Vaccine Rollout to Stimulate Recovery’: P5

‘VACCINE ROLLOUT TO STIMULATE RECOVERY’: P5

News Worth Knowing Business push for bailout: P4

March 04-10 2021 ESTABLISHED 1969 @ FingazLive www.ﬁ ngaz.co.zw Facebook: The Financial Gazette Z$260 Investors confident about Zim prospects PEPSI | March 04-10 2021 The Financial Gazette ‘VAccInE roLLouT To STImuLATE rEcoVEry’: P5

News Worth Knowing Business push for bailout: P4

March 04-10 2021 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette Z$260

ZSE Report THE equities market traded sideways yesterday with 20 stocks advancing, 17 Investors stocks declining and six remaining on the previous level. The total volume traded was 4,4 million shares valued at $49,1 million with the biggest contribution to the value coming from Hippo Valley at $10,9 million, Delta $6,7 million and Econet at $6,1 million. The biggest upward movers were Lafarge which rose 20 percent, NTS 19,93 percent and Turnall 19,41 percent confident whereas the biggest decliners were Fidel- ity at 10,65 percent and Unifreight down 9,49 percent. The Mining Index gained 463,19 points. Currencies (Bloomberg) % change USD:ZAR 14,9286 0,06 ◀ EUR:USD 1,2080 0,09 ◀ ◀ GBP:USD 1,3982 0,19 ◀ about Zim USD: JPY 106,9600 0,25

Stock Markets ◀ ZSE All Share 4,484,78 1,92 ◀ Top 10 2,694,46 1,44 ◀ JSE 68,949.27 0,64 ◀ FTSE 100 6,673.56 0,90 Dow 31,391.52 0,46 ◀ prospects Commodities Gold 1,722,91 0,89 ◀ Platinum 1,205,85 0,14 ◀ ◀ Staff Writers said a series of reforms spearheaded by Brent Oil 63,95 1,99 Finance minister Mthuli Ncube were also Grains (Grain SA) ◀ N YET another boost for Zimbabwe’s starting to bear fruit, with the econom- White Maize ZAR 3,257 19,00 ◀ quest to lure more foreign investment, ic-growth outlook improving markedly Soya ZAR 8,950 16,00 Australian oil and gas company, In- and annual inflation slowing rapidly. Wheat ZAR 5,220 7,00 I ◀ victus Energy, has given the thumbs up Among the recent developments that to the country’s ease-of-doing-business Macmillan cited as progressive during Fingaz celebrates environment. The Financial Gazette’s webinar this Speaking at during an investors’ we- week, were the amendment of indigenisa- women's day binar for miners and international firms tion laws and the implementation of spe- The Financial Gazette will on Mon- this week, organised by The Financial cial economic zones (SEZs). day host a webinar to commemorate Gazette, Invictus Energy managing direc- “Government has put in good and nec- International Women's Day. This year's campaign is running tor Scott Macmillan said the country had essary reforms, particularly around the under the theme #ChooseToChal- made significant progress in instituting amendment of the Indigenisation Act and lenge with the United Nations resi- needed reforms. the implementation of the special eco- dent coordinator, Maria Ribeiro as This comes as global financial, nomic zones. guest of honour. software, data and media company, “More recently, the Zimbabwe Invest- The all female discussants will Bloomberg, has also reported that local ment Development Authority (ZIDA) has speak on what made them choose business is sounding increasingly upbeat been made a one-stop shop for investors. to take on big challenges and offer advice to women or girls wanting about the country — adding that this is “a “This has certainly made it easier for to do the same. Other speakers in- sea change from the pessimism they have foreign investors to do business in Zim- clude Information minister, Monica expressed through two decades of eco- babwe. It is much easier dealing with one nedbank Zimbabwe mD and Institute of Bankers of Zimbabwe Mutsvangwa, Insurance Pension nomic mismanagement and institutional single body that can co-ordinate across,” councillor, Sibongile moyo, says there is need to generate a pipeline Commission Commissioner, Grace decay”. Macmillan said. of skilled women to take up decision-making roles in financial Muradzikwa, Telecel Zimbabwe CE Among other things, the news wire To Page 2 institutions. See story on page 13 Angeline Vera and lawyer Beatrice Mtetwa. Page 2 | March 04-10 2021 The Financial Gazette News Investors confident about Zim prospects

From Page 1 said, adding that the VFEX was also “This is particularly so for us min- raising a significant guarantee fund ers who have got multiple ministries which would enable investors to re- and government bodies that we deal coup their proceeds in cases of fail- with. It has certainly made things eas- ure. ier. At the same time, the RBZ has “The government should be ap- also created another foreign currency plauded for these sorts of measures account for investments, which facil- (that it has undertaken),” he added. itates the administration of foreign Macmillan also said mining in- currency inflows and outflows under vestors always looked for policy cer- the VFEX. tainty, stability, respect for private According to Exchange Control property and a functional judicial Directive RV177/2020, all foreign system when making major business currency inflows invested into a res- decisions. ident company listed on the VFEX “Investments are very capital in- shall be from free funds or offshore tensive in the resources sector and funds, and these investment funds they happen over a long time frame. shall be credited into the listed corpo- “And when making these invest- rate’s investments FCA. ment decisions, we want to make sure Zimbabwe is targeting a US$12 that the rules aren’t going to change. billion revenue mining sector by 2023 “Foreign investors in resources and the VFEX is seen as a key cog in look at two factors, the below ground that endeavour — if it works as en- geological potential and the above visaged. ground investment environment,” Macmillan further told the Fingaz "We are engaging webinar. Also speaking at the same meet- government at a ing, Zimplats chief executive Alex Mhembere implored the government policy level. We to now also consider concerns on the don’t need to repatriation of dividends by foreign investors. compel companies “People who come in as investors want to achieve a target rate of return to list, but to on their investment. incentivise them to “So, we need to ensure that we give them necessary incentives so attract them" that they can be able to implement targeted investments to achieve a targeted rate of return,” he said. Meanwhile, Zimbabwe Stock Ex- change chief executive, Justin Bgoni, says the country is also working on This comes as the government re- more incentives and reforms to attract iterated this week that it would con- miners to list on the American dol- tinue with in its drive to re-engage lars-denominated Victoria Falls Stock key Western countries, as it seeks to Exchange (VFEX). attract more foreign direct investment The bourse was launched towards into the country. the end of last year as part of efforts New Foreign Affairs minister, to attract more foreign investment — Frederick Shava, said like his late amid hopes by the government that predecessor Sibusiso Moyo, he would it will help to restore global inves- prioritise the rebuilding of Zimba- tor confidence in local capital mar- bwe’s political and economic rela- kets and also assist companies raise tions with the international communi- much-needed foreign currency. ty — including promoting the country Already, the exchange allows list- as a reliable trading partner and safe ed entities to be exempted from cer- haven for investments and tourism. tain taxes, including capital gains and “There is nothing new. I will con- withholding tax upon the disposal of tinue with the pronouncement made shares, as well as corporate income by the president ... during the in- tax. ception of the new dispensation that This notwithstanding, Bgoni said Zimbabwe would like to be a friend they were working hard in a bid to for all, and in pursuit of that, we come up with more sweeteners to at- are going to try our best to reaffirm tract capital. our friendship with our all-weather “We are engaging government at a friends, countries that never left us policy level. We don’t need to compel even at the height of our problems companies to list, but to incentivise with the international community. them to attract them,” he said. “We are going to engage new coun- Currently, only one company, Seed tries who may not have supported us Co International, has so far listed on in the past, but who want to support the VFEX. us now. Bgoni said one of the major chal- “We are also going to re-engage lenges that had been identified as con- with the countries that may have tributing to the delay in more listings been disgruntled at the onset of our had been the inability by investors to land reform programme which led repatriate funds. to various sanctions by some coun- “However, we have been working tries and institutions,” Shava said with the Reserve Bank of Zimbabwe after being sworn in to replace SB (RBZ) on the issue of settlement Moyo. and clearance to allay the fears,” he [email protected] The Financial Gazette March 04-10 2021 | Page 3 National News Industry counts costs of coronavirus Adelaide Moyo trade is no longer tenable and we face a huge Staff Writer level of business closures and job losses, not only in the restaurant trade but among the NDUSTRY has begun counting the costs of the many suppliers to the trade,” Zamchiya said. coronavirus pandemic, which saw authorities im- Zimbabwe had been under a stiffened Iposing a hardened national lockdown at the turn of stay-at-home order since the turn of the year the new year. when the government reverted to the tough Business leaders told The Financial Gazette yes- restrictions after the virulent respiratory dis- terday that they would feel the effects of the deadly ease began killing as lot of people and infect- respiratory disease throughout 2021, due to severe dis- ing many others. ruptions caused to production by the lockdown. Covid-19 killed 600 people in January this This comes as President Emmerson Mnangagwa has year alone — including business executives further removed national lockdown restrictions to pave and ministers — underlying the huge chal- way for more economic activity and freer movement of lenges that the government face then to con- people in the country. A modest and steady recovery of business is expected going forward, following tain the killer virus. Employers Confederation of Zimbabwe president, the relaxation of the lockdown order. Zimbabwe has begun its national vaccina- Israel Murefu, said 2021 would be a difficult year for tion programme, which is targeting 10 mil- rants since March last year had shattered their “We are fully supportive of the nation- business because of the Covid-19 pandemic whose sec- lion people by end of the year. trade — with nearly half of their operations al effort to contain and eliminate Covid-19, ond wave has been more devastating on businesses and [email protected] on the brink of permanent closure. but the current dispensation for the restaurant the economy than the first one. “We would like to see the authorities coming up with a second but visible and transparent financial stimulus package to bankroll companies’ recovery efforts and initiatives to ramp up production and capacity utilisation so that lost jobs can be recovered. “What will be needed is working capital to resusci- tate dormant businesses together with other incentives around tax concessions or incentives and some form of moratorium on other government statutory obligations until some modicum of recovery is achieved. “Also, incentives around employment creation should be enhanced so that we can create a bigger domestic market for our products and services,” Murefu told The Financial Gazette. “Recovery of businesses will take longer than previously anticipated because many will require funding, which is going to be more scarce given the effect of the new monetary policy statement on liquidity and money supply. “I think GDP growth for 2021 may be in negative territory contrary to predictions by the authorities,” Murefu also said. He said business expected that the vaccine strategy was going to be accelerated by allowing private players to be involved in vaccine procurement in order to achieve herd immunity. “This will assist in ensuring that lockdowns are removed permanently for the benefit of businesses and the economy at large. “We expect modest and steady recovery of business going forward and that the positive trajectory in that respect is sustained. “We also expect international trade to go a gear up and that production and capacity utilisation will improve. “In addition, we expect a good harvest that will mi- nimise importation of the staple grains, which will save foreign currency and therefore, influence stability of the exchange rate which is good for our economy and for reducing inflation,” Murefu further told The Finan- cial Gazette. Zimbabwe National Chamber of Commerce chief executive, Christopher Mugaga, said it would take time for industry to recover considering that Zimbabwe had underlying issues prior the Covid-19 pandemic. “It was high time the government eased the national lockdown ... however, we should cautiously approach the situation as if there is a third wave. “Recovery for industry would be a dragged recovery and we expect volumes to pick up in the third quarter of 2021. “We are currently advocating for a blueprint for post Covid-19 recovery and reconstruction. The strategy requires a coordinated approach from industry and government. “Industry has been significantly affected and we currently need a strategy for stability, not for growth,” Mugaga said. The Confederation of Zimbabwe Retailers this week said it welcomed the balanced review of the lockdown, which focused on fighting the Covid-19 pandemic while opening up the economy. CZI said nearly 86 percent of industry’s supply chains had been severely disrupted while 44 percent highlighted that they were operating at less than 30 percent capacity utilisation, with 32 percent recording capacity utilisation of between 30 percent and 60 percent. On his part, Restaurant Operators’ Association of Zimbabwe president, Bongai Zamchiya, said the non-operational or partial-operational status of restau- Page 4 | March 04-10 2021 The Financial Gazette National News Business in fresh push for bailout Farai Mabeza organisation’s expectations from the new plan would due to viability concerns. safety issues in the wake of Covid-19 as well as access to vac- Staff Writer be, only saying CZI was still in the process of fi rming Employers Confederation of Zimbabwe presi- cines which ensures labour is protected and therefore, possibly its proposal to be presented to the Finance ministry. dent, Israel Murefu, feels another credit guarantee avert the loss of human capital necessary for businesses to run OVERNMENT is eyeing a new bailout “We need some kind of bailout but the form of it package would be insuffi cient at this moment saying effi ciently and many others. package for its distressed business sector is what we are currently working on. We recognise business needs a capital injection. “All these issues are directly linked to Covid-19 and there- Gafter reports that the initial package was ex- the capacity constraints that the government has. We “Business would welcome a stimulus package fore, critical in terms of the need to address and resolve them so hausted by the agriculture sector. need to engage and come up with proposals. But we which involves some injection of working capital that business operations may improve and companies survive,” Treasury secretary, George Guvamatanga, said need assistance. That is beyond question,” Ruzvidzo into ailing businesses and not just guarantees for col- he said. in a recent webinar to unpack the Monetary Policy, said. lateral security with banks. Zimbabwe Congress of Trade Unions (ZCTU) president, organised by the Daily News, that the government Beyond government assistance, Ruzvidzo said “Business would also welcome a package Peter Mutasa said while the need for a bailout was critical, the had taken a deliberate decision to prioritise agricul- the business sector could also look to international that provides tax relief to companies in relation to government should fi rst divulge the details on the fi rst package ture and admitted that business would need another development institutions and he expressed hope that Covid-19 expenses they incur through taking mea- and include labour and other stakeholders in the consultative package after missing out on most of the $18 billion government’s re-engagement efforts would be help- sures to mitigate the impacts of the virus,” Murefu processes for a new one. stimulus. ful in that regard. said. “Firstly, government has to be transparent and clearly di- He, however, did not reveal the exact fi gures “This could be part of the government's reen- “A Nssa (National Social Security Authority) vulge how the fi rst package was distributed…. secondly, there is showing how the stimulus, which was in the form of gagement plan and could be practical soon,’’ Ruz- contribution holiday or relief would also be wel- need for an inclusive and consultative process of coming up with a credit guarantee, had been broken down. vidzo said. come”. the interventions,” Mutasa said. The Financial Gazette is reliably informed that Players in some of the key sectors of the econo- Murefu said employers were dealing with a host He also pointed to the need for a comprehensive post the government is meeting business leaders today to my such as tourism have in the past raised concerns of viability issues, which include access to markets Covid-19 shutdowns recovery strategy which would go beyond discuss, among other issues, the new package. that they have been unable to access the Covid-19 and supply chains, capacity utilisation and produc- stimulus plans. Confederation of Zimbabwe Industries presi- credit guarantee scheme citing lack of clarity, while tivity improvements. “…we don't just need a stimulus package for business. We dent, Henry Ruzvidzo, could not reveal what his others had been turned away by commercial banks “…what to do with redundant labour, health and need a well thought-out comprehensive post Covid-19 lockdowns economic recovery policy. “This must address building capacities of our health delivery system in case of a third wave and clear vaccination procurement and rollout plan… The stimulus package has to be innovative so as to avoid just throwing around money to sectors we may not fully benefi t as a country. “For us the most effective means is to put money into the hands of the productive workers. … this is the most effi cient way of raising aggregate domestic demand that will in turn raise productivity”. The government remains confi dent of achieving its projected 7,4 percent economic growth target for the year despite compli- cations arising from the Covid-19 pandemic, hedging on a good farming season, recovering commodity prices and a general economic stability. Agriculture provides the bulk of the raw materials required by manufacturing at about 65 percent while service sectors such as tourism and hospitality are also supported by commodities from the sector. newsdesk@fi ngaz.co.zw Willdale eyes regional market Nelson Gahadza Staff Writer

IMBABWE Stock Exchange-listed, Willdale Limited (Willdale), says it is considering penetrating the southern ZAfrican regional markets, whose economic prospects have potential opportunities for the housing market. The company is a major manufacturer and distributor of clay brick products in Zimbabwe and has been constantly bringing new brick products such as Topaz, which is said to match bricks imported from Botswana and South Africa. “We believe the economic recovery in the region post- Covid-19 will stimulate the construction industry and provide business opportunities for the company,” said Nyasha Matonda, the group’s chief executive in the company’s annual report for the year 2020. Matonda said during the year under review, the business environment in Zimbabwe remained challenging and characterised by infl ationary effects and foreign currency challenges. He noted that the outbreak of Covid-19 exacerbated an already constrained economic environment which resulted in the construction and real estate industry continuing to struggle throughout the year. However, according to Matonda, demand for bricks remained strong despite the impact of the Covid-19 induced lock downs on the economy, as sales volumes increased by 12 percent compared to the prior year. “The brand dominated the market due to durability of our bricks and the diversity that we offer consumers. Efforts continued to reach all corners of the country with sales offi ces and partnerships being established in most parts of the country,” he said. Matonda said the relaxation of lockdown conditions from the fourth quarter witnessed a steady increase in orders especially from individual home developers. He said the continued opening up of economic activity cou- pled with central bank’s introduced foreign currency auction system resulted in a stable currency and infl ation rate. “This will present opportunities from dormant and new projects including government infrastructure and housing development programmes,” he noted. Production on fi red production for the year declined by 20 percent compared to the prior year. Matonda said about two months' production was lost due to the Covid-19 induced lockdown. He said the annual maintenance of the plant will be carried out during the seasonal shutdown to ensure effi cient production that delivers suffi cient bricks for projects during the ensuing year in line with approved budgets for the new fi nancial year. newsdesk@fi ngaz.co.zw The Financial Gazette March 04-10 2021 | Page 5 National News ‘Vaccine rollout to stimulate recovery’ Tendai Kamhungira Solutions said. Senior Staff Writer On his part, economist and former Re- serve Bank of Zimbabwe Monetary Poli- NALYSTS have predicted more activity in the cy Committee (RBZ MPC) member, Eddie economy following the vaccines’ roll-out pro- Cross while the vaccines were welcome, the Agramme which began in the country last month. country still had not borne the severity of Zimbabwe began the first phase of its Covid-19 vac- Covid-19, compared to other countries such cination programme in February after receiving 400 as those in Europe. 000 doses from China. “Zimbabwe has been relatively unaffected The country has targeted 60 percent of the popula- by the virus. We are not sure why. tion under the vaccination programme, which comes "This means that access to the vaccine is following months of Zimbabwe battling the deadly vi- unlikely to make much difference. It is going rus. to be a long time before tourism recovers,” Speaking to The Financial Gazette this week —after Cross said. the government further relaxed the hardened coronavi- This comes as Zimbabwe is set to wid- rus national lockdown — analysts said the vaccination en its vaccination programme in the next programme would stimulate economic activity after few weeks as the governments expects more months of partial business. deliveries from China, Russia, Britain, India “Most countries had closed borders with supply Vice president Constantino Chiwenga shows off his vaccination card soon after receiving and the World Health Organisation-led Covax chains disrupted. It is in this hope that borders will open his first dose of the Sinopharm Covid-19 vaccine in Harare recently. programme. [email protected] for trade. “The informal sector has been the major economic driver in Zimbabwe constituting 60 percent of the gross domestic product and because most were rendered as not essential, we are expecting their revival in this sector,” said the Zimbabwe National Chamber of Com- merce (ZNCC) president Tinashe Manzungu. Veteran economist, John Robertson, said it was important to vaccinate most of the population as this would contain the virulent respiratory disease. Robertson said the rate of economic activity would also be dependent on the time that the vaccines would be administered throughout the country. “The main business improvements are likely to be for retailers, commuter bus drivers and the businesses … but equally important will be the improvements felt by people who lost their earnings from both formal and informal activities. “Zimbabwe has come through this experience in better shape than many other countries, partly because of the social networking "The containment skills and traditional respect for extended of the Covid-19 pan- family responsibili- demic has the poten- ties. tial to see economic “These make up for the almost complete activities returning lack of official social to normal and im- welfare payments, but provement in output many Zimbabweans have also benefited in the second half of from humanitarian aid 2021." provided by the World Food Programme,” Robertson told The Financial Gazette. Morgan & Co head of research, Batanai Matsika, said agriculture, mining and financial services, were the three sectors likely to bring notable change to the economy this year. “In our view, key triggers could include rapid Covid-19 vaccination programmes across the world leading to a return to normalcy, a surge in foreign direct investment, speedy recovery of international tourist ar- rivals and changes in international relations,” Matsika said. Research firm, Akribos Research Services (Akri- bos), the arrival of the jabs had provided authorities with much-needed tools to contain the virus —paving the way for more people to return to work. "The containment of the Covid-19 pandemic has the potential to see economic activities returning to normal and improvement in output in the second half of 2021. “Disruption in value chains due to Covid-19 saw prices of basic commodities increase in January 2021. “With the pandemic negatively impacting on some of the key sectors of the economy, such as horticulture, retail, tourism and manufacturing, the country is expecting to turn around a corner following the vaccine roll-out. “Growth in the agriculture sector due to the good 2020/21 rainfall season is expected to have spillover effects to the wider economy in the second half of 2021. “Agro-food processing companies are likely to benefit from improvements in the supply of raw materials. Resultantly, food inflation is likely to decline in the medium term,” Akribos said. Fitch Solutions said it expected the global recovery to strengthen from the mid-year due to vaccines rollouts. “The global recovery path is proving bumpier than expected as the second wave of the virus prompts new restrictions, but the vaccine news is very positive for the economic outlook over the next two years,” Fitch Page 6 | March 04-10 2021 The Financial Gazette News Aviation sector gears for recovery

