ZIM SLIDES INTO RECESSION ― IMF: Page 3 $4

News Worth Knowing Govt breaks the bank: Page 4

April 11-17 2019 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette

ZSE Report The All Share index added 0,57 percent on Tuesday to close at 124,60 points. Innscor gained Industry $0,1545 to end at $1,4974. Old Mutual rose by $0,0513 to trade at $8,2662 while Simbi- sa picked up $0,0475 to close at $0,7100. The Industrial index was up 0,59 percent to close at 415,57 points, and the Top 10 index gained 1,07 percent to close at 118,49 points. The Minings index was flat at buffeted 192,40 points.

Currencies (Bloomberg) % change USD:ZAR 13,9588 0,93 ◀ EUR:USD 1,1232 0,28 ◀ ◀ GBP:USD 1,3065 0,10 USD: JPY 111,1400 0,13 ◀ Stock Markets ◀ ZSE (All Share) 124,60 2,17 ZSE (Minings) 192,40 0,00 ◀ by fresh JSE 14 158,00 0,20 7 420,25 0,07 FTSE 100 ◀ 0,72

Dow 26 150,58 ◀

Commodities ◀ Gold 1 304,92 0,06 ◀ Platinum 894,63 0,31 ◀ Brent Oil 70,84 0,33

Grains (Grain SA)

White Maize ZAR 2 145,76 ◀ 0,2 ◀ volatility Soya ZAR 4 781,71 0,01 Wheat ZAR 2 491,20 ◀ 0,4

Paul Nyakazeya in the foreseeable future given the low output Online Editor prospects, high unemployment and rising infla- Namibia sticks tion,” advisory firm Morgan & Co warned last IMBABWE’s sickly economy is experi- Friday. to SA rand peg encing severe fresh headwinds, triggered It added that a tell-tale sign of harder eco- Zby spiralling production costs, soaring nomic times ahead was the confirmation by NAMIBIA is ruling out dropping parallel foreign currency rates and a subdued major companies such as Truworths, Edgars its currency peg with the South aggregate demand as disposable incomes con- and Dairibord — which recently released their African rand “unless something tinue to plummet. financials — that they were operating below very drastic happens”, given As a result, experts warn, the country is capacity, as well as the fact that some firms had the close trade links to its larger grappling with the threat of stagflation for the gone under judicial management due to lack of neighbour and the drive by the second time in a decade — a situation in which foreign currency to import raw materials. world’s biggest producer of ma- the inflation rate shoots up, economic growth “Inflationary pressures may also arise from rine diamonds to recover from a rate slows down and unemployment remains communication-intensive businesses (such as two-year recession. high. mobile network operators and Internet service “We have to consider all the This comes as business is reeling from providers), transferring the higher tariffs bur- INSTITUTE of People Management of Zimbabwe president Pre- options, but after having consid- growing wage-hike pressures and the negative den to end-consumers,” Morgan & Co said. cious Nyika. The institute is developing human resources stan- ered that we still think that back- ing one-on-one with the rand is effects of rocketing inflation — which hit a 10- It also warned that “should the new tariffs dards, which it believes are essential for economic growth. Zimba- the best option,” Namibian Pres- year high of 59 percent in February — while be rejected, consumers and businesses should bwe has suffered serious brain drain, with over three million of its highly-skilled human capital migrating to various countries due ident Hage Geingob said in an consumers are groaning under the weight of the expect erratic communication services from interview in Cascais, Portugal, country’s ever rising cost of living. telecoms operators”. to the deteriorating economic situation in the southern African country. Picture by Freedom Mashava where he attended the Horasis “Zimbabwe could be heading for stagflation To Page 2 Global Meeting. – Bloomberg Page 2 | April 11-17 2019 The Financial Gazette National News Industry buffeted by fresh volatility

From Page 1 ments linked to foreign exchange short- Mortgage lender CABS concurred ages and the relationships between in- with Morgan & Co’s view, saying most come and expenses under inflationary companies were now facing severe eco- conditions,” Washington Matsaira, the nomic challenges, with the risks associ- bank’s chairman, said in a statement ated with operating a business in Zimba- accompanying its results to December bwe continuing to worsen. 2018. “The risks and opportunities in Zim- On the other hand, CABS’s parent babwe have further escalated. company, Old Mutual, said Zimbabwe “Chief among these are those ele- was not going to experience meaningful

