in- flation is the emergence of new disease patterns espe- cially the Non-Communicable Diseases (NCDs) such as cancers, hypertension, and diabetes because of di- etary changes, sedentary lifestyles, and industrialization waste. New medical technology, which ideally is meant to improve outcomes, and be cheaper, has also been a cost driver particularly in the third world economies on the Health Technology Assessment scale. Finally, yet im- portantly among these factors, is the fee-for-service re- imbursement model that has seen the rise of fraud, waste and abuse as over-servicing becomes the order of the day. All this has resulted in the cost of this crucial service going beyond the capacity of traditional healthcare in- surance. Other funding options have also been rendered unsustainable due to the dynamics of the macroeconomic environment, more so in the context of Zimbabwe. However, these dynamics are not new to the health- care insurance industry, and Zimbabwe is merely going through an era that most if not all first world countries went through and this calls for adoption and perfection of some of the intervention strategies that were, and are still in use in these countries. THE PANACEA Managed Healthcare is therefore a concept that is intended to minimize unnecessary healthcare expendi- ture through a number of initiatives that include the fol- lowing: • Incentives for physicians and patients to select less costly, but equally effective forms of care • Health Technology Assessment programs for review- ing the medical benefit of specific services versus the cost • Beneficiary cost sharing • Case management controls on inpatient admissions and lengths of stay • Use of patient management guidelines and protocols • Establishment of cost-sharing incentives for outpa- tient surgery • Selective contracting with health care providers • Intensive management of high-cost health care cases These programs are usually offered in a variety of settings, such as Health Maintenance Organiza- tions and Preferred Provider Organizations and has its origins in the United States of America. One such biggest billion dollar, not-for-profit Managed Care Consortium is the Kaiser Permanente founded in 1945 in the USA. Its establishment has seen great improvement being made in terms of healthcare affordability, quality outcomes, and Other funding options have also been rendered unsustainable due to the dynamics of the macroeconomic envi- ronment,.. emphasis on preventive care. The unusual thing about this consortium is that it was a forward integration ini- tiative by a group of healthcare providers, unlike what is common in our setting whereby most healthcare funders integrate backward to establish healthcare provision sub- sidiaries. IMPLEMENTATION FRAMEWORK Successful implementation of Managed HealthCare concept is heavily dependent on the availability of healthcare providers. The Health maintenance organiza- tions (HMOs) are established to provide health insurance network. physician (PCP). irrelevant in this VUCA environment. Tried coverage for a monthly or annual premium and limits KEY TAKEAWAYS • Preferred provider organizations (PPOs) is and tested models need to be embraced, adopt- member coverage to medical care provided through a • A health maintenance organization (HMO) also a healthcare plan that is an alternative ed and improved upon as a matter of urgency. network of doctors and other healthcare providers who is a network or organization that provides to HMOs. While this article has emphasised on the are under contract to the HMO and brings in the follow- health insurance coverage for a monthly or A PPO is a medical care plan in which cornerstone of Managed Care, that is, the net- ing benefits: annual fee. health professionals and facilities provide ser- work of healthcare providers with shared vi- • Allows premiums to be lower than for traditional • An HMO comprises of a group of medical vices to subscribed clients at reduced or nego- sion and values, there are several operational health insurance insurance providers that limit coverage to tiated tariffs. PPO participants are free to use issues that need to be explained and explored • Healthcare providers have the advantage guaranteed medical care provided through doctors and the services of any provider within their net- for successful implementation of the Managed population of enrolled patients directed to them other providers who are under contract to work. However, Out-of-network care is avail- Care concept. • There is continuum of care and easy follow-up of pa- the HMO. able, but it costs more to the insured. While Future offerings in this series will seek to tients by providers who are taking care of an enrolled • These contracts allow for lower premiums HMO plans require that participants receive provide more clarity on the evolution, pros and population of patients because the healthcare providers have the healthcare services from an assigned provider, cons, and the various models of managed care, • There is more focus on quality outcomes and preven- advantage of having patients directed to PPO organizations do not. and how the Zimbabwean healthcare sector tive care by the healthcare providers because volumes them, but they also add additional restric- CONCLUSION can benefit from the adoption of the managed are not an incentive tions to HMO members. The rising healthcare inflation calls for fu- healthcare concept. However, the only limitation that may arise is the ad- • HMO plans require that participants first turistic creativity and innovation for sustain- Compiled by ditional restrictions to the HMO’s members especially to receive medical care services from an as- able healthcare insurance. Continued operation Dr T. KANONGARA specialized medical care that may not be included in the signed provider known as the primary care as paying agents will render medical insurers Health Policy & Intelligence, PSMAS December 12-18 2019 Page 11 The Financial Gazette Companies&Markets

BRIEFS Load shedding SeedCo tipped hits SA miners SOUTH African mining operations have been hard hit by the rolling power cuts that embat- tled state owned power utility, Eskom, has been enforcing in an effort to save power to avoid a complete nation wide black out. The country’s mining companies Harmo- ny Gold, Impala Platinum, and Sibanye-Still- to perform well water have been forced to cut production since Monday due to power shortages, they Shame Makoshori said on Tuesday. Companies Editor “There are very few underground mines that operated overnight and will be operating EEDCO International’s share normally today,” said a spokesman for the price on the Zimbabwe Stock Minerals Council, an industry body. Exchange (ZSE) is expected to Harmony Gold called off its underground S shifts, saying it would resume as soon as state rise by more than 60 percent due to improved agricultural production in power company Eskom could provide assur- the region. ance power supply would be more reliable. The regional seed producer was Impala Platinum has shut production at its unbundled from SeedCo Holdings Rustenberg and Marula mines owing to power (SeedCo) in 2018 and was primarily cuts that have left it functioning at 20-30 per- listed on the Botswana Stock Ex- cent of normal power. — IOL change, with a secondary listing on the ZSE. Although its share price has per- formed exceptionally well on the Alexander Forbes BSE, equities research fi rm Morgan & Co said SeedCo International’s ‘turns the corner’ shares are currently undervalued on the local bourse. SOUTH Africa’s largest pension funds ad- “The company is very cheap ministrator, Alexander Forbes, says it has ar- compared to listed regional compet- rested the exodus of executives and profi t de- itors – Monsanto and Corteva – with clines in its business and it can confi dently say an average forward PER of 22,2x,” to shareholders that it has “turned the corner”. said Morgan & Co. The results the company reported on Mon- This came as the increase in depreciation and exchange adjust- overdue balances. “The dual listed counter is cheap- day were for the six months ended in Septem- maize seed sales volumes in Mala- ments. As at reporting date, borrowings er in real terms on the ZSE (US17,13 ber 2019. wi, Tanzania and Zambia were neu- The group invested the bulk of were at US$46,8 million to cover cents) compared to the BSE price of Despite recording only a 1 percent increase tralised by unfavourable currency the capital through purchase of a the working capital gap created by US27,70 cents. We believe there is in operating income and 3 percent operating movements and the delayed start to seed production farm in Mkushi in the current high levels of inventories room for re-rating of the counter on profi t from its remaining businesses, Alexan- the planting season in Kenya due the Zambia. and receivables. the ZSE to match the BSE.” der Forbes CEO Dawie de Villiers says given late onset of rains. Additionally, the group also in- As part of initiatives to improve Its report gave the SeedCo Int. where the company comes from, he thinks it’s Despite the challenges, the seed jected more capital into Prime Seed seed varieties and a cushion against share thumbs up on ZSE, recom- fi nally delivering to shareholders. producer recorded improvement in Co International in Botswana for the changing climatic environment, mending a buy based on projected The company’s headline earnings per gross margins on the back of a good acquisition of an 80 percent stake SeedCo International released sev- resilience of the fi rm’s operations share — a preferred measure of profi tability, product sales mix. in Alliance Seeds – a South African eral seed varieties in Kenya, Ghana in Sub Saharan Africa (SSA), where as it excludes impact of once-off transactions According to the group, non-core based vegetable seed company. and Zambia. it has conquered markets in Ghana, — has increased by 42 percent. income declined to US$1,3 million SeedCo International’s trade On the back of the seed produc- Kenya, Zambia and others, and is “One person might say that’s only 1 per- on account of reduced exchange and other receivables marginally er’s improved performance, Morgan breeding a series on drought resis- cent…because that percentage up in revenue gains on foreign-currency denom- increased to US$54,2 million from & Co recommended a buy on Seed- tant seeds to withstand the vagaries in six months shows we’ve turned the corner inated receivables in Zambia as its US$53,2 million in the comparable Co International shares on the ZSE of climate change. as a company. At a time like this, a year ago Kwacha’s rate of depreciation decel- prior year period as collections of based on projected resilience of the The company’s revenues in the we could have lost a lot of clients, we could erated. outstanding balances from custom- fi rm’s operations in Sub Saharan half year to September 2019 were al- have lost a lot of staff. To grow revenue in During the six months under ers were negated by current year’s Africa, and is breeding a series on most fl at at US$17,6 million, while an environment like this, in a stage where we review, fi xed assets increased to credit sales to date. drought resistant seeds to withstand operating expenses also remained were as Alexander Forbes, it shows change to US$39,2 million resulting from cap- Indication are that management the vagaries of climate change. constant at US$11,6 million on good the right direction,” said De Villiers. — Fin24 cost containment management. ital expenditure partially offset by will continue engaging debtors with newsdesk@fi ngaz.co.zw Page 12 | December 12-18 2019 The Financial Gazette Companies & Markets Exports buoy Zimplow earnings Adelaide Moyo ermec spurred the group’s overall performance counterbal- Staff Writer ancing the downward adjustment in demand for products in other business units in line with economic activity,” the IMPLOW Holdings (Zimplow) says an increase in company said. exports at one of its units is paying off after register- Demand for the Perkins engine driven generators in- Zing strong growth as demand on the domestic market creased by 85 percent compared to the same period last remains depressed. year. The agricultural concern said Mealie Brand — which Service hours sold went up 28 percent against prior manufactures and stocks a wide variety of farming products year, as Perkins engine powered generators became the pri- including animal-drawn and tractor drawn-farming imple- mary source of power for Zimplow’s customers. ments — recorded an increase in volume of 13 percent Farmec subsidiary adjusted to the general economic cli- during the third quarter ended September 30, 2019. mate as tractor sales volumes declined by 45 percent for the “The export implements sales grew by 307 percent nine months. helping to ameliorate the drop in local demand of imple- “The 2018/19 drought and the poor tobacco price yield ments which was 63 percent down to the comparative pe- impacted Farmec’s after sales support as parts pieces sold riod,” the firm said. dropped by 31 percent whilst service hours were 24 percent The unit, apart from supplying the Zimbabwean market, down for the nine month year to date,” Zimplow said. exports to several countries in sub-Saharan Africa includ- Although Barzem business position improved signifi- ing Zambia and Malawi. cantly, volumes for the review period trailed behind prior Zimplow said its diversified portfolio showed resilience year. despite the drought and prevailing economic challenges in Earth moving equipment volumes declined by 58 per- the country. cent compared to prior year although showing signs of re- “The positive performance at Mealie Brand and Pow- Mealie Brand manufactures a wide variety of farming implements. covery to year end. [email protected] Cotton ginner diversifies to cooking oil production

Nelson Gahadza Staff Writer

OUTHERN Cotton Company (SCC) says it is plan- ning to diversify into cooking oil production next Syear, with raw material coming from the company’s ginning operations. The company which is currently the second largest cotton producer in Zimbabwe has ginneries in Shamva, Sanyati, Chiredzi and Chegutu. Caos Nzenze, the company’s managing director, said SCC has since acquired the beneficiation plant which will commence operations next year. “We have invested into a beneficia- “We have tion plant for our own seed to produce invested into cooking oil and other products such as a benefici- fat oils,” he said during a tour of the ation plant company’s ginnery in Shamva last week. for our own According to Nzenze, after the gin- seed to pro- ning process, 42 percent of the product duce cooking is lint while 58 percent will be cotton oil and other seed. products He said the firm is targeting to pro- such as fat duce between 20 000 to 25 000 tonnes oils” of seed cotton during the 2019/2020 ag- ricultural season. “We have already distributed more than 70 percent of the current season’s inputs to our contracted farmers and we are targeting an output of 60 000 tonnes for the sea- son, and increase from 42 000 tonnes achieved during the 2018/19 season,” he said. The SCC boss also indicated that 70 percent of the company’s lint is destined for the export market, while 30 percent is reserved for local weavers and spinners. He however, noted that the spinners and weavers industry was currently depressed and failing to reach the 30 percent threshold. He further indicated that power shortages have been the major drawback for the company’s ginning operations, as it is enduring the more than 18 hours of load shedding currently being experienced countrywide. Apart from power, the company is failing to access an export permit license with at least 500 000 tonnes of lint stashed across the company’s ginneries. “This is costing us a lot through penalties as our clients fine us for delays in delivering their goods. In other cas- es, we are re-negotiating the sales contracts which will be heavily discounted,” he said. “South Africa and Germany have been our major ex- port markets with orders currently in stock for the export market valued at US$750 000.” Meanwhile, Nzenze said the company has earmarked construction of a third ginnery in Kanyemba, following a US$1,5 million investment. During the 2018/19 season the company spent US$4,1 million towards cotton production [email protected] Robin Vela

The Financial Gazette December 12-18 2019 | Page 13 Companies & Markets ZSE turnover down 40pc in November

Rukwara said. Omega Ukama The market has this year seen trades worth $1,8 billion, Senior Staff Writer up from $926 million in 2018 but some market watchers argue that the figures are, however, not necessarily com- HE Zimbabwe Stock Exchange (ZSE)’s turnover parable since the country officially dumped the greenback declined by 39 percent in November to $123 mil- for the Zimbabwe dollar in February. lion. T The supposed upsurge in stock market activity this In US dollar terms, the value of trades were 42 percent year has been attributed to investors’ flight to safety, amid lower than the previous month at US$8,3 million. galloping inflation. The decline of trading activity in November halted a The government suspended the publication of annual two-month upsurge, which was driven by the deteriora- inflation after it reached 176 percent in July. It is estimated tion of the Zimbabwe dollar on the parallel market. to have spiralled to 440 percent in October. The turnover during the month was also 23 percent be- “We believe that activity on the local stock market has low the market’s 2019 monthly average of $160 million. been spurred by the need by foreigners to sell out of their Enock Rukarwa, FBC Securities’ research and invest- positions and exit,” Fungai Nyaungwa, a local equities ment analyst, said the depressed volumes can be attribut- analyst said recently. ed to “market anomalies”. “In addition, given that turnover is also a function of “Festive season trading is usually characterised by be- the price, the period under review saw some record-high havioural factors of conservatism and stock market dis- prices for some of the companies on the ZSE,” she said. ruptions as investors will be winding the financial year,” [email protected] Mnangagwa yet to sign off CLIENT Premier EMO CONVENIENCE Adelaide Moyo & SATISFACTION Staff Writer

REMIER African Minerals (Premier) says President Emmerson Mnangagwa is yet to sign off an exclusive Pmining order (EMO) that the ministry of Mines said had been granted to the company. George Roach, the Aim-listed company’s chief execu- tive, said executives from the company will fly into Harare this week to finalise the deal. “The deputy minister of mines a little while ago made an impromptu announcement that was widely reported to the effect that our exclusive mining order had been grant- ed. Facts are that it requires the president of the country to sign an exclusive prospecting order. All our communication which is on-going indicates to us that this is a procedural situation that we in and that it takes time as the president is a busy man,” he said. “We are meeting the ministry of mines and other rele- vant ministries again during the course of the week really just saying to them guys it was wonderful what was said and it was very nice that someone said it in the public domain but give us a confirmatory note to that effect that you are going to put a signature so that we got it in writing as well and is there anything we can do Mr President to please get you to sign this thing off. We know you are open for busi- ness, we have proved that we have the money to go and start working and we are desperate to start work, please let us.” He said the Premier projects ― Zulu, RHA Tungsten and Circum ― which are all waiting for development “have been intensely frustrating holding breaths.” Premier also operates the RHA tungsten mine in Zim- babwe. Roach said Zesa had originally indicated that they will be complete with electrification by end of November. “They haven’t hit the target but they are not far off,” he said. He said during the visit, the authorities will negotiate for additional finance for the RHA project. “We all know that the RTGS$6 million that was given to us was not equivalent of the amount on the contract set out. The ministry of industry has acknowledged that the funds were not adequate to meet everything that had to be done and they are confirming that they have additional allo- cations from treasury that they will be giving us additional money but of course they don’t give us the date or the exact amount,” Roach said. Premier said its pre-tax loss widened heavily to US$17,9 million in the half year to June 2019 from US$1,5 million, due to an US$18,3 million foreign exchange loss, compared Buying and selling foreign currency, to none in prior comparable period. as well as access foreign currency for [email protected] travelling on a willing-seller willing-buyer basis, at interbank rate, as prescribed by Getting it right the Reserve Bank of Zimbabwe. N OUR October 24 edition, we erroneously referred to former National Social Security Authority chief +263 772 976 553 Cnr Samora Machel property investment officer Kurauone Chihota as Ku- +263 782 598 457 [email protected] I +263 772 447 529 & 6th Str, Harare rauone Chihwayi in an article titled: “Fresh turmoil hits NSSA, 24 suspended”. While the essence of the story was to highlight people who were frustrated out of NSSA, we are sorry to have included the name Chihwayi. Any incon- venience caused is sincerely regretted. — Editor Page 14 | December 12-18 2019 The Financial Gazette

DPA expands footprint in Africa

Nelson Gahadza Staff Writer

ISTRIBUTION Power Africa (DPA), a member of the Econet group, says it has started deploying Dits solar power solutions in east Africa, in par- ticular Kenya, as the group seeks to expand its market across the continent. Norman Moyo, DPA’s group chief executive, told The Financial Gazette that the company currently has a firm footing in Zimbabwe and South Africa but is look- ing to cover the whole continent. “We have started deploying in Kenya and we are also engaging in Togo and Ivory Coast where several clients are interested,” he said. Moyo added that across the continent, the group’s biggest clients have been data centers and telecoms switching centers. “For markets like Zimbabwe and Zambia, where we are beginning to witness grid instability, a solar solution is a no-brainer, as we encourage more companies to in- vest in solar,” he said. Moyo noted that the cost of deployment, which is a challenge for many firms operating in Africa, has been eliminated because the company provides the invest- ment. “We do the deployment and maintenance and the op- erations ourselves. The cost of running a generator at the moment is something around US$0,40/kwh but the solar power can be as low as US$0,15/kwh,” he said. According to Moyo, DPA’s main focus is to develop renewable energy solutions targeting primarily to start with corporates and industries in the continent. “Our model is a power lease agreement where we make the investment and the customer just signs a lease agreement for 15 years,” he said. DPA last week commissioned a one megawatt rooftop solar power generating plant at Schweppes Zimbabwe. Moyo said the cost savings and efficiencies of renew- able solar energy are becoming ever more apparent to African companies. Apart from the Schweppes plant, the company re- cently completed projects include a 118kW roof top solar plant at the Surrey Meats abattoir in Marondera, Zimbabwe and Kefalos Foods with a 600kW system. In Nairobi, Kenya, the group recently commissioned a 136kW roof mount system at East Africa Data Centre (EADC). “The latest new project in Kenya is the Aga Khan Kuze installation in Mombasa,” Moyo said. DPA has also partnered with another global energy giant Életricitè de France (EDF), on scaling up Commer- cial and Industrial solutions for African markets.

More companies and households are investing in solar energy. The Financial Gazette December 12-18 2019 | Page 15 Companies & Markets Insurance monopolies worry IPEC

Omega Ukama share. southern African country as businesses adopt Senior Staff Writer “If we are to take a risk-based approach, it digital service models to improve service. is clear that these levels of concentration are “The traditional insurance providers of Af- HE Insurance and Pensions Commission (IPEC) worrisome,” the commissioner said. rica and Zimbabwe have failed in reaching the says the dominance of a few companies in the lo- She said the imbalance was likely caused financially excluded. They have been slow to Tcal insurance industry is “worrisome” and poses by the market’s preference for perceived qual- tailor their products and services to the local great risk for the sector. ity. realities,” Zelina Francis, ZimSelector’s busi- Grace Muradzikwa, the statutory body’s commis- “The main concern here is the issue of se- ness development director said at a recent in- sioner, told reporters that “it is indicative of weak com- curity…what is probably happening here is dustry meeting. petition as business is concentrated in a few players”. that there is a flight to quality, where policy- “Traditional insurance companies have “In short-term insurance, the top three insurers have holders look for security in moving their busi- long and complex contracts and are distributed a combined market share of 48,43 percent…this is not a ness,” she said. through costly networks of agents and brokers good indicator of competition,” she said. The commissioner said it is up to the small- that only reach the urban elite. “We have eighteen players and three are contributing er players to come up with innovative products “Insurers must digitise to remain relevant close to 50 percent of the business, leaving 15 to com- to challenge the dominance of the larger cor- and viable and especially in order to achieve pete for the balance”. porations. real industry growth which can only be In the reinsurance sector two companies control “We have seen some insure-techs that have achieved by reaching the un-insured majority. 51,96 percent of the market share. come into the market and have been able to get “Digitisation of channels is vital for Afri- “The life assurance market is also dominated by two significant market share within a short period can insurers because it fosters financial inclu- assurers with a combined market share of 64 percent. of time just by doing things differently. So it is sivity and supports lower operating costs for “The asset base of the life assurance industry is con- clear that it can be done,” she said. Grace Muradzikwa insurance delivery,” she said. centrated in one entity which has 83 percent market Insurance tech is slowly taking root in the [email protected] Irvine’s widens export markets Nelson Gahadza Staff Writer