Adelaide Moyo costs that will create burdens to restore the Staff Writer passenger experience and the propensity to travel. We believe that a decisive cut or LAYERS in the aviation sector holiday period on the Zimbabwe Passenger have started to prepare for recovery Service Charge would be another important Pamid expectations that the roll-out and effective lever for the government to of Covid-19 vaccination programmes will ensure that Zimbabwe positions itself in the lead to the reopening of travel destinations. fast track of the global economic recovery,” This comes as the International Air Mambara added. Transport Association (IATA) airlines fi- Anna Julia Hungwe, Civil Aviation nancial monitor for January 2021 said re- Authority of Zimbabwe public relations covery in travel demand is delayed to the manager said interventions are being put second half of the year. in place to ensure recovery of the aviation “…economic and oil demand outlook sector. will be highly dependent on the progress “While the industry has been hard hit by in distribution of vaccines and subsequent the pandemic like many other sectors, hope easing of restrictions. The recovery in air has never been lost and the government travel depends on similar factors. Hence, continuously supports the industry the best airlines would face pressure on the cost side way it can,” Hungwe said. once the recovery starts,” IATA said. With new Covid-19 variants emerging The trade association said the strength and borders closing once again, IATA pre- of the rebound in travel demand will de- dicts a worse-than-expected cash burn, as pend on the pace of vaccine rollouts and much as double its estimate at the end of easing of travel restrictions. last year. The Zimbabwean government has start- Estimates for cash burn in 2021 have ed to rollout its Covid-19 inoculation pro- ballooned to the $75-$95 billion range from gramme following the arrival of the first a previously anticipated $48 billion due to consignment of the Sinopharm vaccines a weak start for 2021 due to travel restric- donated by the Chinese government. tions in response to new Covid-19 variants. Adiel Mambara, an aviation expert and IATA said the initial sample of fourth country manager for Royal Brunei Airlines, quarter 2020 financial results shows that said the sector is expected to remain badly airlines in all regions continued to report affected this year, and recovery will take losses due to the ongoing impact of the some time. pandemic. “… it is urgent that the Zimbabwe gov- “However, the sample also indicates ernment turns their attention to develop- that losses were steadily narrowing down ing a strategic pathway plan to enable the despite stagnating traffic outlook. In this re-opening of the aviation sector. The com- small sample, airline net losses narrowed bination of Covid-19 testing and vaccina- down close to Q120 levels when the pan- tion is already acknowledged as the key endemic initially hit the industry. It is import- abler to lifting layers of travel restrictions,” ant to note that this is mostly due to the Mambara told this publication. rigorous cuts in capital expenditures and He said the rollout of vaccination pro- operating costs since revenues are still less grammes at scale and associated improve- than half of their level in Q120,’ the firm ment of the public health situation will said. necessitate the reopening of international Passenger revenues declined 73 percent aviation, upon which global economic re- year-on-year in the fourth quarter of 2020 covery will be dependent. as the recovery in air travel demand stalled. “Recovery for the sector will require “Looking forward, the economic and oil supportive government policy and inter- demand outlook will be highly dependent ventions, confidence building and invest- on the progress in distribution of vaccines ment over a sustained period of several and subsequent easing of restrictions. The years in order to carry passenger numbers recovery in air travel depends on similar at a similar level of previous years. factors. Hence, airlines would face pressure “Once the recovery period gets un- on the cost side once the recovery starts,” derway there are also likely to be new re- IATA said. quirements or procedures and associated [email protected] WB readies Covid-19 vaccine funds for 30 African countries

HE World Bank (WB) is prepar- terms,” a bank spokesperson said in re- ing emergency financing to help sponse to questions. Tabout 30 African countries access Last month the World Bank approved Covid-19 vaccines, the global lender told financing of $5 million from the Interna- Reuters, as the continent scrambles to se- tional Development Association to provide cure doses and start immunising vulnerable Cape Verde with vaccines. groups. “This is the first WB-financed operation Only a handful of African governments in Africa to support a country’s Covid-19 have launched mass vaccination cam- immunisation plan and help with the pur- paigns, whereas some countries in wealth- chase and distribution of vaccines,” the ier parts of the world have already admin- spokesperson added. istered millions of doses. Many rely on the Africa’s reported coronavirus death toll World Health Organisation’s vaccine-shar- recently surpassed 100 000, a fraction of ing scheme Covax, which delivered its first the fatalities reported on other continents, doses last week with a shipment to Ghana. but is rising fast as a second wave over- The WB said financing projects were whelms hospitals. being prepared in African countries includ- African countries that have started vac- ing the Democratic Republic of Congo, cinating include South Africa, Zimbabwe, Ethiopia, Niger, Mozambique, Tunisia, Senegal, Morocco and Egypt. eSwatini, Rwanda and Senegal, without Last week the African Union’s disease disclosing the amount of support under dis- control body said the continental bloc was cussion. backing calls for drugmakers to waive “The funds are available now, and some intellectual property rights on vac- for most African countries, the financing cines to speed up their roll-out to poorer would be on grant or highly concessional countries. — Moneyweb The Financial Gazette March 04-10 2021 | Page 7 National News Experts caution RBZ on lending rate hike

Paul Nyakazeya to clear arbitrage opportunities that Group Digital Editor will reward speculative borrowing.” Muchemwa said with the loan to CONOMISTS and financial deposit ratio at 39 percent and the li- experts have cautioned the quidity ratio at 73 percent, the bank- EReserve Bank of Zimbabwe ing sector is excessively liquid. (RBZ) over its recent decision to “Although fiscal policy has done hike the main lending rate which well in managing the domestic ex- they say frustrates access to loans penditures in line with revenues, and funding for businesses. the huge external borrowings have However, the RBZ does not ex- been our major problem that con- pect to see a rise in inflation and tinue threatening our fiscal solvency says its decision was informed by hence rendering monetary targeting the need to curb growing speculative activities ineffective,” he said. activities in the economy. The Zimbabwe National Cham- In its latest Monetary Policy, the ber of Commerce (ZNCC) said it central bank announced that it had was against RBZ’s upward review of increased its main lending rate from interest rates as business could not 35 percent to 40 percent — to con- Eddie Cross John Mangudya Brains Muchemwa afford further increases. trol liquidity in the market and curb “We are against the upward re- borrowings for speculative purposes. and consumers will feel the effects. down, I would hope we can ease which the local unit is losing ground vision of interest rates (overnight This week, economists and finan- “The 14,28 percent increase in up on the liquidity issue and allow on the formal market is steeping and accommodation) regardless of stub- cial service firms said the increase of the repo rate has minimal effect to banks to lend more. a huge cause for concern. born inflationary pressures. RBZ’s main lending rate would in- curbing envisaged market specula- “The economy cannot expand “A wider gap between the for- “Businesses cannot afford any fluence how banks and other lenders tion when inflation is trending above without additional access to bank fi- mal and informal exchange rate further interest rate hike worse still price loans and savings vehicles. 320 percent,” Khanyile said. nancing ... However, if we take the also points to a currency instability given the absence of an affordable Chief executive of Mtlikwe Fi- Former member of the RBZ Mon- RBZ’s word, then this was aimed risk over the short-term. Buttress- relief facility to neutralise negative nancial Services, Kingston Khany- etary Policy Committee (MPC), Ed- at stopping people borrowing for ing these fears is the growth in base effects of Covid-19 on corporate ile, told The Financial Gazette that die Cross, said he was not expecting speculative purposes,” Cross told money supply,” Gwenzi told The Fi- performance,” the ZNCC said in its increases in repo rates by the central the central bank to hike the main The Financial Gazette. nancial Gazette. analysis of the Monetary Policy. bank would be felt by final borrow- lending rate since inflation was not Equity Axis managing director, Brains Muchemwa, an econo- The central bank said the decision ers rather than financial intermediar- rising. Respect Gwenzi, said the move by mist, told The Financial Gazette that on interest rates took into account ies. “I was surprised by this decision the RBZ betrayed the weakness of while benchmark lending rates of 40 the current liquidity conditions in “The latest move implies that as inflation rates are declining and I the Zimbabwe dollar. percent per annum appear hawkish, the market and the need to continue those planning to borrow are prob- would have thought that the very op- “We see the move as an admis- “the fact that this is far lower than controlling speculative borrowings. ably going to pay more interest than posite was appropriate. sion by authorities that the currency the policy targeted 125 percent an- they did before the latest increase “If inflation continues to come has not yet stabilised. The rate at nual growth in reserve money points [email protected] Page 8 | March 04-10 2021 The Financial Gazette Leader Page

News Worth Knowing Vaccination rollout: Battle being won, but war not over CORONAVIRUS vaccines have given hope that the pandemic may be contained not in the far distant future, with a new predictable normal expected by year- end. News about the vaccine is arguably the most reliving and breath-taking the world received towards the end of 2020, as nations were failing to control the impact of the pandemic on livelihoods as well as economies. This "good news" heralded hope that 2021 will be a better year, however, in Zimbabwe the sudden surge in cases and spike in deaths in January put a damp- er on the positive prospects the country was hoping for. But this was a result of complacency when we went into the festive season. The country relaxed the Covid-19 national lockdown, travellers were allowed to traverse without restrictions, returnees flooded the country with the majority President Emmerson Mnangagwa, left, greets new Foreign Affairs and International Trade minister, Fredrick Shava not tested and quarantined. The infections and deaths only slowed when a hard during his swearing-in ceremony at Zimbabwe House in Harare on Tuesday. Shava has replaced the late Sibusiso Moyo lockdown was reintroduced on January 5 until Monday. who succumbed to Covid-19. Prior to his latest appointment, he was Zimbabwe’s Ambassador to the United Nations in The easing of the lockdown on Monday by President Emmerson Mnangag- New York. wa brought longed-for opportunities (even if at a social distance) — to return to work, resume classes, see friends, play sports, resume contact with family in "real space" or get back to normal life. And for many others, the prospect of coming out of the lockdown when de- Business approach to artisanal bate is still live about the science supporting the vaccines can be a real worry. This may, especially, apply to those more vulnerable to the virus and those with underlying conditions. It was only when the government announced a vaccination rollout programme last month that hope was renewed. small-scale mining syndicates This development has brought confidence that the pandemic is on the wane, although we are not out of the woods yet. We might have won the battle, but the his article takes a critical analysis credited agent may choose to resign by the use of thugs commonly known as war is still on. The nation must adhere to the government’s message of not being of small-scale mining and its for- notifying the Mining commissioner in “mabhuru.” Part of the syndicate mem- complacent and continue to mask up and follow the World Health Organisa- Tmalisation through registered min- writing. There is nothing that precludes bers will proceed to extract gold and tion’s Covid-19 protocols. To date, the government has acquired 200 000 doses of ing syndication. the syndicate members from choosing enjoy the proceeds at the exclusion of SinoPharm vaccine from China which have been rolled out and administered to AsM has both the positive and neg- one of their own members for such ap- the other members. The police can not healthcare workers and other frontline workers. ative socio-economic impacts on the pointment. interfere in this civil “shareholder” matter. More doses are expected to arrive from China, India, Russia and Britain. country but its pivotal role towards the it has turned out that most mining Further the perpetrators’ names are national revenue and foreign exchange Since the Covid-19 crisis began, the global coronavirus pandemic has sparked syndicates do not make any further at- also on the certificate of registration as earnings and alleviating poverty within tempts to formalise their mining activities such they have every right to extract, an economic crisis like no other and the rollout of vaccine programmes will help various communities in Zimbabwe can- outside the certificate of registration and process, and sell the gold. As mentioned to steady the ship. The vaccination programme has brought in hope that life and not be ignored. it is therefore, necessary this has resulted in a lot of problems for above even the Ministry’s hands are the economy could get back to normal sooner rather than later. that measures be put in place to improve the mining syndicate members. limited in the absence of clear clauses Due to the pandemic, the economy last year contracted by 4,5 percent, how- its sustainability and promote a business some of the problems arising from that provide for such fall out and yet the ever, the economy is anticipated to recover and record GDP growth of about 7,4 mindset within the sector. lack of founding documents court would provide a lasting solution but percent in 2021, before moderating to around five percent thereafter, according it would appear that mining syndi- 1.Mining syndicate members have it is beyond the reach of many syndicate to Finance minister Mthuli Ncube. cates are embraced by government to al- experienced victimisation as, one can members. Without the vaccination programme, economists had already dismissed Ncu- low small-scale miners with no capacity be ousted from the syndicate through a 5.The absence of operating docu- be’s growth projections, arguing that the extended lockdown was destabilising to register companies to come together in simple action by fellow syndicate mem- ments also makes it impossible to decide the economy. The impact on the economy has been immense with the country’s order to share responsibilities and liabil- bers who will request for a new form and the way forward in the event that relations major foreign currency earners such as tourism, horticulture and manufactur- ities associated with registering mining complete the form at the exclusion of have soured and parting ways would be ing taking a battering. With industry opening up, a recovery is expected in the location. Most women have found this as the unwanted member. The new mining the only reasonable and peaceful solution. second quarter as tobacco auction floors open and maize deliveries to the Grain a cheaper option to penetrate the mining syndicate will simply complete transfer 6.The issue of the shares of a deceased Marketing Board begin. This is when economic activity is expected to visibly sector. forms and a new certificate of registration member need to be addressed in the con- recover. it would also appear that most women is issued in favour of the “new mining stitution. Although the pandemic has pushed some businesses to the brink, many have who are into small scale mining prefer to syndicate”. 7.Potential investors, sponsors or welcomed the vaccination rollout plan, with local companies willingly work- come together in order to pull up resourc- in the absence of documentation such creditors have no confidence to support ing with the government to provide their employees and their families with the es and also as a sign of strength because as constitution, partnership agreement, artisanal small-scale miners due to the Covid-19 vaccines. the mining industry can be very hostile and operating procedure manuals, it is absence of the business touch, undefined in the event of discovering a good output difficult for the ousted member to allege roles and responsibilities together with Although business has suffered, the vaccination programme is easing the commonly referred to as “kuputika.” unfair treatment. Worse still the victim- uncertainty aggravates the mistrust. gloom. A group of two or more people can, ised member has no space to complain as however, because most artisanal after following the laid down procedures some lack the resources to approach the small-scale mines are low-tech and un- Southern Africa’s Leading Business and Financial Newspaper of pegging a mine in terms of the Act, courts for a recourse, while the Ministry sophisticated people, it is difficult for the Established 1969 approach the ministry of Mines for reg- of Mines can not assist much if there are sector to improve on its own, mining syn- Publisher: Modus Media istration as a mining syndicate. Parties are no laid down procedures of dismissal. dicate should have constitutions and other EDITORIAL MARKETING favoured with a form, which all the par- founding documents. Associate Editor Advertising Manager ties sign and are issued with a certificate Thus, governments, bigger mining of registration in the name of the mining Open Forum companies and Chamber of Mines and Senior Assistant Editor Brand Executive Sales & Advertising syndicate, while their names are listed at other non-profit organisations must play the back of the certificate of registration. with an expanded role in bridging critical in- Legal provisions for Markets Editor Senior Sales Consultant formation, techno-logic and economic Mining Syndicates Thammary Brenda Vhiriri gaps. Senior Sales Executives 1.section 61 of the Mines and Min- Recommendations Companies Editor erals Act [Chapter 21:05] (hereinafter 1.Promoting a business mind set ap- referred to as the Act) generally makes it 2.Mining syndicates have also ex- proach to syndicate (small-scale) mining. Group Digital Editor Sales Representatives - Harare possible for a group of people to come to- perience usurped power by accredited 2.Assist registered mining syndicates gether and be jointly and severally liable agencies who tend to detect and override with formalising and documenting part- Chief Sub Editor in respect to a registered mining location. the decision-making powers of the syn- nership agreements Sales Representative - Bulawayo 2.section 61 (1) provides that a part- dicate members. in some instances, the 3. Implementing sector-specific leg- Clever Pedzisai: [email protected] nership should have a minimum of 2 and accredited agents have at their discretion islation; Senior Staff Writer Brand Executive - Events a maximum of 6 people. removed some syndicate members from 4. Contributing to community devel- 3.high Court Rules, 1971 Order 2A, the syndicate and caused changes within opment and providing increased econom- Staff Writers Brand Executive - Subscriptions Rule 7 defines association to include a the partnership. ic support; and partnership, a syndicate, a club or any Out of ignorance syndicate mem- 5. Providing training and educational Subscriptions Representatives other association of persons which is not bers believe that the accredited agent has assistance, and playing an expanded role Farai Mabeza: mabezaf@ﬁngaz.co.zw a body corporate. power and control over the partnership, in the dissemination and transfer of im- Senior Photographer Thus a registered mining syndicate because he interacts with the ministry of portant information and technologies. Editor-In-Chief has the capacity to conduct business, to Mines on a day to day basis. Guthrie Munyuki: munyukig@ﬁngaz.co.zw sue and to be sued. section 61 of the Act Yet this person in essence is an em- n Vhiriri is a practising Attorney, Production Supervisor Managing Director does not provide much in terms of how ployee or an appointee whose sole pur- Conveyancer and Notary Public at unregistered partnerships should further pose is to be a communication point with Zuze Law Chambers, registered with Head O ce self-regulate as it relates with the admin- the Ministry. the Law Society of Zimbabwe with Editorial, Advertising & Circulation istrator. 3.it would appear as if the ministry a wealth of experience in Land and 2nd Floor, Green Bridge South, Eastgate Complex, P.O. Box CY 376, Causeway, Harare, Zimbabwe. section 61(3) the mining syndicate of Mines does not require much as proof Mining Law, Commercial Law, Con- Tel: +263-242-781572 Advertising Media Association must appoint an accredited agent who that a fair process was done to eliminate stitutional Law, Property Law. She Website: www. nancialgazette.co.zw Distributed by: ANZ resides in Zimbabwe for purposes of the unwanted member and most people writes in her personal capacity and ensuring compliance with the Act in con- are victimised out of the syndicate. some can be contacted on +263772979277 VOLUNTARY MEDIA COUNCIL OF ZIMBABWE e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced news nection to the mining claim and not the ousted members are replaced by accredit- WhatsApp or +263715057007 or email reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of Zimbabwe at: partnership (my emphasis). ed agent’s person of choice. [email protected] No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 At any given time, the mining syndi- 4.in some instances, some syndicate *The information set above is by Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz Zimbabwe cate can revoke the agency and appoint members are denied entry into the mine way of guidance. Specific advice should another person or alternatively the ac- by fellow syndicate members through be sought on merit for each case. March 04-10 2021 Page 9 The Financial Gazette Companies&Markets BRIEFS Cambria seeks OM Turnall’s profitability improves UrNALL Holdings (turnall) says its results for the year 2020, yet to be released, show a significant improvement tfrom the prior year and further improvements are expected in 2021. the construction-materials manufacturer reported an after-tax shares shift to JSE profit of $28 million for the six months to June 2020, from a turnover of $203 million. Adelaide Moyo “The financial results for the year ended December 31, 2020 Staff Writer will be published on or before March 31, 2021,” the company said in a statement this week. ONG-terM investment compa- Meanwhile, the company says the public should exercise cau- ny, Cambria Africa, says it has ap- tion when dealing in its stock as an ongoing transaction “could proached the Zimbabwe Stock ex- L have a material impact on the value of the… shares”. change (ZSe) to transfer its shareholding “… the National Social Security Authority, is still engaged in a from the local bourse registered blue-chip transaction to dispose of its 32,5 percent shareholding in the busi- Old Mutual (OM) to the Johannesburg ness… the board therefore advises shareholders to continue exer- Stock exchange (JSe). cising caution when dealing in their turnall shares and to consult this followed the government’s deci- their professional advisers before dealing…” — Staff Writer sion in July 2019 to first suspend and later outrightly ban fungibility of shares in March 2020, arguing the dual local and for- DPA partners French company eign listing of companies was driving inflation and the foreign currency black market reNCH multinational power utility Électricité de through speculation. France (EDF), has acquired a 50 percent stake in Trading on the ZSE was banned for five FEconet Energy Kenya, a subsidiary of Distributed weeks in July and when it resumed, fungi- Power Africa (DPA). ble counters — OM, PPC and SeedCo In- the two companies announced last week that they are ternational were stopped from transacting. joining forces to develop and deploy renewable energy solu- “the company has recently approached tions for commercial and industrial customers in Kenya. the regulatory authorities in Zimbabwe to “energy is the next biggest infrastructure opportunity in repatriate its remaining shares of OM to the the journey to transform the continent’s fortune,” Norman JSe,” Samir Shasha, Cambria’s chief exec- Moyo, DPA’s chief executive said, adding that “DPA and utive, said in a trading update last week. EDF both bring a deep understanding of the energy sector He said the AIM-listed holding compa- in Africa and globally. Our partnership will accelerate the ny holds 204 000 OM shares on the ZSe. rollout of energy in East Africa and significantly impact the Unlike SeedCo, which has regained GLOBAL stocks surged this week on news that regulators in the United continent’s economies”. fungibility by moving its listing to the States have approved the Johnson & Johnson Covid-19 vaccine for emer- Valerie Levkov, EDF’s senior vice president for Afri- newly-established Victoria Falls Stock ex- gency use. The company said it expects to begin shipping four million doses ca, Middle east and eastern Mediterranean divisions, said: change, OM and PPC have been unable or immediately. Picture: The Wall Street Journal “This is a new and innovative line of business for EDF in unwilling to do the same. Kenya — and we are happy to engage in it with the DPA Shasha said this has left OM sharehold- Group.” — Staff Writer ers on the ZSe with no route to crystallise it affects the determination of asset values Significant components of the NAV in- their investment in the pan-African finan- of pension fund members and policyhold- clude a $2,5 million valuation of Paynet cial services giant. ers currently tied in the two counters,” the Zimbabwe's headquarters and its adjacent ZSE foreign sell-offs continue Cambria purchased its shares on August Insurance and Pensions Commission said plot with main road frontage and its invest- 12, 2019 on the JSe and transferred them in a recent statement. ment in radar Holdings Limited valued at OreIGN investors were net sellers of shares worth to the ZSe to guarantee Paynet's bid to in- efforts this week to obtain a comment $1,74 million, Shasha said. $493 million on the Zimbabwe Stock exchange (ZSe) crease ownership in radar Holdings. from Finance minister Mthuli Ncube on the He said Cambria’s operating subsidiar- Fin February. Shasha said if the bid to transfer the matter were fruitless, but the treasury boss ies and divisions, tradanet, Millchem and It comes as capital remittances from disinvestments out shares succeeds, the market value of Cam- in January told a local publication that the Autopay, continue to operate at near or of the country have surged following the introduction of the bria’s holdings would be approximately issue was “still under discussion”. above cash flow break-even levels, albeit central bank’s weekly currency auctions, which have im- US$200 000 based on the London Stock Meanwhile, Shasha said Cambria will based on substantially lower revenues. proved foreign exchange availability. exchange's close price of 67,52p, on Feb- not be able to post its results for the year “Subsequent to the end of FY2020, Foreign purchases during the month were $77 million, ruary 23, 2021. ended August 31, 2020 due to disturbances Paynet Zimbabwe successfully re-estab- while foreign sales amounted to $570 million. this also comes as Zimbabwe’s insur- caused by the Covid-19 pandemic, and has lished its relationship with Paywell South Leading the net-sellers during the month were African ance and pensions regulator has been push- been granted an extension. Africa for the provision of payroll software Sun, tSL and Fidelity. the most popular stocks among for- ing for a quick resolution to the continued He said the firm expects its net asset val- licences allowing its Autopay division to eign investors were First Mutual, SeedCo and Masimba. ban of OM and PPC. ue (NAV) for the financial year to remain at continue providing payroll outsourcing Foreign activity accounted for 21,16 percent of all activi- “the delay in listing and removing fun- or near the $7,17 million levels reported at services and payroll software licenses to its ty on the market during the month. gibility (suspension) of Old Mutual and the time of its interim results for February substantial client base in Zimbabwe.” the benchmark All Share Index gained 14 percent to end PPC shares is of concern to the industry as 29, 2020. [email protected] the month at 4 154,37 points. — Staff Writer VACANCY VACANCY IT MANAGER

Job brief The Person A media industry organisation is inviting applications from suitably qualified • Detailed and results oriented LEGAL AND ADMINISTRATION OFFICER individuals who responsible for planning, leading and coordinating all IT • Ability to work independently and as part of a team

related activities within the organisation. • Problem-solving and decision-making aptitude Job Brief The Person

• Highly organised and detail-oriented, strong ethics and reliability An organisation in the Media Industry is inviting applications from suitably • Excellent understanding of the Law, especially corporate law.