George Guvamatanga Busisa Moyo

economic revival if the government does not embark trading and companies failing to access desperate- on a comprehensive policy overhaul, and also show ly-needed foreign currency”. total commitment to restoring confidence. Trust Chikohora, a former Zimbabwe National “Going forward, the overall pace and magnitude Chamber of Commerce president, said the current of macro-economic revival is likely to depend signifi- economic situation was so dire that he believed the cantly on government’s ability to sustainably rebuild only way to stabilise rampaging prices was to “do public and investor confidence, bring spending under away with the RTGS dollar and use stable foreign control, as well as to re-engage successfully with the currencies” instead. international community,” Johannes !Gawaxab, the “This could be the only way until we stabilise the diversified financial services group’s chairman, said economy through massive foreign direct investment, in the company’s results to December 2018. as well as sustainable lines of credit from multilateral Busisa Moyo, a former Confederation of Zimba- institutions,” he said, adding that “we will also need bwe Industries (CZI) president, told The Financial high levels of aid”. Gazette that industry had not yet fully responded to “We will only be able to reintroduce our own cur- the central bank’s recent monetary policy statement rency once we have sustainable forex reserves,” Chi- (MPS), which unveiled a partially managed official kohora said. foreign currency market, as well as the country’s new However, Treasury permanent secretary George RTGS dollar. Guvamatanga has said that Zimbabwe’s economy is “In my view, it will take months before we reach far from “fragile” and that the ongoing “fast-paced” a new balance between prices, incomes and volumes implementation of a raft of new economic measures as an economy, though the unencumbered portion of would save the situation. tobacco inflows and improvements in gold deliveries “The country has been in transition since 2017 may shorten this period,” he said. and this transition was formalised in October 2018 by Moyo also said the possible solutions to the coun- an economic blueprint, the Transitional Stabilisation try’s economic challenges included authorities creat- Programme, and the actions outlined therein are being ing a “liquid and freely-trading interbank market plat- implemented at a very fast pace,” he has argued. form for foreign exchange”. In the meantime, and as both inflation an the cost On its part, the CZI Economists Roundtable said of doing business in the country continue to escalate, “the recently-launched interbank market was not op- the CZI has written to the government seeking urgent erating on a free market concept, resulting in subdued intervention. [email protected] 2018 was good: Access Finance NUMBER of Zimbabwean companies expe- last few years and challenges to remain in the econo- rienced good “revenue and sales” growth in my were listed as foreign currency and cash shortag- A 2018, a recent business confidence survey by es and rising labour costs. Access Finance (Access) says. “Success did not (always) translate into more jobs This also comes as a majority of those polled (and) respondents were polarised on future growth believe government policy had been negative in the and business prospects in 2019. Though more are positive on both these areas (41 percent to 50 percent) versus negative (34 percent to 42 percent),” a recap of the Access survey said, adding “improved performances had been achieved at the back of better technologies, cost reduction and operational efficiencies”. “We grew revenues in 2018 and if this had been another region, we would have increased our staff for the future. We are not sure if this growth is op- portunistic or part of a longer term trend,” one of the 30 chief executives polled said. Although industry is divided on the sources and future of foreign direct investment (FDI), most of the cash is still seen as coming from China ― at 76 percent ― followed by the European Union and the United States at three percent. Access is a leading financial assets trader, which services blue-chip, small to medium-sized enterprises and individuals. The company is expected to launch or publish another market analysis and com- mentary this month. Mining, tourism and agriculture, it said, remain the country’s economic mainstays. With some of the leaders surveyed extracted from the manufacturing, health, automotive, finance, commodities and retail sectors, some of the key topics tackled include reasons for business improvement, staff retention, growth prospects and optimism, ability to capture FDI in 2017-2018 and impact of government policy on operations. - Staff Reporter [email protected] The Financial Gazette April 11-17 2019 | Page 3 National News Zim slides into recession: IMF Nelson Gahadza Business Reporter

