ZIM LOSES $200M in GOLD CASH: Page 3 $2

ZIM LOSES $200M IN GOLD CASH: Page 3 $2

News Worth Knowing Car scandal rocks govt: Page 2

December 6-12 2018 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette

ZSE Report THE All Share index dropped further by 0,03 percent yesterday to close at 158,06 points. Budget Delta dropped $0,0231 to close at $3,2500, Simbisa lost $0,0058 to trade at $0,7400. Nampak traded $0,0107 higher at $0,2520. Amalgamated Re- gional Trading gained $0,0098 at $0,1098. The industrial In- dex lost 0,04 percent to close at 530,67 points, while the Top 10 index was down by 0,28 percent at 160,63 points. The Min- ings index was flat at 208,71 surplus points.

Currencies (Bloomberg) % change ◀ USD:ZAR 14,8338 1,63 EUR:USD 1,1316 0,26 ◀◀ ◀ GBP:USD 1,2764 0,46 ◀◀ ◀ USD: JPY 113,2900 0,14

Stock Markets ZSE (All Share) 166,82 1,49 ◀ ZSE (Mining) 217,34 0,36 ◀ JSE 16 366,00 0,16 illusory, FTSE 100 7 142,33 1,52 1,48 Dow 25 243,54

Commodities (Bloomberg) 0,82

Gold 1 212,90 ◀ Platinum 836,31 0,02 ◀ 0,42 Brent Oil 75,59 ◀

Grains (Grain SA) White Maize ZAR 2 101,36 1,0 ◀ Soya ZAR 4 483,09 2,7 ◀ Wheat ZAR 2 687,49 1,8 experts ◀ Zim schools

Adelaide Moyo fect on October 13 — economist Persistence fees shocker and Ndakaziva Majaka Gwanyanya said this had come “at the expense ZIMBABWEAN parents are in Staff Reporters of bleeding Zimbabweans”. for a high-jump as most schools, “There is nothing to celebrate from the mainly private institutions, have HILE observers have welcomed primary surplus because it did not come from hiked their fees for 2019 by exor- government’s commitment to im- expenditure containment, but rather from tax bitant margins. Wproving its fiscal discipline — as payers who are already heavily taxed. With schools such as Riv- affirmed in Finance minister Mthuli Ncube’s “Admittedly, this (the October surplus) is a erton Academy, Gateway, Bor- maiden budget — they say its claim that it start, but a more ideal situation would be hav- rowdale’s St Johns, Hellenic, St attained a budget surplus in October is “illu- ing the minister contain government expendi- Georges and Convent charging sionary”. ture because it is the main reason for the deficit rates from $9 600 to hard cur- This comes as the country continues to bat- in the first place,” Gwanyanya, who is also a STANDARDS Association of Zimbabwe (SAZ) director-gen- rency-based fees, it would seem tle to pay for critical imports such as pharma- banker, said. the trend of excessive pricing is ceutical drugs and fuel, as biting foreign cur- Tendai Biti, a former Finance minister eral and businesswoman Eve Gadzikwa at the National Annual Quality Awards at Meikles hotel in Harare last also spreading fast to other elite rency shortages worsen. during the government of national unity, said th colleges. In their argument, the And while Ncube attributed the surplus it was “poor accounting to claim Zimbabwe week. Gadzikwa is the 13 and first female president of the African Organisation for Standardisation (ARSO), a schools are citing Zimbabwe’s that he announced to collections flowing from had recorded a surplus” when the country was fast-deteriorating economic situ- the country’s new two percent intermediated expected to close 2018 with a budget deficit of continental intergovernmental standardisation body under the African Union. ― Picture by Freedom Mashava ation as justification for their ac- money transfer tax — which came into ef- more than $2 billion. To Page 2 tions. — Staff Writer Page 2 | December 6-12 2018 The Financial Gazette

National News Furore over car disposal scandal Budget surplus John Kachembere “This is a general practise, which government vehicles at such low added. and Adelaide Moyo happens in most companies. But as prices. Meanwhile, Ncube said govern- Staff Reporters CMED we service different types of “...when the said vehicles have ment is putting in place measures to illusory: experts government vehicles, we don’t em- reached a specified mileage or age efficiently manage its fleet, which PROPOSAL to sell a 2016 ploy people. The employer is the one according to conditions of service, was bleeding the fiscus. Isuzu KB250 truck for responsible for disposing the vehi- will be sold to civil servants who “Consumptive fiscal policy has $1,500 to one of govern- cles,” Mhaka said yesterday, adding were using them,” he said. been worsened by high spending on A From Page 1 ment's principal directors has touched the sale and offer to Mazemo was in An agricultural sciences profes- luxury car expenditures. Refocusing off a storm amid concerns that Pres- line with his "contractual conditions sor, Mpepereki noted that CMED expenditures towards developmental “The Finance minister’s announcement about the ident Emmerson Mnangagwa’s gov- of service. — which is the custodian of all gov- projects and programmes has made $29 million surplus is nonsensical, it is used by some- ernment was "aiding and abetting “If you are employed by govern- ernment vehicles — does not set the it imperative that government further one who does not understand the issues. state-sponsored theft, and plunder ment as a director they give you a car depreciation prices for vehicles, but reviews the unsustainable budget “You cannot qualify what you have done in a of public goods" through imprudent as part of your package. It is your per- follows “clearly laid out policies” and outlays on vehicle procurement and month as a surplus because government is using the remuneration policies to public offi- sonal car and it is an agreement be- only approves requests for clearances usage,” he said. accrual basis of accounting in which it can take weeks cials. tween the employer and the PSC on that come from the PSC. The Treasury boss indicated that before some expenses or receipts are reflected. The shocking August 2018 offer how much they dispose them. This However, former Finance min- going forward, eligible grades in the “We don’t use the cash basis kind of accounting to one M. Mazemo by CMED man- evaluation was specifically for this ister Tendai Biti said the new devel- public sector shall only be consid- ... His (Ncube’s) statements are just not correct,” he aging director Davison Mhaka has car,” he said. opment was tantamount to “theft of ered for replacement or purchase of said. surfaced ― on social media ― after With Mhaka insisting the para- public assets”, which did not occur another motor vehicle if the vehicle John Robertson, another economist, said while the Finance minister Mthuli Ncube has statal "was not to blame for the pric- during the lifespan of the coalition they were allocated has completed surplus was a welcome development — taken against also revealed that government was ing of the car", fears abound that the government between 2009 and 2013. 150 000 km or five years, whichever the backdrop of an anticipated $2,86 billion budget working on a plan to dispose of cars skint Zimbabwean government has “I think that there must be a law comes first. deficit at the end of 2018 — Ncube now needed to beyond five years or 150 000 kilo- lost hundreds of millions of dollars that regulates the disposal of public “Hence, outside this framework, ensure that this was sustainable. metres in mileage, as part of a new through this senseless policy ― in- assets at value,” he said. vehicles will not be replaced even “This surplus was only for the month of October. cost-management and austerity re- herited from Robert Mugabe ― giv- John Robertson, a respected econ- where the employee is assigned an- But we don’t know what will happen come year-end. gime. en that some of the beneficiaries and omist, said there was no justification other portfolio within the public ser- “It’s good that we achieved that $29 million sur- With Mhaka and company chair- top bureaucrats have served the gov- for selling a government vehicle at vice. The employee will continue to plus, but it may not be the case when it comes to man Sheunesu Mpepereki confirm- ernment since 1980. such low prices when Treasury is use the same vehicle until the vehicle year-end ... we know our government is good at over- ing the authenticity of the letter, and And with some departments hav- broke. has completed 150 000 km…. spending, and so we are not guaranteed that a surplus longstanding government policy, ing up to four principal directors ― “It’s quite extraordinary that “In the event of a promotion or will be consistent,” he said. analysts said the sale of a taxpay- and meaning there could be as many government is doing this when they re-assignment involving a different Robertson added that going by history, “fiscal dis- er-funded and $46 000 vehicle for a as 80 officials in this cluster alone are encouraging everyone to accept type of vehicle, all vehicles below cipline has not been high on government’s agenda, song was not only "insensitive, but ― and ministers such as Mnangag- austerity measures. The government one year shall not be offered for sale but we are hoping for the best”. makes nonsense of Harare's austerity wa serving government for three de- should contract independent evalua- to eligible officers, but will be surren- “One important thing to note is that the surplus posturing and five percent pay cut be- cades-plus, the "scale of plunder and tors to help them determine fair value dered to the relevant government en- was an outcome of panic buying, which may not be cause the same bigwigs have a way prejudice" could be staggering of a car before it is disposed to a civil tity as a pool vehicle,” he said. the case in the coming months. of cushioning themselves through Mpepereki also said there was servant,” he said. Ncube said project vehicles “Individuals were spending, and the two percent these dodgy perks". nothing amiss with the disposal of “Although there are government procured using public funds, gov- tax went a long way in boosting the surplus,” he said. laid out procedures ernment and donor funds, shall also Tony Hawkins, an economics professor, last for disposing of not be sold to eligible officers, but week predicted that the country’s revenue collections its fleet, it doesn’t retained as pool vehicles. would increase going forward — thereby mitigating make it right. You “For vehicles between two and the government’s propensity to spend. can’t set a price five years, a depreciation of 20 per- “In all probability, revenue will grow faster than for yourself. There cent shall be charged annually, when the forecast 25 percent, especially since the interme- should be a restric- determining the residual value to be diated money transfer tax — a bad tax in anyone’s tion that governs paid by an eligible officer,” he said. book — is scheduled to bring in $600 million ... ,” the change of own- This applies to ministers, com- he said. ership of cars from missioners, permanent secretaries, However, Hawkins warned that the growth in rev- government to in- judges and equivalent grades in gov- enue would not necessarily translate into better eco- dividuals to avoid ernment. nomic policies. abuse,” Robertson [email protected] Despite widespread outrage over the government’s new two percent transaction tax, President Emmerson Mnangagwa has insisted that the levy is “here to stay”. “Yes, initially when it was articulated by the Fi- nance minister, it had overlooked a lot of people who in our view ought to have been left out. “I can assure you the tax is here to stay as it has helped us plug our deficit,” he said at the Public Sec- tor Audit Conference that was recently held in Harare. According to Ncube, the country’s budget deficit will end the year at more than $2 billion — settling at 11,7 percent of the gross domestic product (GDP). He also readily admitted in his 2019 budget that the country’s budget deficit was well over sustainable levels, as the government had increasingly relied on its overdraft facility with the central bank to keep the State machinery going. However, he was also optimistic about the prospects of shaving this deficit to single digit levels, amid aims to achieve a five percent deficit in 2019, just above four percent in 2020 and three percent in 2021. Ncube has also said that he expects the country’s official inflation — which jumped to 20,85 percent in October — to start falling soon. However, many independent economists say Zimbabwe’s real current inflation is well above 100 percent. [email protected] The Financial Gazette December 6-12 2018 | Page 3 National News Zim loses $200 million in gold cash Nelson Gahadza Association boss’ claims that her members and likely to contribute 45 percent of exports this Business Reporter institution had delivered 19 tonnes of the coun- year so far, as compared to 40 percent in 2017. try’s 28 tonne gold haul to September, feder- According to the body, output targets can IMBABWE has lost nearly $200 million since ation chief executive Wellington Takavarasha only be achieved if challenges related to forex September on the back of reduced gold deliveries said he was not aware if his boss had a board allocations are adequately addressed. to Fidelity Printers and Refiners (FPR), and which mandate or resolution for the mobilisation ini- “60 percent of gold producers indicated Z tiative. that they would increase production by be- has severely constrained the importation of essentials, including fuel. “All I know is that the issue is being facil- tween 10 percent and 20 percent, while 20 This comes as Harare’s liquidity situation has wors- itated by our president and the funding has not percent would increase output by between 1 ened after Finance minister Mthuli Ncube (pictured) yet materialised,” he said. percent and 10 percent and the remaining 10 moved to curtail the Reserve Bank of Zimbabwe (RBZ)’s On the other hand, ZMF vice president percent will increase by more than 20 percent,” powers to issue out Treasury Bills (TBs), separation of Christopher Murove said he was not qualified it said. foreign currency accounts (FCAs) and the introduction to comment on the matter before referring all The producers indicated that on average of the two percent tax. questions to Rushwaya and Takavarasha. they received between 12 percent and 18 per- With bullion deliveries progressively declining from This not only comes as the former football cent of their foreign exchange proceeds during a peak of about four tonnes in August to 1 500 kilo- administrator has requested for nearly $6 mil- 2018 with the remainder liquidated in the grammes in November — as small-scale miners have lion in hard currency and bond notes, but dis- RTGS account at 1:1. been shunning bond note payments and partly because closed that her organisation has acquired 21 li- “This is happening at a time 80 percent of smuggling has re-emerged — this has also affected the cences to buy gold from small-scale producers. their suppliers are no longer accepting RTGS country’s import capacity. In its 2018 state of the industry report, the for settling invoices,” the report noted. Economist John Robertson says a reduced output can Zimbabwe Chamber of Mines said gold was [email protected] only impact negatively on government’s revenues, as the commodity is among the country’s largest foreign currency earners. “If government does not immediately respond to challenges… production will further decline. This is very bad for the economy and will affect earnings at a time we extremely need (the hard cash), which will help in easing the liquidity crisis,” he said. Robertson said if the situation is not corrected, there will be increased smuggling to countries such as South Africa and others, where payment is in relatively stable currencies. “Paying the miners in bond notes will only worsen smuggling, with government losing millions in potential revenue,” he said. This is so not only because the RBZ has been using the yellow metal to raise hard currency for financing critical imports including fuel, electricity and medicines, but the basis on which it was supplementing the country’s foreign currency earnings. But since Ncube’s early September utterances that he was going to remove the surrogate currency and which also stoked wild parallel market rates between the localised payment modes, and the American dollar, small-scale miners — who have been contributing 65 percent-plus of national production — have started rejecting bond notes. This is because Fradreck Kunaka’s FPR has been paying them 30 percent in the export incentive and the rest in hard cash. According to statistics released by the central bank subsidiary, gold deliveries had averaged 3 000 kilo- grammes in the first half of the year before peaking at 3,900 kgs about four months ago and started declining to 3,475 kgs in September — at the back of pronouncements, and policy measures that have undermined bond notes – and other moves that are affecting miners. While organisations such as Henrietta Rushwaya’s Zimbabwe Miners Federation (ZMF) have launched “a desperate bid to rescue the situation” by pleading for a $5,5 million facility to buy the commodity from artisanal operators, the government’s requirement that industry players must “retain 100 percent of their export proceeds in a nostro FCA” has not helped matters. This is so because agents need cash to procure gold from small-scale miners and the RBZ’s new directive that companies can only withdraw $10 000 per day has compounded the situation, analysts say. Even, though, people like Robertson believe the current 55 percent forex retention was still not enough to sustain miners’ operations, critics feel Ncube’s move to raise the threshold has “actually worsened the flow of cash into the formal system or economy”. Dosman Mangisi, the ZMF spokesperson, attributed reduced gold deliveries to restrictions by the RBZ. “Miners are pushing to retain 100 percent of their sales in US dollars, as all mining operations are financed through hard currency. For all mining equipment, manufacturers and suppliers are asking for US dollar and… the money still goes back into the country’s financial system through the value chain,” he said. Mangisi noted that with the prevailing black market rates “payment in bond notes or real time gross settlement system is useless”. “The only thing you can buy using these is fuel, which is not easily available at the moment,” he said, adding operators have suffered losses from downtime and eating up to 60 percent of capacity. “Compounding the situation is the two percent tax on electronic transactions, which has done more harm than good, and resulted in declining sales,” Mangisi said. In the meantime, Rushwaya’s proposal — which is based on promises to deliver 100 kgs of gold per week — has caused anxieties within the sector amid concerns that ZMF was straying from its course of being a representative, and “umbrella body for artisanal mining associations” and not bullion traders or retailers. Amid consternation about the ex-Zimbabwe Football Page 4 |December 6-12 2018 The Financial Gazette National News CHEMONICS INTERNATIONAL GLObAL HEALTH SuppLy CHAIN-pROCuREMENT Zimbabwe’s ANd SuppLy MANAGEMENT ______re-industrialisation background: The Global Health Supply Chain – Procurement and Supply Management Project (GHSC-PSM), Zimbabwe Initiative is a USAID program plan stalls implemented by Chemonics International Inc. The purpose of GHSC-PSM is to ensure uninterrupted supplies of health commodities in support of U.S. John Kachembere government-funded public health initiatives around the world. News Editor APTAINS of industry and analysts say government’s allocation position: eLMIS Project Manager Cof a paltry $47 million to the trou- bled manufacturing sector is a clear in- The overall responsibility of the electronic Logistics Management Information dication it is not committed to re-indus- Systems (eLMIS) Project Manager is to provide technical leadership, trialisation of the country’s struggling economy. management and coordination support to the Ministry of Health and Child The southern African country’s economy went through periods of sustained Care Directorate of Pharmaceutical Services (MOHCC DPS) in the functions industrial decline over the decade to of Project planning, implementation, testing and deployment of the agreed 2008, which was characterised by hy- perinflation and economic meltdown. upon eLMIS software. Many companies collapsed or were shut-down during and after this period and have struggled to reopen due to lack please follow this link for full position details: - of affordable long term capital. Companies that remain operational are battling to recapitalise and acquire modern technologies with average in- https://goo.gl/iMr8Ky dustrial capacity estimated at around 40 percent. Although government has consistent- ly said it is committed to grow the econ- Sifelani Jabangwe omy through re-industrialisation, industry captains and economists believe gone through since the year 2000, which Interested applicants please submit application letter, complete resume, that President Emmerson Mnangagwa’s resulted in de-industrialisation and in- administration is not doing enough to frastructural deficit. and contactable references no later than 5 pm on Thursday, January 3, secure long-term funding and implement “It is this structural decomposition policies that revive industry. that should then inform our priorities 2019 to Operations Director at Email: [email protected]; Only “Government has no plan to revital- and those priorities should in turn be ac- short listed candidates will be notified. ise industry,” said Sylvester Mangani, knowledged as a national cause through Surface Wilmar’s chief executive. the allocative role of the national bud- “Industry is only left to fend for it- get. It is therefore as unfathomable as it self. We didn’t see in the 2019 national is unpalatable, to have an economy that budget how government is going to help is not at war and has one of the lowest industry service its $1 billion debt to for- crime rates in the region allocating $1 eign suppliers,” he added. billion to defence and homeland security In his budget statement, Finance while in the same vein allocating a paltry minister Mthuli Ncube acknowledged $47 million to industry at a time the top that re-industrialising the economy national priorities should be re-industri- would bring prosperity, new jobs and alisation and recapitalisation,” he said. better incomes for all but did not prof- Kombe noted that Ncube allocated fer solutions, despite the country being $40 million for capital expenditure to less industrialised today than it was two the Defence ministry and $35 million to decades ago. the Industry ministry. United States-based economic ana- “We are now buying more weap- lyst Francis Mukora said if Zimbabwe is ons than we are retooling our industry, to achieve industrialisation, the country investing in fear when we should be should follow the Asian industrial mod- investing in the future. One would be el where state-led development policies forgiven to think it’s a budget from the were responsible for lifting the region’s barracks,” he added. economies out of poverty during the late Sifelani Jabangwe, the Confederation 20th century. of Zimbabwe Industries president, said “Governments must lead the way, there was need for government to nego- with a firm hand on the wheel and by tiate for long term loans at concession- setting policy that creates an enabling ary rates from multi-lateral institutions environment for market-based growth aimed at recapitalising the local indus- that creates jobs,” he said. tries. Mukora noted that Ethiopia, Rwan- The African Development Bank da and to a lesser extent Tanzania have (AfDB) said many countries have paid proved adept at navigating the bumpy little attention to structural transforma- path to industrialisation, with a common tion and industrialization, with too few thread among these East African nations resources invested in the economic and being the adoption of policies that target industrial infrastructure, causing dein- and favour their own manufacturing industrialisation in many countries. dustries. The regional lender noted that Zim- “In addition to pursuing what experts babwe’s manufacturing sector, which is call a developmental state model, under small and declining and accounts for 9,7 which governments control, manage and percent of gross domestic product, could regulate economies, they have adopted be improved by developing special eco- investor-friendly policies. And most nomic zones as an engine and pillar for importantly, they have shown a commit- growth and diversification. ment to and ownership of these policies. “Given the right investment climate State control over economic policies ap- and investor interest, several sectors pears to have contributed to less corrup- could be developed, including assem- tion in Ethiopia and Rwanda. bly lines of farm machinery, non-motor “Since 2006, Ethiopia’s manufactur- vehicles, home appliances, and technol- ing sector has expanded by an annual ogy-intensive services – such as supply average of more than 10 percent, albeit value chains and logistics. starting from a very low base, partly be- “Special economic zones also provide cause it has courted foreign investors,” the potential for scaling up to achieve he added. economies of scale and generate links Jullius Kombe, a public policy con- with the domestic economy,” AfDB said sultant, concurred with Mukora and in an economic report titled “Building indicated that it was imperative for a new Zimbabwe: targeted policies for government to first recognize the degen- growth and job creation” released last eration that the country’s economy has month. [email protected] The Financial Gazette December 6-12 2018 | Page 5 Page 6 | December 6-12 2018 The Financial Gazette National News Tough times with austerity in the Invitation to Tender No: Cottco T0030/10/2018 PROVISION OF OUTBOUND midst of poverty