Duties & Responsibilities • Ability to exercise discretion and deal with confidential information qualified individuals. • Ability to exercise discretion, exhibit high levels of social and emotional

• Developing and implementing IT policy and best practice guides for the • A multi-tasking self-starter, organised and presentable individual intelligence and deal with high level confidential information.

organisation • Energetic and flexible in terms of working hours, ability to work under Duties & Responsibilities • Strong appreciation of principles of corporate governance.

• Identifying and acting on opportunities to improve and update software and pressure and in a fast-paced environment • Assist the Company Secretary in scheduling, managing and record keeping • Highly organised and detail-oriented, strong ethics and reliability

systems Conducting regular system audits • Strong verbal and written communication skills at all levels of the organisation of board of directors meetings. • Energetic and flexible in terms of working hours, ability to work under

• Running regular checks on network and data security • Maintaining statutory books, registrations and company records up to date. pressure and in a fast-paced environment

• Overseeing and determining timeframes for major IT projects including Qualifications and Experience • Provide updates on legal developments which have an impact on group

system updates, upgrades, migrations and outages • A degree in IT from a reputable institution companies, providing guidance on compliance needs and strategic Qualifications and Experience

• Overseeing and determining timeframes for major IT projects including • Masters’ degree is an added advantage responses. • Bachelor of Laws

system updates, upgrades, migrations and outages • Professional qualifications are also an added advantage • Weekly updates on all relevant legal developments, including review of the • Proven experience in carrying out company secretarial duties.

• Running and sharing regular operation system reports with senior staff • A minimum of 3 years’ experience in a related field is essential government gazette and statutory instruments.

• Managing and reporting on allocation of IT budget • Must be hands on with all IT related aspects • Drafting and verification of all corporate contracts. Interested candidates should email their applications and curriculum vitae to

• Providing direction for IT team members • Assessing and reviewing legal notifications. [email protected] no later than March 10, 2021.

• Identifying opportunities for team training and skills advancement Designing Interested candidates should email their applications and curriculum vitae to • Reviewing of company documents and ensure compliance with statutory

training programs and workshops for staff [email protected] no later than March 10, 2021. files.

Page 10 | March 04-10 2021 The Financial Gazette Companies & Markets ZSE dismisses fears of investor prejudice

Omega Ukama it difficult for Zimbabwean pension home to invest for the local investors.” backdrop of a huge confidence deficit Companies Editor funds and private individuals with no He said the VFEX is coming in to owing to previous circumstances like access to foreign exchange to invest in complement ZSE, and its addition will the introduction of a vesting period, HILE some market watchers the company. actually benefit both investors and is- suspension of fungibility and ultimate- have raised the alarm over “Opinions will always differ, with suers. ly, suspension of the ZSE.” Wpossible investor prejudice some analysts seeing the value in the The exchange, which was launched Bgoni had also said the five-week in recent deals on the Zimbabwe Stock (SeedCo) merger. What is more im- in November last year, has had a slow suspension of trading on the ZSE Exchange (ZSE), chief executive Justin portant is that adherence to the Com- start with just a single listing to date, “complicated” the launch of the new Bgoni says existing laws and market panies and Other Business Entities that of the SeedCo group’s regional exchange. rules guarantee fairness. Act and the ZSE listing requirements unit — SeedCo International. Government suspended trading The market has lately seen a number are observed,” Bgoni said last week It is envisaged that the US dollar-de- on the main bourse on June 26 on the of mergers, acquisitions and de-listings in emailed responses to The Financial nominated market will shore up foreign grounds that speculative trading in fun- amid indications that some companies Gazette, adding that both regulations capital inflows to the southern African gible stocks — Old Mutual, PPC and are angling for migration to the recent- have provisions to “protect shareholder nation, following years of mass inves- SeedCo — was driving inflation, which ly launched US$-denominated bourse interests but do not also seek to hin- tor flight. at the time had reached 700 percent. — the Victoria Falls Stock Exchange der transparent and sound commercial Bgoni last year said while “a num- The resumption of trade on the ZSE (VFEX). transactions by the companies”. Justin Bgoni ber of companies” have expressed in- excluded the three counters, which au- It also comes as the SeedCo group He insisted that the new exchange terest, not many listings are expected thorities hope will all eventually move is tying up a consolidation that aims to is open for both local and foreign in- permitted to trade in the US$, and there immediately. to the VFEX. It remains unclear if Old move the group’s local business unit vestors. is now a significant number of compa- Analysts, including FBC Securities’ Mutual and PPC are interested in list- from the ZSE to the VFEX, which “Institutions that include insurance nies also paying their employees in for- Enock Rukwara, say a slow start for ing on the new exchange. some analysts have warned will make companies and pension funds are now eign currency, and the VFEX can be a the exchange was inevitable “on the [email protected] Zimplats in US$600mln investment Nelson Gahadza Staff Writer

IMPLATS Holdings (Zimplats) says it has made significant headway on current and upcoming capi- Ztal projects with a combined value of over US$600 million. The group said a redevelopment project at Bimha Mine, which is part of the grand scheme, is almost complete. “A total of US$100 million had been spent on the redevelopment project as at December 31, 2020 against an estimated project cost of US$101 million,” Alex Mhembere, Zimplats’ chief executive said in a statement accompanying the group’s results for the six months to December 31, 2020. He said the development of Mupani Mine, the replace- ment for Ngwarati and Rukodzi mines, is ahead of schedule and the project has started receiving fleets from the depleting mines. “Installation of key infrastructure is on schedule, targeting full production in August 2025. A total of US$124 million had been spent on this project as at December 31, 2020 against a project budget of US$264 million,” he said. At completion, Mupani Mine is expected to boost Zimplats platinum reserves from three million to nine million ounces. Initially, the development of the main underground access infrastructure, at 1,105 metres deep, was expected to take 37 months, allowing first mining to take place in early 2021. The new mine is targeted for full production of 2,2 million tonnes per annum in 2025, and it has an anticipated life of 34 years. According to Mhembere, the board has approved the implementation of Mupani and Bimha mines upgrade and the construction of a third concentrator plant at Ngezi at an estimated total cost of US$297 million. “Work on the projects has commenced, targeting the commissioning of the concentrator plant in 2022 with the Bimha and Mupani mines upgrades scheduled for completion in 2023 and 2028, respectively,” he said. Mhembere noted that despite the company operating under uncertain times with the Covid-19 pandemic, it remains optimistic about the future. “The performance in the first half of the year has already demonstrated that we are on the right path, despite the new challenging operating environment,” he said. During the period under review, ore mined increased by three percent to 3,7 million tonnes compared to the same period last year due to improved fleet productivity and additional ore from Mupani Mine, which is under development. Tonnes milled remained unchanged at 3,4 million tonnes compared to the same period last year, reflecting consistent milling performance. Six elements (platinum, palladium, rhodium, gold, ru- thenium and iridium) mill head grade at 3,49 grams per tonne remained largely unchanged from the same period last year, reflecting sustained grade control at the group’s operations, the company said. [email protected] The Financial Gazette March 04-10 2021 | Page 11 Companies & Markets Unifreight shares surge on Zimplow deal

Omega Ukama cent in February alone, compared to the for the GoodYear brand of tyres in the form illiquid investments into tradable Companies Editor market benchmark All Share Index’s country. ZSE-listed shares, and is seen as an op- gains of 57,58 percent since the begin- The company is involved in tyre re- portunity to enhance Tredcor’s perfor- NIFREIGHT Africa’s ning of the year. treading, fleet tyre management, tyre fill- mance, which historically has dragged (Unifreight) shares have gained National Foods, which is the mar- ing services and distribution of various Unifreight’s performance. Ua market topping 4 000 per- ket’s second-best performer this year, brands of new vehicle tyres. Further, Unifreight says the deal cent on the Zimbabwe Stock Exchange closed February with year-to-date gains Birmingham is the 100 percent share- promises to improve its access to the (ZSE) this year, spurred by an ongoing of 342,76 percent. holder in Birmingham Property, which market. equity deal with Zimplow Holdings “The recent movement of the Un- owns a 7 000-square metre property in “Zimplow has a wider distribution (Zimplow). freight share price can be attributed to a Southerton, Harare. network that provides products and The deal, which will see the logistics number of factors, chief among them the The property is currently vacant but services to the agricultural, mining, company disposing of its shareholding obtaining economic conditions and the was previously leased by a tenant for a construction, retail, manufacturing and in Tredcor Zimbabwe (Tredcor) and proposed share swap with Zimplow,” monthly rental of US$10 350. service industries. The transaction will Birmingham Investments (Birmingham) Enock Rukarwa, an analyst at FBC Se- Unifreight says the equity deal will provide Tredcor access to the Zimplow in exchange for a 12,5 percent stake in curities told The Financial Gazette last result in utilisation of the vacant Bir- distribution network and clientele, par- Zimplow, was approved by shareholders week. mingham property. ticularly corporates.” late last year. “The property concern (Birming- operations are in the vibrant agricultur- “The proposed transaction presents Unifreight reported an inflation ad- Unifreight stock closed February at ham) has been vacant for some time, al sector and it has been profitable ever a sustainable solution to current occupa- justed pre-tax profit of $19 million for $7,94 per share, notching year-to-date accruing no revenue to the group and since 2017 paying dividends religious- tion challenges by providing a taker with the half year to June 2020, which was gains of 4 168,82 percent over its 2020 Tredcor’s tyre business continues to be ly,” he said. value adding projects,” the company said 18 percent above prior year, but “disap- opening price of $0,19 per share. hamstrung by cheap imports. Tredcor, which trades as TrenTyre last year in a circular to shareholders. pointing versus forecasted figures”. The counter picked up 2 373,52 per- “On the flip side, Zimplow’s main Zimbabwe, is the exclusive distributor The deal is also expected to trans- [email protected] Lockdown knocks Edgars stores

Adelaide Moyo Staff Writer

DGARS Stores (Edgars) says the just ended Covid-19 hard lockdown has severely constrained Eits prospects for the first quarter of 2021. The business had responded through online store sales and WhatsApp trading, but group chief executive Tjeludo Ndlovu last week said it had lost two months of normal trading and “volumes remain relatively low”. “Recent hikes in fuel price and Zinara toll fees have set off increases in prices for other products, which will further increase the cost of doing business, and limit customer demand,” she said in a trading update, adding that Edgars will focus on cost containment and managing cash flows “until the macro-economic fundamentals improve”. This also comes as other major retailers, including OK Zimbabwe, say they have seen reduced volumes and increased operating costs due to the national lockdown. Experts had warned that the potential damage to business and the recovering economy of the second lockdown — meant to curb resurgent deaths and infections — could be “immense”. Analysts had also warned that any further extension of the lockdown would see Zimbabwe missing out on major opportunities under the African Continental Free Trade Area (AfCFTA), which became operational in January. Meanwhile, Edgars recorded a 17 percent decline in year-to-date turnover for the trading period to January 10, 2021, while units sold declined to 2,4 million from 3,4 million last year. Demand for the quarter declined to 995 000 units from 1,22 million units last year. “Resultantly, inflation adjusted operating profit was down six percent compared to the same period last year. Borrowings at the end of December trading period were $245 million. The group did not have any material foreign denominated debt at the end of the quarter,” Ndlovu said. She said the company recorded revenue growth across all business units during the quarter, particularly in December. “The availability of merchandise, improved civil ser- vants’ salaries, year-end bonuses and an enhanced credit o ffering to customers contributed positively to this growth. “Notwithstanding this growth, the trading environment remained challenging due to the ever-increasing cost of doing business, liquidity constraints, high cost of borrowings, Covid-19 challenges as well as generally low disposable incomes.” Edgars chain’s year to date unit sales were down 36,5 percent to 888 000 compared to the same period in 2019, and Jet chain unit sales were down 29 percent to 1,3 million. Carousel manufacturing unit sales were up 32 percent for the period to date while total sales for the last quarter were lower than the third quarter “as the factory operat- ed for only a week in December”. [email protected] Page 12 | March 04-10 2021 The Financial Gazette Companies & Markets RBZ launches fintech sandbox Omega Ukama on controlled testing of technologies derivatives exchange, told The Finan- “This is exciting, fi nally, it had gramme also include innovation, fi - Companies Editor with broad relevance for fi nancial ser- cial Gazette this week that it is apply- been a struggle,” he said. nancial inclusion and readiness for vices market development. ing to be admitted into the sandbox. Activities which shall be tested are regulatory testing. HE Reserve Bank of Zimbabwe "As part of the process, the bank Divine Jigu, Qubit Quark’s those which the central bank would “The applicant must demon- (RBZ) this week began taking has outlined guidelines for the incu- be able to oversee in terms of the strate that live testing is necessary to Tapplications for its fi nancial bation programme. “The sandbox is a Reserve Bank of Zimbabwe Act, the achieve the testing objective; that the technology (fi ntech) regulatory sand- “The sandbox is a contained en- contained environment Banking Act, the National Payment applicant cannot carry out the test eas- box, which it says was established to vironment with regulatory oversight with regulatory oversight Systems Act, the Money Laundering ily without the support of the reserve “promote safe and responsible inno- which enables participating institu- And Proceeds of Crime Act, and the bank; and that a dedicated supervisor vation” in the fi nancial services sec- tions to test their products, services or which enables partici- Exchange Control Act. or direct support team could not ac- tor. solutions subject to the requirements pating institutions to test Such activities include peer-to- commodate the concept under its cur- In a document published this under these guidelines,” it said. their products, services peer marketplace lending, smart con- rent regulatory framework,” reads the week, the apex bank said it had not- According to the guidelines, the or solutions subject to the tracts and equity crowd-funding, ac- guidelines. ed a growing number of fi ntech start- sandbox is intended for innovators in requirements under these cording to the guidelines. It is envisaged that the sandbox ups which “require support and an the fi nancial services sector who have And even though the central bank will reduce “time-to-market at poten- enabling research and development already developed their service, prod- guidelines” last year said it is working on a reg- tially lower cost”, support in identifi - environment”. uct or business model and are ready to ulatory framework for digital assets; cation of appropriate consumer pro- “In this regard, the reserve bank undertake a proof of concept through crypto currency and digital currency tection, and inform regulatory reforms has undertaken to encourage innova- monitored market testing. co-founder, said the fi ntech communi- are listed as “non-eligible” services to meet the changing demands of the tions in the fi nancial services sector, Qubit Quark, a start-up based in ty had been itching for such an initia- for the sandbox. fi nancial sector, among other benefi ts. by developing guidance and standards Bulawayo that is planning to launch a tive from the authorities. Eligibility criteria for the pro- newsdesk@fi ngaz.co.zw Proposed SA chrome tax to benefit Zim Farai Mabeza Staff Writer

PROPOSED chrome ore ex- A port tax in South Africa (SA) would boost investment in Zimba- bwe’s chrome ore industry if it passes, experts have said. The proposed tax would make it more ex- pensive for South Afri- Isaac Kwesu can chrome producers to ship their unprocessed product overseas, pushing them instead to transform the raw material into ferrochrome inside the country. Fastmarkets, a global commodity data provider, said a recent poll it conducted showed that Zimba- bwe, which currently allows the export of chrome ore, would be the likeliest beneficiary of its neigh- bour and largest trading partner’s proposed tax amendment. South Africa is the world’s biggest producer of chrome ore, a key ingredient in stainless steel. Isaac Kwesu, the chief executive of the Chamber of Mines of Zimbabwe (CoMZ), said the introduction of the tax will see an increase in investors looking to diversify supply, rather than reduction in offtake from SA, “which is why Zimbabwe will naturally benefit due to the abundance of its resource”. “As the holder of the second largest global chrome resources at 12 percent, second only to SA at 72 percent, indeed Zimbabwe is a natural investment des- tination for chrome-related investment,” Kwesu told The Financial Gazette this week. He said a significant global supply would be created if exports out of South Africa were cut. “Note that almost 80 percent of China's ore requirement is currently coming from SA and the ore from South Africa with its specific characteristics forms the bulk of ore input for most ferrochrome smelters there. “As such, the dependence of Chinese ferrochrome smelters on SA ore is significant and is here to stay,” Kwesu said. Meanwhile CoMZ says issues that have previously reduced investment appetite in the sector remain. “Mining is a long term, high capital investment and requires a fairly high degree of confidence in the deposits of at least 30 percent typically. Exploration work will need to be done to upgrade in this area to attract investments.” Chrome ore is a relatively low value high volume commodity that requires efficient bulk movement for viability and typically gets to global markets via sea-going bulk vessels. “Investment in upgrading and recapitalisation of the rail and road network as well as the rolling stock, in the case of rail, will be required. Zimbabwe is land- locked therefore access to sea ports in Mozambique or South Africa needs to be optimised and requires investment,” Kwesu said. [email protected] The Financial Gazette March 04-10 2021 | Page 13 Column Celebrating women in banking

Sibongile Moyo executive role. potential women in the senior executive roles With the new ways of work characterised This picture reflects exclusion of women within the core business of the bank and with by changed management styles, flexible work S WE celebrate the 2021 International Women’s from real decision-making influence in finan- leadership span of control, away from the old hours and remote working we find retention Day (IWD) under the theme “#ChooseToChal- cial institutions and accentuates inequality. preserve of women in enabling functions and and inclusion opportunities for women by re- Alenge”, and focus on inclusion and diversity, we With automation and digitalisation trends, corporate services. ducing barriers to career growth as they navi- reflect on the representation of women in the banking women who dominate frontline retail and cus- gate various stages in family life industry. tomer service roles may become casualties of We need to set internal goal commitments Financial intermediation services offered by banks optimisation initiatives further reducing their for gender inclusion and career mobility and play a significant role in most economies with val- representation if we do not choose to chal- measure these whilst being held accountable ue-added contribution to gross domestic product rang- lenge and lead inclusive change. for their performance at management and at ing from five to 15 percent, and corresponding impact What can we do to achieve a gender bal- board level. on employment. anced banking industry following the recruit- Finally, as women we must lead from the The core of the inclusion agenda is achieving gen- ment process which at the outset should be front and role model by raising the voice and der equality and empowering all women and girls under conscious about gender representation? visibility of fellow women within financial in- the sustainable development goal number 5 of the 2030 We have to be intentional about mentoring, With the increasing dominance of technol- stitutions, thereby giving them currency and United Nations Agenda for Sustainable Development. sponsoring, coaching and exposing young pro- ogy in banking we must sponsor, mentor and creating tangible succession. Globally, women make up 52 percent of banking sec- fessional women to networks that will build coach women in STEM programmes to gen- ●Dr Moyo is the managing director of Ned- tor employees thus portraying a picture of equal repre- their career prospects progressively. erate the pipeline of women with technology bank Zimbabwe, Institute of Bankers of sentation. We have to be intentional about co-creat- skills and leadership efficacy and confidence Zimbabwe councillor and member of the ing career paths that lead to inclusion of high to lead banks. Bankers Association of Zimbabwe.