RVINE’S Zimbabwe (Irvine’s) says it has widened its export markets to cater for surplus production as Ilocal demand remains subdued. “The company recently opened a number of export markets to ensure that any surplus production can be ef- ficiently utilised,” it said. The Innscor Africa unit achieved a mixed perfor- mance for the first quarter FY20 ended September 30, 2019, with table eggs volumes at 39 percent above the comparative quarter, and also four percent above the fi- nal quarter of FY19. “This was a result of the operation returning to full production capacity, following the re-building of the Layer production base,” the company said. The company’s increase in production of parent day old chicks has also seen it penetrating into regional mar- kets with over 50 percent market share in a number of countries. However, volumes of frozen poultry were 18 percent lower while day old chick sales declined by 44 percent. Both lines were affected by the steep increases in key raw material costs which subsequently affected overall demand. “Focus will be on ensuring adequate supplies of key raw materials, such as maize and soya, are in place to en- sure sustainability of the breeding flocks, and to enable adequate replacement of production birds,” said Irvine’s. It noted that capital investment will continue to de- ployed towards automation of the Layer category to en- sure low-cost production. In 2017 Irvine’s was affected by an outbreak of Avi- an flu which resulted in the company culling 835 000 chickens, mostly layers and broiler breeders, between June and August 2017. At its peak Irvine’s produced 1,5 million dozen table eggs per month but as a result of the avian flue, produc- tion reduced by 45 percent, while broiler day-old chicks were now down by 50 percent. The holding company, Innscor Africa, has since in- vested in excess of US$8 million for the restocking of its chicken-rearing subsidiary at the company’s Lanark Farm. Government also suspended duty on fertilised poul- try eggs for hatching (maximum of 852 000 eggs per week) through Statutory Instrument 124 of 2017. [email protected] Page 16 | December 12-18 2019 The Financial Gazette Motoring Right car at the right time Hyundai Venue the product of an overnight liaison be- TOP GEAR with tween a VW T-Cross and a Volvo XC40, Richard Wiley not a bad combo I might add, as the end product is chunky and attractive at the same time. O get the cash tills ticking, it As ever, my eye was drawn to the seems that manufacturers need paintwork which on casual inspection Tto design more and more Sport looked beautifully glossy, but which Utility Vehicles (SUVs) and place them featured excessive orange peel on most on showroom fl oors where a customer’s vertical surfaces. At least the panel gaps biggest headache is to differentiate the passed muster and neither car suffered multiplicity of offerings on display. from any squeaks and tinkles which sug- Hyundai is no different. Indeed, the gests that Indian assembly is pretty tight! Korean manufacturer was one of the Inside, the Venue sports a mix of ma- earlier birds on the SUV trail with its terials according to model. Both Motion thoroughly convincing iX35 SUV that models feature cloth seats while the Flu- did more than any other model in its bur- id and Glide versions mix leather with geoning arsenal to change perceptions cloth, but be aware that only the top about Korean-sourced vehicles. Glide model is equipped with a 60:40 Since then, Hyundai has cement- split rear seat to provide more loading ed its international presence by setting fl exibility to add to the competitive seat- up testing and manufacturing facilities up boot volume of 350 litres. all over the globe, with India gaining Large infotainment unit in top models features CarPlay and Android Auto Cabin space is adequate for four ground at a furious pace thanks to low adults, with those in the front enjoying labour costs. But please put any preju- well-bolstered, high-mounted pews that dices about lower assembly standards are nonetheless a little short on under and Indian factories on the back burner thigh support. A black mark is allocat- as big investments by major manufactur- ed to the interior designers for failing to ers in modern plants means automation provide fore and aft adjustment of the is holding sway these days and with au- steering wheel which in my case felt too tomation comes consistency. close to my chest when pedal reach was So it is with Hyundai’s brand new optimised. Indian-built compact SUV carrying the At this price level, you’re not going decidedly odd name, Venue. A massive to be spoiled with acres of soft-touch launch event hosted in Cape Town in the surfacing and the Venue is no differ- fi rst week of December was propelled ent, but aside from some rather nasty by backing from Hyundai’s Middle scratchy bits lower down and within the East and Africa division, and the sheer panel surrounding the electric window scale of the presentation tells you just switches, Hyundai has done a good job how important this newcomer will be to in creating a pleasing ambience which in Hyundai. the case of the Fluid and Glide models In the simplest of terms, the compact is enhanced by the hidden presence of Venue SUV will be locking horns with front, side and curtain airbags – the Mo- the likes of the fresh VW T-Cross, the tion makes do with front only. surprising Mahindra XUV300 and the Equipment levels are generous for now aging Ford EcoSport. I suspect it the class such that all models sport air will also cannibalise sales of Hyundai’s Chunky styling and fancy lamp design are standout features con, electric windows and mirrors, USB own i20 hatchback as Saffers fall over connectivity, central locking, Bluetooth themselves to get the keys to higher-rid- and an on-board computer. In the case of ing SUV derivatives. the Fluid and Glide models, you can add The obvious question is: how does fancy alloy wheels, an infotainment sys- the Venue shape up? Well, allow me tem with CarPlay/Android Auto utilising to draw breath and avoid making a de- a large central screen, cruise control, fi nitive prediction at this early stage as rear camera with park assist and more launch events are rapidly passing affairs besides. that don’t always encompass the daily In the RSA context, the ‘lower’ SUV grind that most vehicles are subjected to. segment is becoming something of a bat- As is the norm, much of the launch tleground, especially since the arrival of drive took in open road and motorway the VW T-Cross, an event that has got but at least some A-roads were encoun- the attention of Hyundai given the Ko- tered together with a smidgen of traffi c. rean company’s slightly barbed (adver- Three trim levels are offered, name- tising) references advising potential buy- ly Motion, Fluid and Glide, and at our ers not to “cross their T’s” before trying disposal was a Fluid-trimmed 6-speed the Venue! Needless to say, the German manual and a Glide 7-speed DCT or dual company has countered, so hopefully the clutch transmission for the uninitiated. humour will be maintained! Please visit www.hyundai.co.za to Without the benefi t of longer-term get the full picture on number of deriv- association in either case, I will desist atives and the absolute trim specifi cs, from passing a defi nitive opinion on two but in the meantime, be aware that only rivals that sport a remarkably similar one engine option is offered, that be- specifi cation and that drive in an equally ing a 998cc triple producing a healthy Every inch a modern, compact SUV with all the added styling detail composed manner. 88kW at a heady 6 000 rpm and more They are incredibly close competitors importantly, a 172Nm slug of torque which, Hyundai offer a rather generous normalities with competence, albeit that that fi rst appeared in the Veloster a few and are more closely priced than past that holds its shape all the way from 1 guarantee so I’m confi dent that durabil- the relatively short wheelbase could not years back. This really is worth the extra history shows, but where the VW has the 500 to 4 000 rpm. ity will be just fi ne. prevent an element of choppiness from money as changes are slick, smooth and wider support network and a brand per- Now I just know before we’ve even We started our day with the Fluid intruding. And as you’d expect, the high decisive and there’s no performance or ception advantage, the Hyundai counters turned the key that the doomsayers will 6-speed manual which was blessed with build exaggerates initial body roll but economy penalty. with a longer warranty and service plan be pontifi cating about shortened engine a smooth-acting, light clutch and a slick that’s quickly checked. Give or take a few tenths, the 0-100 that may just help preserve long-term life because of the stresses and strains gearshift, notwithstanding the meagre Women will love the steering as it’s dash will evaporate in around 11.5s value. placed on such a diminutive engine deal- 300km on the clock. That 3-cylinder mill light and effortless, but as a consequence, while forward momentum is maintained Whatever, the Koreans have come up ing with a 3.995m long vehicle weighing offered more grunt in this lightly laden a tad lacking in feel, while the brakes are to around the 185km/h mark. As for with an impressive package that’s sure in at around 1 110kg. vehicle than might have been expected decisive and nicely weighted. Overall, a thirst, expect an overall fi gure near to to shake up the market and attract new Sure, boost levels must be fairly high and wafted it along at or just above the good performance from the lightweight, 7.0l/100km which will provide respect- buyers into the Hyundai fold. but thanks to that fl at torque curve, en- national limit with disarming ease and a especially as wind and road noises were able range from the 45-litre fuel tank. (Please note: all reference to model gine revs in normal use are far lower pleasing lack of mechanical fuss. not unduly intrusive. As you might expect, the Venue is range and spec applies to the SA market. than will be needed by a normally as- Only when pressed in the lower gears Our return journey was conducted in aimed at young families so features some For information relating to the Zimba- pirated 1.4 to maintain momentum, and did the expected 3-cylinder gruffness a top-spec Glide model using Hyundai’s funky bits of external styling, especially bwe market, please consult Automotive anyway, specifi c power output is below intrude. As for dynamics, the slightly updated 7-speed DCT automated gear- around the nose with its mix of lamp Distributor Incorporated Ltd who have that of many 2.0 hot hatches which seem stiffl y set up MacPherson strut/torsion box that proved to be a revelation com- shapes and rather ornate grille titivation. two Hyundai dealerships based in Harare to last the pace rather well. Besides beam suspension dealt with surface ab- pared with the jerky and slothful version For all the world, the Venue looks like and Bulawayo.) The Financial Gazette December 12-18 2019 | Page S1

ICDZ: Recognising astute directorship in turbulent times

HE Directors’ Excellence Honours were pio- In line with its prominence on good cor- was established to review all nominations, Honours ceremony aimed at attracting busi- neered by the Institute of Corporate Directors porate governance, the ICDZ placed special select the winners in the various categories ness leaders, drawn from all the sectors of TZimbabwe (ICDZ) in order to recognise the emphasis on the contribution of nominees and to select the overall winner. the economy. achievements of individuals in Zimbabwe who have towards sound corporate governance in their It is the desire of the ICDZ that these Distinguished personalities from our own distinguished themselves as effective board members respective organisations as the main part of Honours be the premier and most prestigious economy and across borders attended and by contributing to the success of their enterprises or the criteria for the Honours. business leadership recognition in Zimba- shared their experiences in leadership and organisations. An adjudication panel comprising senior bwe. corporate governance developments in their The Honours seek to recognise an individual’s con- directors and leading business professionals In line with this, the Directors’ Excellence organisations. tribution through their respective boards to strategic direction, sound corporate governance and good cor- porate citizenship as seen through enhanced operation- al performance of their organisations. It also rewards boards who have collectively con- tributed the same. The main objective is not to recognise the manage- ment contribution of the recipient but rather their di- rectorial contribution to the organisation. The Directors’ Excellence Honours Ceremony was held on Thursday, November 28, 2019 at Sabre Busi- ness World. Monica Mutsvangwa, the Information, Publicity and Broadcasting Services minister was the guest of honour. This year's them was "Recognising astute director- ship in turbulent times".

Some of the 2019 award recipients.

This is in acknowledgment of the challenging and volatile environment that the Zimbabwean business world is currently facing and the need to reward in- cisive directors who are of keen penetration and dis- cernment. These directors are seized with the pursuit of com- mercial opportunities that have made their organisa- tions realise sustainable growth. The call for nominations for the different categories of the Honours was sought through a public relations campaign in the media, through the ICDZ itself and through other business organisations in Zimbabwe. There was greater use of the print and digital media in attracting nominations from across all sectors. ICDZ recognised Directors in the following categories: Individual Categories 1. Board Chairperson of the Year. This is flagship award 2. Board Chairperson of Listed Companies 3. Board Chairperson of Higher Learning Tertiary Institutions 4. Special Lifetime Award 5. NGOs Director of the Year 6. Women Champion on Boards 7. Corporate Director Listed Companies 8. Corporate Director Large Companies 9. Corporate Directors –Small to Medium Enter- prises 10. Young Director of the Year Board and Corporate Honours 1. Public Enterprises Board 2. Special Enterprise Award-Family Owned Busi- ness of the Year 3. Special Mention-Board of the Year-Environment 4. Special Mention-Corporate Social Responsibilty Page S2 | December 12-18 2019 ICDZ INAUGURAL AWARDS SPECIAL FEATURE The Financial Gazette Message of hope for the future Matts Kunaka ing?” they asked, “Are you rebelling against the We have heard that where there is no vision people per- king?” ish, I say where there is no Hope, people perish. When there AM humbled to be accorded this honour to I would like to liken those receiving awards is no hope, there is hopelessness speak at the Institute of Corporate Directors tonight to those who are like Nehemiah, who When there no hope, people leave the country for what IZimbabwe (ICDZ) Awards Ceremony. sought to rebuild Jerusalem because they are they perceive to be greener pastures. When I received the invitation, I wondered building Zimbabwe through the companies they When there is no hope, companies stop investing in the what could I talk about? In the end I decided to are on the Boards of. business. They stop investing in plant and equipment, in bring a message of hope. This can only happen when there is hope in training and developing their human capital base …and the You may say why a message of hope. On the country. If there was no hope in Jerusalem, list goes on. the outside there may seem to be no relationship Nehemiah would not have bothered to take leave I believe that if each person has hope and acts in the between my message and the theme tonight, to go and rebuild Jerusalem. area of their influence, the combined effect is phenomenal “Recognising Astute Directorship in Turbulent What is hope? development. Times”, however, it will become clearer with The dictionary defines hope as: a feeling of Hope is what pushed the people of United Arab Emir- time how the two are related. expectation and desire for a particular thing to ates to transform a desert into what it is today. They made Nehemiah, a Jew in the King of Persia’s pal- happen. Dubai the air transport hub of the world. It handled a stag- ace (Nehemiah 2:2-4) looks sad, tells the King Words similar to hope are: aspiration, desire, gering 89 million passengers in 2018. Hope is what made that he would like to go and rebuild Jerusalem. wish, expectation, ambition, aim and plan. them build the tallest building in the world. He is given leave of absence but as with such ‎Romans 8:24-25 talks about hope is this way, Let me give you another practical example: efforts, there is always opposition in the persons “… But hope that is seen is no hope at all, who Every Wednesday, there is a group of men who go to of Sanballat the Horonite, Tobiah the Amonite hopes for what he already has? But if we hope Chikurubi Maximum Prison to conduct Bible Study with and Geshem the Arab who mocked and ridiculed Matts Kunaka for what we do not yet have, we wait for it pa- the inmates there. them (Nehemiah 2:19) “What is this you are do- tiently”. They have done so for the past three years and I am one of them. The results have been phenomenal. Do you know that there are people in there who are innocent or rather who believe that they are innocent? If you are accused of rape and you know you didn’t rape that person or of murder and you know that when that per- son you are accused of murdering died, you where some- where else miles away. In that case you are innocent hey, according to a layman? One goes through seven gates to get inside, imagine! I was reviewing a business plan from one of the guys. He is a young man of about 35 and he is serving 72 years in jail, he has already served 6 and so has another 66 years disre- garding years taken off for good behaviour. Because of his new found faith, the man has hope, he is putting through an appeal through a pro bono lawyer. I have to liaise with the lawyer. Two weeks ago we went with her to Chikurubi. She wasn’t allowed inside the cells because they said it was not female friendly. I guess they meant there was a risk that she could be raped. That’s how dangerous the environment is. At the end of the BSF year we have general sharing of what the inmates had learnt and how the Bible study had impacted their lives. In one such sharing, an inmates con- fessed that his intension on getting out of jail was to kill the magistrate who sentenced him, the prosecutor and the person who falsely accused him but now, they he said he had forgiven them all. This is real life changes. You too can give hope to those around you. My friend said, “If everyone was not concerned about who got the credit, the amount of positive change would be enormous”. Therefore, rather than to engage in complaining, see what difference you can make in your area of influence. My own story is a story of what happens when there is hope. Born into a family with seven children where my father had three wives at the same time. We grew up in a three roomed house, not three bedroomed house in Mbare. There were those who thought there was nothing good which could come from Mbare except thieves, prostitutes and murderers. But spared with hope and a determination to succeed, I managed to go to the University of Rhodesia, now UZ, and studied for a Bachelor of Accountancy (Hons) degree even though at A level I had studied science subjects, Maths, Physics and Chemistry (the dreaded MPC combination). I passed all the subjects but had to do completely new sub- jects in 1st year, 2nd year and 3rd years. I did not carry over any subjects. I graduated in 1978, the first graduate in my extended family. That was not enough, I became a Chartered Accoun- tant in 1983, and there were less than 20 black Chartered Accountants then. I pioneered the MBA for many. There were only two universities in the country and both UZ and NUST did not offer MBA in 1984 and so I went to the USA to do it. So, with determination and hope, the boy from Mbare triumphed. It was tempting to stay on, after all, my scholarship ca- tered for my wife and two children then. But I returned home after a stint of four years at KPMG London, to assist in the development of the new Zimbabwe. So, with that hope and determination, I became finance director and chief executive officer of a number of organi- sations in Zimbabwe and I retired in December 2018. Well, I still feel strong and raring to go even though I’m now 65 years of age. I still have hope to continue contrib- uting to our beautiful country Zimbabwe. The fact that it is being mismanaged does not stop it from being a great country. Lastly, This is why I think that you, the professionals should join Zanu PF and MDC or form your own party if you think those two are not good enough and make it into Parliament to improve the governance and the pool of people from which the President of the day can select his ministers from. There is no use complaining from the side- lines. So, in closing, keep the faith, have hope, do something!

n This is an edited version of Matts Kunaka's speech at the ICDZ awards. Page S3 | December 12-18 2019 ICDZ INAUGURAL AWARDS SPECIAL FEATURE The Financial Gazette ICDZ recognises corporate directors HE Institute of Corpo- a recognition’! I would like to rate Directors Zimbabwe appeal to all directors/leaders to T(ICDZ) awards recognise join the ICDZ, the home of Di- the achievements of individuals rectors.” Eugene Gilbert Peters and corporate in Zimbabwe who ICDZ board member said. have distinguished themselves “As directors we have oner- as effective directors by con- ous responsibilities and in ICDZ tributing to the success of their we have a body responsible for enterprises. nurturing our interests and sup- The awards were held under porting our development. the theme: “Recognising astute "All the programmes we directorship in turbulent times” offer seek to contribute towards and is in line with the challeng- success of directors and busi- ing and volatile environment that nesses and, indeed all other or- Higher Life Foun- the Zimbabwean business world ganizations. dation got is facing and the need for incisive "We are confident an ICD- the Special leaders who are of keen penetra- trained and developed director Mention-Board tion and discernment. will match the current and future of the Year- “A fellow business colleague market challenges.” Corporate Social reiterated that “every organisa- “As the mantra goes, Better Responsibility tion that is currently operating Directors, Better Boards and Award. in Zimbabwe needs to receive Better Business,” Peters said. Winners' list

Final individual categories Board Chairperson of the Year Winner Herbert Nkala FBC

Board Chairperson of the Listed Companies Herbert Nkala: FBC –Winner Addington Chinake: Innscor-1st Runner Up

Board Chairperson of Higher Learning and Tertiary Institutions Dr Mandishona HIT-Winner Bishop Mande Muyondo-Africa University-1st Runner Up

Special Lifetime Achievement Award Krison Chirairo-Econet Wireless

Corporate Director-Listed Companies Roy Chimanikire- Econet Wireless Zimbabwe Limited-Winner Gary Sharp of PADENGA Holdings: 1st Runner Up Thembinkosi Sibanda: AXIA: 2nd Runner Up: Edwin Shangwa: African Sun Limited: 3rd Runner Up

Corporate Director-Large Companies Dr Abel Mubango :Peace Security Winner

Corporate Director-Non Governmental Organi- sations Beatrice Mtetwa-ZLHR-Winner Jestina Mukoko-Zimbabwe Peace Project-1st Runner Up

Corporate Director-Small to Medium Enterprises Thompson Dondo Impala Car Rental-Winner Brains Muchemwa Kelly’s Chicken-1st Runner Up

Women Champion on Boards Mandas Marikanda-Women’s Bank-Winner Emilia Chisango- Cassava Smartech Zimbabwe Limited-1st Runner Up Ruth Ncube-FML-2nd Runner Up Linda Matterson-Edgars-3rd Runner Up

Young Director of the Year Natalie Jabangwe – Ecocash-Winner David Kanengoni- Mutare Bottling Company-1st Runner Up Christopher Mugaga-ZNCC-2nd Runner Up Tinashe Mutarisi-Nash Paints-3rd Runner Up

Board And Corporate Honours Public Enterprises Board TelOne-Winner Agribank-1st Runner Up

Special Mention-Enterprises Award-Family Owned Business Chicken Slice

Special Mention-Board of the Year -Environment Nyaradzo-Friends of the Environment

Special Mention-Board of the Year-Corporate Social Responsibility Higher Life Foundation Stanbic Bank SeedCo The Financial Gazette ICDZ INAUGURAL AWARDS SPECIAL FEATURE December 12-18 2019 | S4 ICDZ winners in pictures . . .

To Page S7 Page S5 | December 12-18 2019 ICDZ INAUGURAL AWARDS SPECIAL FEATURE The Financial Gazette Institute of Corporate Directors Zimbabwe: An overview

HE Institute of Corporate Directors Zimbabwe Hawkamah, the Institute for Corporate Governance, the (ICDZ) is supported by Professional Director DIFC. He is an Affiliate and Certified Governance Expert TCanada and Hawkamah Institute of Corporate from the Chartered Governance Institute, UK. He is also Governance Dubai. ICDZ educates, trains, leads and a jury member of the Arabia CSR Award. Prior to joining provides information on the latest skills, trends, ideas Hawkamah, Dr. Ashraf was the executive chairman of and other know-how in corporate governance to all Zim- Egypt Post. Before that, he was the Deputy Executive Di- babwean leaders in the private and public as well as prof- rector of the Egyptian Banking Institute, the training arm of it and non-profit sectors. the Central Bank of Egypt. It empowers leaders with the best leadership and He was also the founder and project manager of the corporate governance skills and helps boards strength- Egyptian Corporate Responsibility Center working on en investor trust and public confidence by ensuring that promoting the concepts and application of CSR in Egypt. today's directors are well prepared for tomorrow's dy- Furthermore, he was the Executive Director of the Egyp- namic challenges. tian Institute of Directors (EIoD), the Institute of Corpo- Vision rate Governance in Egypt and the Arab Region Dr. Ashraf To be the leader in demonstrating the value of excel- served as a board member and head of the Audit Committee lence in directorship and enlightening directors to antici- in a number of listed, non-listed, State Owned and family pate, influence, and meet boardroom challenges. owned companies. Mission He also served a member of the General Assembly ICDZ is a professional institution dedicated to en- of the Holding Company for Transportation. Further- hancing the professionalism and effectiveness of corpo- more, Dr. Ashraf is a Professor of Management, Faculty rate directors in Zimbabwe. of Commerce, Cairo University. He holds a PhD degree We Achieve this by from Manchester University, UK, and a Master's degree in • Developing professional competence of directors Public Administration from Carleton University, Canada. • Building a pipeline of capable directors Monica Mutsvangwa addresses delegates at the ICDZ awards ceremony. To Page S6 • Promoting research and development on the law and practice of corporate governance · Building a pipe- line of capable directors · • Representing directors' interests by lobbying and advocating on issues affecting directors • Providing a platform for networking and director- ship opportunities ICDZ Board Advisors Peter John Metcalfe Peter is the founder and currently the chairman of The Foundation for the Development of Africa (FDA) (NPC) and is regarded as an expert on issues effecting sustain- able development (including business) throughout Af- rica. As project quality assurance engineer, during the construction of a number of coal-driven power stations in South Africa (1970/80's), Peter was exposed to most trades and professions within the construction industry. This exposure was enhanced when Peter had to develop quality monitoring procedures used in the construction process. Furthermore, Peter designed quality procedures to be used in monitoring the construction processes of subsidised, low-cost housing resulted in Peter being re- quested to assist with the relocation of the Ga-Pila com- munity in the Limpopo Province. This massive relocation project, due to Anglo Plati- num mining expansion, provided Peter with unparallel expertise leading to successfully completing an inten- sive training session on Local Government Assessment at the CSIR – Pretoria in 1998. Peter now holds a title as an Accredited Assessor for the South African Business Excellence Foundation. This knowledge he now shares with others. In 1999, Peter es- tablished The Foundation for the Development of Africa (FDA) (NPC), a non-membership, private, (NPC) Not- for-profit Company actively involved with initiating and facilitating business and other processes conducive to sustainable development in Africa — with the empha- sis on sustainability! Peter's broad expertise has made him a well-known personality in Africa. His numerous television, radio and print media interviews as well as the number of high level conferences and events he has addressed, testifies to the respect he commands in the field of Africa affairs. Dr Debra Brown Debra Brown is the founder, President and chief executive of Governance Solutions Inc (GSI). Since founding GSI in 1991, Debra has developed it into a full service firm providing governance consulting, research, training and tools on both a customised organisational and public basis including on-line. Under Debra's leadership, GSI has developed and tested a comprehensive, principles-based governance system that has been adopted and adapted by award-win- ning, leading governance organisations including The Conference Board and BMO Financial Group (Bank of Montreal) in Canada's private sector, federal and provin- cial governments in the public sector, and numerous not- for-profit organisations and associations. It is also the foundation on which GSI created the programme and curriculum for the Directors College, and the Professional Director Certification Programme and other governance education and university accred- ited certification programs for the Health, Colleges and Universities, School Board and First Nations sectors. Currently, Debra serves on major international non-profit corporation boards, and has worked -in cor porate governance as far afield as Malaysia, Bahrain, In- donesia, Cuba and Guatemala. She is an acknowledged and sought-after thought leader in corporate governance, authoring over two dozen major research articles pub- lished in Canada and internationally, and editing Gover- nance Matters, the Canadian Co-operative Association's governance periodical. Debra holds a Doctorate in Min- istry and a Masters of Divinity from Gordon-Conwell Theological Seminary where she graduated magma cum laude. Dr Ashraf Gamal El Din Dr. Ashraf Gamal El Din is the chief executive of The Financial Gazette ICDZ INAUGURAL AWARDS SPECIAL FEATURE December 12-18 2019 | S6 ICDZ — an overview From Page S5 pursing Professional Director Certifica- ership from the University of South Africa outstanding role in the setting up of the Quality He further holds a Bachelors degree in tion with Professional Director Board in and obtained a Bachelor of Laws Honours Corporate Governance Centre (ZIMLEF) and initi- Business Administration from Cairo Uni- Canada. degree (LLBS) from the UZ. Mirirai has ator of drafting of the National code on Corporate versity with highest honor. received some awards in outstanding ad- Governance Zimbabwe Mirirai Apolo- vocate and legal leader cate- She serves on several boards and is the 2017 ICDZ board members nia Washaya -Vice The ICDZ offers high- gories. Zimbabwe Mentee for the prestigious Fortune 500 Phineas Bvaka - Chairperson Chairperson She is a member of the Law US State Department and Vital Voices Women's Phineas is a fellow of the Southern Af- Legal profes- ly-regarded profes- Society of Zimbabwe and Pro- Mentorship Programme. She holds a Bachelor of rica Association of Accountants. He also sional with over sional development fessional Executive Women Commerce (B.Comm/ LLB) from Rhodes Univer- holds a Diploma from the Institute of 20 yearsextensive programmes such as Pro- Entrepreneurs and Business sity in South Africa (Part fulfillment), an Honours Packaging (SA). experience 17 of fessional Director that Forum (PROWEB). degree in Law (LLB (S) HONS) from the Universi- He is also a Certified Forensic Accoun- which are in the provide flexible director ty of Zimbabwe, and a Master of Laws. tant Cr.FA with the Association of Certi- Zimbabwean finan- Cynthia T Mugwira fied Forensic Practitioners. cial services sector education and learning Cynthia is a lawyer by pro- Eckford Jere Professionally, he is an active Fellow including working opportunities. fession. Cynthia has over 10 Eckford is a versatile human resources, industri- member of the Institute of Corporate Di- collaborations with years experience in the cor- al relations and board leadership expert in a career rectors Zimbabwe and also the Institute legal professionals porate governance field, the spanning 29 years of progressive experience at con- of Corporate Governance Zimbabwe. in South Africa, Botswana, Zambia, Mo- corporate private and the Development sultancy, senior management and board levels. Phineas is a golfer and active member of zambique, Tanzania and Rwanda. sectors, and the United Nations. He holds several qualifications in human re- Institute of Golf Africa. Currently, he is She holds a Master's in Business Lead- She has received nominations for the sources, business leadership, corporate governance, industrial relations, a Master of rd Science in Stra- tegic Management Degree and he is in his third (3) year of earning a Doctor in Business Administration Degree (DBA) with Binary University of Malaysia. Eckford currently sits on boards of Zimbabwe Prisons and Correctional Services (Mashonaland Central Province) and the Institute of Human Re- sources Management in Zimbabwe (IHRMZ). At present he is Group Human Resources Execu- tive of a diversified and progressive regional group. Eckford has a passion for farming and is married to Mildred. The couple has three daughters, Natasha, Joyline and Monalisa.

Gilbert Eugene Peters He is the founder and CEO of Spidex Media Group and chairman of Gilcorp Group, an Invest- ment and holdings company with inter- ests in real estate, tech- We also offer a year- nology and round continuing educa- media. tion programme, where Gilbert Eu- members benefit from gene Peters is informal learning ses- ranked as one of the top 30 sions, networking events entrepreneurs and local chapter in Africa by support. Forbes Mag- azine and he has received multiple awards in business. He sits on various company boards and holds a Post grad Di- ploma in Strategic leadership and Corporate Gover- nance from the Midlands State University.

Ernest Nhandi (CIPS/EMBA/Msc/ ED- BL-ZIM) Ernest`s corporate experience stretches over 20 years in various executive positions in local and global blue chip organisations: Unilever, Total, Su- preme Global, Reckitt Benckiser, Kentucky Fried Chicken (KFC) and Cairns Foods . Ernest's cor- porate career spans Southern Africa, East Africa, North and the Middle East. He holds Chartered Institute of Procurement and Supply (CIPS) qualification from the UK, Execu- tive MBA, Master of Science in Procurement and Logistics & Executive Diploma in Business Leader- ship from the Zimbabwe Institute of Management. He is currently reading for a PHD in Business Leadership.