Bright Matibiri 45 percent. The benefits of the additional TRANSPORT SERVICES disposable income will be more than off- FOR IMBABWEANS should brace for set by inflation after the minister increased tough times after Finance minis- excise duty on diesel and petrol by 7 cents THE COTTON COMPANY OF ZIMBABWE Zter Mthuli Ncube introduced a raft and 6,5 cents respectively with effect from of austerity measures to narrow down the December 1, 2018 while changes in tax Tenders are invited from suitably qualified companies for the provision of out- budget deficit and address underlying eco- brackets will only take effect from the 1st of bound transport services. The full details of the tender are available for collection nomic fundamentals while presenting the January 2019. Consumers should also brace 2019 budget a fortnight ago. Ncube howev- for a new round of price increments after the from The Cotton Company of Zimbabwe, 1 Lytton Road, Workington, Ha- er skirted around the key issues of currency minister directed the Zimbabwe Revenue reforms after the disastrous October 1 fiscal Authority to immediately start collecting rare upon payment of a non-refundable amount of $100 to be transferred to the and monetary policy statements triggered a duty on imported goods in foreign currency. following CBZ Account. Tenders must be addressed to The Tender Committee, wave of panic buying while rekindling in- This is again another tacit admission by the flationary pressures and shortages of basic authorities that bond notes and United States The Cotton Company of Zimbabwe, 1 Lytton Road, Workington, Harare and commodities. dollars (USD) are not at par. Austerity measures have become more Spending cuts in government clearly marked TENDER NUMBER COTTCO T0030/10/2018. Bids are to be familiar in recent history as European coun- By the minister’s own admission fiscal dropped off in the Tender box located at the main reception or emailed to ten- tries namely Greece and Portugal have imbalances lie at the core of Zimbabwe’s employed similar tactics to emerge from a ongoing financial and economic crisis. The [email protected] only. Tenders must be received by Monday 17 December debt crisis, kicked off by the global financial government is spending beyond its means as crisis of 2008. While openly admitting that evidenced by the astronomical growth in the 2018, 12pm. Any tenders submitted after the said time and date shall be deemed government was living beyond its means, budget deficit which stood at US$2,7 billion late (whether such lateness is occasioned through the use of vendor’s agents or Ncube’s cost cutting measures are largely (10,9 percent of gross domestic product seen as symbolic as he aims to charm mul- (GDP) up from 2,3 percent in 2015) as at end otherwise) and will not be accepted. tilateral lenders in an effort to get sovereign of September 2018 and projected to reach bailouts. Inconsistencies and contradictions US$2,9 billion (11,8 percent of GDP) by on currency matters punctuated his budget year end after government made a decision ACCOUNT DETAILS statement leaving too many grey areas. The to pay an annual bonus to its blotted civil narratives below aim to breakdown the key service. The deficit is largely being financed BANK CBZ BANK issues enunciated in the 2019 budget state- from the domestic financial market as exter- BRANCH KWAME NKRUMAH ment. nal arrears prevent the country from gaining Foreign Investment and Job creation access to international capital markets. Gov- ACCOUNT NUMBER 001120156860012 It seems foreign investors are still scep- ernment borrowing is largely crowding out ACCOUNT NAME THE COTTON COMPANY OF ZIMBABWE LTD. tical about committing large scale invest- the productive sector in the credit markets ments as the economy is still hounded by resulting in depressed growth in industrial the disastrous and hostile policies of former output. The policy pronouncement by Ncu- president Robert Mugabe particularly the be regarding fiscal consolidation is laudable indigenisation policy, land reform program in particular the proposed cuts to vehicle and legal issues around respect for property entitlements and fuel allocations to senior rights. The minister revealed that in 2018 government officials. It remains to be seen foreign direct investment (FDI) inflows into if there is political will to enforce the fiscal Zimbabwe are projected at only US$470 consolidation measures and trim the civil million while our regional counterparts service to levels consistent with the size of Zambia and Mozambique attracted about the private sector through staff rationalisa- US$1,1 billion and US$2,3 billion respec- tion and weeding out of ghost workers. tively during the same period. Banks profitability under threat The current employment situation in the Ncube announced in his budget state- country is unsustainable and in a move seen ment that he was exploring ways of restruc- as trying to pacify the restive unemployed turing Treasury Bill (TB) maturities in con- youths Ncube committed to create a stable sultation with the market players as a way of and predictable business environment con- restricting the budget deficit to five percent ducive for growth in domestic and foreign of GDP amid revelations that TBs worth We would like to congratulate investment in order to promote inclusive US$2,2 billion are due to mature in 2019. and job creating growth. This move is likely going to be met with The local business environment is hand- resistance by banks which are beginning to Danisa Chinamasa for his achievements. icapped because of a high country risk feel the pain of excessive government bor- profile as evidenced by failure to repatriate rowings due of negative returns from TBs dividends by foreign investors while inter- after the rate of inflation exceeded the effec- MAKOROKOTO, AMHLOPHE! national airlines have resorted to suspending tive yields on the government instruments. local air ticket sales as a result of failure to Many banks are exposed to TBs as they remit about US$200 million in ticket sales were considered to be relatively safe com- proceeds. While the minister committed pared to private sector lending as the ratio of to improving the local investment climate non-performing loans (NPLs) breached the to attract foreign investment, the budget twenty percent mark in 2014 leading to the statement is bereft of guarantees for capi- creation of Zimbabwe Asset Management tal mobility in light of the current account Company as a special purpose vehicle to deficit which increased to US$935,8 million take over NPLs and avert a banking crisis. for the first three quarters of 2018 relative With the prospects of government failing to to US$246 million for the same period in meet contractual obligations on its debt in- 2017. struments the banking sector is exposed and Individual tax reviews its profitability is under severe threat. Zimbabwe has one of the highest tax Budget mum on currency reforms rates in the region with personal income There is a deepening economic crisis in tax rates as high as fifty percent while val- Zimbabwe precipitated by bond notes, the ue added tax is 15 percent. It was against surrogate currency introduced by the central this backdrop that the generality of the hard bank in 2016 purportedly as an incentive for pressed citizens were optimistic that the exporters while easing shortages of USD minister was going to scrape off the contro- cash in the economy. While the bond notes versial two percent transfer tax or at the very remained relatively stable for the first two least revise it downwards. But the minister years of operation they started losing value stuck to his guns while narrowly increasing at an alarming rate after the October 1 poli- Tragic security, we deliver customer focused loss prevention solutions. non-taxable portion of personal income. In cy pronouncements that converted real time Our Services: Armed Security Guards, Cash In Transit, Private Investigations, Guards Training. an effort to increase aggregate demand for gross settlement (RTGS) balances and bond goods and services, the tax-free threshold notes into a quasi-local currency sending Inspired to protect Africa. on personal income was reviewed upwards the economy into a tailspin as consumers from the current US$300 to US$350 while rushed to convert their savings into goods Get in touch with us at: the tax bands from US$351 to US$20,000 before they become worthless. Panic buying 401glengary, Highlands, Harare. were widened and will attract tax rates of up triggered a new wave of price increases and Phone: +263 774 472 392, +263 773 581 444, +263 738 051 058. Email: [email protected] to 40 percent. Incomes beyond US$20 000 shortages of basic commodities. will be taxed at highest marginal tax rate of To Page 30 The Financial Gazette December 6-12 2018 | Page 7 Page 8 | December 6-12 2018 The Financial Gazette Leader Page

News Worth Knowing Where is the President? OR the past year, the mood of most Zimbabweans has dramatically changed from euphoric to hopelessness as a result of worsening eco- Fnomic conditions in the country. In fact, if the truth is to be told, we are now worse off than we were 12 months ago as salaries and savings have been seriously eroded by rising inflation. There are also indications that we are fast headed to a recession in 2019 as official figures show that the economy will only grow by a measly 3,1 percent while inflation is expected to average around 30 percent. And if nothing is done to halt this economic meltdown, we will soon be back to the 2008 hyperinflationary period. As it is, prices of basic commodities continue to shoot through the roof, while companies are closing en masse due to the debilitating foreign currency shortages. As we speak, Sakunda Logistics has bitten the dust and Zimbabwe’s largest flour producer, National Foods, is considering shutting down after failing to navigate the country’s treacherous foreign currency crisis. Most DEJECTED: British tycoon Nicholas van Hoogstraten appears before the Parliamentary Portfolio on miners ― particularly gold miners ― have already hinted that they might Mines and Mining Development in Harare on Monday. The businessman, who holds 31 percent in not continue operations next year if they don’t get a raise in foreign cur- Hwange Colliery Company, is challenging government’s decision to place the company under recon- struction. The insolvent coal producer is struggling to repay its debts, which include $150 million owed rency allocations. to government. Its 2018 half-year financials reflected a net loss of $23 million. Picture by Annie Mpalume The situation is even more critical in other sub-sectors of the economy such as the textile, manufacturing, leather industries, small to medium enterprises and financial services. We have an economy in structural regres- sion, which is beset with unsustainable deficits and debts and is hamstrung by inappropriate and misguided policies. Economic recovery: address What is even more exasperating is President Emmerson Mnangagwa’s conspicuous silence and lack of action at a time when the economy is clearly burning. Although Finance minister Mthuli Ncube has tried to stand in for his the entrepreneurial factor boss by announcing “austerity for prosperity” measures, Zimbabweans are slowly becoming agitated by the President’s continued absence and silence IMBABWE urgently needs SME sector with a different model. training people for business manage- when the economy is headed south. more entrepreneurs of the There is a current worldwide belief ment under the term “entrepreneur- Mnangagwa should at least address the nation, not only as a way to highest possible calibre if it is that SMEs are the engines of eco- ship.” This shift will have a dramatic calm jittery investors, but also to show the citizens that he has solutions to Z to successfully come out of the woods nomic growth and that they have impact on economic performance. the economic challenges we are facing. Unless, of course, the President has and cruise to economic growth and the potential to grow into large cor- Very powerful models for training nothing to say and is afraid that his economic policies have failed! In that prosperity. Entrepreneurs, entrepre- porates. While SMEs are crucial, the and developing entrepreneurs exist case, the honourable thing would be to admit failure and pass on the baton. neurial behaviour and entrepreneur- definition of an SME also determines that by far outweigh most of the ex- We are already halfway through the festive season, and it is worrying ship are the cutting edge in econom- the degree and importance to the isting curricula in terms of delivering that no retail shops or supermarkets are advertising promotions for the ics. Without vibrant entrepreneurship economy. For example, an American high quality entrepreneurs. holidays. The situation is very telling ― there is nothing to celebrate in and a strong system for managing the SME is by far bigger than a Zimba- In Zimbabwe, real entrepreneur- Zimbabwe. country’s entrepreneurship, there can bwean SME and their relative impact ship took a nosedive largely due In fact, the current situation ― increased unemployment, a growing in- be no economic success. on their economies are different. To to a combination of lack of support formal economy, high levels of emigration, especially skills ― is a recipe for Zimbabwe, or any country seek- the contrary, one can successfully ar- for entrepreneurial ventures and ac- socio-political instability. And if a political solution is not found soon, things ing a return to prosperity and growth gue, on the basis of observation that tivities and the fall in the relative might get worse as we get into the New Year. for that matter cannot do so without SMEs, though a crucial part of an financial rewards for living an entre- As such, there is need for a different mindset, not just for the politicians, a major shift in the quality, quantum economy, will always be SMEs; they preneurial life. Real entrepreneurship but also businesspeople who have been far too willing to ignore this govern- and form of entrepreneurial capital don’t grow into large enterprises. needs strong financial support and ment’s track record of failure and too prone to see solutions in reprising and its deployment. Evidence is ev- However, among the so-called mostly from people comfortable with the past. erywhere, including the rise of the SMEs are also high potential large risk. Second, many people venture America’s economy from the ashes scale entrepreneurs who, with target- into entrepreneurial life due to the Southern Africa’s Leading Business and Financial Newspaper of its worst depression in the 1900s. ed support, can evolve and start big- higher rewards. Established 1969 South Korea also transformed itself ger and more successful enterprises. In Zimbabwe, many people, some Publisher: Modus Media from a donor recipient to a donor In other words, the SME sector is a who have demonstrable high entre- country on the back of a major en- mixed bag and tremendous value can preneurial acumen are opting for EDITORIAL MARKETING trepreneurial revolution. The same be derived by sorting out. full time executive positions largely Editor-In-Chief & Chief Operating Ofcer General Manager - Marketing was for Japan’s rise from the woes Zimbabwe needs to put SME because of low incentives in entre- Christopher Goko: gok .zw .zw of the two horror nuclear wars with players through an entrepreneurial preneurial life. Government support Brand Executive - Advertising Deputy Editor America. filter to separate the players accord- is extremely important in entrepre- .zw Edwin Vengesa: evengesa@ngaz.co.zw ing to their potential. The country can neurship, the reason why America Senior Sales Executives choose a three-band model of high dominates the world in entrepreneur- Managing Editor Christobel Washaya: cwashay .zw Open Forum growth potential entrepreneurs, me- ial activity. .zw dium growth potential entrepreneurs In terms of igniting entrepre- .zw Senior Assistant Editor and zero growth potential business neurship, the country has two broad Chris Gumunyu: chris@ngaz.co.zw with Sales Representatives - Harare owners. The country can then provide choices depending on the general News Editor .zw targeted entrepreneurial attention and economic recovery model govern- John K .zw Frank Nyandoro: fny .zw Simon Bere Edreck: emudzinganyama@ngaz.co.zw support to the three categories. This ment has chosen. The first model is Markets Editor support must include specialised a government-driven recovery model Sales Representative - Bulawayo Ndakaziv .zw Clever Pedzisai: [email protected] To pull the feat of turning Zim- training and development for the in which the state is responsible for babwe into a middle income status medium and high growth potential the actual economic activity and proj- Companies Editor Brand Executive - Events Shame Makoshori: smak .zw Kerina Chizemo: kchizemo@ngaz.co.zw by 2030 or whatever other year is entrepreneurs and general business ects with some limited support from Brand Executive - Subscriptions feasible, the country needs a massive skills training and development for the private sector. The second model Online Editor upgrade or even a complete overhaul the low growth potential SMEs. is where the private sector takes the Paul Nyakazeya: pnyakazey .zw Tatenda Taka: ttaka@ngaz.co.zw of its entrepreneurial theory, philos- Zimbabwe’s entrepreneurship lead in economic recovery activities Subscriptions Representatives Features Editor Ronald Madiviko: rmadivik .zw ophy, teaching and practice so that training curricula also badly and ur- with strong support from government .zw Elizabeth Nyamaruze: eny .zw it has enough of the highest quality, gently needs a serious review as a in terms of policies, resource mobil- Production Supervisor Chief Executive Ofcer active entrepreneurial capital. The first step towards either a massive isation and ensuring the critical eco- Kudzai Rushambwa: krushambwa@ngaz.co.zw .zw country must also, with a fierce sense upgrade or total replacement with a nomic infrastructure is functional and of urgency, reignite the entrepre- more effective curriculum. This must adequate. In addition there are pos-

Bulawayo neurial spirit which has since almost be accompanied by a shift in theory sible combinations of the two. The Editorial, Advertising & Circulation 1st Floor, Princess Court, completely disappeared, leaving it in from viewing entrepreneurship as bottom line is, there is no success in 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. a long entrepreneurial winter. One a means to self-reliance through in- economic recovery without a mas- Tel: +263-242-781 572 Tel: (029)75873/75270 can argue, and justifiably so, that come generating projects to viewing sive if not revolutionary ignition of Website: www Distributed by: ANZ the quality and quantum of entre- it as a very high level undertaking to the entrepreneurial spirit and a return preneurial capital currently deployed change the world. It also requires a to a strong entrepreneurial culture for VOLUNTARY MEDIA COUNCIL OF ZIMBABWE e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced falls far short of what is required to change from treating business skills Zimbabwe. news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of create traction away from the current and entrepreneurial skills as one and l Bere is the founding chairper- Zimbabwe at: economic status towards a middle in- the same. This distinction between son of the Strategy Society of Zim- No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz come nation. entrepreneurship and business man- babwe and writes in his personal Zimbabwe First, the country must revisit the agement will avoid the mistake of capacity. The Financial Gazette December 6-12 2018 | Page 9 Founding Father’s Memoirs What a sad week it has been, comrades HIS, for me, has been one of my to real prosperity; not through austerity mented ESAP after George’s advice, but this country could become great through ing Zimbabwe into the greatest country saddest weeks in years. They re- measures of course. But, as you all know, as you all well know, some people within agriculture. As I am addressing you right on the African continent and the world Tmind me of the days I lost my be- later on spoilers came along and sowed my government were so lazy and greedy now National Foods, one of the biggest was thwarted. History will judge me for loved Sally and dear mother Bona (May seeds of hatred between us. His son, who that they started looting the precious re- legacies I left you, is grinding to a halt be- the great things I did. Can any of you their souls indeed rest in eternal peace.) became the 43rd US president, started sources of this country for selfish gain cause it has no foreign currency to import honestly look me in the eye and tell me I was really pained to learn of the pass- calling me all sorts of names such as a instead of using them to raise the country wheat. Why are you people importing that I destroyed this country? Did I loot ing on of my good old friends George W. “discredited dictator” and so on. I forgave to greater heights. By the time George’s wheat when I gave you all that land? Do the Chiadzwa diamonds? Did I turn those Bush and Prof Makurane. It was such a the over enthusiastic young man on ac- son became president of that great na- you honestly believe that at this rate you lush farms into useless grasslands? A big big blow which has robbed me of the few count of the deep relationship I had with tion called America, I was in the middle will have bread on your tables this Christ- NO! Those who did that are still with people I still regarded as true friends. You his father because I knew that this was the of trying to make you people understand mas? I doubt it, and that is why I have you. I am sure you now understand what know, I came a very long way with this work of enemies. Nothing really stood where our strength as a nation lay, which decided to have my Christmas break in I was trying to achieve and the death of American cowboy, George. And we were between me and George senior. His death was the land that many of us perished the Far East, far, far away from this mad- this great man George reminds me and us almost age mates, you know. Far from brings back nostalgic memories, which I for. I initiated a land reform programme ness. So there you have it, comrades, you of the road I was trying to take for this what you have been told and come to am very sure you are now familiar with that empowered you people to get back can see for yourselves that I did what I country. George, you were a great person believe, me and this American were very following my unceremonious removal the land that was robbed from your fore- did because I believed I could turn this who helped mould me into a leader who close and used to share notes as leaders. from power. George was such a great fathers. I gave people free inputs as well country into a great nation like the Amer- believed in greatness. May your soul rest I remember very well our very fruitful leader who taught me to believe in great as free diesel, ploughs and tractors, but ica George showed me. America did not in eternal peace. Asante Sana! meeting in July 1991 in Washington DC. things. In George, I learnt how to lead a everything came to naught after enemies become great through the kind of looting Kindest Regards George also popped over here for a visit nation into greatness, which was what I influenced some of you to think that what of our diamonds that you all saw. It be- and we became bosom buddies at a time was busy doing before some jealous folk I was doing was madness. I tried and dis- came great by cherishing whatever it has. Your One and Only Leader when I was busy steering this country decided to spoil everything. We imple- mally failed to drill it into your heads that But, as you all know, my dream of turn- ME