Sibongile Moyo

Unpacking this simple statistic reveals a funnel effect where women average 38 percent of middle management and 16 percent of bank executive committee members according to Professor Michel Ferrary’s 2018 Gender Diversity in the Banking Industry report. The study examined the female representation of 71 banks in 20 countries and found that women in the global banking sector are faced with a ‘double glass ceiling’ effect where, of those who reach middle management, far fewer are able to ascend further to executive roles. The phenomenon is slightly reversed on bank boards of directors where women are better represented due “Within the to quota-based diversity standards imposed to mit- Bankers Association igate risk. of Zimbabwe (BAZ) These standards ob- stable of 17 financial served on boards of prom- institutions with 13 inent banks are a result of commercial banks, numerous studies that por- tray women as less likely two building societies, to gamble with assets. one savings bank and Notably, women were one infrastructure conspicuous by their ab- development bank, sence from the leadership we currently find one of the worst offending firms during the 2008 woman led institu- global financial crisis. tion.” The 2020 edition of the Oliver Wyman Women in Financial Services report shows positive strides in inclusion with 20 percent representation of women on executive committees and 23 percent on Boards. However, this masks the nuance that only 6 percent of the chief executive officers (CEOs) of the largest global financial service firms are women and that the largest global banks are led solely by men. In South Africa, home to the largest banks in Africa there are currently no women amongst incumbent bank CEOs with two women having been at the helm of South African banks in the last decade. Within the Bankers Association of Zimbabwe (BAZ) stable of 17 financial institutions with 13 commercial banks, two building societies, one savings bank and one infrastructure development bank, we currently find one woman led institution. In the local banking industry women constitute 42,7 percent of bank employees with three quarters occupy- ing non-managerial roles, and with three out of every ten executive committee roles being held by women. Over the last two decades there have been five women CEOs of commercial banks under the BAZ. When we conduct a deep dive into the composition of bank executive committees, we find even fewer women in the high-powered roles dominating value on the balance sheet and with potential for ascension to the chief Page 14 | March 04-10 2021 The Financial Gazette Column Fiscal incentives for farmers HE agriculture sector largely infl u- vention (e.g growing of trees, contour rigs gains tax remains payable if the item is an immovable ences the economic, social and po- etc.), water conservation works (e.g dams, property. Companies in the agriculture sector are also Tlitical lives of the majority of people weirs embankments), clearing of land, sink- entitled to import capital equipment duty free in terms in Zimbabwe. It is also the source of suste- ing of boreholes and wells (other than bore- of SI 6 of 2016. To qualify, the farmer should apply to nance for most rural Zimbabweans. hole equipment), aerial and geophysical sur- the ministry of Agriculture for a recommendation let- At commercial level, the sector produc- veys and fencing. Such expenditure would ter that will be submitted to the ministry of Finance. es export crops such as tobacco, cotton and ordinarily be treated as capital expenditure However, the capital equipment should not be sold horticulture products which bring in foreign deductible against the income of the farmer or disposed of within fi ve years from the date from currency and improves the balance of pay- over a number of years. which it entered under rebate, otherwise, both VAT ment. It is one of the biggest employer in In other words, the farmer is allowed and excise duty become due and payable. The duty Zimbabwe and also the key to the success these deductions in one go in the year the rebate can save the farmer some money which he/she of downstream industries, among them the expenditure is incurred, whether or not the can then channel towards other farming projects. manufacturing industry. work is completed. Specifi c reliefs also apply to livestock and timber To resonate with this thinking, there are Tax Matters However, it is a requirement that the farmers. With regard to livestock farmers, they are en- a number of fi scal incentives afforded to with construction or the work is done by the titled to enforced sale relief arising from forced sale farmers by the tax statutes as more fully ex- Marvellous Tapera farmer himself/herself and where these are of their livestock due to stress of epidemic disease, plained below. acquired together with the farm the expen- drought or impending farm acquisition. Any taxable Farmers just like any other businesses od of 4 years. In addition, they also enjoy diture is disqualifi ed. In the event that these income from such a sale, upon the farmer making an are entitled to write off their capital ex- 100 percent deduction in the year in which items are disposed of, the farmer would not election, is taxable over three years in equal install- penditure against their income over a peri- they incur expenditure on soil erosion pre- suffer income tax on recoupment but capital ments. The election is however, irrevocable. If the same farmer wishes to re-stock the herd, he/she is entitled to a restocking allowance which is an amount equal to 50 percent of the purchase cost subject to the farming not exceeding the carrying capacity of the land upon restocking. The allowance is in addition to the cost of purchase of the livestock which is also an allowable deduction. In addition, the farmer may also elect to equally spread income from other farming operations over three years, in the event that such income is less than enforced sale taxable income. The election is also irrevocable. Timber farmers can elect to carry forward the cost of planting the timber until the timber has reached maturity. They can also claim an allowance of fi ve percent of cost of planting annually until the timber has reached maturity. Such concessions save them from losing the benefi t of assessed loss which currently has six-year lifespan. Orchards and vineyard farmers are also entitled to defer the deduction of operating expenses (general and statutory deductions plus planting and farm up- keep expenses) until a farm becomes productive. The operating expenditure is deductible when production commences equally over the estimated productive life of the orchard or vineyard. The farmer should sub- mit to the commissioner, in the year the farm becomes productive, the estimated number of years the farm is to be productive. Meanwhile, tobacco and cotton farmers are exempt from producing a tax clearance certifi cate for purposes of 10 percent withholding tax on contracts. This is a tax advantage to them over other taxpayers who may be required to produce their tax clearances in the absence of which, 10 percent withholding tax is deductible on their payments. In recent years, the government enacted an anchor company incentive. This is a company that provides inputs, agronomic advice and marketing opportunities to a group of outgrower farmers and small or medium enterprises. Outgrower farmer means a farmer who is a party to a scheme or contract where under an anchor company supplies inputs, agronomic advice and marketing opportunities in return for the farmer selling or de- livering the contract or scheme produce to the anchor company or other person designated by the scheme or contract. The incentive entitles the anchor company to a deduction of expenditure of technical and support services incurred in assisting outgrower farmers plus 50 percent of such expenditure. However, the incentive is currently awaiting proper regularisation from the taxman to be benefi cial to the anchor companies. Last but not least, farming inputs and equipment are subject to VAT at zero percent. These inputs include animal feed, animal remedy, fertiliser, plants, seeds and pesticides. The zero rating of inputs reduc- es cost of production for the farmer thereby boosting agriculture. This article touched on some of the tax incentives which farmers can take advantage of and it is imper- ative for the farmer to be aware of these and many others, in order to conduct their farming business in the most cost effective manner. ● Tapera is the founder of Tax Matrix (Pvt) Ltd and the chief executive of Matrix Tax School. He writes in his personal capacity. Meanwhile, Ma- trix Tax School will be hosting its “Managing VAT Compliance-Practical Considerations” Webinar Seminar on March 17, 2021. The Financial Gazette March 04-10 2021 | Page 15 Column Implications of the global and continental outlook S WE move towards the end of Q1 2021, sev- some months away from the day hotel chains or resorts eral conversations have been centred on the re-open on a large-scale basis. In addition, air travel is Aimplications of global and continental develop- likely to remain massively below prior levels. Global ments on the Zimbabwean economy. This is because tourism has not only shrunk but has changed shape. Air- 2021 is still considered a year of unusual uncertainty lines, hotel chains and aircraft manufacturers may con- even from a global perspective. From health, economic tinue to struggle. In the case of Zimbabwe, tourism is vitality to social stability. recognised as one of the pillars anchoring Zimbabwe’s While the spread of the Covid-19 has slowed in Chi- economic growth and job creation strategies. The out- na (where it is believed to have originated), outbreaks break and exponential increase of Covid-19 cases has are still happening on a rolling basis around the world. therefore negatively impacted on the sector’s contribu- Amid exceptional uncertainty, the IMF expects the tion to overall GDP. global economy to grow by 5.5 percent in 2021 and 4.2 Debt issues & poverty levels percent in 2022. Africa is experiencing its worst debt burden since The growth reflects expectations of a vaccine-pow- 2001 with Zambia being the first country to default on ered strengthening of activity later in the year and addi- sovereign debt ever since the pandemic started, and 14 tional policy support in a few large economies. A look percent of the continent’s overall debt is owed to Bei- at economic prospects in sub-Saharan Africa (SSA) Global Economic Growth Outlook (%). Source: IMF jing. reflects that the region is contending with an unprece- The fall in commodity prices was already affecting dented health and economic crisis. The resurgence of selves. The World Bank has pledged to provide funding the global economy. This is because key growth drivers revenues for countries like Angola, DRC, and Gabon. new cases in many advanced economies and repeated to aid both immediate health priorities and longer-term for the Zimbabwean economy lie in the improvement A recent paper by a group of economists at the World outbreaks across the region suggest that the pandemic economic recovery. in exports and firmer commodity prices as the world Bank argues that Covid-19 will push about 40 million will likely remain a concern in the outlook period. The However, this may not the adequate. Meanwhile, economy recovers. to 60 million people into extreme poverty, about 23 mil- region is forecast to grow by 3.1 percent in 2021. one nation after another will be seeking arrangements Vaccine rollout delays lion in SSA and 19 million in South Asia while Latin This is a smaller expansion than expected in much with these financing institutions. As a result, we may The key downside risk to economic growth fore- America could see 16 million people join the ranks of of the rest of the world, partly reflecting SSA’s relative- well see most of the economies of the world acting in casts relates to potential delays in the vaccine rollout. the extremely poor. ly limited policy space within which to sustain a fiscal their own self-interest. In that These could stem from approval To give developing countries the financial capacity expansion. scenario, what kind of help can delays, unforeseen medical prob- to flatten the curve requires a level of financial support In this article, we look at specific global and con- a country like Zimbabwe realis- lems, logistical bottlenecks or low that will not be feasible in the face of the external debt tinental trends that could have an impact on the local tically expect? take-up rates if public confidence obligations. economy; Fractious geopolitics & falters. Several vaccines have been Zimbabwe is sitting on external debt in the region Mixed economic recovery trade tensions approved but the question is how of US$8 billion. This could limit its ability to secure fi- We note that the strength of economic recovery will The coming in of Joe Biden do they work and are they effec- nancial support. vary significantly across countries and regions, depend- does not necessarily mean that tive enough against new variants In conclusion, the risks related to Covid-19 will not ing on access to medical interventions, effectiveness of the new administration will be of the coronavirus? For developing be going away in the next weeks or months. Even if the policy support, exposure to cross-country spill overs able to patch up a crumbling nations like Zimbabwe, the risk is virus does go away, it will likely leave behind a changed and structural characteristics entering the crisis. There rules-based international order. that 2021 continues to be charac- world given that it is an entire reset of the economic sys- are also concerns that the speed of vaccination will not Business has become more of a Economics & Market Intelligence terised by repeated circuit-breaker tem. be adequate in certain regions. geopolitical battlefield. The ob- with lockdowns, unrelenting pressure on As outlined in the Morgan & Co Research 2021 A country like Zimbabwe remains on the back-foot vious examples are Huawei and BATANAI MATSIKA health systems and extensive vol- Economic Outlook, investors on our market should given a commodity-driven economy; limited social TikTok. Elsewhere, reports that untary social distancing. This could seek exposure in companies that have defensive busi- safety-nets and the dependence on donors and external Japan’s stimulus includes more translate to a sharp rise in small ness models, cash-generative, export-oriented and not support. than US$2 billion to help companies move production business failures and faster-than-anticipated increases depended on local economics. Country-centric policies away from China hints at the coming geopolitical land- in unemployment.  Matsika is the head of research at Morgan & An important trend is that the world’s largest econ- scape. Africa and developing economies such as Zim- Shrinkages in global tourism Co, and founder of piggybankadvisor.com. He can omies are blowing up their deficits with unprecedented babwe face risks from these accelerated disruptions of The main risk that has emerged is that we are still be reached on +263 78 358 4745 or batanai@mor- stimulus packages. It feels like every country for them- ganzim.com / [email protected] Page 16 | March 04-10 2021 The Financial Gazette Column Best definitions of organisational culture have put together information that will in this definition are that it is the “collective group are likely to show similar behaviour patterns as they help you understand organisational culture in programming of the mind”. deal with day to day challenges of life. This definition Idetail. When you define organisation culture If you take literally from the software side, allows organisations to study and understand group properly, organisational culture change becomes once software has been programmed, to change behaviour and to maximise that behaviour for the benefit even easy. it you would need to update the software through of the organisation. according to hofstede, you can take various scholars and top authors have programming again. This means that in essence organisational culture as “software of the mind”. defined organisation culture based on their organisational culture according to hofstede 2.Edgar Schein (2004) defines organisational culture theories and experience and I am sharing some represents instructions and commands installed as “the pattern of shared basic assumptions — invented, of the definitions of here. This understanding in the minds of the people. discovered, or developed by a given group as it learns will help you as you go through the process The instructions are equally shared by all to cope with its problems of external adaptation and of organisational culture change. Without an group members? Organisational culture is a internal integration — that has worked well enough to understanding of organisational culture, most HR Perspective group phenomenon, once a group has been be considered valid and, therefore, to be taught to new of the organisational culture change efforts programmed, the only way to change the members as the correct way to perceive, think, and feel fail. I have researched organisational culture with culture of the organisation is for you to uninstall in relation to those problems”. In this definition, the key by looking at the top scholars on organisational Memory Nguwi the current programme and put in another theme is that organisational culture is a group phenomenon. culture and picked the best definitions. programme or upgrade the current programme. It is a product of shared experience by a group of people as “Corporate culture means different things Sull, Stefano Turconi, and Charles Sull note. even from a software point of view, that is not they try to cope with the challenges in their environment. to different people. There are more than 50 1.Hofstede (1991) defines organisational an easy task. The definition implies that different What is interesting is that organisational culture can be distinct definitions in the academic literature, culture as “the collective programming of the cultural groups can have different programmes taught to new members as a “ way to perceive, think, and including the stories employees tell to interpret mind which distinguishes a member of one which makes them different. feel in relation to those problems”. For those involved in events, organisational rituals, and corporate group from another”. It is evident from this The other key takeaway from this definition organisational culture change, the best way to transform symbols. The official culture statements we definition that organisational culture is a shared is that it cannot be present in one person and one the culture of the organisation is to remember that studied, in contrast, display a striking consistency group phenomenon that results from how a group person cannot represent organisational culture. organisational culture can be taught to new members of the in how they define corporate culture,” Donald interacts with its environment. The keywords People from the same organisational culture organisation. 3.S.Chris Edmonds defines organisational culture as "all about how people treat each other — how leaders treat their teams and peers, how employees treat each other, and how people treat customers and vendors. It’s about relationships and respect.” This definition focuses on how people interact within an organisational setting. These people include employees and other stakeholders. The emphasis is on the relationship and respect that these people show to each other as they interact. The focus in this definition of organisational culture is building productive relationships centred on respect. Unlike the first two definitions of organisation culture, this definition focuses on the role played by the leadership in shaping organisational culture. Specifically, it looks at leaders as role models in the way they treat teams, peers and other key stakeholders. The assumption is that if leaders do this well exhibiting the types of behaviour they want to promote, it should stick on the rest of the organisational members. 4. To Elliott Jaques (1951), “the culture of the factory is its customary and traditional way of thinking and doing of things, which is shared to a greater or lesser degree by all its members, and which new members must learn, and at least partially accept, to be accepted into service in the firm”. The keywords here is that organisational culture is a customary and traditional way of thinking and doing things. It is shared by all its members again underpinning that fact that it is a group phenomenon. Interesting to note from this definition, new members must learn and partially accept that this is the way things are done here or else they will not be accepted into the organisation. This definition dovetails with how Edgar Schein defines organisational culture. A lesson here is that it is very likely that any attempt to change organisational culture by focusing on a few individuals may not succeed, as the group need to have some form of consensus on the group mode of thinking and doing things. 5.Ravasi and Schultz (2006) define organisational culture as “a set of shared assumptions that guide behaviours”. This definition of organisational culture implies that these assumptions are shared by a group and forms the foundation of that group’s behaviour. The fact that this definition takes this as a group phenomenon, means new members will need to be taught the new way of doing things. 6. Marcella Brema(2012) defines organisational culture as “ how we do things around here”. She further indicates that culture can be observed: “when you enter a building, you get a glimpse of corporate culture right away from what you see — how the office looks and what people are doing”. She, however, acknowledges that the above definition of organisational culture is simplistic as it is hard to observe because “ culture is not visible from the outside right away”-. This definition of organisational culture acknowledges that what drives what you see as characterisation of organisational culture at the surface does not reflect the true culture of the organisation. The author goes on to say, “Culture is not just how we do things around here. The other part of a culture is under the water’s surface and that is how we think and feel about what we are doing here. Why are we doing these things in this particular way.” 7.Cameron and Quinn look at organisational culture differently. They see organisational culture as characterised by the organisation falling into one or more of the four quadrants. The first one is the Clan culture quadrant, which focuses on doing things together. The second one is the hierarchy culture which focuses on doing things right. The third one is the adhocracy culture which focuses on doing things first. The fourth and final one is a market culture that focuses on doing things first. Organisations according to them can fall into any one of these cultures and sometimes they can have a bit of all the four cultures but there will be one dominant organisational culture. See full version on www.fingaz.co.zw n Nguwi is an occupational psychologist, data scientist, speaker & managing consultant with Industrial Psychology Consultants (Pvt) Ltd, a management and human resources consulting firm. He writes in his personal capacity The Financial Gazette March 04-10 2021 | Page 17 Column Future of marketing, the demise of ad agencies? In MY department recently, we have aging the power of mobile. Geoffrey James machine and deduce all these things at the which marketers are keen on, is a branch of ked as you will have no role to play. For ex- just hired a student intern studying IT.” thinks that marketing will be more reactive click of a button. These platforms are also machine learning that uses algorithms to ample, a company that used to record brisk “This was a statement made by a mar- and less proactive. Traditionally, market- enabling marketers to easily and quickly glean insights from continuous streams of business selling computers 15 years ago keting director recently. ing has been seen as a "proactive" activity measure ROI as the analysis of figures such data. The job simply entails creating algo- ceased operations as it was no longer viable “Its high time universities start to seri- where marketing activities "create" a brand as referrals, sign ups, likes, purchases are rithms and accessing data pipelines to de- as a going concern. Since it was already in ously consider reviewing their curriculum and "create" demand. That's beginning made available. liver high impact, personalised recommen- the technology business, maybe had they as traditional marketing is easily and quick- to turn upside down now that customers There are shocking marketing positions dations at scale. diverted a bit and also become agents of ly losing its place.” He substantiated the va- play a far more visible and powerful role that are trending right now and on very In this regard, it high time that business mobile gadgets like Samsung, nokia and lidity of his reasons for such a move. This in brands. Reviewing sites that post buyer high demand. In fact, the highest paying starts bringing next generation technolo- Apple, they still could have been in busi- statement really made me ponder further on experiences, for example, now play a big- marketing position requires one to have big gies like IoT, chatbots, AI, and others into ness. It’s always good to read and predict the future of marketing. ger a role in defining brand image than any analytical skills. Positions like chief expe- marketing, voice of the customer, and oth- the future Cognisant of the developments taking individual marketing activity. Using social rience officer, chief listening officer, chief er programmes as these are the platform I was invited to present a paper by one place in the global digital arena, particu- media, companies can enlist customers and happiness officer, digital brand manager, where our target markets exist. A smart university to Vice Chancellors, Marketing larly in communications, digital platforms, prospects to help with everything from de- machine learning officer, digital strategists, phone is no longer a want but has sudden- and PR directors of universities and Poly- mobile platforms, media in general and the fining product requirements to designing social media engineer, mobile marketer ly become a need for every global citizen. technics here in Zimbabwe on the topic impact that social media has had on inter- advertising campaigns he added. content librarian, gesture writer, commu- This phenomenon is cutting across all sec- “Effective Institutional Branding in the actions, Internet and artificial intelligence Let me hasten to point out that mar- nity executive, simplicity engineer etc. tions of marketing and advertising agencies Digital Era’. (AI) have predominantly taken over stra- keting is both a science and an art right? It are quickly emerging and overtaking the are not going to be spared. It is high time One of my major highlights was that tegic orientation of business that they have is a science in that we are expected to de- traditional positions we have always been they also start adapting their operations to universities should be the champions of become part of the day to day conversations duce patterns that define a specific market accustomed to. become champions of digital platforms for digital transformation and adoption as they at the top table. Customers move in the mo- through customer behaviors within data, corporates. Jeff Beer agrees that creative are the teachers of these. Researches and ment, but corporate budgets and processes but also through more qualitative sources energy will see a shift away from agencies papers on the trends need to come from are quarterly and annually. That will not of information, such as conversations with and towards publishers and platforms. An such institutions, and we from the corporate match the pace. It requires not just funda- prospects, peers, and third parties. Howev- increasing number of the brightest creative world, need to follow suit. mentally better systems but also different er, it is moving into much more advanced Gillian Rusike minds will abandon standalone agencies The banking sector is one sector which ways of working to react and move in real realms with big data and neuro-marketing. for creative divisions of media companies is quickly transforming due to the dictates time with the customer, according to Betsy On the other one hand, it is an art as it Among a chief experience officer's roles and tech companies, and in turn, these will of digital transformation. I strongly don’t Holden. also creates demand of a product or makes is to insure that customers have a positive become the go-to shops for best-in-class think that in 10 years from now there will The digitisation of the customer deci- you want to try a product or service. experience with the brand from the moment brand services. be people still wanting to go to a physical sion journey has made it so much easier for Both perspectives still work and are they first discover the product/service to the Creating successful online customer structure called a bank. If not to seek guid- people to research and buy different prod- much more needed in a marketer in order moment the product or service ceases to relationships means building up hugely ance on some other issues from my account ucts. At the same time, that trend has un- to be relevant in the trade. The development exist. For one to land that job, one should detailed information about them that can manager, I don’t remember the last time I locked an unprecedented degree of insight of digitalisation, big data and nuero-mar- be able to report and communicate data be used to tailor the kinds of messages and have gone to the bank. into what people really want. Creating those keting noted above, seem to be taking over through visual representations of data in offers you send. It means being able to keep In Hong Kong, Standard Chartered relevant communications, truly personal the marketing profession, and it would not dashboards and possess analytical skills in- up with their preferences, and ensuring that Bank has already applied for a virtual bank- connections, and messages that clearly con- be business as usual in 10 years to come. A cluding statistical analysis skills to interpret, you strike the right balance between tempt- ing licence and once issued, the bank will vey a brand’s value is what will differentiate much sought-after marketer in a few years prepare, measure and report data. A digital ing them to make that extra purchase and be able to offer fully mobile phone-capable excellence in marketing from the also-rans. to come is one who will have much strength brand manager helps set and implement hitting the "unsubscribe" button. banking services. Daniel newman consents that mobile on the science side of things as AI would the digital vision and strategy for company An ad agency that will survive in the Digital is disrupting everything. It is is going to become the center of marketing. be providing all the algorithms needed to brands across all digital channels. This in- next 10 years is one that will own the plat- therefore, equally important that the mar- From cell phones to smartphones, tablets to make a decision. In fact, decisions such as cludes, but is not limited to, growing brand form to implement quickly and timeously keter of the future be constantly in sync wearable gadgets, the evolution of mobile what time to place an advert, which me- awareness, overseeing digital platform de- its digital campaigns at very minimal costs. with these developments in order to be rel- devices is one of the prime factors influ- dia, tastes, spend, buying patterns, demo- velopment, content creation, storytelling, Speed to adapt is of essence. Market Re- evant. Speed is essential, tactics are becom- encing the marketing world. As the focus graphics, what message to develop are all social media, personalisation and more. search companies, the tide is also pursuing ing much more pronounced than strategy. is shifting to smaller screens, brands will available at the crunch of the big data that According to LinkedIn's data, the jobs for you. With AI, your roles are also at stake. n Rusike is the executive secretary be able to strike up a more personalised is available. What is basically needed is a machine learning engineers are growing at If marketers could deduce their information of the Marketers Association of Zimba- relationship with their customers by lever- marketer who is capable to sit behind a a faster clip than any other job category. AI, from the big data, it leaves you exposed, na- bwe. He writes in his personal capacity. Page 18 | March 04-10 2021 The Financial Gazette Column How COBE Act helps directors in this Covid era

he "new normal" ushered in by members provided for in Chapter 5 of the Act, orandum of association or articles of the Covid-19 global pandemic Naturally, directors ought to be but what is important to note is that association. All other companies are Thas made it necessary for com- diligent in ensuring that everyone in the law recognises the usefulness of free to hold meetings in this manner. panies to find new ways of being ef- the virtual meeting is adequately iden- digital signatures. There is no better Can a decision reached in a virtual fective while staff works remotely. tified so as to avoid impersonation or time to put digital signatures to practi- board meeting be challenged? One aspect of doing business that anything that could nullify any resolu- cal use than during the current global The outcome of any administrative needs to continue uninterrupted is tions passed by the board. It is easier pandemic. meeting can be subjected to challenge making decisions at board level de- to identify members on visual com- even if still in doubt, a director can in court by review or setting aside spite the numerous lockdown restric- munication tools like Zoom, but care send an accompanying email confirm- (nullification). tions that have been put in place local- still needs to be taken to ensure that ing both the written consent and dig- Of importance is whether the basis ly and across the globe. everyone in the meeting is who they ital signature are theirs. At any rate, of any such challenge has any merit. In this article I will highlight how ought to be. clarity is needed on the question of the For instance, a decision reached in a the Companies and Other Business If a meeting proceeds with an im- Legal Matters effectiveness of digital signatures in virtual board meeting may be chal- entities Act [Chapter 24:31] (COBe poster present, for example, then the with Zimbabwe. That being said, I cannot lenged on the basis that a physical Act) allows companies to integrate decision resulting from that meeting HiLary K Muza see why digital signatures cannot be meeting should have been held in- modern technology into their business can be challenged. equally important used in adopting board decisions. stead. operations while remaining in com- is the need to maintain confidentiality signatures perform the same function The usefulness of holding proce- however, as long as a full quorum pliance with the law through virtual as sensitive information is often ex- as written ones. dural hearings and meetings virtually voted on the decision and were within board meetings. changed during board meetings. The South African Supreme Court was explained in the South African the provisions of section 196 of the Section 196 subsection 2 of the How are decisions made in a in Van Vuuren v Van Vuuren (1854) 2 case of Food and Allied Workers COBe then that challenge is unlikely COBe Act provides for virtual board virtual board meeting officially Searle 116 at 121 stated that: “To sign Union (FAWU) v South African to succeed. meetings held by means of electronic, adopted? a document means to authenticate that Breweries (Pty) Ltd (SAB) and An- The COBe Act introduces a raft of telephone conference or other audio Adoption of decisions reached which stands for or is intended to rep- other (J435/20) [2020] ZALCJhB 92 modern tools for the efficient registra- or visual communications equipment in board meetings can be done by resent the name of the person who is where Moshoana J stated that, “With tion and administration of companies if all participants can hear and talk or getting the written consent of every to authenticate.” the new normal – lockdown period in Zimbabwe. otherwise communicate concurrently board member with voting rights. The Simply put, a signature merely during Covid-19 pandemic – zoom is As refreshing as it is to have leg- with each other. written consent must simply state the confirms the identity of the sender the appropriate form in which meet- islation that speaks to how business This means that anything from a nature of the action to be taken and be and that they confirm the contents of ings can take place. is done in modern times, more still Zoom meeting to a group WhatsApp signed by all relevant directors for it the signed document. A digital signa- "What is involved in this period needs to be done. call or any other means of communi- to be valid. As long is this is done, the ture in my view is sufficient to con- is the health and safety issue…It is a For instance, there is need for leg- cation suffices as long as all members decision will have the same effect as a vey a director’s written consent to a necessary tool to ensure that restric- islation that addresses electronic com- can be identified, be heard and hear decision adopted through a vote in an decision adopted in a virtual board tions like social distancing as a mea- munication tools such as how digital others. The idea behind this provision ordinary meeting. meeting. sure to avoid the spread of the virus signatures are used so that contention is to give the outcome of virtual meet- Can directors use digital signatures The COBE Act defines a digital are observed…This accords with around the issue is avoided. ings the same effect as though they to show their consent? signature as “an electronic signature the new normal and is actually fair.” By and large, however, the COBe were conducted physically. It would make little sense for created by computer that is intended When can a company NOT hold Act represents a huge step forward in For one to be considered present at the COBe Act to provide for virtual by the registered user using it and by virtual board meetings? taking corporate governance and ease a meeting, one simply needs to be on meetings and yet demand that written the Registrar accepting it to have the The only circumstance under of doing business in Zimbabwe into the call, be able to participate and hear consent be submitted physically. An same effect as a manual signature.” which a company cannot hold virtual the future. the contributions of others. easy fix is attaching one’s digital sig- The Act limits the use of a digital board meetings is if it is specifically n Muza is a lawyer and writes The importance of identifying nature to their written consent. Digital signature mainly to filing of company prohibited by that company’s mem- in his personal capacity documents in the electronic registry The Financial Gazette march 04-10 2021 | Page 19 Column Giving constructive feedback