IMBABWE’S economy will slide into recession this year, for the first time in 10 years, largely due to fiscal Zand monetary developments in the country, the Inter- national Monetary Fund (IMF) has said. The southern African country ditched a discredited 1:1 dollar peg for its US dollar-surrogate bond notes and electronic dollars in February, merging them into a lower-value transitional currency called the RTGS dollar. Although the local currency started trading at 1:2,5 to the US dollar, it has since devalued to 1:3,1 on the official market. The IMF, in its World Economic Outlook for 2019 released on Tuesday, said Zimbabwe’s real gross domestic product is projected at –5,2 percent from an estimated 3,4 percent growth last year. However, the economy is anticipated to recover in 2020 and grow by 3,3 percent and by 4 percent in 2024. The latest development comes as Zimbabwe is experiencing its worst economic crisis in a decade characterised by acute foreign currency shortages, spiralling inflation, fuel and drug shortages, high unemployment and unsustainable trade deficits. Although the Bretton Woods institution said the “data used for the country is based on staff estimates of price and exchange rate developments in US dol- Eddie Cross lars”, efforts are currently underway to revise and update all national accounts series to the new RTGS dollar. Tony Hawkins, an economics professor, told The Finan- cial Gazette that the IMF projection is pragmatic, considering the current state of economic affairs. “The projection is very realistic on factors such as rising inflation and redenomination of currency among other fiscal reforms. Government should just start to get it real and be realistic, other than selling public relations that the new dispensation has been a huge success,” he said. Hawkins noted that President Emmerson Mnangagwa’s government was mainly committed to making promises, which are disconnected from reality in the economy. “For instance, central bank governor John Mangudya in his Monetary Policy Statement (MPS) committed to preserve value on people's savings, but these have already lost 50 percent and have been wiped out,” he said, adding that inflation will continue to rise until the third quarter of the year, reaching about 70 percent by August before dropping to around 30 percent by year end. Another economist, Eddie Cross, indicated that the IMF projections are a bit harsh, but in reality, projects a negative growth in the region of 2 to 3 percent. “The economic measures that have been put in place by government reduced consumption spending, laying the foundation for future growth. Usually the period of economic adjustments is characterised by lower growth rates,” he said. John Robertson, a respected Harare-based economist, also noted that the IMF forecasts were not surprising as the country had experienced a significant decline in investor confidence. “There's a decline in investor confidence, a decline in capacity locally to be able to push for an increase in production and therefore growth will be quite difficult to achieve,” he said. The IMF is also projecting Zimbabwe's inflation to remain in double digits at the close of the year at 40,1 percent and only to fall off to 4,8 percent in 2021. Meanwhile, the IMF noted that sub-Sahara Africa growth is expected to be at 3,5 percent this year before nudging up to 3,7 percent in 2020. However, prospects vary across sub-Sa- haran Africa, reflecting the heterogeneity of the economies, associated with disparities in the level of development, expo- sure to weather shocks and commodity dependence. [email protected] The Financial Gazette April 11-17 2019 | Page 5 Page 4 | April 11-17 2019 The Financial Gazette National News Tycoons battle it out

MAN-BASED tycoon Thamer Al … and second claimant are closely related Shanfari has won another High family members. By virtue of the relation- OCourt order to attach Harare busi- ship, the court has to be wary of a likeli- nessman Munner Kamruddin Kazi’s prop- hood of collusion to defeat execution,” she erty in a bid to recover a US$4,7 million said. debt arising from various investment deals. While the value of the furniture con- The Sheriff of the High Court last week stitutes a fraction of what Al Shanfari is successfully attached the latter’s property seeking to recoup, the controversial busi- before the case or matter took a dramat- nessman has also waited for almost four ic turn, which saw the mainly household years ― after the first order was granted in goods “being returned to their owner under October 2015 ― for justice to be served. unclear circumstances”. “It is ordered that respondent (Kazi)… According to Shanfari’s lawyer, Ever- pays interest on $4 750 000 at the pre- son Samukange, their bid to enforce Jus- scribed rate from 17th of December 2012 tice Phildah Muzofa’s recent order “had hit to date of full payment … (and) collection a brick wall after an anonymous call and commission … in terms of the by-laws of directive ― bordering on political inter- the Law Society of Zimbabwe,” the High ference ― had been made for court sheriff Court said then. Macduff Madega to abandon the process”. According to the court papers, Kazi ac- “The part that’s beyond me … is that knowledged ― in writing and as far back goods had been removed and deposited as August 2012 ― that he owed Al Shan- with the auctioneer … on the 5th of April fari nearly US$3,8 million, which has since 2019, and an instruction which … Madega ballooned to nearly $5 million. was unable to elaborate, demanded that the “The defendant agreed to repay the goods be returned to Kazi just after 12pm,” plaintiff $2 million by the 24th of August he said last week. 2012. The defendant agreed to pay the bal- “No appeal had been filed and no court ance of $1 750 000 on or by the 5th of Oc- order existed to allow for such (a develop- tober. The defendant further acknowledged ment). An appeal was subsequently filed at owing a further $1 million,” they said, add- 14:00hrs ― way after the goods had been ing “US$1 million was to be written off if returned and it was served on the (Harare) Kazi had paid a lump sum $3 750 000 by sheriff then. But the question is, where did the 5th of October 2012”. (Mr) Madega get the power … to return “Despite the agreement … the defen- the goods before 13:00hrs?” Samukange dant has failed, refused and neglected to queried. repay the plaintiff.. within the timeframe The latest drama and Muzofa’s ruling agreed,” the court heard at the time. came after Kazi’s wife Raziya and son Tou- In his pleadings, Al Shanfari argued kil had lost a bid to hang onto the property that Kazi had no genuine defence and his on the pretext or grounds that the goods, in- efforts to defend the claim was not only cluding chairs, fridges, a washing machine “frivolous, and vexatious”, but meant to and cars, belonged to them. “harass and delay the finalisation of appli- “In this case, the judgment debtor, first cant’s claim”. – Staff Writer Govt breaks the bank Adelaide Moyo Business Reporter