. . . . AND NOW THE NOTEBOOK

Aliens consider ourselves sitting ducks waiting for our turn eliminating corruption. We were just imagining that coming late, but the secretary interrupted before he HAT missed opportunity? We hear some to be shot at for target practice. if this actually happened, what will become of the could finish and ushered him to the board room. The among us yapping about the fact that the Worried? law recently announced by government that move- secretary said: “I apologise, Mr Peter, for keeping you Wjust concluded inquiry into the shooting of ONESTLY we have too many jokers among ment of all government vehicles would henceforth be waiting since 10am. We actually heard when the bell innocent people on August 1, 2018 was a missed op- us. Some of them come in the form and shape monitored and pool vehicles would be parked at gov- rang at 10am, but we were held up in a meeting with portunity. Were people really and seriously thinking Hof commercial sharks in the grain sector. They ernment offices or police stations during weekends. our company suppliers. that the commission of inquiry into the fatal shooting are telling us that they are “worried by the speculative We sincerely believe that any promise of changes in “However, we have sat since 8am to deliberate on of nearly a dozen of those poor and innocent Harar- pricing regime that has seen prices of .... staple goods government in terms of fighting corruption and sleaze your job specification, your office and salary.” ians was a chance for the owners of the country to surge within some quarters in the distribution chain”. is just bar talk. Mr Peter was baffled and said: “Madam, I haven’t clear and redeem their soiled reputation? What a cruel Fine and dandy! In the very same breath, these BioBonuses been interviewed yet.” The MD answered him and joke? self-proclaimed knights in shining armour endorse the E were just wondering whether it was not said: “We decided not to conduct the interview at least These guys are masters at making blunder after very same speculative prices by officially publishing possible for this very expeditious govern- to save time and also save the interviewees money blunder and they don't even realise the folly of their them. For instance, white and par boiled rice (whose Wment to do us a very tiny, tiny-winy favour on transport. So we looked at the papers for the most ways. In fact, the concept of clearing one's name for prices have never been the same in the past) have now by paying the promised bonuses using the biometric appropriate person we wanted and we opted for you. them is completely different from the whole humani- been approved to cost twice, if not thrice, what they system whereby one physically present themselves Also, we tested your patience this morning by keep- ty's thinking. What we are saying is that the commis- used to just a couple of months ago. The wholesale at the Public Service Commission with their IDs, ing you waiting intentionally for two hours. That was sion was set up to prove to the world that they can do and retail prices of par boiled and white rice are now birth certificates and proof of being human beings to part of your interview. You won't be disappointed. whatever they want and get away with it because they officially at $6,61 and $7,49, respectively. These used get paid. The incentive to do this is that the bonuses You’ll be shown your office, your secretary and the are infallible; they are untouchable. to cost less than $3 on average. The published prices would be paid in US dollars. By the way, did our very driver assigned to drive your company vehicle. You’ll The conclusion of this inquiry, which by the way are exactly the same as those that these jokers are call- capable government meet its deadline of end of No- be on probation for two years.” tells us pointedly that it relied on autopsy evidence ing “speculative”. We are just bamboozled as to why vember 2018 to pay the bonuses? He got the job!!! and threw away all the evidence of what actually these guys went through the trouble of rubber-stamp- Short story On his way out, his phone rang and it was the transpired on the streets, is that those innocent souls ing these “speculative” prices. R Peter had a job interview to attend at wife. She said: “Honey, I was delivered of a bouncing were killed by people from outer space called aliens. Wow! 10am, but his wife developed complica- baby boy.” It was their fifth child and the only male All those pictures and videos taken by eyewitnesses OING at 1 500, yes 1 500, any challengers Mtions at 9am. He decided to take the wife to child. He immediately named the child “Miracle”. on August 1, 2018 were fiction created on the inter- on the 1 500? No challengers, it's sold for $1 hospital and leave for the interview thereafter, but on He got a double miracle the same day. All the net, folks. And you better start believing the story that G500. Some among us are really lucky. Life for their way, the taxi broke down. It was 10:30am before disappointments turned out to favour him. God posi- aliens paid us a visit on August 1 and butchered our some of us is just too, too good to be true, we tell you. he could get another taxi. tioned the mail delivery man to ring the bell at 10am. loved ones in broad daylight because that is what hap- A 2016 Isuzu KB250 vehicle with an original book He arrived at the hospital at 11am, dropped off his God also held them up in the meeting until Mr pened. And all those who pointed fingers at our rulers value of $45 632 was recently sold to some very ex- wife and used the same taxi to go for the interview. Peter arrived. will be in one kind of trouble or another very soon, tra lucky chap in the public service. Using the dom- He arrived at 12 noon (two hours late). Note: You might be held up by issues in your life mark my words. With some among our rulers hav- inating black market rates (because the official rate He rang the bell, but no one opened the door. and hope might be diminishing and you think the ing declared themselves demi-gods of some kind and is non-existent), the car was sold for US$500. The Meanwhile, earlier at 10am, the company mail de- chance is gone. But you know what? God’s waiting playing God himself, it is only a matter of time. With car, we have heard, is in crystal mint condition and livery man had rung the bell, but no one opened the for you to release His favour. some of our owners convinced that they are gods ca- was never accident damaged. This is currently hap- door too. When the door was finally opened, Mr Peter So don’t go back along the way. Don’t quit. Don’t pable of determining our destinies, we might as well pening in a government purporting to be dedicated to said: “I’m sorry, I came ...” as he tried to apologise for be upset by what you face along the way. Are Zimbabweans losing hope? HE London Guardian of Novem- As Zimbabweans begin to appre- posal to open a coal mine and a thermal deals, recover assets in exchange for go- ber 22, 2018 is reported to have ciate the depth of this corruption, they power station. In December of that year, ing free and investigating accomplices. Tsold out on the strength of its also realise that even with the best of in- former South African president Thabo Without the benefit of such a court, we headline: Mugabe resignation ushers tentions and the severest chemotherapy Mbeki was a guest of Mugabe. Dan- will never know who were the behind- in new era for Zimbabwe. Did we cele- available, President Emmerson Mnan- gote and Mbeki were told by Mugabe’s the-scenes beneficiaries of corruption. brate too early? That is the question. gagwa cannot defenestrate the maladies officials that: “If you want to do busi- Secondly, the Mutare-Harare road That was very courageous as the in less than 10 years. Mugabe drilled ness, you bring $5 million and from that contract was awarded to South Afri- winds of change had not settled yet. corruption into Zimbabweans heads so (money) we take $1 million that we will cans, who recruited Zimbabwean engi- “My daughter will grow up in a better thoroughly that if three of them gather give to the president (Mugabe).” neers and earthmovers to do the work. Zimbabwe,” Mildred Tadiwa gushed in under a sycamore tree (mukuyu), they Dangote’s spokesperson said the External contracts are therefore a ruse to a combination of euphoria and ecstasy. are contemplating defrauding the state. first question he was asked was what externalise funds. I was one of those who celebrated With such haemorrhages, any gov- percentage he (Dangote) was willing to Old habits die hard. The president though I was reminded by my kill-joy ernment is bound to go broke in no LETTER FROM AMERICA set aside for the gate keeper. assumes the chancellorships of more niece that African presidents are like time at all. by Ken Mufuka Once upon a time, Dr Cuthbert than 10 universities. That is a silly idea. African boyfriends, the second one is A few examples will suffice. For- Dube, then chief executive at the Pre- We need not tarry further. worse than the first. Nevertheless, I still mer Minister Supa Mandiwanzira was mier Services Medical Aid Society Excessive travel abroad is a Mugabe dreamed that now is the time to return to in charge of information technology There is no solar farm to show. (PSMAS), received a monthly salary of idea, also intended to externalise reve- my native land. (ICT). He stands accused of involve- Former Harare town clerk Tendayi $500 000 when lower end workers were nues. Today, I and my white brother, Ed- ment in the award of a $5 million con- Mahachi is in a similar predicament. going for months without wages. Tafadzwa Musarara, president of die Cross, are part of the select few who tract to Megawatt, a company in which Having favoured himself, so the prose- When I pointed out this anomaly to the Grain Millers Association, joined a hold hope against hope that maybe it he had an interest. As I shall illustrate, cution is alleging, by awarding the lu- my friend, an accountant, I got the re- 30-member Zimbabwean delegation to will be alright ― a Negro song. But I do not be blinded by the $5 million crative Harare Airport Road contract to tort; “Kenny, don’t be stupid.” Belgium for a conference on diamonds. understand why my brothers and per- award. The issue is whether, having a company that did not at the time exist, It stretches the imagination to be- The United Arab Emirates, which con- haps the feisty sister Mildred are now awarded this company such a deal, did he then proceeded to hook up with a for- lieve that Dube was the only beneficia- ducts $6 billion business, compared to reconsidering their dreams. he do the work to the satisfaction of Ne- eign company in East Europe. The cost ry of this largesse. Such huge sums of Zimbabwe’s $300 million per year, sent Mugabe corrupted everybody tOne? to Harare City was $80 million. money cannot be paid out without the three envoys. While the learned brothers, Profes- Former Minister Samuel Undenge It appears that the Harare City Coun- knowledge of the chairman of the board. ZANU-PF should adopt a new con- sor Tony Hawkins and Alex Magaisa was charged, convicted and sentenced cil had to hire two more companies be- Dube’s case shows that the whole cept of humility. The bollar has never have explained the death of hope as a re- for authorising payment of $5 million fore work was completed, 10 years be- PSMAS outfit was rotten to the core. been of equal value to the US dollar. sult of the complex interaction of histor- to Wicknell Chivayo, a solar energy en- hind schedule, at thrice the original cost. This applies to Mahachi, as well as to The two percent tax is extortionist. ical and economic factors, Sir Garfield trepreneur. The issue, as in Mandiwan- The $80 million was not recovered. the cases of Dangote and Chivayo. Fullstop. Todd’s observation 30 years ago is the zira’s case, Chivayo is in fact suing gov- In February 2012, Nigerian industri- There is a need for a Star Chamber The $700 traffic fine is an entice- simplest. Robert Mugabe had corrupted ernment for interruption of his research alist Aliko Dangote was a guest of then (Court), approved by parliament, given ment to the motorist to offer the police everybody. into solar energy. president Robert Mugabe. He had a pro- wide powers of sentencing, to make plea a bribe. [email protected] Page 10 | December 6-12 2018 The Financial Gazette

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5 Tips for managing small business finances anaging finances can be a challenge crucial for business people to get a basic un- • Assess all your business expenses be- ventory. Spending on business luxuries will be an un- for any small business owner. Often derstanding of how to manage the finances of cause these can add up quickly. Regular re- necessarily large cost with little return. It also sets a bad Mentrepreneurs lack the knowledge their enterprises. Mastering financial manage- views will show you where, how often and precedent to employees. Be mindful of spending before and experience needed. The result is poor ment will ensure that your money strengthens how much of your money is spent. any actual revenue comes in; contain your costs as much financial management that can lead to inade- and grows your business. • Don’t overspend by going big prema- as possible. quate cash flows, debt escalation and failure turely. Keep your business needs modest for • Focus on the Return on Investment. Know where of the business. With so much at stake, it is 1. Keep Track of Costs things like marketing, travel, vehicles and in- you are spending your money and understand how that investment is paying off. If certain expenditure isn’t yielding desired results, cut back and spend a bit more on the initiatives that do work for your business.

2. Set Up Good Financial Systems • Send out invoices as soon as possible after providing goods or services. Set up short payment terms to make sure that payments are not forgotten or lost in the process. Too much cash tied up in unpaid invoices can lead to cash flow problems, which is a leading cause of business failure. • Keep the business bank account/s separate from your personal bank account/s. Mixing these funds and related transactions is a recipe for unexplained financial losses and tax headaches. Maintaining a business bank account will help you to keep track of your expenses, whilst being able to gauge profitability easier. • Establishing internal financial protocols will go a long way in protecting the finances of your business. It can also mitigate fraud or risk because unscrupulous employees won’t take advantage of weak internal controls. • Make sure you pay yourself. This doesn’t mean sucking up all the profit the moment you make it. Set your salary as low as possible; 10% of earnings is standard practice.

3. Monitor your Books • Set aside time periodically to review and monitor your books. This obvious but important practice, will make you more familiar with the finances of your business. When monitoring, do bank reconciliations and look at outstanding invoices. Doing this will help you identify wasteful spending and even embezzlement. • Properly manage your accounting. It is crucial that business income and costs are tracked. You can employ a bookkeeper to assist but this area remains your responsibility.

4. Have Enough Capital • It is immensely difficult for most entrepreneurs to get their enterprises through the start-up phase. The cause is usually inadequate capital. When you are planning your business, raise funds in the amount you will need to cover all the first three months’ business expenses. In addition to this money, save up for another three month’s expenses. • Don’t wait until your business is in financial trouble before applying for a business loan or other credit. At that point, your shaky business is least likely to receive financing. Thus, apply for loans when your financials are in a good state.

5. Plan Ahead • Do financial projections, based on your main business plan. Forecasting will help you to anticipate and address possible future obstacles for your business. • Take care when expanding your business. Do so steadily and wisely. If you are too quick to push large amounts of money into drastic expansion projects, the consequences can be disastrous. • Look into growth opportunities which will allow your business to move in a healthy financial direction. This will involve understanding your operating environment. Examine such issues as procurement costs and monitoring of prices, especially when conditions are un- stable. You can then craft strategies accordingly, like hedging revenues against inflation. • Set aside money and invest it in the future of your business. This will create more value, than if you just spend all your profits on personal matters. ■ December 6-12 2018 Page 11 Companies&Markets The Financial Gazette ZIMPLATS COMMITS THIRD OF BUDGET TO AGRIC — 12 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) ZIMPLATS has allocated a third of its annual budget to projects aimed at promoting agricultural activities across the country, an official has disclosed. 0,16% 1,12% 0057% 0,03% 0,11% 10,6219 12,34 77,92 10 770,02 1 156,30

... as fresh company closures loom

Shame Makoshori Companies Editor

FRESH round of company failures looms in Zim- babwe, unless urgent steps are taken to arrest the Adeepening economic crisis, economist and businessman Eddie Cross has warned. The ex-Bulawayo South legislator hit out at laxity when it comes to punishing officials behind vice and high level mismanagement, which has affected the economy. Cross told an Institute of Chartered Accountants of Zimbabwe’s conference that the country should implement radical ways of dealing with high level government delinquency. Construction firms have suspended projects owing to the disparities between the values of real time gross settlement-generated cash and He also said the prolonged currency volatility was the US dollar. exerting pressure on the frail economy, which could further harm struggling firms and ground many of them. The highlight of firm failures was during the post hyperinflationary era, when over 4 500 companies closed, sending 55 000 workers out of jobs, according the Fi- nance ministry. Hundreds more have closed since then, affecting domestic production. Construction firms At the centre of the deteriorating situation is a foreign currency retention regime that has grounded some mines, forex shortages, bottlenecks in fuel shipments and a huge current account deficit. Finance minister Mthuli Ncube last month intervened with measures to arrest the turmoil. suspend projects His measures included a two percent charge on electronic transaction, which has triggered an outcry. But Cross said these measures were necessary to avoid the looming corporate failures. “It (the tax) is heavy but what does he do?” Cross Nelson Gahadza “Most members have suspended,” he said. As a result, he said, the indus- asked. Business Reporter ed projects due to the RTGS dis- Last month, the Reserve Bank try is now focusing more on insur- “If he did not do that we would be dead. If we con- parities in the market and the in- of Zimbabwe (RBZ) established a ance bonds which do not require tinue like this we are going to have widespread company HE Construction Industry dustry is seized with the four tier $50 million construction industry financial commitment. failures. They are going to close in the same way they Federation of Zimbabwe pricing system (which has made) finance facility, meant for re-tool- A research firm, BMI, had did in 2008. Let’s not dress it up. We are facing a ca- T(CIFOZ) has said most con- it difficult to come up with price ing and working capital require- earlier this year projected that tastrophe. The informal sector is growing again. It had struction firms have suspended projections,” he said. ments to be disbursed through the country’s construction sector been formalised during GNU (government of national projects owing to the disparities Chinogurei, who was speaking banks at a 10 percent interest rate. would this year to register 4,5 per- unity). It was one of the remarkable achievements of the between the values of real time at a procurement indaba in Harare, But Chinogurei believes the cent growth from negative levels GNU,” said Cross. gross settlement (RTGS)-generat- said the industry requires monthly $50 million facility from the cen- in the past year on the back of He said government must stop using bond notes and ed cash and the United States (US) foreign currency allocation of at tral bank is not enough, but a good revival of projects that had been align its budget deficit to single digit levels. dollar. least $1,5 million in order to sus- starting point. stalled due to limited foreign cur- “What the hell is the bond note? What were they Harold Chinogurei, the CIFOZ tain operations. The president noted that the rency availability and high pro- thinking when they introduced it? Today, we are victims president, said the four tier pricing “The industry imports equip- industry has been financing vari- duction costs. of this malpractice. In Germany, the budget deficit is system currently obtaining in the ment as well as conduct other ous projects through construction Over the last decade, most con- 0,5 percent and if it goes above that that the minister economy was unsustainable for maintenance works financed bonds, but it has become difficult struction companies relocated to is fired. Italy is being threatened with sanctions in the the sector, which requires signifi- through the US dollar and in due to the requirement for finan- other countries while some folded EU because of 3,8 percent deficit, not 38 percent. Fiscal cant amounts of foreign currency return clients are paying using cial commitments equivalent to operations due to limited opportu- discipline is at the core of our recovery. Ncube had to put as working capital. RTGS, which are highly discount- the bond. nities. [email protected] the two percent tax because he had to stop the bleeding,” Page 12 | December 6-12 2018 The Financial Gazette Companies & Markets Zimplats commits third of budget to agric

Nelson Gahadza breeds in the Mhondoro-Ngezi area to im- Under the programme, Zimplats has adopted three Business Reporter prove herd genetics and quality. provinces namely Mash West, Matabeleland North and “Our first project was on conservation South. IMPLATS has allocated a third of farming and we had about 100 participants In light of the outbreak of livestock diseases, Zim- its annual budget to projects aimed but 20 left because you know conservation plats has also assisted in acquiring dipping chemicals Zat promoting agricultural activities farming is challenging. However, we contin- and other vaccines. across the country, an official has disclosed. ued with the remaining 80,” she said. The company has also supported Agritex officers in Busi Chindove (pictured), the group’s She added that the main goal was to en- the district through provision of motorbikes for them corporate services manager, said the coun- sure knowledge transfer and spent about $1 to carry out their functions. try’s largest platinum producer is involved in million on the project over three years. Chindove said the company was working on a various agro projects as part of its socio-eco- Chindove said after exiting the project massive irrigation project that will draw water from nomic development efforts. three years later, farmers were able to con- Chitsuwa dam and dozens of families are expected to “The programmes are mainly targeted at tinue earning a living from the skills they benefit. ensuring skills transfer, increasing house- had received. “We are currently undertaking feasibility studies hold food security and incomes,” she said. Chindove said currently Zimplats along- on an irrigation scheme we have to set up. We have Chindove said some of the projects Zim- side other mining companies has partnered engaged Chibero College and Chinhoyi University of plats has undertaken in recent years include with the Zimbabwe Agriculture Society Technology and we shall be drawing water from Chit- an extensive conservation farming pro- (ZAS) to artificially inseminate 10 000 cattle suwa dam and we believe this will be a massive project gramme, where the group spent $1 million in communal areas as part of efforts to revi- that will also bolster household incomes,” she said. in a project that involved provision of prime talize livestock in the country. [email protected]

Ecocash has integrated a foreign currency account wallet onto its platform. FCA wallet for Ecocash

Nelson Gahadza Business Reporter

OBILE money transfer service Ecocash has integrated a foreign currency account (FCA) Mwallet onto its platform, in line with Zimba- bwe’s monetary regulations. Last month, Reserve Bank of Zimbabwe (RBZ) gov- ernor John Mangudya ordered the creation of FCA accounts for Nostros, separating them from RTGS funds, in terms of Section 46 of the Reserve Bank of Zimbabwe Act (Chapter 22:15) and Exchange Control Directive RT120/2018. “The introduction of the FCA wallet provides an opportunity for customers to preserve value, while enjoy- ing the convenience,” Eddie Chibi, the Cassava Smart- ech chief executive, said. He said the FCA wallet will exist alongside the conventional wallet as an option on the Ecocash menu. In October, banks were directed to effectively opera- tionalize the ring-fencing policy on Nostro accounts by separating FCAs into two categories — Nostro FCAs and RTGS FCAs. Government believes the introduction of separate foreign currency accounts for nostro and RTGS funds will strengthen the multi-currency system. Meanwhile, Econet Wireless, shareholders of Cassa- va SmartTech, has since advised on plans to unbundle the latter and separately list it on the Zimbabwe Stock Exchange (ZSE) on December 14, 2018. Apart from Ecocash, other entities under Cassava include Steward Bank, Ecosure, Ecofarmer, Edutech, HealthTech and Vaya, the ride hailing service. The unbundling of the fintech unit, was passed at an Extra-Ordinary General Meeting last week. The separation gives the market an opportunity to value the financial technology business separately from the MNO business. Ecocash was commissioned in 2011 and has over the past six years grown to be the market leader in the mobile financial services sector in Zimbabwe. As of May this year, the company indicated that it had reached eight million customers and over 50 000 agents across the country. [email protected] The Financial Gazette December 6-12 2018 | Page 13 Page 14 | December 6-12 2018 The Financial Gazette Companies & Markets Hippo Valley banks on Mthuli

Adelaide Moyo percent amidst the acute shortage of foreign cur- year), a 12 percent increase in domestic demand for sugar Business Reporter rency, the business environment will remain chal- and competitive price realisations. lenging in the short to medium term. “The benefits of these positive factors were however par- IPPO Valley Estates (Hippo), a unit of “Expectations of a positive turnaround will tially negated by inflationary pressures fuelled by shortag- South African sugar processor Tongaat depend largely on the successful implementa- es of foreign currency and speculative pricing activities by HHulett, says expectations of a positive tion of the government’s TSP (October 2018 to suppliers of production inputs,” Marokane said. turnaround in the business environment will December 2020) and commitment to good gov- Sugar production during the six months ended Septem- largely depend on the successful implementa- ernance in both public and private sectors,” Ma- ber 30, 2018 increased nine percent to 153 343 tonnes from tion of the Transitional Stabilisation Programme rokane said. 140 174 tonnes the previous comparable period on the back (TSP). Tongaat Hulett’s sugar operations in Zimba- of improved company yields averaging 115 tonnes cane per The blueprint, which was announced in Oc- bwe comprises the wholly owned Triangle Sugar hectare. tober, forms the foundation on which Finance operation and its 50,3 percent holding in Hippo. This is higher compared to the 82 tonnes achieved in the minister Mthuli Ncube (pictured) proposes cuts Profit for the period was up at $7 million previous comparable period, attributed to improved avail- on public spending, including on foreign travel, during the six months ended September 30, 2018 ability of irrigation water, sustained focus on variety optimi- wages, car costs and the number of foreign mis- from $5,623 million reported in previous compa- sation and best farming practise. sions. rable period. Total cane deliveries to the mill increased 11 percent to There is also a drive to broaden revenue. Revenue was up 29 percent to $93,212 mil- 1,204 million tonnes from 1,081 million tonnes reported in Hippo chairman Dan Marokane said with the lion during the review period due to increased the previous comparable period. annual inflation rate for October 2018 at 20,85 sugar production (13 169 tonnes more than prior [email protected] Coca Cola readies for festive season

Adelaide Moyo Business Reporter

EVERAGES giant, The Coca Cola Company (TCCC), says it is in consultations with the Bcentral bank over foreign currency allocations for the importation of inputs to boost stocks for the festive season. TCCC country manager, Nomathemba Halimana, told The Financial Gazette that they depend on imported raw materials, which require foreign currency. The country is currently grappling with acute foreign currency shortages, which have affected the manufacturing and mining sectors, the backbone of the country’s economy. “The support that we have been getting from government is quite significant that is why you continue to see our products still available in the market place. We are in continuous engagements with government to ensure that we have enough critical raw materials to boost us for the festive season,” she said. In the past few weeks, soft drinks from TCCC have been in short supply on the market. “Most of our raw materials in terms of packaging material for example rely on foreign currency, but because of the challenges that the country has been facing especially right now, we are not able to get all the requirements of packaging material, the key raw materials that we need,” Halimana said. Delta Corporation, Schweppes and Mutare Bottling Company hold franchises to produce TCCC brands locally. Delta requires over $2 million in foreign currency weekly for its operations. Although Schweppes’ export volumes and revenues have grown appreciably to approximately $750,000 monthly, these are still inadequate to meet monthly imported raw material requirements of $2,5 million for the beverages business. Despite the foreign currency shortages, TCCC has managed to maintain its market share in the country. TCCC is currently in talks with Delta to terminate a bottlers’ agreement with Delta’s subsidiary, Delta Sparkling Beverages, and associate Schweppes Hold- ings. Two years ago, TCCC issued a notice of intent to terminate the agreement following the merger of AB InBev (ABI) and SABMiller Plc and the subsequent agreement in principle reached between TCCC and ABI to explore options to restructure the bottling operations in a number of countries, including Zimbabwe. The country’s largest beverages maker said discussions amongst the parties — Delta, TCCC and ABI are ongoing. Ealier this year, TCCC promised to invest $65 million in the country over the next three years. [email protected] The Financial Gazette December 6-12 2018 | Page 15

Companies & Markets Econet’s Cassava to list on ZSE Omega Ukama shareholders dated November 8, 2018. Business Reporter “The proposed demerger will enable investors to separately hold investments in businesses with different invest- ASSAVA Smartech (Cassava) will next week be- ment characteristics thereby enabling them to select invest- come Africa’s first technology company to list after ments which best suit their investment strategies and risk CEconet Wireless Zimbabwe (Econet) shareholders profiles,” read the circular. approved the firm’s spin off. “This will enable the exploitation of immense opportu- This comes as Kenya’s Safaricom has been consider- nities in Cassava’s way coupled with consolidation of existing weaning off its mobile money platform, M-PESA, for ing businesses,” Equity Axis said in a comment published years, but is yet to do so. recently. Econet shareholders last Thursday voted in favour of a Meanwhile, Econet has seen 31 percent dip to its share proposed deconsolidation of Cassava operations from the price since mid-November to $1,7648 as of the end of trad- group, paving way for a separate listing on the Zimbabwe ing on Friday as the market re-evaluated the company in Stock Exchange (ZSE). light of the restructure. After the demerger, Cassava will The company says the demerger will unlock the value house EcoCash, Econet Insurance, Econet Life and Stew- of the smart technology business. ard Bank Limited while EWZL’s business model will pivot Econet is now the most valuable company on the ZSE Cassava will next week become the first technology company to list on the its focus to Telecommunications and Media (Kwesé). as its market capitalisation stood at $4,3 billion as at end of Zimbabwe Stock Exchange. Cassava’s financial statements for the year ended Feb- trading on November 30, 2018. ruary, 2018, which were extracted from the group’s results, “However, an analysis of Econet’s financial perfor- as any of these operators, its share price nications business but does not reﬂect the show that the technology segment’s profits made up 53 per- mance against that of its peers in the telecoms industry reﬂects the value of the company that is true value of the underlying business seg- cent of the Econet’s reported $132 million profit after tax. in Africa shows that whilst Econet is performing as well largely driven by the mobile telecommu- ments,” the company said in a circular to its [email protected]