imbabwe, like other countries, has been going ple who always believe that they are right and back and you can see why people do not want and helpful feedback, which is difficult to find. through difficult times for a while due to a number cannot learn anything new. It takes time to make to give feedback. Such situation destroys mo- a In every case, feedback is meant to clear Zof reasons and lately as a result of coronavirus. if them believe that they are wrong. In the exam- tivation, confidence, and focus. Is feedback an the air. Even if it is performance feedback, it is ever there is one factor which I believe can take people ple given above about the state of our roads, a issue in your organization or institution? if the recommended that leaders and managers prac- very far, it is effective feedback. person would tell you that our roads are better response is yes, you need a feedback coach so tice positive feedback. If you starve people with Effective and timely feedback is a critical component than other countries’. i that you can get better. critical information, they will speculate and to of a successful organisation and this also includes feed- laugh out. Giving and a There are some manage speculation will be difficult. I have back on performance management, change management accepting feedback is a other difficulties with learnt over the years that there is nothing wrong processes like organisation restructuring; performance of mammoth task. traditional face-to-face in over communicating. new brands; progress on transitional issues. aThe reason why negative feedback. most In conclusion, the topic on giving feedback Once the process of performance management has leaders and managers of them boil down to the is important and we need to know that there is commenced, it is critical to plan for feedback. Everyone do not want to give fact that it focuses on both negative and positive feedback. wants to know how she or he is doing in given assign- feedback is that they failures of the past not We therefore, need to prepare to get both. It ments. have power over us, Philemon Chitagu positive actions for the is not always the case that you will get posi- When I look at what is generally happening across our compensation, ad- future. tive feedback every time. Life is not like that. Zimbabwe, one wonders if there has been feedback on in- vancement, and job se- Feedback can rein- It is not about feedback which is a problem. It dividual performance in some areas. If there was, it might curity. The more successful a person is the more force our feelings of failure, and our reactions is about how you react and handle feedback follow that such feedback was falling on deaf ears in some power they have. to this are rarely positive. which matters. situations. There appears to be evidence on the ground Combine that power with the predictable more than anything, negative feedback n Chitagu is the current IPMZ presi- that feedback needs to be taken seriously. One issue which “kill the messenger” response to negative feed- shuts us down. We need honest, constructive, dent and he writes in his own capacity. appear to suggest that feedback is not being taken heed of is what we all see around us. If we look at some of the infrastructure, it is a reflection that someone might have pointed out something to someone who did not listen. When feedback is proffered, there is need to listen. In any work arrangement, it is critical to listen. It is from listening that people can move from good to better. Our roads, in most parts of the country are in bad shape and this can be a typical reflection that someone might not have taken heed of the feedback, which was proffered otherwise, we could not be in the situation we are in today. There are dongas almost everywhere. The question is, is it necessary to take heed of feedback? Certainly, feedback makes you better in your performance. It helps you to correct mistakes and on time. Mistakes which are not corrected on time become challenges. At the stage of challenges, mistakes become dongas. No wonder why garages are full of cars which require suspension attention. This also justifies why people buy tyres every time. With feedback processes can improve. There are many more other areas which can be testi- mony of someone who did not pay heed to the proffered feedback and it justifies why the situation is what it is today. When I went through Executive Coaching Certifica- tion and Team Coaching Certification by Marshall Gold- smith, one key aspect he talked about feedback is that it should make people better, organisations grow, and the environment becomes better. It is clear that if we ignore feedback, we will go astray. I want to quickly look at examples of feedback: 1. Negative feedback – directs comments about past attitude or performance. It is like carrying out a post-mor- tem. Looking into rear view mirror is good but it does not add lots of value. it 2. Positive feedback – builds the individual, motivates and empowers the individual. 3. Negative feed-forward – directs comments about future performance of the individual. 4. Positive feed-forward – talks about expected future attitude of an individual. This is about moving forward according to Exodus 14 vs 15. During the certification process, Goldsmith used to say and I quote, “My mission is simple. I want to help successful people achieve positive, lasting change in behav- ior; for themselves, their people, and their teams. I want to help you make your life a little better. Life is good”. One question he also used to ask is, “how can I help you do better?” This means that the choice is yours. As we look at feedback, which is intended to address past performance issues, it is clear that negative feedback is inconsistent with our self-image and so we reject it especially if it is proffered well out of time. It is like crying over spilt milk. You cannot change past result or performance, but you can only use past knowledge or assessment to influence the future. Giving feedback is not a cookie-cutter approach though. You need to be disciplined and tactful about it. Proffering effective feedback is just what it says. It is when we solicit opinions from people about what we are doing wrong. At times we want to tell people what they are doing well but not what they are doing wrong. Giving feedback is not as simple as the word sounds. Based on my experience, most people have two problems dealing with negative feedback. This may not sound like many, but they are big problems, and most leaders experience such challenges. Why do leaders experience challenges in proffering feedback? a Firstly, they do not want to hear it and the second is they do not want to give it. The reason they do not want to hear it is because negative feedback is inconsistent with our self-image and so we reject it. We even become angry when we get such feedback. Did you know that most people who get feedback think that they are right? Instead of acknowledging the feedback, they pass the blame to other people. The most difficult thing is to provide feedback to peo- Page 20 | March 04-10 2021 The Financial Gazette Motoring Honda WR-V Comfort A nice car looking for a nicer engine

TOP GEAR with Richard Wiley

T SEEMS a tad ironic that my head- line should refer to an indifferent Ipropulsion unit in a vehicle carrying a Honda badge. After all, this is a company that established a reputation for making some of the best — and most astonishing — fossil-fuelled engines in the business. The irascible Fernando Alonso might not agree though! I raise this issue in light of my recent week-long association with the Japanese company’s latest compact crossover, the WR-V. It just happened that this otherwise virtuous people carrier had more work to do than most of my press cars of late and that meant a fair bit of motorway driving and even more ascents of the hills that surround my abode. Under the stubby bonnet of the Jazz-derived WR-V sits a familiar 1.2 litre injected four that spins smoothly enough, starts promptly and idles like a sewing machine but it’s short of that Steep windscreen rake and swept back headlamps enhance sporty look. essential commodity called torque. Call up the stats and you’ll discover a power peak of 66kW that’s aided and abetted – or rather, should be – by a peak torque output of just 110Nm. Any car buff knows that fi gures on their own tell much less than half the story. The secret lies in how many thousands of revolutions the engine must partake in to generate those fi gures, and when I tell you that the power peak ar- rives at a dizzy 6 000 rpm and the best of the torque output is only accessible at 4 800 rpm, you can surely see a tracta- bility problem on the horizon. After all, a price competitive competitor using a 1.0 litre turbo 4 provides 200 Nm from a mere 2 000 rpm! So, it was unlucky for the WR-V that my usage pattern revealed this lack of low-speed urge to worst advantage. Cruising on the motorway at a constant speed was fi ne if aurally a tad busy owing to the hectic rev rate, but regaining lost momentum required downshifts, lots of throttle and lots of patience. Likewise turning at right angles into rising terrain demanded multiple down- ward shifts and lots of revolutions to overcome the inertia-sapping effects of Distinctive tail lamp design and deep side crease are standout features. the gradient. Happily, the quality of the gearshift made all the cog-swopping more of an sistance systems, are perfectly weighted silvered ‘skid plates’ and roof rails and And even allowing for the relatively handles, driver’s seat height adjustment, annoyance than a hardship but bear in and seem more than capable of contain- body colour mirror housings and door low price of the WR-V, the low grade keyless entry, vanity mirrors in both sun mind I was travelling light]y laden and ing momentum despite the use of what handles complete the smart external of carpeting is a worry as is the un- visors, rear parking sensors, alarm and a at sea level. The thin air of the Reef is look to be alarmingly small rear drums. detailing. Don’t look too closely inside trimmed area around the inner tailgate, retractable seat belt for the middle pas- not going to help matters so I’m sug- As for ride, the use of ‘old-fash- the wheel arches though as you’ll fi nd not to mention the horribly cheap look- senger in the rear. gesting here and now that the WR-V ioned’ 195/60R16 rubber doubtless a complete absence of plastic liners in ing strings that hold up the luggage area Most importantly, no fewer than SIX should be regarded as an urban hopper helps endow the WR-V with an unusual the rear and miniscule liners up front. cover. airbags are hidden away in the depths of and not an open road, hill-gobbling level of ride comfort that’s not sullied By contrast, the black/polished alloy By contrast, the well-bolstered seats the cabin and these are complemented people carrier. I’m also suggesting that too much by excessive body roll. wheels look really smart! feature very smartly tailored, coarse by ISOFIX mountings in the rear and most of the lethargy could be banished In fact, the chassis imparts the feel Open a door and you will be greeted weave fabric that not only looks good by seat belt pre-tensioners. if the manufacturer used their own 1.5 of a bigger, heavier car and also offers by an amazingly spacious cabin. The but is nice to occupy as well. In terms of entertainment, Comfort engine which surely cannot add greatly excellent straight-line stability and rea- steeply raked windscreen for sure adds As with virtually every competitor is equipped with a simple 5-inch LCD to production costs. sonably determined resistance to being to the airy feel but it’s the relatively long in this class, hard plastics abound inside audio unit, but it does come with Blue- For unknown reasons, Honda SA defl ected by heavy winds. It’s just a pity wheelbase that liberates astonishing but Honda has done a really good job tooth, hands-free telephony, four speak- does not provide performance fi g- the chassis composure isn’t matched by room for rear seat occupants. in disguising the hardness through em- ers and USB connectivity. Elegance ures for the WR-V but it does claim a a less frantic engine. And that rear space is not achieved ploying grained matt surfacing which has a fancier 7-inch touchscreen unit combined fuel consumption fi gure of A tad unusually, I’ve opened the bat- by truncating the luggage area. In fact, is offset with bits of silvered or shiny that works Apple CarPlay and Android 6.4L/100km. I couldn’t achieve this ting here with a rather long expose on the fully carpeted boot is deep and well- black trim. Auto. in a week’s mixed running, recording the WR-V’s powerplant, so let me get shaped despite hiding a full-sized steel The result is a cabin that’s endowed So, I really don’t think I have to add a mildly disappointing 8.0L/100km back on the rails by telling you that two spare wheel and offers no less than 363 with a pleasant ambience. much more other than to say that the which is indicative of the need to use versions of the 4-metre/1100kg cross- litres to swallow madame’s luggage. The deeply recessed triple instru- Honda WR-V is a thoroughly practical, plenty of throttle to gain and maintain over – Comfort and Elegance - are of- That extends very simply to 881 ment binnacle is beginning to look a immensely spacious compact crossover momentum. fered in RSA. The former was assigned litres with the 60:40 seats folded but little quaint but clear graphics and an in- that’s looking for a more convincing I’ve already alluded to the presence to me in a most attractive silver hue, one Honda’s Magic Seat confi guration of- formative digital read out, comfortably engine to enable it to show off its vir- of a beautifully slick gearshift which of just four colour options on offer. fers multiple alternative seating posi- visible through the height adjustable tues without unduly frustrating the driv- works in tandem with a deliciously That silver paint sported a decent tions to maximise cargo and passenger polywrap steering wheel, do a good job er. Perhaps those living in Holland will smooth lightweight clutch. The steer- gloss, and the generally smart appear- capacity. of conveying information to the driver. get along with the WR-V just fi ne but ing doesn’t let the side down either as ance is enhanced by respectable panel Truly, the WR-V is wonderfully ver- The air con is also easy to set up and for those of us who live where gradients it’s endowed with a pleasant, fl uid feel gaps and by details such as black wheel satile but given it can carry so much so works effi ciently while other niceties in- and/or thin air are a part of the daily rit- that extends from lock to lock, while arch cladding that happens to extend easily, that engine torque defi cit is all clude electric windows all round, loads ual, that lack of muscle verges on being the brakes, aided by a full array of as- right around the vehicle. Contrasting the more galling. of bottle/cup holders, four damped grab a deal killer. The Financial Gazette March 04-10 2021 | Page 21 National News Govt mobilises implements for bumper harvest Farai Mabeza “Regarding the supply of com- able through the Land Bank Special of the equipment. Staff Writer bine harvesters for the efficient and Purpose Vehicle, Agriculture and Agribank is leasing some of the timeous harvesting of grain, an ad- Rural Development Authority and machinery through its agriculture HE government plans to mo- ditional 72 and 21 combine harvest- Grain Marketing Board on a cost equipment leasing vehicle, which bilise an additional 93 com- ers from the John Deere Facility and recovery basis, will be produced by is providing farmers with mechani- Tbine harvesters and to import the Belarus Programme will be mo- the local industry for use in harvest- sation service, especially combine US$17 million worth of grain dryers bilised, respectively,” Mutsvangwa ing 200 000 hectares for the 120-day harvesters. in response to the harvesting de- said. harvesting period,” she said. Farmers are required to pay off mands of the current farming season. “…In the same vein, (govern- Government last year launched a their debts over three years. The deal Information minister, Monica ment) is importing an additional 13 US$51 million John Deere Mecha- with the global tractor manufacturer Mutsvangwa told a post cabinet mobile grain dryers from Italy, to the nisation facility which it said would was entered into in November 2018. press briefing this week that while tune of US$1,3 million each, with a unlock 1 300 tractors, 80 combine The government also entered into the country was awaiting the results capacity of 28 metric tonnes per shift harvesters, 600 planters, 200 disc a US$51 million mechanisation fa- of the first round of the crops and and up to 140 metric tonnes per day.” harrows, 100 boom sprayers and 100 cility with Belarus under which 474 livestock assessment later in March, According to Mutsvangwa, Zim- trailers, to boost productivity. tractors, 210 planters, 60 combine 2021, the government would, for babwe is also mobilising internal Farmers have taken up 54 of the harvesters and five lowbed trucks planning purposes, use estimated capacity for combine harvesting 60 tractors availed so far. were to be sourced. national production figures of 2,5 to through the repair of 25 non-func- The scheme is being steered Last year, the government said 2,8 million metric tonnes for maize tional combines which are owned by by CBZ Bank and Stanbic Bank Zimbabwe required 40 000 tractors and 360 000 metric tonnes for tradi- institutions and individuals. through a hire purchase facility, with and 600 combine harvesters with as- tional grains, which represents sig- “Furthermore, a total of 200 farmers required to pay a 15 percent sociated matching implements. nificant increases from last year. shellers, which will be made avail- Monica Mutsvangwa cash deposit before taking delivery [email protected] Kazakhstan investor loses platinum mining claims in Zim Freedom Mashava Staff Writer

ONTROVERSIAL investor Eurasian Resources Group (ERG) has lost its platinum mining claims in CZimbabwe, after failing to develop them for the past 11 years, The Financial Gazette can reveal. Senior government officials said the Kazakhstan-based mining firm recently sent two emissaries to try and renegoti- ate a new deal after the government repossessed the platinum claims at Bokai under the use-it or lose-it policy. The government recently indicated that it was in the process of repossessing at least 213 mining concessions that are lying idle. ERG bought some platinum concessions in 2009 from a United Kingdom company with links to Billy Rautenbach, CAMEC, but the project was never developed following resistance from certain quarters in government who opposed the deal. In 2018, following the ouster of former president Robert Mugabe, the company made an offer to increase its mining portfolio by investing in chrome and ferrochrome, but the deals also fell through. “Two ERG officials — Akramjan Marazykov and Ra- khmatzhan Khamutbaev — were in Zimbabwe to discuss terms of their concession, but they were kicked out because they honestly didn’t have a case to defend their lack of development at Bokai,” said another source. The East-European miner is not new to controversy as it was in February red flagged in the Democratic Republic of Congo (DRC) over a US$40 million mining scandal. In 2013, the company, then known as Eurasian Natural Resources Cor- poration, was delisted from the London Stock Exchange when its shares tumbled significantly following a series of scandals, including allegations of fraud, bribery and corruption relating to the company’s activities in Kazakhstan and Africa. Mining industry experts said the government should be wary of bogus investors such as ERG who hold concessions for speculative purposes while depriving genuine investors. Zimbabwe has the world’s third largest platinum group metal reserves, but investment has been largely hampered by corruption, unfavourable mining laws and currency policies. Although ERG claims to have turned the corner and cleaned its act, and recently identified Africa as key in its long- term international growth strategy, the latest scandals in DRC and Zimbabwe make it hard for stakeholders to believe that it has departed from its previous scandal-ridden status. Reports from DRC show that ERG was involved in a transfer of lucrative cobalt and copper assets deal that enabled a little-known investor to make US$40 million within weeks. Congo dominates global production of cobalt, a key ingredient in the rechargeable batteries that power electric vehicles. Luxembourg-registered ERG owns one of the largest copper-cobalt projects in DRC, which is at the forefront of the company’s efforts to position itself as a major player in the rev- olution toward more environmentally friendly transportation. But it is the latest transaction and almost immediate resale of control of the assets to ERG that has made the company come under scrutiny from anti-graft campaigners. Alleged corruption in mining transactions in DRC has led to financial sanctions and multiple ongoing investigations by law-enforce- ment agencies around the world. [email protected] Page 22 | March 04-10 2021 The Financial Gazette

