field for investment 1983/84

W.ÏM let's build

. . . from its foundations of a strong economy. Brick by brick, month by month, this country is becoming ever stronger. The firm footings of con¬ fidence and expansion are already well and truly laid. The strength of any construction is its weakest brick — and there will be no such thing in our future development. Pick up some of these bricks for yourself! Taxation. One of the lowestand most stable systems in the world. Investment. The 'ground floor' of the new Zimbabwe structure. Many and varied opportunities for development and expansion in all sectors. Production. Commerce and industry, agriculture, etc. With their individual and outstanding opportunities. Amenities. Education, health services, housing, etc.

— and the best climate in the world in which to build your future in Zimbabwe.

Department of Information, P.O. Box 8150, Causeway. Harare. Zimbabwe. Tel. 703891 Telex 4142 ZW A FIELD FOR INVESTMENT

1983/84

PUBLISHED ANNUALLY IN THE INTERESTS OF ECONOMIC PROGRESS — SELECTIVE WORLD DISTRIBUTION

CONTENTS

page Page

Facts about Zimbabwe 2 Other institutions 17

Vital statistics 3 Private sector 21 Agriculture 4 Transport 22 Mining 7 Energy resources 25 Manufacturing 8 Commercial centres 28 Exports 10 Tourism 40 Banking and finance 11 Rural areas 39

Statistics are taken from official sources and the Economic Survey of Zimbabwe 1980 produced by the Ministry of Finance.

Designed, compiled and published by Thomson Publications Zimbabwe, P.O. Box 1683, Harare Printed by Mardon Printers (Pvt.) Ltd., Bulawayo

PARTICIPANTS

Page Page

Air Zimbabwe 26 Anglo American Corporation in Zimbabwe 13 Information, Department of IFC Barclays Bank 27 Merchant Bank of Central Africa 16 Electricity Supply Commission 34 Oxyco 38 Founders Building Society 10 Standard Chartered Bank 14 Grindlays Bank IBC Zimbabwe Banking Corporation 28 FACTS ABOUT ZIMBABWE

• ZIMBABWE is situated in south central Africa north of the Tropic of Capricorn.

• It has no direct access to the sea except through the Republic of South Africa to the south and Mozambique to the east.

• It is separated from the Republic of Zambia by the Zambezi River and to the west is the Republic of Botswana.

• It has an area of 390 245 square km—about three times the size of England. Four fifths of it is above 600 m and less than a twentieth is 1 500m above sea level, giving a healthy, pleasant climate.

• Population: The provisional figure recorded from the official 1982 census was 7 539 326 with a density of approximately 20 per square km.

• It has good summer rainfall, ample water and electricity supplies, considerable REPUBLIC OF SOUTH AFRICA and well diversified mineral deposits and basic requirements for a viable agricultural industry, which provides more than its basic needs.

• Transport and communications are well developed and social and administrative services are efficient and comprehensive.

• Following the democratic election in April 1980, Zimbabwe was afforded full recognition by the international community and became the 153rd member of the United Nations in August 1980.

• Zimbabwe is also a member of the nine-nation Southern African Development Co-ordination Conference (SADCC), the Organisation of African Unity (OAU) Scale of Kilometres and the Central and Southern African Preferential Trading Area (PTA) which 0 40 came into M 120 ISO 200 240 operation on January 1, 1983. 1 I I I I 1 I

PAGE 2 A FIELD FOR INVESTMENT NATIONAL INCOME $ million STATISTICS Item 1977 1978 1979 1980* 1981*

Wages and salaries 1 248 1 333 1 502 1 881 2 346 Rent AT A GLANCE Imputed for owner-occupied dwellings 24 22 21 19 21 Central and local government 21 22 23 24 26 Total 45 44 43 43 47 Gross operating profit SUMMARY OF EXTERNAL TRADE Unincorporated enterprises 239 221 256 382 504 Companies (non-financial) 479 510 723 968 1 178 $ million Financial institutions 49 54 65 87 104 Public corporations (non-financial) 72 122 84 47 88 Domestic Exports Re¬ Total Total Visible Central and local government—enterprises (inc. gold) exports exports imports Balance (non-financial) 20 21 17 17 19 Less imputed banking service charges —65 —69 —81 —109 -139 1965 292,0 30,9 322,8 239,6 83,2 Total 794 859 1 063 1 392 1 754 1966 171,0 17,0 188,0 169,5 18,6 Gross domestic income (factor cost) 2 087 2 236 2 608 3 316 4 147 1967 176,3 12,1 188,4 187,1 1,3 Plus indirect taxes 223 238 262 315 501 1968 183,8 8,5 192,3 207,1 —14,8 Less subsidies —94 —135 —90 —100 -120 1969 224,0 6,8 230,8 199,5 31,3 Gross domestic income (market prices) 2 216 2 339 2 780 3 531 4 528 Less net investment income paid abroad —41 —40 —53 —41 -110 1970 252,7 6,1 258,7 235,0 23,8 Gross national income (market prices) 2 169 2 299 2 727 3 484 4 418 1971 283,8 6,5 290,2 282,5 7,8 1972 342,9 6,2 349,1 274,7 74,4 Gross national income at 1965 prices. 1 319 1 221 1 183 1 247 1 422 1973 382,8 6,3 389,1 308,6 80,5 1974 524,6 6,5 531,2 438,3 92,8

* The 1980 and 1981 figures are provisional estimates. 1975 523,0 8,2 531,3 461,9 69,4 1976 552,8 4,6 557,4 382,7 174,7 GROSS DOMESTIC PRODUCT AT FACTOR COST BY 1977 : 546,5 4,4 550,8 388,1 162,7 INDUSTRY OF ORIGIN 1978 604,8 4,6 609,3 403,7 205,6 $ million 1979 712,0 3,7 715,7 549,3 166,4

Item 1977 1978 1979 1980 1981 1980 902,7 6,5 909,2 809,4 99,8 1981 964,4 7,3 971,7 1 017,7 —46,0 Agriculture and forestry 334 305 316 462 738 1982 947,7 20,7 968,4 1 081,8 —113,4 Mining and quarrying 149 158 191 267 217 Manufacturing 460 514 679 844 1 098 1982 January 61,1 0,4 61,5 82,5 —21,0 Electricity and water 56 64 67 75 88 February 75,7 0,3 76,0 112,2 —36,2 Construction 84 68 78 84 126 March 70,2 0,5 70,7 81,7 — 11,0 Financial and insurance 102 109 126 161 189 Real estate 47 45 44 43 47 April 69,5 0,6 70,1 83,9 —13,8 Distribution, hotels and restaurants 242 296 367 479 620 May 57,8 0,7 58,5 97,0 —38,5 Transport and communications 184 191 209 230 262 June 92,2 1,2 93,4 79,4 14,0 Public administration 204 241 266 287 352 Education 76 86 98 169 253 July 78,1 2,0 80,1 119,0 —38,9 Health 49 54 63 73 63 August 92,6 1,1 93,7 95,6 —1,9 Domestic services 52 54 53 65 74 September 82,6 1,3 83,9 91,8 —7,9 Other services, n.e.s 113 120 132 185 159 Less —65 —69 —81 —108 —139 October 10,6 97,2 83,0 14,2 imputing banking service charges . 86,6 November 82,4 1,1 83,5 74,9 8,6 Gross domestic product 2 087 2 236 2 608 3 316 4 147 December 98,9 0,9 99,8 80,8 19,0

A FIELD FOR INVESTMENT PAGE 3 Agriculture THE recovery from recession in the western world should stimulate demand for TOBACCO Zimbabwe's agricultural products. Virginia Despite a drought which has been the worst in living memory, Zimbabwe has The 1983 continued to be self-sufficient in its staple diet of maize. Although this year's deliveries crop of 95m kg is likely to achieve an average price of +187 c/kg. Last year for the same fell short of domestic consumption by some 600 000 tonnes, sufficient stocks were in proportion sold the average was 168 c/kg with weekly averages running at -P180 hand to meet requirements until the commencement of next year's intake. c/kg. Hectare intentions for 1983/84 season is 50 513 hectares which is 3 000 hectares Apart from grain producing areas, the beef industry in the southern and western areas above the of the country have been hardest hit by the drought resulting in high demand for slaughter 1982/83 intention. 1 192 growers have submitted tenders compared to 1 177 bookings. returns in 1982. The Zimbabwe Tobacco Association, the growers' organisation, has announced a Tobacco crop target of 110 million kg for 1983/84 and embarked on a programme— has proved that it is the most drought-resistant cash crop and despite poorer with research and trade support—to ensure an internationally marketable quality crop. quality, reasonable prices and good weight will result in excess of $200m being realised from tobacco exports. Burley The Air-Cured Tobacco Association is concerned at a possible loss of growers intending to switch to flue-cured production. Although the Burley average price is only 146 c/kg this year, the 1983/84 guaranteed prices will remain unchanged which with normal quality production would enable Burley growers to achieve averages of 200 c/kg next year. COTTON

Cotton is a major crop for the country, grown by about 50 000 active commercial and communal farmers. After tobacco, the crop is the second largest earner of foreign currency in agriculture—$85 million expected in 1983. About 65 percent of the crop is grown in the commercial farming areas, with a further 35 percent grown in the communal areas. The cotton growing areas of Zimbabwe are situated almost entirely in the Mashona- land and Midlands middleveld between altitudes of 600 metres and 1 200 metres with large quantities also being grown in the Sabi Valley and south-eastern Lowveld, largely below 600 metres. By world standards, production is small—an annual average of approximately 300 000 bales (each 200 kg)—but the cotton has earned a good name for its quality and the marketing system by which it is bought from the farmer and sold locally and overseas. 1983 deliveries will be 170 000 tonnes. Over 80 percent of the cotton lint—as the ginned cotton is known—is sold on overseas markets, mostly to European countries. The cottonseed, which is separated from the lint during the ginning process, is a valuable source of food: 60 percent of Zimbabwe's cooking oils and margarines are made from the expressed seed, while the hulls of the seed are pressed to form a valuable stockfeed for cattle and other livestock. Cotton is recognised as an important crop for rural development for several reasons:— • A large portion of communal farming land is situated in marginal rainfall areas— cotton thrives in these drier conditions; • Cotton production does not require a high level of capital investment to produce. Only traditional tillage equipment is required to plant the crop, no equipment or facilities are required to reap or prepare it for market; • Being an industrial crop, cotton is not consumed by the grower, ensuring that it is marketed for a cash return. This brings its growers into the cash economy. The overall cotton industry—on the farms, in the CMB, in related industries— employs about 500 000 people.