PPC Zimbabwe’s sales performance has exceeded expectations. PPC invests in govt bond

Ndakaziva Majaka Markets Editor

PC SOUTH Africa (PPC) says its 70 percent-owned local unit has invested its dividend in government Pbonds, amid indications the company is failing to repatriate about $60 million in dividends. PPC SA said its subsidiary, PPC Zimbabwe (PPCZ), which recorded a 28 percent improvement in sales for the half year to September 31, 2018, had not been spared from the effects of the prevailing foreign currency shortages. PPCZ is the largest cement producer in Zimbabwe, with total capacity of 1,4 million tonnes from its plants in Bula- wayo, Colleen Bawn in Gwanda, and at its new $82 million Harare factory. The parent firms said due to the liquidity challenges in Zimbabwe, the local unit had been unable to repatriate dividends, pausing a risk to business continuity and sustainabil- ity. However, to counter this, PPC said it had managed to es- tablish “a solid support base with government and invested its dividend in government bonds”. “Volumes were 28 percent higher than last year. Dispos- able incomes were boosted by good crop harvests and major construction projects like Gwayi Shangani Dam and housing has also supported demand. “Pricing was marginally higher than last year in Unit- ed States dollars due to product mix. Market share has increased and exports have also increased compared with the prior year,” PPC said in its report for the six months under review. The cement producer also noted that the political environment has stabilised in Zimbabwe since the country’s July elections. In the six months under review, Zimbabwe’s operations accounted for R1 billion of group revenue, making it the biggest market in PPC’s rest of Africa market segment. PPC however said it anticipated a slowdown in South African cement demand, with the group pinning hopes on Zimba- bwean operations. Johan Claassen, PPC chief executive, earlier this year said Zimbabwe’s sales performance continued to exceed expectations. In the wake of runaway United States dollar parallel market rate and the central bank’s inability to meet the cement maker’s foreign currency requirements, PPCZ has proposed that foreign clients make payments into its foreign currency accounts. [email protected] Page 16 | December 6-12 2018 The Financial Gazette Motoring Hyundai Santa Fe 4th generation Blows the socks off bakkie-based SUVs

Inside the new model, you’ll fi nd added space, a 7-inch infotainment system with Apple CarPlay, dual climate control, better visibility and lots of convenience items which vary in outright number according to which derivative is selected. For example, TOP GEAR with you’ll fi nd virtual instruments only in Richard Wiley the Elite but the main point to note is that the cabin is very smartly trimmed whatever the derivative. There’s an in- HE Hyundai range in South Af- viting ambience to enjoy thanks to the rica has been rapidly changing widespread deployment of soft-surfac- Tin composition as customers ing and the use of matt trimming edg- eschew conventional saloons — even es and shiny highlights. Please take a those as pleasingly-wrought as the look at www.hyundai.co.za to get the Accent and the Elantra — and join the a full run-down on all the convenience hordes of SUV owners who block the items available by model, but for those views of us old-school drivers trying living outside RSA, please talk to your to exit congested car parks in low- dealer as specifi cations may vary by slung hatchbacks. region. Indeed, Hyundai could almost be Multi-adjustable front seats are accused of over-populating the SUV beautifully trimmed while those category with their Creta, Kona, Tuc- lounging further back will fi nd more son and Santa Fe derivatives, but who Santa Fe in Elite trim shows off its virtual instruments space and improved access thanks to can argue with such wide choice. For clever seat folding mechanisms. With now, though, we’re taking a closer the third row folded down, luggage look at the refreshed, range-topping, space has risen to a generous 547l and fourth-generation Santa Fe which has this increases to 1625l with the second just been launched in Msanzi hot on row down too. the heels of the style-led Kona. I’ve already made mention of the I have to admit to not having any 2.2 turbo diesel motor and its impres- long-term experience of the Santa Fe sively low thirst, but should the mood in its earlier execution, but I learned take you, this engine delivers decent enough to develop a huge respect for thrust and absolutely effortless open Korea’s range-topper as it offered road cruising. Further, Hyundai have well-rounded virtues at a palatable clearly been working hard on refi ne- price. Truth be known, it bridged a ment as the isolation of mechanical gap between the mid-range SUV con- noises at all speeds is nothing less than tenders and those sitting at the top of outstanding. the pile, but if on-road observations It’s virtually impossible to tell that carry any validity, it seems that the diesel fuel is being burned which, recipe has attracted fewer buyers than along with the smooth-shifting auto deserved. that can also be activated by paddle Perhaps this can be partly ex- shifters in the Elite version, makes for plained by the lure of more premium an especially relaxed cabin environ- badges which are seen by buyers as ment. being worth the extra outlay because Sure, there is some road noise evi- the neighbours will be more im- dent on coarse surfaces (it’s a big cabin pressed. Possibly in recognition of to isolate, remember) and there’s some this, Hyundai is positioning the new wind rustle around the large wing mir- Santa Fe as the perfect family adven- rors, but overall, the Santa Fe puts on ture vehicle which to me puts it slap a terrifi c show that elevates it leagues bang into typical bakkie-based SUV ahead of any ladder-frame 7-seat SUV. territory. That superiority is extended even Three models, namely Premium, New lighting marks out fourth generation Santa Fe further when the well-judged ride is Executive and Elite are offered in accounted for. A pleasing pliancy is RSA and span the R600 000 to R750 soon evident, but the plushness is not 000 price range. You’d be right if you achieved at the expense of control guessed the difference is made up in which remains good even on rutted equipment levels as all three share dirt surfaces, albeit that corrugations the same well-proven 142kW/440Nm can send a few tremors though the 2.2 turbo D as well as an intelligent now more rigid structure. 8-speed auto box which offers im- Let’s not pretend that a big 7-seat- proved responsiveness at low speeds er is going to compete with smaller, and more relaxed cruising on the open well-sorted saloons or hatchbacks road. in terms of dynamic performance A variable HTRAC electronic but when you add in the improved all-wheel-drive system offers Sport, and more responsive power steering, Comfort, Eco and 50:50 drive distri- you’re left with a spacious, smart bution modes allied to variable brake hold-all that’s now good enough to force control between left and right bear comparison with SUVs that tra- wheels. Staying underneath, a refi ned ditionally rule the lower luxury end of MacPherson strut front end does duty the SUV armada. with a tweaked multi-link while the The Santa Fe really is that good power steering has been the benefi cia- and even if the Elite model in particu- ry of a weight reduction regime and lar fi nds itself priced worryingly close other tweaks which are in-situ to im- to some of the German brigade, it’s prove feel and responsiveness. important to take a close look at the No fewer than six airbags, along amazingly-generous equipment lev- with the use of higher strength steel els — many niceties are cost options and a more rigid body shell, look af- on the opposition — and then make ter static safety issues and have led to a comparison. It’s hard mot to be im- the issue of a 5-star EuroNCAP safety pressed and I’m sure Santa himself rating. Other safety elements include would be very happy to be delivering ABS, EBD, hill-start assist and down- his goodies in such a spacious, com- hill brake control. Rear visibility is improved by larger side windows fortable and dynamically competent Aesthetically, the changes are not vehicle. Take a look for yourself and major which means the Santa Fe lin- decent paint gloss and uniform panel harder to spot, albeit they are obvi- tion in the low 8l/100km range with prepare to be pleasantly surprised. eage is still obvious — and as con- gaps did not escape my notice either ously effective as the big Santa Fe had 6.8l100km achievable on the straight ADI are the Hyundai importers for servatively handsome as before. The but the numerous aero tweaks are no problem recording fuel consump- and narrow. Zimbabwe The Financial Gazette December 6-12 2018 | Page S1

INDIVIDUAL AWARD FOR QUALITY - DANISA CHINAMASA 2018 National Quality Awards a success

HE National Annual Quality Awards Awards are important to organisations, to cre- (NAQA) continues to celebrate quality and ate benchmarks and to promote leadership. Lead- Texcellence across different industry sectors. ership and top management should play a critical “There are a number of awards that are host- role here. ed by various individuals and organisations in “I am convinced that the key to successful Zimbabwe throughout the year, but this particular management of quality begins at the top (leader- event is unique because it is the only recognised ship) of the organisation. Effective leadership is platform which is specifically organised to ac- therefore a key factor of quality management. knowledge quality at national level and applicants “Management and leadership commitment have to provide proof of sustained application of are indispensable elements for a successful qual- productivity and quality principles, and go through ity implementation. Leadership and management a rigorous adjudication process. roles are important for quality and innovation and “The NAQA awards winners proceed to par- in the development of a highly motivated and per- ticipate at the SADC Quality Awards,” Standards forming team within organisations. Association of Zimbabwe director-general Eve “The nurturing of a performance and result-ori- Gadzikwa told guests at the 201 NAQA awards ented culture based on quality is crucial in the de- ceremony in Harare recently. velopment of an organisation and the economy at The awards present an opportunity for winners large. Employee involvement has great impact on to benchmark at SADC level and can be used as a quality management, it is crucial that leadership tool to provide structured and robust criteria upon should encourage the involvement and commit- which organisations can carefully assess their ment of management and all human resources for quality achievements and successes as well as Standards Association of Zimbabwe (SAZ) director-general Dr Eve Gadzikwa the quality management’s success. identify areas that need improvement. “The NAQA awards have grown from humble challenges and many of them relate to quality is- “To gain commitment and engagement of peo- “Once a company or individual receives a beginnings with only a few entrants. Today, these sues. In my capacity as president of the African ple to sustain business excellence is important. NAQA, it is no surprise that the award will open prestigious awards now attract many organisa- Organisation for Standardisation (ARSO), I am Employee involvement, creativity and innovation many doors and elevate your organisation to a tions from various sectors. The number and quali- delighted to be associated with these prestigious levels are positively led by leadership influence. global market. The value of these awards therefore ty of entrants is improving each year. awards, which seek to promote quality products Managers who are committed to service quality goes beyond just the physical shield or certificate “Organisations wishing to sell their products, and services destined for Africa and made in Zim- and employ an empowering leadership style can but creates new opportunities. especially in international markets, face several babwe,” Gadzikwa said. To S2

We would like to Congratulate Mr. Danisa Chinamasa for Winning the 5th ARSO Continental Competition at National Level and for being Awarded 2018 National Annual Quality Awards First Runner Up – Individual Catego- ry.!!!

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First runner up Individual Category: Danisa Chinamasa (centre) 2018 National Quality Awards a huge success From S1 The SADC Annual Quality Awards create a transformational climate that con- serve as a platform for private sector en- veys their commitment to quality service to gagement on quality of goods and services. their employees,” she said. The objective is to recognise enterprises The guest of honour at the awards, that are implementing quality management Sifelani Jabangwe, Confederation of Zim- principles for competitiveness and mar- babwe Industries (CZI) president, said stan- ket access. SADC Annual Quality Awards dardisation removes trade barriers and al- contribute to increased awareness of the lows organisations to export their products importance on a quality culture and use of and services internationally. international standards for product com- He said standardisation was an integral petitiveness and in trade. SADC member aspect of regional growth and globalisation states continue to give support and engage as it is an important tool for trade. departments and institutions to continue “The application of standards leads to to organise the national competitions and the production of goods and services that encourage private and public sector institu- meet international standards. This removes tions to participate. the barriers to trade and allows organisa- NAQA objectives tions to export their products and services  To recognise organisations that excels and access international markets,” Jaban- in continuous quality improvement. gwe said.  To motivate organisations to adhere “Inter Africa trade is possible when to proper quality business norms. quality standards are key goals to be pur-  To encourage organisations to com- Birds of the same feather...... sued by organisations. Standards offer mar- ply with local, regional and international ket driven solutions that capture current quality standards. good practices and we encourage their use  To encourage application by organi- throughout the economy,” he said. sations of the measurement tool kit, quality PetrecoZim (Pvt) Ltd would like to congratulate Mr Danisa Managing quality is fundamental for assurance, quality control and quality man- Chinamasa for scooping the three prestigious Awards at organisations as quality products help to agement systems. the recently held SAZ quality Award ceremony. maintain customer satisfaction, loyalty and  To enhance understanding of quality reduce risks and costs of replacing faulty principles, business methods and all nation- products. al and Zimbabwe harmonised standards “Standards are therefore an important that promote competitiveness. tool for achieving sustainable economic  To recognise individuals that excels development and growth. There is need to in their contributions to the SQAM quality increase awareness and widespread appli- drive. cation of standards even by Zimbabwean Organisations can build good reputa- companies, in order to enhance the overall tions for quality by certifi cation to a glob- economy of the African continent,” said Ja- ally recognised quality standard such as bangwe. the ZWS ISO 9001:2015. Quality will The National Quality Awards are held infl uence the company's good reputation. annually and companies that win the local A strong reputation for quality can be im- awards automatically proceed to the SADC portant in differentiating the company in Regional Annual Quality Awards. markets that are very competitive. “The aim of the awards is to recognise Quality is critical for customer satisfac- and appreciate organisations and individu- tion and their loyalty in order for them to als that are contributing to quality advance- continue buying the products. On the other ment in all sectors of Zimbabwe, by having hand, poor quality or a product failure that measurement and quality systems, proce- results in a product recall may lead to neg- dures and processes that are in line with ative publicity and damage the company’s local, regional and international practices reputation. and that use quality advancement to support The Kingdom of Swaziland played host regional development and growth,” he said. to the 2017 SADC Quality Awards where The awards are organised by the Na- Zimbabwe scooped fi ve awards in various tional Standardisation Quality Assurance, categories. In 2018, the awards were held Accreditation and Meteorology (SQAM) in Johannesburg, South Africa, where two committee, which forms an integral part of Zimbabwean companies won awards, the national infrastructure and is represent- bringing to 13 the total number of quali- ed by SAZ, SIRDC, Ministry of Industry ty awards Zimbabwe has won since 2011 and Commerce and the Medicines Control when the SADC awards were established. Authority of Zimbabwe. The previous winners in the regional The NAQA event is a prelude to the SADC awards are: SADC Quality Awards, which are held BAK Logistics (Private) Limited – during the Annual TBT Cooperation Struc- 2011/2012 tures Meeting and will be hosted by Namib- Servcor (Private) Limited – 2012/2013 ia in March 2019. Chicken Slice – 2012/2013 The SADC Quality Awards ceremony is Integrated Properties – 2013/2014 held every year to coincide with the general The Avenues Clinic – 2013/2014 Call us today for c meetings of the SADC coordinating struc- Schweppes Zimbabwe – 2014/2015 tures, where the heads of quality institu- BOC gases – 2015/2016 We will even pay you for it!!! tions of SADC member states come togeth- CPL – 2015/2016 er to conduct their business in support of Peace Security – 2015/2016 harmonising standards, measurements and Cimas Laboratories – 2015/2016

PetrecoZim (Pvt) Ltd 41 Dover Road, Ardbennie, Harare Tel: (04) 666184, 620787 technical regulations in order to continually Bonaqa/Schweppes – 2015/2016 Mobile: 0772 102 646 Email: [email protected] Email: www.petreco.co.zw work towards a region free from unneces- Schweppes – 2016/2017 sary trade barriers. ZimTrade – 2016/2017 The Financial Gazette 2018 NAQA AWARDS SPECIAL FEATURE December 6-12 2018 | Page S3 ARSO recognises Chinamasa

ANISA Chinamasa (30) holds a Bachelor of Tech- In 2018 October, SAZ recognised his work in nology Honours Degree from Chinhoyi University Standards and Standardisation work and awarded Dof Technology. him with an Outstanding Contribution to SAZ He also graduated from Lupane State University with National Standardisation Work Award as the sec- a Bachelor of Social Science Special Honours Degree in ond runner up. In November the same year, he Monitoring and Evaluation in October this year and was was also awarded with a Quality Award – first also awarded three university book prices and the vice-chan- runner -up- Individual category at national level. cellors’ Award for being the best student. He also won the fifth ARSO Essay Competition He is the ZimTrade monitoring and evaluation execu- in 2018 at National Level and came sixth at Con- tive. tinental level. His other qualifications include a Certified Internal Con- His passion for Quality Management Systems trol Specialist Certificate (Internal Control Institute of Zim- and standards is driven from his firm believe in babwe), Certificate in Quality Infrastructure Development the use of standards to facilitate international in Support of World Trade (SWEDAC Academy, Sweden), trade. Environmental Management Systems Audit Certificate “I believe when you are out of Quality, you (SAZ), Occupational Health & Safety Internal Auditing are out of business. With standards, there is no Certificate (SAZ), Enterprise Wide Risk Management Cer- thinking outside the box, only a realisation that tificate (SAZ) and a Quality Management Systems Lead there is no box at all! This drives my passion. I Auditing Certificate (SAZ). Other certifications include will continue to work hard with regard to Quality Danisa Chinamasa receiving his ARSO Essay competition award from SAZ director SHEQ Aspects assessment in Gold Mining Processes, Con- and Standards,” Chinamasa said. general Eve Gadzikwa. formity Assessment Requirements in Insurance Industry, Conformity Assessment Requirements in the Security In- dustry, Conformity Assessment Requirements in the Fer- tiliser Industry and Conformity Assessment Requirements in Electricity generation. His career started in 2010 as a Production Engineering Attachee’ at ZESA Enterprises were he later became a Qual- ity Controller after finishing his degree. In May 2013, he joined the Standards Association of Zimbabwe (SAZ) as a full time Quality Management Systems auditor. In July 2016, he joined ZimTrade as the Monitoring and Evaluation Executive. He has continued as a part time Lead Auditor with SAZ from July 2016 to date. He has done a lot of work in Quality Management Sys- tems development and implementation at national level. These include development of Standards as a member of the National Mirror Committees for Quality and Risk Manage- ment Systems Standards, and as both and auditor and trainer in Quality and Risk Management Systems. 2018 Naqa winners

HE National Quality Awards hosted by the Standards Association of Zimbabwe, have grown from their Thumble beginning with only a few entrants. The NAQA Awards provide for five categories of awards. In the first four categories, two awards per category are available: •One for small and medium enterprises (SME) with less than 100 employees, and •One for organisations with more than 100 employees- large enterprise (LE). The fifth category is an individual award. Category 1: Company of the Year Two awards, SME and LE: awarded to a company or organisation that has pro-actively and effectively implemented quality principles. Category 4: Exporter of the Year Two awards, SME and LE- awarded to a company or organization that has made significant progress in commencing or expanding exports to new or wider markets by introducing quality in their company. Category 5: Individual award for quality This award is given to an individual that has made significant input into National Standards, Quality Assurance, Accreditation and Metrology SQAM efforts. Company of the Year: Large Enterprises Winner-Schweppes Zimbabwe Limited First runner-up — Volsec Security Private Ltd Company of the Year: SMEs Winner — ZimTrade First runner-up — Sign Aces (Pvt) Ltd Product of the Year: Large Enterprises Winner — Bitumen World First runner-up — Schweppes Zimbabwe Limited Product of the Year: SMEs Winner — Sign Aces (Pvt) Ltd First runner-up — Mukati investments T/a Wellpure Second runner-up — Jacob Bethel Corporation (Zim babwe) (Pvt) Ltd Service of the Year: Large Enterprises Winner —Volsec Security Private Ltd Service of the Year: SMEs Winner — Sign Aces (Pvt) Ltd First runner-up — Radio Solutions Second runner- up — Mukati Investments T//A Wellpure Individual Award for Quality Winner — Romana Marunda First runner-up — Danisa Chinamasa Second runner-up —Tinashe Mutarisi To Page S4 Page S4 | December 6-12 2018 2018 NAQA AWARDS SPECIAL FEATURE The Financial Gazette 2018 Naqa winners

From Page S3

Service of the Year (SMEs) winner: Sign Aces.

Product of the Year (LE) rst runner-up: Schweppes Zimbabwe.

OUR SERVICES Installations and Repairs for Garage and fuel/ oil handling equipment • Volumetric Calibration services • Project Management & Construction

With this success, comes greater opportunities and challenges. Face it with the same energy! CONGRATULATIONS

To Mr. Danisa Chinamasa on Winning the 5th ARSO Continental Competition at National Level and for being Awarded 2018 National Annual Quality Awards First Runner Up – Individual Category!!!

HEAD OFFICE Unit 29 Harrow Business Park Cnr Harrow Rd/Martin Drive,Msasa,Harare,Zimbabwe LANDLINE:+263 (242) 486 776/7/9. Cell: +26377 2 452 732/+263 774 128 675,+263714 091 040 Email: [email protected] / [email protected]

BULAWAYO BRANCH 69 J.Chinamano Rd Dannington, Belmont, Bulawayo, Zimbabwe LANDLINE: +263 (9) 474 768. Email: [email protected] / [email protected] Certiﬁ ed to ZWS ISO 9001:2008 The Financial Gazette December 6-12 2018 | Page S5 Page S6 | December 6-12 2018 The Financial Gazette

SFAAZ - MANAGEMENT BOARD 2018-2020 Meet the SFAAZ board 2018 to 2020 SFAAZ chairperson Shei- Felix Nyaru- la Mashiri ― Mashiri is the wanga ―Nyaru- managing director for Allen wanga gradu- Wack & Shepherd Global ated from the Freight (Pvt) Ltd and has been University of at the helm since 2008. A vast- Zimbabwe in ly experienced, committed, 1991 with a hands-on, knowledgeable Bachelor’s De- and hardworking executive, gree in Business Mashiri has steered the organ- honours and has isation to a reputable freight forwarding, shipping, cus- worked in the toms clearing and handling shipping and agent that has stood the test of customs clear- time. She joined the company ing industry for in 1996 as assistant manager over 18 years. (projects) and rose through the Deputy chairman Godfrey Muswere ― Muswere is the manag- He worked ranks after demonstrating out- ing director of Jugo Freight Services. He has over 30 years of ex- for the Depart- standing leadership skills in perience in the freight industry, having started off in 1986 as a cus- ment of Cus- various departments including toms cadet and then making an early exit to join the private sector toms and Excise forwarding, road freight operations and imports. A holder of a Masters degree in 1990. Muswere has worked for most of the large clearing com- for three years as a senior examinations offi cer before joining the in Business Admnistration from the University of Zimbabwe, Mashiri also has panies in Zimbabwe ― Freight Company, Mitchell Cotts, Costlink private sector. Cargo and Allen Wack and Shepherd (AWS) in management and a bachelor’s degree in purchasing and supply management. Prior to joining Has worked for Freight World, rising through the ranks from AWSGF, she worked for the Zimbabwe Revenue Authority. senior management positions. When he left Allen Wack & Shep- herd to start Jugo Freight, Muswere had been the regional manager imports controller to operations director. Mashiri has been part of the SFAAZ management board for more than 10 Nyaruwanga is very strong and versatile in customs rules and years where she also served as vice chairperson. She is also a member of the for Manicaland for fi ve years. While with AWS, Muswere also had a stint in the UK from November 2000 to April 2004. regulations, valuation and tariff classifi cation. He also holds a International Freight Forwarders Association representing 40 000 logistics and certifi cate of Finance for non-fi nance managers from the Univer- forwarding companies worldwide, and also an executive committee member Muswere holds several qualifi cations in freight forwarding, customs clearing and marketing. He has also attended several in- sity of Zimbabwe and a certifi cate for Supervisory Management for the Federation of Clearing and Forwarding Associations of Southern Af- from Success Motivation Institute. He is a holder of a Masters in rica (FCFASA). tensive freight management courses held by both local and international freight bodies. From the time he returned from the UK in Business Administration with the University of Zimbabwe. 2004, Muswere William Gobvu ― Gobvu’s was the chair- career stretches back to 1983 man of the Shipping and when he joined the civil ser- Forwarding vice from 1983 to 2001, when Agents Asso- he joined ZIMRA as a reve- ciation of Zim- nue offi cer until 2010 when babwe in Man- he moved to CKD Clearing icaland until & Forwarding Services as 2012 when he operations manager. He is the was appointed managing director and owner a board member of Mayner Customs Clear- for the national ing and Forwarding Services association. since 2015.