ZSE moves to widen product portfolio offering HE Zimbabwe Stock Exchange (ZSE) during the for shareholders, grow market share or achieve certain anticipates new listings in 2020 and the introduction course of 2020 to 2021 year to date has witnessed vari- strategic objectives. of new products like Real Estate Investment Trust Tous transactions ranging from mergers, delistings, sus- NG: The market witnessed fi ve de-listings last (REITs). pensions and new product development. The bulk of the new year including Falgold, PGI and Powerspeed, NG: There is a constituency of analysts who be- products were initiated in 2019 under a fi ve-year strategy run- among others. What does this mean when there lieve that the prospective delisting of SeedCo from ning until 2024. As part of the ZSE’s strategy, it established has been limited activity on new listings? the ZSE will prejudice local investors? the Victoria Falls Stock Exchange (VFEX), with an objective JB: Four companies delisted in 2020, which are JB: Opinions will always differ with some ana- to attract foreign investment and help companies raise foreign Falcon Gold, Seed Co International, Powerspeed and lysts seeing the value in the merger. What is more im- currency. In order to understand more on the achievements Zimre Property Investments (ZPI). Falcon Gold had portant is that adherence to the Companies and Other and other things, Nelson Gahadza, (NG), our business report- been under suspension since February 2019. Seed CO Business Entities Act and the ZSE Listings require- er, spoke to Justin Bgoni (JB), pictured, the ZSE chief execu- International migrated to the VFEX and remained a ments are observed. Both regulations have provisions tive. Below are the excerpts of the interview: listed company on the ZSE subsidiary exchange. ZPI to protect shareholder interests but do not also seek to NG: HOW far have you progressed under the ZSE fi ve-year was merged into Zimre Holdings so it was not a total hinder transparent and sound commercial transactions strategy running till 2024, which targets mainly expansion of loss but became part of a bigger listed entity. Power- by the companies. the product portfolio? speed had their reasons for delisting and it is expected nual infl ation at 348 percent and the gain of the USD NG: Is it true that local investors have limit- JB: We have made great strides in diversifying the exchange that over time some issuers make the decision to delist. against the ZWL at 388 percent. The exchange was ed access to securities on the Victoria Falls Stock as espoused in our fi ve year strategy. To date we have managed Naturally the number of listings effectively declined therefore the best preserver of value both against in- Exchange? if so, are you pursuing any solutions to to introduce a number of new products and initiatives aimed at but the ZSE anticipates new listings in 2021 and the fl ation and exchange rate losses. The challenge facing such bias? widening product offering. These are the launching of the ZSE introduction of new products like REITs may lead to foreign investors on ZSE is the ability to repatriate pro- JB: The Victoria Falls Exchange is open to both Training Institute, launch of the Zimbabwe Receivables Market- some of the new listings on the ZSE. ceeds when they sell their shares. This challenge has local and foreign investors. Institutions that include place, an invoice discounting joint venture with Harare Receiv- NG: What do you think has been a barrier to however been reduced through the interbank auction Insurance companies and pension funds are now per- ables Exchange and the launch the Victoria Falls Stock Exchange attracting new listings on the ZSE? which has seen some allocation towards capital and mitted to trade in the US Dollar, and there is now a ("VFEX"), an exchange that enables USD trading and capital rais- JB: The challenges in bringing new listings arise dividend repatriation. signifi cant number of companies also paying their em- ing. We also unveiled the ZSE Direct, an online trading platform, from the challenging economic environment that has NG: What are some of the outstanding issues ployees in foreign currency, and the VFEX can be a and listed the fi rst Exchange Traded Fund in the country, the Old seen more of informal entities being set up compared regarding the readmission to trading in CFI Hold- home to invest for the local investors. Mutual ZSE Top 10 ETF. to formal businesses. However, as the ZSE we contin- ings shares? NG: Is there a risk that there will be more mi- NG: After the failed bid to acquire Chengetedzai Depos- ue to lobby for incentives to attract more listings and JB: CFI was suspended for failing to comply with grations from the ZSE to VFEX? and as the ad- itory Company, has the ZSE opted to set up its own central to educate the market on the process of listing through the ZSE Listing requirements and the ZSE has been ministrators of both exchanges, do you view such securities depository? training. engaging all major parties in CFI to regularise the out- movements as a good thing or a bad thing? JB: The ZSE has not set up its own depository but its subsidi- NG: For the large part of the year, (2020), for- standing issues. JB: VFEX is coming in to complement ZSE, and ary, the VFEX, operates its own depository. eign investors remained largely net sellers. Does it NG: What is your general outlook for the Cap- the addition of VFEX actually benefi ts both Investors NG: During last year, there were several corporate acqui- imply the local bourse is losing its ability to store ital markets in 2021? and Issuers. sitions, divestment and restructuring on the ZSE. What could value and where investors can hedge against infl a- JB: The ZSE anticipates investors to continue Statutory Instrument 196 of 2020, permits res- have triggered such transactions? tionary pressures? fl ocking to infl ation hedging instruments like equities ident Zimbabwean companies listed on the ZSE JB: One of the roles of the exchange is to facilitate corporate JB: During 2020, the value of foreign buys was and Exchange Traded Funds (ETFs), and we antici- to list up to 20 percent of their capital on VFEX. restructuring but the decisions on when and how to restructure are $1,240,127,515 against the value of foreign sells pate a signifi cant growth in retail participation on the These measures were put in place to enable even made by individual companies through their directors and share- which stood at $6,663,044,155. The ZSE All Share bourse. All things being equal, this should result in ZSE listed companies to be able to raise money in holders. The obvious reasons are normally to create more value Index grew by 1046 percent in 2020, ahead of the an- sustained demand for listed securities. The ZSE also foreign currency for their projects. Zinara has turned a new leaf …corruption now a legacy issue he Grant Thornton Forensic Audit com- Loss Control. The new structure consolidated all missioned by the Ministry of Transport and Revenue streams under the revenue operations Infrastructural Development in 2016 high- department headed by a Director Revenue Op- Tlighted several corporate governance deficiencies erations (pending ministerial approval) for greater at the Zimbabwe National Road Administration in efficiency in collections. The structure created the view of its legislative mandate. The malpractices Procurement Management Unit (PMU) as required included overstepping of Zinara’s mandate by the by statute and the Risk and Loss Control Depart- then executive, awarding of unapproved allow- ment to bring greater assurance in ZINARA’s op- ances and improper recruitment of staff among erations as a road fund. Zinara chief executive of- other things. After the audit, Grant Thornton made ficer Mr Nkosinathi Ncube said the new structure key recommendations for implementation to align recommended by Proserve Human Resources Zinara to its legislative mandate and the public Consultants was in line with best practices and has been following with keen interest to see if the reflected the current organisational size of Zinara. recommendations are being applied. Indeed, the “We are a results-oriented team and the current recommendations of the forensic audit were im- structure we have is lean, but its scope of work is plemented, and a few outstanding issues are at broad,” said Mr Ncube. advanced stages of implementation. “With only three directors and 10 managers Corruption we are superintending a total head count of close To start with, corruption which was cited as to a thousand employees and several revenue endemic at Zinara is now a legacy issue and find- streams across the entire country. As an organisa- ings of the audit report which are of a criminal nation and a new team, we believe in results-based ture were referred to the Zimbabwe Anti-Corrup- management to fully realise our mandate as a tion Commission and prosecutions are at various road fund administrator.” levels. RTGS resulting in a prejudice of over USD$ 48 thus became obsolete. Administration costs to revenue ratio The new board of directors at Zinara has halt- 000 and the 4 employees are currently out on bail Proserve Human Resources Consultants was The current Administration Costs to Revenue ed the implementation of road projects and re- with 3 having resigned to avoid internal discipli- engaged by Zinara in 2020 to develop a function- ratio of 2,5 percent was gazetted at a time Zina- stricted the institution to its legislative role of fixing nary hearings. Apparently, the same staff in the al organisational structure that is efficient and ef- ra’s headcount was less than 50, with collections road user charges, collecting and disbursing road cash office had resisted to be transferred citing fective in line with ZINARA’s legislative mandate, being done by ZIMRA on behalf of Zinara and with funds to the road authorities. Further, Zinara now alleged victimisation. coming up with an appropriate job grading struc- National Limpopo Bridge being a standalone en- have a new executive with the new CEO having Organogram ture supported by a professional salary structure tity. With Zinara now in charge of collections and been recruited in September 2020. The new ex- One of the most reported legacy issues is that following job evaluation, develop a supporting with the opening of five additional new tollgates ecutive has sought to address the Grant Thorn- Zinara had a top-heavy management chewing Human Resources policy document and Employ- and the handover of New Limpopo Bridge at ton Forensic Audit issues to avoid recurrence and bulk of the collections by the Road Fund Adminis- ment Code of Conduct reflecting standard best the end of the concessionary period, headcount has since established a Loss Control division and trator. It is pleasing to note that the institution now practices. The structure so adopted reflected re- has since increased from 50 to 670. It is against a Procurement Management Unit to bring more has a lean top organogram with only three Direc- gional road funds and international benchmarks this background that the December 2020 Annual accountability. tors and 10 Managers. This small team of Execu- in enabling Zinara to fully implement its legislative General Meeting recommended that the Admin- Systems improvements and audit spot tives and management oversees a headcount of mandate. It is an internationally recognized best istration costs to revenue ratio be amended to 10 checks have also been intensified at tolling and 670 employees and five revenue streams which practice principle that an organisation structure is percent and moves are afoot to amend the appli- vehicle licensing centres and this has culminated includes Tolling, Vehicle Licensing, Abnormal a statement of strategic intent and exists to sup- cable statute. It should be noted that the Corpo- in greater assurance and transparency in trans- load fees, Overload Fees and Transit fees spread port the business strategy. In pursuing these stra- rate Governance Act pegs the ratio of expenses action handling. After getting into office, the new across Head Office, 22 tolling points, 12 Provincial tegic imperatives and as derived from its mandate, to revenue at 30 percent hence the need for an executive instituted disciplinary and court actions Vehicle Licensing Offices and National Limpopo Zinara identified the following as the key business alignment of the statutes. Notwithstanding, Zinara against corrupt activities. To date, Zinara has Bridge Offices in Beitbridge. The team is also processes: Technical Services, Tolling Operations has done its best to operate efficiently with the dismissed 17 employees on corruption related in charge of a subsidiary called Infralink which and Vehicle Licensing Services. The undertaking Administration Costs to Revenue ratio hovering charges, 12 employees resigned voluntarily and is an investment vehicle between Zinara and In- of these Key Business Processes is supported by slightly above the 2,5 percent to 3 and 4 percent four have been separately convicted. tertoll for the management of tollgates along the the following support services: Finance, Human on average. It is prudent to note that payroll costs In December 2020, the Zinara executive un- Plumtree-Mutare Highway. That subsidiary has a Resources and Administration, ICT, Internal Audit, only account for a small percentage of the Admin- earthed a fuel levies scam where some staff in staff compliment of 303 employees. The old Zina- Corporate Secretarial and legal services, Procure- istration Costs which also includes system vendor the Cash Office substituted USD collections with ra organogram was last reviewed in 2013 and had ment, Public Relations and Marketing, Risk and commissions. The Financial Gazette March 04-10 2021 | Page 23 National News

Zimbabwe is expecting between 2,5 and 2,8 million metric tonnes of maize. Maize, tobacco to put pressure on Zim fiscus Farai Mabeza mestic currency banking deposits! …. Staff Writer which account will GMb and RbZ debit to credit ZwL$60 billion to farm- iMbabwe is expecting record ers when bank RTGS balances are only maize production of between 2,5 ZwL$14 billion and government RTGS Zand 2,8 million metric tonnes and balances at RbZ are ZwL$13,6 billion?” 360 000 metric tonnes of traditional Muchemwa quizzed. grains, but the bumper harvest might put “its clear GMb and RbZ have no ca- pressure on authorities pressed to keep pacity to pay maize and tobacco farmers government spending in check to main- in ZWL$ without triggering inflation. tain economic stability. Government has only ZwL$13,6 billion Deliveries to the Grain Marketing in reserves…. Yet….we need to reward board (GMb) are expected to receive the farmers for the hard work, pay them two million metric tonnes of cereals (1,8 good prices so they come back stronger million metric tonnes of maize and 200 next season”. 000 metric tonnes of traditional grains) Confederation of Zimbabwe indus- while tobacco is expected to be at around tries’ banking and economics standing 200 million kg. committee chairperson, Jimmy Psillos The country’s latest monetary policy expressed concern that such develop- statement which was released last month ments could trigger inflation. says to meet targeted annual inflation of “For every one percent increase in re- below 10 percent and economic growth serve money we tend to get a 1.66 percent of 7,4 percent this year, the government increase in the exchange rate,” Psillos must reduce its quarterly reserve money said. growth rate to 22,5 percent from 25 per- Meanwhile, the government, in the cent. post cabinet press briefing announced but it remains unclear how the gov- that modalities for grain mobilisation, ernment will purchase the crop without purchase, storage and infrastructure up- upsetting monetary supply. grading were already at an advanced “This year people have produced quite stage, with 665 Cotton Company of Zim- a lot of maize, if it turns out to be what babwe (Cottco) collection and buying we are expecting; 1,8 million tonnes points being earmarked for use by the bought by the government and through GMb as additional collection points. other structures, to ensure that money cir- The country’s harvests have long culates in the economy, through millers faced challenges with post-harvest grain and others, comes to ZwL$64 billion. a losses due to poor crop handling practices 25 percent increase (in reserve money) is by farmers and lack of adequate storage about ZwL$40 billon which is less than facilities by both producers and the Grain the value of the maize to be purchased,” Marketing board. Reserve bank of Zimbabwe (RbZ) gov- GMb has 12 silo complexes which ernor, John Mangudya said in a recent have a capacity of 750 000 tonnes but webinar organized by the Daily News. only five are operational. Commenting on the development According to research findings by the economist brains Muchemwa, said the University of Zimbabwe Department of government would need to devise non-in- Soil Science and agricultural engineer- flationary ways to protect both the farming, Zimbabwe has an average maize ers and economy. post-harvest loss of about 18,5 percent. “bumper harvest should not bump The post-harvest losses are mainly inflation upwards. GMB has no option due to destruction during storage by in- to delay payments as before, hoping in- sects and pests. These losses translate flation will wash away their real obliga- into millions of dollars’ worth of grain tions,” Muchemwa said. imports. “…Government, through banks, fi- The Food agriculture Organisation nanced this crop. agriculture loans are (FaO) estimates yearly global quantita- at ZwL$28 billion. … GMb will need tive food losses in sub-Saharan africa at about ZwL$40 billion to buy maize. roughly 20 percent for cereals, 40-50 per- That’s 47 percent of total RTGS deposits cent for root crops, fruits and vegetables, in the market! That’s not small money for 27 percent for oilseeds, meat and milk, this economy.” and 33 percent for fish. Tobacco farmers on the other hand “in terms of payment to farmers, are paid in US$ but a significant chunk which has all along been based on a cen- of those proceeds is surrendered to the tralised system, the GMb is working on government under an unpopular forex a decentralised payment system to be ad- retention scheme in exchange for the lo- ministered at the depots in order to guar- cal currency. This is expected to come to antee the timeous payment of farmers for ZwL$20 billion. delivered grain,” information minister, “Maize and tobacco will see about Monica Mutsvangwa told journalists af- ZwL$60 billion being required to pay ter this week’s cabinet meeting. farmers. That’s about 71 percent of do- [email protected] Page 24 | March 04-10 2021 The Financial Gazette National News Government piles up debt guarantees

Nelson Gahadza maize farmer owes to CBZ Agro-Yield”. This too ex- Staff Writer pired on December 31, 2020. In addition, the minister said the government issued a HE Government has disclosed guaran- guarantee on bonds issued by the Infrastructural Devel- tees it issued on debt instruments fl oated opment Bank of Zimbabwe amounting to $300 million, Tby various institutions in 2020 amount- which will be valid until June 30, 2024. ing to more than $950 million. This comes as market watchers have called on the In an extraordinary government gazette, Fi- government to openly disclose its handling of public fi - nance minister Mthuli Ncube said the govern- nances in line with the constitution, to improve transpar- ment bound itself “as surety for the repayment ency and rally wanning investor sentiment. by Agricultural Bank of Zimbabwe and FBC Treasury recently published a schedule of loans Bank of the value subscribed through Agro contracted by the Reserve Bank of Zimbabwe (RBZ) bills up to a total amount of $300 million”. from the African Import-Export Bank (Afreximbank) “… in addition to accrued interest, on the amounting to US$ 1,5 billion, giving a glimpse into the Agro bills… in the event that the banks default government’s highly opaque dealings with fi nanciers. on their contractual obligations,” the minister The publication was made after Harare legislator, said, adding that the guarantee expired on De- Norman Markham dragged Ncube and the RBZ to the cember 31, 2020. High Court demanding that the details of the transactions He said the government also guaranteed Gorden Moyo Norman Markham which were made without the approval of parliament in bills issued by Silo Food Industries in 2020 contravention of the constitution, be made public. for a period of twelve months from the effec- The government also guaranteed, 50 per- worth $350 million, which “shall remain valid cent of the “indebtness which the 2020 winter Gorden Moyo, an economist who previously served tive date” of the instruments. as minister of state enterprises said the government’s lack of accountability was escalating the country’s debt problem. “Even if we are told the borrowed money is for productive purposes, it would end up being used for consumptive purposes,” Moyo said. “It’s quite sad that we are being told about this money now but we do not know where it went. With that amount of money, we should be seeing real changes in the country. That is the same money we owe to the World Bank and yet we have borrowed the same amount within two years. This is irresponsible borrowing and it is also irresponsible on the part of Afreximbank to lend us such an amount of money within such a short period of time”. Zimbabwe has over the past years relied on murky funding arrangements mostly from the Afreximbank and the Chinese government after it was shut out by traditional fi nanciers such as the World Bank, Africa Devel- opment Bank (AfDB) and the International Monetary Fund (IMF) for failing to pay back previous loans. Until the recent disclosure, the government had remained tight-lipped about its funding arrangements with suggestions that it was mortgaging future mineral earnings to secure the lines of credit. The country is actively pursuing debt relief to repay the AfDB (US$600 million) and World Bank (US$1,4 billion). But last year Ncube told legislators that plans to clear arrears with the international lenders had hit a snag after an unnamed fi nancier dumped the country halfway through negotiations for a funding deal. According to the details of the Afreximbank loans the RBZ borrowed US$600 million in 2017 which was intended for the procurement of strategic commodities. The lender then extended a further US$500 million which was supposed to support currency reforms in 2019 when authorities reintroduced the domestic unit. In December of that same year the RBZ received another US$300 million from the bank also for the procurement of strategic commodities. The loans schedule also showed that the interest rates and fees charged by the Afreximbank exceed the average London Interbank Offered Rate-- an international bench mark in global fi nance. The IMF together with analysts have in the past warned against the central bank’s continued use of off budget accounts to conduct quasi-fi scal activities on behalf of the state. In 2015 the government was forced to assume more than US$1 billion in debt which was contracted by the central bank. A local debt watchdog, the Zimbabwe Coalition on Debt and Development (ZIMCODD) maintains that the government needs a debt resolution strategy informed by a comprehensive debt audit. “There is need for the government to ensure that all debt relief agreements and new loan arrangements are formulated in a transparent way, with relevant information made available in a timely manner, and with the knowledge of the public and with legislative frame- works and institutional arrangements and mechanisms for consultation and accountability being established,” ZIMCODD said. “Furthermore, Zimbabwe’s debt question calls for a comprehensive debt sustainability plan to improve the country’s credit rating. The plan must be premised on constitutionalism, a strong and functional independent debt management offi ce, and transparent, accountable and inclusive loan contraction”. Offi cial government estimates put the country’s total external debt at US$8,2 billion, as at end September 2020. This is an increase by US$106 million from the end of 2019 amount of US$8,09 billion and was mainly on account of penalties and interest arrears. Of the total external debt, 17 percent is owed by public entities through guarantees. Arrears remain a major component of the external debt, at US$6,34 billion, constituting 77 percent of the external debt. newsdesk@fi ngaz.co.zw The Financial Gazette March 04-10 2021 | Page 25 National News Govt avails $480mln for road rehab

Nelson Gahadza The rehabilitation Staff Writer programme is targeting regional trunk roads HE government has released $480 million to- linking Zimbabwe with wards the emergency road rehabilitation pro- neighbouring coun- Tgramme following massive damage to infrastruc- tries, major highways ture across the country due to the ongoing heavy rains. connecting the main This comes as the government has also authorised cities, major arteries in the Zimbabwe National Road Administration (Zinara) urban local authorities, to source funding on the market in advance for road rural access roads, and rehabilitation in lieu of the revenues that are yet to be bridges weakened or allocated by Treasury. destroyed by flooding. Zimbabwe has a total road network of 98 049 km, distributed among four categories of Road Authorities, namely, the Department of Roads, the District Develop- ment Fund, Urban Local Authorities and Rural District Authorities, Information, minister Monica Mutsvagwa, told reporters after cabinet that the government will lead the processes on the identification and prioritisation of road infrastructure in need of rehabilitation. “Other activities include the identification of scope of works, outlining of key activities and deliverables, development programme of works, bills of quantities and cash-flow plans, equipment mobilization and procurement of labour and materials, and project management, supervision and certification of completed works,” she said. Mutsvangwa said the rehabilitation programme is targeting road categories such as regional trunk roads linking Zimbabwe with neighbouring countries, major highways connecting the main cities, major arteries in urban local authorities, rural access roads, and bridges and other drainage structures weakened or destroyed by flooding. Government has committed to a budget of US$400 million for the emergency road rehabilitation programme. Mutsvangwa said local communities would be engaged under the Labour-Based Arrangement where casual work shall be parcelled out on their respective stretches along the roads. “Local farmers will also be contracted to assist with verge clearing along major roads adjacent to their farms,” she said. She added that the RDCs will be required, as part of capacity building, to run staff training programmes for machinery operators in their respective areas of ju- risdiction. She noted that a programme to re-gravel rural roads, especially in areas with sandy soils, such as Nkayi Dis- trict in Matabeleland North Province will be undertaken in order to ensure a reliable network of feeder roads which support socio-economic development. Zimbabwe’s road network has suffered over a decade of neglect due to economic problems. The road and rail network used to be considered among the best in Africa. Under the National Development Strategy 1 (NDS1), the government committed to infrastructure development, supported by the private sector. Meanwhile the Infrastructure Development Bank of Zimbabwe (IDBZ), working with the Treasury, is developing a US$250 million bond to finance works for an upgrade of the Harare-Masvingo-Beitbridge highway. To date, the first 150 kilometres of the 584km long road has been upgraded. Tedious Chinyanga, the permanent secretary in the Ministry of Transport and Infrastructural Development, said funds raised from the bond will finance the rehabilitation and new construction of a flyover that will replace the Mbudzi roundabout. “A figure of US$250 million has been used for the road project including toll plazas,” Chinyanga said during a virtual meeting with Parliament’s portfolio committee on Transport. Chinyanga said the bond will unlock value for the Harare-Masvingo-Beitbridge highway, where rehabilitation and widening has already started using local financing and contractors. “Government intends to upgrade tollgates to make them more efficient and close those whose revenue collection levels are not commensurate with the costs associated with running them,” he said. The total project cost is estimated at US$650 million and government projects completion of the project by 2022 if contracted companies complete 200 km every year. The modernisation of the highway has been included in the Comesa-EAC-SADC Tripartite and the African Union Programme for Regional Corridor Development. Five local companies are constructing the road which stretches further to Chirundu and will help link Zim- babwe and South Africa with the rest of the continent. The companies are Bitumen World, Fossil Contract- ing, Masimba Construction, Exodus and Company and Tensor Systems. In July, the Government allocated the five companies 20km each which have now been successfully completed. [email protected]