ICDZ members receive exclusive benefits that help them to perform their director role effectively and make an appropriate contribution in the board- room. The ICDZ offers highly-regarded professional development programmes such as Professional Di- rector that provide flexible director education and learning opportunities. We also offer a year-round continuing education programme, where members benefit from informal learning sessions, network- ing events and local chapter support. Members gain access to world class resources such as timely information on current and emerging governance issues and best practices, and the ICDZ Directors Register, a complimentary board match- ing and referral service. We also fulfill an important need that our mem- bers look to us to provide — a strong, unified voice for the director community. Through our advocacy, we represent directors and their interests, and develop thought leadership for and among our members. Hence our motto Better Directors, Better Boards, Better Business! For more information please contact the Ad- ministration Director on 0772236003/admin@icd. co.zw The Financial Gazette ICDZ INAUGURAL AWARDS SPECIAL FEATURE December 12-18 2019 | Page S7 ICDZ winners in pictures . . . Page S8 | December 12-18 2019 The Financial Gazette

Invest in quality brands: Mohadi

OCAL companies should invest and Mohadi said only strong and quality Paul Damasane, at the 2019 Superbrand “Strong brands culminate in a strong economy. come up with quality brands that brands last a lifetime and often at times are Annual awards ceremony held on Novem- When we as a country produce brands that are of Lboost the country’s economy through transgenerational. ber 29 in Harare, Mohadi encouraged the high standards, then our economy is strengthened improved exports, Vice President Kembo In a speech read on his behalf by the Per- business sector to come up with strong and through improved exports and foreign currency gen- Mohadi has said. manent Secretary in his office, Reverend competitive brands. eration,” he said. Mohadi said country’s social and economic de- velopment is reflected by its brands. “Strong and competitive brands result in im- proved livelihoods for everyone as they consume better products produced in the most competitive and efficient manner. “It is also worth noting that a country’s level of social and economic development can be reflected on its products and services. In actual fact, it is re- flected by its brands,” he said. He implored marketers to join hands with the government to ensure that Vision 2030 was achieved through reviving industries. “I urge you marketers and the business sector to collaborate with the government in ensuring that we together drive towards a common goal of ensuring that our country attains Vision 2030. “We will achieve this as a collective and not in an individualis- tic manner as we put more efforts to revive our industries. "Some of these ef- forts include address- ing issues of compet- itiveness and resource mobilisation,” said Paul Damasane Mohadi. Speaking on the Dubai 2020 Expo whose publicity committee is headed by the Marketers Association of Zimbabwe, Mohadi acknowledged the role played by the associ- ation as it provides strategic leadership of the Infor- mation and Publicity Committee. He said the expo represents the potential that can be achieved when meaningful collaborations and partnerships are forged. “Zimbabwean corporates in all sectors therefore will be missing a great opportunity if they do not take the wind and grab this opportunity to market themselves,” he said. He also applauded the Marketers Association of Zimbabwe for organising a key event which seeks to recognise and rewards brand excellence and at the same time celebrate brands that have established the finest reputation in their various fields. The 10th Superbrand Awards ceremony saw quite a number of surprise brands making it to the top. The Superbrand Awards were attended by over 500 business executives drawn from different sec- tors.

Kembo Mohadi The Financial Gazette 2019 superbranD COnGraTuLaTOrY aWarDs speCiaL FeaTure December 12-18 2019 | Page S9 Consumer brands dominate Superbrand 2019

uperbranD awards have earned a solid rep- utation as far as celebrating brand excellence is sconcerned. These awards, which were birthed in 2010, celebrate brands that go beyond excellence in service delivery and those that are top in the minds of the consumer. This year the awards took place on the Friday, no- vember 29, at the rainbow Towers in Harare. The co- lourful awards ceremony saw the organisers, the Mar- keters Association of Zimbabwe, adding more flair by adding red carpet and ballroom to the usual black tie theme. This not only changed the ambience but added colour and elegance to the revered business awards of the year. The superbrand awards this year also saw a para- digm shift from the traditional dominators mainly in the telecommunications and funeral assurance sectors to more consumer brands. Consumer brands were more dominant in the super- brand Awards this year, a reflection of the state of the economy and that consumers are now more focused on basic needs than other luxuries. The awards proved that investment in a brand can Eve Gadzikwa, adjudication committee chairperson Gillian Rusike, MAZ secretary-general actually impact consumer perceptions. results from the research are often reflective of the ever-changing consumer tastes and preferences. eve Gadzikwa, chairperson of the superbrand ad- judication Committee said the economy had become more consumer-oriented. “For the past year till now, we observed that most mentions were that of Fast Moving Consumer Goods (FMCG) because of the state of our economy which has become more consumer oriented. This is an indi- cation that it is those very basic goods which are leav- ing an impression in the mind of the consumer,” said Gadzikwa. she highlighted that some sectors like the Fuels and energy sector, power engineering and energy sector, electronic Media sector (TV), had also seen a drop in consumer ratings. “More luxury brands have continued to drop rank- ings due to shifts in availability, prices and consumer priorities. These movements are reflective of the pre- vailing consumer experiences as shaped by the prevail- ing economic challenge,” said Gadzikwa. The dominance by the consumer brands is also a sign that the custodians of the brands are pushing hard as evidenced by jingles, billboards, product innova- tions, rebranding and new products on the market. Mazoe by schweppes Zimbabwe was the overall superbrand Winner for the year 2019 and also was on pole position in the Top 20 business to Consumer brands. sometime last year, when schweppes Zimbabwe tweaked its recipe to lower sugar levels and do away with some ingredients in its Mazoe orange drinks, it faced a backlash from consumers. The consumers demanded that the original Mazoe Orange crush be brought back on the shelves. schweppes Zimbabwe highlighted that its new rec- ipe came amid global concerns that calories provided by sugar-sweetened beverages had very little nutrition- al value and contributed to obesity. in a few days, schweppes Zimbabwe succumbed to customer demands and promptly pulled the product off the shelves and pledged to bring back the original Mazoe taste. “The people have spoken, they want original Ma- zoe. and they want it soon. Original Mazoe is com- ing back”, schweppes Zimbabwe managing director Charles Msipa said. However, the company has maintained both the orig- inal Mazoe and the less sugar Mazoe on the shelves, a move that could have resulted in the consumers warm- ing up to the former. among the Top 20 business to Consumer winners were Mazoe, nyaradzo Funeral services, bakers inn bread, proton bread, Chicken inn, Zimgold Cooking Oil, Coca-Cola, TM pick n pay, pepsi, Lobel's bread, Doves, Dendairy milk, red seal roller meal, radio Zimbabwe, probrands rice, steward bank, Vaseline, pearlenta and Dstv in that order. For the Top 20 business to business brands, na- tional Foods came in as a surprise winner. in the past year, national Foods has come up with a number of new products among them, popticorn and instant por- ridge. econet which was overall superbrand 2018, was on second position , followed by Delta, netone, Dair- ibord, ecocash, CbZ Holdings, Old Mutual , Telone, Dendairy, probrands, seedco Zimbabwe, FbC bank, Cairns, star FM, First Mutual Health, steward bank, pOsb, Cimas and simbisa brands in that order. One critical element that makes superbrand authen- tic over a lot of awards is the fact that the process is consumer driven where the participating brands are chosen and rated by the consumers through a nation- wide consumer survey. Maz would like to congratulate all the winners and thank all the sponsors that made the event which at- tracted over 500 business executives, a success. Page S10 | December 12-18 2019 2019 SUPERBRAND CONGRATULATORY AWARDS SPECIAL FEATURE The Financial Gazette What is Superbrand? UPERBRAND is an international tory but wherever a brand touches the consumer. concept that has been adopted in Zim- The reputation and credibility of the Superbrand S babwe since 2009. awards lies in its process. Brands undergo a thorough It seeks to recognise and reward the best recruitment process by the consumers, followed by brands in the country, with the finest rep- consumer rating (through a consumer research) and utation within a specified period of time. then an evaluation by the Adjudication team. It aims to identify brands that are per- Only those brands with the highest scores from forming above and beyond others within the consumer research are granted the Superbrand the market. As a result, corporates and the title. community at large realise real economic The Research Process value from this noble concept. This year the Marketers Association of Zimbabwe A Superbrand offers customers and oth- (MAZ) Baseline Research department in conjunction er stakeholders’ significant emotional and with Select Research conducted a rigorous research tangible benefits over its competitors, con- process. The overall research process is as follows; sciously and subconsciously. For a brand to be deemed a Superbrand 1. The shortlisting of 200 brands — The it requires the consistent management of shortlisting of 200 brands for 2019 was done through the company’s values, beliefs and product a nationwide research and it was based on top-of- quality — not just at the head office or fac- mind brand awareness.

2. Unveiling of the brands. After the brand selection phase the top 200 selected brands are then unveiled at the Superbrand launch ceremony in May. Before the unveiling of the brands, the adjudica- tion committee has the chance to verify the shortlis- ting process and endorses the top brands of the year

3. Field Research — After the unveiling cere- mony, the 200 brands are taken back to the consum- ers for market research. Brands are ranked according to the following variables: For Business to Business: a. Number of spontaneous mentions b. Number of prompted mentions c. Perceived Market Dominance ratings d. Resilience ratings e. Goodwill ratings f. Customer Loyalty ratings g. Overall Market Acceptance ratings

And for Business to Consumer: a. Number of spontaneous mentions b. Number of prompted mentions c. Product / Service Experience ratings d. Product / Service Accessibility ratings e. Product / Service Pricing ratings f. Product or Service Loyalty ratings g. Product Innovation ratings

4. Adjudication of results — After the con- sumer research, the results are presented to the ad- judication committee for final verification and en- dorsements.

5. For 2019, our auditors were Grant Thorn- ton. The auditors work with us throughout the pro- cess right from the enlisting of the top 200 brands, field research, data capturing and final listing of the top 20 brands.

The 2019 Superbrand Research was nationwide covering all 10 provinces. Our target sample size was 3 000 (1 500 B2B & 1 500 B2C). We managed to do a total 2 963 interviews (1 497 B2C and 1 466 B2B). In the B2B category, sectors interviews ranged from Agriculture, Banking, Finance & Insurance, Education, Manufacturing Industry, Science Tech- nology & ICT, Security, Tourism and Hotel & Hos- pitality to Retail outlets. The Financial Gazette 2019 SUPERBRAND CONGRATULATORY AWARDS SPECIAL FEATURE December 12-18 2019 | Page S11 Superbrand winners in pictures . . . Page S12 | december 12-18 2019 2019 superbrand COnGraTuLaTOrY aWards speCiaL FeaTure The Financial Gazette Safeguard goes extra mile in promoting security

aFeGuard security continues to andrew Mallon safeguard group chief executive be the country’s top security brand, said his company seeks to continually go that extra s clinching this year's superbrand of mile in assisting its clients and combating crime. the Year award in the security sector for in a number of areas where there has been an the second year in a row. upsurge in crime, its rapid response teams regularly safeguard also this year won the patrol the area as a deterrent to would-be thieves. Megafest Outstanding security Company With the crime rate accelerating due to the diffi- of the Year award for the fourth time. cult economic environment, it offers regular advice The company received the award in to its clients on how to be more alert and security recognition of the world class security conscious. products and services it provides and the not only do its rapid response teams respond in- exceptional quality of its sales and after stantly to alarm signals but safeguard has an sOs sales service. app, which enables rapid response clients to notify safeguard places great emphasis on safeguard in the event of a security emergency or customer care and providing security any other emergency even when they are away from solutions to suit every client’s particular the home or office. circumstances. The app can be downloaded on a mobile phone. This has seen it winning numerous When the app is opened there is a choice of three awards, including the service excellence panic buttons, one for security, another for a med- award for the security sector last year ical emergency and yet another for other emergen- from the Contact Centre association of Safeguard clinched the Superbrand of the Year Award in the Security Sector for cies, such as a vehicle breakdown. Zimbabwe (CCaZ). the second year in a row. The app uses the latest geo-tracking technology to pinpoint the exact location of the client’s phone. in a medical emergency, safeguard’s partner- ship with ace air and ambulance ensures that its response customers are assured of top class ambu- lance services in Harare, bulawayo and Victoria Falls. With more than 47 years’ experience in the local security industry, the company has maintained its dominant position as an efficient security service provider by utilising modern up-to-date security systems and the latest security technology. Mallon said the security industry needs to con- stantly evolve to meet security challenges, includ- ing new crimes, many of which make use of new technology. “safeguard’s use of new technology, combined with our wealth of knowledge in the security indus- try has helped us keep ahead of the pack when it comes to security services. “We continue to strive for excellence in our work, as we endeavour to exceed our customers’ expectations,” he said. safeguard provides the Zimbabwe market with world class security solutions for residential, com- mercial, diplomatic, industrial, banking, school and mine premises, as well as for farms, holiday resorts and any other type of property. it has a well-experienced research and develop- ment team that keeps abreast with the world’s best security solutions and can tailor them to meet any organisation’s or individual’s requirements. The company’s security products and services include security guards, alarms, rapid response, guard dogs, cash-in-transit services, closed circuit television (CCTV) systems, CCTV monitoring, pri- vate investigations and guard dogs. safeguard also has an engineering division that specialises in physical security barriers such as electric gates and fences, burglar bars and Xpanda security gates, all of which can be customised to meet any client’s requirements. safeguard has the largest number of rapid re- sponse vehicles on the streets compared to any lo- cal security company. The vehicles are well-equipped and make use of Global positioning system (Gps) technology to enable the response teams to reach a client in an emergency in the shortest possible time. The company utilises the same technology to keep track of where its security guards are with- in the premises they are guarding as well as moni- tor its armoured vehicles that are used for the safe transportation of cash and other valuables such as jewellery or gold bullion. The armoured vehicles also have closed circuit television CCTV cameras inside and outside the ve- hicle for effective monitoring. safeguard provides CCTV cameras at some premises linked to its rapid response control centre to enable those manning the centre to see what is going on at protected premises when an alarm goes off. it also provides a CCTV monitoring service that enables it to provide reports not only on security breaches but on possibilities for improving opera- tional efficiency. safeguard’s investigations division provides various private investigations services, which in- clude investigating thefts and fraud within an or- ganisation, tracing missing persons as well as truth verification tests to verify the honesty of employ- ees, potential employees or suspects in a theft or fraud investigation. “We shall continue to invest in the latest securi- ty solutions for our customers in 2020 and beyond and hope that our efforts will contribute to the fight against crime,” Mallon said. The Financial Gazette 2019 superbranD COnGraTuLaTOrY aWarDs speCiaL FeaTure December 12-18 2019 | Page S13 2019 Superbrand winners' list

CrOp prODuCTiOn aGriCuLTuraL First Mutual Health MOTOr DeaLersHip seCTOr seCTOr Winner- sHOrT TerM insuranCe Winner- HOspiTaLiTY seCTOr Toyota Zimbabwe Winner- seed Co Zimbabwe Winner- Zimnat Holiday inn painTs seCTOr LiVesTOCK prODuCTiOn aGriCuLTuraL Winner- TeLeCOMs, inTerneT & DaTa ser- seCTOr LiFe assuranCe seCTOr nash paints ViCes seCTOr Winner- Winner- Winner- profeeds Old Mutual reTaiL superMarKeTs seCTOr econet Winner- banKinG seCTOr MininG seCTOr TM pick n pay TranspOrT anD LOGisTiCs seCTOr Winner- Winner- Winner- steward bank Zimplats saniTarY Wear seCTOr DHL Winner- beauTY anD HeaLTH seCTOr MOTOr aCCessOries & DisTribu- softex MOsT COnsisTenT branD Winner- TiOn seCTOr eversharp Vaseline Winner- seCuriTY seCTOr exide express Winner- OVeraLL superbranD Winner bOTTLeD WaTer seCTOr safeguard Mazoe Winner- bonaqua

Car Hire seCTOr Winner- impala Car rental

CLOTHinG & FasHiOn seCTOr Winner- Truworths

CeMenT COnsTruCTiOn seCTOr Winner- ppC

rOOFinG COnsTruCTiOn seCTOr Winner- Turnall Holdings

DaiLY prinT MeDia seCTOr Winner- The Herald

eLeCTrOniC MeDia (radio) seCTOr Winner- radio Zimbabwe

eLeCTrOniC MOneY TransFer seCTOr Winner- ecoCash

FMCG baKerY seCTOr Winner- bakers inn

FMCG COOKinG OiL seCTOr Winner- Zimgold Cooking Oil

FMCG DairY seCTOr Winner- Dendairy Milk

FMCG FasT FOOD seCTOr Winner- Chicken inn

FMCG FOOD Grains seCTOr Winner- red seal roller Meal

FMCG HOuseHOLD CLeaners & DeTerGenTs seCTOr Winner- sunlight Washing powder

FMCG nOn-aLCOHOLiC beVeraGes seCTOr Winner- Coca Cola

FMCG nOn-aLCOHOLiC COrDiaLs seCTOr Winner- Mazoe

FMCG spreaDs seCTOr Winner- buttercup Margarine

FueLs anD enerGY seCTOr Winner- Zuva petroleum

FuneraL assuranCe & serViCes seCTOr Winner- nyaradzo Funeral assurance

HeaLTH insuranCe seCTOr Winner- Page S14 | December 12-18 2019 The Financial Gazette

SAZ upholds high standards

HE Standards Association of Zimbabwe (SAZ) says it continues to observe the highest Tstandards in the country through the continual establishment of standards and the promotion of wide- spread usage. Eve Gadzikwa SAZ director general said it will foster establishment of affordable effective practices for both manufacturing and services sector including infrastruc- ture which is an integral part of the economy. During the Zimbabwe Standards Week in Victoria Falls recently, the standards body signed a memoran- dum of understanding (MoU) with the Quality Council of India to provide an operating framework on the areas of collaboration. “Quality Council of India and SAZ through this MoU desire to promote mutual interests and cooperation be- tween the two organisations. The intention is to outline the way the two parties will cooperate on the adoption of best practices in terms of quality, healthy and safe envi- ronment,” Gadzikwa said. “The scope of the MoU provides an operating frame- work to this intent on the areas of collaboration stip- ulated herein, focusing on promoting and enhancing capacities in all sectors of the economy such as phar- maceuticals, engineering, chemical and allied, plastic, agriculture, textile, furniture, spirits, beverages, scien- tific instruments and agro-processing among others,” Gadzikwa said. She said India’s story is a perfect example in encour- aging the adoption and implementation of national and international standards. Gadzikwa said although shareholders are benefiting the most from new innovations that come with the fourth Industrial Revolution, there are concerns over inequality and privacy breaches which mean that more investment of resources needs to be allocated to safeguard ethical issues facing businesses. She said businesses should learn to adapt to a ‘VUCA’ environment characterised by volatility, uncertainty, complexity and ambiguity. Quality Control of India director Mohit Singh said the agreement will help both countries develop an eco- system through sensitising industry and adoption of models similar to the Zero Effect-Zero Defect (ZED) model in India. Farai Mutambanengwe, the Small and Medium En- terprises Association of Zimbabwe (SMEAZ) executive officer, said SMEs are part and parcel of the transforma- tion of the economy although they lack of knowledge on standards. “SMEs are largely unaware of the massive value that can be derived from certification. In some sectors, SMEs are getting certified in “copycat” fashion,” he said. He said success stories from companies that went the certification route are not publicised to motivate others. “There is still a tendency to focus on large corpora- tions by the certifying bodies and organisations. There is need for a long-term strategy towards SME certifica- tion,” Mutambanegwe said.

SAZ director general Eve Gadzikwa and Quality Control of India director Mohit Singh after signing an MoU on quality standards. The Financial Gazette 2019 NAQA AWARDS SPECIAL FEATURE December 12-18 2019 | S15 Standards Week in pictures Page S16 | December 12-18 2019 2019 NAQA AWARDS SPECIAL FEATURE The Financial Gazette About the National Annual Quality Awards competition

HE aim of the awards is to recognise and appre- Categories ciate organisations and individuals who are con- The NAQA Awards provide for five categories of Ttributing to quality advancement in all sectors of awards. World Standards Day in pictures Zimbabwe, by having measurement and quality systems, In the first four categories, two awards per category procedures and processes that are in line with local, re- are available: gional and international practices and who use quali- •One for small and medium enterprises (SME) with ty advancement to support regional development and less than 100 employees, and growth. •One for organisations with more than 100 employ- Objectives ees- large enterprise (LE). •To recognise organisations that excels in continuous The fifth category is an individual award. quality improvement. Category 1: Company of the Year •To motivate organisations to adhere to proper quali- Two awards, SME and LE: awarded to a company or ty business norms. organisation that has pro-actively and effectively imple- •To encourage organisations to comply with local, mented quality principles. regional and international quality standards. Category 4: Exporter of the Year •To encourage application by organizations of the Two awards, SME and LE- awarded to a company or measurement tool kit, quality assurance, quality control organization that has made significant progress in com- and quality management systems. mencing or expanding exports to new or wider markets •To enhance understanding of quality principles, by introducing quality in their company. business methods and all national and Zimbabwe har- Category 5: Individual award for quality monised standards that promote competitiveness. This award is given to an individual that has made •To recognise individuals that excels in their contri- significant input into National Standards, Quality Assur- butions to the SQAM quality drive. ance, Accreditation and Metrology SQAM efforts. The Financial Gazette 2019 NAQA AWARDS SPECIAL FEATURE December 12-18 2019 | S17 Standards week in pictures Page S18 | December 12-18 2019 2019 NAQA AWARDS SPECIAL FEATURE The Financial Gazette NAQA awards a success HE Standards Association of Zimba- hance the competitiveness of the economy bwe recently held the National Annu- and to foster accountability. Tal Quality Awards (NAQA) meant to “We have to continuously prioritise recognise and appreciate organisations and effective leadership and sound corporate individuals who are contributing to quality governance as part of measures to ensure advancement in all sectors in Zimbabwe. that there is no misuse of public funds,” she Mildred Chiri, Auditor-General, who said. was the guest speaker during the 10th The Auditor-General also highlighted NAQA held in Victoria Falls challenged the importance of embracing quality stan- captains of industry to prioritise effective dards and anti-bribery management sys- leadership, accountability, and sound cor- tems as part of efforts to improve service porate governance. delivery. She reminded Zimbabwe’s business The exporter of the year award went to community of the need to prioritise effec- Schweppes Zimbabwe while Fidelity Life tive leadership and sound corporate gover- Assurance scooped the Service Company nance in line with the country's drive to en- of the Year Award. NAQA list of winners Company of the Year Large Enterprise(LE) Winner: Peace Security 1st Runner-up: Schweppes 2nd Runner-up: Nash Paints Company of the year (SME) Winner: Speedlink Cargo 1st Runner-up: Sign Aces Product of the year (LE) Turnall –Ravenna Tile Product of the year (SME) Winner: Beitbridge Juicing –Farm Style Tomato puree 1st Runner-up: Well pure 2nd Runner-up: Sign Aces Service of the year-LE Winner: Fidelity Life Assurance 1st Runner-up: Peace security Service of the year (SME) Winner: Sign Aces 1st Runner-up: Speedlink Cargo Exporter of the Year Schweppes Zimbabwe Limited Individual Award Winner: Tongai Chitiyo (Bitumen World) 1st Runner-up: Alexio Maseka 2nd Runner-up: Tinashe Mutarisi NAQA adjudication process HE aim of the National Annual The NSQAM subcommittee is a represen- Quality Awards (NAQA) is to en- tation of the arms of the SADC/SQAM Tcourage business excellence through structure. the sustained application of productivity The SADC SQAM arms are: and quality principles in large, medium ●SADCMET(SADC Corporation in and small-scale enterprises in Zimbabwe. Measurement Traceability) being repre- Furthermore, the competition can be sented by SIRDC-National Metrology In- used as a tool to provide structured and ro- stitute bust criteria upon which organizations can ●SADCSTAN (SADC Corporation carefully assess their quality achievements in Standardization) being represented by and successes as well as identify areas that SAZ need improvement. ●SADCMEL (SADC Corporation in The objectives of these awards are: legal Metrology-Ministry of Industry and •To recognise organisations that excel- Commerce-Trade Measures) sin continuous quality improvement. ●SADCTRLC (SADC Corporation in •To motivate organisations to adhere to Technical Regulation Liaison Committee proper quality business norms -MCAZ) •To encourage organisations to comply ●SADCA (SADC Cooperation in Ac- with local, regional and international qual- creditation) ity standards. Adjudication process •To encourage application by organi- The invitations for participation in the sations of the measurement toolkit, qual- National Quality Awards were announced ity assurance, quality control and quality in June 2019 and an advert was flighted management systems. in the print media. We have registered a •To enhance understanding of quality growth of submissions from last year’s en- principles, business methods and all na- tries.The five categories being considered tional harmonised standards that promote are: competitiveness 1.The Company of the year award •To recognise individuals that excel in 2. Product of the year Award their contributions to the Standardisation, 3. Service of the year Award Quality Assurance, Accreditation and Me- 4. Exporter of the year Award trology (SQAM) drive. 5. SADC/SQAM Individual of the Year The Awards started in 2011 and this Award year’s event is the 10th event. The win- The submissions went through a rigor- ners of this year’s event will automati- ous scrutiny by the SQAM sub-commit- cally represent the country in the highly tee. This year’s awards were open to all competitive Southern African Develop- companies regardless of accreditation or ment Community (SADC)Annual Quality certification. The process has been trans- Award to be held at a date and venue to be parent with contributions from the SQAM announced sub-committee being upheld in the decla- Adjudication committee ration of the winners. Winners were those The NAQA is organised by the Na- that had completed submissions and satis- tional SQAM sub-committee which con- fying the requirements and criteria for each stitutes the national quality infrastructure. category The Financial Gazette 2019 NAQA AWARDS SPECIAL FEATURE December 12-18 2019 | S19 SAZ signs MoU with CUZ, ARSO