The Management and staff of Mutare Dry Port would like to congratulate Mr. Lawrence Takawira the General Manager of Mutare Dry Port on his new appointment as a Board member of the Shipping and Forwarding Agents Association of Zimbabwe (SFAAZ).

We also extend our heartiest congratulations to all the other elected Board Members.

We oﬀer: Customs Clearing services, Warehousing, Container Handling, shipping & Forwarding, Transport Haulage, Removals and Other Port Facilities.

The Financial Gazette SFAAZ 2018-2020 BOARD SPECIAL FEATURE December 6-12 2018 | Page S7 Meet the SFAAZ board 2018 to 2020 Assan Mtembo ― Mtembo is Lizwe Bunu ―Veer-Freight Cleophas Manyepwa managing director of Pendock Cus- managing director. A very re- ― toms and Forwarding Consultancy sourceful and energetic mature Manyepwa holds and SFAAZ board member. He holds lady able to work under pressure several marketing qualifi- a Master of Science Degree in Fiscal and produces quality results, giv- cations, including the IMM Studies (NUST) with a distinction, ing attention to detail. She has GSM (RSA) Diploma in Bachelor of Science honours in Eco- worked as a client services con- Marketing, and the BBA nomics (UZ), ICSAZ intermediate sultant, sales/marketing manager, Degree in Marketing from certificate, advanced certificate in regional manager and general the same institution. He is Customs and Taxes legislation and manager. Bunu has extensive currently studying for an procedures (ZIMRA) and a Bsc hon- experience in sales and marketing MBA Degree, specialising ours in Psychology (UZ) pending.Mt- as well as comprehensive busi- in Transport Economics embo has vast experience in interna- ness experience and knowledge and Logistics Management tional traade and enhancement of the in industries such as shipping, with ESAMI. When com- supply chain and is now working as retail and manufacturing. She is pleted, this will make him a trade consultant, including customs able to work in a multicultural one of the very few fully advisory services. He was recently environment and has the abili- qualified transport and appointed to do Time Release Study ty to deal patiently and tactfully logistics specialists in the for Swaziland and Lesotho (funded by with people of different national industry, and the country. World Bank) and has done a project and cultural backgrounds. She is He has a firm background on the effects of Border Management able to communicate at all levels in freight and he comes Modernisation to the Supply Chain. clearly and is a team player. with invaluable knowledge and experience stretch- Catherine Hlanguyo ― Hlan- ing back to 1989 when guyo is a customs and excise and he entered the transport international trade and freight industry for the first time. forwarding specialist with 26 Since then, he has served years experience. Industry ex- several transport and posure ranges from the public to freight forwarding compa- the private sector, public sector nies in various capacities (customs and excise), to customs including administrative, clearing and consultancy, and operations, marketing, and freight forwarding coordinating. management. -Auditor-ISO 9001:2008 He worked for three Quality Management Systems companies in middle and Internal Auditing top management and be- - SFAAZ Beitbridge course came managing director for coordinator- since 2011 to date Aviocean Freight Services -SFAAZ Beitbridge secre- (Pvt) Ltd in 2006 a position tary- since 2011 to 23 Nov 2018 -SFAAZ board mem- which he holds to date. ber-elected 23 Nov 2018 He has been retained She is employed by Mitchell Cotts Freight- Beitbridge branch his position as a SFAAZ manager. Ray Scott Lawrence Takawira SFAAZ CEO Joseph Musariri board member. Page S8 | December 6-12 2018 SFAAZ 2018-2020 BOARD SPECIAL FEATURE The Financial Gazette SFAAZ was founded in 1955

HE Shipping and Forwarding Agents’ Association of The national Customs Legislation and Procedures (CLP) Zimbabwe (SFAAZ) is a voluntary association of ship- Diploma Course and the Freight Forwarding Practice (FFP) T ping lines, freight forwarders, customs clearing agents, Diploma Course that the association offers are both accredit- bonded warehouse operators and in-house clearing importers ed with FIATA. and exporters. Successful completion of the two programmes leads to It was founded around 1955 with a mandate to represent award of the FIATA international diploma in Freight For- the interests of its member companies. warding Practice. The course modules provided by the asso- Estimates are that members of the association handle in ciation are tailor-made to meet the needs of industry, making excess of 95 percent of the country’s commercial imports and SFAAZ graduates very highly marketable. exports. The diploma courses are open to both school-leavers and The customs clearing members of the association play a current industry practitioners. There are also various short very significant role in import revenue collection on behalf courses offered by the SFAAZ that are specifically designed of government. for the needs of industry. The association also has a mandate from its membership Membership benefits and an expectation from its stakeholders, including gov-  SFAAZ has branch offices in major towns and most ernment, to be the vanguard of a very high level of profes- border posts. sionalism and to provide competent and relevant training  The SFAAZ secretariat offers technical assistance to programmes for the industry. members where necessary. International affiliation  SFAAZ is a membership driven organisation. It oper- SFAAZ is a member of the Federation of Clearing and ates on the mandate of its members. Freight Forwarding Association of Southern Africa (FCFA-  SFAAZ offers the only reputable industry training pro- SA) and the International Federation of Freight Forwarding grams. The training programmes are internationally accred- Associations (FIATA). ited. SFAAZ training programme  SFAAZ provides the biggest networking platform of SFAAZ offers internationally accredited FIATA Diploma freight forwarders and clearing agents in Zimbabwe. in Freight Forwarding. The Diploma is broken down into two  SFAAZ is the communication nerve centre of the indus- parts, Customs Legislation and Procedures (CLP) and Freight try in terms of vital and timely information dissemination to Forwarding Practice (FFP). and from its membership. We also offer Customs Legislation and Procedures Certif-  SFAAZ links you with other freight forwarders in the icate (three months) and a variety of tailor-made short cours- region and abroad through the association’s affiliation with es. The association has developed modules that it provides regional and international organisations. for all of its training courses. Africa, to do so.  SFAAZ is the voice of the clearing and forwarding in- Being a member of FIATA has made SFAAZ a very criti- The FIATA Diploma in Freight Forwarding is conducted dustry in Zimbabwe. It commands considerable respect from cal player on the African continent. in Harare and Bulawayo through Speciss College, Premier government, ZIMRA and other stakeholders. Its training programme is accredited by the world body, Business School and Trust Academy, which are the only  Membership of SFAAZ denotes a certain level of making Zimbabwe one of only seven countries that offer the colleges that are affiliated by the association. professionalism. Members are expected to adhere to the pro- internationally accredited course in Africa and only the sec- Graduates of the diploma programme are sought after in visions of the association’s values, constitution and ethical ond country in East and Southern Africa, together with South the industry regionally and abroad. code of conduct.

ALLEN WACK & SHEPHERD GLOBAL FREIGHT (PVT) LTD 12 George Drive, Msasa “ Excelling beyond freight” +263 242 487970-6 www.aws.co.zw [email protected]

“ A leader is one who knows the way, goes the way, and shows the way.” ~ John C. Maxwell

SHEILA SITHANDIWE MASHIRI

(Pvt) Ltd takes pleasure in congratulating our Managing Director Mrs Sheila Sithandiwe Mashiri on her re-election as chairperson of the board of the Shipping and Forwarding Agents Association of Zimbabwe. - You have clearly demonstrated true leadership in steering not only the company but the entire industry over the years.

CONGRATULATIONS! MAKOROKOTO! AMHLOPE!

FOR ALL YOUR IMPORTS & EXPORTS, FORWARDING & CUSTOMS CLEARING

AIRFREIGHT, ROADFREIGHT, SEAFREIGHT, WAREHOUSING, PROJECTS & LOGISTICS

The Financial Gazette December 6-12 2018 | Page S9

Megafest honours Lancet laboratories ANCET Clinical Laboratories was recent- wherever they provide a pathology service. ly honoured by Megafest Holdings at the During the awards ceremony, Proplastics L2018 Northern Region Awards held at a chief executive Kudakwashe Leo Chigiya won colourful ceremony at Cresta Lodge in Harare. the Megafest 2018 Northern Region Business- Lancet Laboratories won the Pace setter of man of the Year Award ahead of Davison Norupi- the Year award together with Nash Paints, while ri of Davipel and Thompson Dondo of Impala Dr Charles Muronda won the Team Leader of the Car Hire. Year award. Proplastics is Zimbabwe’s leading plastic Lancet Clinical Laboratories is an ultramod- pipe manufacturer, specialising in the manufac- ern technologically advanced and independent ture of Polyvinyl Chloride (PVC), High Density pathology laboratory in Zimbabwe. Polyethylene (HDPE), Low Density Polyeth- It was established in 2010 to provide medi- ylene (LDPE) pipes and related ﬁ ttings for var- cal laboratory, consultative and referral services ious applications in irrigation, water and sewer with most extensive range of tests available in reticulation, mining, borehole casings, electrical Zimbabwe today including but not limited to and telecommunications cable ducting, plumb- routine, specialised and advanced tests for clini- ing and building construction. cal research, screening, industrial, environmental Established in 1965, Proplastics has over 46 and occupational health. years of experience in the industry. Lancet Clinical Laboratories is part of an Proplastics’ vision is to be the market leader internationally accredited pathology laborato- in pipe systems solutions in Zimbabwe with a ry, the Lancet Group of Laboratories providing signiﬁ cant market share in the Southern African high-quality pathology services to the medical Development Community region. and allied sectors including occupational health Zimbabwe Consolidated Diamond Company in over 14 African countries at present. Team Leader of the Year winner Dr Charles Muronda of Lancet Clinical Laboratories ad- (ZCDC) chief executive, Moris Mpofu won the Lancet Clinical Laboratories is one of dressing guests. CEO of the Year award. the leading pathology laboratories operating ZCDC commenced operations in February throughout Africa, providing vital diagnostic and 2016, when there was very limited geological in- monitoring pathology services in South Africa, ria, Swaziland, Tanzania, Uganda, Zambia, Zim- Lancet Laboratories is committed to the de- formation available at that time to guide mining Botswana, Ghana, Kenya, Mozambique, Nige- babwe. livery of quality results to doctors and patients operations. To Page S13 Page S10 | December 6-12 2018 2018 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE The Financial Gazette 2018 Megafest Northern Region winners

Guest of honour Health and Child Care Minister Oba- diah Moyo addressing guests at the Megafest Northern Megafest Holdings chief executive officer Dr Tafadzwa Region Awards in Harare recently. Matsika. Team Leader of the Year first runner-up Panganai Kufakunesu

PSMAS communications manager addressing guests Best Socially Responsible Care Preschool) Organisation of the Year First runner-up: David Second runner-up: Impala Chingwama (DIV Arts and Car Rental Signs) First runner-up: Zimbabwe Winner: Margaret Sibanda Consolidated Diamond (Merrion Lodge) Company Winner: Patrick Siyawam- Winner: Zimpapers waya (Solutions Motors) Public Sector Award of the Team Leader of the Year Year First runner-up: Panganai Winner: National Oil Infra- Kufakunesu (Battery Exide) structure Company Winner: Dr Charles Muronda Versatile and Dynamic Or- (Lancet Clinical laboratories) ganisation of the Year Astute Leader of the Year Winner: Premier Service Winner: Tambudzai Mandi- Medical Aid Society sodza (Success Microfinance Winner: Montrose House Bank Ltd) Most Innovative Winner: Tendai Kapumha Organisation of the Year (PSMAS) First runner-up: econcepts Lifetime Achievement media Winner: Moosa Ismail (Geo- Winner: Design @7 desic Steel Engineering) Winner: Geodesic Steel En- Young Manager of the Year gineering First runner-up: Lionda Financial Institution Sup- Mhonda (Zimpapers) porting SMEs Winner: Tafadzwa Mazonde Winner: National Building (Air Zimbabwe) Society Female Manager of the Outstanding Microfinance Year of the Year First runner-up: Virginia Mu- First runner-up: Success Mi- tanda (Tynwald High School) crofinance Bank Ltd Winner: Elizabeth Banda Winner: FMC Finance (ZCPS) Educational Sector Award/ Manager of the Year Quality of the Year Winner: Matipedza Lole Winner: Wise Owl Group of (Liberty Blue) Schools CEO of the Year Outstanding Training First runner-up: Dr Jonathan Institution Mufandaedza (National Bio- First runner-up: Belvedere technology Authority) Teachers College First runner-up: Simon Winner: Chinhoyi University Nyanhete (Agriseeds) of Technology Winner: Dr Moris Bekezela Award of Excellence Mpofu (Zimbabwe Consol- of the Year idated Diamond Company) Winner: Solutions Motors Industrialist of the Year Winner: Wellpure First runner-up: Clive Majoni Pacesetter of the Year (Assa Abloy Zimbabwe) Winner: Nash paints Winner: Tafadzwa Musarara Winner: Lancet Clinical Lab- (Grain Millers Association of oratories Zimbabwe) Customer Focus of the Year Businesswoman of the Year Winner: Penanel Trading First runner-up: Christine Small Business of the Year Chikwaiti (NOIC) Winner: Brising Security Winner: Roseline Chisveto Company of the Year (Turnall Holdings) Second runner-up: Dande- Businessman of the Year mutande First runner-up: Davison First runner-up: Tsogo Mar- Norupiri (Davipel) keting Second runner-up: Thomp- Winner: Proplastics son Dondo (Impala Car Public Sector Leader of the Rental) Year Outstanding Businessper- Winner: Eng Tafadzwa Mud- son of the Year ondo (Harare Polytechnic) Ranga Mavhunga (FMC Fi- Entrepreneur of the Year nance) First runner-up: Gertrude Winner: Kudakwashe Leo Thula Mandizvidza (Good Chigiya (Proplastics) The Financial Gazette 2018 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE December 6-12 2018 | Page S11 Megafest Northern Region awards in pics

Lifetime Achievement Award recipient: Moosa SME Business of the Year winner: Brising Security Ismail.

Industrialist of the Year winner: Tafadzwa Musarara.

Industrialist of the Year first runner-up: Clive Majoni (second from right). Tafadzwa Mazonde, Young Manager of the Year winner. Page S12 | December 6-12 2018 2018 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE The Financial Gazette Megafest Northern Region awards in pics

Health and Child Care Minister (second from left) Businessman of the Year winner Kuda Chigiya, representative lifting the trophy. Pace Setter of the Year winner: Nash Paints, congratulates ZCDC chief executive Moris Mpofu. represented by Tinashe Mutarisi (second from left).

Team Leader of the Year winner: Dr Charles CEO of the Year first runner-up: Simon Nyanhete Astute Leader of the Year winner: Tendai Kapumha. Muronda of Lancet Clinical Laboratories (second (right) from left). The Financial Gazette 2018 MEGAFEST NORTHERN REGION AWARDS SPECIAL FEATURE December 6-12 2018 | Page S13

Dr Moris Mpofu, the ZCDC chief executive, won the CEO of the Year award. Megafest honours Lancet laboratories

From Page S9 •Taking part also offers a springboard There was no meaningful exploration to career progression. done and ZCDC had to invest in explo- •This competition differs from oth- ration and evaluation to develop resource er industry awards as it is designed and statements which could be used to guide judged by the people who matter — the mining operations and inform investment customers. decisions. •It creates a unique opportunity to While undertaking exploration and challenge existing stereotypes, under- evaluation in Marange, ZCDC continued stand emerging trends and add value to processing alluvial deposits from various organisations aiming to commercialise concessions (Portals) previously mined and apply new and innovative concepts. by the former mining companies. •Crucial in unveiling the perception of Megafest Holdings is a business the market concerning your organisation. coaching organisation operating from •Disseminating information about Bulawayo but servicing the entire coun- your company to various stakeholders try, has over the years been a force to and is also a very effective promotional reckon with owing to its evident readi- tool. ness to meet customer needs. •It is a continuous process that seeks The Tafadwa Matskika-headed organ- to enhance personal and company image isation’s services are designed simply as it moves into the future. and practically to help customers achieve •Reassurance and reinforcement to their performance goals — driving reve- stakeholders that they are dealing with a nue growth, increasing customer service strong recognised up Market Company. levels and enhancing their leadership and •Attracts, retains and enhances a pro- culture. ductive workforce. Everybody wants to From consulting services to class- be associated with the best. room training, market networking, public These Premier and most prestigious courses to conference solutions, Megaf- Awards are held annually as a way of est Holdings’ range of delivery channels recognising, developing and promoting ensure the organisation can offer world- professional business acumen at all busi- class support in the format most appro- ness levels. priate and impactful for individuals and These awards were introduced in their organisations. 2008 as part of Dr Tafadzwa Matsika’s Awards benefits doctorate research and have been a com- •The awards are a great opportunity to mon feature ever since and are supported raise your profile within the management through donations and sponsorship. community, helping to accelerate your Since then several well-known busi- management career as well as gaining ness people, managers and corporates recognition and acknowledgement for in Zimbabwe have been recipients of your skills. the premier and prestigious Megafest •It is a great achievement, conferring Awards. tremendous prestige on the individual The guest of honour was Health and nominated as well as their company. Child Care Minister Obadiah Moyo. Page S14 | December 6-12 2018 SPECIAL FEATURE The Financial Gazette Toyota leading the way OST multi-national corporations en- Some organisations have managed to achieve entation training and after all their set standards resource. force universal standards where ever consistency by using various tools such as rega- for modes of operation have been adhered to. It costs managers large amounts of time and Mthey operate. lia, ambiance, customised vocabulary, mascots, All their processes are standardised all the way money to identify highly motivated individuals There is uniformity in organisational process- automated applications and so much more. These from even the facility design, construction, ap- whom they equip with skills necessary for smooth es. Clients may take it for granted that they can tools are developed through intensive planning, pearance, and the language used in consultation and consistent service delivery. walk into any KFC or Pick n Pay franchise and re- grooming and constant innovation as they require and service delivery. At Toyota, technician and sales representative ceive the exact same reception, service and almost continuous improvement. These are ever chang- They also have an internal “secret service” sys- trainers are given centralised training at regional the same satisfaction. ing times… tem set to monitor all dealership activities. faculties. Regardless of the situation, whether first world Toyota Zimbabwe is one such organisation that Apparently the facilities, uniforms and equip- For Africa, their instructors are sent to Kenya or third world, the moment you come across a par- has managed to come up with an intricate system ment are just the foundation needed for the fran- and South Africa after every two years, and as and ticular brand you already have set expectations as- that they use to engage prospective dealers. chise to operate. when new technologies are introduced. sociated with it. A Toyota dealership is only attained after ori- At the core of excellent delivery lies the human On their return they in turn pass their knowledge on to their service and sales teams to the benefit of the customer. Toyota`s push towards making standard service all over the world regardless of your port of call has seen them create the Team 21 (Toyota Engineering and Automotive Manage- ment for the 21st Century) concept. Through this system, technicians and sales representatives are encouraged to conform to the Toyota standard modus operandi through a skills contest which they have been running for the past 18 years. Firstly, employees take tests in theory, and then instructors visit their deal- erships for practical tests. Those who do well at this stage proceed to the Toyota National Skills Contest. This year the finals were held at the recently launched world class Toy- ota Zimbabwe dealership in Msasa. Contestants had to undergo standard tests in the way of common motoring problems. Instructors were very particular about the level to which contestants were able to follow the TOYO- TA technique, procedure and proper use of tools and safety technologies in solv- ing tasks availed to them. “We always endeavour to fix it right the first time, using the right tools and procedures, in the best possible time,” said Brandon Edwards, a qualified Toy- ota diagnostic technician from Toyota Masvingo who was one of the invig- ilators. Instructors were also on the look-out for eloquence in the Toyota lingo, attitude towards clients, time-management in response to client enquiries and requests, and product knowledge i.e. the vehicles and the parts. Salesmen are required to answer calls within three rings, and give clients a personal experience through engaging conver- sation, get to know them by name and use their names in reference. As an incentive, winning finalists were awarded generous prizes, trophies, and a trip to Toyota Japan, which means exposure to the world`s best technologies and further learning. Toyota has managed to outdo competition when it comes to service standards throughout. This has been because Toyota employees are constantly learning and striving to improve, all in the spirit of Kaizen (Japanese for “continuous improvement”). The Financial Gazette December 6-12 2018 | Page S15