HE government has breached the Constitution and Public Finance Man- Tagement Act after it over-borrowed by $1,5 billion from the central bank last year, the Zimbabwe Coalition on Debt and Devel- opment (ZIMCODD) has said. ZIMCODD said government’s overdraft with the Reserve Bank of Zimbabwe (RBZ) stood at $2,3 billion against the prescribed $762,8 million. “The government has not only disregard- ed the Constitution and the Public Finance Management (PFM) Act, but also Section 11 (1) of the RBZ Act,which states that borrowing from the RBZ shall not exceed 20 Tendai Biti percent of the previous year’s government revenues at any given point,” it said. ed by principal interest arrears and penalties “The PFM Act provides that the aggre- amounting to $5,9 billion. gate amount that may be borrowed in any Of the external debt, 41 percent is owed financial year shall not exceed 30 percent of to Paris Club creditors, 34 percent to mul- general government revenue in the previous tilateral creditors, 18 percent to non-Paris year,” ZIMCODD said. Club creditors and seven percent to private It said Zimbabwe also breached the creditors. SADC protocol of finance and investment, Domestic debt stood at $9,6 billion as at which compels member states to maintain September 2018, with the bulk being Trea- public debt to GDP ratio or to levels at or sury Bills (TBs), which were issued for re- below the 60 percent threshold. capitalisation of public enterprises, settling “Despite having such comprehensive na- government obligations and RBZ debt as- tional and regional frameworks, it suffices to sumption. say that compliance with the legislative pro- ZIMCODD said government needs to visions, in particular, relating to loan acqui- commission an extensive debt audit into sition and debt management has generally Zimbabwe’s $18 billion-plus debt and come been low,” ZIMCODD said. up with a management framework. The organisation pointed out that the bulk “A sustainable and inclusive debt man- of the country’s national debt was acquired agement framework must follow a compre- without Parliamentary approval or following hensive debt audit in order to ascertain the constitutional and statutory instruments. extent of the debt, how it was used and or Government rebased the economy to misused, it must evaluate the terms of spe- $25,8 billion from $18 billion, and the debt cific loans and how the loans benefited Zim- to GDP ratio has declined from 97 percent babwe,” ZIMCODD said. to 70 percent. The firm said the audit will be - import “This implies that the country’s debt be- ant for addressing the legitimacy and moral comes unsustainable despite the huge debt question on the country’s debt. arrears. The debt to GDP ratio may, however, The Tendai Biti-chaired Parliamentary not be the best measure of debt sustainability Portfolio Committee on Public Accounts as it only considers the face value of debt and Committee is investigating the Zimbabwe not the cost of debt,” ZIMCODD said. Asset Management Company and the debts The country’s external debt amounted to it took over, suspected to have benefitted po- $7,7 billion as at September 2018, dominat- litical elites. [email protected] Page 6 | April 11-17 2019 The Financial Gazette National News Debt restructuring plan pays off for Brainworks