HE Standards Association of Zimbabwe (SAZ) relationship will be key as we aim to ensure relevance recently signed a memorandum of understanding whilst we drive quality and innovativeness,” he said. T(MoU) with the Catholic University of Zimbabwe “We are committed to work with ARSOP and SAZ (CUZ) and the African Organisation for Standardisation in providing education on standards at the certificate, (ARSO) to provide an operating framework on the inclu- diploma, degree and post graduate levels, as outlined in sion of standards in the education curriculum. our MoU. We acknowledge that a key part of the work Eve Gadzikwa SAZ director general said the MoU will be to raise awareness to quality standards and de- seeks to provide a framework for collaboration between veloping the culture of embracing standards as this is the three parties in providing education on standards at critical in all areas of education and business.” certificate, diploma, degree and post graduate levels. The MoU will last for 20 years unless terminated by She said it is also meant to popularise and increase either party and may be renewed. the visibility of African Standards Day, Continental Es- SAZ is the national standards body whose mission is say Competition, and certified firms’ expos while en- to develop national standards and promote their use for trenching a culture of quality and standards in African socio-economic development. youth. The SAZ with over 60 years in standardization busi- “The background of SAZ-ARSO-CUZ signing this ness and conformity assessment delivers a broad range MoU today comes from the recognition by all parties of ISO based management training courses with clients of the importance of including standards and quali- CUZ vice chancellor Ranga Zinyemba (left), SAZ director general Eve from government ministries, parastatals, institutions of ty systems in whatever they do. Sustainable economic Gadzikwa (centre) and ARSO secretary general Hermogene Nsengimana during higher learning and private sector organisations. development and growth is linked to the application of the signing ceremony. standards and management systems that are based on standards,” Gadzikwa said. She said the Zimbabwe National Standardisation Strategy (ZNSS) ensures that standards make a national impact to gross domestic product, exports, imports and pertinent social issues. “The successful implementation of the ZNSS requires a wide awareness on standards and quality systems lead- ing to their effective implementation. The inclusion of standards in education curricular is one of ZNSS strate- gic actions to be implemented,” she said. Ranga Zinyemba CUZ vice chancellor said the new relationship is timely given the trends and current focus on Education 5.0. “We are moving beyond the traditional university that focuses on teaching, research and service to embrace innovation and industrialization. The focus of our new Page S20 | December 12-18 2019 The Financial Gazette

Megafest: Supporting Zim’s businesses EGAFEST Business Awards are held an- ever since and are supported through donations and important as they are meant to recognise and honour Zimbabwean economy. nually as a way of recognising, developing sponsorship. Since then several well-known busi- luminaries of the Zimbabwean industry as a whole, “We are also taking this opportunity to acknowledge the ser- Mand promoting professional business acu- ness people, managers and corporates in Zimbabwe for their outstanding contribution, exceptional efforts vices and duties carried out by the organisations and individuals men at all business levels. have been recipients of the premier and prestigious and achievements in their respective fields. in the industry as a whole.” These awards were introduced in 2008 as part of Megafest Awards. The vision is to recognise high “We believe the awards also encourage healthy The Awards were introduced to encourage the Zimbabwean Dr. Tafadzwa Matsika, CEO of Megafest Holdings', standards, service excellence and development with- competition among the Zimbabwean business peo- professional to continue improving in their areas of specialty. doctorate research and have been a common feature in the Zimbabwean economy. These awards are very ple and players with the aim of growth within the Business or industry awards must not be overlooked or forgot- ten, especially given the current economic climate where com- petition for new customers is fierce. Discovering appropriate awards for your company can be difficult, but using an outside source may help the process. Megafest is a premier awards com- pany. Awards can contribute to successful public recognition in the following manner: Visibility Awards can help garner a significant amount of visibility in a certain market or industry, and attract new customers, investors and donors by giving an organisation an edge over its compet- itors. Validate Awards speak volumes about a company’s products or ser- vices and substantiate their credibility. Even an award nomina- tion can be helpful because it validates a company’s leadership in its given market and proves it is ahead of the curve. Testimony Winning an award or even being nominated serves as testa- ment to a company’s work ethic, dedication and unique special- ty. New customers will likely consider a company or organisa- tion’s work over another if it has won an award. Furthermore, current customers may view the award as a good thing, rein- forcing their loyalty and willingness to share information about a product or service. Reputation An award can improve the perceived reputation of a compa- ny to the general public, new customers, donors, investors and the like. Recognition may transform a company’s reputation from “pretty good”, to excellent. Differentiate An award sets a company apart from competitors and differ- entiates the quality of its achievements and services from others. An award helps a company stand out for excellence over and above many other agencies and suppliers in the same industry. Given the contributions and impact awards can have on em- ployees, customers and the company itself, it can be important to make submission for awards a critical part of any marketing or public-relations plan. But, what makes the Megafest Awards unique? The simple virtue of our selection, is deemed to be the best. Everyone may not necessarily agree, but we come to know and separate being popular and being successful hence nominations of individuals is of paramount importance to us. We select our judges from a wide range of industries through our extensive network, and these over the years have helped to grow the brand. They function as mystery shoppers to avoid bias, and also invading of their professional roles. The Megafest Business Awards are an opportunity to shine and demonstrate that you are an outstanding Zimbabwean busi- ness. The Megafest Business Awards connect the nations’ business leaders through its annual ceremony and year-round thought leadership programme to celebrate enterprise excellence. • The award is a great opportunity to raise your profile within the management community, helping to accelerate your man- agement career as well as gaining recognition and acknowledg- ment for your skills. • It’s a great achievement, conferring tremendous prestige on the individual nominated as well as their company. • Taking part also offers a springboard to career progression. • This competition differs from other industry awards as it is designed and judged by the people who matter — the cus- tomers. • Creates a unique opportunity to challenge existing stereo- types, understand emerging trends and add value to organisa- tions aiming to commercialise and apply new and innovative concepts. • Crucial in unveiling the perception of the market concern- ing your organisation. • Disseminating information about your company to various stakeholders and is also a very effective promotional tool. • It is a continuous process that seeks to enhance personal and company image as it moves into the future. • Reassurance and reinforcement to stakeholders that they are dealing with a strong recognised up market company. • Attracts, retains and enhances a productive workforce. Ev- erybody wants to be associated with the best. The Financial Gazette 2019 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE December 12-18 2019 | Page S21 Qualities needed to win the Megafest Award

N individual is the sum total of Persistence is the willingness to push un- his/her personal attributes. You til there are results showing. Many peo- Acan tell who a person is by as- ple have great potential but lack the urge sessing how they behave in given circum- to push to the end. stances or situations. 3. Patience in tribulation – patience People are bound to be different hence can be defi ned as the capacity to tolerate there should never be an expectation that delay, trouble, or suffering without be- people will be the same one day. They coming angry or upset. In life one may may agree on one issue strongly but be at experience delays in getting what one a different tangent on a separate subject. needs, patience is important. Things may The differences that people have make not happen according to your own timing this world a wonderful place to be, it be- or your own thinking but one has to de- comes so colourful and pleasurable to velop tenacity to be solid, to hold on even stay in. when it does not make sense. 1. Pro-activity in situations – to be 4. Peace in the midst of turmoil – proactive is to be able to discern what When one is at peace they are free from needs to be done and then do it without disturbance, anxiety or stress. even waiting to consult and follow the Peace is contentment with what is. It red tape. does not mean the absence of turmoil. A proactive individual is preferred for One has to maintain their cool even if in leadership positions because sometimes the midst of chaos and threat of danger. you will not always have people to con- Peace is a mental state that one must sult over an idea. pursue. It therefore calls for one to master As a leader you will have situations the art of ensuring that nothing ever dis- when you have to create or control a sit- turbs the processes in the mind. uation rather than always having to re- 5. Personality that is pleasant – people spond to what has happened (reactionary who exude pleasant personalities create or reactivity). friends and network easily. 2. Persistence to the end – This is the These are people who know how to re- ability to be able to continue steadfastly late with other people. Roles that require at something in the midst of adversity and human interaction such as leadership, immense diffi culty. People who persist to customer care, sales, help desk and so on the end have a winning attitude, never require someone who is friendly. giving up because of impending failure. To Page S22 Page S22 | December12-18 2019 2019 megAfesT NorTherN regIoN AWArDs sPecIAl feATure The Financial Gazette Qualities needed to win the Megafest Award

From S21 Pleasant should nev- er be confused with weak. These people are friendly and yet firm on their convictions and beliefs. 6. Positive character at all times – No one ever wants to be close to people who are always negative. Positive thinkers look at the brighter side of life, the side of possi- bility, the side of hoping against hope. These are construc- tive, optimistic and con- fident people. A posi- tive person can easily attract a job or favour while a negative person looks on. 7. Professionalism and good work ethic – Professionalism is the competence or skill ex- pected of a professional. A professional who is guided by a set of moral principles will al- ways go far and beyond and ordinary person. When at work such an individual will not abuse company resourc- es such as time, financ- es and so on. If you lack in principles then any behaviour is acceptable to you. The Financial Gazette 2019 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE December 12-18 2019 | Page S23 Elite honoured at Megafest LITE Interiors has various manufacturing depart- ments, all focused on creating a quality and custom Emade Interior finish. Elite Interiors was founded by Design Director Nik- ki De Wet in 2006, after returning from studying Interior Design in Australia. Having established clients in the resi- dential, hospitality and banking industries, she put together a curtain and soft furnishings team to assist with various projects. Nikki and her sales team, after meeting and discussing the various requirements and specifications with customers, follow the production of the product(s) closely to ensure the customers exact requirements are met. Quality service delivery is Elite’s top priority and it is engrained in the work ethos. Elite Interiors combines an unwavering commitment to exceptional quality with styl- ish design and skillful manufacturing. It is a 100 percent proudly Zimbabwean. The team of carpenters, upholsterers and machinists all work closely under supervision, with decades of experience between them. Nikki and her team are proud to have worked on six Nikki de Wet and the Elite Interiors Zimbabwe team at the Megafest Northern Region Business Awards. hotel projects between 2011 and 2013. After 10 years of small scale manufacturing, Nikki found space to spread her creativity into larger scale man- ufacturing. With an intuitive eye for design and style, she pushes her team to manufacture more contemporary furniture and curtains on par with global trends and styles. Nikki is passionate about applying her creativity to the business world by manufacturing a quality product — giv- ing employment opportunities to the Zimbabwean people. The firm strives to become a leading Zimbabwean man- ufacturer in the furniture and design industry, by creating contemporary and diverse high quality products. It also provides an innovative and truly Zimbabwean manufactured product, affordable for everyone — while pushing the boundaries in the furniture, design and textile industry, in response to global trends. It supplies the retail industry as well as push our brand and product across the borders for export. Page S24 | December 12-18 2019 2019 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE The Financial Gazette Some of the 2019 Megafest Northern Region winners . . . The Financial Gazette 2019 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE December 12-18 2019 | S25 Northern Region Awards winners 2019

Sustainability Award of the Year Platinum winner: Nyaradzo Group Best Social Investment of the Year Platinum winner: Rawson Poperties Hardsound Pro-Audio wins Megafest award Innovative Organisation of the Year Silver winner: Car Track Zimbabwe HE world has gone digital and it takes sound industry through its locally assembled new product,” Rateyiwa said. Gold winner: Elite Interiors great skill and innovation for a brand to sound products. Hardsound Pro-Audio boasts of superior Platinum winner: Innovative Technologies Tstay relevant and ahead of the pack. Hard Of the company’s milestones and continued quality components and they get their plywood Manufacturer Award of the Year Sound Pro-Audio has defied odds through its growth, the sound giant’s managing director from Russia while their paint comes from Ger- Silver winner: Novafeed Animal Feeds market tested research and development acu- Ephraim Rateyiwa believes it is their regard for many. They are also the authorised distributors Gold winner: Country Feeds men in the sound industry. the client and continued market and technolog- FBT sound which they sold to sungura musi- Platinum winner: Roof Truss Design and Supplies The company which recently got the Busi- ical research that has set them apart. cian Alick Macheso back in 2013 and he con- Disruptive Organisation of the Year nessman of the year award under the Northern “We value our relationship with clients and tinues to enjoy its quality six years on. Silver winner: Hard Sound Region Megafest Business Awards has contin- we also make sure that we give them value for Rateyiwa also attributed the company’s Gold winner: Dariro Mode ued to break new ground through its unique and money. Where others ride on non-durable prod- success to team work and singled out his fellow Platinum winner: Shift Engage globally competitive products lines. uct lines to keep in business, we always make partners Luckson Jojo and Pacival Mukuchura Customer Focused Organisation of the Year The Megafest Business Award follows yet sure that are products last the distance. for their commitment to the Hardsound brand. Gold winner: Genking Power Services another milestone where the company won big If you were to buy a sound product say in The two sound engineers together with Rat- Platinum winner: Pavcon Construction at the Media Tech Africa sound quality pre- South Africa where they have a mass market eyiwa have also attended international trainings Professional Service Award sentation in South Africa in August this year. importing cheap Chinese products, the likeli- on sound in countries like Italy and Germany Gold winner: Cresta Hotels Hardsound Pro-Audio had to shrug off compe- hood of you getting spare parts or repairs done which sets them apart from fly by night sound Award of Excellence of the Year tition from Chinese and European players in the is next to zero and at best they ask you to buy a engineers. Gold winner: Safel Insurance Platinum winner: Nash Paints Educational Leader of the Year Silver winner: Sister Kudzai Mutsure (Dominican Convent) Gold winner: Dr Eurita Nyamanhare (Belvedere Teachers College) Platinum winner: Dr Maria Tsvere (Chinhoyi University of Technology) Enterprising Woman of the Year Silver winner: Nester Makate (Victory Travel & Tours) Gold winner: Rudo Kumirai (Helena Schools) Platinum winner: Georgina Chirume (Lusama Fashions) Platinum winner: Saliwe Mutetwa – Zakariya (Talia women's Network) Business Transformation Leader of the Year Silver winner: Pascal Musavaya (Hilmax Engineering) Gold winner: Panganai Sithole (Zimbabwe Energy Council) Platinum winner: Eddington Mazambani (ZERA) Business Vanguard of the Year Silver winner:Josephine Takundwa (Earthlink Technologies) Gold winner: Mandas Marikanda (Women's Microfinance Bank) Gold winner: Denias Zaranyika (Seed Co Zimbabwe) Platinum winner: Admore Kandlela (POSB) Entrepreneur of the Year Silver winner: Joyce Chimanye (Zuvva Fashions) Gold winner: Paul Hundermark (Kitchen Krazy) Gold winner: Emmanuel Nyika (Truss Design and Supplies) Platinum winner: Richard Muchaka (kitchen Link) Outstanding Business Personalities of the Year Silver winner: Blessing Musoni (Crystal Branding) Silver winner: Tapiwa Mubonesi (Pot Value Walling) Gold winner: Rachael Gashirai (Right Turn Travel) Strategic Leader of the Year Platinum winner: Tendai Chisi (Fastjet) Young Executive of the Year Gold winner: Thando Kembo (CIMAS) Platinum winner: Anga Moyo (Chapman Chartered Accountants) Female Executive of the Year Silver winner: Lydia Madyirapanze (Forum for African Women Educationists Zimbabwe) Gold winner: Loice Ngulube (POSB) Platinum winner: Sheila Muzavazi (Zuva Petroleum) Female Director of the Year Platinum winner: Josephine Matambo (PKF Chartered Accountants) Director of the Year Platinum winner: Brett Mead (Shift Engage) Manager of the Year Gold winner: Richard Cooper (Natural Air) Platinum winner: Edgar Makore (PSMAS) CFO of the Year Silver winner: Pamela Shamuyarira (ShelterSol Finance) Gold winner: Kuda Musundire (TelOne) Platinum winner: Victor Chaipa (Premier Service Medical Investments) CEO of the Year Silver winner: Benson Jagada (Chase Constructors) Gold winner: Herbert Zumbika (Duraro of Zimbabwe) Platinum winner: Vikash Agarwal (Pure Oil) Businesswoman of the Year Gold winner: Ottilia C. Murasi (OCM Quantity Surveyors) Gold winner:Tokyo Mateke (Maranatha Preparatory School) Platinum winner: Nikki de Wet (Elite Interiors) The Financial Gazette TRS 12TH ANNIVERSARY SPECIAL FEATURE December 12-18 2019 | S26

TRS: Going beyond insights to provide wisdom OPLINE Research Solutions (TRS) last • Advertising effectiveness testing; cepts); (ZAMPS) week celebrated its 12th anniversary at a • Brand Health Checks (BHCs); • Customer Experience (CX) Monitoring • Graduate Tracer Studies. Tglamorous ceremony at Cresta Lodge in • Customer and Stakeholder Satisfaction sur- (Mystery Shopping); TRS conducts research for four business sectors: Harare. veys; • Programme Monitoring and Evaluation • Services Sector (financial services, telecoms, retail, Established in 2007 before commencing op- • Innovation Testing (concept, product, pack- (M&Es); media etc); erations in 2009, TRS has provided the Zimba- ets etc) • Market segmentation and customer profiling • Public Service Sector (government departments, NGOs bwean market with a number of researches that • Usage and Attitude (U&As) surveys. studies; and municipalities); include: • Shopper Behaviour Research (in-store inter- • Zimbabwe All Media & Products Surveys • Research Sector (Global and regional research agen- cies, universities etc) and • Fast Moving Consumer Goods (FMCG) Sector. Vision To be the preferred world class African research consul- tancy Mission To provide complete, correct and clear understanding of African markets (Africa Passport). Values Excellence, professionalism, growth and genuine en- gagement of all people. TRS was co-founded by two brothers Patson and Shadreck Gasura. “As a consultancy in many cases we go beyond insights and provide wisdom to our clients so that they are the first to understand customer motives and likely future moves. In the prevailing environment, being able to predict consumer or shopper behaviour is imperative,” Patson Gasura, TRS, managing director and customer happiness director said. “As many organisations would say, TRS started from humble beginnings, with two full time staff members, the founding managing director Patson Gasura and its first re- search manager Tariro Chitiyo. The business gradually grew to employ 15 full time staff and more than 150 part-time field officers nationally. “Growth is a key value that TRS lives as many of the ex- isting and ex-staff members would testify. The most senior Celebrating 12 years managers at TRS today started their research careers at TRS where they joined as student interns while still at universi- ties. TRS already has a number of professionals who have migrated to be TRS clients in various sectors. It’s a strategy to recruit new clients via former TRS staff,”he added. of Excellence in Africa Among TRS' key strengths, are building a strong reputa- tion around the following elements. • Regional stature (do research projects in the SADC OUR SERVICES region); • High profile and happy client database; • Advertising effectiveness testing; • High profile, dedicated and engaged staff (expertise); • Brand Health Checks (BHCs); • Bankable insights reputation and • Industry accredited strategic leadership (industry re- • Customer & Stakeholder Satisfaction surveys; spect). • Innovation Testing( concept, product, pack tests etc) “A big part of our story is however, embedded in what our clients have to say. Africa is our inspiration. We are carv- • Usage & Attitude (U&As) surveys. ing the road map to unlocking the treasure within Africa. • Shopper Behavior Research (in-store intercepts); Therefore, Africa is our mission.” To guarantee sustainable profitable growth TRS is in the • Customer Experience (CX) Monitoring (Mystery Shopping); process of setting up a board of directors, expected to be • Program Monitoring and Evaluation (M&Es); fully constituted before the end of 2020. “We continue to be on the ground in terms of tapping • Market segmentation & customer profiling studies; into modern research techniques by tapping into best prac- tice as defined by leading global research organisations. • Zimbabwe All Media & Products Surveys (ZAMPS) "We have also built strong partnerships throughout Afri- • Graduate Tracer Studies. ca because we discovered that collaborations extend an or- ganisation’s influence and they constantly expose us to more than we would have ever accomplished on our own. "We look forward to serving your organisations in one OUR INSIGHTS way or another, we believe that together we will go further We provide insights that guide customer recruitment & retention strategies to drive in reconnecting with our beloved country,” he said. profitable growth.

• Consumer insights - identify typical customers in terms needs, demos & psychographies. • Product insights - How are you or your product perceived compared to the competition. • Communication insights - Best ways of communicating with your customers.

For more information on research enquiries please call us on +263 4 757958/9 and ask for any of our Sector Heads or email vimbai@toplineres. com or [email protected] or visit our website www.topliners.co.za Patson Gasura The Financial Gazette TRS 12TH ANNIVERSARY SPECIAL FEATURE December 12-18 2019 | Page S27

TRS anniversary celebrations in pictures . . . The Financial Gazette TRS 12TH ANNIVERSARY SPECIAL FEATURE December 12-18 2019 | S28 What our clients are saying Topline Research Solutions has “…. We have always been very “On one of the yoghurt usage and “Topline Research Solutions has conducted a number of research impressed with the articulation and the attitude surveys, Patson Gasura, the done excellent work for us, specifical- “ studies for Sanlam. We are im- quality of the work done by TRS, pro- Head of TRS, and his team were able ly in SADC countries, Namibia and pressed with their research expertise active communication and commitment to add value by being on the ground in Botswana… The work they did was and very satisfied with the quality to agreed timelines….” Marketing Angola and Mozambique from where quite specific and important and …led of the work……met the objectives executive, Lobel’s Bread, 2016. they gleaned trade insights from their to the renaming of our business …” and provided us with valuable in- observation which enlightened the Manager: Research & Segmentation sights……”, Head: Client & Market Danone team during presentations,” Customer Experience, Mutual & Insights, Sanlam, South Africa 2019. Strategy & Insights Manager, Da- Federal, 2015. none, 2017.

“My team and I are completely “Nudge has outsourced fieldwork “We are generally impressed with satisfied with the services provided by in Southern Africa to Topline Research the professionalism of the TRS team in TRS, the team enthusiasm as well as Solutions. Every time we have been terms of meeting deadlines, presenta- general conduct in discharging their very impressed …the excellent commu- tion of insights as well as quality of duties,” Principal director, Dpt of nication … Several projects have been deliverables in general……”, Director Public Affairs & Knowledge Man- logistically challenging and intensive general, Postal & Telecommunica- agement, Office of the President & …Even these were handled compe- tions Regulatory Authority of Zimba- Cabinet (OPC), Zimbabwe 2018. tently and professionally,” Research bwe (POTRAZ), 2019. Director, Nudge, 2016. The Financial Gazette 2019 HOLIDAY SPECIAL FEATURE December 12-18 2019 | S29

Top Travel Tips for Victoria Falls ICTORIA FALLS is a major tour- es will gladly arrange activities on arrival ist destination in Southern Africa, for you, however, booking in advance is Vparticularly outdoors and adrena- recommended to ensure availability on el- line activities. ephant-back safaris as these are often fully It's also one of the most important hubs for booked. overland tours and day trips. ring the kids: Victoria Falls is a top Choosing sides: the Zambian side of choice for a family holiday: there's plenty the Zambezi River has a wider selection of to keep everyone entertained plus a good accommodation and activities while across selection of kid-friendly accommodation in Zimbabwe you’ll be rewarded with im- ranging from large resorts to private 2- and pressive views of the Main Falls. 4-bedroom villas. Whichever country you choose to stay Go for tea: for around a century, ce- in, we'd recommend budgeting enough lebrities and royalty alike have enjoyed time to visit both sides of the Falls for the high tea at the elegant Victoria Falls Hotel. full experience. Expect white-gloved waiters, expansive Plenty to do: Victoria Falls has long lawns and manicured gardens; the spray been Africa's adventure capital; popular ac- from the Falls provides the scenic back- tivities include scenic flights over the falls drop. in helicopters or micro lights, white-water Sundowner stop: the riverside deck at rafting (seasonal), elephant-back safaris the Royal Livingstone in Zambian is the and day trips to Chobe National Park. most popular spot to sip cocktails and toast Do not miss out: most hotels or lodg- the sunset.-go2africa Page S30 | December 12-18 2019 The Financial Gazette

CEO Africa Roundtable Awards: Unleashing potential in a tough, challenging environment