FA ÍiE A FIELD FOR INVESTMENT GRAIN

Indications are that there are 20 000—22 000 hectares of wheat in the ground, with general yield estimated at 4 tonnes per hectare. Barley estimate is 3 000 hectares with an intake of approximately 13 500 to 15 000 tonnes. The total maize intake is likely to be 610 000 tonnes as opposed to over 2m tonnes in 1981 due to this second year of drought. COFFEE

This commodity has become an important foreign exchange earner with $ 14,7m realised in 1982. The forecast in foreign exchange for 1983 is estimated at $22m, with about 10 000 hectares of the crop planted. Zimbabwe is a member of the International Coffee Organisation with a quota for the marketing year, 1st October, 1982 to 30th September, 1983 of 5 642 tonnes. With the current crop estimated to yield approximately 10 000 tonnes against an ICO quota for the 1983/84 season of 4 681 tonnes, off quota sales will be between 50-60 percent of production with discount below the quota price. BEEF

This year's drought—the worst ever—has resulted in a setback to the rebuilding of the national breeding herd—a process which was clearly taking shape in 1981. Zimbabwe is well suited to beef production under a variety of systems. The drier southern parts of the country provide excellent quality grazing and provided the resources are properly managed a high level of beef production can be sustained. This is amply demonstrated in areas where a high level of fencing and water development has taken place allied with good range management, and where stock numbers are kept within the limits of the assessed grazing capacity. In the higher more reliable rainfall areas of the country cattle numbers are still increasing and there is still great potential for further expansion. The national herd increased over the years to a peak of 6,6 million head in 1977 and has since dropped back to about 5 million head at present. Annual slaughterings are at present just over half a million head, having reached a peak of 725 000 head in 1978. About 85 percent of all slaughterings are handled by the Cold Storage Commission. The Commission is the country's parastatal beef marketing organisation, and operates factories in Bulawayo, Masvingo, Kadoma, Marondera and Chinhoyi, a small abattoir in Mutare, a cold storage in Gweru and a sales service branch in Harare. The CSC also handles cattle sales in the communal areas on behalf of Government and acts as residual buyer at Government guaranteed prices. It also handles a variety of cattle finance schemes which help newcomers into the industry and generally help to give the industry stability. Beef exports, handled solely by the CSC, have been limited in recent years but new expanding population and demand, is experiencing a very positive growth programme opportunities to export to the EEC by virtue of the Lome Convention should be available which aims at seeing Zimbabwe self-sufficient in its dairy requirements in the shortest in the near future. The immediate target is the supply of the 8 100 tonne quota but this possible time. figure is likely to increase considerably. Recent developments include the completion of the multi-million dollar "long life" The country has a wide variety of beef breeds of very high quality both of Bos indicus milk factory complex at Chipinge and the introduction of a bulk milk collection system. and Bos taurus origin, as well as three well adapted, highly fertile indigenous breeds Heading the expansion plan is the Dairy Marketing Board, the country's national milk which are being improved and sustained by a small band of dedicated breeders. These collection, processing and marketing authority. breeds could well play a much greater role in the future. Milk intake to the DMB has increased from 141 million litres in 1978/79 to 155 DAIRY million litres in 1981/82 and 178 million litres in 1982/83. This production has been achieved from approximately 43 000 milking cows averaging approximately 4 000 kg The dairy industry, faced with the challenge of catering for the needs of a rapidly per annum.

A FIELD FOR INVESTMENT PAGE 5 OILSEEDS

Oilseed crops in Zimbabwe are produced primarily to satisfy the local demand for vegetable oil with surpluses being exported as oil and meal and sometimes in the raw state. Production at present is 35 000 to 40 000 tonnes which is estimated to be some 15 000 tonnes below present demand. Cottonseed at 113 000 tonnes in 1983 is the major raw material contributing approxi¬ mately 50 percent of the processed oil, the balance coming from soyas, groundnuts, sunflowers and maize oil. Soya bean production has reached the 80 000 tonne mark and, but for the drought, would have been in excess of 100 000 tonnes in 1983. Zimbabwe's average soya yields are amongst the highest in the world from varieties bred locally. The rotational benefits from growing soyas are well known and farmers grow them in rotation with wheat, maize and cotton. After reaching a peak of 25 000 tonnes sales in 1977, production of sunflowers dropped to approximately 4 000 tonnes in 1983. The decision by Government to control sunflowers, thereby fixing the producer price, should lead to expansion in all sectors. The small-scale farming sector produces the major part of the crop, normally 50 to 60 percent of the total and it has been as high as 95 percent.

PAGE 6 A FIELD FOR INVESTMENT Mining

IN KEEPING with many other mineral producing countries—particularly in Africa— Zimbabwe has suffered severely as a result of the world economic recession during the past 12 months. For the second year in succession, the value of mineral production fell by 2,75 percent in 1982 to just over Z$383 million—nearly $10'/2 million less than in 1981 and nearly $32 million less than the record year of 1980. But Government and the private sector have accepted the situation with pragmatism and according to the latest Government calculations the value of mineral production for the first six months of 1983 already stands at $216 million—a 19 percent increase over the same period last year. This is attributable in some measure to the upturn in the price of gold which, at the breakeven point of around US$400 an ounce, is a great improvement on the 1982 figures. The devaluation of the Zimbabwean dollar by 20 percent against other world cur¬ rencies at the end of 1982 also had an immediate beneficial affect on the mining industry The country has numerous minerals which are vital to modem technology such as in general. lithium, platinum, tungsten and tantalum. In all, Zimbabwe produces more than 40 In addition to gold production which is currently running at 12 tonnes per annum the different minerals in one form or another for which there is a global demand. other major currency earners are asbestos, nickel, copper, ferro chrome, iron and steel. More than 90 percent of the mineral output is destined for export, either directly or as a During the year, the Minerals Marketing Corporation was established for the purpose component of manufactured goods. But because of the problems associated with export¬ of becoming the sole marketing agent for all the country's minerals. It is running ing materials from a land-locked country, mining houses have been asked to find ways smoothly and consolidating its position with the co-operation of the mining companies. and means of utilising more of the country's mineral resources for manufacturing The Mining Development Corporation has also been established as the Government's purposes. investment arm in mining. Meanwhile, the search for new and exploitable minerals continues, and although the number of Exclusive Despite the recession, international interest in Zimbabwe's mineral potential has Prospecting Orders has fallen away in recent months, mainly for financial reasons, the future prospects cannot continued and massive injections of foreign currency have been pledged or loaned. for Zimbabwe be exaggerated. When the volume of foreign investment regains its momentum, Zimbabwe will Most notable among these has been the Z$128 million for the Hwange (Wankie) certainly be one of the countries to which investors will turn. colliery expansion programme which will fuel the Electricity Supply Commission's thermal power station along a 3,5 km conveyor from the company's open cast mine. Up By that time, many more Zimbabweans will have been trained to fill key posts and to 250 000 tonnes of coal will be stockpiled on site. help increase the prosperity of the country. Others include a Z$600 000 coal feasibility study financed jointly by the EEC and the Production figures of the six main minerals in Zimbabwe in 1982, with the figures for European Bank, the Canadian Geophysical study agreement costing Z$9 million and the first tliree months of 1983 in parentheses: gifts of vehicles and equipment from West Germany and other countries. Gold: 426 000 ounces, $122 million (100 000 ounces, $45 million) Unlike some countries in Africa, Zimbabwe is endowed with a large variety of Asbestos: 197 000 tonnes, $ 76 million ( 39 000 tonnes, $17 million) minerals which will inevitably prove an irresistible magnet for world investment in the Copper: 25 000 tonnes, $ 39 million ( 3 000 tonnes, $ 6 million) future. These include gold, asbestos, nickel, copper, chrome and iron, in addition to Coal: 2,7 million tonnes, $ 35 million (737 000 tonnes, 8 limitless supplies of coal. $ million) Chrome: 431 000 tonnes, $ 19 million (102 000 tonnes, $ 6 million) Apart from Wankie, which has been mined for years, there is reputed to be more than 20 coal deposits which have yet to be exploited. Nickel: 13,3 million tonnes, $ 50 million (2,3 million tonnes, $ 8 million)

PAGE 7 A FIELD FOR INVESTMENT Manufacturing

ZIMBABWE'S manufacturing sector occupies a pivotal position in the economy, This decline has resulted from both demand and supply constraints. Growing strains making the largest single contribution of any sector to gross domestic product and being on the balance of payments led to cuts in foreign exchange allocations to manufacturers critically interlinked with other key sectors—agriculture, mining and construction. for raw materials and capital equipment needs. 1982 saw the first decline in manufacturing production since 1977, with only food¬ This, together with a 20 percent currency devaluation, a raised import surtax from five stuffs, chemical and petroleum sub-sectors showing any expansion in volume over the to twenty percent from 1982 to 1983 and the rising costs of imports, has reduced normal allocations previous year. by half in the two years prior to the end of 1983. Part of this shortfall has been made up through increased access to commodity import programmes of donor countries. Several deflationary forces have affected demand: sales tax increases, a wage freeze while the average consumer index rose over 25 percent, higher excise duties on beer and tobacco products, increased and broader based income tax. Part of the decline in domestic demand has been compensated for in a number of sub-sectors—such as footwear and pharmaceuticals—by a package of incentives that have boosted manufactured exports. These have included the devaluation of the Zimbabwe dollar, a two-tiered tax free bonus to exporters, the implacement of a US$70,6 million World Bank loan providing access to foreign exchange for imported raw materials needed for export, operative from April 1983 to the end of 1984, and an extension from 90 to 180 days for payment for exports from Zimbabwe. Perhaps the best indication of an underlying confidence in the future of Zimbabwe's manufacturing sector lies in the data on investment: in 1982 and in spite of the recession, over Z$170 million was invested in manufacturing while subsidiaries of foreign-owned companies invested well in excess of Z$70 million. In the three year period 1983-1985, a survey carried out in mid-1983 by the Confed¬ eration of Zimbabwe Industries shows investment plan requirements of over Z$280 million a year at fixed 1982 prices for the sector, over 70 percent of which is expected in the foodstuffs, chemical and metals and metal products sub-sector. Institutionally a number of recent or pending developments having a direct bearing upon manufacturing should be noted. The para-statal Small Enterprise Development Corporation, SEDCO, has been established to promote small-scale industrial enterprises and favouring co-operative enterprise outside the main centres of the country. The Zimbabwe Development bank, with Z$50 million capital, 50 percent external and 50 percent Government, will be established in early 1984 to promote industrial projects in the country.

PAGE 8 A FIELD FOR INVESTMENT Commerce

IN 1983 a single National Chamber of Commerce was formed. The Zimbabwe National Chamber of Commerce came into being as a result of a unification of several former chambers of commerce. It is a private sector organisation, and its creation was strongly supported by Govern¬ ment which wished to consult with one broadly based and representative organisation within the commercial sector. Branches of the new association have been established in the major urban centres of Zimbabwe, as well as in many of the rural areas where the process of forming new branches is continuing. The formation of the new Chamber has enhanced its contact and liaison with the Government. Trading patterns in Zimbabwe have changed substantially during 1983, and with tougher economic conditions manifesting themselves there was a decline in the purchase of consumer durables. The severity of last season's drought reduced spending power, particularly in the rural areas, and this, coupled with higher taxation and inflation resulted in a further decline in postponeable expenditure. Recent increases in the price of several basic food commodities, which is in line with Government's policy of phasing out subsidies, will harden the trend towards the purchase of essential items only. This in tum is having a marked effect on the viability of rural traders, whose profit mix—which is now heavily reliant on low mark-up essentials as opposed to higher mark-up soft goods and durables—is such that in many cases the business is threatened. In the light of these developments it is not surprising that a number of traders are in financial difficulty and a number have, indeed, failed. The larger wholesaling and retailing outlets, because of their higher turnovers and broader based infrastructures, are sufficiently viable in most cases to weather the current depressed trading conditions. The commercial sector looks forward to the establishment of the Small Enterprises Development Corporation (SEDCO) which has been announced by Government, and which is anticipated will provide training, consultancy and financial assistance services to suitable small business projects. This is particularly welcomed because of the very great need to establish well organised and efficient commercial outlets and services in the rural areas. With a good agricultural season in 1983/84 and an easing of the effects of the world recession, business activity will gradually improve and a long anticipated increase in foreign exchange earnings might be realised. The commercial heart of Harare bustles with activity.