Adelaide Moyo EXTERNAL ADVERT Business Reporter

Madison Life Insurance Company (MLife) which is part of the LSA Group RAINWORKS Limited (Brainworks)’s strate- of Companies is one of the leading Life Insurance Companies in Zambia with branches in Lusaka, Kabwe, Ndola, Kitwe, Chingola, Mazabuka, Livingstone, gic focus on reducing debt has paid off after the Mongu, Chinsali, Chipata, Kasama and Solwezi. Blisted firm slashed its arrears by 55 percent from $38,3 million. The Company invites applications from suitably qualified and experienced Brett Childs, Brainworks' chief executive, last week individuals to fill in the position of GENERAL MANAGER – SALES & said the firm attracted a weighted average interest rate MARKETING. Do you have what it takes to join one of Zambia’s fast growing of 12 percent through the settlement of debt through the Life Insurance Institution? delivery of assets (in lieu of cash), internally generated cash flows and equity proceeds. JOB PURPOSE “As reported in the prior year, the group continues Reporting to the Managing Director, the general purpose of the role is to market to strategically focus on reducing its debt burden. The both the Individual and Group business of the Company. group recorded a notable reduction in its debt, reducing We are looking for a high-performing General Manager – Sales & Marketing, it by 55 percent from the US$38,3 million reported as reporting to the Managing Director. The successful candidate will have to at the end of the prior year, attracting a weighted aver- meet our customer acquisition and revenue growth objectives. age interest rate of 12 percent,” he said. Childs said there was a notable reduction in finance The responsibilities include; charges in comparison to the prior year. • Developing key growth sales strategies, tactics and action plans. Successful The Johannesburg Stock Exchange-listed firm said execution of these strategies is required to achieve your financial targets, the disposal of its shareholding in GetBucks Microfi- achieving annual targets, building relationships and understanding customer nance Bank during the year was positive to profitabil- trends; ensuring Sales Representative Recruitment, Productivity, Quality and Persistency. ity. • Spearhead profitable business performance of the Individual Life Business “The financial impact of the exit was notably pos- line, ultimate responsibility for manpower build-up, volumes of business and itive to profitability. Furthermore, the group sold its entire equity interest in GetSure Life Assurance Com- expansion of Agency sales force. Brett Childs • Developing and maintaining a robust system to manage Regional Managers, pany. These disposals effectively complete the group’s Team Leaders and Sales Representatives; ensure effective coordination initiatives to exit the financial services sector in order with Branch Administrators, Customer Support and other departments to to concentrate on core business sectors, namely, hospi- pitality segment. ascertain and ensure smooth business processes in the Branch. tality and real estate,” Brainworks said. The improved revenue was spurred by a seven per- • To ensure that in the team he heads, there is an environment where The investment focused group said it is optimistic cent increase in occupancy to 59 percent compared to employee potential is maximized. Building relationships and understanding that its results for the financial year ended December 52 percent in prior year. customer trends. 31, 2018, which have been delayed due to accounting A 17 percent increase in average daily rate (ADR) was recorded to US$109 from US$93 recorded the pri- KEY QUALIFICATIONS. challenges in Zimbabwe following recent monetary re- • A relevant Bachelor’s Degree from a recognized University; forms, will show positive earnings. or year as the hotels continued to align domestic rates • ACII or equivalent Brainworks indicated that the positive earnings to the implied exchange rate between USD and RTGS • Preferably above 40 years of age would be driven by growth in revenues, reduction in dollar. • All round Life Insurance Management and Technical Skills finance charges and the positive contribution to prof- “Occupancy growth was driven by strong perfor- • At least 5 years Senior Managerial experience in Life Insurance Institution itability recorded as a result of the group exiting the mance from all our source markets, with room nights • Knowledge of Accounting and Finance financial services sector. sold for domestic, international and regional increasing • Knowledge of Life products and Principles “The board has a reasonable degree of certainty by 12 percent, 14 percent and seven percent, respec- that positive basic earnings per share will be achieved tively,” Brainworks said. REQUIRED SKILLS & ATTRIBUTES The firm said the real estate segment also- record • Proven sales executive experience, meeting or exceeding targets for the financial year ended December 31, 2018. This • Demonstrable experience as Head of Sales, developing client-focused, would mark a notable turnaround given the fact that the ed a notable increase in revenue, with 70 percent of differentiated and achievable solutions. group recorded net losses after tax of US$8 million in the growth attributable to inaugural revenues recorded • Ability to communicate, present and influence all levels of the organization the prior year,” Childs said. from property sales following the completion of the • Proven ability to drive the sales process from prospecting to closure He further noted that the group’s revenue went up group’s maiden development project in Harare. • Ability to adapt to new technological advances for sales process, distribution in all its segments, with significant growth in the hos- [email protected] of products, training of sales personnel and servicing of the customers • Proven ability to articulate the distinct aspects of products and services • Proven ability to position products against competitors • Excellent listening, negotiation and presentation skills • Excellent verbal and written communications skills