The Financial Gazette March 04-10 2021 | Page 26 news Why Zim, Rwanda could offer ripe opportunities wanda and Zimbabwe are ripe for sive through strategic investors,” he said. gold, diamond and platinum producers, as well — it’s now open to everyone. Middle Eastern investment as the african The UaE is the second-largest investing coun- as home to vast reserves of tantalum and lithium. "now is the time for serious foreign investment to target Rcountries continue to press ahead with try in africa, second only to China, according to “Unlike other parts of africa, where lots of the the country and take advantage,” he added. transparency drives. the Financial Times’ FdI Intelligence. abu dhabi mining activities involve deep drilling or the re- Zimbabwe president Emmerson Mnangagwa unveiled a That’s according to Marc Holtzman, chair- Fund for development (adFd) has funded more sources are hard to access, in Zimbabwe it's very new five-year economic plan in November 2020, that he said man of CBZ Holdings. The group, which owns than 66 projects in 28 african nations to a value accessible,” said Holtzman. is expected to deliver annual expansion of more than five CBZ Bank, has positioned itself at the forefront to of $16,6 billion. Referring to government estimates that the percent through 2025. The "national development strategy transform Zimbabwe’s financial services sector. Today, there are 17 000 african businesses Zimbabwean economy contracted by around 6 1” will focus on “accelerated growth,” driven by agriculture, “with a new board in place since February registered with the dubai Chamber of Commerce percent in 2019 with bleaker predictions for the mining, manufacturing and tourism. last year, CBZ aims to reach global investors and and Industry — many of these companies lever- future, the chairman insisted the current market The southern african nation, which owes more than $8 become a conduit for foreign investment in Zim- age dubai as a base to attract investment into their landscape still offers opportunities for financial billion to international financial institutions, still hopes to babwe, including Middle Eastern investors,” the own countries. Exports from dubai to Central and institutions in Zimbabwe, even amid high infla- pursue an arrears-clearance programme with multilaterals chairman told Arabian Business. west africa increased by 85 percent and 57 per- tion rates. including the world Bank. CBZ Holdings, one of the largest listings on cent respectively in January compared to the same "as recently as 18 months ago, our bank had a The CBZ chairman, who has previously served as vice the Zimbabwean stock market, currently owns month the previous year. market capitalisation of $14 million, because the chairman of Barclays Capital and aBn amro Bank, said assets worth $2,19 billion. The total value of member companies’ exports market was pricing in the country risk of the past. there are significant mutual trade interests in the agritech according to Holtzman, who is also chair- targeting african continent reached aEd2,9 bil- Today, the market capitalisation exceeds $500 space. man at the Bank of Kigali — Rwanda’s largest lion ($790m) during the same month, marking million. Growth will be exponential,” Holtzman “Beyond natural resources, there are excellent opportu- financial institution —Middle Eastern investors a 4,2 percent year-on-year increase achieved de- said. nities in agriculture — CBZ is currently the largest lender in are already present in Zimbabwe and Rwanda, spite Covid-19-related economic headwinds. Zimbabwe was a closed economy for many agro-business in the country. The UaE has a lot of expertise with dubai Ports having a strong presence in both as the country with the most minerals per years. However, the country is now open for busi- about converting land that wasn't previously friendly to agri- countries. square kilometre, Zimbabwe offers an abundance ness, the chairman said. culture, to being very productive.” “In particular, the UaE is everywhere and of natural resource investments, the chairman “any investment in the diamond and platinum In the coming years, Holtzman says he expects trade dominant,” he said. “It’s been especially aggres- said. The country is one of the world’s largest sector was limited to indigenous Zimbabweans relations between Zimbabwe and the UaE in particular to “grow without question. Zimbabwe exports to UaE totalled $832.9 million in 2019 with metals, stones and leather being the most valuable, according to the United nations. and despite pandemic pitfalls in the past year, Holtzman expects tourism to regain its lustre. at the beginning of 2020 dubai’s albwardy Investments completed a $20 million purchase of Meikles Hotel in Zimbabwe’s capital Harare. “The Meikles Hotel provides a unique opportunity to invest in Zimbabwe’s leisure and business markets as a first mover,” Laurie ward, albwardy director of hospitality, told Reuters in a statement. albwardy is expected to spend up to $30 million in upgrading the hotel, which was established in 1915, and has 312 rooms. other deals in the sector are likely to follow in 2021, Holtzman said. The CBZ chairman also highlighted potential investment opportunities in Rwanda. “The UaE is very present in Rwanda. It represents a different set of opportunities. Under the Presidency of Paul Kagame, who rescued and rebuilt the country from geno- cide, it's the only country in africa that is free of corruption,” he said. “It's extremely transparent. Rwanda is often referred to as the switzerland of africa. It's growing into a very important financial services centre.” Holtzman said Rwanda offers “exciting opportunities” in high quality premium tea, coffee, and natural resources such as tin, tantalum and tungsten. Both Zimbabwe and Rwanda are ripe for fintech investment and partnership, the chairman said, adding that CBZ Bank is open to working with UAE fintechs. “we have created CBZ digital as a separate subsidiary, and the sector is really strong. one of the advantages we have in Zimbabwe and Rwanda is that 75 percent of the country don't have formal bank accounts,” he said. There is incredible room for growth. “It’s a journey we are already embarking on. we would welcome partnership with the UaE in this area where they've had a lot of success.” — arabianbusiness.com How much you need to make the richest one percent list URIoUs to know what the cutoff is to be in the wealthiest one percent? The new annual wealth Re- Cport from Knight Frank breaks the numbers down for the Us and other countries around the world. an individual in the Us needs a net wealth of $4,4 million to be among the richest one percent in the world, according to the Knight Frank 2021 wealth Report. Compared to the rest of the world, the Us has the third-highest wealth threshold to break into the one percent. However, the Us has the highest number of what Knight Frank calls ultra-high net worth individuals (UHnwI) res- idents. The real-estate consultancy firm defines a UHN- wI resident as someone whose net wealth exceeds $30 million. switzerland has the second-highest wealth threshold, with a person needing $5,1 million to join the richest one percent. Monaco — where the densest population of the super-rich reside according to Knight Frank — has the highest mark to hit for the one percent: $7,9 million. others listed in the report included no. 4 singapore at $2,9 million, positioning it as asia's highest entry ahead of Hong Kong, which requires a net wealth of $2.8 million. The highest entry to the richest one percent for Latin america is argentina at $360 000. south africa has the highest wealth threshold out of any other country in africa, at $180 000. Countries with the lowest wealth thresholds to crack into the one percent include Indonesia, where a person needs $60 000, and Kenya, where a net wealth of $20 000 is needed for that status. The report predicts that India's one percent threshold will almost double within the next five years and increase by about 70 percent for the Chinese Mainland from $850 000 in 2020. "we are entering a new economic cycle and the prospects for wealth creation and growth are huge," david Bailin, Chief Investment Officer at Citi Private Bank, told Knight Frank. — businessinsider The Financial Gazette March 04-10 2021 | Page 27 National News Zim engineers observe Kamungeremu named in Zimsec board IMBABWE National Cham- lidzani Faith Masiye-Moyo. World Engineering Day ber of Commerce (ZNCC) Other board members include Zvice-president and business- Zimbabwe Teachers’ Association man Mike Kamungeremu has been president Richard Gundane, ed- IMBABWE’s engineers have the first UNESCO Engineering Re- named in a 14-member Zimbabwe ucationist (specialist in Learners joined rest of the world in cel- port, “Engineering: Issues, Challeng- School Examinations Council with Disabilities) Sindile Mhlanga, ebrating the World Engineer- es and Opportunities for Develop- (Zimsec) board. University of Zimbabwe lecturer Z Kamungeremu is the managing Eventhough Ndlovu, Chinhoyi Uni- ing Day for Sustainable Develop- ment”, the new report highlights the ment which is celebrated worldwide crucial role of engineering in deliver- director of Tendo Electronics and versity of Technology vice-chan- Power Engineering and current cellor David Jambwa Simbi, Ed- on March 4, of each year. ing the 2030 Agenda for sustainable board chairman of Ramola Security ucationist and administrator John The day which was proclaimed by development. Pvt Ltd. Dewah, lawyer Wadzanayi Chi- UNESCO at its 40th General Confer- It also shows how inclusive and The youthful businessman is rongoma, accountant Kind Kap- ence in 2019 offers an opportunity to gender equitable engineering profes- the past ZNCC Harare Branch fudza, retired National University highlight engineers and engineering sion can bring about new perspec- chairperson and ZNCC National of Science and Technology Regis- achievements in our modern world. tives and thus respond to the shortage Finance Committee chairperson for trar Fidelis Mhlanga, educationists “It also aims to improve public of engineers, showcases of engineer- two years. Lazarus Nembaware, Suzzane Jos- understanding of how engineering ing innovations for implementation Kamungeremu is a qualified celyne and Rogers Sisimayi. and technology are central to mod- of the SDGs, analyses progresses and chartered management accountant “After consultations with Pres- ern life and for sustainable develop- challenges in engineering education and a chartered global management ident Mnangagwa, I am proud to ment.” and capacity building, and summa- accountant with a track record Mike Kamungeremu announce the appointment of 14 In Zimbabwe, the engineers are rizes the regional trends in engineer- in private sector financial man- new board members to the Zimsec agement, strategic management, renewable energy equipment, air board, who will serve in this capac- represented by various bodies such ing development. corporate governance, taxation, conditioning andother power net- ity from 2021 to 2024. as the Zimbabwe Institution of Engi- Finally, it gives recommenda- turnaround strategies and adminis- work critical physical infrastructure “This new board comes in at a neers (ZIE), the Engineering Council tions for developing engineering tration. (integrated racks,environment mon- time when Zimsec is examining of Zimbabwe (ECZ), the Zimbabwe for the SDGs, and calls for global He holds a Bachelor of Ac- itoring, cooling, power, cabling for the Ministry’s competence-based Association of Consulting Engineers cooperation with government and countancy Honours Degree from data centres) equipment,including curriculum. The Board of Directors (ZACE) and their other partners. multiple stakeholders to promote the the University of Zimbabwe, a di- providing comprehensive infra- which superintends over Zimsec The World Engineering Day development of engineering for the ploma in Financial Management structure and energy management- is made up of academics, lawyers, 2021, running under the theme “En- SDGs. (ACCA-UK), a Master’s Degree in solutions. educationists, accountants and re- gineering for A Healthy Planet- Cel- The World Federation of En- Business Administration (UZ) and The Zimsec board which was an- nowned administrators in whom ebrating the UNESCO Engineering gineering Organisations (WFEO), memberships of the Institute of Risk nounced by Primary and Secondary we have faith that standards will be Report”, is focusing on celebrating together with its members and part- Management South Africa, and the Education minister Cain Mathema maintained and made better through the launch of the second UNESCO ners, will celebrate the World En- Institute of Directors of Zimbabwe. in Bulawayo on Wednesday last their guidance,” said Mathema week will run the country’s public Engineering Report “Engineering for gineering Day on the day and will Tendo Electronics and Power Zimsec is a parastatal under the Engineering is a total solutions pro- examination until 2024. Ministry of Primary and Second- Sustainable Development: Deliver- include hosting a series of webinars, vider that caters for all sectors of the Bindura University of Science ary Education formed by an Act of ing on the Sustainable Development Poster Design Competition, Videos economy, supplying, installing,ser- Education vice- chancellor Profes- Parliament in 1996, mandated to Goals”. Collection from Young Engineers. vicing, and maintaining UPS, stand- sor Eddie Mwenje who was the past administer public examinations at Ten years after the publication of — Staff Writer by generators, inverters, CCTV Zimsec board chairman retained his Grade Seven, Ordinary Level, and and accesscontrol, fire suppression, post and is deputised by lawyer Mi- Advanced Level. — Staff Writer Page 28 | March 04-10 2021 The Financial Gazette National News ‘RBZ should maintain tight lid on money supply’ Paul Nyakazeya FBC said the level of money sup- June, and further to ZWL$82 /US$ by it maintains a stranglehold on money Group Digital Editor ply in the economy was critical and the end of December 2020. supply growth, which can upset the should be well monitored and con- “Consequently, foreign currency macro-economic stability brought HE Reserve Bank of Zimbabwe trolled through the monetary policy. ZWL$17,35/US$ deposits increased from ZWL$12,45 about by exchange rate stability.” (RBZ) should keep a tight lid on “It is the duty of the central bank January 2020 billion January to ZWL$102,18 billion “Should fiscal discipline improve, Tbroad money supply growth, to to have money supply maintained at Exchange Rate in November 2020, thus significantly we expect reprieve emanating from a avoid fuelling high inflation and ex- sustainable levels. The pace at which accounting for the expansion in mon- stabilising local currency. The econ- change rate volatility, FBC Securities money supply grows should be well ey supply. Foreign currency deposits omy is less likely to continue its dol- has said. linked to the economic development accounted for 55,4 percent of money larisation trend if the local currency is In its report titled 2021 Outlook for a healthy economy,” the report ZWL$57/US$ stock, while local currency deposits stable,” said FBC. and investment primer, FBC Securities said. June 2020 constituted the remainder,” said FBC. The Zimbabwean economy has said the pace at which money supply As at the end of December 2020, Exchange Rate Broad money supply as of Novem- been characterised by several monetary grows should be well linked to the eco- reserve money was ZWL$18,76 bil- ber 2020 stood at ZWL$190 billion, and fiscal challenges, hyperinflation, nomic development of the economy. lion, compared to a year-end target an annual growth rate of 750 percent. liquidity constraints, de-industrilisa- “Empirical studies have indicated of ZWL$25,20 billion. Money supply The Treasury recorded a surplus of tion and high interest rates. Monetary that measures of the money supply increased over the year, rising from ZWL$82/US$ ZWL$3,8 billion for the year to Sep- authorities then introduced a dual cur- through time have exhibited close re- ZWL$36 billion in January 2020 to December 2020 tember 2020. rency regime in an attempt to solve the lationships with important economic ZWL$184 billion in December 2020. “The US$ revenue space is set to aforementioned economic challenges. variables (GDP, price levels). Money FBC said the growth in money Exchange Rate widen given the introduction of US$ “The economy seemed to be head- supply provides important informa- supply was largely attributable to the based presumptive tax and the exten- ing for another hyperinflationary envi- tion about the near-term course for the impact of exchange rate movements on sion of IMTT to US$ transactions; ronment prior to this decision given the economy and determines the level of the 60 percent foreign currency com- this will help contain the funding gap then trending month on month inflation prices and inflation in the long run,” ponent of the deposits. The exchange in January 2020 to ZWL$57/US$ in 2021. The central bank has been figures,” said FBC. said FBC. rate depreciated from ZWL$17,35/US$ at the first foreign exchange auction in keeping a hawk’s eye on liquidity, as [email protected]

Tafadzwa Mahachi Stanbic appoints new CFO TANBIC Bank has appointed seasoned banker, Ta- fadzwa Mahachi as their new Chief Financial Offi- Scer (CFO), with effect from March 1, 2021. Mahachi, who is a Chartered Accountant and a holder of a Bachelor of Accounting Science Honours (Hons BCompt) and a Post Graduate Diploma in Auditing, re- places Solomon Nyanhongo who was appointed chief executive (CE) in January this year. Gregory Sebborn, the bank’s chairman said Mahachi will also join the board of directors as executive board member of the Standard Bank Group subsidiary. “I am pleased to announce the promotion of Tafadz- wa Mahachi to the role of chief financial officer and executive board member of Stanbic Bank Zimbabwe, effective March 1, 2021,” said Sebborn. Mahachi, who has been with Stanbic Bank since 2008 was serving as the head of finance before this recent development. He brings with him a wealth of banking experience which is envisaged to drive the leading financial services institution forward. In earlier years, he was seconded as head of finance for Standard Bank Eswatini for almost a year, a move which can be said to signify the Standard Bank Group’s confidence in his capabilities. In an accompanying statement, Stanbic’s recently appointed CE, Solomon Nyanhongo, congratulated Maha- chi on his appointment and indicated that Mahachi has an exceptional understanding of the wider financial services industry and has become an integral player in the banking sector at large. Mahachi’s appointment comes two months after the appointment of Nyanhongo as substantive CE following the retirement of his predecessor Joshua Tapambgwa in December last year. — Staff Writer The Financial Gazette March 04-10 2021 | Page 29 THE Los Angeles County Sheriff’s Department has ex- ecuted a search warrant to obtain data from the “black box” in the car that was crashed last week by famed golfer Tiger Woods. But the sheriff’s department has News Worth Knowing decided not to seek a warrant to obtain Woods’ blood to help determine whether he was under the influence Sport of medication at the time of the crash February23. Page 30 March 04-10 2021 Zim thump Afghanistan IMBABWE sauntered to a big win over Af- with a single to square leg, but only scored fi ve more ghanistan in the fi rst Test meeting between these runs before fl icking Hamza to midwicket. Williams' Ztwo sides, which lasted just two days, in Abu hundred was his second successive three-fi gure score Dhabi. After bowling Afghanistan out for scores of 131 in Tests and he showed the temperament required to and 135, Zimbabwe needed just 17 runs to win and got succeed in the longest format. them unscathed in 3.2 overs in their second innings. To a lesser degree, so did Zadran, with good aware- On a surface that was green-tinged to start where ness of his off stump and an eye for any small errors there was ample movement to be found and good in line or length. He was especially comfortable against bounce throughout, scoring was tough but not im- spin and will serve as an example to the rest of the line- possible. Zimbabwe's captain Sean Williams, who up, especially those in the top order. brought up his third Test century and second as captain, Debutant opener Abdul Malik has work to do on his and 19-year-old Afghan opener Ibrahim Zadran, who technique against shorter deliveries after he picked up a top-scored for his team with 76 in the second innings, pair, edging Nyauchi to Regis Chakabva in the second showed the application required to craft an innings on over. this pitch. Solid defensive technique was a must and No. 3 Munir Ahmed, also in his fi rst match, played any errors in length could be punished, which they both down the wrong line to a full Muzarabani ball and Rah- did. mat Shah was undone by swing from Nyauchi, and No other batsmen on either side managed more tried to turn a ball that dipped on him square but was hit than 44 runs, with only four Zimbabweans other than on the pad to be dismissed lbw for a duck. Williams getting into double fi gures and one other Af- Hashmatullah Shahidi top-edged a short ball to deep ghan player, Afsar Zazai, making more than 30. Eight square leg, Zazai went forward to defend a Williams de- Afghan batsmen were dismissed for single fi gures in livery that pitched on middle stump and spun past the their second innings, fi ve of them for ducks. edge to trap him lbw, and Asghar Afghan left a bat-pad Neither Zimbabwe nor Afghanistan played Test Zimbabwe secured a big win over Afghanistan in the fi rst Test meeting between these two sides, which gap that Muzarabani burst through with a delivery that cricket for a year before this and the struggles of their lasted just two days, in Abu Dhabi. jagged back in. batsmen was as much an illustration of the dearth of By tea, with Afghanistan 49 for 6, Zimbabwe had long-form cricket as it was an indication of the com- presence helped push Zimbabwe into a commanding Ahmadzai thought he had Williams caught behind an innings victory in their sights, which only got closer parative strength of their bowling styles. Zimbabwe's lead, while Williams acted as the fulcrum around which on 70, and there seemed to be a sound, but umpire when Burl bowled fellow legspinner Abdul Wasi short- quicks Victor Nyauchi, Blessing Muzarabani and the innings was build. Ahmed Shah Pakteen was unmoved. But, Afghanistan ly after the interval. Donald Tiripano shared 16 of the 20 Afghan wickets Williams lost his overnight partner Ryan Burl in did fi nd a way to break the partnership. With less than Hamza stuck with Zadran and shared a 48-run among them while left-arm spinner Amir Hamza took the second over of the second morning, but Chakabva 15 minutes for lunch, Zahir Khan drew Chakabva for- eighth-wicket stand that ended when Zadran's concen- a career-best 6 for 75, his second successive fi ve-for in transferred pressure back on to Afghanistan. He scored ward in an attempt to defend a ball that took the inside tration waned and he drove a wide Tiripano delivery Tests. 24 runs off the fi rst 34 balls he faced, and struck Zim- edge onto the pad and to Abdul Malik at short leg. only to edge behind. Tiripano had Ahmadzai caught Ultimately Williams, and the two half-century babwe's only six. Williams entered the 90s with a pull off Zahir be- at second slip off the next ball and Zahir toe-ending a stands he shared with Sikandar Raza and Regis Chak- Williams' approach had been watchful throughout fore Tiripano departed in similar fashion to Chakabva. slog to mid-off to end the Afghanistan innings and leave abva, proved to be the biggest difference between the and he scored 11 runs in 22 balls in the morning be- Muzarabani took the lead over 100 with a heave over Zimbabwe with a small target to take the series lead. two sides. While Raza and Williams stabilised Zimba- fore he had the opportunity to drive Yamin Ahmadzai square leg, and Williams went to lunch on 97. He The second Test starts on March 10 at the same ven- bwe from 38 for 4 on the fi rst day, Chakabva's proactive through extra cover. reached his hundred in the third over after the break ue. — ESPNcricinfo

ForFor thethe weekweek endingending 2406 FebruaryJanuary 2020 2021 The Financial Gazette March 04-10 2021 | Page S1

EssentialService

Testing still important despite drop in Covid-19 cases

ICOLE Whiteway developed a routine since the “They could be way beyond the active infec- Some of the misconceptions Barrett hears people would add asymptomatic testing to their start of the pandemic. She wears a mask, maintains tion and they just are what we call shedding some a lot about asymptomatic testing are related to routine and those who already get tested would Nphysical distancing, washes her hands often, and virus that’s not particularly infectious.” PCR is so self-isolation. do it more often. showers every day after coming back from work. But as a sensitive that it can pick up on dead virus frag- She said that a person doesn’t have to self-iso- “We have one of the strongest programmes teacher at a large high school, she spends long hours with ments. On the other hand, the less sensitive rapid late if they go to a testing site at the same time as of no-symptoms testing in the country,” she said. about 1 500 other people. test can only pick up on live infectious virus. So, another person who later tests positive. If some- “It’s really important that we don’t think that “That’s a whole lot of bubbles in one place,” she said in if a positive case from a rapid test is confirmed one gets a positive result through a rapid test and with zero cases, we don’t need to continue it. It’s an interview recently. through PCR to be a true positive, it means a per- it’s later determined to be a false positive through in fact, way more important, especially with vari- Whiteway also lives with her mother, who is in her 70s, son has an active infection and could spread the PCR, they also don’t have to stay off work or ants coming our way that can be more transmitta- so she always feels nervous about bringing Covid-19 home. disease. self-isolate. Barrett added that she hoped more ble.” — Agencies When Nova Scotia set up its first pop-up clinic for asymptomatic testing in late November, Whiteway saw it as an opportunity to add one more layer to her Covid-19 preven- tion routine. Then in early December, the province announced that people could book an appointment online to get a free asymptomatic test done. Whiteway, who lives in the Halifax Regional Municipality, decided to get a test every other Sat- urday. “It’s unbelievably easy,” she said. “I usually book it on my way there. … There’s enough testing capacity in the city to find somewhere when I’m available and I’m in and out in five minutes.” While thousands of people got asymptomatic tests when they were first introduced, Whiteway now appears to be in the minority. In a live briefing, Robert Strang, the province’s chief medical officer of health, said the number of people getting asymptomatic tests through pop-up sites or appointments has decreased. Pop-up clinics use rapid tests, where people can get their result in as little as 30 minutes. Appointment-based asymptomatic tests use a sensitive method, called polymerase chain reaction (PCR), to identify traces of the virus and the result is ready within 72 hours in most cases. In both tests, the nose swab is used to collect the sample for adults. “It seems like people feel as we have very low case numbers, we don’t need to be so worried,” he said. “That couldn’t be further from the truth.” Lisa Barrett, infectious diseases doctor and scientist at Dalhousie Univer- sity, said 30 per cent of people who have Covid-19 don’t know they have it. “So, I want people to know that just because you don’t have symptoms and we are diagnosing zero cases, doesn’t necessarily mean that there are zero cases in the province.” During the second wave of the pandemic, 14 percent of cases in Nova Scotia have been asymptomatic, said Marla McInnis, a spokesperson with the Department of Health and Wellness. That means out of 495 positive cases reported to date, 69 people who tested positive for Covid-19 did not have symptoms. Asymptomatic testing is one way for Public Health to find these cases before they spread the virus into the community. “It’s kind of like an earthquake monitor … Just because you haven’t had an earthquake in a little while, you keep the earthquake monitor on, particularly between earthquakes, so you know that one is coming,” said Barrett. True or False When doing asymptomatic testing in communities when the risk of infection is low or where there are very low case numbers, there’s a chance of getting a greater number of false positive or false negative results. A false positive is when a test result shows a person has a virus or disease when they don’t. A false negative test result could happen early in infection, said Barrett, where a person would have “a little bit of virus hanging around but not enough to make the test positive.” Barrett said there’s no perfect method that could identify all Covid-19 infections, but that’s not the purpose of asymptomatic tests. “Our questions are a little bit different. It’s can we find some people who would otherwise not be tested at all because they don’t have symptoms or risks? Can we find those folks early and use one of two tests to identify them?” “Even if we find one true positive, we’ve possibly prevented 10 new infections.” Confirmation of a positive result A positive test determined through PCR is considered a true positive and doesn’t need additional confirmation, said Barrett. But if someone gets a positive result through a rapid test, they’re asked to get tested again at a primary assessment centre where PCR is used. Barrett said there have been about 25 people who got tested at a rapid testing pop-up clinic and received a false positive result. The pop-up sites identified 12 to 14 true positive cases and 16 000 negatives. While a positive test result determined through PCR is a true positive, it doesn’t always mean a person has an active infection. Page S2 | March 04-10 2021 The Financial Gazette ZIMSEC BOARD Govt appoints new Zimsec board RIMARY and Secondary Education past Zimsec board chairman retained his post. Science and Technology Registrar Fidelis Mh- Chirongoma, Zimbabwe Teachers’ Association president Minister Cain Mathema has appointed a He is deputised by a lawyer Milidzani Faith langa, educationist and educational measurement Richard Gundane, educationist (specialist in Learners with P14-member Zimbabwe School Examina- Masiye-Moyo. specialist Dr Lazarus Nembaware, University of Disabilities) Sindile Mhlanga, accountant Kind Kapfudza tions Council (Zimsec) board to run the country’s Board members include Chinhoyi University Zimbabwe lecturer Dr Eventhough Ndlovu, pri- and another accountant Mike Kamungeremu. public examination until 2024. of Technology Vice-Chancellor Professor David vate school head Suzzane Joscelyne and educa- Mathema challenged the board to spearhead the minis- Bindura University of Science Education Vice Jambwa Simbi, Educationist and Administra- tionist and administrator Rogers Sisimayi. try’s competency-based curriculum. Chancellor Professor Eddie Mwenje who was the tor John Dewah, Retired National University of Other board members are lawyer Wadzanayi “The board is made up of academics, lawyers, educationists, accountants and renowned administrators in whom we have faith that the ministry standards will be maintained and made better through their guidance,” Mathema said in a statement. “This new board comes in at a time when Zimsec is examining the ministry’s competence-based curriculum. The board of directors which superintends over Zimsec is made up of academics, lawyers, educationists, accountants and renowned administrators in whom we have faith that standards will be maintained and made better through their guidance.” He said he is set to appoint two additional board members to make them 16. Zimsec is a parastatal under the ministry of Primary and Secondary Education formed by an Act of Parliament in 1996, mandated to administer public examinations at Grade Seven, Ordinary Level, and Advanced Level.