A FIELD FOR INVESTMENT PAGE 9 Exports GET IT. TOGETHER WITH

FOUNDERS ZIMBABWE'S exports declined in value in 1982 to $968 million compared to $972 million the previous year, and showed a greater relative dependence on a number of individual products. Exciting things are happening at Whereas 22 percent of export earnings was derived from gold and tobacco in 1979, Founders these days and we're paying this figure rose to 42 percent in 1982, and returns from the country's ten leading export commodities the (gold, tobacco, ferro chrome, asbestos, sugar, cotton, iron and steel, highest interest rates we've ever nickel, maize and copper) increased to 82 percent that year from 70 percent in 1979. paid. And that means that when you As before Independence, South Africa continues to be the single largest country market for Zimbabwean save with us, we pay for a bigger part of exports, accounting for 17 percent of all exports in 1982. However, as a trading area the EEC is both a larger market and, on recent evidence, a your next purchase than ever before. more stable one. In 1982, exports to the main EEC countries amounted to 31 percent of Open an account with us all exports, there being a 6 percent decline in value between 1981 and 1982 compared with 28 now. percent fall in exports to South Africa in the same period. FOUNDERS Member countries of the Southern African Development Co-ordination Conference (SADCC) have taken an important share of Zimbabwe's exports since Independence. The main SADCC countries (excluding Angola, Lesotho and Swaziland) purchased $88 million of Zimbabwe's exports in 1982, 11 percent of the total. FOUNDERS BUILDING SOCIETY Prospects for agricultural exports are mixed after two successive years of drought, while those for mineral exports look better with the world economy apparently set for recovery. A market causing considerable interest to Zimbabwe manufacturers is the Middle East and preliminary surveys indicate great potential for foodstuffs, furniture and BARKER. McCORMAC FBS 221 pharmaceutical products.

PAGE 10 A FIELD FOR INVESTMENT Banking and Finance

THE financial and banking sector has been one of the main reasons for the develop¬ ment of the nation's commerce and industry. A well established commercial banking system is augmented by a sophisticated secondary money market in the form of discount houses, merchant banks and finance houses under the umbrella of the Reserve Bank.

RESERVE BANK

AT the heart ofZimbabwe ' s banking and financial structure lies the central or Reserve Bank. Established in 1964 in terms of the Reserve Bank Act, the Reserve Bank, in keeping with the traditional responsibilities of central banks, acts as banker to the Government, to certain statutory bodies and to the country's banking and financial institutions; is responsible for the issue of currency; administers the issue of Government loans and treasury bills and manages the loans' sinking fund. It also manages the clearing house for the commercial banks which keep accounts with the Reserve Bank, controls the country's foreign reserves and acts as lender of last resort to the financial institutions. It administers the exchange control legislation and handles Zimbabwe's gold output. Although the Reserve Bank is charged with all the powers traditionally vested in central banks to control and direct official monetary policy, it is of interest to note that it has rarely had cause to resort to drastic measures in recent years but has chosen rather to rely on moral suasions and on interest rate changes to achieve its desired objectives. Moreover, the commercial banks have, in compliance with official policy, pursued a credit policy aimed at restricting certain classes of lending for purely consumptive purposes in favour of lending to the productive sectors of the country.

BARCLAYS BANK OF ZIMBABWE LIMITED BARCLAYS Bank was established by Royal Charter in 1836 as the Colonial Bank to operate, at that time, mainly in the West Indies. Recognition of trade within the Commonwealth led to a merger under the Colonial Bank Act in 1925 with the National Bank of South Africa and the Anglo-Egyptian Bank to form Barclays Bank (Dominion, Colonial and Overseas) which later changed its name to Barclays Bank DCO. In more recent years Barclays Bank DCO and Barclays Bank Limited greatly expanded their fields of activity, and the possibility of a conflict of interests became increasingly evident. To avoid duplication of effort, it also became essential to rationalise the foreign and international business of the group to ensure the maintenance The First Street branch of Barclays Bank in Harare. of growth and an increase in profitability.

A FIELD FOR INVESTMENT PAGE 11 With this objective in view, Barclays Bank DCO amalgamated with the Foreign latter's 61% shareholding. Branches of Barclays Bank Limited in October 1971, to form one of the largest Among the milestones in the bank's history in this country is the introduction of international banking groups in the world, making possible the concentration of all computerised accounting in May 1971, with a direct link being established with foreign and international business under one operational company. To reflect this wider Bulawayo in 1975. By the end of October 1983 all branches of Zimbank throughout the scope of operations, the name was changed to Barclays Bank International Limited. country were linked to the main computer in Harare, and this is another significant first in the The Bank of Africa Limited opened an office in what was then Salisbury, Southern banking arena. The Commercial bank has a total work force of Rhodesia, in 1895; and this bank was taken into the Barclays fold in 1912. slightly less than 900 and the group's overall number of employees is well in excess of 1 000. The bank is represented all On June 1st, 1981, in keeping with group policy, the assets and business of Barclays in Bank International Limited in Zimbabwe were transferred to a locally incorporated major centres in Zimbabwe and has recently established services in Kamativi, Inyanga and Sanyati. Through the Commercial Bank branch network, the services of all sub¬ company, Barclays Bank of Zimbabwe Limited, a wholly owned subsidiary of Barclays Bank International Limited in Britain. sidiary and associate companies are available on a countrywide basis. The Zimbank Group has arrangements with over 300 of the major Barclays in Zimbabwe, through its worldwide group network, is thus placed in a banks in 80 countries in the world. It is a wholly owned Zimbabwean bank and as such has no parent position in to more international banking of being able offer diverse and unrivalled to direct its overseas services both to the individual and to the largest of international companies. operations. The Zimbank Group is able to offer competitive rates to importers and exporters on a day-to-day basis. The group is active in off-shore financing In Zimbabwe, the benefits to the public have become increasingly evident as the bank in respect of both exports from and imports to Zimbabwe. is able to incorporate the most modem methods in banking and to take advantage of information gained from the group's worldwide network. Barclays has for many years also provided a wide range of services through its trustee branches in Harare and STANDARD CHARTERED BANK ZIMBABWE LIMITED Bulawayo. To establish wider and more efficient operations in this field, Barclays Bank International Executor and Trust Company (Pvt.) Limited was registered in January AS ZIMBABWE steadily consolidates her position as a major force in independent 1972. with this name being changed to Barclaytrust in 1981. Africa, Standard Chartered Bank Zimbabwe Limited is well placed to play a leading role Barclays has been closely associated with the mining industry for many years and is in the country's development. It is the largest commercial bank in the country with assets the only bank in Zimbabwe that can realise gold bullion. of over Z$525 million and a network of more than 50 branches and agencies covering 23 With its Bullion and Chemical Analysis Division laboratory in Harare, Barclays is the cities, towns and rural growth points throughout the country. only commercial bank in the country that can carry out gold and mineral analysis. At the same time, specialist services are provided in the merchant banking field and in Having the most sophisticated equipment, including atomic absorption spectropho¬ the leasing and hire purchase fields by its associate companies, Standard Chartered tometers, the laboratory is able to provide a chemical analysis service and geochemically Merchant Bank Zimbabwe Limited and Standard Chartered Finance Zimbabwe Limited. analyse soil samples taken from exclusive prospecting orders. Arrangement for these The Bank also has a minority shareholding in an insurance broking company with services can be made through any branch of the bank. international connections, Sedgwick Forbes (Africa) (Private) Limited. Barclays Marketing Division, based in Harare, will obtain for the manufacturer, But perhaps the Bank's most valuable asset for new ventures in Zimbabwe, as well as importer and exporter confidential information on the financial standing of companies, for local businessmen establishing new trade links with the rest of the world, is that firms or individuals in Zimbabwe and overseas. In its truly international context, Standard Chartered Bank is part of the Standard Chartered Bank Group, which has more Barclays is particularly well equipped to provide this service, and by the same token to than 1 900 offices of subsidiary and associated companies in 63 countries in Europe, the handle enquiries regarding potential overseas markets and sources of supply or demand. Americas, Africa, the Middle East and Asia. Backed by worldwide representation, the bank is well placed to finance imports and It is equipped to provide the fullest banking and financial services, and its interna¬ exports, both to safeguard all the parties concerned, and to ensure immediate payment tional connections are vital in building up the two-way trade that has followed once the contract is fulfilled. Zimbabwe's international acceptance, new diplomatic contacts, associate membership More recently, Barclays formed a Corporate Finance Division based in Harare. This of the European Economic Community and full membership of the Southern African division is able to give advice on company mergers and acquisitions, provide acceptance Development Co-ordination Conference. credit and medium-term finance for commerce and industry, and is well placed to Standard Chartered Bank celebrates its 92nd anniversary of service to the community arrange overseas finance in Euro-currencies and through export credit schemes. and the State this year. The accumulated knowledge and experience of trade and business in this part of Africa is available to all who wish to do business with Zimbabwe. Zimbabwe Banking Corporation Limited The Bank's Corporate Business Department was among the first to establish a general line of credit for Zimbabwe importers, and it has advised travelling executives of THE Zimbabwe Banking Corporation Limited owes its origins to the opening—in business techniques and opportunities around the world. Harare on October 1, 1951—of a branch of the Netherlands Bank of South Africa In addition to multi-national agreements, reports can be prepared for exporters on the Limited. credit-worthiness of prospective customers. Information on documentation and Further branches were opened in Bulawayo, Mutare and Gweru in 1952, 1954 and exchange control regulations is readily available. Contacts may be arranged within 1956 and now in 1983 the Bank operates a total of 32 branches and offices throughout the Zimbabwe, or elsewhere in the world. country. Visitors to Zimbabwe assessing business opportunities may seek information and In February 1981, an agreement was signed between the Government of Zimbabwe advice on planning their itinerary, guidance on the establishment of new companies or and Nedbank Limited, in terms of which the Government of Zimbabwe acquired the subsidiaries and letters of introduction.

PAGE 12 A FIELD FOR INVESTMENT THE BANK OF CREDIT AND COMMERCE ZIMBABWE LIMITED

THE Bank of Credit and Commerce Group began operations in 1972 with branches in Abu Dhabi, Luxembourg and London. Today, it has presence in five continents covering 61 countries with 69 offices in Europe, 90 in the Middle East, 66 in Africa, 43 in the Far East and South East Asia and 15 in North America, Latin America and the Caribbean. The Bank of Credit and Commerce Zimbabwe Limited has branches in Harare, Bulawayo, Kwekwe and Chitungwiza. Branches in Mutare and Highfields will be opening shortly.

We mine Banking act we make we plough Banks in Zimbabwe are controlled in terms of the Banking Act of 1964 which, inter alia, specifies banks' capital structure, liquidity requirements and statutory reserve we build balances. In terms of the legislation: we train our people • The commercial banks in Zimbabwe are obliged to maintain a paid-up capital and unimpaired reserve fund of not less than $ 1 000 000. to grow help Zimbabwe • They must invest a minimum of 35 percent of their liabilities to the public in prescribed liquid assets. ANGLO AMERICAN • They must maintain minimum reserve balances with the Reserve Bank which CORPORATION currently amount to eight percent of demand deposits and four percent of time deposits. Apart from legislative control of banking activities in Zimbabwe, the banks IN ZIMRABWE themselves have entered into an agreement, known as the Register of Co-operation, in terms of which the banks act as a cartel in fixing the interest rates which they pay on deposits and the charges which they levy for the services they provide, including the rate of interest on advances payable by different categories of borrowers.