DUTIES & RESPONSIBILITIES • Develop and execute strategic plan to achieve sales targets and expand Proplastics capital our customer base. • Lead all Branch Sales personnel and coordinate with seniors including those at Head Office. • Constant Recruitment of quality Sales Representatives and Training & Development of Regional Managers, Team Leaders and the Sales Representatives. position up 1,000% • Help, assist and guide the Regional Managers and Team Leaders to recruit and train the Sales Representatives to procure the required business Nelson Gahadza utory Instrument (SI) 122, which enabled the company numbers. • Ensure that the business and product knowledge of the team is upgraded Business Reporter to embark on its factory expansion project. through regular checks and interventions. “If you look at SI 122, all these projects we are do- • Forecast future business trends and accurate evaluation of potential ROPLASTICS says its capital position has in- ing, we relied on that protection but it was just plugged opportunities and devise ways and means of capitalizing on them. creased by close to 1 000 percent to $54 million out when we were about to finish our factory,” he said. • Effective implementation of Strategies and Processes laid down by MLife. in the last four years since the industrial concern Meanwhile, Proplastics said it remains optimistic • Focus on market penetration in the territory and branch growth. P debuted on the Zimbabwe Stock Exchange (ZSE) in despite missing its first quarter plant commission target. • To achieve weekly, monthly, quarterly and yearly business targets 2015. The new bigger plant, which was initially earmarked • To motivate the Sales Staff various competitions, awards, contests and Kudakwashe Chigiya, the company’s chief execu- for completion in the first 10 months of the 2018 finan- Reward & Recognition initiatives launched by the company. tive, said Proplastics has unleashed its potential effi- cial year, could not be finished again within the revised • Regular monitoring of Regional Managers, Team Leaders and sales ciencies post the unbundling from Masimba Holdings target of first quarter 2019 due to foreign currency chal- representatives’ performance and conducting regular team meeting and performance review programs to take necessary corrective measures. (Masimba) in 2015. lenges. • Facilitate Administrative and Operational supports to Regional Managers, “When we unbundled, Proplastics was sitting on Chigiya said the company had to grapple with work- Team Leaders and frontline Sales Representatives for smooth functioning. $4,9 million, and now we are in the region of US$53 ing capital and capital expenditure demands and wors- • MIS preparation, reporting to MD and adherence to Audit & Compliance as million to US$54 million. Even if you factor in the mar- ening foreign challenges, resulting in delays in plant per company Standards. ket rate, you will see that there has been phenomenal completion. The estimated cost of constructing the fac- • Build and maintain strong, long-lasting customer relationships growth on the business,” he said. tory was $5 million. • Partner with customers to understand their business needs and objectives Masimba unbundled Proplastics as part of a broad- “The plant is now 97 percent complete and is ear- • Effectively communicate the value proposition through proposals and er objective of attracting capital that is focused on its marked for commissioning at the beginning of the sec- presentations. relevant business, which is property development and ond half of the current financial year. This will follow • Marketing of MLife products. construction. Following the transaction, Masimba re- an installation process earmarked for May,” he said. Interested applicants with the requirements stated should submit their mained with a five percent stake in the pipe manufac- The new factory is expected to increase production applications electronically via e mail consisting of letter and CV only, in a single turer. capacity to 32 000 tonnes a year from 8 000 tonnes ― document, to the Group Human Resource Manager on [email protected]. Please Chigiya also said the company’s share value has wit- a fourfold increase. In 2018 the company attained ca- indicate the job title in the subject of your e-mail and use your full name as the nessed phenomenal growth in the last few years. pacity utilisation of 66,25 percent on producing 5 300 filename of your application. “When we debuted, the share price was 1,05 cents, tonnes in output. and splitting that with Masimba ― since the listing was Chigiya said in the year to 2018, factory volumes The closing date for accepting applications is 18 April 2019. Note that only through a dividend in specie ― it was about 0,75 cents. were 20 percent ahead of prior year. The PVC volumes shortlisted candidates will be contacted. However, at the moment we are now sitting at 22,05 were up 16 percent, the HDPE black pipe volumes were cents, which is a phenomenal growth,” he said. up 74 percent, IM fittings up 9 percent and OEE im- Please note that MLife is an equal opportunity employer. He said the company during the period managed to proved from 56 percent to 69 percent. ride on certain government policies, in particular, Stat- [email protected] The Financial Gazette April 11-17 2019 | Page 7 National News Zim in high inflation league