ZIMBABWE MINISTRY OF INDUSTRY AND COMMERCE CALL FOR EXPRESSION OF INTEREST

CONSIGNMENT BASED CONFORMITY ASSESSMENT PRO- (Destination Inspection) GRAMME (CBCA), PRE-SHIPMENT INSPECTION FOR USED MO- • Deep understanding of the processes to be followed when conducting TOR VEHICLES AND DESTINATION INSPECTION FOR BOTH USED MOTOR VEHICLES AND GENERAL GOODS assessment, testing, inspection and verifi cation for sectors in the Zim- babwe program The Ministry of Industry and Commerce oversees the Implementation of Con- signment Based Conformity Assessment Programme. The programme has been • Availability of motor vehicle testing centers (applicable for used motor running since 2015. vehicles only) • Service providers to clearly indicate the Routes to be followed, assess- The Ministry is inviting service providers who meet the following criteria to apply. ments and time taken to issue conformity assessment certifi cates per route. SERVICE PROVIDERS THAT MEET THE FOLLOWING CRITERIA • Service providers to detail and demonstrate proper security arrange- ARE INVITED TO APPLY: ments for the Certifi cate of Conformity and verifi cation of authenticity. 1. Be a registered company in the source country 2. Have an offi ce in either Italy, Germany, China, South Africa, Botswana, Service charges United Kingdom or any other source country where the service provid- • Service provider to indicate proposed fees to be charged for the services er wishes to conduct pre-export verifi cation of conformity of general • Service provider to give Groupage Consignments/Consolidator prod- goods and pre-shipment inspection of used vehicles ucts proposed charges 3. Be currently conducting pre-export verifi cation of conformity/ Con- • For destination inspection, service providers to indicate proposed ser- signment Based Conformity Assessments (CBCA) for at least three Af- vice charges per engine capacity vehicle rican countries • For used motor vehicles, service providers to indicate proposed charges 4. Have at least four years experience conducting pre-export verifi cation of conformity of general goods and preshipment inspection of used vehicles and or Consignment Based Conformity Assessment (CBCA) Destination inspection 5. Have proven qualifi ed skilled assessors and inspectors In addition, service providers to demonstrate ability to conduct random sampling 6. Evidence of ability to conduct assessment, testing, inspection and veri- and testing of products under the CBCA programme fi cation within the shortest possible time 7. Be able to produce monthly reports on their activity in source country Royalties 8. Demonstrated knowledge of international standards and or testing of • Service providers to indicate ability to remit at least 25%, of which used motor vehicles 20% will be royalty fees for the Government of Zimbabwe and 5% is 9. Evidence of accreditation against training levy. • ISO/IEC 17020 – Inspection bodies • ISO/IEC 17025 – Testing and Calibration facilities Applications to be submitted directly delivered to the Ministry of Industry and Commerce by 16:00 pm on 11 January 2019 to the following address: 10. Member of the International Federation of Inspection Agencies (IFIA) for inspection bodies. Ministry of Industry and Commerce 11. Evidence of annual audits by accreditation bodies 13th Floor Mukwati Building Corner 4th Street and Livingstone Avenue Interested companies please apply in writing using the following format:- Harare Application Form (Clearly label CBCA, Destination Inspection or Used Zimbabwe Motor vehicle inspection) Attention : Procurement Unit

Interested companies are required to follow the given format as part of the Attach the following documents: application form: • Company registration documents in source country • Proof of accreditation • Name of Company • Proof that the organization is a member of the IFIA or any other re- • Directors nowned equivalent organisation • Head offi ces and sub offi ces • Attach evidence of last 5 year Annual audits of each laboratory and • Name cities and countries where the company has Accredited Labora- each regional offi ce • Attach two monthly reports tories • Map of World showing Accredited Laboratories and motor vehicles • Employment level testing centers • Skills of offi cials • Attach registration documents for (Zimbabwe and or nearest local Liai- • Organizational structure son offi ce) • Attach company organogram and at least two organograms for two laboratories Demonstrate the following: • Two copies of monthly reports for the CBCA General Products and • Experience in pre-export verifi cation of Conformity to standards Conformity Assessment • Knowledge of International standards and Zimbabwean standards • Evidence of accreditation against ISO/IEC 17020 and ISO 17025

“ZIMBABWE IS OPEN FOR BUSINESS” Page S16 | December 6-12 2018 The Financial Gazette The Financial Gazette December 6-12 2018 | Page 17 Column

The Board, Management and Sta of Extreme Fire Design Inc would like to take this opportunity to congratulate Mr. Danisa Aligning goals Chinamasa for Graduating from Lupane University with his 2nd degree and getting 3 University Book Prices and the Vice Chancellor’s Award for the best graduating student in the of employees Monitoring and Evaluation Degree. Congratulations! to your 2019 Makorokoto! Amhlophe! We are indeed honored to be business plan associated with you.

For the Designs and Installation of: OAL alignment in organisa- complishments? Automatic Fire Sprinkler, Fire Hydrant and Fire Hose Reel Systems, Deluge & tions is a precondition for a To be able to cascade goals down, Water Spray Systems, Gas Fire Suppression Systems, Foam Fire Suppression G successful performance mea- managers need to be very clear on how Systems, Fire Detection & Alarm Systems, Water Supply Adequacy Review, surement system. Individual goals to set the goals that will help the or- Diesel & Electric Motor Driven Fire Pumps and Fire Extinguishers need to be aligned with higher goals ganisation achieve its mission. Below in the organisation both vertically and I am going to highlight some of the horizontally. Lack of goal alignment is DOs and DON’Ts when setting goals one of the reasons why performance DOs management systems do not produce l Always tie individual goals to the the desired positive impact on organ- goals of the organisation, department isational productivity. or workgroup. Very few managers take their time l You need to set the goals joint- when implementing a performance ly with the person who is going to be management system to ensure that appraised goals at every level within the organi- l Gather information so that you sation are aligned. This is not difficult, can set the goals at the appropriate it only needs managers to be clear on level. what they want to achieve in the first l Develop specific, measurable place. goals that are challenging yet realistic After setting up your goals as a l Ask individuals to come up with manager, the next step is for you to ex- actions plans on how they are going to pose these goals to your subordinates. achieve the set goals. In a number of cases, you will find out l Gain the appraisee’s understand- that managers and their subordinates ing and acceptance of each perfor- are working on things that are not mance goal. DON’Ts l Don’t set goals without looking at the bigger picture l Don’t hand an individual a copy of their goals without discussing these with them l Don’t develop general or vague goals l Don’t set too many goals or set trivial goals. HR Perspective l Don’t ignore the “how” of with achieving performance goals. Memory Nguwi Don’t assume your subordinate can read their supervisor’s mind or know what is important to the company. complementary. This misalignment of The importance of performance goals can lead to confusion and con- goals in achieving company goals can- frontation. not be overemphasised. Performance For organisations to realise the ben- goals provide both the appraiser and efits of performance management they the appraisee with the criterion need- need to ensure goals are aligned at ev- ed to objectively discuss, monitor and ery level of the organisation. To do this evaluate performance. We waste our you need to set aside time to check and time setting goals on things like team- cross check alignment of goals at the work, initiative etc. These dimensions different levels. are so hard to objectively assess and When cascading goals downwards measure. If they are important to your you normally start by looking at the organisation, these dimensions can be organisational goals. From these the dealt with in a different forum not re- manager can then set their own to sup- lated to performance. port the organisational goals. By doing Clear goals prevent surprises this, you are ensuring that the organ- during performance review time. It isation’s priorities are not lost in the also helps in reducing misunderstand- day-to-day running of the business. In ings between the manager and the em- the majority of cases, we spend a lot ployee about what performance results of time fighting fires instead of con- the subordinate is expected to achieve. centrating on the key strategic goals. Having objective goals set jointly with After setting your goals as a manager, the concerned employee helps the you need to meet with all your direct employee to self-monitor progress by reports and discuss your goals and how providing clear performance targets to as a team they can help you achieve aim for. them. If only managers can take time to As such individuals, depending on jointly set and agree on goals with their areas of expertise, will be able to their subordinates, performance re- pick one or two goals they can work view times will not be dreaded as they on. When your subordinates are setting are today in most organisations. their goals they need to focus on those If you have decided to introduce a that they can directly contribute to or performance measurement and man- have control over. They need to ask agement system it’s most beneficial to themselves this question, “Given their do it properly by ensuring that individ- role, which organisational or depart- ual goals are aligned with higher level mental goals can I influence or contrib- goals. ute to most directly”? To influence or contribute to the organisational goals l Nguwi is an occupational psy- they will have identified what specific chologist and managing consultant accomplishments they must achieve? with Industrial Psychology Consul- How would they know whether they tants. He writes in his personal ca- have successfully achieved those ac- pacity. Page 18 | December 6-12 2018 The Financial Gazette Column Non-resident digital products suppliers to pay tax

HE 2019 National Budget presented by from persons resident in Zim- lite (whether or not in combi- fi lm or any sound recording or advertising matter used Finance and Economic Development babwe for services rendered nation with cable optical fi bre or intended to be used in connection with such fi lm”, Tminister Mthuli Ncube on November in Zimbabwe, commencing or any other means of delivery) a position the recent High Court case MA Limited vs. 22, 2018 contains a lot of pertinent issues that January 1, 2019. This appears delivers television or radio ZIMRA HH 316-16 has also confi rmed. require unpacking. an extra tax burden for resident programmes to persons having The court ruled that MA, as the agent in Zimbabwe First, there are alternative views regarding consumers of such services equipment appropriate for re- of a foreign producer of satellite broadcasting services, the application of intermediated money trans- because non-resident suppliers ceiving that service.” was the one authorised to use the motion picture fi lms fer tax on point-of-sale (POS) transactions, of satellite broadcasting and This proposal is meant to and television fi lms in Zimbabwe by the producers of whether government is correct in demanding e-commerce services are likely also impose a compliance bur- these items and not the subscribers, and therefore liable payment of tax in foreign currency in light to pass on the tax. The article den on the part of the non-res- to income tax on the subscriptions paid by the Zimba- of the law that provides that bond notes and further unpacks the proposal, ident satellite broadcasting bwean subscribers. coins are at par with the United States dollar, discusses the VAT rules and Tax Matters service providers. It must be Electronic commerce platform: Foreign suppliers how to prepare and fi le tax returns when one international development re- with pointed out that these suppli- of electronically supplied products (e.g. download- is trading in multiple currencies, among other garding the same matter. Marvellous Tapera ers are already captured by s ed music, games, books, and software etc.) are not issues. The new tax measure 12(4) (b) of the Income Tax spared either. The minister has proposed that amount This article, however, is about clause 5 Non-resident satellite broadcasting: The Act Chapter 23:06 which deems income to be receivable by or on behalf of an electronic commerce of the Finance Bill 2019: “The taxation of law is amended to strengthen the taxation from a Zimbabwean source if it is receivable platform domiciled outside Zimbabwe from persons non-resident satellite broadcasting and e-com- in Zimbabwe of a satellite broadcasting ser- “by person by virtue of the use in Zimbabwe resident in Zimbabwe in respect of the provision or de- merce service providers.” It provides that a vice domiciled outside Zimbabwe providing of or the grant of permission to use in Zim- livery of goods or services to such residents shall also satellite broadcasting and e-commerce plat- television or radio services to subscribers in babwe, or the imparting of or the undertak- be subject to income tax in Zimbabwe. Clause 5 of the form service provider domiciled outside Zim- Zimbabwe. A “satellite broadcasting service” ing to impart any knowledge directly or in- draft Finance Bill 2019 defi nes “electronic commerce babwe will be subject to income tax in Zim- is defi ned in clause 5 of the draft Finance Bill directly connected with the use in Zimbabwe platform” as “a service which by the use of a telecom- babwe to the extent that its income is received 2019 as “a service which by means of a satel- of — (b) any motion picture fi lm or television munications service or electronic means (and whether mediated by computers, mobile telephones or other devices) sells and delivers goods and services to customers”. Broadly, this will cover incomes such as roaming fees, international connection, VOIPs (voice over internet protocols), OTTs (over the top services), music and software downloads etc. of a non-resident. Administration of tax Administratively, a satellite broadcasting service provider or electronic commerce platform with certain sales threshold (not specifi ed yet) will be under an obligation to appoint a public offi cer in Zimbabwe or an agent responsible for its income tax obligation in Zim- PUBLIC NOTICE babwe. Such public offi cer or agent shall on behalf of ISSUANCE OF TAX CLEARANCES CERTIFICATES (ITF263) FOR 2019 the non-resident be required to register for income tax and settle its income tax liability on a quarterly basis in The Tax Clearance Certificates expiring on 31 December 2018, will be cancelled in the ZIMRA system advance of year end as follows: March 25-10 percent; before the new ones are issued. In order to avoid any inconveniences, it is advisable to apply for the June 25-25 percent; September 25-30 percent and De- cember 20-35percent. Additionally, to fi le income tax 2019 Tax Clearance Certificate as soon as possible within the allocated time lines. return by April 30 following the December year-end. For purposes of repatriating the income to the ZIMRA is happy to advise all business partners that 2019 ITF 263s will be issued on-line from 1st non-resident, a public offi cer or agent must avail a val- December 2018. To mitigate the system congestion, this process will be carried out in batches, as id tax clearance to an authorised forex dealer in terms follows: of the Exchange Control Act as evidence of complying with the income tax rules. VAT rules on the same Category 1 Compliant Large Clients : 03 December 2018 to 07 December 2018 Non-resident suppliers of satellite broadcasting and Category 2 Compliant Medium Clients : 08 December 2018 to 15 December 2018 e-commerce platform with no fi xed place of business Category 3 Compliant Small Clients : 16 December 2018 to 31 December 2018 in Zimbabwe are under no obligation to declare and pay VAT in Zimbabwe. This obligation is placed on the Zimbabwean recipient of the imported services. Import- The following requirements should be complied with before a Tax Clearance Certificate can be issued: ed services are defi ned in s2 (1) of the VAT Act as “. . . a supply of services that is made by a supplier who is resident or carries on business outside Zimbabwe to 1. All tax payments due by the date of application are paid in full. This includes payments for a recipient who is a resident of Zimbabwe to the extent PAYE, Income Tax, QPDs, and VAT; that such services are utilised or consumed in Zimba- 2. All tax returns due by the date of application are submitted. This includes returns for PAYE, bwe otherwise than for the purpose of making taxable Income Tax, and VAT; supplies...” It implies services supplied by a foreign 3. All VAT registered operators must be fully fiscalised and their devices interfaced with ZIMRA supplier and used by a resident person to produce ex- empted or other non-taxable supplies e.g. services im- servers. In instances where this has not been achieved then proof of the effort undertaken to ported by banks, insurance companies, pension funds, comply with the regulations must be submitted; schools, private individuals etc. Enforcing compliance 4. Compliance with agreed payment plan(s) for any outstanding taxes. among private individuals has been one of the biggest challenge of this tax. International developments Clients who do not meet the criteria provided above are advised to approach their nearest ZIMRA The tax challenges of e-commerce is a matter which Office to resolve any outstanding obligations before proceeding to apply for the Tax Clearance Cer- the world is currently seized. The matter was identifi ed tificate. Help Desks have been set up in all Regions with dedicated staff to handle and resolve by the G20 and OCED as one of the causes of Base queries that may arise. Erosion and Profi t Shifting (BEPS), leading to the 2015 BEPS Action 1 Report. Finance ministers of the G20, through the Inclusive Framework on BEPS then tasked PROCEDURE FOR APPLYING FOR A TAX CLEARANCE CERTIFICATE (ITF 263) OCED to deliver an interim report on the implications of digitisation for taxation. The report was delivered in 1. Type http://efiling.zimra.co.zw on internet browser and log-in toZIMRA e-Services Portal April 2018 and endorsed by more than 110 members 2. Click on “Manage services” tab and select “Submissions” of the Inclusive Framework. Unfortunately they did not agree on the recommendations made, resulting in 3. Click on “General Tax Clearance” the committee being asked to work on the project and 4. Click on “General Tax Clearance” again produce an interim and fi nal reports in 2019 and 2020, 5. Click on “Submit” respectively. Some countries, however, have since adopted some of the interim measures in the form of an 6. Go to “My History” tab, select “My Submissions” and check status excise tax and withholding tax on the supply of certain 7. If status says Committed, click on View Document and print the tax clearance. e-services within their jurisdiction. 8. If the status says “Failed” then contact your nearest ZIMRA office for assistance. Conclusion The new measure seeks to widen the tax base but the minister must be wary of potential double taxation E-services on: (0242) 795710; (0242) 795 716; (0242) 795 720-48 ext. 3308. of cross border e-services contrary to provision of the Melbourne Treaty of 1988 which Zimbabwe is a party Alternatively: E-Mail: [email protected]; [email protected]; [email protected] to. Neverthess, non-resident suppliers of the e-services ought to familiarise themselves with the new law to avoid penalties associated with non-compliance with Public Notice No. 48 of 2018 the tax laws, particularly with Zimbabwe as it is leading My taxes, My duties - Building my Zimbabwe! among high penalty jurisdictions. Meanwhile, Matrix Tax School will host its 2019 Victoria Falls Tax Conference from May 22 to 25, 2019.

 Tapera is the founder of Tax Matrix (Pvt) Ltd and CEO of Matrix Tax School (Pvt) Limited. He “We are here to serve” writes in his personal capacity. The Financial Gazette December 6-12 2018 | Page 19 Column Boards and culture of organisations

NCREASINGLY, questions are being prepared and how helpful they are to asked about whether boards have a members Irole in the management of organisa- lHow board members behave during tional culture. One view is that their focus meetings should strictly be on exercising an over- lCommunication (written and face sight role in the achievement of financial to face) between executives and board outcomes such as revenue growth, prof- members itability, share price, return on capital Role of boards employed, etc., and, for service organisa- The role of boards in organisational tions, service delivery. culture can be summarised as follows: The other view is that boards’ over- lDemonstrating leadership ― board sight role should be exercised, in equal members must embody the desired cul- measure, to organisational culture out- ture, embedding this at all levels and in comes such as organisational adaptabil- every aspect of the business. ity, innovativeness, customer centricity, lRecognising the value of organisa- ethical ways, teamwork, employee en- tional culture ― a healthy organisation- gagement, etc. al culture is a valuable asset, a source of I subscribe to the latter view. Around competitive advantage and vital to the the world, interest in organisational cul- creation and protection of long-term val- ture right now is very high. Why? Be- ue. Boards should not only determine the