PAGE 13 A FIELD FOR INVESTMENT HILL SAMUEL AND COMPANY LIMITED

N M ROTHSCHILD & SONS LIMITED L'EUROPEENNE DE BANQUE SOCIETE FINANCIERE POUR LES PAYS D'OUTRE-MER BANQUE BRUXELLES LAMBERT S A BANQUE NATIONALE DE PARIS S A 1 DRESDNER BANK A G

MEDIOBANCA S p A

With the right backing everything is possible

It enabled us to be the first bank to get a UK ECGD general purpose credit for Zimbabwe and the only bank to get a USA EXIM-BANK general purpose line of credit. Furthermore, we have arranged numerous other external facilities to Finance imports into Zimbabwe and also a revolving facility to finance Zimbabwe tobacco exports. In addition, it enables us to handle all aspects of domestic merchant banking.

MERCHANT BANK OF CENTRAL AFRICA LIMITED (Registered Acceptance House Since 1956) Livingstone House, Samora Machel Avenue, P.O. Box 3200, Harare, Zimbabwe. Telex: 4258 Telephone 703211

SSC&B:LINTAS 4099 Other institutions

MERCHANT BANKS

FOUR merchant banks operate in Zimbabwe, Merchant Bank of Central Africa, RAL Merchant Bank, Syfrets Merchant Bank and Standard Merchant Bank. They provide a full range of services including acceptance credits, medium-term loans, investment advice, capital issues and underwriting, mergers and amalgamations, company broking and participation bonds. Recently much of their activity has been in arranging lines of credit abroad,^on a revolving basis, in order to get the most favourable payment terms for importers and so stretch meagre currency allocations to the maximum. They have also become heavily involved in the biggest agricultural export, tobacco, through short term finance for merchants who now have to receive payment for any consignment sold abroad within a week of it being loaded onto rail wagons.

FINANCIAL INSTITUTIONS

THESE have probably developed the most of any of the banking related institutions in the last 20 years. The six houses have total assets of $177 million, a decrease of 4,3 per cent over 1981. Four are subsidiaries of commercial banks. There are also unregistered finance companies owned by large motor companies. Hire purchase for vehicles and other consumer goods was the main activity for many years. But in recent years lending has taken a turn towards more long term business such as leasing, lease-back and factoring. This last is an increasingly popular method of dealing with debtors.

The volume of hire puchase business stood at $112 million at the end of 1982, One ofseveral new buildings in Harare — the headquarters ofLegal and General compared with $ 106 million at the end of 1981. Assurance, on Juluis Nyerere Way.

A FIELD FOR INVESTMENT PAGE 17 DISCOUNT HOUSES

THERE are two, Bard Discount House and DCZ Discount Company. They suffered particularly badly from the two increases in interest rates in 1981. Much of their money was in long term paper and this took a capital loss when rates went up. At the end of last year their combined assets had fallen by just under 5 per cent to $ 104,7 million. Trade Bills have shown a tremendous increase while holdings of Government stock have fallen dramatically from $25 million at the end of 1980 to only $ 100 000 at the end of 1981. Known as the secondary money market, they provide a service for call money to be deposited and this forms part of the prescribed liquid asset ratio. Non-banking institu¬ tions are not allowed to place money at call themselves but can arrange with commercial banks for extra funds to be invested on their behalf.

BUILDING SOCIETIES

THERE are three building societies in Zimbabwe, Beverley, Founders and Central Africa Building Society. The total assets as at 31 December 1982 exceeded $643 million and mortgage advances totalled over $444 million. Their top rate of yield is 11,25 per cent for paid up permanent shares. Fixed deposits earn 10 per cent for 24 months while savings deposits, calculated on the daily balance, provide 7,77 per cent and have a maximum of $50 000 for companies and individuals. The mortgage rate for residential properties over $12 000 is 13,25 per cent and 12,5 per cent for loans under this amount. Commercial property mortgage rates are 14,75 per cent. Building societies are required to hold 20 per cent of their liabilities in the form of prescribed liquid assets, as defined in the Building Societies Act. This means they have become an important source of financing for the Government as well as the private sector. The proportion of investments in Government and Local Government was as at 31 December 1982 14,20 per cent against 16,8 percent as at 31 December 1981.

FOUNDERS BUILDING SOCIETY

FOUNDERS Building Society, which was established through the enterprise of Sir Albert Robinson, was registered on February 12th, 1954, and commenced business on May 3rd in that year. Founders, with its Head Office in Harare, has always been a truly national building Society and has developed 18 branches and sub-branches and many agencies throughout Zimbabwe. It employs about 250 people. From its beginning, Founder's aim has always been to provide a full range of building society services and firmly establish a name for security and friendly service. Local knowledge in each area where it is represented was considered most important, and at an early date local boards of directors were appointed and branch offices built or purchased. In consequence, the Society now owns premises in Bindura, Bulawayo, Masvingo, Kadoma, Gweru, Marondera, Kwekwe, and has recently completed a new branch office in Mutare. The Society commenced business with an initial capital of $ 100 000 and after only 11 months' operations the assets had increased to $1 million. By the time the Society celebrated its 25th anniversary in 1979, the assets exceeded Z$100 million. At the present time the Society's assets exceed Z$124 million and its reserves are in excess of The headquarters of the Agricultural Finance Corporation in Harare. Z$35,6 million.

PAGE 18 A FIELD FOR INVESTMENT The Post Office Savings Bank

THE Post Office Savings Bank commenced operations in January 1905, and in the first year a total of 811 depositors invested $35 000 and withdrew $ 13 000. By the end of May 1982 there were 720 000 depositors earning between them an interest figure of more than $20 million. The number of transactions throughout the country on an annual basis rose from 2,72 million in 1981 to 3,33 million in 1982, an increase of 22,43 percent, and by September 1982 deposits totalled $349 million. At the end of the same period, in September 1983, the number of transactions had risen to 4,34 million, and the deposits totalled $359 million. The annual interest rate on savings accounts is 7,5 percent and 8,5 percent on fixed deposits.

TRUST COMPANIES

Zimbabwe Credit Insurance Corporation Limited ORGANISATIONS prepared to administer assets in Zimbabwe on behalf of local residents and principals in other countries are: THE Zimbabwe Credit Insurance Corporation Limited was established in 1965 by 11 Barclaytrust (Pvt.) Limited. leading financial institutions, to underwrite both the commercial and the political risks of Grindlays Executor and Trust Company Limited non-payment by foreign buyers. N.B.R. Executor and Trust Company Limited From 1967 until early 1977, Domestic Credit Insurance was also offered, but this was Sagit Trust Limited suspended for reasons pertinent at that time. However, with the return to normal trading Syfrets Trust and Executor Limited conditions, this facility is again available to Zimbabwean manufacturers and Von Seidel Grindlays Trust Company Limited businessmen. Buluwayo Board ofExecutors and Trust Company Limited Zimbabwe's need to export—and to find new markets—has never been more pro¬ Trust and executor management is also undertaken by legal firms and accountants. nounced, but at the same time, the risks of non-payment of export accounts is increasing to the extent that many businessmen are unwilling or unable to take them. MAIN SECURITIES By underwriting these risks, the Corporation enables the exporter to exploit to the full, new and existing markets with confidence. The risks covered include non-payment aue THE five most commonly used forms of investment in securities are Treasury Bills, to commercial as well as political causes, and the latter are re-insured with the Zimbabwe Agricultural Marketing Authority Bills, bankers' acceptances, short-dated public sector Government, with whom the Corporation—a private organisation—has a very close stocks and negotiable certificates of deposit. working relationship, and is thus well placed to advise on all matters pertaining to the Treasury bills are tendered for once a week and usually have a life of 91 days. The development and encouragement of exports, and to represent the interest of exporters at rates reflect the amount of liquidity at the time. the highest level. AMA Bills run for 180 days at a fixed price. This is determined after consultation with Similarly, through its strong connections with private banking and financial sectors, the Reserve Bank and Treasury. the Corporation to is able offer advice and assistance to exporters in the field of export Bank acceptances, mainly held by the merchant banks, are sold by the discount houses financing. at rates above those on treasury bills. The abnormal growth in domestic sales during the first two years of Independence Liquidity is the overriding factor in a country where public sector spending needs brought with it new to to cope challenges and problems businessmen trying with the often mean a squeeze all round. For this reason several types of money instruments have unprecedented demand in this sector. Now, with the general down-turn and increased been developed for short-term investments. Negotiable certificates of deposit are one of inflationary pressures within this market, scarce capital resources must be carefully these, having been introduced in 1970 and discount houses provide a brisk conserved in order that business enterprises remain viable and continue to achieve a rate trade. In fact short-term money has become of exceeding importance because of uncertainty of growth which is so necessary for the expansion of the economy. over interest rates. Capital tied up in debtors is obviously at risk, and while careful credit management For more than 20 years interest rates stayed the same with the bank rate being 4,5 can lessen this, a Domestic Credit Insurance policy largely eliminates the danger of doubtful accounts entering the system, and provides protection against unforeseen percent and the minimum overdraft rate 7,5 percent. Then there were two hikes in one year, defaults or insolvency. with the bank rate going to six percent and then nine percent. PAGE 19 A FIELD FOR INVESTMENT Agricultural Finance Corporation THE Agricultural Finance Corporation was established as a statutory body in 1971 to provide a loan service tailored to meet the needs of farmers. It is the policy of the Corporation to keep repayment terms and loan conditions as flexible as possible and each application is considered on its merits. In considering applications for loans, the Corporation places emphasis on the viability of propositions in relation to the scale of operations, the value of the security offered and the ability of the farmer to cope with the programme planned. AFC finance may take the form of short, medium and long term loans Long terms loans are available for capital costs such as the purchase, development and improvement of land and water resources, the construction of buildings, including labour housing units and other permanent improvements and the purchase of livestock for breeding purposes. The amount which may be granted for purposes other than the purchase of livestock is normally limited to a percentage of the Corporation's mortgage value of the property offered as security, including permanent improvements. Loans are redeemable by regular equal instalments which provide for the payment of interest and a portion of the capital sum so that at the end of the period the loan is fully repaid. Medium term loans are provided for irrigation works, stock watering facilities, fencing, bush clearing, farm buildings, machinery, implements and livestock. These loans may be granted on the security of notarial bonds over moveables and/or reservation of ownership by the Corporation of the livestock or equipment purchased, on the same lines as hire purchase, together with any other security which may be required. Short term loan facilities are granted for the purchase of fertiliser, crop chemicals and fuel, the payment of labour, crop production expenses generally, and the purchase of cattle. These loans are repayable within periods of up to 24 months by means of high priority stop orders over the crops, produce or stock sales. Other forms of security may also be required.

Farming Loans Loans are also available to tenant farmers of proven ability able to make some capital contribution towards a viable fanning venture. The Government is prepared to consider providing guarantees for loans to emergent farmers wishing to purchase farms in the commercial fanning sector where the applicant cannot meet the Corporation's normal criteria regarding the minimum capital contribution. Viability of the project must be established and recommended by the AFC. Both seasonal crop loans and development loans are available to small scale farmers who hold title or agreements of lease of former purchase land farms, and also to peasant farmers or groups of farmers in the communal lands who are registered and experienced producers. Because of the specialised nature of small scale farming, the loan requirements of these farmers are dealt with by separate branches of the AFC, under the Small Farm Credit Scheme and the Resettlement Credit Scheme. The latter scheme has been established by the AFC to provide credit to settlers under the Government resettlement programme. Short term loans to all other categories of farmers are at 13 percent per annum (prime rate). All loans by the AFC, except those to communal lands and resettlement farmers, are The AFCplays its part in the production ofmost of the crops grown in Zimbabwe. subject to the borrower participating in a group life assurance scheme. Coffee is now being exported and is grown in the eastern part of the country.