Adelaide Moyo paved the way for the introduction of sound Business Reporter market reforms such as liberalising the exchange rate, which helped correct price distor- IMBABWE is among six African coun- tions. tries that will close 2019 with double “Inflation has been increasing from around Z digit inflation, the World Bank has August 2018 and rising from 42 percent in De- said. cember 2018 In its latest report on “An analysis of is- to about 59 Inflation has been sues shaping Africa’s economic future,” the percent around increasing from World Bank said Angola, Liberia, Nigeria are February 2019. “around August 2018 also facing double digit inflation. However, this and rising from 42 per- Although the southern African country’s momentum is cent in December 2018 to year-on-year inflation rose to 59,39 percent expected to about 59 percent around in February from 56,9 percent in January, dissipate from February 2019. Howev- pushed up by increases in prices of basic around April er, this momentum is ex- goods, central bank governor John Mangudya and the central pected to dissipate from believes that the rate will significantly come bank right now around April and the down to about 10 percent by year-end. is instituting central bank right now is “The median inflation rate is projected to control mea- instituting control mea- rise moderately, from an estimated 3,8 per- sures to fight sures to fight inflation.” cent in 2018 to 4,9 percent in 2019, with six inflation,” she countries facing double-digit inflation rates said. including Angola, Zimbabwe, Liberia, Nige- The southern ria, Sierra Leone, Sudan — unchanged from African nation — which relied mainly on the the previous year,” the Bretton Woods insti- US dollar since scrapping its own currency in tution said. 2009 to halt hyperinflation that saw prices esca- The international lender added that sub-Sa- the type of borrowing that countries are un- 5,4 percent in September last year, incited by lating daily — has steadily seen inflation creep haran Africa’s growth remains modest this dertaking is exposing them to vulnerabilities, monetary and fiscal reforms implemented last up from a deflationary phase that lasted over year, expecting the regional economy to grow the World Bank said, adding inflation pressures year, which included the ring-fencing of Nos- a year. by 2,8 percent from an initial 3,3 percent — a are expected rise in non-resource-intensive tro FCAs and RTGS$ accounts as well as the Additionally, speculative inflation expecta- level not seen since 2015. countries. introduction of a two percent tax on electronic tions are setting in, further heightening wage “The slower-than-expected overall growth “In non-resource-intensive countries, the in- fund transfers. review pressures in both public and private reflects ongoing global uncertainty, but increase in inflation mainly reflects deteriorating However, the Reserve Bank of Zimbabwe sectors. creasingly comes from domestic macroeco- conditions in Sudan and Zimbabwe,” the finan- (RBZ) says the country’s annual inflation is ex- Market watchers say assuming that no mea- nomic instability including poorly managed cial institution said. pected to slow down from April. sures are taken to deal with the situation, the debt, inflation and deficits,” the bank said. Zimbabwe’s inflation hit a post-dollari- Getrude Kabaira, the central bank’s princi- parallel market will worsen and feed into in- Rates of debt in the region are growing and sation high of 59,4 percent in February from pal economist, said the country’s 2019 Budget flationary pressures. [email protected] Page 8 | April 11-17 2019 The Financial Gazette Leader Page