EO Africa Roundtable hosted a dazzling chief executives and senior executives in both 29 at CEO Africa Roundtable Annual Dinner at the award sponsors who are Netone, Boltgas Engineer- black-tie annual dinner and awards cer- the public and private sector. Cresta Lodge in Msasa, Harare. ing, Rawson properties, Metbank, Big Cool and Mush- Cemony to celebrate the achievements of The Awards were presented on November CEO Africa Roundtable is highly grateful to oriwapasi Corporate Attorneys and media partners who include The Financial Gazette, Business Times, Zimba- bwe Independent, ZiFM Stereo, Daily News and Brand Motive. CEO Africa Roundtable is also grateful to Top Line Research Solutions which was the research partner for the event. Top Line Research Solutions is a Pan-African business consultancy specialising in marketing, research and social research. The annual dinner ceremony was graced by powerful speakers who included speaker of Parliament Advocate Jacob Mudenda, TN Holdings chief executive Tawanda Nyambirai and Founder of Celebration International Min- istries Pastor Tom Deuschle. Pastor Deuschle called on stakeholders to take charge as the leaders of the nation as he gave a brief synopsis of Zimbabwe’s socio-economic environment. Advocate Mudenda’s keynote address focused on un- leashing potential in an economically-challenging and transforming economy and he said “peace, security, good governance and social cohesion are prerequisites for the prosperity and the economy to unleash its full potential”. Guest speaker Nyambirai highlighted the business ex- periences of 2019 and also gave a perspective on 2020 and he alluded to the fact that “you cannot fight with mar- ket forces and succeed because the nation is competing with competitive global characters” The much-coveted CEO of the Year award, which was sponsored by CEO Africa Roundtable, was won by TelOne CEO Chipo Mtasa. Under Mtasa’s stewardship, TelOne continues to be a leading multi-service media company that connects busi- ness and people. The award, therefore, honoured the CEO for being strategic and exceptional. Nyanga-based Montclair Hotel sponsored the En- trepreneurial CEO of the Year award, which recognised the CEO who has not only been resilient in the obtaining economic environment, but who has been growing and visible as well. Mandas Marikanda, Zimbabwe Women’s Bank CEO was the second runner-up. She was recognised for a ster- ling job in catapulting the bank to greater heights. United Refineries Limited CEO Busisa Moyo, whose organisation has grown in leaps and bounds, was the first runner-up. NetOne CEO Lazarus Muchenje was the ultimate win- ner in the category owing to his dynamic leadership. The Innovative CEO of the Year award — the third award — was sponsored by Elephant Hills Resort, Vic- toria Falls. Never Ncube, the CEO of Dandemutande Invest- ments, a licensed Internet access provider was the second runner-up in this category Ncube has more than 24 years’ experience in corporate strategy, corporate governance, secretarial duties, finan- cial accounting, treasury and internal audit. Proton Bakers Managing Director Gerry Tselentis was the first runner-up. The company specialises in bread and confectionaries. The award was won by Lance Mambondiani, Ban- cABC Zimbabwe managing director, and the former chief executive of Steward Bank. Mambondiani has extensive experience in the banking sector having worked for various financial institutions lo- cally and globally. The late Simon Chapereka, former Fidelity Life Assur- ance managing director; Philip Mataranyika, chief execu- tive of Nyaradzo; and Divine Ndhlukula, chief executive of Securico, were inducted into the business leaders’ Hall of Fame by CEO Africa Roundtable. The honour recognises business leaders who have made outstanding contributions to business and industry through years of dedication and hard work. They also would have created jobs, economic growth and inspired their peers. Delegates at the annual dinner were entertained by Rute Mbangwa, a female jazz musician. The Financial Gazette CEO AFRICA ROUNDTABLE AwARDs spECIAL FEATURE December 12-18 2019 | Page S31 CEO Africa Roundtable launches women business leadership initiative EO Africa Roundtable (CEO- ART) launched the women C Business Leaders Roundtable on August 1, 2019 under theme, "The Future is now: pragmatic and Coura- geous Leadership." The women Business Leaders Roundtable is meant to provide a platform to unleash progressive and resourceful women through business, networks and exposure. The women Business Leaders Roundtable targets women chief ex- ecutives, senior executives and en- trepreneurs across all sectors with the initiative to empower and create a community of leaders in both busi- ness and public arena. speaking at the launch of the Oswell Binha women’s Roundtable CEOART board member Eve Gadzikwa called women business owners to grow on productive women to manage their business by linking them with their resources and utilise combi- experienced and influential business nation of four factors which include leaders. time, energy, attention and resourc- Dr solomon Guramatunhu of es. Optinova Eye Care specialists called Giving his remarks CEOART for the provision of more spaces for chairman Oswell Binha gave his as- the women in business where they surance that the organisation will put can find support and encouragement more effort in ensuring that they are to pursue their dreams also save as structured mentoring programme for an inspiration to other women. all women in business. The inaugural women Business The women in Business Mentor- Leaders Roundtable will take place ship programmes will be tailored in Victoria Falls on March 20, at the for small business owners or oper- CEOART Annual Roundtable 2020. ators who draw most their income In June next year, CEOART will from business and are committed to host a women Business Leaders win- growing their business and achieving ter school in the spirit of women em- commercial success. powerment and providing a unique The envisaged Mentorship pro- platform for women in business to be grams will also mentor upcoming productive. Page S32 | December 12-18 2019 CEO AFRICA ROUNDTABLE AwARDs spECIAL FEATURE The Financial Gazette The Financial Gazette CEO AFRICA ROUNDTABLE AwARDs spECIAL FEATURE December 12-18 2019 | Page S33 CEO Africa Roundtable signs MoU with Africa University

EO Africa Roundtable (CEOART) for operationalising creative collabo- President supports CEOART signed a memorandum of under- rations between the university and the C standing (MoU) with Africa Uni- industry in order to develop innovative versity to jointly develop, host and facili- approaches to economic growth and in- engagement programmes tate executive training programmes which dustry competitiveness. will provide a distinctive opportunity for The MoU through these executive pro- REsIDENT Emmerson Mnangagwa has exchange of ideas among senior execu- grammes will support the development pledged his support for CEO Africa Round- tives who are members of the CEOART. of innovative industries and increase p table (CEOART) external engagements. Under this agreement CEOART with Africa’s Trade capabilities and promote In a closed meeting with CEOART board mem- its own capacity will mobilise senior growth of an educated work force. bers, on October 2, 2019, Mnangagwa embraced executives from both the public and the The current dynamic business environ- CEOART Investment and Trade Mission to the private sector to enrol into training pro- ment and its challenges proves a compel- United states of America which will be in Jan- grammes and the executive development ling case for CEOs and senior executives uary 2020. courses. to acquire relevant skills to creatively ex- The UsA Trade and Investment Mission's major Africa University will package train- Kipson Gundani plore new ways to sustain , drive growth purpose is to explore new technologies, emerging ing needs of CEOs and other managers and competitiveness in their organisa- business ideas in the first world as well as scout and develop tailor made Executive De- enrol the first batch of students for the tions. for technology transfer opportunities in a number velopment programmes. programmes from CEOs and senior exec- In this respect, the Executive Develop- of sectors. These joint programmes will restruc- utives who will be attending the Annual ment programmes strives to shape future One of the missions which got a thumbs up ture economies in Africa through human Roundtable scheduled for March 18-21 responsible Executives with the capabil- is the mission to the Middle East which aimed capital development targeting senior ex- 2020. ity, capacity and agility to take their or- at unlocking trade opportunities and attracting in- ecutives. Africa University Vice Chancellor ganisations to higher levels of growth and vestments from UAE. Kipson Gundani CEOART chief ex- professor Munashe Furusa said the success in a globalised economy. In support of the president’s engagement and ecutive said his organisation aims to MuU provides an integrated framework re-engagement efforts, part of the delegation from CEOART accompanied the president to the 5th Global Forum hosted by Dubai Chamber of Com- merce running under the theme scale Up Africa Mnangagwa called on CEOART to bring togeth- er more chief executives and senior executives to speak positively about Zimbabwe. He urged CEOART to intensify its external pro- grammes and engage with the external business community for the development of the country. CEOART reminded the president of the need to expedite economic reforms, ensure that the right environment is created, to remain alive to the pres- ent day challenges and to embark on more solu- tion-oriented actions. During the meeting, CEOART affirmed the president’s pledge at the 2018 Annual Roundtable to open Chancellor Avenue as a clear demonstra- tion of opening our society to engagement and breaking the barriers that divide the nation. The CEOART is a high level platform for cor- porate chief executives and senior executives, in both public and private sector, created to advance economic development across Africa. The Roundtable therefore aims to provide a wide range of packages which include researched data, synergies, investment facilitation, business and investment profiling.

The 2019 CEOART award winners pose for a group photo. CEO Africa Roundtable supports Cyclone Idai victims YCLONE Idai is one of the deadliest storms on record in the southern hemisphere. It C struck south East Africa causing massive devastation and flooding in Zimbabwe, Mozam- bique and Malawi. Cyclone Idai caused catastrophic damage in Zimbabwe leaving people dead and many more missing. Thousands of classrooms were damaged or de- stroyed and half a million children have had their education disrupted and this included at Muvuti primary school located in Masvingo. The cyclone struck Muvuti primary school leaving it with damaged infrastructure including classrooms, toilets, water sources and learning materials and many schools were forced to close prematurely Following the loss of lives as well as the de- struction of property and homes in Manicaland, Masvingo and Mashonaland East province, Ceo Africa Roundtable objective was to improve san- itation and general hygiene for the children at the school in line with Millennium Development goals which is to ensure that people have appropriate sanitation and hygiene. Ceo Africa Roundtable hosted a golf tour- nament this year to raise funds to build a better toilet system for the children at Muvuti primary school who were at risk of water borne disease such as cholera and typhoid as they had resorted to the bush system. Page S34 | December 12-18 2019 The Financial Gazette The Financial Gazette December 12-18 2019 | Page S35 Page S36 | December 12-18 2019 SPECIAL FEATURE The Financial Gazette Zimbabwe has failed: Part II Paddington Masamha open for business” let the government attitude towards its own citizens, local HE previous article signalled the businesses, entrepreneurs and existing economic environment in which foreign investors be accommodative and TZimbabwean labour is surviving be pro-growth. If Zimbabwean policies in. Basically, the employment income cannot be ‘open’ to its own population, has become so insignificant to sustain what guarantee exists that it will be open the material well-being of the working to foreigners? population. The cheap propaganda of labelling Like all citizenry, unions and their citizens as ‘enemies of the state, local members were promised the prosperity businesses as saboteurs and foreign in- carrots but the pledges have not mate- vestors as resource plunderers’ is an rialised. As a result, the Zimbabwean untenable route. Holistically, a change labour market has been going through a of attitude implies acceptance of policy tough phase. failures and devising means to circum- The year 2019 will be remembered in vent the labour challenges. Zimbabwean history as one of the years Zimbabwean leadership essential- when the economic shrinkage was rather ly ought to appreciate that an economy too rapid and out of control. Unforgetta- whose labour resources has no confi- ble is the January fuel price protests, the dence in the leadership and their con- regular fuel price increases by ZERA, comitant policies is destined for econom- the deterioration of the health sector, ic doom and gloom. the regular power cuts, the February 20 A change in government attitude will currency changes and the concomitant help resolve the prolonged labour dis- statutory instruments which re-birthed pute, help attract investments or private the Zimbabwean dollar. partnerships (e.g. HLF) who are willing For instance, Statutory Instrument to fund public sector development ini- (SI) 142 of 2019 established the legal tiatives and thus further create potential regulations of “Zimbabwe dollar to be employment opportunities. the sole currency for legal tender purpos- The majority of striking doctors have vowed not to return to work until government deals with their grievances. A great investment haven is gener- es” as read in section 1. SI 142 of 2019 ally gauged by the extent to which an Section 2 subsection (1) stated that “… economy takes care of its own factors of with effect from the 24th June, 2019, production. the British pound, United States dollar, Zimbabwe already has a contested South African rand, Botswana pula and land issue, the labour resources perceive any other foreign currency whatsoev- that they are being exploited, capital is er shall no longer be legal tender…” limited and entrepreneurs are oftentimes This officially marked the death of the treated as ‘enemies of the state/sabo- multi-currency system. teurs.’ Such economic polarization is bad The currency pronouncement was for investments both local and foreign. purely an official acceptance by the Long gone is a time period when monetary and fiscal authorities that the government used to view unions as hos- currency regime at that time was no lon- tile institutions but today’s modern view ger practicable. Though the boiling pot of labour bodies is that of being develop- lead had been opened in the February 20 ment incubators. Unions can mobilise re- 2019 monetory policy statement, some sources to establish retail outlets, health foreign currency transactions were still care facilities, recreation and leisure fa- existent. cilities which can help reduce unemploy- For instance, employees employed ment statistics. in some sectors such as banking, health, Unions which evolve from being tourism and education, among others, mere employee bodies to economic were receiving foreign currency cush- development pivots are only nurtured ioning allowances. The coming up of through symbiotic relationships between SI 142 of 2019 slaughtered such labour unions and government. havens. The role of government is to provide The market reaction to such a drastic such a visionary direction and a platform policy stance was the various letters of for unions to evolve from being antag- incapacitation which flooded the labour onistic institutions to becoming govern- market. On August 14, the Zimbabwe ment development partners. Hospital Doctors Association (ZHDA) Teachers protesting against poor salaries This only comes if the political declared incapacitation of its members leadership is viewing labour grievanc- due to poor salaries. The association of some bank workers threatening to doctors (in the midst of an ailing health and capital as factors of production need es holistically and re-aligning national lamented the fact that its members were only come to work ‘as and when they sector) is not only ruinous but a national labour. Even politicians themselves ful- policies in such a manner that labour re- “struggling to meet the costs of ba- have transport fares’ and some resorting disaster. ly appreciate that votes are won through sources flourish through the creation of sic needs in food, shelter, clothing and to ‘sleeping at work’ were enumerated. The doctors have been adamant that winning the hearts of a nation’s labour ‘development lead unionism’. healthcare.” Further communications Although having minimal media the salary demands and working con- resources. The bedrock to Zimbabwean eco- later cited the poor ergonomics which coverage, the market observation of pri- ditions be improved. Just recently, they It is therefore politically suicidal to nomic recovery is largely premised on the skilled professionals labelled as death vate sector employed labour exudes evi- unanimously agreed not to accept the engage in militant and repressive indus- the extent to which the nation makes traps. dence of widespread labour unrest. This HLF financial offer. trial relations. If government sets the progress towards reducing the political The declaration of worker incapaci- has mainly been triggered by the fact The basic fundamental argument be- tone of being confrontational and ag- polarisation. The economic will to solve tation later on became nation wide. For that the majority of national employment ing the short-term nature of the proposed gressive, a wrong precedence of conflict the currency instability and end the cur- instance, lecturers from the major state councils negotiated salary increments in cost of living cushioning package. Addi- resolution is set and indirectly private rency crisis cannot be over-emphasized. universities such as Lupane University, various economic segments have been tionally, the 48 hour moratorium given sector growth is constrained given that Having an economy whose foreign Midlands State University and the Uni- paltry and quickly eroded by inflation by the President after the intervention of some private sector operations depend currency supply is largely black mar- versity of Zimbabwe chronicled their in- before workers could enjoy the salary the Catholic bishops has been negated. on government operations and activity. kets is unfathomable and needs an ur- capacitation. Later on, National Univer- augmentations. Given the public evidence on the In an economy where inflation sta- gent solution. Before we even rush to sity of Science and Technology (NUST) Just to provide stop-gap-measures ground which indicates that the Zim- tistics have grossly been unfavourable, talk about optimistic economic growth was in the public press for a lecturers’ to solve the prolonged doctors’ strike, babwean government has previous- no sane government official engages in rates, the Zimbabwean economy needs strike and the attendant student demon- private sector organisations and individ- ly played to the gallery following the labour relations practices which force to stabilize. The year 2019 is bad for our strations. uals have proffered some solutions to the March 2019 health sector challenges, it its employees to accept measly salaries history. Government civil servants (particu- brewing public health disaster. For in- is fair to conclude that the medical doc- and working in hazardous work environ- Zimbabwe needs a leadership which larly teachers) also joined the incapac- stance; the Go Fund Me initiatives spear- tors association’s decision is rational. ments. Basically, the confrontational ap- walks the talk. So much has been talk- itation bandwagon. In the most recent headed by Zimbabweans particularly in Furthermore, a mere public press proach is counter-productive and needs ed about ending corruption, cronyism case, government has been battling to the diaspora has been noticeable. Free- statement without a written offer cannot urgent transformation. Doctors are pro- and nepotism but the scourges remain resolve the local council nurses salary man Chari (who on record spearheaded be legally binding. Let us also not forget fessionals that are not easily replaceable. endemic. One great leader once said, ‘If grievances. In a bid to quench, the po- the Go Fund Me initiatives of the Chi- that government has neither increased Negotiating is better than confronta- a nation has a negative economic phase tential strikes from becoming counrty manimani cyclone disaster) is currently the salaries nor improved the working tion. There is an imperative need to take politicians should suffer together with wide; government has resorted to the running the Citizwean clinics. environment which the doctors deem as a paradigm shift in Zimbabwean labour the people.’ Sadly, people are languish- use of public statements and press re- The Higher Life Foundation (HLF) a health hazard. relations and turn it from militancy and ing in poverty alone whilst politicians leases threatening would-be delinquents has also come in with a financial offer to Probably the paramount question to hostility into collaboration and partner- are banqueting. The goose is prepared of labour misconduct. Nonetheless, the provide a reprieve to the government and ask is: Why is government subrogating ship. to continue laying golden eggs, but the common trend with some government doctors debacle. The church has not been its responsibility to solve the crisis to pri- I have previously argued that pro- farmer is only required to maintain a workers is that of being physically pres- left out and has endeavored to act as a vate players and organisations? The con- spective investors consider; How a gov- conducive environment which does not ent within their workstations but no pro- conflict mediator. cern of this article, however, is to table a ernment treats its own citizens? How threaten the daily survival of the goose. ductive targets being attained (go-slows). Fundamentally, these individual and probable method for government to win government manages local investors/en- ●Paddington Masamha is an indepen- One cannot elect to ignore the pri- organisations’ initiatives are praisewor- the unions to its side. trepreneurs? How government controls dent financial and economic Analyst. vate sector market developments. Bank thy and paramount; but a lasting solution Rational governments appreciate that existing foreign investments? He can be reached on email pmasam- employees within the private sector also should be found. The current govern- labour is the oil which facilitates eco- Therefore, before moving around [email protected] and Twitter @PMa- registered their incapacitation. Reports ment’s rogue practice of firing striking nomic activity. Entrepreneurship, land the globe preaching that “Zimbabwe is samha The Financial Gazette December 12-18 2019 | Page 17 Column 2020 human resources outlook HE year 2019 is getting to a close. It has been a very in some instances, they pay in the more retrenchment in 2020 in the public sector than in the private sector. In difficult year for both businesses and employees alike as local unit. People are also looking especially if the demand for the private sector, employers have more blunt legal Twe witnessed some of the greatest business challenges for opportunities in the NGO higher wages continues. instruments to deal with striking employees than in ever. sector. Most companies will the public sector. There is a shortage of power to drive industries. The country Economists have given their realign their headcount in 6. Business closing — we are likely to see some had a poor agricultural season and this affected a number of forecasts for 2020. The majority of line with output (output businesses closing, not only as a result of the difficult value chains in the country. these points to tough times ahead. has already fallen by 40 economic environment, but also due to competition. The power cuts have affected output significantly across all Based on these forecasts, I now percent). 7. Retrenchment packages — while most industries. On average companies reported a reduction in sales delve into what I see happening If companies do go companies will resort to retrenchment, we are also volume of around 40 percent. Nearly half of the business output on the Labour front in 2020. ahead and align their likely to see companies applying to the ministry of was lost in 2019 compared to 2018. 1. Companies must expect headcount, we are likely Labour not to pay anything at all or to pay a portion On the Labour front, we have witnessed some of the more wage demands from to see companies shedding of the mandatory retrenchment package (two weeks highest wage demands ever witnessed. Due to affordability and employees as long as inflation off close to 20 percent of salary for every year served). sustainability concerns, we have seen companies resorting to remains high. their staff. Most likely to Overall, we are likely to see employees who giving non-contractual cushioning/hardship allowances. 2. We are likely to see an HR Perspective be affected are those in the are disengaged and this will naturally influence the A good move by employers given the dire situation they find exodus of skilled personnel. These low skills categories. performance of most businesses. themselves in. Most trade unions have pushed their members will mainly go to South Africa and with 4. Salaries — there will Companies would need to keep their employees to declare incapacity to come to work as a bargaining strategy. other regional countries. Groups Memory Nguwi be nominal wage increases updated on developments taking place in the The majority of employers have been served with such likely to find it easy to get jobs that will never match business. letters from their workers through their workers' committees or outside are experienced professionals like engineers, inflation. This will likely lead to agitation within the n Nguwi is the managing consultant of through the trade unions. artisans, financial experts, and bankers. workforce. Industrial Psychology Consultants (Pvt) Ltd. He Salaries across all sectors have been eroded by inflation and 3. Retrenchments —we are likely to witness 5. Strikes — we are likely to see more strikes writes in his personal capacity. no sector paid in Zimbabwe dollars has been able to match the ever-rising inflation. On the wages and salaries front, things are not as dire in exporting companies when compared to the rest of the economy. Most employees are looking for opportunities in exporting companies as these have pegged salaries to the USD rate even if Africa borrowing worries IMF ECORD commodity prices and low global interest rates have encouraged African countries to borrow like Rthey did in the 1990s, but now some are struggling to pay up as their revenue slows along with economic growth. Government debt as a percentage of gross domestic product in sub-Saharan Africa has doubled in the past decade, heading back toward the level it reached at the turn of the century. International Monetary Fund Managing Director Kristalina Georgieva said in November that this is a cause for concern. Of the 54 countries on the continent, 20 are near or at distressed levels, according to the IMF, which means they face difficulties honoring their obligations. African governments have raised about US$26 billion in international markets this year, from close to US$30 billion in 2018, as they took advantage of investors’ thirst for returns in a world awash with negative yields. Volatile currencies across the continent increase the risks of borrowing in hard currency and the rising cost of servicing debt could crowd out other expenditure in a region that’s home to more than half of the world’s poor people. “The conditions are ripe for a much higher level of debt distress,” Sonja Gibbs, head of sustainable finance at the Institute of International Finance, said. “Whatever triggers the next crisis, when it happens, you are likely to see a high degree of contagion risk because investors have been moving into higher yielding assets.” Further fanning fears of a new crisis is the surge in direct credit from China. The China Africa Research Initiative at Johns Hopkins University estimates that the Asian country’s government, banks and contractors handed US$143 billion in loans to African countries and State-owned companies between 2000 and 2017. Still, Africa is far from a debt crisis, its biggest multilateral lender says. “Some individual countries are getting to higher levels in terms of debt-to-GDP ratios, that’s the concern,” African Development Bank President Akinwumi Adesina said in an interview. The debt-to-GDP ratio of Africa is still “well within acceptable limits,” he said. More reliance on commercial bonds has raised debt servicing costs, diverting funds that could be spent on new roads or schools. Nigeria, the continent’s top oil producer, spends about the same amount every year on repaying debt as it does on infrastructure. Countries such as South Africa, the continent’s most industrialised economy, are raising debt levels and this year had its biggest Eurobond issuance yet to help plug a widening budget deficit. External debt payments now consume an average 13 percent of African governments’ revenue compared with 4,7 percent in 2010, according to data compiled by the United Kingdom-based Jubilee Debt Campaign. Overspending and crashing commodity prices in the 1990s led to a debt crisis that prompted multilateral lenders and rich nations to write off the obligations of dozens of African countries in 2005. This time around a debt pardon may not be that easy. The complex debt structure with opaque terms and mix of different creditors will make any potential restructuring agreement more difficult. “We’re concerned that debt relief might now become more complicated,” said Jan Friederich, a senior director at Fitch Ratings. “Nowadays there is a greater concern that governments, when they forgive any debts, might not actually help the African countries very much, but might primarily be bailing out the commercial creditors.” — Bloomberg Page 18 | December 12-18 2019 The Financial Gazette Column Capital allowance status of computer software