PAGE 20 A FIELD FOR INVESTMENT PRIVATE SECTOR

ZIMBABWE is a country rich in natural resources and with a well-organised infrastructure to help back up and develop the manifold opportunities available. It is the comparative sophistication of this infrastructure which perhaps distinguishes Zimbabwe from other developing countries. The private sector still dominates the main stream of economic activities and plays a MULTINATIONALS major role in the development of the mines and in the production of minerals on which this country depends to such a large extent for its exports. MULTINATIONAL corporations have a clear investment policy to guide them in Zimbabwe. The The majority of agricultural produce—tobacco in particular—is grown on farms run Foreign Investment Code, published in October 1982, defines a foreign investor and more by individuals or locally incorporated private companies, and many of these commercial important still, a foreign-owned company, as one whose equity is at least 15 farmers are embarking on ambitious expansion plans despite the disastrous droughts of percent owned outside the country. the last two years. There are some significant changes to the Growth with Equity document which was It is from the private sector that 85 percent of the manufacturing and industrial the original investment blueprint. Foreign investors have to get permission from the production emanates, from individual concerns plus private or locally incorporated Foreign Investment Committee for all plans to set up a new project here. companies, many of which have a large element of external control. Also the FIC has to be consulted if any shares in a domestic company are to be bought This element is likely to be reduced in coming years as more "joint ventures" are by a foreigner or if any assets are to be taken over. So too does a transfer of shares undertaken. It is estimated that total new investment in the manufacturing sector between foreign owners in a domestic business need authorisation. amounted to $ 170m in 1982. At least 20 percent of any new venture has to be owned locally and shares should be Other important sectors of activity include the retail trade, the hotel and tourist available to the Government if requested. A guarantee is given on the remittability of industry and the distribution network, and large sectors of the road transport industry. investment income and capital. The Government promises not to change the rules Worthy of note is that these various sectors account for about 80 percent of the formal allowing disinvestment of capital after two years. sector job employment, and nearly 90 percent of total taxation receipts through corporate Exchange control says this can be repatriated less the amount remitted in dividends tax and individual income tax. during that time. The balance plus any capital accumulated can be sent back through six At the core of the private sector is a sophisticated financial structure mirrored on that year, four percent Government bonds. of the City of London on which many of its principles are based. Says the code: "Government will provide a continuing guarantee supported by a transfer At the top of the tree is the Reserve Bank, followed by discount houses (bankers to the undertaking by the Reserve Bank if required, that after the two-year period and for a banks), merchant banks, commercial banks, building societies, hire purchase com¬ period of five years thereafter the remittability of the proceeds of any such disinvestment will be on terms and conditions no less favourable than those in force at the panies, the Agricultural Finance Corporation, and a development bank, amongst others. time of the original investment. ' ' There is a Stock Exchange which operates under an Act of Parliament and which deals in the shares of 60 local companies, and also in external companies subject to restrictions Legal guarantees and redress are provided in the constitution for property takeovers. Section 16 laid down by local Exchange Control. says any acquisition has to be proved to be necessary on grounds such as defence and Share public safety. Adequate compensation also has to be paid promptly. prices fell heavily from the end of 1980 until the end of the first quarter of this ' 'If the agree on owner year but a steadier trend has recently become apparent. parties cannot the amount of compensation the of the property can apply to a court of law to determine what is adequate compensation." The question is often raised as to how the operations of the private sector fit into the over-all policies of the Government. Foreign investment proposals are examined to see how they benefit the country. This includes increasing employment, promoting rural development, helping exports and It is clear, however, from a study of the three-year $6,09 billion development plan to research and development involved. which the private sector is expected to make a 40 percent contribution, and from the speech of the Minister of Finance when presenting this years's budget, that the Govern¬ Foreign investment is especially welcome in rural areas where the people will benefit, on a venture uses raw ment does intend the private sector to continue to play an important role in the joint basis, where it local materials and processed inputs and in development of the country. projects concentrating on labour intensive methods. The code It is also increasingly apparent that the progress of Zimbabwe can best be achieved gives a lengthy description of the details needed in any application for investment. through co-operation between the public and private sectors, and business leaders are likely to do their utmost to achieve this goal. Generally, the Government wants a majority stake in any enterprise it goes into.

A FIELD FOR INVESTMENT PAGE 21 All four regional routes to Nairobi, Lusaka, Blantyre and Gaborone are operated in conjunction with the national airlines of the respective countries, namely Kenya Airways, Zambia Airways, Air Malawi and Air Botswana. Operating regional routes in conjunction with the respective national airlines provides a high frequency which in turn adds to passenger convenience. In addition, the long established routes to South Africa, particularly to Johannesburg, continue to operate. The national airline has been able to provide services to destinations mentioned above through the use of five Boeing 707-320C's, three Boeing 720's and ten turbo prop Viscounts. In its five year plan the Corporation is seeking to introduce widebody aircraft. Air Zimbabwe The addition of the widebody will certainly mean that the Corporation will look closely at the possibilities of introducing services to North America. The advent of independence has brought with it new destinations from Harare operated by other airlines. The following airlines have regular operations to/from Harare: TAP Air Porgugal operates Lisbon/Luanda/Harare; UTA operates Paris/Lusaka/Harare; Air India operates Bombay/Seychelles/Harare; Swissair operates Zurich/Geneva/Athens/Harare and Balkan, the latest arrival, operates to Lagos, Tripoli and Sophia. This has resulted in stiff competition for Air Zimbabwe on the international markets.

SINCE 1980, the year Zimbabwe attained independence, Air Zimbabwe has con¬ tinued to take firm strides in its route expansion programme aimed at establishing OTHERS connections with the international world. With the London and Frankfurt routes already operating by mid-1982, the next stride OTHER African carriers operating into Harare include South African Airways, Air was made with the establishment of the Athens route in July of that year linking Harare Tanzania, Royal Swazi, Linias Aeres de Mozambique and Ethiopian Airways. with the southern approaches to Europe. Air Zimbabwe, after the national airline of Angola (Deta), is the second largest carrier Launching the Athens route marked the beginning of direct communications between with the Southern African Development Co-ordinating Conference countries and is Harare and the Mediterranean region, in addition to providing easy access to the Balkan planning to play a major role in the development of air transportation within SADCC in states, Turkey, Cyprus and the Middle East, with the Greek capital acting as a spring¬ the next several years. board from which to connect with all these areas. In addition to its scheduled passenger operations, Air Zimbabwe operates charters for Air Zimbabwe's efforts to link up with the rest of the world was perhaps more clearly various requirements. Its biggest customer for charters is the Government. With the demonstrated by its teaming up with the national Australian airline, Qantas, in combinated operations with Air Zimbabwe, the national carrier Affretair will be well November 1982, to operate a once-weekly service between Harare and Sydney via placed to cater for all bulk cargo requirements on a charter and scheduled basis. Perth, using a long distance Qantas Boeing 747-SP. Traffic growth within Zimbabwe itself, particularly on the tourist-orientated route to The service on which Air Zimbabwe shares capacity in both directions, provides Kariba, Hwange and Victoria Falls, also resulted in a need to increase services. Australians with a regional gateway to Zambia, Malawi, Botswana, Kenya and other Inter-city traffic between Harare and Bulawayo, generating mainly from the business African countries, in addition to having convenient connections to and from community, has also increased and a number of Viscounts services have had to be Johannesburg. replaced by Boeing 707's to meet the demand. Cargo capacity on all routes also This new addition to Air Zimbabwe's international network brought to nine the increased with the growth of the services provided. number of foreign destinations served by the airline. Over the years, Air Zimbabwe operated side by side with Affretair, then designated Always keen to participate and compete on the international market, the airline, on the national air cargo carrier, which was the main instrument of non-scheduled freight April 1, 1983, launched a joint venture with the German airline, Lufthansa, which transportation from Zimbabwe. marked the beginning of a joint twice-weekly service on Tuesdays and Fridays from Very conveniently, Affretair was merged with Air Zimbabwe at the end of 1982 to Harare to Frankfurt via Athens in both directions. rationalise the national requirements of both passenger and cargo operations, although This service, operated by an Air Zimbabwe Boeing 707 fitted out in the modern Affretair continues to provide long range non-scheduled cargo carrying capacity as an wide-body fashion, was designed to provide maximum connections at both ends. adjunct to Air Zimbabwe's scheduled services which carry cargo on all flights. New routes are constantly under review, particularly to West Africa, Asia and the Following the allocation of responsibilities by SADCC, air transport is among the United States. main features of the region's development needs accepted by the Zimbabwe Government. On the regional scene, the Harare-Nairobi service has doubled to twice-weekly, while a new service has been introduced to Gaborone, Botswana. From Air Zimbabwe's point of view, this acceptance led specifically to the airline There are three services each week between Harare and Lusaka, all now operated by taking the lead in the development of regional passenger and cargo carrying air services. In the Boeing 707's to increase the seating capacity. The airline has also increased its services light of this, Air Zimbabwe is therefore anxious to establish regional routes linking it with all SADCC countries. on the Harare-Blantyre route from four to five weekly.