Johnson Manyakara cause organisational culture “touches purpose of the organisation but should every aspect of the organisation: strategy, also ensure that the organisation’s values, business processes, employees … it’s in strategy and business model are aligned everything” ― Human Synergistics In- to it. ternational. lBeing open and accountable ― Organisational culture defined openness and accountability matter at Organisational culture is a combina- every level. Good governance means a tion of values, attitudes and behaviours focus on how this takes place throughout manifested by an organisation in its the organisation. operations and relations with its stake- lEmbedding and integrating ― the holders. Aristotle said, “We are what we values of the organisation should inform repeatedly do”. What employees at all the behaviours which are expected at ev- levels in the organisation repeatedly do ery level of the organisation. The voices is informed by the expected behaviour of human resources, internal audit, ethics, that has been woven into the fabric of the compliance and risk functions should be organisation’s culture. As role models, strengthened in the boardroom. Release Power investments Management and staff board members must demonstrate leader- lAssessing, measuring and engag- congratuate ship as far as an organisation’s culture is ing ― there is an old saying, “what gets concerned. measured gets managed.” Boards need How organisational culture plays out to play an oversight role in assessing Mr. Danisa According to Human Synergistics In- and measuring organisational culture and ternational, organisational culture plays engaging the EXCO in any gap closure Chinamasa out not only in the organisation’s day-to- interventions. Indicators and measures day operations but also in the boardroom. used should be aligned to desired out- Release Power Investments is a civil Engineering a) In day-to-day operations: comes and be material to the organisa- Contractor, Structural Contractor, Building Contractor Typically, organisational culture plays tion. and Plant hire organisation. out under the situations below: lAligning values and incentives ― The organisation is a member of the following l When someone deals with a cus- the performance management and reward construction bodies as well as registered with Ministry tomer system should support and encourage of Local government, Public Works and national l When mistakes are made behaviours consistent with the organ- Housing. l When problems arise isation’s purpose, values, strategy and l When priorities need to change business model. Boards are responsible l As information flows around the or- for clearly explaining this alignment to ganisation shareholders, employees and other stake- l When decisions need to be made holders. l When unsafe work practices are lExercising stewardship ― effective easier than the safe approach stewardship by boards should include l As we handle people who are “dif- engagement about organisational culture CIFOZ GROUP A MEMBER ZBCA GROUP A MEMBER ferent” and encourage better reporting. l When one wants to get noticed The era for an obsession by boards l As we treat our suppliers with exercising an oversight role strictly l As we treat each other on financial outcomes and service delivery is, clearly, over. Due regard should 20 Balmoral Road Vainona Harare Zimbabwe b) In the boardroom: now be given, in equal measure, to Tel: 0712 213 167/ 077 7255 631/ 0773 294 327 boards’ oversight role on organisational [email protected]; [email protected] lThe relationship between culture culture outcomes, enablers for financial www.releasepowerinv.co.zw and strategy as the former drives the abil- and service delivery outcomes. ity to execute the latter lManyakara is a board leadership, l How executives behave when at- human resources management and en- MORE THAN 20 YEARS EXPERIENCE IN THE ROADS, STORM-WATER DRAINAGE, WATER tending board meetings terprise development solutions guru. RETICULATION, SEWER RETICULATION, CONCRETE WORKS AND BUILDING WORKS. lHow effectively board papers are He writes in his personal capacity. Page 20 | December 6-12 2018 The Financial Gazette Column Questions high-performing directors must ask (Part IV) HE board or governing body of a corruption, arbitrary a number of possibilities of the activities of the organisation with the environ- formal organisation carries two car- decision making process such as; that the board is ment in which it operates”. Tdinal responsibilities which it cannot and under-achievement not involved in strat- Here are the salient points about directors’ involve- abdicate. First, to provide strategic direction, in performance. To egy formulation or; it ment in strategy: delegate to management to develop the attain this, each director does not understand the  Each director is enabled to bring their knowl- strategy then supervise management in its must contribute to the strategy or; it abdicates edge and experience to the business implementation. Second, to provide ethical discourse by asking pen- its responsibility for  Directors can foresee pitfalls and pre-empt them leadership which creates an ethical culture etrating and constructive the strategy. All three  Management cannot hide behind technical jargon of accountability, responsibility, transparen- questions. options are negative and when directors ask questions cy and fairness across the width and depth of Question: Does our suboptimal.  Directors can adjust the strategy to be in sync the organisation. board really own the Executives Only Corner Gerry Johnson and with shareholders direction This is the cocktail that determines company’s strategy? with Kevan Scholes defi ned  Lengthy structured board-management strategy whether the organisation is fraught with The question indicates Shepherd Shonhiwa strategy as “the matching sessions enable full strategy immersion to tap the collective wisdom of the two groups  The board can intimately assess the CEO’s fi t- ness for the job or not and act appropriately before too much damage is done  Strategy is never a fi xed target. Boards and management must revisit it frequently because the world continuously changes Question: How can I get the information I need to make quality decisions? The board operates more or less along the same lines as a computer ― garbage in, garbage out. The quality of their output depends heavily on the information they receive. “Boards need the right information not only to be effective monitors but also to The board oper- infl uence management’s ates more or less behaviour and effec- “along the same DAILY NEWS tiveness. The purpose is lines as a computer ― not to run the company garbage in, garbage TELLING IT LIKE IT IS... WITHOUT FEAR WITHOUT FAVOUR or micromanage but to out. The quality of their make linkages between output depends heavily causal factors and measures of performance in on the information they order to help the CEO receive. “Boards need anticipate, not just look the right information back” #1. not only to be effective The importance of monitors but also to inappropriate quality fl uence management’s information in the board behaviour and effec- pack is priceless and tiveness. The purpose is thus: not to run the company  Helps the direc- or micromanage but to tors to help the CEO make linkages between anticipate imminent causal factors and mea- calamities sures of performance in  Board knows what order to help the CEO management is doing to protect against elevated anticipate, not just look risks back”.  Board knows and understands the rationale for resource shifts/allocation  Directors should counter-check given information with external sources/experts The normal board pack should comprise this information in succinct and clear format: Financials provided in either the standard statements of overview dashboard are the backbone of KPIs to measure business performance. While the reports are good storyline tellers, their back stories are the crucial side of the equation, such as shrinking margins, rising input costs and cash movement. The audit committee and CFO should sharpen KPIs scanned from industry and other related sectors. Non-fi nancial data is equally important an examples are brand and organisational brand/reputation; business process; market share and customer satisfaction surveys. External information is critical as source to benchmark both the fi nancial and no-fi nancial data. Understanding the competitor profi le, new entrants, new technology and existing players is vital to understand their behavioural pattern. A director must have a clear view on how macro trends are and will affect the business now and in the long term, despite the level of uncertainty prevailing. Internal information required to inform directors relates to human capital ― quality, quantity, develop- dailynews ment and potential to meet future skill needs. It has been proved true that the best construct of TELLING IT LIKE IT IS. WITHOUT FEAR .... WITHOUT FAVOUR. board pack information is derived from a joint task team of board and management members who compile Second Floor, Bluebridge South, Eastgate Complex, Harare, Tel: +263-4-798820-9 Website: www.dailynews.co.zw it together. Bulawayo Offices: Suite 101-2 Masiye Business Suites (Princess Flat), Fort street/9th Avenue, Bulawayo  Shonhiwa is a South Africa-based chartered director and has authored books on leadership. He breaking news entertainment sports business writes in his personal capacity. The Financial Gazette December 6-12 2018 | Page 21 Companies & Markets Apple to miss rapid 5G takeoff PPLE plans to hold off until at smartphones would come with problems in 2007 was so far come a major selling point for new de- market has declined for four consecutive least 2020 before offering an iP- such as spotty coverage, making con- ahead of rivals that vices. Samsung plans to have 5G phones quarters, according to industry analyst Ahone that can connect to the next sumers less compelled to immediately its slower connec- in its Galaxy range next year. And in IDC, the iPhone accounts for almost 60 generation of high-speed phone services make the jump. This time, 5G boosters tion, known as 2G China ― the largest market for smart- percent of Apple’s revenue and is the coming next year, according to people argue the switch is a much bigger speed EDGE, wasn’t a phones ― major producers Oppo and foundation of the company’s push for familiar with its plans. upgrade, making Apple’s decision to deal breaker for Huawei Technologies also have indicat- sales in consumer services such as mu- The delay may make it easier for wait riskier. The networks will open the early adopters. ed they plan to offer 5G phones. sic, video and cloud storage. rivals like Samsung Electronics to win floodgates to new types of mobile com- Even the iPhone “Apple has always been a laggard in Since 2011, Apple has debuted all over consumers to phones that connect puting, 5G advocates say. 4S with its flashy cellular technology,” said Mark Hung, major new iPhone models in either Sep- to 5G networks, which will provide a The decision to sit on the sidelines features like a an analyst at Gartner. “They weren’t im- tember or October. The company, how- leap forward in mobile data speeds when may be related to the company’s feud stainless steel pacted in the past, but 5G is going to be ever, has released mid-cycle updates like they are introduced in 2019. with Qualcomm, the leader in 5G-en- frame and the much easier to market. But if they wait the Verizon iPhone 4 in February 2011, As with 3G and 4G, the two previous abled chips, and its alliance instead with promise of Siri beyond 2020, then I think they’ll be im- geared toward specific networks. It also generations of mobile technology, Apple Intel, which won’t have chips available were enough for pacted.” launched a smaller model, the iPhone will wait as long as a year after the initial in time to support 2019 phones. some to ignore its Apple also is under more pressure SE, in March 2016. deployment of the new networks before Apple didn’t respond to requests for lack of true 4G to keep its iPhone customer base. The Huawei and Samsung can build 5G its main product gets the capability to comment. LTE speeds. company has lost a fifth of its value the modems ― not just Intel and Qualcomm. access them, said the people, who asked In the past, it hasn’t been a problem But going into past two months amid a tech stock rout But Apple is unlikely to use chips from not to be identified discussing the plans. for the California-based company to wait 2019, the stakes and reports of suppliers cutting forecasts, competitors, and the companies may Apple’s previous calculations ― a year after much of its competition to re- have changed: the signalling the new models introduced in also struggle to produce enough supply proven correct ― were that the new lease phones compatible with the latest leap from 4G to September aren’t selling as well as an- for the iPhone’s huge volumes ― more networks and the first versions of rival wireless networks. The original iPhone 5G is significant enough that it may be- ticipated. While the global smartphone than 200 million a year. – Bloomberg Marlboro maker in investment talks The Financial Gazette @FingazLive with cannabis firm LTRIA, the maker of Marlboro cigarettes, is in talks with a Canadian cannabis producer over a potential investment in the firm. ACanada's Cronos Group confirmed the discus- Introducing sions but said it had not yet reached an agreement. This follows reports that Altria was in talks to acquire Cronos as it moves to diversify from tradition- The Financial Gazette al smokers. Canada legalised recreational cannabis in October ― the second country in the world to do so. Cronos confirmed in a statement “it is engaged in discussions concerning a potential investment by Altria Group Inc. in Cronos Group”. “No agreement has been reached with respect to any such transaction and there can be no assurance such discussions will lead to an investment or other transaction involving the companies.” Several other companies around the world are pushing into the marijuana sector. Corona beer owner Constellation Brands has said it would pour some $4 billion (£3.1 billion) into Canada's top cannabis producer, Canopy Growth, in a deal marking the largest investment in the industry to date. Tobacco firm Imperial Brands is investing in UK biotech company Oxford Cannabinoid Technologies, while a recent media report said Coca-Cola was in talks with Canadian producer Aurora Cannabis about developing marijuana-infused beverages. Canadian Prime Minister Justin Trudeau cam- paigned to legalise cannabis, arguing laws criminal- ising its use were ineffective given Canadians are among the world's heaviest users. Cannabis possession first became a crime in Can- ada in 1923 but medical use has been legal since 2001.- BBC South Africa moves out of recession as economy grows 2.2%

OUTH Africa’s economy grew 2,2 percent in the third quarter after contracting by a revised S0,4 percent in the second and has now exited the recession, Statistics South Africa announced on Tues- day. Risenga Maluleke, the Statistician-General, said that the economic growth was mainly driven by the manufacturing, transport and finance industries. e-Paper The economy fell into its first recession since the 2009 global financial crisis in the second quarter with the economy contracting 0,4 percent in the period fol- Subscribe Now and get FULL access! lowing a 2,6 percent plunge in the first quarter of the year. The agriculture sector, which plunged 29,2 percent in the second quarter, rebounded 6,5 in the quarter under review. The primary sector however contracted by 5,4 percent in the third quarter driven by decreased mining production in platinum group metals, iron ore, gold and copper and nickel. In contrast, the secondary sector grew by 5,4 per- www.fingaz.co.zw 2nd Floor, Green Bridge South Eastgate Complex, Harare, Zimbabwe T: (+263-4) 781 571/7 cent with positive growth largely driven by manufacturing in basic iron and steel, metal products. – IOL Page 22 | December 6-12 2018 The Financial Gazette Companies & Markets Forex shortages weigh down Nampak Omega Ukama “The difficulties currently being ex- which contributed to an enhanced per- on the prior year”. Business Reporter perienced in the economy have made formance. Hunyani’s volumes and net revenue business more challenging than at any $9,2m The company reported a profit after for the operating divisions improved ACKAGING products manufac- time in the recent past. Domestic infla- Profit after tax tax of $9,2 million, up from $4,9 mil- from the prior year as demand for com- turer Nampak Zimbabwe says its tionary pressures are building up and are (88% increase) lion in the prior comparable period, an mercial packaging continued to rise. Pperformance during the year end- likely to erode some of the consumer increase of 88 percent. “Performance in the tobacco carton ed September 30, 2018 was constrained gains made in the past year. “Sales to the group’s customer base sector was solid. The resultant operating by foreign currency shortages. “Unless appropriate policies are $116,8m recovered considerably, as demand im- profit was substantially ahead of the pri- The country has persistently run implemented to resolve the underlying Revenue proved during the year, which contrib- or year, spurred by higher volumes and trade deficits since dollarisation in 2009, economic problems, it is possible that in uted to an enhanced performance,” the overhead cost containment,” the compa- plunging the economy into an intensify- the year ahead there may be a contrac- (21,3% increase) company said in a comment accompa- ny said. ing foreign currency shortage that has tion of the economy, which could impact nying its financial statements. Mega Pak’s volumes and net rev- threatened the viability of businesses. on manufacturing output,” the company exchange was that the company’s South Revenue increased by 21,3 percent enues were significantly up on prior “Generally, the group’s performance said. Africa shareholders reviewed, and sub- during the year, from $96,3 million to year, led by a recovery in demand from could have been significantly better, During the period under review, the sequently limited, “their support at the $116,8 million. major customers, growth in exports to but was constrained as foreign curren- crisis intensified, with the industrial sec- commencement of the third quarter, The group’s machinery company, the Democratic Republic of Congo and cy availability remained well below the tor facing serious difficulties as a result thereby curtailing their escalating expo- CarnaudMetalbox’s volumes and net capacity enhancements with operating group’s requirements,” the company of the acute foreign exchange constraints sure”. revenue improved compared to the prior profit well ahead of the prior year. said in a comment accompanying its that impacted on raw material procure- Nevertheless, sales to the group’s year as “demand recovered, particularly The group’s tissue paper division, financial statements for the year ended ment. customer base recovered considerably, from the beverages sector, resulting in Softex also traded profitably. September 30, 2018. A consequence of the lack of foreign as demand improved during the year, operating profit being substantially up [email protected]

ZIMBABWE ELECTORAL COMMISSION VACANCY NOTICE The Zimbabwe Electoral Commission (ZEC) is an independent electoral management body [EMB] established in terms of … as Zimplow Section 238 of the Constitution of Zimbabwe. Its major functions are to manage and conduct elections to the offices of the President, Parliament and local authorities, and referendums, and all related electoral processes in accordance with the laws of Zimbabwe and also following international best practice. fails to restock Nelson Gahadza The Commission wishes to recruit a professional of high integrity with good communication and decision making skills, and Business Reporter sound knowledge of electoral democracy to a vacancy that has arisen in the institution. IMPLOW Holdings says it is failing to restock due JOB TITLE OF VACANCY : CHIEF ELECTIONS OFFICER (CEO) to limited foreign currency availability, as most of its REPORTING TO : THE CHAIRPERSON OF THE COMMISSION AND THE COMMISSION Zproducts are imported. The diversified agro-concern is the largest manufacturer and distributor of farming implements in sub-Saharan Afri- JOB DESCRIPTION SUMMARY: ca and operates through four divisions ― Barzem, Mealie Guided by the law and the policy direction of the Commission, the CEO is the accounting officer of the Commission, Brand, CT Bolts and Farmec. responsible for:- The company also manufactures and distributes metal • Strategizing, formulating and coordinating the activities of the Commission in the conduct of all referendums and fasteners for the mining, construction and agricultural industries. elections to the offices stipulated in the law; “Foreign currency shortages are a big concern for us and, • Managing all the assets and funds of the Commission to ensure effective and efficient utilization for the attainment of with limited access, we are unable to restock,” Mark Hulett, the Commission vision and mission; the group's chief executive, told The Financial Gazette. • Guiding the Commission on policy and electoral law reviews The group’s business segments are well contoured to the Implementing decisions of the Commission in its discharge of its constitutional mandate; growth sectors of the Zimbabwean economy, agriculture and • mining. • Conducting Delimitation, Voter Registration and Elections effectively and efficiently; However, like any other company in Zimbabwe, its op- • Human resourcing and development of the Commission staff; erations are facing acute product supply due to foreign pay- • Providing strategic leadership to all Commission staff as the Head of the Secretariat; ment challenges. Several companies have been meeting their • Enabling the Commission to discharge its Constitutional mandate professionally and transparently whilst maintaining import needs through the Reserve Bank of Zimbabwe (RBZ) priority list and support from local banks. The RBZ priority the Commission’s accountability for the conduct of referendums and elections to public office; list was, as at June this year, saddled with a backlog in excess • Engaging all stakeholders of the Commission in a manner that promotes professionalism and integrity of the Commis- of $600 million. sion; and Zimplow is involved in tractor assembling, spare parts, • Representing the Commission at national and international forums. bolts, most of which are not locally manufactured. Hulett said the company forecast a drier than normal to normal rainy season for 2018/19. However, that will not af- KEY COMPETENCIES fect it much. • An administrator par excellence; “After a late start, the season still has good potential for • A strategic thinker and decision maker; maize, tobacco, cotton and soya production,” he said. • An effective communicator both orally and in written form; He said the company is also doing well on exports on • A visionary leader and the back of a good quality product but there was not much growth despite solid demand from regular customers. • A person of impeccable integrity. Hulett said the group was on solid ground, with good cash generation, and expects strong demand for agricultural, con- QUALIFICATIONS: struction and mining equipment. • A good first degree in Administration, Social Sciences, Law, Information Technology, Business Administration, Educa- Profit after tax for the six months ended June 30, 2018, jumped a massive 500 percent to $1,6 million, from $262,737 tion or any other relevant qualification. during the first six months of 2017, driven by improved prof- • A relevant Master’s Degree or any other post graduate qualification; itability across all units. • Proven track record of performance, delivery and good governance, Group revenue was 38 percent higher at $20,3 million • Knowledge of elections is an added advantage from $14,7 million during the same period the previous year. At the same time, gross profit (GP) margins expanded from 30 percent to 35 percent. Interested and qualified persons must apply in writing, attaching their detailed and updated curriculum vitae and certified In terms of the business segments, revenues at Mealie copies of their qualifications. Send applications to: Brand were down 22 percent to $3,4 million from $4,3 mil- The Chairperson lion during the same period the previous year largely on the Zimbabwe Electoral Commission back of reduced local and export sales. Mahachi Quantum Building Farmec, the tractors business, swung from a loss-making position to a profit before tax of $947 000. 1 Nelson Mandela [Corner Kaguvi Street/Jason Moyo Avenue] Barzem revenue went up 47 percent to $7,1 million, from P.Bag. 7782 Causeway $4,8 million the previous year on the back of parts and ser- Harare, Zimbabwe vice. Parts revenue went up to $3,9 million and service hours were up 69 percent to 5 139 hours. The above post is at Head Office in Harare. Only shortlisted applicants will be invited for interviews. The remuneration CT Bolts profit improved to $309 000 from $18 000 the previous comparative period and the unit continues to per- packages will be revealed during the interviews. The closing date for receipt of applications is 28 December 2018. form well in its market and is well stocked and positioned to perform ahead of budget. [email protected] The Financial Gazette December 6-12 2018 | Page 23 Page 24 | December 6-12 2018 The Financial Gazette The Financial Gazette December 6-12 2018 | Page 25 Page 26 | December 6-12 2018 The Financial Gazette National News Economic turbulence Innscor volumes rocks SeedCo firm in first quarter Nelson Gahadza availability. Omega Ukama Business Reporter Despite that, consumer demand remained Business Reporter robust with volume growth of 26 percent, NNSCOR Africa (Innscor) says while its driven by the maize division, where volumes ISTED seed producer SeedCo says it expects volumes in the first quarter to September increased by 55 percent over the comparative Zimbabwe’s current economic situation to 2018 were firm across the group, gross period as the maize harvest was lower than last have an adverse impact on its trading year. L Iprofit percentages remained under pressure, season. Consumers also elected to sell their Zimbabwe’s official inflation, which many be- with cost increases in both local and imported maize to the GMB. lieve to be grossly understated, was reported at 20,85 bills of materials. Volumes at the stockfeed division grew percent for October, effectively putting the country Julian Schonken, the group’s chief execu- 44 percent over the same period, largely on in high inflation and underpinning an economic cri- tive, yesterday said operating expenditure was the back of a recovery in the poultry market sis that has been headlined by a monetary crisis with well controlled during the quarter, and oper- following an outbreak of Avian Influenza last worsening foreign currency challenges. ating expense to gross margin ratio continued year while Snacks and Treats saw volumes in- “It is going to be a challenge, we expect to report to reduce, allowing for improved operating creasing by 48 percent. a decent profit at year end but the growth prospect we leverage. “The flour unit continued to operate at max- were thinking of is probably not going to materialise. “However, substantial inflation in operat- imum capacity during the period. The compa- “There is going to be an adverse impact from the ing costs has taken place following the close of ny continues to work closely with the Reserve economic turbulence that we are facing. Our biggest the first quarter and thus remains a key focus Bank of Zimbabwe to manage funding for its concern is the inflationary environment,” Morgan area to ensure competitively priced goods in wheat import requirements,” said Schonken. Nzwere (pictured), SeedCo’s chief executive, said at a highly volatile market,” he said in a trading He added that efforts to develop a local raw an analyst briefing in Harare on Tuesday. ing the money you are paying us is not enough. So update at an annual general meeting. material pipeline are ongoing through support “This is worsened by the fact that our product is a it’s a very difficult situation, we need to make sure Schonken said as with most other business- to local farmers. public good or a mass product and trying to increase that they grow produce, but we also need to make es, currency challenges exist across the port- At Bakers Inn, demand remained extreme- the price of a mass product or to sell it in US dollars sure that our costs are kept under check,” he said. folio, and the group looks forward to mecha- ly firm in the bakery operations in the face of will attract quite a lot of attention,” he said. The company, however, had a good half-year nisms that will be put in place by authorities steep inflation in the selling price of competing Recently, backlash from government and the pub- after posting a profit from continuing operations of to ensure the market can trade adequately, and substitutes and a controlled loaf price. He said lic forced the company to reverse price adjustments $5,9 million for the six months ended September 30, that uninterrupted local production can contin- loaf volumes increased by around 16 percent it had effected in line with inflation developments. 2018 coming off a $2 million loss in the prior com- ue. over the comparative period. “We are faced with a situation where we cannot parable period. Innscor is a manufacturer of consumer, Total volumes at Colcom in the pork oper- adjust our prices but the costs are going to be affect- The half year profit, which was attributed to early staple and durable goods for the mass market, ation were 28 percent ahead of those recorded ing us,” Nzwere said. maize seed sales under public support initiatives for through an integrated portfolio of businesses. in the comparative period, with good perfor- He said the worsening foreign currency shortages agriculture, is uncommon for the seed company that During the period under review, the com- mances across the core fresh, processed and had negatively affected the company’s procurement. has traditionally reported interim losses on account pany's product supply was largely consistent pie categories. “Will the farmers that buy our seed be able to af- of the seasonality of its business. to the market in most categories although sup- Overall, the rest of the group's units ford the seed and when we subcontract farmers to The company had previously incurred losses of plies of some products which use imported raw achieved steady volume growth despite chal- grow seed for us, what price are we going to be pay- $9,29 million, $5,57 million and $7,63 million in the materials such as cooking oil and salt have, lenges in raw materials and foreign currency. ing that seed for. comparable periods in 2016, 2015 and 2014, in that at times, been impacted by foreign currency [email protected] “The growers are also clamouring for more, say- order. [email protected] The Financial Gazette December 6-12 2018 | Page 27 National News SA leads Zim investments Omega Ukama uary and June this year, major companies such as Mubaiwa said. in interest and sentiment about the country. Business Reporter Impala Platinum-owned Zimplats and others have Nonetheless, the latest statistics also show or “Under the new dispensation, there is gradual always led the trend and league. represent a marked improvement from a figure of restoration of business confidence, with many in- OUTH African investments remain at the top But Richard Mubaiwa (pictured), the ZIA chief two percent in 2017 and Mauritian inquiries have vestment inquiries from all continents,” Finance of approved projects and capital inflows into executive, says it does not always mean that “ap- equally improved ― from a single digit last year minister Mthuli Ncube said in his pre-budget state- Sthe country, figures from the Zimbabwe In- proved projects would be converted into actual to 32 percent ― in the same period under review. ment. vestment Authority (ZIA)’s half year report show. investments”. Chinese projects, meanwhile, have actually “During the first half of 2018, ZIA received 165 This also comes against the background of a “There is no way for us to know how much of dipped from 19 percent last year to only 10 per- applications worth $15,8 billion, over and above long established fact and phenomenon that Preto- it will be converted to actual investments because cent. other investment inquiries with various line minis- ria remains Zimbabwe’s biggest trading partner, there is no precedent,” he told The Financial Ga- This comes as FDI into the southern Africa tries and other individual companies,” he said. and there has been renewed debate for Harare to zette last week. country has generally waned from $545 million in “Government is pursuing the various invest- adopt the rand in a bid to stabilise the economy. “It doesn’t mean that once an investment is ap- 2014 to $289 million in 2017 on the back of a de- ment inquiries with the objective of increasing the With investments from South Africa (SA) proved, it is all converted into FDI in a particular teriorating socio-political environment. share of external investment from $1,8 billion an- making up about 35 percent of all foreign direct year. Even if we are to approve… all applications, Following Robert Mugabe’s fall in November ticipated in 2018 to over $2 billion in 2019,” Ncu- investments (FDI) approved by ZIA between Jan- we do not expect them to fall in the same period,” last year, there has been a slight change and uptick be said. [email protected] Demand for poultry meat set to decline Tabitha Mutenga The poultry breeding industry has shown remarkable recovery from Features Editor the impact of destocking caused by the 2017 Avian Influenza. In the third quarter of 2018, broiler breeder stocks (growing and in-lay) averaged EMAND for poultry products is expected to decline during the 610 974 birds per month. first half of 2019 as increased costs of production and product Hatching eggs production from local broiler breeders averaged 5,7 Dprices effectively reduce the purchasing power of consumers, the million per month in the third quarter, being 24 percent higher than sec- Livestock and Meat Advisory Council (LMAC) has said. ond quarter and 11 percent higher than third quarter of 2017. In its November Livestock Market Update, LMAC said the emer- However, the country still significantly relies on imported hatching gence of the parallel exchange market had negatively affected the cost of eggs to support farmer demand for broiler day-old chicks. Imported production and pricing of products. hatching eggs averaged five million per month. Prices have increased from $6 for one bird to $15 per bird, depending “For the period January to September 2018, a record total 66,8 mil- on weight. lion chicks were produced which was a 34 percent increase on the same “The third quarter of 2018 continued the upward trend in broiler pro- period in 2017. Prices of chicks in the third quarter increased by eight duction witnessed in the first two quarters. Going forward however, the percent to $104 per 100 chicks compared to the second quarter, which situation is likely to be quite different. Towards the end of the third quar- was about $96,” LMAC said. ter, the acute foreign currency shortages have resulted in the emergence Total meat production for the period January to September 2018 was of parallel exchange markets that are likely to increase cost of production “This is expected to translate into reduced demand for poultry prod- 105 402 tonnes, an increase of 38 percent compared to the same period and product prices, effectively reducing the purchasing power of con- ucts. Thus, after the traditional festive season rise in demand, the first half last year, while average prices had shown increases in September of 20 sumers. of 2019 is likely to witness a slowdown,” the LMAC update said. 18. [email protected] Page 28 | December 6-12 2018 The Financial Gazette National News Govt spending cause Taxes to slow down of inconsistencies economic activity Adelaide Moyo economy could generate revenues Adelaide Moyo ments. Business Reporter amounting to $6,6 billion in 2019, in- Business Reporter “The key strategy for the year was cluding retentions. growth in sales volume, with a resultant HE increase in taxes may slow Ncube announced that the Inter- LECTRICAL retailer Powerspeed improvement in our purchasing power. down economic growth next mediated Money Transfer Tax of two says financing of government ex- To mitigate the erratic supply lines, we year and cut consumer spend- cents per dollar transacted introduced Ependiture has led to inconsisten- increased inventory,” he said. Ting, an asset manager has warned. in October, was a critical revenue cies between the United States dollar and He added that the group’s borrowings In a note to investors, Zimnat stream, especially considering the RTGS-denominated values. remained high as Powerspeed was forced Asset Management said next year’s need to finance unavoidable expendi- Simba Makoni (pictured), the Power- to hold additional inventory. monetary policy, which they believe tures without recourse to debt creating speed chairman, said despite the political “Although increased inventory meant is likely to be contractionary and fo- instruments such as Treasury Bills. changes that occurred last year, the coun- high levels of borrowings, it also meant cusing on tightening liquidity, could He also said vehicle imports will try's economic direction remains uncer- good growth in income, market share and accelerate the economic slowdown now be taxed in foreign currency as tain. more importantly profitability,” Makoni initiated by the fiscal policy. this will “redirect use of scarce for- Since 2016, parallel exchange rate said. premiums have gradually risen as money Inventory was up from $14,604 mil- “We believe the increases in tax- eign currency to the productive sec- supply has ballooned largely as a result of tion in throughput in the last two months lion to $19,635 million during the period ation across the entire economy, tors of the economy.” the money creation effect of government’s because the economic uncertainty has under review. coupled with a significant decline in Zimnat said: “Government’s new financing of its budget deficit through do- been exacerbated by significant upward During the period under review, the government spending (contraction- controversial policy of levying duties mestic credit. pressure on expenses as suppliers and ser- group faced erratic supply of local and ary fiscal policy), may translate into in foreign currency for luxury goods “Economic activity has been largely vice providers attempt to preserve or re- imported products. a slowdown in economic activity in such as motor vehicles, may trans- driven by excessive consumptive expen- gain value lost as a result of the exchange “Imports were hampered by various 2019,” Zimnat said. late to either a decrease in demand diture but government financing of this differential between the RTGS dollar and trade barriers, notably Bereau Veritas, “A slower economy means weaker for such goods, which contributes to consumptive expenditure has led to a the US dollar,” Makoni said. import licences, punitive duties and re- consumer demand (lower disposable lowering the trade deficit, because of growing disparity between the values of “While these conditions will inevita- strictions on foreign payments. Local incomes), which may affect industry the higher costs of importing them or the RTGS dollar and the US dollar,” Ma- bly dampen profitability, we believe that manufacturers also experienced similar output and volumes growth. Cou- may translate to an increase in foreign koni said. the hardware and building materials mar- problems in sourcing raw materials in pled with foreign currency shortages, currency receipts for government, if The listed firm said the fiscal and mon- kets are relatively recession proof and that addition to operational constraints such as which are expected to persist in 2019, the demand for the imported luxu- etary policies announced in October and brisk demand will continue even when the power cuts and high costs of production,” industrial output is expected to re- ry goods remains unchanged. Either in the budget have added further burdens economy is performing poorly.” Makoni said. main subdued, as imported raw mate- way, government wins.” Meanwhile, Powerspeed's profit was to the formal economy. Assets were up at $36,762 million rial supplies remain difficult to secure Treasury also increased excise up $4,201 million during the year ended These burdens are likely to depress the during the period under review from or are expensive.” duty on fuel, with duty on petrol and growth of the economy, he said. September 30, 2018 from $1,091 million $27,710 million recorded in previous Taxpayers are likely to continue diesel going up by 6,5 cents and seven But the group is pinning its hopes on during the previous comparable period. comparable period. to suffer from more taxes as Treasury cents, respectively, to 38,5 cents and statements by government indicating pos- Revenue was up 53 percent to $82,496 The group’s turnover increased 53 itive policies and actions in future. million during the review period com- percent to $82,5 million. Powerspeed de- is banking on taxes to finance a huge 33 cents. Powerspeed said economic uncertain- pared to $40,544 million recorded in prior clared a dividend of 0,4 cents per share for chunk of its budget. Excise duty on cigarettes is now ty had seen a reduction in throughput. comparable period driven by an increase the first time in over a decade. Finance minister Mthuli Ncube up at $25 per 1 000 sticks, from $20. “Unfortunately, we have seen a reduc- in volumes as well as modest price adjust- [email protected] said in his budget statement that the [email protected]