UE to technological developments, include assets, patents, The fact that an computer software is a recent development following intangible properties have become a and products designs, intangible asset is from the case of D Bank Ltd v ZIMRA (FA 06/13) Dhuge component of most companies’ manufacturing warehouse treated as capital asset [2015] ZWHHC 135. statement of financial position. and supplier relationships. does not automatically In this case, D Bank sought to claim it as an The body of accountancy recognises Whichever the case may be, make it qualify for operating expenditure qualifying for full deduction them as capital expenditure because they for accounting purposes, capital allowances. in the year it was incurred. have a probable future inflow of economic intangible assets are capital Only expenditure The court dismissed the claim arguing that the benefits. items. on acquisition or expenditure was capital in nature and a prohibited They are an identifiable non-monetary Their acquisition development of deduction in terms of the law. asset without physical substance. or development cost is computer software It was also barred from capital allowances The Organisation of Economic capitalised for accounting qualifies for capital because the expenditure had not been classified Cooperation Development in their Transfer purposes after meeting allowance as fully as expenditure qualifying for purposes of capital Pricing Guidelines for Multinational the recognition criteria explained in this article. allowances. and Administrators 2017 version have stipulated by International Tax Matters Computer software In view of the importance and growing size of this classified them into marketing and trading Accounting Standards 38 with as per the Income Tax expenditure in financial institutions and Information intangibles. and written off over their Marvellous Tapera Act (Chapter 23:06) Technology companies, the government amended Marketing intangible assets are useful life provided they definition means “any the law to correct the anomaly with effect from comprised of brands, trademarks, trade have a definite useful life. set of machine-readable January 1, 2015. names, customer relationships and The tax fraternity also recognises them instructions that directs a computer's It amended the definition of “article” in the 4th copyrights. as capital items not qualifying for deduction processor to perform specific operations”. Schedule of the Income Tax Act (Chapter 23:06) to On the other hand, trading intangibles in the computation of income tax. The claiming of capital allowances on include tangible or intangible property in the form of computer software that is acquired, developed to or used by a taxpayer for the purposes of his or her trade, otherwise than as trading stock. The effect was to grant capital allowance on computer software expenditure incurred by any taxpayer deriving income from trade and investment, except for mining entities with effect from January 1, 2015. A trader, other than a miner can therefore choose either to claim Special Initial Allowances or wear & tear on computer software expenditure. Special Initial Allowance (SIA) is an investment allowance which is claimed over a period of four or three years, for big businesses and Small to Medium Enterprises respectively. Where one has opted for wear and tear instead of SIA, the claim is equal to 10 percent per annum on the written value of expenditure on computer software regardless of size of the business. While this was a welcome relief for persons deriving income from trade and investment, mining entities have been secluded from enjoying the benefit. The minister of Finance and Economic Development, Mthuli Ncube in his 2020 National Budget Speech, however, proposed to correct this imbalance by extending capital allowances on expenditure incurred by persons earning income from mining operations on acquisition and development of computer expenses with effect from January 1, 2020. Thus, tangible or intangible property in the form of computer software that is acquired, developed or used by the taxpayer in connection with its mining operations has been classified as capital expenditure for purposes of claiming capital redemption allowance. Whether or not a taxpayer is a mining entity or not, the provision for capital allowances will not be applied on computer software acquired or developed for resale or sale. The expenditure will be treated as cost of goods or inventory of the taxpayer in the determination of taxable income. Meanwhile, licence fees or royalties on computer software are neither tax deductible nor treated as capital expenditure ranking for capital allowances except annual and renewal fees. These are treated as deductible expenses in the computation of income tax. Any person paying licensee fees (royalties) to a non-resident person, whether or not they are once off or renewal fees, is required to deduct non- resident tax on royalties at 15 percent of the royalties. A lower rate may apply if the non-resident licensor is a resident of a country that has concluded a tax treaty with Zimbabwe. Value Added Tax (VAT) on imported services is also applicable. This is an obligation of the resident person importing the services and is levied at the rate of 15 percent of the open market or invoice value of the imported services. In conclusion, taxpayers should be mindful of penalties and interest that may arise from incorrect deduction of expenditure on computer software acquired or developed by them for use in their business. The tax benefit arising from this expenditure can only arise from claiming capital allowances on this expenditure. To correct the imbalances, miners would also be getting capital redemption allowances on computer software expenditure acquired or developed for use in their trade come January 1, 2020. Meanwhile, Matrix Tax School will be hosting its 2020 Annual Tax Conference in Victoria Falls, Elephant Hills Hotel from the 20-23 of May 2020. n Tapera is the chief executive of Matrix Tax School. He writes in his personal capacity. The Financial Gazette December 12-18 2019 | Page 19 Column Executive coaching, recruitment complementary N ALL economic endeavours, filling executive positions is their skills and more about prepare for presentations by will systematically hold them accountable for a crucial, costly and recurring need for organisations. When their ability to apply those being a practice audience changing that behaviour and help them track their Ian executive placement fails it can be a painful exercise for skills in a new culture. What then give feedback; by progress. all involved — the hiring organisation, the executive hired and they may complain about as acting as a training curator Failure to communicate a strategic vision: the executive recruiter. “politics” might actually be to identify specific training in The window for a new executive to explain their To increase the chances of success, organisations can a sign of a more risk-averse communication that best fits vision begins closing as soon as they start work. hire a coach to help in the critical transition period in a new culture than they are used to. the executive’s needs. Executives sometimes have a vision in their head executive’s first year. Victor Prince, a renowned executive An executive coach can be a Poor task management: but just don’t know how to put it across. coach identified some common pitfalls to be avoided by a new sounding board to help the As executives get placed A coach can assist to find tools, templates, executive for successful on-boarding, which will be discussed new executive understand into bigger roles, they are training and other examples for the new executive here. how their actions will be seen faced with broader scopes to use as starting point for their own plan. Souring relationship with superior: A couple of hours in the broader organisational of responsibility. Sometimes A coach can also be a useful sounding board of good chemistry between an executive interviewee and their culture. the additional scope, and brainstorming partner in coming up with a future boss can lead to a job offer. Failure to adjust compounded with the need strategic vision. A few weeks or months later any number of things can sour communication style: Like to learn how to operate in Organisations expend lots of time, effort and the relationship, sometimes irreparably. An executive coach all people, executives have a new organisation, can money to find the right people for their executive can help bring things back on the rails or prevent the fallout by different communication Executives Only Corner make a new executive feel roles. gathering feedback from the boss and work colleagues in an styles and so do their bosses with overwhelmed. When a new hire fails it is a costly and painful anonymised “360-degree” format. Using the “active inquiry” as well as organisations. Shepherd Shonhiwa A coach can use a problem, not just for the executive and their boss technique in regular coaching sessions, the executive coach Sometimes executives need process called “behavioural but for the entire team led by the executive. Hiring can facilitate a session with everyone on the executive team to to adjust their communication modelling” to help an a coach for a new executive can be a smart way to talk through problems and find solutions. style to fit in with their new environment. executive improve simple habits like time- increase the chances for success. Failure to fit into the organisational culture: Executives An executive coach can help in several management, timely follow-up and paying l Shonhiwa is a chartered director and has get hired for their record of success in other organisations. If ways, namely; to prepare for crucial one-on-one attention to detail. Once an executive identifies a authored books on leadership. He writes in his they run into trouble in the new position it may be less about conversations through role-playing practice; to simple habit they want to start or break, the coach personal capacity. Tesco considers sale of Asian operation

HE United Kingdom's biggest retailer, Tesco, is considering a retreat from markets in Asia with Tthe sale of its profitable operations in Thailand and Malaysia. Analysts say the 2 000 stores, which operate under the Tesco Lotus brand, could be worth more than £7 billion. The company's only other overseas stores, other than Ireland, are in its loss-making European unit. Tesco said it was reviewing its Thai and much smaller Malaysian arms after interest from potential bidders. In a statement, the retailer said it had received "inbound interest", but did not name the potential buyer or buyers. Tesco Lotus employs about 60 000 people. The statement also said the review was at an early stage, and "no decisions concerning the future of Tesco Thailand or Malaysia have been taken". The businesses had combined revenues of £4,9 billion in the year ending in February, making a profit of £286 million — about a fifth of Tesco's total global profits. Clive Black, an analyst at Shore Capital, said the Asian operation was a "trophy asset", and was likely to achieve a knock-out price. A valuation of £6,5 billion to £7,2 billion seemed "fair", according to Bruno Monteyne, analyst at Bernstein. Laura Lambie, senior investment director at Investec Wealth and Investment, said Thailand was an important market for Tesco. While Tesco had already withdrawn from "more mature markets" such as the US, Japan and Turkey, it had recently announced plans to open another 750 stores in Thailand, she said. Margins in Thailand were also higher, at 6 percent, compared with 3 percent for the UK, she added. "There will have to be a fairly high asking price for Tesco to be prepared to let it go." The announcement signals another potential pullback by Tesco from its once-ambitious global expansion. If a sale does go ahead it would mean the company would be left with stores in the UK and Ireland, and an unprofitable division in central Europe. That unit covers the Czech Republic, Hungary, Poland and Slovakia. Tesco has been shifting its focus as part of a turnaround programme launched five years ago. The plan was in response to an accounting scandal, and in the face of competition from rival supermarket chains and online competitors. The retail giant has shed several businesses across the world in recent years. Tesco has withdrawn from the US, Japan, and China. In 2015, it sold its South Korean unit for $6,1 billion, and a year later offloaded its Kipa business in Turkey, the country's largest supermarket chain. It has also been shedding assets in the UK to focus on its core grocery business. In 2016, it sold the Giraffe restaurant chain just three years after buying it for £49 million. In October this year, Tesco chief executive Dave Lewis surprised investors by saying he would stand down "in the summer of 2020". He took over the top job at the company in 2014, shortly before it was revealed that the retailer had overstated its profits. — BBC Page 20 | December 12-18 2019 The Financial Gazette Column Safeguard shares in matrimonial properties N THE past, I have discussed examples of years. Over the years, the for his wife and is now now the new title holder? how the law stubbornly violates people’s wife worked tirelessly and giving his attention to The position of the law is very controversial and Irights when, after all, its primary purpose contributed tremendously a mistress, he decides it brings to the fore, the inconsistency of our legal in terms of jurisprudence is to assist in the to the development of the to sell the matrimonial system more importantly, if one looks at family law attainment of justice. matrimonial home. home. as against the law of property. In terms of the law of In my daily encounters with people As a matter of fact, and A third party comes property, ownership of immovable property is attained needing legal help, I have come across other as many witnesses may innocently and negotiates through registration and once that registration has examples of the controversial way in which testify, her contribution an agreement of sale after been effected and title deeds have been acquired, the law operates. to the matrimonial estate having been satisfied ownership becomes absolute. In this installment, I intend to expose one far exceeded that of her with Mr Mari’s rights of An owner who is a holder of title deeds can enforce of these examples and in doing so, I shall erstwhile lazy and docile ownership and indeed, his rights against anyone in the world for as long as his to demonstrate the way the law around this husband. subsequently gets title title is not defective. Defective title for example comes aspect undermines women rights and in During the tenure Legal Matters deeds to this couple’s about where one fraudulently acquires title deeds. particular, those females in marriages. of their marriage and with matrimonial home. As So therefore, going back to our example and Since I am bound by rules of because of the high VOTE MUZA the new owner, the third according to common law, the owner of the confidentiality, I shall not be in a position to degree of trust existing party now intends to evict matrimonial property was Mr Mari and the law mention names. I shall only be able to give then, her husband sweet- Mrs Mari together with allowed him to alienate rights in the property without a fact scenario that bears resemblance to one talked her into having the matrimonial her minor children and Mrs Mari attempts to any hindrance. Also, the third party, who has since of the cases that I am currently handling. The property solely registered in his name. resist. acquired the property, enjoys absolute ownership by story goes like this. As such, title deeds are held by the What does the law say as far as Mrs Mari’s virtue of his title deeds and Mrs Mari has no remedy Mr and Mrs Mari have been married husband. Out of sinister reasons one of right to remain on the property is concerned but that is just generally speaking. continuously for a period stretching up to 25 which is that Mr Mari has since lost affection vis-à-vis the rights of the third party who is A question that must be asked about this position of the law especially when one looks at the inconsistency that comes about when family law rights are juxtaposed with the law of property is; why does the law ignore the rights of the female spouse to enjoy her benefits through her contribution during the development of the matrimonial property? Our courts do not give any explanation but what they have proceeded to do is to simply interpret the law of property rigidly without looking at a female’s rights accruing through family law. Many decisions by the High Court as well as the Supreme Court, have been blind to the plight of female spouses who toil for their entire lives only to lose their rights to property through the actions of malicious and vindictive The position of the law husbands. In the case of as far as it gives absolute Muzanenhamo rights to matrimonial and Katanga property registered in & others 1991 (I) ZLR 182, the name of the husband the Supreme is gender insensitive and Court was not ashamed oppressive. to rule that the estranged wife could not prevent the third party who was seeking her eviction since this third party had purchased the property lawfully from her husband. In Muswere v Makanza HH (16) 2005, Justice Makarau was at pains to explain the unjust position of the law regarding the matter under discussion. She correctly noted the inconsistency between family law and property law but still went ahead to rule that the wife could not claim her stake because the law did not favour her. She insisted on applying the law as it was for as long as it remained unchanged. She made another insightful observation when she said that the principles of family law that restrict the rights of a wife in matters of immovable property was anachronistic. This principle of common law developed in feudal England when feudal lords intended to maximise on the collection of dues and looked to the head of each household to pay these, because it was such a head (who was the husband), who was responsible for payment of taxes. The position of the law as far as it gives absolute rights to matrimonial property registered in the name of the husband is gender insensitive and oppressive. It is my respectful view that this law violates wives’ rights to equal protection before the law and in particular, Section 18 of our Constitution. When the law openly supports one spouse against another over property that invariably is jointly developed (but registered in the name of one spouse), then that law becomes discriminatory, unjust and unconstitutional. The new Marriages Bill has attempted to address this anomaly through its section 40 that seeks to introduce “civil partnerships”. Gender prejudices, blind emotion, and outright religious demagoguery seem to be getting louder and finding their way against the introduction of this progressive piece of law. Parliament revisited the Matrimonial Causes Act so that rights of wives/females could be safeguarded. My advice to female spouses in marriages is to insist that they have their names appear on all registration documents as joint owners so that their rights can be safeguarded. Until the law is changed, female spouses are exposed to the peril of losing shares in their matrimonial properties after having extensively contributed, even at times more than the husbands.

n Muza is a Harare-based legal practitioner. He writes in his personal capacity. The Financial Gazette December 12-18 2019 | Page 21 Column Office romance: The forbidden fruit Kudzayi Degrey Mandebvu field and are jostling for the same post. There compensatory behavior of the superior sexual harassment claim. is basis for an argument for promotions — leading to unfair treatment of the employee. Some happy couples started their HE modern day employer is faced with many given a competitive relationship between Evidence will thus show that the other courtship on the job, with the most courted challenges and with the drive for entrepreneurship people, they might end up harming the types of relationships which are not peer example being Bill and Melinda Gates. Tthis entails that the workplace is now more than workplace and given the push for women to peer are bound to explode and harm This goes on to show, relationships in the just the big corporates. empowerment the couple could end up workplace harmony. It is important to note workplace can also go the distance creating In the case of start-ups and Small to Medium jostling for the vacancy. that how people perceive you is life partners, it is however, imperative for the Enterprises (SMEs), the Human Resources (HR) The general tendency is that ultimately what you become. individuals and the organisation to strive to department is made up of novices or is non-existant the woman would submit the Regardless whether one wants ensure that the relationships do not hinder or thereby providing challenges on the interpretation opportunity to their partner, but to maintain their professional affect productivity as this is the reason why of workplace relationships’ policy (provided the what if she is the one that possess outlook on the fairness of treating the employees are there in the first place organisation even has a policy). better leadership qualities? employees, once it is known that In the end, you and your potential With the average working time being 8 hours (other This leaves us with more one is dating a colleague, the partner should at least give it some serious professions like auditors stretch to burn the midnight questions on the logic of a perception that they are doing thought before you forge forward into your candle), the workplace is where most people spend workplace relationship with favours for their lover will end significant-other's territory. most if not all of their awake time at. a peer. Creary argues that up influencing their decisions. Management should be wary not to get Social psychologists highlight that mere exposure to workplace liaisons between employees who In the event that the relationship fails to involved in harming people’s constitutional an individual leads to attraction to the other individual are not peers create “asymmetric power sustain and ends up badly, issues of sexual right to freedom of association, however, this (McPherson, Smith-Lovin, & Cook, 2001). relationships” that raise serious concerns harassment are bound to occur. pursuit of freedom should not come at the This brings into the spotlight the possibility office about subjectivity, ambiguity and fairness. Given that a partner fails to deal with expense of the organisation. romance and the issues that surround such a scenario. Psychologists have also argued that the breakup and ends up exhibiting the sour n Mandebvu writes in his personal A recent study shows that more than 50 percent of subordinate to boss relationships lead to grapes mentality, they may end up filing a capacity. employees have engaged in a romantic relationship at the workplace and a further 72 percent indicated that they would be willing to be involved in one if given the chance. Organisations’ policies either enable or inhibit the productivity of the organisation. In Zimbawe the issue of office romance is not really discussed to the levels that are in existence in other countries such as the US which has a #metoo movement. The recent firing of McDonald’s chief executive Steve Easterbrook has raised awareness on the office romance issue and how policy makers and the implementers have to take appropriate action in ensuring the organisation is productive. The office brings together an array of people to support the vision of the owner to ensure success of the organisation, counter-productive behaviour has to be nipped in the bud and eliminated to ensure the organisation achieves its objectives. With non-existant policies and a study showing that almost half (41 perecent) of employees don’t know their company's policy regarding office romances, it means the workplace is subjected to many relationships that will hinder productivity. It is also important for The recent firing of HR to seek and find out the McDonald’s chief lifestyle of the employees executive Steve to pick on subtle hints Easterbrook has of the possibility of raised awareness workplace romance. This is not meant to pry on on the office people’s lifestyles, but, to romance issue see the significant changes and how policy in the people’s likes and makers and the activities that may signify implementers have romantic ties. This is underlined to take appropriate by the mere fact that action in ensuring most couples keep their the organisation is relationship a secret. productive. In order to ensure that the relationship won’t transform to affect work in the organisation, HR has to be proactive and find out how the relationship can conflict organisational goals. Reiss,Maniacci, Capriello, Eastwick & Finjay (2018) postulate that regular exposure to someone increases attraction to them. In a study done in the US, college students participating in a study were shown photos of faces. Participants saw the photos to 25 times, while other faces were only shown once or twice. The more the participants had seen a photo of a particular face, the more they reported a liking to it. In other words, mere exposure to the photograph increased attraction to it. In a similar study, participants had short, face-to-face contact with one another. Once again, more exposure led to more attraction. Individuals preferred those they had seen more often to those they had seen less frequently. Repeated exposure to the same coworkers daily has a similar effect and will naturally fuel more attraction at work. This leads to the question should companies develop a policy that disapproves office romance or is it a matter of leaving it to the employees to find ways of ensuring that the office romance does not affect their work? Romantic relationships come mainly in two forms; there is the peer to peer and subordinate to boss. These relationships provide different challenges that may cause the success or downfall of the organisation The first type of relationship is generally not viewed in negative circles and usually has really no impact on the organisation. If anything peer relationships may push productivity as the partners push each other as they will assist each other in achievement of the goals. The main problem arises when they are in the same Page 22 | December 12-18 2019 The Financial Gazette Column Global economic conditions survey Confidence now at its lowest since the first quarter of 2016

Michael Taylor food and energy — and are a better guide Sharp drop for North America modest — as long as it does not escalate dramatically. to underlying inflationary pressures — are Confidence in both Canada and the US has UK continues to struggle LTHOUGH the world economy is generally much lower. dropped sharply, and is now at multi-quarter Economic confidence fell again in the UK and performing well at the moment, Highlights of the global economic lows. The US is now at its lowest level uncertainty over the Brexit negotiations is likely to be growth is likely to slow over the conditions since the first quarter weighing on sentiment. A Funded by: coming quarters — due mainly to mounting • South Asia was the of 2016, although the However, with inflation set to fall back over the headwinds in China and the US. most confidentEuropean part Union of Civil Protection & Humanitarian Aid orders index is holding coming months as the effects of the recent fall in The biggest concern globally in Q3 was the global economy up much better and is sterling drop out of the annual comparison, consumer rising costs. To a large extent the concern • In North America consistent with a modest purchasing power should start to recover. about costs is due to rising commodity prices, the economic confidence slowdown in US GDP South Asia held up by India especially for oil. has fallen sharply this growth. In South Asia, confidence fell in Q3 for the fourth This has pushed headline inflation rates up quarter The trade war with China will cause some consecutive quarter. It rose in Pakistan, but remains in many countries. • The Middle East and Asia Pacific were disruption for US companies operating there; much lower than in India, where confidence remains But measures of core inflation that exclude the least confident regions the macroeconomic impact is likely to be buoyant, reflecting a strong economy that is benefiting from a fiscal boost ahead of next year's elections. Strong consumption, higher interest rates and rising inflationary pressures, however, are likely to start dragging on growth prospects soon. China and Asia Pacific This decline in confidence in Asia Pacific reflects three main factors. First, mounting worries about a trade war between the US and China that would hit not only demand for China's exports, but also exports from countries such as Taiwan and Malaysia. Second, the worsening prospects for global growth. The likes of Hong Kong, Singapore and Thailand are among the most open countries in the world, and they will suffer as the global economy starts to cool. Third, rising interest rates. Indonesia and the Philippines have raised borrowing costs aggressively Registration No PVO 26/79 over the past few months to combat rising inflation and support their currencies Request for Proposal (RFP) Ref: No. WVZ-2020 - 2022

World Vision Zimbabwe invites reputable suppliers/service providers to register for the supply of Goods and Services under Framework Agreement for various Categories indicated below:

 Bicycles  Motor Cycle Tyres  Blankets and Mosquito Nets  Motor Cycle Riders Suits and Training  Borehole Components  Security Services  Borehole Drilling  School Furniture (ECD/Primary/  Bushveld chicks and Broiler chicks Secondary)  Catering Services  School Textbooks and Publishers  Customs Clearance  Stationery and Office Supplies  Feeds – Poultry, Fish and Livestock  Auction and Valuation Services  Fuel  Taxi and Shuttle Services  Generators Maintenance and Repairs  Tents and Tarpaulin  Groceries  Vehicle Batteries  Transportation  Vehicle Repairs and Maintenance  Hotel/Lodging and Conferences  Vehicle Tyres and Accessories  Insurance Services  Vehicle Windscreens  Motor Cycle Servicing

RFP documents can be collected/obtained from the following World Vision Zimbabwe Offices indicated below: The global financial

World Vision Zimbabwe World Vision Zimbabwe World Vision Zimbabwe crisis, 10 years on No. 32 Park Road No. 59 Joseph Road/Off Nursery Road No. 1 St Helen’s Drive Suburbs Mt Pleasant Nyakamete Industrial Site BULAWAYO HARARE MUTARE The collapse of Lehman Brothers, marked the start of the deepest global downturn since the Collection and submission times are during World Vision Zimbabwe working hours, (Mondays to Thursdays great depression of the 1930s, but the risk of 0900 hours to 1600 hours; Fridays from 0900 hours to 12 noon), up to the 9th of January 2020, at 1200hours. something similar occurring in the near future appears quite low: Conditions:  The Request for Proposal (RFP) forms are available upon payment of a non-refundable fee of ZWL$1,750 • There has been a sharp reduction in the for each of the categories from the World Vison offices indicated above. amount of risky lending  SMEs and women owned business are encouraged to participate. • Regulations that require banks to hold more capital have made banking sectors across the “Fraud & Ethics Hotline – Deloitte Tip-offs Anonymous – Tel. Toll free:- 0800 4100 to 0800 4106, developed world much safer Toll free Econet – 0808 5500 , 4461 , Toll free Net one: 0716 800 189/190 and 0800 4146 E-mail - [email protected], website - www.tip-offs.com” • While there are worries about highly over- Free Post: The Call Center, P.O. Box HG 883, Highlands, Harare. valued property prices in some countries, these concerns are mostly focused on relatively small economies such as Hong Kong and Aus- tralia

n Taylor is an ACCA author. The Financial Gazette December 12-18 2019 | Page 23 National News EcoCash back to normal IMBABWE’S largest mobile money make use of the Cassava Smartech’s EcoCash Syngenta commits platform, Ecocash, is now fully back on- platform everyday. line after undergoing a major and exten- The survey showed that when it comes to Zsive upgrade last month. convenience, EcoCash scores very high. The system upgrade resulted in improved “The service product is now more efficient platform performance, increased system ca- and faster after it was upgraded because our to revive Zim agric pacity, enhanced transaction security and many lives now revolve around Ecocash, because it’s other improvements that EcoCash said match so convenient,” said Takunda Mukaro, a shop international standards. owner in Gweru. NTERNATIONAL seed and agro-chemicals producer A survey conducted across the country by “My sales volumes are now growing sig- Syngenta said it is implementing a range of measures this publication shows that despite the techni- nificantly as most people have no cash and use Iaimed at reviving Zimbabwe’s agriculture sector to en- cal glitches that dogged the system shortly after Ecocash for their transactions,” he said. sure that the country is food sufficient. the upgrade, all EcoCash services are back on- Lynnet Machisa, a 35-year-old school In addition to training more than 500 extension staff in line, with some merchants reporting increased teacher, said she appreciates the convenience 12 key agro districts in the country, the Switzerland-head- transactions through the platform following the Ecocash brings into her busy life. quartered firm is also capacitating local farmers. upgrade. “When the system went down during the “At Syngenta we believe that we all have one planet Harare City Council acting spokesman In- upgrade, it seemed like my life was turned up- therefore we have committed to do six things in order for nocent Ruwende said not only does EcoCash side down. Ecocash has become part and par- the world’s population including Zimbabwe to be food se- help the city to collect revenues efficiently, but cel of my daily life such that I cannot afford to cure. We need to make crops more efficient by increasing the system also provides convenience for rate spend a day without using it. I am happy that the average productivity of the major crops such as maize by payers. Fundedplatform by: has been upgraded and is now work- at least 20 percent without having to use more land. This “Our Ecocash service is workingEuropean perfectly, Union Civil Protectioning as &smoothly Humanitarian again,” Aid she said. means more food less waste,” Tawanda Mangisi, the com- save for moments when the network is bad like Edwin Moyo, who operates an SME pany’s marketing support manager said. it was the past few weeks. (small-to-medium business enterprise) in Bul- He added that there was need to rescue more farmland Syngenta representative Moses Kudanga training “Ecocash and indeed all our other electronic awayo’s Mzilikazi suburb, concurred with Ma- by improving the fertility of millions of farmland that is on Agritex officers. money transfer methods make bill payments chisa that Ecocash has made people’s everyday the brink of degradation from one source or the other. easy, especially in a cashless economy like lives so convenient and easy. “We need to enhance bio-diversity on more and more maturing hybrid with me- a stable and high yielding,” ours,” Ruwende said. “It’s funny how our lives now depend on farmland and we are working on reaching more small-scale dium maturity benefits. We the company said. —Staff It was also business as usual for most fuel Ecocash. It’s just that we don’t notice it unless farmers and enable them to increase productivity by at least also have proven medium Writer service stations, restaurants, retail shops, ven- some disruption occurs,” he said. —Staff Writ- 50 percent,” he said. hybrid MRI-624, which is [email protected] Zimbabwe has one of the lowest maize production dors and transport operators in Harare, who er [email protected] yields in the region as the country produces an average of 0,9 tonnes per hectare (ha) against regional average of five tonnes per ha due to lack of effective farming methods. Mangisi said it was important to safeguard the farm la- bour force through training on labour safety in the farms. “And finally we must strive for fair labour conditions throughout the agriculture value chain. If government and private players latch on to these commitments, we belive that the beneficiaries of the land reform program will in- deed help feed Zimbabwe and make her food secure,” he added. Zimbabwe has most basic infrastructure and conditions to achieve regular bumper yields, having managed to in- crease production to about 2,5 million tonnes in 2016 /17 summer cropping season. However, climate change effects have significantly affected production in the past two years. Syngenta said it offers a complete package of outstand- PREQUALIFICATION / ing hybrids built on top-line genetics, cutting edge tech- nology and proven yield performance with dependable ag- ronomics, which can help minimize the impact of climate change. REGISTRATION OF VENDORS “We have on offer MRI-514 and SY-5944 (new), drought tolerant versatile hybrids. The latter being an early PRE-QUALIFICATION OF SUPPLIERS FOR GOODS AND SERVICES FOR Years January 2020 to December 2022

World Vision Zimbabwe invites reputable suppliers/service CATEGORY K WV- ZIM/2020/01-Provision of providers to register for the supply of Goods and Services Consultancy Services and other Professional Services for pre-qualification for various Categories indicated below: CATEGORY L WV- ZIM/2020/01->Civil/Structural / Mechanical, Electrical works – Building / Construction SUPPLY OF GOODS/SERVICES AND WORKS works such as Classrooms, Health centers, Cattle Dips, Latrines Roof Harvesting of Rain Water, general repairs and INVITATION FOR PRE-QUALIFICATION OF SUPPLIERS maintenance FOR THE YEARS 2020-2022 CATEGORY M WV- ZIM/2020/01->Video Filming and documentaries. World Vision International, a non-profit making Christian, relief, development and advocacy organization invites Interested eligible firms may obtain the prequalification applications from interested firms, for prequalification / documents from the Supply Chain Management Office, registration of suppliers of goods, works and services as per detailed below, which will close on Thursday the 9th the below categories: January 2020 at 1200hrs, upon payment of a non- refundable fee of ZIM $1,750 per document/category, TENDERS - payable.