PAGE 22 A FIELD FOR INVESTMENT Cargo Airline

AFFRETAIR, Zimbabwe's national cargo airline, was commissioned in May 1980, shortly after the country celebrated its independence. Although recently formed as Affretair, the company has many years experience in its field, gained during its operations as Air Trans Africa which was formed in 1964. The Within the past year, the airline also took immense strides in fulfilling the presidential cargo fleet consists of two DC8/55F aircraft, each with a cargo carrying capacity directive for African Advancement. of 38,2 tonnes. These aircraft are equipped to carry loads of all descriptions, from elephants to race-horses and frozen chickens to computer parts. Of all the airline's divisions, only one (Operations) does not have either a black At divisional head or deputy. Training of blacks has also been accelerated at all levels in the present there are three flights a week from Europe, providing good freight traffic, commercial, sales, engineering and operations divisions. connections between all major European centres to and from Zimbabwe, which makes Affretair a leader in Zimbabwean air freight. Flights leave every Monday, Wednesday In this context, the airline has six black flight engineers, while a number of black pilots and Thursday and arrive in Harare early the following mornings. are under training in Greece with the co-operation of the Greek Government. In addition, there are four north-bound flights a week to Amsterdam, one via Zurich Air Zimbabwe continues to support and develop Zimbabwe's tourist industry by and three via African ports of call such as Kano, Lagos, Accra and Libreville. promotional and advertising means in all countries to which it operates, in Europe Affretair is capable of carrying larger loads than any generally as well as in North America and Australia. other airline operating in and out of Zimbabwe and can offer destination flexibility when carrying capacity cargo. Probably the most significant development within the airline during the past year was The airline's main destination is Amsterdam's Schipol airport, which in the first half the introduction of a full computerised reservations system. All the carrier's main of 1981 handled 6 000 tonnes of cargo brought to them by cargo carrier. Other regular stations and selling offices are now linked to a central computer which has increased reservations capability to a level comparable with that of any other airline. World-wide stopping points include Blantyre, Cairo, Nairobi and Khartoum. reservations can now be made instantly by links with other carriers' computer systems. As well as being able to carry large loads, the airline has tailored its rates to meet the Another important new development is that Air Zimbabwe has become a member of requirements of the Zimbabwean market and, as a result, its tariffs are more competitive both the African Airlines Association (AFRAA) and the International Air Transport than those of IATA carriers. Association (IATA) and has general sales agreements with 22 other international airlines One of the line's strong points is flexibility. The flights mentioned are on a regular and 121 interline agreements throughout the world. basis, but any cargo of about 38 tonnes can be flown to a destination of the sender's choice. Looking ahead, the Viscount fleet, which has served the airline so well in the past, is expected to be replaced in the near future by short-haul jets. So far, three aircraft Affretair is a wholly Zimbabwean company which, as well as helping the export drive companies, British Aerospace, Boeing and Fokker, visited Zimbabwe to demonstrate in general, is a foreign currency earner in its own right. For instance, a one-flight round some of their products as possible replacements. However, at the time of going to press, trip could consist of flying tobacco to the Cameroons, grapes from Cyprus to no decision had yet been made on the choice of replacements. Amsterdam, and then low, bulk, high value technical goods back to Zimbabwe— At the same time, the planning and preparation for the acquisition of wide-body imports needed for the expansion of the home economy. long-range jet aircraft is well under way. On a humanitarian level, the carrier works very closely with relief organisations such as the Red While the airline has been consistently profitable in its operations in the past, it has, Cross, the United Nations Development Fund and the United Nations Refugee Fund. The airline has carried sugar to Uganda and 1 000 tonnes ofurgently needed maize however, now begun to feel the impact of the world-wide traffic recession, the general to another African country, in a bid to relieve the plight of the people. foreign exchange fluctuations on its fixed repayments dominated in foreign currency by The airline has the high cost of aviation fuel, the immense competition from 16 other foreign airlines proved to be a boon to both the Zimbabwean horticulturalist and to the now operating in the country, and the general effect on tourist traffic of the bad publicity European consumer. It is possible for vegetables to leave Zimbabwe in the morning and given to Zimbabwe abroad. be prepared and cooked in the restaurants of London, Paris or Bonn the following day. Thus, although other airlines the world over are suffering a similar decline as a result In order that perishable goods may reach their destination in a fresh and wholesome of the general traffic recession, these factors added together have begun to inflict condition, Affretair use their cold storage room to maximum advantage. This huge considerable losses in the airline's operations. refrigerator can hold up to 150 tonnes of produce—which means that goods which are readily bio-degradable will still be in event any But although the losses are substantial the airline believes they are temporary. perfect condition in the of delay prior to departure. Air Zimbabwe has satisfied and fulfilled the needs of the nation, aware that no nation A new innovation from the carrier is the trans-shipment of small parcels to any one of can achieve a meaningful level of social and economic development without an efficient 47 different destinations in Europe. Costs vary depending on the destination and weight transport system, and that air service is one aspect of the nation's communications involved. infrastructure which must continue to expand and develop. PAGE 23 A FIELD FOR INVESTMENT Railways

THE optimistic outlook for increased rail traffic in Zimbabwe has been disappoint¬ ingly affected by world recessionary conditions. Nevertheless, total tonnage hauled in 1982-83 is expected to reach 13,5 million, a very modest improvement on the 13,3 million tonnes of 1981-82, and the result of local movement increasing sufficiently to offset the fall in international traffic, particularly exports. To some extent this situation is attributable to the re-opening in July, 1982, of the oil pipeline from Beira (Mozambique) to Feruka (Zimbabwe) whereby the country's needs for petrol and diesel fuel are now moved by rail from the local point instead of being conveyed as imports in tank wagons from the coast or from the refinery in South Africa. The downturn in economic activity has been particularly frustrating at a time when the N. R. Z. became geared to meet forecasts of increasing goods traffic demand by overcom¬ ing its major constraint of insufficient effective motive power. This was achieved with the coming to fruition of the following measures:— • the delivery of 61 new General Motors diesel-electric locomotives of type GT. 22LC (Co-Co) which commenced in early 1982; • the re-engining of some older diesels; • refurbishment of 87 Beyer-Garratt steam locomotives; • and the contract employment of artisans from Rail India Technical & Economic Services (RITES) and from Pakistan. Future economic uncertainty has produced more modest goods traffic forecasts reaching around 17,5 million tonnes in five years' time. Passenger traffic has remained bouyant and will exceed 2,1 million passenger journeys in 1982-83 compared with the 1,8 million in 1981-82 and 1,6 million in 1980-81.

The introduction of a new form of motive power is a development of great significance for any railway and will occur for the N.R.Z. in the early part of the year 1983-84 with the commissioning of electric traction between our central, hump marshalling yard at Dabuka near Gweru and Harare, a single line route distance of some 308 km. British Two of the new EL 1 electric locomotives and the electric test coach under trial. firms were awarded the contract for the 25 kV AC 50 Hz single phase system's These will be in use on the newly electrified section ofline between Dabuka, near infrastructure, the major participants being Balfour Beatty, G.E.C. and Westinghouse. Gweru, and Harare. The "50 cycle" group, a European Consortium, will supply the 30 Co-Co electric A special ministerial train travelled the line for the first time on October 22, locomotives of 2 300 KW capacity, although bodywork manufacture and assembly is 1983, on which Prime Minister, Robert Mugabe, was the guest of honour. being undertaken locally by ZECO Ltd. of Bulawayo.

PAGE 24 A FIELD FOR INVESTMENT Energy resources

UNTIL recent years, Zimbabwe enjoyed the cheapest electrical power in the world— thanks to the Kariba hydro-electric scheme on its northern borders which harnessed the waters of the mighty Zambezi River. Built at a cost of about Z$150 million in the late 1950s, its turbines generate 1 200 MW of electricity which was more than enough for the country's needs. But times have changed. If the dam was to be built today, it would cost at least five times as much, with the interest rates more than doubled. The country is now paying the price for its tremendous industrial and mining develop¬ ment over the last 20 years. More power is needed to keep the wheels of industry turning especially as it is costing the country $20 million a year in imports of electricity from neighbouring Zambia. The answer was to build the Electricity Supply Commission's thermal power station at Hwange in the west of the country using coal with a high ash content from the nearby Wankie Colliery.

Fuel The mighty Zambezi, one ofthe great rivers ofthe world was harnessed toprovide from sugar is a reality in Zimbabwe, and ethanol is produced from cane hydro-electric power. The result was Kariba. grown in the Lowveld. PAGE 25 A FIELD FOR INVESTMENT The new power station at Hwange.

The first generator is already on stream and by April 1984 four turbo generators will have an installed capacity of 480 MW. A further two generator units—phase one of stage 2—are programmed for commissioning in September 1985 and January 1986. The total estimated cost of the Hwange power station project is calculated to be in AIR ZIMBABWE FAST AND FRIENDLY TO excess of $800 million, most of which is financed by international loans carrying high interest rates. ATHENS, BLANTYRE, BUFFALO RANGE, There are also plans to build other power stations at a later date, although it has not BULAWAYO,DURBAN,FRANKFURT, been decided whether they should be thermal hydro-electric or a mix. Three new sites on GABORONE,GWERU,HARARE, the Zambezi have been earmarked. In the drive to lessen its dependence on oil which cost the country $154 million in HWANGE, JOHANNESBURG,KARIBA, 1982, a factory was installed to produce ethanol from sugar cane at Triangle Sugar Estate LONDON, LUSAKA, MASVINGO, in the Lowveld. Opened in 1980 at a cost of $4 million it produces about 15 per cent of the country's NAIROBI,PERTH,SYDNEY, total motor fuel requirements. VICTORIA FALLS. Bio-gas, derived from rotting vegetable matter, is another source of energy especially in the rural areas where simple machines can be run and heating provided. ^ ANDBACK Of far greater national importance is solar power. This has already been successfully introduced to power pumps, and to provide lighting and heating at clinics and hospitals in the rural districts.

The biggest advantage is that while installation is more expensive than diesel fuelled MST AND FRIENDLY plants it very soon becomes cheaper and is virtually maintenance free. The National Railways of Zimbabwe have also embarked on an electrification scheme as a means of saving diesel fuel, and a 300 km stretch between Dabuka outside Gweru and Harare has now been electrified. The next stage is to electrify the line from Gweru to Michael Uotf# (cw) 32161 Chiqualaquala, the route on which a third of the country's imports and exports travel to the Mozambique port of Maputo.

PAGE 26 A FIELD FOR INVESTMENT COMMERCIAL

AND

INDUSTRIAL

CENTRES

HARARE

H ARARE is one of the most beautiful cities in Africa, and the most developed within the Southern African Development Co-ordination Conference (SADCC) region. With one of the most temperate climates in the world, Harare is also a garden city with flower lined streets, spreading trees and lush civic gardens. New buildings are changing the skyline, among them government buildings, an international hotel, and one of the largest and most sophisticated conference centres in Southern Africa. Situated in the Mashonaland province and surrounded by the richest farm land in the country, the city also has a sprawling industrial area where much of Zimbabwe's manufacturing endeavours take place. The two tobacco auction floors, reputed to be among the largest in the world, and many business organisations connected with the tobacco industry, have their offices and warehouses in Harare. Some very important gold, chrome and nickel mines are situated in the Mashonaland area and many of the big mining houses in the country are based in the capital. All the large banks, building societies, finance houses and insurance companies have their head offices in the city which, being an important commercial and industrial centre, is connected by rail, road and air to all the main centres in Zimbabwe.

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BARKER. McCORMAC ZI//, 31A Harare — the garden city

With an ever-growing population, there is more than adequate labour to supply the needs of the commercial and industrial sector. Zimbabwe's main international airport is only a 20-minute car ride from the city There are several buildings presently under construction in Harare. The picture centre. above shows a new complex for Government which is nearly completed. There are numerous educational institutions in Harare, including the rapidly expand¬ The Holiday Inn, Harare, below, will have been opened by the end ofl 983. The venture has been undertaken between Government and Rennie Grinaker ing University of Zimbabwe, where recognised degrees in the faculties of Arts, Educa¬ tion, Engineering, Medicine, Science, Veterinary Science and Social Studies may be (Zimbabwe) Limited. taken. The Inn is situated on the outskirts ofthe inner city, and has been fitted out with all the usual modern amenities as well as sophisticated conference In addition, the growing Harare Polytechnic offers a wide range of technical and commercial courses. equipment. Harare is well served by hospitals and clinics. The most up-to-date of these is the multi-million dollar Parirenyatwa Hospital. Motorists travelling from South Africa and the southern regions of Zimbabwe have to pass through Harare to reach Lake Kariba in the north-west and Inyanga in the east. An excellent road system runs from the capital to these holiday resorts. Within easy reach of Harare are several excellent recreational areas. In addition to numerous parks and botanical gardens within the city's boundaries, there is the world famous Ewanrigg National Park, some 40 km from the city, where a large collection of aloes and cycads can be seen at their best between June and August. For anglers, there are several well-stocked dams in the area, including the ever popular Robert Macllwaine Recreation Park. There is a small game park and the wide reaches of the lake are ideal for yachting, water ski-ing and speed boat racing. Golfing enthusiasts have a wide choice of nearly 20 golf courses round the city. There are several hotels in Harare, from plush five star accommodation, to simpler ones catering for families. Harare has cinemas, theatres, the innovative National Gal¬ lery, the Museum, Archives, main and suburban libraries, and all the amenities of a modern city. The sportsman is amply provided for with facilities up to any international standards available in the city and suburbs. Harare is also the headquarters for the Zimbabwe Broadcasting Corporation. The city has a sub-tropical climate with day temperatures ranging between an average minimum of 21.4°C in winter and an average maximum of 29°C in summer. The altitude is 1 500 m (4,850 ft.) above sea level and the average rainfall is 820 mm (32 inches). PAGE 29 A FIELD FOR INVESTMENT BLLAWAYO

BULAWAYO sits astride the main communication links with Southern Africa, and its geographical location, together with the enterprise and labour of its citizens, has enabled it to become Zimbabwe's second city and the provincial capital of Matabeleland, which stretches from the Victoria Falls in the north to the South African border at Beit Bridge in the south. The area contains immense mining, industrial and commercial potential as well as two of the world's most famous tourists attractions—Hwange National Park and the Victoria Falls. Bulawayo is the headquarters of the National Railways of Zimbabwe, whose lines link with those of Botswana, Mozambique, South Africa, Zambia and, through Zambia, to Angola and Zaire. There are very large railway workshops. Bulawayo has more than 1 800 industrial and commercial establishments of which more than 700 are factories producing in excess of $500 million worth of goods each year, from the heaviest industrial machinery to table wines. More than 146 000 people of all races are in employment out of a total population of approximately 434 000.