Professor Eddie Mwenje Zimsec historical background

1983: Cabinet decision to localise Ordinary Level and Advanced Level examinations passed. 1984: Training of the fi rst lot of markers carried out. 1990: First localised Ordinary Level examination written. 1994: Zimbabwe School Examinations Council Act (ZIMSEC ACT 1994) passed by the Parliament. 1995: Completion of the localiation of the Ordinary Level Examination. October 1995: First Zimsec board appointed. November 1995: Birth of Zimsec council under an interim director. July 1996: First substantive Zimsec director appointed. November 1996: Former Examinations Branch staff joined Zimsec. November 2002: First Zimsec Advanced Level examination written. 2003: Completion of the localisation of Advanced Level examinations. The following qualifi cations are offered by Zimsec: For primary education Zimsec Grade Seven Certifi cate, awarded after sitting for Grade Seven (Year Seven) examinations. For secondary education Zimsec General Certifi cate of Education Ordinary Level (commonly referred to as "O-Level"), this is for individuals doing the 2-year GCE O-Level subject-based course beginning in Form 3 to Form 4 (i.e. Year 10 and 11). Zimsec General Certifi cate of Education Advanced Level (commonly referred to as "A-Level"), this is the school leaving qualifi cation conferred by the Council to pu- pils completing secondary or pre-university education. The Financial Gazette ZIMSEC NEW BOARD SpECIAl fEAtuRE March 04-10 2021 | Page S3 Govt appoints new Zimsec board

pROfESSOR Eddie Mwenje is the vice chancellor of Bindura university of Science Education. He is a full professor of Microbiology and Bio- technology. He Obtained his phD in 1994 at the university of Birmingham in the united Kingdom. He holds an MBA from the National university of Science and technology (NuSt) and a Bachelor of Science honours degree in Biological Sciences from the university of Zimbabwe. He holds a diploma in biblical studies and holds several certificates in education. prof. Mwenje has worked at the Birmingham university, university of Zimbabwe and at the Na- tional university of Science and technology. He rose through the academic ranks from being a lecturer, dean to vice chancellor. He worked at NuSt for 15 years and rose to be the dean of the faculty of Applied Sciences. He became the substantive vice chancellor of Bindura university of Science Education (BuSE) in 2013 after serving in an acting capacity since May 2010. prof. Mwenje has spearheaded the growth of Bindura university of Science Education in the last five years. Bindura university of Science Education Professor Eddie Mwenje Professor David Jambwa Simbi won the ZNCC (Zimbabwe Chamber of Commerce) award for the best tertiary institution in 2015. pROfESSOR David Jambgwa Simbi is journals. professor Simbi is a fellow of the prof. Eddie Mwenje won the National public Vice Chancellors Association (ZuVCA). the incumbent Vice Chancellor of Chinhoyi Institute of Corrosion (uK) and the Zimba- Sector leadership Excellence award for 2015. prof. Mwenje is also the inaugural Chairman of university of technology since 2007. bwe Academy of Sciences. He also received the Visionary Award as well as the largest Research group in Zimbabwe in both in- He has previously worked for the Zim- He is also a member of the Institute of Education leadership Award in 2015 from African ternational publications and postgraduate student babwe Iron and Steel Company as the pro- Mining, Metals and Materials, Society of leadership Awards Mauritius. In 2013 he received training, duction and engineering executive manager Mining professors and a Chartered Engi- the Megafest award as one of the top 20 outstanding the Research platform on production and Con- and the university of Zimbabwe where he neer of the Engineering Council (uK). business personality in Zimbabwe. servation in partnership (Rp-pCp). attained his professorship in materials pro- professor Simbi is or has served several cessing and engineering. organisations as a board member and these He serves on many international boards, national In 2012, he was honoured by an international organization for his role in science education. Bindura professor Simbi holds a BSc (Hon) de- include: International Corrosion Coun- committees. gree in Applied Chemistry and a phD in cil, Zimbabwe Institution of Engineers prof. Mwenje has won many international grants university of Science Education along with its partners received the Erasmus MuNDuS prestigious Metallurgy (specialising in Corrosion Sci- Council, Zim-China Wanjin Joint Venture including the tWAS grant which resulted in NuSt Company, tobacco Industry and Market- grant to support a Science and technology teacher ence and Engineering) from the universi- being accorded a tWAS Research unit status. ties of portsmouth (formerly portsmouth ing Board, Manicaland State university of training Network involving Africa and Europe. Among other boards and committees he has polytechnic) and leeds, respectively. Applied Sciences and pan African Miner- served as a board member for the Centre of Excel- prof Mwenje is a renowned scientist, a strategic He has extensively published research als university of Science and technology lence in tree Health Biotechnology at the universi- leader and administrator. articles on extractive metallurgy and mate- foundation Committees to mention but a ty of pretoria in South Africa since 2004. He has supervised several phD, master and un- rials engineering in reputable international few. prof Mwenje is a member of the Governing dergraduate students and has published close to 50 Council of the African Network of Scientific and articles in books and refereed journals. technological Institutions (ANStI) representing He is married to Dr Juddie Mwenje and together the Southern African Region. they have three children and have also raised other He is the Chairman of the Zimbabwe university children. He loves God and is an ordained reverend.

MIlIDZANI faith Masiye-Moyo is a legal practitioner, conveyancer and notary public. She holds a Bachelor of laws llB(S) Hons degree from the university of Zim- babwe. She has over nineteen years’ experience in various sectors of the legal profession including private practice, local municipality and government. She began her career as a private attorney in Bulawayo where she practiced for 2 years between 1998 and 2000. from 2000 to 2003 she was employed by the Bulawayo Municipality as a legal officer. She is registered to practice in Botswana and she worked for the Botswana government as a magistrate for 10 years from 2003 to 2013 starting off as a magistrate grade II and moving up the ranks to senior magistrate, a position she held at the time of her resignation C KUHUNI ATTORNEYS congratulate our very own Associate partner Ms Wadzanai in 2013. Chirongoma on her appointment as board member of the Zimbabwe School On her return to Zimbabwe, she Examinations Council. joined the firm as managing associ- We are pleased with your achievement and are confident you will make a significant ate partner. contribution to Zimsec and indeed to the future of the nation’s education. She specialises in conveyanc- ing, notarial practice, family law and the drafting of wills and commercial contracts. She is currently the vice chairperson of the Zimbabwe Women lawyers Association (ZWlA) Board. Masiye-Moyo has sat on this board since 2013. She also sits on the Bulawayo Metropolitan provincial Sports and Recreation Committee board. She is also a member of the Bu- lawayo legal practitioners Associ- ation and a member of the Interna- Milidzani Faith Masiye-Moyo tional Bar Association. Page S4 | March 04-10 2021 The Financial Gazette

INTERNATIONAL WOMEN'S Day - March 8, 2021 First female African WTO boss ready for battle VEN for an economist, there are lots of her stints in charge of Nigeria’s fi nances, she major banks and corporations she has advised, very large numbers in the life of Ngo- tackled Africa’s most populous country’s $30 the 10 honorary degrees in addition to her own Ezi Okonjo-Iweala. As the chair of Gavi, billion debt. And she has 1,5 million followers doctorate, 20 or so awards, dozens of major re- the vaccine alliance, she has overseen the an- on Twitter. ports authored, and the books. nual immunisation of millions of children. There are lots of smaller numbers too: the Then there are the multiple lists frequently When managing director of the World Bank, 20 non-profi t organisations that have appoint- featuring Okonjo-Iweala, 66: the world’s 100 she oversaw $81 billion worth of operations. In ed Okonjo-Iweala to their advisory boards, the most powerful women, 100 most infl uential

Ngozi Okonjo-Iweala

people in the world, 10 most inﬂ uential women in Africa, Top 100 or 150 women in the world, and many others. Okonjo-Iweala was added to a new list: that of the director generals of the World Trade Organisation (WTO), a position that has never before been occupied by an Af- rican person nor by a woman. She will take over the institution, with its budget of $220 million and staff of 650, at a critical time. It will be the moment to put all the number-crunching experience she has gained over a 40-year career to use. The global trading system — with the WTO at its heart — is facing a make-or-break moment, say experts. Okonjo-Iweala was six when Nigeria gained its inde- pendence from Britain in 1960. She grew up in a small village in the country’s southern Delta State. Her parents, both distinguished academics, were studying in Europe on scholarships, so she and her six siblings were raised by a grandmother. Life was not easy. By the time she was nine, Okonjo-Iweala had learned to cook, fetch wood and manage many of the household tasks. The civil war pitting the separatist Biafra state against the Nigerian central government disrupted her education and exposed her to further hardship. Sponsored by Nedbank Zimbabwe

“I was eating one meal a day and children were dying. So, I learned to live very frugally. I often say I can sleep on a mud ﬂ oor as well as a feathered bed and be very comfortable. It has made me someone who can do without things in life because of what we went through,” Okon- jo-Iweala told Forbes magazine last year. When her three-year-old sister became chronically ill with malaria, it was Okonjo-Iweala who carried her for three miles to the doctor’s surgery, pushing through a crowd of 600 and climbing through a window to get the treatment that saved the child’s life. At the end of the war, Okonjo-Iweala went to the US to study economics at Harvard and MIT (Massachusetts Institute of Technology), married her childhood sweet- heart and, at the age of 25, began working for the World Bank, rising steadily up the institution’s hierarchy, travelling widely, and only leaving when invited to be Finance minister of Nigeria in 2003. The appointment plunged Okonjo-Iweala into a no- holds barred battle to force through economic reforms. “When I became Finance minister, they called me Okon- jo-Wahala — or Trouble Woman,” she told the Guardian in 2005. To Page S5 The Financial Gazette WOMeN'S DAy SpeCIAl feATUre March 04-10 2021 | Page S5 First female African WTO boss ready for battle

From Page S4 have long protested against the advan- “It means: ‘I give you hell.’ But I tages they say it has given the developed don’t care what names they call me. I’m world, and their relative lack of influence a fighter; I’m very focused on what I’m over decision-making compared with doing, and relentless in what I want to richer states. achieve, almost to a fault. If you get in Agricultural subsidies have been a my way you get kicked.” particular point of contention. She tackled Nigeria’s huge debt by The organisation has not sealed a ma- convincing sceptical western powers to jor multilateral trade deal in years, and grant relief. hopes that it could somehow curtail over- Gordon Brown called her “a brilliant fishing or help manage the commercial reformer”, though others were less appre- wild west that is e-commerce have been ciative of the deal she did with creditors. dashed. The Covid-19 pandemic, with strug- "The WTO needs … a gling economies and growing protection- fresh look, a fresh face, ism worldwide, poses further challenges. an outsider, someone “The WTO needs … a fresh look, a fresh face, an outsider, someone with with the capability to the capability to implement reforms and implement reforms to work with members to make sure the and to work with mem- WTO comes out of the partial paralysis bers to make sure the that it’s in,” Okonjo-Iweala said in an in- WTO comes out of the terview with CNN. partial paralysis that Osakwe, the economist, said the ap- it’s in." pointment was a “big deal for Africa and it’s a big deal for the world”. “Having such a remarkably accom- Some commentators point out that plished woman take the helm of an many of the promises she made to Ni- institution that needs some level of a gerians of economic growth and job cre- shake-up, given everything that’s hap- ation went unfulfilled. Okonjo-Iweala is credited with tackling Nigeria’s huge debt by convincing sceptical western powers to pening with trade in the world, the fights “She can be really firm and bold, grant relief during her time as Finance minister. between the US and China. She has been maybe scary to some people, but at the in the trenches,” she said. same time she’s still herself. moved the opposition of the Trump ad- The Geneva-based organisation has italism and process of globalisation it Okonjo-Iweala told her Twitter fol- "A woman who makes us laugh. She ministration to her appointment, it will be faced bitter criticism from all quarters for promotes, while more recently it has been lowers that she was looking forward to has jokes,” said Ada Osakwe, an econo- the WTO that she will run. decades. attacked by the US for failing to tackle “finalising the process of WTO’s DG”. mist who worked with Okonjo-Iweala in This is a far more exposed and far It was the primary target of a move- the challenge posed by China’s model of “There is vital work ahead government. more influential position than any Okon- ment protesting against the more nefar- state capitalism. to do together,” she said. Now that the US elections have re- jo-Iweala has held before. ious consequences of the form of cap- Poorer nations in the global south — The Guardian Page S6 | March 04-10 2021 WOMEN'S DAY SpEciAl fEAturE The Financial Gazette Celebrating women’s achievements HE international Women’s Day is a out gender bias and inequality. We can all to uphold women’s rights and fully leverage the global day celebrating the social, eco- choose to seek out and celebrate women's potential of women’s leadership in pandemic prepared- tnomic, cultural and political achieve- achievements. collectively, we can all help ness and response, the perspectives of women and girls ments of women. create an inclusive world. in all their diversity must be integrated in the formula- the day also marks a call to action for cel- Women stand on the frontline of the tion and implementation of policies and programmes ebrating gender parity, with this year’s theme covid-19 crisis, as health care workers, care- in all spheres and at all stages of pandemic response calling for a more gender-balanced world and givers, innovators, community organisers and and recovery. the difference individuals can make. as some of the most exemplary and effective this month we celebrate females who have taken up this year, the theme for international national leaders in combating the pandemic. top business roles in Zimbabwe. Women’s Day (March 8), “Women in leader- the crisis has highlighted both the centrality precious Nyika was last year appointed as lafarge ship: Achieving an equal future in a covid-19 of their contributions and the disproportion- cement Zimbabwe chief executive. She is one of the world,” celebrates the tremendous efforts by ate burdens that women carry. two women who are steering Zimbabwe Stock Ex- women and girls around the world in shaping Women leaders and women’s organiations change-listed companies to greatness. lafarge’s board a more equal future and recovery from the have demonstrated their skills, knowledge chair describes Nyika as skilled at formulating busi- covid-19 pandemic and highlights the gaps and networks to effectively lead in covid-19 ness strategy and mobilising teams to implement strat- that remain. response and recovery efforts. egy with rigor that delivers results. this year’s campaign theme: #chooseto- today, there is more acceptance than ever She also achieved remarkable results while serving challenge. before that women bring different experienc- as president of the institute of people Management A challenged world is an alert world. in- es, perspectives and skills to the table, and from 2017 to 2019. dividually, we're all responsible for our own make irreplaceable contributions to deci- Another remarkable woman who is inspiring is thoughts and actions — all day, every day. sions, policies and laws that work better for tjeludo Ndlovu. She is Edgars Stores limited chief We can all choose to challenge and call all. executive. She is a qualified chartered accountant with Precious Nyika - Lafarge chief executive a passion for fashion. As group chief executive she reports to her board, oversees the overall business functions of Edgars and provides leadership, strategic guidance for the group’s business units, retail chains, Jet, Edgars and the manufacturing arm. When Eunice Ganyawu-Magwali became managing director for Nestlé in Zimbabwe, Zam- bia and Malawi in 2019, she knew she would be taking on more responsibility than ever before, in her 15 years of working in the corporate world. for her, the top job at the world’s largest food company was a recognition of years of preparation and hard work in the food and beverage sector. in the banking sector, we celebrate Dr Sibongile Moyo who was appointed as the managing director at Nedbank Zimbabwe limited. the hot-shot and seasoned banker has over 13 years experience in the financial service sector. She has been executive director and head of corporate and investment banking at Ecobank Mozambique, head of domestic banking at Ecobank Zimbabwe and head of financial markets. insurance guru Grace Muradzikwa who was appointed as commissioner of the insurance and pensions commission has also been making notable strides. Muradzikwa became the first woman to lead and head a Zimbabwe Stock Exchange-listed company. Dubbed the queen of security industry, Divine Ndhlukula founded Securico Security Services from humble beginnings in 1998. She has tackled a previously male-dominated industry head-on and her business success story is nothing short of remarkable, marking her as one of Africa’s most tenacious and inspiring women entrepreneurs. She was recently appointed as the president of professional Women Executives and Business Women’s forum. clara Mlambo, liquid telecom Southern Africa Regional chief operating officer, who chairs ZimTrade and ABc Holdings boards, is also one of the few women who have broken the proverbial glass ceiling. She needs no introduction to industry, after successfully managing British American tobacco Zimbabwe for two years with the cigarette producer performing well financially through effective cost containment measures. Known for her damning reports, Auditor- General Mildred chiri has unearthed various acts of negligence, outright incompetence and malfeasance in the country. She has defied odds and managed to reveal corruption in state entities although the Zimbabwean government has been blamed for deliberately ignoring action on the adverse reports and at a time the economy is in bad shape, and the country is encumbered by debts. Ecocash’s Natalie Jabangwe is the youngest chief executive to run a mobile money business in Africa. Her company is Zimbabwe’s largest mobile money service. the award-winning chief executive has more than 11 years experience in fintech having worked for such big corporates as Ncr before joining Ecocash. Zimbabwean women have also scaled to corporate leadership positions with the hardworking Eve Gadzik- wa who has managed to get on many boards. She is immediate past president of the African Or- ganisation for Standardisation and she was the first female to hold the post. She was recently elected to serve on the international Organisation for Standardisation council beginning this year up to 2023. the above are just but a few examples of women who have defied odds in the country. The government of Zimbabwe, despite its numerous failures should be commended for working towards the inclusion of women in all aspects of life, be it social, political or economic. More women and girls now serve in political offices, are protected by laws against gender-based violence and live under a constitution that guarantees gender equality. The Financial Gazette March 04-10 2021 | Page S7

NewNew ChairpersonChairperson Jakarasi new Forestry Commission chairperson

NVIRONMENT, Climate, Tour- dress the challenges that are currently ism and Hospitality Industry Man- faced by the parastatals. Egaliso Ndlovu recently appointed “Jakarasi, I want you to redouble your Veronica Gundu Jakarasi as the new For- efforts in afforestation programme. While estry Commission chairperson. in prior years National Tree Planting ef- Jakarasi is a banker with vast ex- forts led by the Forestry Commission perience in environmental and climate would plant 10 million trees or less an- change areas. nually, and I am pleased to note that the She holds a masters degree in envi- figure almost doubled this year,” he said. ronmental policy and planning and is cur- Ndlovu urged Jakarasi to strength- rently studying towards a doctorate. en the management and deployment of During the same briefing, Ndlovu an- the afforestation fund so that the rate of nounced Agrippa Sora as the Zimbabwe planting trees for tobacco curing exceeds Parks and Wildlife Management Authori- the rate of harvesting on an annual basis. ty (ZimParks) chairperson. Ndlovu urged Sora to engage the “I want to acknowledge and appre- Convention on International Trade in En- ciate the boards and management of the dangered Species (CITES) and various two parastatals for progress made in im- member states for financial assistance to proving the operations and performance. assist Zimbabwe in conservation efforts "To further strengthen the corporate and also in dealing with human wildlife governance structures of the two para- conflict. statals, it is my honour to announce the The board members were tasked appointment of the chairpersons of the to design and execute projects that are two parastatals,” Ndlovu said. meaningful and are in line with National Ndlovu encouraged the new board Development Strategy 1 and Vision 2030. New Forestry Commission board chair, Veronica Gundu Jakarasi (right) with new ZimParks board chairpersons to work as a team and ad- chair, Agrippa Sora after the announcement of their appointments. Trees are life, let's conserve them! HE Forestry Commission (FC) is Matabeleland, Manicaland and Midlands a parastatal under the ministry of Provinces in Zimbabwe (Matabeleland TEnvironment, Climate, Tourism North and Midlands Provinces in Zim- and Hospitality Industry. babwe). The Commission was created in 1954 This is home to valuable indigenous through the Forest Act (Cap 19:05) from timber species like Teak, Mukwa, Ma- where it derives its mandate, as well as hogany and Rosewood. There is mature the Communal Land Forest, Produce Act timber ready for harvesting, sawmilling (Cap 19:04). and processing. FC is responsible for regulation, FC also administers the Chirinda For- management and conservation of forest est Botanical Reserve, a 950-hectare bio- resources and managing gazetted in- diversity-rich area. digenous forests which cover about 0,8 Chirinda a means "lookout" or "van- percent of the total surface area of the tage point" in the local Ndau language country. FC manages more than 800 000 and with its unique flora and fauna, it is hectares of indigenous forests located in an ideal location for Eco-tourism.

The Forestry Commission manages more than 800 000 hectares of indigenous forests. Page S8 | March 04-10 2021 forestry coMMission neW chairperson special feature The Financial Gazette Forestry Commission in drive to boost tourism

ildlife-based tourism and trade are of great importance to conser- W vation in africa. they are one of the most lucrative wildlife use options, which form an integral part of Zimbabwe' s conservation and economic development strategy. in Zimbabwe, wildlife production is regarded as a valuable, legitimate and sustainable form of land use and as one of the most appropriate vehicles for development in many rural areas that are marginal for conventional agriculture. the wildlife industry benefits the local economy, in that revenue generated contribute to foreign currency generation, creates employment and stimulates infrastructure developments in the hospitality, communications and transport industries.

In line with global trends of moving from consumptive to non-consumptive tourism activities, Forestry Commis- sion has undertaken to provide photographic safaris in Kavira Forest, Sijarira Forest, Umguza Forest and Gwampa Forest.

the government of Zimbabwe has already created a favourable and enabling environment for investors through establishment of special economic Zones. some tourist destinations around the country are designated special zones for tourism investments whereby a number of incentives and special provisions to facilitate development are in place. the government is promoting various partnership models that will help grow the economy and raise funds for supporting research and conservation projects. it is against this background that fc hopes that both local and foreign investors will invest in and provide conservation financing for natural resources well-being. further, the partnership between fc and the investors will enhance the performance of the public entities to function more efficiently so that Zimbabwe remains the world leader in sustainable conservation. “Zimbabwe is open for business and investments in the conservation industry”. in line with global trends of moving from consumptive to non-consumptive tourism activities, forestry commission has undertaken to provide photographic safaris in Kavira forest, sijarira forest, umguza forest and Gwampa forest. these natural forests support a prolific and diverse number of plant, animal and bird species.