CATEGORY A (i) WV- ZIM/2020/01 –Agricultural Inputs Completed tender documents should be submitted (various Seeds, tools/implements, irrigation equipment and in the tender box by 9th January 2020, 1200hours. agro-chemicals) All applications must be in plain sealed envelopes clearly CATEGORY A (ii) WV- ZIM/2020/01 – Fish – Live fish, marked “Prequalification of Suppliers For Goods, Fish feed, Boats Works and Services” and showing the appropriate CATEGORY B WV- ZIM/2020/01 -Emergency Relief tender category for goods, works or services and Items (Non Food Items and Relief Kits, mats, buckets, Jerry addressed to; cans CATEGORY C (i) WV- ZIM/2020/01 -Water and All tenders must be deposited in the tender box, situated Sanitation (WASH) Supplies-Water Pumps, reservoirs, at the below offices. The Tenders will be opened after Tanks, PVC the submission deadline. World Vision reserves the right CATEGORY C (ii) WV- ZIM/2020/01 -Water and to accept or reject any application without assigning any Sanitation (WASH) Solar mechanization, Sand abstractions, reasons thereof. CATEGORY D (i) WV- ZIM/2020/01-General Equipment- Kitchenware, sewing machines and specialized machines etc. The Central Tender Committee World Vision CATEGORY D (ii) WV- ZIM/2020/01- Air Conditioners International Zimbabwe and Refrigeration services P O Box 2420 CATEGORY E W V/SA/I1/2008/9-Veterinary and Animal Harare Health Drugs, Vaccines and Supplies CATEGORY F WV- ZIM/2020/01 - Hardware, Building, The Central Tender Committee electrical fittings, pumbling, cement, and Construction 32 Park Road, Suburbs Supplies Bulawayo CATEGORY G WV- ZIM/2020/01- Educational Supplies and school equipment, ECD materials The Central Tender Committee CATEGORY H WV- ZIM/2020/01 -General Office 1 St Helen’s Drive Nyakamete Industrial Site Furniture / equipment and related Supplies MUTARE CATEGORY I (i) WV- ZIM/2020/01 – Promotional Corporate Clothing CATEGORY I (ii) WV- ZIM/2020/01 - Sports Uniforms “Fraud & Ethics Hotline – Deloitte Tip-offs Anonymous – and Sporting equipment Tel. Toll free:- 0800 4100 to 0800 4106, CATEGORY I (iii) WV- ZIM/2020/01 - Protective Toll free Econet – 0808 5500, 4461, Clothing, Safety Shoes and gear Toll free Net one: 0716 800 189/190 and 0800 4146 CATEGORY J- - WV- ZIM/2020/01 – Digital/Lithographic/ E-mail - [email protected], Offset Printing Services. Design and printing of calendars, Website - www.tip-offs.com” Free Post: The Call Center, diaries, cards, flyers, banners etc. P.O. Box HG 883, Highlands, Harare.

World Vision Zimbabwe Tender Document 2019 Page 24 | December 12-18 2019 The Financial Gazette National News Africa’s climate change, illicit money vicious cycle John Kachembere Migration indicated that 270 000 individuals were affected and Julius Mnganga by the cyclone and that 50,905 people in 12 districts were displaced, while 223 households still reside in displacement INOZIVEI Mabanga, 43, from Chipinge looks at the sites. dark clouds above with fear and trepidation. Although In Chipinge, the southeastern district in Zimbabwe that The is a farmer, the Zimbabwean father of four has ev- was one of the areas worst affected by the cyclone, victims ery reason to fear the coming rains. are desperate for permanent shelter and a normal resumption “I still have trauma over what happened in March when of their livelihoods. Cyclone Idai ravished most of this area, and the fact that “Despite assistance from donors and well-wishers, most another rain season is upon us once again and I don’t have of our infrastructure is yet to be repaired, roads and bridges a permanent structure to lay my head down makes things are still broken, while electricity lines are yet to be fixed,” worse,” said Mabanga, who lost three close relatives to the Mabanga said. The United Nations special rapporteur on the disaster. Cyclone Idai left a trail of destruction in Chimanimani. right to food, Hilal Elver, warned in November that Zimba- A study conducted by the International Organization for bwe is on the brink of a major man-made famine due to a combination of drought and economic mismanagement. Cyclone Idai left a trail of destruction when it hit Malawi, Mozambique and Zimbabwe, leaving at least 1,000 people dead in the three southern African countries. Climate change has made such storms more frequent and more extreme. While the World Bank estimates that the governments in the region have to raise at least US$2 billion needed to bring the damaged infrastructure back to normal, analysts say there is need for Africa to tackle climate change by rais- ing funds from multinationals. Though Africa is endowed with a lot of natural resourc- es, it often fails to reap the benefits because the extractive sector is among those most responsible for illicit financial flows (IFFs), according to the non-profit advocacy group the Natural Resource Governance Institute (NRGI). “Africa urgently needs funding for climate change adap- tation. Plugging the illicit flow of money out of the continent would be a good place to start,” said Dr Richard Munang, United Nations Environment Programme’s Africa Regional Climate Change Programme Coordinator. Munang noted that Africa, which loses US$50 billion every year through IFFs, according to a report by the United Nations, requires an average of US$10 billion each year for climate adaptation. “The international community has attempted to get some financial assistance to meet these costs from- devel oped countries. But there is a huge discrepancy between the amounts required and what has been secured so far. It seems clear that relying on external aid is a risky strategy and Africa needs to find ways to reduce IFFs, especially from interna- tional mining firms, which are largely responsible for global warming,” he said. In just one example of how companies operate to reduce their tax liability, thereby depriving governments of reve- nue, Tanzania’s Tancoal Energy Limited (Tancoal) has been accused by a government agency of siphoning millions of dollars out of the country through systematic and well-coor- dinated manoeuvres. While Cyclone Idai did not impact Tanzania, the country, like most of Africa, has suffered from climate change and related hazards such as floods and droughts, which have sub- stantially affected economic performance and undermined poverty reduction efforts. Information from the United Nations Development Pro- gramme shows that frequent and severe droughts in many parts of the country are being felt with their associated con- sequences on food production and water scarcity, among others. This has resulted in economic experts calling for reme- dial actions from companies such as Tancoal, which are not only failing to contribute significantly to economic develop- ment, but also not doing much to mitigate effects of climate change. A review of payment vouchers conducted by Tanzania’s Controller and Auditor General (CAG) for three consecutive years from 2014 through 2016 noted that the coal miner — 70 percent owned by Australia’s Intra Energy Corpora- tion (IEC) and 30 percent owned by the Tanzanian govern- ment’s National Development Corporation (NDC) — in- curred expenditure amounting to Sh940,34 million (about US$404,000). However, the expenditure was not directly related to min- ing and other operational activities in accordance with the joint venture agreement and since 2011 to 2016 a total of US$3,36 million was paid to meet expenses for mining oper- ations for Tanzacoal in Malawi, a subsidiary of Intra Energy. Due to the fact that exploration activities ended in 2012, the auditor general also noted unrealistic exploration expen- ditures amounting to Sh6,58 billion after analysing the fi- nancial statements from 2011 to 2016. The amount also was overstated by Sh880,71 million. “Inclusion of these unrealistic costs in the financial state- ments during the period reduced the profitability by the same amount leading the company to make a loss. Thus, the government could neither receive dividend nor collect taxes from the company,” the auditor general said. To Page 25 The Financial Gazette December 12-18 2019 | Page 25 National News

Mining companies have understated their revenue in order to avoid paying tax. Africa’s climate change, illicit money vicious cycle

From Page 24 “This is partly due to the increas- Tancoal also was found to have made ing digitalisation of the global economy an improper payment to its Australian and the African economy which enables parent as management fees amounting non-residents and in particular multina- to Sh7,26 billion between June 2013 and tional enterprises to increasingly carry March 2017, which was recognized as a out business in a source country, but with loan hence raising current liabilities for most of the profits being kept in low tax each respective accounting year. jurisdictions.” “The improper payment of manage- Wort noted that the current rules pro- ment fees may lead to increase in expen- vide an inappropriate balance between the diture which denies the company to make taxing rights of residence and source ju- profits and paying government taxes. It is risdictions and are inappropriately skewed recommended that, all transactions relat- in favour of residence jurisdictions. ing to management fees paid should be “This is encouraging illicit financial recovered by Tancoal,” the CAG warned. flows out of Africa through artificial profit Efforts to get Tancoal to comment on shifting to no or low tax jurisdictions and the concerns raised by the CAG in the re- the loss of taxes African countries needs port did not bear any fruit despite repeat- for vital development,” he added. ed emails and phone calls over more than In Zimbabwe, environment minis- two weeks. try climate change director Washington However, in an October update to the Zhakata said the government is set to in- public, IEC chairman, Graeme Robertson troduce a raft of measures aimed at com- indicated that Tancoal was continuing dis- bating climate change and reduce carbon cussions with the Tanzanian government emissions as a way of improving liveli- to seek amicable resolution of the past hoods. royalty and clearance fees. “To concretise climate action and “(The company) fully believes that co- ensure compliance with the multilater- operation can achieve far better outcomes al environmental agreement on climate than disputation and has engineered a change, the government is in the process number of changes to facilitate dialogue of having consultations on a Climate with the government to achieve a win-win Change Bill,” he said in an interview. result,” he said. He added that the new law will require Asked what had been done to imple- companies fueling carbon emissions to be ment his agency’s recommendations, the engaged in activities that reduce effects of newly appointed Auditor, Mr Charles climate change. Kichere, said the National Development Firms that violate this regulation will Corporation, which represents the gov- be liable to a fine. Zhakata also said gov- ernment’s stake in Tancoal, was responsi- ernment was in the process of setting up ble for implementation. a Climate Change Fund, which is critical Damian Gabagambi, the director gen- for repairing damaged infrastructure and eral of the National Development Cor- providing relief in affected areas. poration, said they have worked on the “The funding gap for resilience build- report’s recommendation and given feed- ing still remains enormous and requires back to the CAG. the mobilisation of internal resources Tax issues were also at the heart of a that can be used for targeted strategic in- long-running dispute over Acacia Min- terventions and to leverage international ing, the largest gold producer in Tanzania, resources by providing co-financing,” he which was recently dissolved after parent said. company Barrick Gold of Canada reached While efforts are being done to rebuild a settlement with the government includ- infrastructure and ensure that a similar ca- ing payment of $300 million in taxes and lamity does not have the same devastating other fines. consequences, Chimanimani was struck The government had charged that Aca- again in November by a tropical storm cia never paid any taxes despite operating that destroyed three schools in the area. in the country for more than two decades. “Our lives are now in God’s hands,” Under the settlement, a new company said a sorrowful Mabanga. named Twiga Minerals was formed and it “We no longer feel safe in our area and will give a 50/50 benefits to both partners. honestly no one knows what will happen Logan Wort, the African Tax Admin- to us as the rain season progresses.” istration Forum (ATDF) executive secre- ●This story was produced by The Fi- tary, said many African governments are nancial Gazette in collaboration with struggling to properly collect tax from Mwanachi. It was written as part of multinational firms in the extractive sec- Wealth of Nations, a media skills devel- tor, who use sophisticated digital means opment programme run by the Thom- to avoid paying them. son Reuters Foundation. More infor- “The current nexus and profit alloca- mation at www.wealth-of-nations.org. tion rules are not ensuring appropriate tax The content is the sole responsibility of rights for African countries,” he said. the author and the publisher. Page 26 | December 12-18 2019 The Financial Gazette National News Zim’s petrol imports slump Omega Ukama eign currency shortage. uity Axis said in note this week. Senior Staff Writer The country has also been suffering its “Purchasing power has drastically eroded thus re- worst foreign currency crisis in a long time, ducing the demand for imports. IMBABWE’S petrol imports fell to a which has been caused by its overreliance on “Likewise government has forgone a number of three-year low of $19,5 million in Oc- imports. subsidies on select imports which has impacted afford- Ztober due to foreign currency shortag- As a result, long winding fuel queues ability and demand. es, data provided by the Zimbabwe National have remained a permanent feature through- “A shrinking national purse in real terms, given the Statistics Agency (ZIMSTAT) has shown. out the year. Zimdollar depreciation, has also forced government to Diesel imports were also subdued at $54 It also comes as the country’s imports tame back its own demand, thereby dragging overall million, down from a high of $127 million in have plummeted to $3,6 billion during the imports,” the research firm said. November 2018. nine months to October from $5,35 billion Still, market experts assert that the majority of im- Petrol imports peaked at $41 million in during the same period in 2018. ported goods are being smuggled into the country to February 2017. Meanwhile, during the same month, the avoid high taxes at the borders, which they say points The data shows that petrol imports during country recorded its second monthly positive the understatement of imports. the nine months to October, at $287 million trade position since 2008. Finance minister Mthuli Ncube, however, says were down 30 percent on the prior compara- October imports came in at $400 mil- the decline in imports has come as a result of gov- ble period. Diesel imports were down by 20 lion, while exports were $483 million. The Mthuli Ncube ernment’s efforts towards import substitution. “The percent during the same period. month’s positive trade balance of $83 mil- TSP targeted higher import substitution for goods and Fuel prices have been increased more lion is the country’s best position in 12 years. services which can be produced domestically taking than five times since June and by more than Zimbabwe last registered a positive trade “The firming trade balance is as a result advantage of the country`s resources. 1 000 percent this year, as the value of the position in November 2017, with a balance of default import suppression brought about [email protected] local currency has slid amid a worsening for- of $71 million. by the Zimbabwe dollar’s devaluation,” Eq- Receivables exchange on the cards

Omega Ukama Senior Staff Writer

HE Zimbabwe Stock Exchange (ZSE) says Tit is working with a local firm, the Harare Re- ceivables Exchange (HRE), to develop a platform that allows businesses to sell in- dividual unpaid invoices in order to free up cash. “The ZSE wishes to Justin Bgoni advise stakeholders on the signing of a Memorandum of Understanding (MOU) be- tween the ZSE and HRE...the signing of the MOU forms a basis for ZSE and HRE to establish a framework in the development of a receivables financing platform,” Justin Bgoni, the ZSE’s chief executive said in a statement. “As the ZSE, we are delighted to be partnering with HRE, and we envision that over time, the receivables financing platform will grow to offer additional products that will provide the wider market working capital and other forms of financing. “This collaboration will entail both parties having joint responsibilities in the establishment of a trading platform for receivables,” he said. Currently, HRE is the only receivables focused, trad- ing company in Zimbabwe. “Our mandate as the ZSE is to facilitate economic development of Zimbabwe and Africa, and we are excit- ed that such partnerships with HRE, are positive strides in fulfilling our mandate. “The ZSE is looking forward to a successful partner- ship with HRE in ensuring the growth of the receivables financing platform,” Bgoni added. Meanwhile, the exchange has also signed an agree- ment with GetBucks Microfinance Bank Limited (Get- Bucks), to operationalise the Zimbabwe Emerging Enter- prise Market (ZEEM) to offer working capital solutions to formalised businesses, including small-to-medium enterprises (SMEs). The ZEEM product will be offered through an over- the-counter platform. “Over time, the ZSE will facilitate and assist small to medium-size enterprises to list on the secondary bourse through training, workshops and other initiatives to edu- cate SMEs on benefits of listing and meeting the require- ments,” the exchange said in statement last week. The ZSE and GetBucks are also working together in establishing the receivables exchange, which the ex- change says is a precursor to the ZEEM project. “This collaboration reinforces ZSE’s drive to foster the growth of the capital markets in Zimbabwe and reso- nates with our vision of facilitating Economic Develop- ment in Zimbabwe and Africa. “The ZSE is looking forward to a fruitful partnership with GetBucks in ensuring the growth of SMEs under ZEEM,” the exchange said. [email protected] The Financial Gazette December 12-18 2019 | Page 27 Foreign News Kenya’s coffee crop nosedives

ACHAKOS — Kenya’s Saudi firm farmers are grubbing up Mtheir coffee bushes to plant other crops as low prices and climate change drive small growers to the brink of collapse. Arabica coffee, the higher-quality in world’s variety that Kenya grows, ends up in speciality beverages from Berlin to San Francisco. The plant thrives in moderate tem- peratures and high altitudes. But rising temperatures are scorching plants, biggest IPO making them susceptible to diseases have risen by 0.3 degrees per decade Kenya produces only 0,5 percent such as coffee leaf rust. since 1985, according to USAID. of global coffee but plays an outsize Farmer Shadrack Wambua Mut- More erratic rainfall is reducing qual- role in the high-quality market, as “the AUDI Aramco shares increased 10 and government institutions. isya has been growing coffee up a ity and yields. ‘champagne’ region for coffee”, said percent when they began trading on First promoted in 2016, the company's winding hill southeast of the Kenyan In the 1960s, Kenya averaged one Matthew Harrison, buyer at speciality Wednesday, capping a stock market partial privatization was supposed to usher S capital for 40 years but he’s replaced storm day — more than 50 millimetres coffee sourcing company Trabocca. debut that shattered records but failed to in a new era of economic liberalization in most of his bushes with banana, maca- in 24 hours — per year, said Joseph “The diminishing volume is very achieve the US$2 trillion valuation sought Saudi Arabia. damia and avocado trees. Kimemia, vice chairman of the Afri- concerning for the speciality coffee by Crown Prince Mohammed bin Salman. The Saudi government initially dis- “Now we see diseases that we nev- can Fine Coffees Association board. In world,” he said. Saudi Arabia's giant state-owned oil cussed floating 5 percent of the company er saw before,” said Mutisya, 67, his 2017, there were five storm days. That Kenya’s coffee production is tum- monopoly last week pulled off the biggest in 2018 in a deal that would raise as much dark brown eyes tinged with the blue damages fragile roots and throws off bling — the U.S. Department of Ag- IPO in history, raising US$25,6 billion by as US$100 billion. of old age. the ripening cycle. riculture forecasts the 2019/20 harvest selling 1,5 percent of the company. That It was looking at international markets Average Kenyan temperatures “Every year it gets hotter,” he said. will hit a 57-year low. — Reuters exceeded even Alibaba's 2014 market de- such as New York or London, as well as but in New York. Riyadh, signaling that the country was The IPO on Saudi Arabia's Tadawul open to global investment. stock exchange in Riyadh valued Aramco Yet the project was shelved amid con- at roughly US$1,7 trillion, making it the cerns about legal complications in the Diamond crisis to last another year most valuable publicly traded company in United States, doubts about the US$2 tril- HE glut that’s depressing the – the traders that buy rough gems for driven down prices and squeezed the world ahead of Apple (AAPL), which lion valuation, and international outrage diamond market will last an- cutting and polishing – will continue profit margins. Tighter bank financing is worth nearly US$1,2 trillion. triggered by the murder of journalist Jamal other year, according to indus- to drop next year, the consultant said. has also made it harder for traders to Shares in Saudi Aramco shot up to Khashoggi in a Saudi consulate in Turkey. T try consultant Bain & Co. “The industry’s first and strongest make money. 35.20 riyals (US$9,39) following their The deal was revived earlier this year, The inventory backlog will prob- opportunity to rebalance and regain On Tuesday, De Beers curbed its debut on Wednesday, the maximum daily but received muted interest from interna- ably be cleared in the beginning of growth will be 2021,” said Bain, plan to expand diamond production increase allowed by the exchange. That tional investors. Concerns included lower 2020, but it will take some time for the which added that supply could fall 8 over the next two years, which sug- brought the company's valuation to $1.88 oil prices, the climate crisis and geopoliti- market to fully recover, Bain said in a percent that year. gests the biggest miners are respond- trillion. cal risks associated with the company. report released on Wednesday. Bank The diamond industry is wrestling ing to weak demand. The vast majority of buyers for the The price of shares will likely be sup- financing to the industry’s midstream with an oversupply problem that’s — miningweekly stock are in Saudi Arabia. Samba Capital, ported in coming days by last week's de- which managed the IPO, said Tuesday that cision from OPEC, Russia and other oil 97 percent of retail investors who received producing nations to deepen production shares were from the country. More than cuts in an attempt to shore up prices. Brent 75 percent of shares sold to institutional crude, the international benchmark, is up investors went to Saudi companies, funds 1,8 percent in the past week. – CNN COMPANY SECRETARY

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Key Attributes: The ideal candidate should possess integrity, maturity, initiative, confidence, interpersonal skills and commitment to teamwork and excellence. They must be ambitious, but prepared to do low-level tasks, while maintaining a positive M r s C h i p o M t a s a attitude. The candidate must also be prepared to take instructions and work late hours/weekends at short notice. A high level of attention to detail, as well The Chief Executive Officer as the ability to meet challenging deadlines while maintaining quality and of Telone. accuracy are critical for the role. This is just a First Step on your path to success. APPLYING We wish you a long road of success ahead. Interested individuals must email their applications and CVs to Congratulation for this award! [email protected] with the subject line: “Company Secretary Q4 2019”. Applications received after 31 December 2019 will not be considered. From Mr. Chiviya & Partners Only shortlisted candidates will be contacted. Microsoft Office and +263 717 817 543 / 0776 755 735 future tide writing/editing skills will be tested as part of the interview process. [email protected] Mutual Vision...Partners in growth Consequently, please do not apply if you do not meet ALL the requirements above. Page 28 | December 12-18 2019 The Financial Gazette

News Amazon, Trump fight over US$10bn

HEN the Pentagon first was already, by far, the biggest cloud income for Amazon than it makes from cent of the cloud market — would be tendered the so-called Jedi platform in the world, entrusted with retail in the whole of North America. poised to capitalise. Wcontract in March 2018, the sensitive data belonging to millions of In that context, the Jedi contract “This is a game-changer for Micro- stakes couldn’t have been higher. clients. Among them, the Central Intel- — worth $10 billion over 10 years — soft,” Ives said in a briefing note, “as The Joint Enterprise Defense Infra- ligence Agency. would be a meaningful but not critical this will have a ripple effect for the structure project would give the mili- “We have no favourites,” insisted entry on its balance sheet. company’s cloud business for years tary a cloud computing system that Timothy Van Name, from the Defense But what has Amazon so incensed to come, and speaks to a new chapter could handle 3,4 million demanding Digital Service, when hit with a barrage is what the Pentagon’s decision might of (Microsoft) winning in the cloud v users, many of whose lives depended of criticism from the wider cloud indus- mean for future, similar contracts. Amazon”. on it working correctly. try. A court challenge would come from Much like the firm had hoped its in- With more than US$1 trillion in Rather than share the responsibility Oracle — the database firm — slowing volvement with the CIA would give cloud spending predicted in the upcom- between several companies — as the progress, but the contract looked set to it a shoe-in for Jedi, it is thought that ing decade, this initial US$10 billion likes of Oracle and IBM had keenly land in the lap of Jeff Bezos. other US departments, also in need of loss could ultimately prove incredibly hoped — the Department of Defense Except, it didn’t. Against expec- modernisation, will follow the Penta- costly. decided that this was to be a “winner tations, the Department of Defense gon’s lead. A “stinging defeat”, as Ives put it. takes all” contract. One project, one awarded the contract to Microsoft. Donald Trump Dan Ives, an analyst with Wedbush, Jeff Bezos’s problems began to provider, US$10 billion (£7,6 billion). Now, Amazon is going head-to- cess out of spite for Jeff Bezos due to said he believed Amazon’s protest emerge in July, when President Trump Experts considered it an opportuni- head with the Trump administration, his ownership of the Washington Post. would not result in the overturning of told reporters that he'd heard “people” ty beautifully “gift wrapped” for Ama- arguing that the President himself un- So far in 2019, AWS has generated the Jedi decision. And, as a result, Mic- were unhappy with the way the Penta- zon. Its Amazon Web Services (AWS) fairly interfered with the selection pro- US$25 billion in sales, generating more rosoft — which today controls 17 per- gon contract had been handled. — BBC Dawn revenue up in Q3