For the week ending 5 December 2018 The Financial Gazette December 6-12 2018 | Page 29 Page 30 | December 6-12 2018 The Financial Gazette National News ‘No currency reforms, no recovery’

Tabitha Mutenga Features Editor

IMBABWE’S economy will not recover unless government pays full atten- Ztion to the issue of currency reforms as the distortions in foreign currency pricing are causing inflationary pressures, Parliamentary watchdog Veritas has said. The Real Time Gross Settlement (RTGS) system and bond notes remain the major mode of payment in Zimbabwe’s multi-currency system, with the US dollar being the currency of reference. The US dollar is currently trading at a premium on the black market, which has been outlawed by government through leg- islative measures but remains vibrant. How- ever, government insists that bond notes and RTGS-generated cash is at par with the green- back. “Zimbabwe cannot get on a firm econom- ing to employment costs, support to agriculture, ic footing until this issue is dealt with. To go as well as development capital expenditure and on pretending that the US dollar and the bond net lending, primarily to public enterprises. note are at a par is an insult to Zimbabweans’ According to Ncube, the primary objective of intelligence. the 2019 budget is to stabilise the economy by “This neglect in dealing with the currency targeting the fiscal and current account deficits, issue means that all measures in the budget will which have become major sources of overall hit the poor who are mostly reliant on bond economic vulnerabilities including inflation, notes and coins and local money transfers and sharp rises in indebtedness, accumulation of have no access to foreign currency. It also hits arrears and foreign currency shortages. the erstwhile middle class such as teachers, “Does the government as a whole have the nurses and lower paid civil servants,” Veritas will to comply with austerity measures? The said while commenting on the 2019 national minister said the austerity proposals in the bud- budget presented by Finance minister Mthuli get are aimed at creating additional financial Ncube (pictured) last month. capacity to fund developmental expenditures The currency reforms will include mea- and enhance delivery of essential services. This sures to bring harmony between RTGS balanc- additional financial capacity may not come es and foreign currency resources on the mar- to pass if the budget proposals are not fully ket. A five-tier pricing system comprising the implemented. Implementation depends, not US dollar, bond note, mobile money, RTGS on the minister alone, but also on his Cabinet and the Old Mutual Implied Rate is now prev- colleagues and the staff of their ministries, and alent in Zimbabwe. the State-owned enterprises for which they are “Not tackling the currency issue leads to a responsible.” disconnect in the budget. On the one hand, the Veritas added that the 2019 national budget minister maintains that the US dollar and bond was not pro-poor as the increase in the tax-free notes and RTGS currencies are at par, while personal income threshold from $300 to $350 on the other he recognises that there is a vast was not enough to make a real impact on the difference in value, as demonstrated by his jus- lives of wage-earners in Zimbabwe. tification for the increase in tax on petrol, diesel “The proposed raising of the personal in- and paraffin, the measure requiring import duty come tax threshold from $300 to $350 has on motor vehicles and a host of other commod- been criticised as insufficient to make a real ities to be paid in US dollars and the idea that impact on the lives of wage-earners, especially VAT collected in US dollars must be remitted if they are receiving their wages by RTGS or in to ZIMRA in US dollars,” Veritas said. bond notes currency. The economy is currently facing a huge “The drop in the buying capacity of the debt, foreign currency and cash shortages, high bond currency will impact hugely on lowly inflation and high government expenditure. paid workers, for example agricultural work- The budget deficit for the period January to ers will earn in real US dollars about $10 a September stands at $2,7 billion and the deficit month,” Veritas said. is on account of unbudgeted expenditures relat- [email protected] Tough times with austerity in the midst of poverty From Page 6 have also joined the chorus with Ncube It is against this backdrop that captains announcing that customs duty and all other of industry and economists felt there was taxes on imported motor vehicles and sever- a compelling reason for the minister to al other goods will now be levied in foreign rein on the current market indiscipline and currency. multi-tier pricing structures by introducing This is certainly a case of the left hand far reaching currency reforms in particular not knowing what the right hand is doing as exchange rate liberalisation. Conscious of the distortions will continue to the detriment the disastrous consequences of the October of economic stability. 1 policy pronouncement, Ncube decided to The government is applying the parity toe the official position by maintaining the policy when it suits them and exporters with exchange parity between the bond notes/ low retention percentages will be the main RTGS balances and USD insisting the tim- losers because local cost structures are based ing for currency reforms was not ripe. on RTGS prices which are on average three Government policy cannot change facts times higher than USD prices. as the market has gradually started rejecting For the good of the economy the bond payments in bond notes preferring USD note should be allowed to float and gradual- cash including airlines, real estate compa- ly phase out within a reasonable timeframe nies, car sales and pharmaceutical compa- to allow for re-dollarisation and restoration nies. Surprisingly government urgencies of price stability. Life & ArtsNews Worth Knowing

December 6-12 2018 Page 31 Exploring Mauritius on a budget

APPY hour at Be Cosy Apart ally situated in Trou aux Biches, once butterfly fish, sea urchins, and parrot Mauritius. None of the creole dishes The Triolet bus was on time to take us back to Trou aux Hotel in Trou aux Biches, a quiet 19th century fishing village in fish. Flippers are provided for snorkel- I tasted was anything to write home Biches, dropping us off outside the police station, opposite Be HMauritius, is an opportunity to the north of the island. Serviced stu- ers wanting to explore marine life at about; often the spices had a raw taste Cosy. It was five o'clock and bang on time for Happy Hour and taste ‘rhum agricole’, a product of the dio apartments have compact, fully closer quarters. or the dish was lacking in piment (chil- another rum cocktail. Comments to: [email protected] Mauritian sugar industry that’s taking equipped kitchens, and charge $107 Having worked up an appetite on li). the global rum market by storm. a night. A visit to Mauritius is not just about This smooth, traditional molasses Our upstairs studio overlooked lazing on the beach and munching rum is often infused with local crops palm trees, a tropical garden and a A Matter of Taste pineapples and litchis (both delicious). and spices, such as vanilla, chilli, lem- swimming pool surrounded by sun One of the top places to visit are the on grass and ginger. At two for the loungers, green lawns and happy hol- with Sir Seewoosagur Ramgoolam Botan- price of one, it was tempting to visit iday makers. ical Gardens in Pamplemousses. Be- the pool-side bar every evening of our Fluffy brown beach towels can be Charlotte Malakoff cause taxis and car hire are pricey, we ten-day visit to the Pearl of the Indian collected every day from reception, paid a few rupees for the antiquated Ocean, running through the gamut of while the beach and placid blue ocean but speedy red and white Triolet bus, flavours. George, however, was con- are a two-minute walk away, past gift which took us to the gardens and back. tent with the pale gold, locally-brewed shops, a post office, an ATM and a the beach, there are many restaurants We spent hours admiring the many Phoenix lager. grove of casuarina trees. offering Mauritian, French and Chi- palm tree species, and the Victoria am- Tourism earns Mauritius billions of There are no sun loungers on Be nese cuisine to choose from. Souvenir azonica giant water lilies in the pond in rupees every year, and holiday makers Cosy’s section of the beach, but lay Restaurant on Royal Road, Trou aux the middle of the gardens. can find a wide range of accommoda- your towel down on the soft, white Biches, is always packed with both An avenue of trees planted by nu- tion to suit every pocket. Stay at a five sand, and try not to cast an envious eye tourists and locals, despite the seating merous dignitaries includes a Gasto- star hotel in a deluxe suite, breakfast on Beachcomber Hotel's sun loungers area being close to the pavement, traf- nia Mauritiana, an endangered tree of included, with a view of the turquoise farther down the beach. Indulge in- fic lights and noisy buses. Mauritius, planted by the former presi- waters of the Indian Ocean, for an eye stead to your heart's content in the wa- We visited twice, first for delicious dent, Robert Mugabe, in 1991. watering $1 240. ter sports, free for Be Cosy residents. smoked marlin panini, salad and chips, Lotus flowers bloom peacefully At the other end of the spectrum, Move sedately across the waters and later, for a leisurely evening meal and serenely in their watery expans- book a studio apartment with local in a pedalo, paddle a kayak out to the of creole curried lamb, Rs370, and fish es, observed by admiring tourists and hosts at Mon Choisy for $43, or visit reef, or get a full body core work out and chips Rs350. photographers. Don’t miss seeing a tree house with all mod cons near on a stand up paddle board. A trip to Fish, whether fried, grilled or these beautiful blooms, symbols in Belle Mare Beach for $79 a night. the coral reef on a glass bottomed boat smoked, is always fresh, well-cooked, many religions of long life, honour, Be Cosy, a three star hotel, is ide- reveals shoals of brightly coloured and a good choice when eating out in health and good luck. TENNIS star, Andy Murray (31) will use his protected ranking of world number two to gain entry to Janu- ary’s Australian Open. The Briton, ended his season News Worth Knowing early to focus on making “big improvements”, having played in six events since returning from hip surgery Sport in June. Page 32 December 6-12 2018 SPORT SHORTS Alonso to use Chevrolet engine

FERNAND Alonso will use a Chevrolet engine for his bid to win the In- dianapolis 500 next year, his McLaren team have confirmed. The announcement was a formality because Honda, the only other engine manufacturer in In- dycar, had refused to supply an engine for Alonso's car. The two-time Formula 1 world champion will have the engine that set pole and won the prestigious race in 2018. Alonso, 37, retired from F1 at the end of the 2018 season with 32 victories. The Spaniard has set himself the target of winning motorsport's unofficial triple crown, of the Monaco Grand Prix, Le Mans 24 Hours and the Indy 500. Alonso won Monaco twice — with Renault in 2006 and McLaren in 2007 — and triumphed at Le Mans on his first attempt this year in a Toyota with co-drivers Sebastien Bue- mi and Kazuki Nakajima. Only Graham Hill has won all three events. — bbc.com

Luka Modric (left) ended a decade of dominance by Lionel Messi and Cristiano Ronaldo by winning the 2018 Ballon d’Or while Norwegian Ada Colin Kaepernick snubbed Hegerberg was the first female Ballon d’Or winner. — Graphic by Darius Mutamba THE Washington Redskins “discussed” signing quarter- back Colin Kaepernick but decided to go in a “different direction”, says head coach Jay Gruden. The Redskins have lost their two senior quarterbacks to injury. Kaepernick has not played since January 2017 Good and bad in Ballon after protesting against racial injustice and police brutal- ity by kneeling during the US national anthem. He has filed a grievance against NFL team owners he claims conspired not to hire him because of his protests. Kaepernick has been without a team since he opted d’Or twerking uproar out of his contract with the San Francisco 49ers in March 2017. He was the first player to kneel during the US national anthem. Other players followed suit, leading to criticism from US President Donald Trump. — bbc.com IRST, the good news: In his apology, she was determinedly 2018, a man can no lon- Ballon d’Or 2018: The top 10 cheerful by time she came to speak Fger disrespect a trailblazing to waiting reporters. sportswoman on global TV without “I wasn’t upset,” she said. “I got incurring instant opprobrium. 1. Luka Modric (Real Madrid 6. Mohamed Salah (Liverpool to dance a bit and I got the Ballon French DJ Martin Solveig and Croatia), 2. Cristiano Ron- and Egypt), 7. Raphael Varane d’Or.” learned this to his discomfort when aldo (Juventus and Portugal), (Real Madrid and France), The visibility and status that he asked Ada Hegerberg to twerk 3. Antoine Griezmann (Atletico 8. Eden Hazard (Chelsea and comes with that trophy will give just after she became the first fe- Madrid and France), 4. Kylian Belgium), 9. Kevin de Bruyne Hegerberg more power to push male winner of the Ballon d’Or and Mbappe (Paris St-Germain (Manchester City and Belgium) the cause of women’s soccer. She used her victory speech to appeal to and France), 5. Lionel Mes- and 10. Harry Kane (Totten- is already putting that leverage to girls everywhere to “please, believe si (Barcelona and Argentina), ham and England) use. She told the AP in an inter- in yourself.” view shortly before she picked up Immediately after the awards overshadowing the achievements Miley Cyrus rubbing against Rob- her trophy that she won’t play in Tyson Fury vs Anthony Joshua ceremony ended, with outrage al- of women. in Thicke at the 2013 MTV Video the Women’s World Cup in June in ready frothing on social media, And Hegerberg’s achievements Music Awards. France because of a dispute with the FRANK Warren is ready to sit down with rival promoter Solveig still couldn’t see why his are immense. The steely forward is That Solveig did so with Hege- Norwegian federation. Hegerberg Eddie Hearn and agree a deal for Tyson Fury to fight An- inappropriate suggestion to the a three-time winner of the Women’s rberg immediately struck many as hasn’t played for the national team thony Joshua. While a rematch for Fury against Deontay 23-year-old Norwegian was caus- Champions League with French icky. since last year because of what she Wilder after the controversial draw seems a more likely op- ing such upset. club Lyon. Given her young age “Why do woman still have to perceives to be a general disregard tion, Warren seems desperate to sort a “Battle of Britain” “It was a joke. You must have a and current fearsome pace of 41 put up with that [expletive]?” tennis for women’s soccer in Norway. blockbuster. bit of a sense of humour,” he told goals in 41 games in the tourna- player Andy Murray wrote on Ins- “It’s all about how we respect Both he, Fury and Joshua all spoke about a potential The Associated Press as gala guests ment, she seems likely to make tagram. “To everyone who thinks women’s football. I don’t think the heavyweight clash for the future, but Warren isn't so sure filed out of the domed Grand Palais history like Cristiano Ronaldo and people are overreacting and it was respect has been there,” she told AJ’s promoter Hearn wants it. in Paris on Monday and Hegerberg Lionel Messi on the men’s side. Al- just a joke, it wasn’t. I’ve been in- the AP. “Sometimes you have to Speaking on the Alan Brazil Sports Breakfast on talk- posed for photos with her heavy ready, she set a tournament record volved in sport my whole life and take tough decisions to stay true to SPORT, Warren said: “If you did a poll now with the fans golden trophy. with 15 Champions League goals the level of sexism is unreal.” yourself.” for Anthony Joshua’s next fight… what do you think would But then, as a video clip show- last season — including in Lyon’s At the gala for her daughter’s She also expressed frustration be top of the pops there?”. ing Solveig’s interaction with He- 4-1 victory over Wolfsburg in the prize moment, Hegerberg’s moth- with the uneven pace of progress “I'm quite sure (they want) to see the top Brit fighting gerberg started to rack up millions final. er, Gerd, said the impropriety of for women. A few hours later, the top Brit. And there’s all this negotiations now about who of views on Twitter, he understood. Hegerberg appeared visibly Solveig’s remark was initially lost Solveig’s behavior made her words gets what percentage — it’s really simple this fight — it’s Solveig sought out Hegerberg to miffed, shaking her head, respond- on her. ring true. 50/50 down the middle. What? Tyson Fury doesn’t bring explain himself and tweeted “sin- ing with a firm “Non” and then “Let him dance with the queen “Sometimes you have episodes anything to the party? Do you not think if he fought Deontay cere apologies.” turning away after Solveig asked tonight, I was thinking,” she told or situations where you feel like, Wilder over here, 80 000 people wouldn’t turn up to see the “I didn’t mean to offend anyone her on stage in French, “Do you the AP. ‘Damn, we’re in such a man’s rematch? Course they would.” and I didn’t know that this could be know how to twerk?” But when the meaning of twerk world,’” she said. “That could be SunSport reported on Wednesday how AJ has insisted he seen as such an offense,” he said in Had Messi or Ronaldo been was then explained to her, she react- in a daily situation, being a woman, does want to fight either Wilder or Fury — meaning Hearn a video message. standing beside him, it’s hard to ed with dismay, with an expletive. to be honest. Outside of the pitch as has work to do to prove he is not the stumbling block to a The bad news, as the whole imagine the DJ asking them to Hegerberg herself didn’t let well. There’s a lot of discussions to fight. The IBF, WBA and WBO champion has finally spo- sorry episode showed, is that in shake their backsides in the twerk- the uproar mar her evening. After take and to bring on the table as a ken out on social media after being criticised over his si- 2018, the behavior of men is still ing dance made famous by singer meeting with Solveig and hearing woman in 2018.” — AP lence. —TheSun.co.uk