The city hall, Bulawayo.

Industrial land, reasonably priced, with or without rail sidings, is at present still available, while abundant water and electricity is supplemented by an adequate labour supply accompanied by cultural and recreational facilities. Developments during the past year have included plans for a twenty-storey govern¬ ment building costing between $15-16 million, a new $2,8 million maize mill, and extensions to two pharmaceutical manufacturing complexes totalling $3,8 million. The City of Bulawayo ' s capital budget of $42 million for the year ending June 30 1984 includes $20 million for low cost housing. Bulawayo's Housing and Community Services are the best in Zimbabwe. Bulawayo airport, with its recently extended runway and terminal facilities, and with a new terminal building in the planning stage, dealt with over 19 700 in/out flights carrying more than 236 700 passengers and 1 000 tonnes of freight in the year to December 1982. In addition to the normal educational facilities, there are two Teachers' Colleges, a Technical College offering a wide variety of courses, both part-time and full-time, and a School of Mines. Two large hospitals contain training facilities for all races in the medical field. There is a wide choice of entertainment, both cultural and sporting, and many important tourist attractions. Bulawayo is situated at an altitude of 1 356 m above sea level, and the average annual rainfall is 601 mm with average sunshine of 8,3 hours daily. The average mean temperature is 18°c. The area of Bulawayo is 431,3 sq, km., and the valuation of land and Some of the widest streets in Zimbabwe can be found in Bulawayo. It is also one buildings is $445 million. The non-domestic rates are $2,60 cents in the dollar on land of the cleanest cities anywhere in Africa, and despite being located in drier and $0,72 cents in the dollar on buildings, payable half-yearly. The value of building Matabeleland, the city gardens are always showy. plans approved for the two years ended June 30 1983 was $51,6 million.

PAGE 30 A FIELD FOR INVESTMENT MUTARE

MUTARE, capital of Zimbabwe's beautiful Maniealand province is the country's third city. Formerly Umtali, it is the commercial and industrial centre of a province that includes three superbs mountain ranges, the potentially wealthy Sabi Valley and many other parts of commercial or tourist interest. Mutare is linked by major highways with Harare, Masvingo, Nyanga, Rusape, Chipinge and Chimanimani, as well as with the important Mozambican port of Beira. The Beira-Mutare oil pipeline is a further important connection between the two cities. This pipeline supplies Zimbabwe with much of its diesel and petrol. Industries in Mutare include Mutare Board and Paper Mills, the country's only newsprint producer; Pilkington Glass Zimbabwe, the country's only manufacturer of safety glass for motor vehicles and the building industry; BL (Zimbabwe), where Leyland, Land Rover, Nissan and Mitsubishi vehicles are assembled; Karina Textiles, where the country's carpets and knitting yarns are manufactured; the Wattle Company, source of wattle extract for use in leather tanning and also a major producer of gum poles and pine wood; Border Timbers, one of the country's largest wood producers and the Zimbabwe Bata Shoe Company which has recently started operations in Mutare. In addition the city's industrial areas also house food processing factories like Lemco and National Foods. The Tanganda Tea Company has a factory in the city, while there are depots for major organisations like the Cotton Marketing Board, the Cold Storage Commission, the Dairy Marketing Board and the Grain Marketing Board. The city has an active industrial representative body in the form of the Manicaland Chamber of Industries, while the thriving commercial sector is well represented by the Mutare Chamber of Commerce. Being an important railhead the National Railways of Zimbabwe operates a large railway workshop in the city. Manicaland is one of Zimbabwe's most important agricultural areas. Nearly all of the country's timber and coffee, all of its tea and much of its deciduous fruit are grown in the Here the Manicaland branch of the Wildlife Society has established a unique flora and province. fauna conservation area, where wild game can be observed in one area by car and in Other important crops cotton, include: maize, burley and Virginia tobacco, ground¬ another at close hand while visitors sit on a dam wall enjoying refreshments. nuts, pecan and macadamia nuts, wheat, sisal, bananas, sugar, potatoes, Kiwi fruit, Wildlife include market vegetables, and, fast becoming an important product, proteas—grown by elephant, white rhino, wildebeest, eland, ostriches, Waterhuck, farmers in Nyanga, Penhalonga and the Vumba. Dairy and beef cattle, as well as pigs zebra, warthog, kudu, bushbuck, blue and grey duiker, giraffe, tsessebe, impala, sable, and sheep, are reared in several parts of the Province. monkeys as well as varied duck and bird life. Within the reserve is a large mountain forest area. Tourism plays a large role in the economic and social life of the city of Mutare and the Mutare has well-serviced industrial, commercial and residential areas. The city is on rest of Manicaland. Several well-known beauty and interest spots include: the Hönde Valley, (turn-off south of Juliasdale); the Burma Valley (south of the Vumba); the Sabi the ESC electricity grid and plentiful water supplies are available. A new water supply Valley, Vumba and Chimanimani and Nyanga; Lake Lesapi (near Rusape) where dam is planned for construction at Smallbridge, on the Odzani River upstream from Lake caravanning, camping and fishing facilities exist; Lake Alexander (north of Mutare) the Alexander, the only present source of water. delight of fishermen and sailing experts. The Mutare Municipality is progressing with the provision of low-cost, high-density A recent addition to the tourist facilities in Mutare is the Cecil Kop Nature Reserve, on housing in the Dangamvura suburb, and the whole area has enormous potential for the city's northern boundary. further development and productivity. PAGE 31 A FIELD FOR INVESTMENT GWERU

THE city of Gweru, capital of the Midlands and Zimbabwe's third and most central city, is a thriving communications centre. Gweru is situated alongside the great dyke, a rich mineral-bearing area, with abundant chrome seams and recently discovered platinoid deposits. The Midlands area is also rich in gold, iron ore and asbestos. The construction of the Dabuka marshalling yards has resulted in Gweru's emergence as the major import-export centre for the country. Gweru is also Zimbabwe's main rail junction on the rail link between Harare and Bulawayo and the electrification scheme, for the line between Dabuka and Harare—the first such project in the country—puts Gweru at the hub of Zimbabwe's communications network. Rail lines radiate from Gweru also to Masvingo and Shurugwi—where important mines are situated—to Zvishavane, location of some of the largest asbestos mines—and to the Lowveld with its sugar, wheat and citrus growing projects and the ethanol plant at Triangle. It is also linked to Mozambique and South Africa. All the major transport companies have depots in the city ensuring rapid delivery of goods by road to all parts of the county. A daily air service links Gweru with Harare, Masvingo and the Lowveld. Bus services both for suburban commuters and inter-city travellers are maintained, and a $ 110 000 rural bus terminus was recently opened in the city centre. Gweru has been the market place and meeting place for the Midlands farming community for decades. The Midlands beef stock represents a large part of the national herd, and Gweru cattle sales are second in size and value only to Bloemfontein, the largest in Southern Africa. The city ' s population is estimated to exceed 89 000 and social and cultural needs of all population groups are well catered for. Gweru is the shopping centre of the Midlands, and all the major banks, building societies and insurance companies have offices in the city. An important educational centre, Gweru has six high schools, eight primary schools, two teacher training colleges and a Government technical centre. Gweru is the industrial heart of Zimbabwe, and the city is attractive and The PTC is building a training college, and plans are in hand to construct a satellite plentifully supplied with water, even during the droughts of the last two years. station capable of making Gweru the link between Zimbabwe and the outside world.

CHEGUTU RUSAPE

SITUATED about 100 km south-west of Harare on the main road and rail link between RUSAPE is at the centre of an important agricultural area which produces cattle, the capital and Bulawayo,Chegutu has a population of about 20 000. tobacco and grains. It is 170 km from Harare on the main rail line to Mutare. It is the site of one of the largest textile mills in the country and the centre of an The town itself has the nucleus of a light industrial complex where activities such as important agricultural area. The town also has a Cotton Marketing Board centre. light engineering, timber processing, agricultural storage, and tobacco processing take A recent development which has changed this town's skyline is the construction of a place. huge grain storage facility by the Grain Marketing Board. Industrial activity mainly serves the surrounding agricultural sector. The 16 silos—12 for large grains and four for small grains—will have a total capacity Rusape has a good climate with an average rainfall of 765 mm, and is 430 m above sea of 68 000 tonnes and are scheduled for completion in 1984. level. At an altitude of 1 189 m above sea level, Chegutu has a pleasant climate and an There is plenty of water and power serving the town which has a population of over average rainfall of 729 mm. 8 000.

PAGE 32 A FIELD FOR INVESTMENT BINDURA

THE 50 minute drive from Harare to B indura 86 km away passes through some of the most productive farm land in Zimbabwe. Many of the commercial farmers in the region grow two crops a year, irrigating winter produce from the glorious Mazowe River. This small but attractive town is the administrative centre for the diversified farming activities of the region and the Trojan Nickel Mine and Bindura Smelter. The town has one of the most modem rural hospitals in the country, and is linked by road and rail to Harare and Shamva. There are a number of light industries geared to meet the mining and agricultural needs of the district. Bindura which has a mild climate and is 1 100 m above sea level and the average rainfall is 831 mm. The population of the town is 18 200.

is an All the basic ammenities exist in Bindura, a farming town among some of the ZISCO industrypivotal to the prosperity ofthe Midlands in general, and the richest agricultural land in the country. steel town Redcliff in particular. The town is well-laid out and in an attractive setting.