Nelson Gahadza Staff Writer

AWN Properties (Dawn) says its revenues in- creased 138 percent to $15,2 million for the Dthird quarter ending September 30, 2019 com- pared to $6,4 million during the same period last year, driven by strong performance across the group’s busi- ness units. Formai Myambuki, the company secretary, said the group continues to record positive performance, build- ing on the good performance in the first half of the year. “Total revenue was also 223 percent up from $4,7 million recorded for the nine months ended Septem- ber 30, 2018. Further, it is pleasing to note that all of the Group’s revenue lines were comparatively higher than what was reported, both at interim and during the comparable period ended 30 September 2018,” said Myambuki. The group’s profit before tax increased by a margin- al one percent to $515,1 million from $510 million re- corded for the six months ended June 30, 2019, and was significantly higher than the $1,9 million recorded for the nine months ended September 30, 2018, as the busi- ness adjusted for fair value gains in property following change of functional currency in June 2019. “We expect that this line will continue to be adjusted in line with movements in the currency,” said the sec- retary. The company’s total operating expenses were up 119 percent to $6,8 million from $3,1 million incurred for the six months ended June 30, 2019. “However, due to the strong income growth between the first half year of 2019 and Q3 2019, cost-to-income ratio improved to 45 percent compared to 48 percent recorded for the six months ended June 30, 2019,” said Myambuki. Dawn’s financial position for the quarter was at $614 million, a one percent growth on the June position of $610 million, and was also 520 percent higher than the $99 million recorded as at December 31, 2018. Total equity attributable to shareholders of the parent company increased by one percent to $598,6 million, compared to $593,6 million recorded as at June 30, 2019 During the period under review, the group launched its second housing project — Marlborough Sunset Views — and will consist of 354 residential stands mea- suring 2,000 square metres. “We look forward to rolling out additional residen- tial housing projects,” Myambuki said, adding that the We deliver. We respect. We care group’s profitability for the remainder of the year is expected to be driven by good performance from the timeshare rentals and an increase in rentals from Afri- can Sun across all our properties during the December peak period. [email protected] The Financial Gazette December 12-18 2019 | Page 29 Foreign News Ramaphosa cuts trip short over power crisis

RESIDENT Cyril Ramaphosa cut ing on “plans to mitigate and resolve the The Department of Mineral Resourc- creating a “perfect storm” for insurance short a trip abroad to deal with an current electricity crisis”. es and Energy said in a statement that it companies, said Christelle Colman, a Pescalating crisis at the state power Eskom, which supplies 95 percent is considering short and medium-term spokeswoman for Old Mutual’s property company, which imposed a sixth day of of the power used in Africa’s most in- interventions to address the electricity and casualty insurance unit. High lev- blackouts that threaten to tip the econo- dustrialised economy, has struggled to shortage. els of claims are expected due to foods my into recession. meet demand for power since 2005, due These include allowing independent spoiling in freezers, power surges dam- The rand declined the most in a to its failure to properly maintain ageing power producers to bring capacity on aging electronics, an increased number month on Tuesday as Eskom said there power stations and invest in new ones. stream earlier. of vehicle accidents and additional inci- is a high likelihood of power cuts all The latest round of outages were caused Besides Sibanye, Impala Platinum dents of theft, she said. week and mining companies including by simultaneous breakdowns at several Holdings, Harmony Gold and Petra Di- Vodacom and MTN Group, Africa’s Sibanye Gold, the world’s biggest plat- plants and were exacerbated by heavy amonds said production had been inter- largest wireless carrier, both said the inum producer, temporarily halted oper- rains that caused flooding and soaked rupted and that they are assessing when power cuts were affecting their mobile ations. coal stockpiles. to resume output. Palladium rose above phone towers and batteries. Vodacom Group, the nation’s biggest The company implemented a record $1 900 an ounce for the first time and “Our towers do use batteries as a mobile operator, said the outages are dis- level of cuts — 6 000 megawatts (MW) Cyril Ramaphosa platinum headed for the biggest daily back-up, but these do have limited pow- rupting its service. — to prevent a total collapse of the grid gain since September. er and will eventually fail,” Vodacom Ramaphosa is en route back home late Monday, and plans to cut 4 000 MW making it the worst performer among In Cape Town, the nation’s biggest spokesman Byron Kennedy said. from Egypt, having terminated his trip a until late Tuesday. A total of 15 200 MW emerging-market currencies. tourism hub, which is gearing up for the South African Weather Service fore- day early to “attend to urgent domestic of installed generation capacity had been The economy contracted an annual- year-end holiday season, the city council casts show that rain in Mpumalanga, the priorities,” the presidency said in a state- rendered unavailable, the utility said. ized 0,6 percent in the third quarter, and warned that if the power cuts intensify, it province in which most power plants ment. Eskom management said it will The rand fell 1,2 percent to R14,84 the latest power deficit has compounded could interrupt water supplies. are located, will continue until Friday. brief the president on Wednesday morn- per dollar by 16:49 in Johannesburg, the risk of a recession. The outages and heavy rains are — Moneyweb FUCHS Group makes strategic acquisitions

HE FUCHS Group, which operates globally in the lubricants industry, says it has acquired 50 percent of Tthe shares of three distributors based in Zimbabwe, Zambia and Mozambique. In a statement the company, which has been working with these partners for more than 15 years, said after the recent establishment of a FUCHS entity in Tanzania, these acquisitions further strengthened its footprint in sub-Saha- ran Africa. The joint ventures employ 90 people and generated sales of around 21 million euros in the 2018 financial year. “Customers in these countries, who require lubricants and services in fields like mining, commercial vehicle fleets, general industry, agriculture, food and beverage, consumer products and other specialty applications will benefit locally from even stronger lubricants focus supported by interna- tional resources,” said FUCHS executive vice president Alf Untersteller. FUCHS executive board chairman Stefan Fuchs said the company had invested significantly in South Africa through the acquisitions of lubricant firms Lubritene, Lubrasa and Optiflow in 2014 and investment in a state of the art, ful- ly automated grease manufacturing plant which opened in 2018 at its manufacturing hub in Isando, Johannesburg. “This will supply markets in Africa and is also part of our current global growth initiative investing in existing and new plants focused on capacity increase in line with advanced technology. Further plant expansions are already being planned.” said Fuchs. — ANA Ghana firm discovers oil and gas

HANA'S Springfield E&P said on Wednesday that it had discovered 1.5 billion barrels of oil Gand 0.7 trillion cubic feet of gas off the West Af- rican country’s Atlantic coast. The discovery is a significant one in a country that currently produces about 200,000 barrels of oil per day (bpd), about half of it from British company Tullow’s Jubilee field. Springfield, a wholly-owned Ghanaian company, said in a statement that the undiscovered potential of the block was estimated at over 3 billions barrels of oil and gas. “This is great news for Springfield, Ghana and Afri- ca,” said chief executive Kevin Okyere. “We are excited about the discovery as it ties into our vision of becoming a leading African upstream player with a global focus.” Ghana’s government has been frustrated by the slow pace of offshore development and is working on revising its licensing laws in an effort to spur production. Its deputy minister for petroleum said last month that Ghana had expected 14 wells to be drilled and $890 mil- lion invested between 2013 and 2016, but not a single well was drilled and companies spent just $95 million. — Moneyweb Page 30 | December 12-18 2019 The Financial Gazette

News Tongaat writes off R4bn to Zimbabwe land grabs

Adelaide Moyo said it would engage authorities to creased irrigation. Staff Writer have the ban lifted. The company’s various sugar The sugar producer is a major operations recorded an operating ONGAAT Hulett (Tongaat) shareholder in Hippo Valley and profit of R346 million during the says land expropriated at Triangle, representing a combined review period, relative to a R437 Tits Zimbabwe operation re- installed sugar milling capacity of million loss in the prior year at- sulted in an unexpected R4 billion more than 640 000 tonnes in Zim- tributed to a fair value gain and write down bringing total write babwe. foreign currency translation bene- downs for the year to March 2019 Sugar operations at the Zimba- fits in the Zimbabwe operations. to R11,8 billion, in a restatement of bwean unit “Local demand has remained its results after an audit unearthed generated “Local demand steady despite the substantial in- Nedbank to dispose accounting malpractices. an operat- has remained creases in the sugar price, as sugar The investigation identified ing profit of steady despite is regarded as a defensive holding practices that led to revenue be- R1,2 billion the substantial against a declining currency. The ing recognised in earlier reporting (US$81,5 increases in the Zimbabwe operations have focused of Malawi operations periods than it should have been, million) sugar price, as on growing exports to generate for- and expenses being inappropriately during the sugar is regarded eign currency,” Tongaat said. OLLOWING a strategic review by Nedbank Malawi contributed less than 0,1 capitalised to assets leading to an year end- as a defensive Export sales increased from 58 Nedbank Group, the financial services percent to Nedbank Group’s headline earn- overstatement of profits. ed March holding against a 000 tonnes per annum to 130 000 provider will dispose of its Malawi ings and total assets and its market share in The South African sugar pro- 30, 2019 declining curren- tonnes, trading off lower global F operations. Malawi was approximately 1 percent,” the ducer said despite the challenges, compared cy. The Zimbabwe sugar prices for hard currency. The financial institution made the- an notice read. the core business remains strong, to R425 operations have An increase in the group’s fair nouncement in a shareholder notice issued Nedbank said it is still committed to with strong margins at an opera- million focused on grow- value of biological assets of R470 on Monday. The Malawi subsidiary of Af- growing operations in the Southern African tional level. (US$28,8 ing exports to million is largely attributable to rican banking group MyBucks will acquire Development Community, as well as ex- “Our investment case is sup- million) in generate foreign currency fluctuations in Zimba- Nedbank Malawi, according to the notice. ploring opportunities in East Africa and to ported by our lenders, with whom the previous currency” bwe, Tongaat said. “Nedbank Group and Nedgroup Invest- strengthen its alliance with Ecobank Trans- we have signed debt refinancing period driv- The sugar producer said man- ments Africa have agreed to dispose of, and national Incorporated in Central and West agreements,” Tongaat said on en by signif- agement continues to engage with MyBucks Banking Corporation Limited Africa. Tuesday. icant currency gains and a 66 per- relevant authorities regarding the has agreed to acquire, in one composite, So far, the Reserve Bank of Malawi has Headline loss fell slightly to cent increase in sugar prices. repatriation of dividends. indivisible transaction, 100 percent of the approved the transaction, which is still sub- R923 million, from R947 million Output from the Zimbabwe op- Tongaat said it took the neces- issued shares of Nedbank Malawi and the ject to approval of the competition author- previously, while revenue declined eration went up 15,7 percent to 453 sary steps to stabilise the business, cession and delegation of a term loan from ity, namely Common Market of East and two percent to R17 billion. 700 tonnes during the period under restructure its high debt levels and Nedbank Limited to Nedbank Malawi,” the Southern Africa. Tongaat’s share were suspended review from 392 000 tonnes, while initiate processes to start reducing notice read. Nedbank Group shares were trading from the Johannesburg Stock Ex- yields also improved following the the debt to more sustainable levels. “The disposal follows a strategic review 0,23 percent down at 16,15 on Tuesday, change in June, but the company recovery from the drought and in- [email protected] by Nedbank Group. As at June 30, 2019, changing hands at R215,60. — Fin24

ForFor the the week week endingending 11 13 December March 20192019

For the week ending 13 March 2019 Life & ArtsNews Worth Knowing December 12 - 18 2019 Page 31 fastjet Africa takes City of Kings direct to Johannesburg

DC Rodrigues national Airport. Check in staff require pas- charge of human resources, said that the new sengers to produce their IDs. Luckily, I had route was a "game changer for Zimbabwe R GREY, the lovable African Grey my driving licence, so didn't get left behind. and the travelling public." He promised that parrot mascot on the tail fin of The aircraft, a Brazilian-made Embraer the government would continue to upgrade Mfastjet Zimbabwe's twin-engine re- JI45, stood on the taxiway outside the ter- the airport facilities at Joshua Nkomo Air- gional jet, is establishing his authority over minal. Streamlined and elegant, the fuselage port. Zimbabwean skies. gleamed white in contrast to the grey, yellow TV personality and Master of Ceremo- Fastjet, a pan-African low-cost airline, and orange corporate colours on the tail fin, nies Arthur Evans, with his inimitable style flies regular and reliable flights between -Jo under the beady eye of Mr Grey. The African and humour, gave his version of Martin Lu- hannesburg, Harare, Victoria Falls and Bula- Grey, one of the most intelligent and talent- ther King's historical speech, expressing his wayo, and the recent introduction of fastjet's ed members of the parrot family, is the ideal desire to see an upgrade at Joshua Nkomo direct flight linking Bulawayo and Johannes- choice to appear on fastjet's livery, personi- Airport, starting with a skywalk. burg, is a boost for tourism and business, and fying the company's motto: smart travel. "I have a dream, that one day on the hal- a boon for the City of Kings. We clambered up a short flight of air stairs lowed ground of the Bulawayo International Two daily weekday flights, and one on into the plane, where an elegant air hostess Airport, there shall be a skywalk!" He held Sundays, are now offered to travellers com- greeted us and directed us down the aisle. the audience in the palm of his hand, alter- muting between the two cities. The interior is long and narrow, and you can nately raising a laugh, and introducing im- Invited to attend the launch in Bulawayo, sit either on an aisle or at a window seat. portant guests. we joined a small group of journalists, VIPs Everything was spotlessly clean and in His Worship the mayor, Solomon Mguni, and dignitaries, arriving in good time at the working order, and the seats were ultra com- expressed his delight at "this significant ini- domestic terminal at Robert Mugabe Inter- fortable. The sleek design and interior com- tiative from fastjet Africa", saying it would fort have been described by passengers as 'a benefit Bulawayo as an economic hub, while private jet experience'. bringing more tourists to popular attractions Flying time to Bulawayo is short, and such as the Matopos, and Khami Ruins. before long another smartly dressed host- Great platters of snacks were brought ess offered us a complimentary snack box in from the kitchen, wine and soft drinks and the choice between bottled water and flowed freely and I chatted with hoteliers fruit juice. The box contained a fresh, but- and tour operators. Kudzayi Ratisai, manag- tered white roll filled with smoked chicken er of Cresta Churchill, is proud of this his- and cucumber, hygienically packed in cello- torical hotel. phane. Alongside were two rather heavy and Combining elegance and comfort, it also nondescript sweet biscuits. Not all low-cost offers free WiFi — perfect for business trav- airlines offer free snacks, so this was a plus ellers. Moreover, the Churchill's Inglenook for fastjet. Restaurant, with its fine wines and interna- Captain Joe Mparuri, who is Director of tional cuisine, is considered one of the best Operations and Chief Pilot, flew our craft ef- CEO Joao Sousa and Captain Joe, Chief restaurants in Bulawayo. fortlessly up through heavy clouds into the Pilot, fastjet Africa. Do something different for Christmas, open sky, and before long we touched down and book into Amalinda Lodge's five star sa- at Joshua Mqabuko Nkomo International He brings a wealth of experience from fari lodge, built into the granite rock forma- Airport, 25km outside Bulawayo. Spilling stints in Macau, India, Singapore and South tions in the Matobo Hills, a UNESCO World out of the plane we strode towards the de- Africa, and specialises in business develop- Heritage site. parture hall, where the party was already ment, creating joint ventures and building Track rhinos, relax in the infinity pool, underway. effective organisations. indulge in a massage with African oils, and Captains of industry, members of the He said he was proud to be associated enjoy fine dining with other guests at a sa- trade and hospitality industries, multiple with Bulawayo, which had the potential to fari style communal table,when you stay at travel communities and members of fastjet become one of the fastest growing cities in Amalinda Lodge. Sharon Stead, director of Airline were in celebration mode, but before sub-Sahara. marketing for the Amalinda Collection, says we could join in, there was a press confer- With fastjet now linking Bulawayo di- bookings for the festive season are already ence with addresses from important officials rectly with Johannesburg, the sky was the filling up. who included fastjet Zimbabwe's CEO, Joao limit for business and leisure travel between Whether you're travelling for business or Sousa.Joao Sousa, who comes from Porto the two cities. pleasure, book early to get the best deals, Elegant hostess on fastjet Africa flight to in Northern Portugal, was educated at HEC Standing in for the Minister of Transport, and fly confidently through Africa with Mr Bulawayo. Paris, an international business school. Andrew Berven-Murungweni, director in Grey and fastjet. SA's horse racing industry hangs in balance as financial woes mount HE future of horse racing in the coun- general public do not trust us,” said Faull. try, particularly the Western Cape, When a speaker from the floor suggested T hangs in the balance as the full extent horse racing needed to attract younger own- of the financial problems facing Phumelela ers - “for instance a successful 35-year-old Gaming and Leisure Limited emerged in its male, married with children, who would nor- delayed annual financial results. mally play golf or spend his money on a fish- The group incurred a loss for the year of ing boat” - Bloomberg replied: “People are R96 million, whereas last year it made a prof- concerned about racing folding here. It won’t it of R154 million. Meanwhile, the current happen. liabilities of the group exceed the current as- “Thirty-five percent of our ownership base sets by R472 million (2018: R25 million). is international, and it really is time the other The issues facing Phumelala were aired at regions recognised our contribution to racing, a meeting held at Kenilworth Racecourse on the quality of the horses, and what we bring Monday night. The meeting was addressed to the party, as opposed to looking at what our by the co-chairmen of Kenilworth Racing, turnovers are based solely on the demograph- Robert Bloomberg and Mark Currie, among ics of the country. others. Kenilworth Racing is managed by “The idea of this meeting is that there are Phumelela. three racing operators in South Africa - Phu- Speaking afterwards, Bloomberg said: “As melela, Gold Circle and Kenilworth Racing. you probably are aware there has been a lot “It is the first time we believe an opera- of adverse publicity about horse racing, and ers, breeders, jockeys and blood stock agents, Africa today. tor has been transparent enough to meet with the sport is in a pretty dark place right now and many expressed their concerns about the Faull said he had spoken to someone about everybody (owners, trainers, breeders, jock- financially. future sustainability of Kenilworth Racing. investing in a sponsorship, but the person eys, blood stock agents etc) to discuss with “Phumelele’s share price has been deci- During the meeting, which was heated at turned him down, saying horse racing had a them where we came from at the time of our mated. From around R26, it is now trading at times, racing historian and expert Charles bad image, and businesses did not want to be de-merger with Gold Circle to where we are under R2.”Attending the meeting were stake- Faull took Bloomberg to task about corporate associated with it. now today, and how we are trying to address holders in the sport, including owners, train- sponsorship and the image of racing in South “The image of the sport is shocking. The the financial issues that confront us.” - IOL SERENA Williams' smashed racket from her in- famous US Open final defeat by Naomi Osaka has been sold for $20 910 at a New Jersey auction. Williams damaged the racket in the bad-tempered News Worth Knowing 2018 loss, a match which sparked controversy af- ter the 23-time grand slam champion was docked a Sport game for clashing with umpire Carlos Ramos. Page 32 December 12-18 2019 SPORT SHORTS Liverpool secures last 16 spot CHAMPIONS League holders Liverpool confirmed their spot in the last 16 of this year’s competition with 2-0 win over Red Bull Salzburg, thanks to goals from Naby Keita and Mohamed Salah’s sensational finish. Napoli also joined them after sealing second place in group E with a comprehensive 4-0 win over Genk - however, in a sur- prising turn of events, sacked manager Carlo Ancelotti following the match. Chelsea are also through after beating Lille at Stamford Bridge — watched by Hollywood super star Matthew McConaughey. Italian side Inter miss out following defeat to Barcelona and drop into the Europa League where striker Romelu Lukaku could well come up against former side Manchester United. Finally, the world slapping champion suffered a shock defeat in Russia. — AP Abramovich turns down Chelsea takeover offer ROMAN Abramovich is believed to have turned down another offer to sell Chelsea after a takeover approach was tabled by a US financier who part-owns the Los Angeles Dodgers. Todd Boehly, former president of asset manager Guggen- Russia was banned from the Olympics and world championships in a range of sports for four years after the heim Partners, is said to have sent a figure to representatives of World Anti-Doping Agency (WADA) ruled to punish the country for manipulating laboratory data. the Russian last month. The New York-based Wall Street Journal, which first report- ed the approach, claims Boehly's bid fell short of Abramovich's valuation, but the American may yet request further talks. Boehly's spokeswoman has failed to respond to multiple requests for comment. However, sources close to the Russian have subsequently reiterated his position that he has no interest The Russia ban that isn’t in selling up. The Daily Telegraph disclosed last month how the club had effectively been taken off the market. In 2015, Boehly, 46, who studied at the London School of Economics, set up investment firm Eldridge Industries. Three years earlier he was part of a group of investors that bought Ma- jor League Baseball’s LA Dodgers in a deal worth $2.15 billion. really a ban stokes anger - telegraph.co.uk HEN the world’s top anti-doping But the limited reach of the ban left some represented in other sports, though, and won authority announced this week that critics scratching their heads. Russia did not, 19 gold medals. F1 teams reject 2020 Pirelli tyres WRussia would be banned from global for example, lose the right to participate next But track and field officials also stripped sports for four years for continuing violations summer in the quadrennial European soccer Russia of the right to host the 2016 world race of its rules, it trumpeted the sanctions as suit- championships, one of the biggest sporting walking championships and 2016 world junior FORMULA 1 teams have unanimously rejected the tyres ably severe. events in the world, nor the right for Saint Pe- championships. The ban on Russia has contin- proposed by supplier Pirelli for the 2020 season. The Ital- That opinion was not universal. tersburg to host games in the tournament. The ued for four years, with only a handful of Rus- ian company had hoped the new design would be a step To some athletes and anti-doping officials, championship is a continental championship sian athletes allowed to compete at the track forward in plans to introduce less sensitive tyres, on which the punishments put forth by the World An- instead of a world championship, rival nations, and field world championships in 2017 and drivers can push and race harder. But at a test in Abu Dhabi ti-Doping Agency appeared overly accommo- athletes and fans were informed, and thus Rus- 2019. Each time, the athletes cleared to take last week, teams preferred the 2019 tyres. dating and, in certain cases, altogether madden- sia’s global anti-doping punishments did not part had to do so in neutral uniforms. Pirelli said it was convinced of the changes in the 2020 tyres but understood that other factors were involved. A ing. So now, after years of being at least mildly apply. Han Xiao, the chairman of the athletes’ “Doping is already hard enough to prove spokesman pointed out that the 2020 tyre was a different polite in their critiques of the organization that advisory council of the United States Olympic with athletes who aren’t coming from countries profile from the 2019 model and the teams would therefore held Russia’s athletic future in its hands, a few and Paralympic Committee, said many athletes with systemic doping programs,” Xiao said. have had to make changes to their cars at what is a very of them are no longer holding back. from the United States initially had opposed a The World Anti-Doping Agency does have late stage in the design process. He added that there was “With the level of mockery that has taken blanket ban on Russian athletes and teams be- supporters, too. Dick Pound, the Canadian only one year left of the current technical regulations before place, not only of the rules, but those who abide cause they felt sympathy for their counterparts lawyer who served as the first chairman of the major changes planned for the 2021 season and that as a by and safeguard them, it’s hard to understand who may be clean. But Xiao said it was the agency from 1999 to 2007, said the agency result teams were reluctant to change their cars for the tyres, how this could not have warranted the most se- repetitive pattern of cheating and punishment should be given more credit for its work bat- when they are already planning for a much bigger change rious level of sanctioning, ” said Beckie Scott, dating back half a decade — with no apparent tling performance-enhancing drug use. in 2021. – bbc.com a Canadian Olympian and the chairwoman of remorse — that made him believe a harsher “There’s a budding industry of attacking WADA’s athlete committee. “Especially when punishment was necessary. “We need some WADA for not being perfect, usually by people they have the power to do so.” baseline comfort that we’re competing on a who are themselves imperfect and who have Rory McIlroy turns down $2,5m Scott and others in the world of internation- level playing field,” said Xiao, a former mem- no accountability for anyone,” Pound said. “I al sports said they were frustrated with WADA ber of the American table tennis team. “But think if you realistically look at the major inter- RORY McIlroy has ruled out because they had pressed for a blanket ban of with Russia, after all these years, we’re still national progress against doping in sport, it’s competing in next month's all Russian athletes at next year’s Olympics talking about the same thing, which shows that really been at the hands of WADA in the last European Tour event in Saudi and at other major competitions. They said that the behaviour doesn’t change. So at what point two or three years and really no one else.” Arabia, despite being offered such a punishment would have been fitting be- are you going to raise the sanctions so they do And yet, some Russian sports officials have a large appearance fee. World cause multiple investigations had documented really hit them?” sounded unbothered about the prospect that the number one Brooks Koep- how Russia corrupted international sporting Those seeking harsher action could perhaps nation’s name, colours, flag and anthem would ka, Dustin Johnson and Phil events for years. look at the way the World Athletics, the gov- be absent at the 2020 Olympics, just as they Mickelson are among big That cheating culminated with a scheme to erning body for track and field, has handled were at the 2018 Winter Games. names who will be in action at substitute dirty urine samples with clean ones Russia since a 2015 report first confirmed the “We have done this before at the last Olym- the Saudi International in late at the 2014 Sochi Winter Games. When that true scope of Russia’s state-run doping pro- pics,” Dmitry Svishchev, president of Russia’s January. operation was revealed, anti-doping officials gram. curling federation, said this week, according to "It's just not something said, Russia manipulated computer databases World Athletics, then known as the I.A.A.F., Reuters. “There is nothing horrible about this.” that would excite me," the Northern Irishman told the Golf it had promised to turn over as a condition of immediately banned Russian athletes from all The people most frustrated are those who lifting sanctions against the country’s anti-dop- competitions. At the 2016 Olympics in Rio de say they have had to watch the same plot unfold Channel. McIlroy did not deny reports that he had been of- ing agency. Janeiro — where the International Olympic time and again, and who fear the new sanctions fered a $2.5m (£1.9m) fee. Instead, Monday’s ruling most likely means Committee had asked each sporting federation will do little to alter Russia’s behaviour. Amnesty International describes the Saudi regime's hu- competitors from Russia will continue to par- to make its own decision about Russia’s partic- “The perception of this being a stiff punish- man rights records as "heinous" but the country has been at- ticipate in the Olympics impeded only by the ipation — only a single athlete from the coun- ment, it’s just that: a perception,” said Bruce tempting to lure big sporting events to the kingdom, notably inability to wear their country’s uniforms or try competed in track and field, while close to Baumgartner, the president of U.S.A. Wres- last Saturday's world heavyweight boxing title fight between see their country’s flag raised if they win. 70 others were suspended. Russia was well tling. “It’s not the reality.” – nytimes.com Anthony Joshua and Andy Ruiz Jr in Riyadh. — bbc.com