CHIREDZI REDCLIFF CH1REDZ1, with a population of 10 300, is in the heart of the rich lowveld and is the NAMED after a mountain of rich iron ore in the vicinity, Redcliff is the centre of the administrative centre for the important agricultural endeavours in the region. country's iron and steel industry being the home of the Zimbabwe Iron This area is where Zimbabwe's sugar cane is grown, and it is also one of the most and Steel Corporation—ZISCO. important districts for game ranching, which is an important tourist attraction. Situated almost exactly halfway between Bulawayo and Harare at an altitude of Chiredzi grew following the massive agricultural development of the early 60's. Other 1 220m, the fully-fledged municipality has a population of about 25 000, nearly a crops grown in the region are cotton, citrus and wheat. The town is 205 km from Masvingo and 180 km from Ngundu. quarter of whom are employed by ZISCO. The steelworks are located about 3 km from the town centre behind a range of hills and Air Zimbabwe and private charters fly in regularly to the Buffalo Range airport 13 km the town retains a pristine quality quite startingly contrasted to the vast, from the town, and the rail link is between Mbizi station on the Maputo line and sprawling steelworks. Chiredzi. Redcliff has a luxurious hotel, two restaurants and an abundance of sporting and It's always warm in Chiredzi and the temperature averages are 37°c during summer and recreational facilities, an soccer a moderate 20°c in the winter, with an average rainfall of 430 mm per annum. including Olympic standard stadium and a golf course. PAGE 33 A FIELD FOR INVESTMENT KADOMA

ESTABLISHED in 1906 along the rail link between Harare and Bulawayo, Kadoma has grown to a town of about 77 000 people in the heart of a rich mining and agricultural area.

Situated 141 km south of the capital at an altitude of 1 163 m above sea level, Kadoma has Zimbabwe's only cheese factory—producing some 6,5 tonnes of cheese daily—and the country's only tissue paper factory which cost about $5 million and which re-cycles waste paper. The name Kadoma is derived from the Shona word 'kusadoma', which means "don't speak about it because it is inhabited by spirits" referring to a nearby hill where a battle between clans took place many decades ago. There are several large mines—mainly gold mines—operating within a 25 km radius of the town. Kadoma is also in the centre of Zimbabwe's cotton industry and the centre of cotton research in the country. It is the site of a large spinning mill. A large, modem and very comfortable training and seminar centre has recently been set up in the town in what was formerly a motel. The town council has embarked on a $6 million water augmentation scheme to be completed by 1985 which will serve expanded industries in the area.

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New Wankie Power Station — to meet the needs of the future.

A FIELD FOR INVESTMENT NORTON HWANGE

HWANGE in the north east corner of the NORTON, just 46 km from Harare on the road to Bulawayo, has the potential to country on the road to the Victoria Falls, is become a key industrial area. As it is, the town serves a sophisticated commercial rapidly becoming a boom town. Almost its entire population is involved in some form or another with the Wankie farming district, and with abundant water, power and labour, this town is poised to Colliery Company, Zimbabwe's only coal producer. become an important centre for manufacturing. In recent months, large scale expansion of the opencast section of the colliery has taken The joint venture between one of the world's largest manufacturers of chewing gum, place in order to fuel the Electricity Supply Commission's new thermal power station Dandy, and two Zimbabwean businessmen is now producing chewing gum and earning nearby. the country foreign exchange. The formal completion date for the new Z$ 128 million project is planned for early next The population of the town is 12 400 and the climate is mild. The district around year and the parallel development at the power station to reach 920 mW generating Norton produces a variety of crops as well as beef and milk. capacity by mid-1985. This has resulted in a big influx of workers and contractors, necessitating new housing estates and a network of new roads. Hwange itself is a pleasant, well-developed town with modern offices and shops and all the amenities required for a thriving mining community, including a popular hotel and an 18-hole golf course.

This Church was built by the Italians who helped construct the mighty Kariba Dam. St Barbara's Church, high above the shoreline, is a popular spot for visitors.

KARIBA

KARIBA, with a population of about 15 000, is picturesquely situated above the dam wall which harnesses the mighty Zambezi River and forms one of the largest man-made lakes in the world. Established in 1957 when the 128 m high dam wall was being built, Kariba is a mecca for Zimbabwean and International tourists—it boasts six luxurious hotels—who flock to the lake for fishing, boating, water ski-ing and game viewing. In June, 1983, history was made when the $20 million dragline "walked"from The large hydro-electric power station generates most of the country's power. its assemblypad at the Wankie Colliery Company and begun a commissioning The lake is intensively fished for Kapenta and other species of fish including Bream test cut at halfpower. After completion of the commissioning cut, the dragline will be used to and Tiger. Kariba's shores are planted to bananas on a wide scale, making it one of the dig a canal to divert the Kamandama River away from a largest producers of this fruit in southern Africa. proposed opencast area. Coalfrom Wankie willfuel new power The town is 518 m above sea level and has an average rainfall of 657 mm. Lying in the the thermal station, and the town is Zambezi valley, Kariba experiences higher daily temperatures than most ofthe country. presently enjoying a boom related to the massive project. PAGE 35 A FIELD FOR INVESTMENT CHINHOYI

CHINHOYI, with a population of 25 000, is situated on the road link with Zambia about 120 km west of Harare. The town, with full municipal status, has been called "the bread basket of Zimbabwe" because most of the country's wheat is grown—along with maize and other agricultural produce—in the Lomagundi area. It is close to Zimbabwe's largest copper mining district and there are also gold mines near the town. A $3 million secondary school, the Lomagundi College, opened its doors to pupils early in 1983. This modem facility is five km from Chinhoyi. Linked by rail with Harare, Chinhoyi is 1 100 m above sea level and has an average annual rainfall of 850 mm. The biggest employer in the town is the Cold Storage Commission abattoir.

There are ample industrial and residential stands available in the centre, which has two high density suburbs and the usual amenities for social and recreational activities.

The main street through Kwekwe's commercial centre. The road connects Harare and Bulawayo.

KWEKWE

WITH wide streets, well-laid out civic gardens, Kwekwe is a busy commercial centre, serving the steel and mining industry. The town is also surrounded by mixed farms, and extensive ranches. It lies midway between Harare and Bulawayo, and is well served by rail and road, and the Municipal airstrip is equipped with a tarred runway. Kwekwe has the most up to date technical college in the country. The town is one of the most significant power consuming areas in Zimbabwe, with nearly one quarter of all the electrical energy consumed in the area. In addition to a number of engineering and other operations ancillary to the steel industry Kwekwe is also the home of a large chrome smelting plant, and a chemical factory which produces the country's nitrogenous fertilizer. At present lake Sebakwe, which provides the town with water, is being enlarged, and Chinhoyi is in the heart of the Lomagundi district — the wheatbasket of the when the operation is finished, it will be the third biggest stretch of water in the country. country.

PAGE 36 A FIELD-FOR INVESTMENT MARONDERA

MARONDERA, 71 km east of Harare on the rail and road routes to Mutare and Mozambique, has been made the provincial capital of Mashonaland East Province. Recent additions to the town's manufacturing and service industries have been a new tannery which complements the Cold Storage Commission abattoir, a brewery, a factory making school furniture and equipment, as well as business machine and stationery outlets.

Plans are underway to build a public service training centre in the town and a factory to manufacture manual typewriters for export. Its altitude is 1 662 m, above sea level and, being on the main watershed, it has a remarkably good climate. The town's population is estimated at about 32 000. Water is supplied by two high capacity dams and there is no restriction on the amount of electrical power that can be used by existing and developing industries. Marondera, which was accorded full Municipal status on July 1, 1974, is now attracting several Government offices with its new provincial standing.

V

The main road to the country's most revered historical site, the ruins at Great Zimbabwe, passes through Masvingo, a pleasant well-laid out town, amply geared to meet the demands of tourism and the farming community.

MASVINGO

MASVINGO is an attractive town, the oldest in the country. It is the nearest commercial centre to some of the finest tourist attractions, the main one being the historic Great Zimbabwe. Lake Kyle, which is not far from the town centre is the second largest expanse of water in Zimbabwe. Beautiful lakeland scenery, an abundance of wildlife, birds and unspoilt scenery make it a popular resort for campers, caravanners, and those who want to take advantage of the attractive permanent accommodation provided by the National Parks. Masvingo is a short three-hour drive from the capital, and is connected by regular flights and good roads to the main centres. Farming, both commercial and communal is an important feature of the Victoria Province of which Masvingo is the administrative centre. Significant developments in rural development have taken place in the last three years in the region, and the main crops are maize, wheat, sorghums and soya beans, with smaller amounts of tobacco and cotton. Victoria Province is also an important region for cattle. Physically the land surrounding Masvingo is semi-open savannah country and the Established to meet the needs of a busy and prosperous farming community, altitude of the town is 082 m above sea level with an average rainfall of 810 mm. The Marondera is now poised to serve a wider public, but it already has a well- population of the town is 30 600. established commercial centre.

A FIELD FOR INVESTMENT PAGE 37 take EVENTS Clecm and dry it. Then JL JL^* compress it and cool it - 0 again and again until it becomes \ a cold blue tinted liquid. Now wlAJL distil it into oxygen and nitrogen - two of the many gases of which it is composed. This harnessing of gases is part of the modern world of Oxyco. And not only these two gases but many other types of gas as well as specialised gas mixtures are available to you through a wide distribution network. Oxyco's international association with the BOC Group means that it has access to the latest gas technology in metallurgical, combustion, chemical, furnace, food and cold processes together with many other applications. Oxyco's expertise is yours - whether you need a large on-site tonnage plant or a small gas cylinder for your home workshop. Advice and help, regardless of the size'of the/ problem, are part of the Oxyco service. So, when you have a gas problem, contact Oxyco, and we'll give you the facts - not just hot air.

The National Gallery (above) in Harare is host to some of the most important cultural events in Zimbabwe, including the recent successful Book Fair, which is set to become an annual event. The Trade Fair inBulawayo is where the world can see what diverse goods are made in Zimbabwe, as well as being an international showcase.

answers Modern PAGE 38 to modern problems. There has been a new emphasisplaced on productive co-operative agriculture in the communal areas. Here, fruit growing near Rusape.

RURAL AREAS

ABOUT 80 per cent of Zimbabwe's 7,5 million people live in the rural areas. Government has therefore concentrated on building up facilities, employment opportunities and services for the rural populace. Schools have mushroomed up in some of the remotest parts of Zimbabwe as have clinics, to serve the needs of the people. All the dip tanks ravaged during the war have been re-built, and the communal Grain depots have been built at key points throughout the country to enable the farming sector are receiving both material and technical assistance to improve the returns peasant sector to market its grain quickly and profitably. on their agricultural pursuits. The Government has designated growth points in the rural areas in line with its policy Educational facilities throughout Zimbabwe's rural areas have received much of decentralisation. attention since Independence. Pictured here the new Lomagundi College under contraction.

The new Nhongo School has risen from the ruins of the old building destroyed in the war. Herepupils use the oldfoundation stones to make a map ofAfrica during a geography lesson.

PAGE 39 A FIELD FOR INVESTMENT THE HISTORY AND SPLENDOUR

Can there be a sight more lovely, than Zimbabwe's Victoria Falls? Hundreds of thousands of visitors from all over the world have walked along the pathway at the edge of the Falls to see its manyfaces. The rainforest, the Devil's Cataract, the main Falls (here,) the rainbow which seems to be a semi-permanent fixture, and the upper reaches of the roaring Zambezi. Hotels abound around the Falls providing accommodation of international standards or self-catering fully- equipped chalets and lodges. The extraordinary and often very old baobab tree (below) can be seen in various parts of the country in particularly the lowveld.

The awe-inspiring Great Zimbabwe comprises the Great Enclosure (pictured) which encompasses the mysterious Conical Tower, the Acropolis ruins clinging precariously to the top of a granite hill overlooking the enclosure and the nearby Kyle dam, and the scattered Valley Ruins. Built of stone without mortar, the grandeur of Great Zimbabwe testifies to the power and influence of successive dynasties who lived there from as early as the eleventh Century.

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