News Worth Knowing Compensating white farmers a noble idea HE move by government to start compensating more than 4 000 white farmers dispossessed by the chaotic land reform programme is a posi- Ttive step towards re-engagement with the international community and unlocking balance of payment support and credit lines to the haemorrhaging economy. A joint statement by Lands minister Perrance Shiri and his Finance counter- part Mthuli Ncube last week said government was committed to paying compensation to the farmers both in terms of the country’s Constitution and obligations arising from bilateral investment protection agreements signed with a number of countries. A compensation committee, comprising of government representatives and representatives of the affected farmers, was now working towards establishing the quantum of compensation required for farm improvements based on an agreed valuation. This exercise is expected to be complete next month, the statement said. It said the process of identifying and registering former farm owners who want to participate in the interim advance scheme was being coordinated by the Commercial Farmers’ Union (CFU) and the Compensation Steering Committee (CSC) representing the former farm owners. AVM Africa has partnered with Chinese firm City Card, as it seeks to revive operations and benefit from the Zimbabwe is currently battling to clear debt arrears to international financial country’s plans to adopt an efficient mass transportation system. At its peak, the Msasa-based truck and institutions (IFI), as it seeks to re-establish contact with bilateral and multilateral bus manufacturer used to produce up to 40 buses per month on a double shift, employing more than 2 500 lenders for financial support. people. Picture by Freedom Mashava The International Monetary Fund (IMF) has indicated that compensation for expropriated farms remains at the core of any re-engagement efforts between Zimbabwe and the IMF, from which major donors and lenders take their cue. Other conditions include political reforms, clearance of arrears to IFIs, financing assurances from bilateral creditors and a comprehensive and consistent package of policies for sustainable and inclusive growth. ED needs a philosophy Patrick Imam, the IMF country representative, has indicated that Zimbabwe remains in debt distress, with arrears of US$5,7 billion at the end of 2017. These include US$2,1 billion to IFIs (the World Bank, African Development Bank and the European Investment Bank). US$3,3 billion is owed to official bilateral cred- to jumpstart economy itors. He highlighted that compensation to the former farm owners represented a large contingent liability. Government has previously estimated the bill at be- RESIDENT Emmerson Mnan- income nation. Having a clear philos- junior officers and would-be offenders. tween US$2,4 billion and US$3,4 billion, only taking into account land improve- gagwa began his reign in No- ophy provides one with a firm founda- As it is, despite his rhetoric on corrup- ments. The farmers have put the bill at up to US$10 billion, including land im- Pvember 2017 on a high pedestal tion from which to operate and this is tion, no one believes the president is provements and the expropriated land. and the world believed he had the ca- the hallmark of successful leaders such serious about eliminating it due to his In terms of the Constitution adopted in 2013, the government has an obliga- pacity to turn things around for Zim- as Rwanda’s Paul Kagame and the late perceived lack of action. tion to pay compensation for improvements alone, something the farmers say is babwe. Singapore Premier Lee Kuan Yew. Mnangagwa should take a leaf contrary to international standards. His emotionally-charged inaugu- Just like Mnangagwa, Lee was a from the former Singapore strongman Bilateral protection agreements however compel government to pay even for ration speech, where he promised a trained lawyer, but he performed a mir- who not only strengthened the Corrupt the expropriated land. bright future, telling millions of Zimba- acle transforming Singapore from one Practices Investigation Bureau and The arrears, and indeed the issue of compensation, have prevented any new bweans across the world that he would of the poorest countries in the world in placed it under his direct charge, but financing from IFIs, and limited access to external financing to non-traditional, serve all citizens, adding, significantly, the 1960s to being among the most ad- was able to robustly tackle graft, creat- official and commercial creditors. The United States government, for example, that he would focus on the economy vanced today. ing one of the least corrupt business en- has been very clear that compensation will be at the centre of any re-engagement and create “jobs, jobs and jobs” for the His main contribution, and the key vironments in the world ― something efforts with Zimbabwe. The USA has critical voting rights in the IMF and World suffering masses, was well received. to his success, was that he understood that clearly contributes to the Asian Bank boards. The initiative by government should therefore be applauded but should, how- And many believed that at long last that to put Singapore on a sustainable nation's super-competitive economic ever, be informed by a much broader reform agenda that includes all aspects of the southern African country ― long growth trajectory one needs much position. reforms suggested by the IMF. touted as a jewel of the continent ― more than a sound economic policy. It has to be noted that Lee real- Imam said although Zimbabwe has no arrears with the IMF, Fund rules pre- had found a saviour and “reformist” Any policy can be reversed, any in- ised, for instance, that any business clude lending to countries with arrears to other IFIs. who could bring democratic and so- centives for growth can be dismantled. environment had to be supportive of cio-economic rights to Zimbabwe’s Lee built a country whose institutional large companies as well as small ones, long-suffering people. It didn’t need set-up is unparalleled. This includes foreign investors as well as domestic Southern Africa’s Leading Business and Financial Newspaper much convincing for the electorate to the rule of law, efficient government ones, and workers as well as business- Established 1969 “give ED a chance” to prove himself in structures, the continuous fight against people. He took the lead in breaking Publisher: Modus Media the 2018 plebiscite. corruption, and overall stability. away from state-planning policies of EDITORIAL MARKETING But before long, the Robert Mug- And to achieve his vision, Lee de- his developing country peers in the Editor-In-Chief & Chief Oper General Manager - Marketing abe protégé was back in the usual veloped a highly technocratic govern- 1960s to embrace outward-looking Christopher Goko: gok .zw .zw ment which led to competitive, mer- policies that enabled the Singapore Brand Executive - Advertising itocratic and results-based economic economic takeoff. Deputy Editor Open Forum .zw Edwin Vengesa: ev .zw policies. At a time when it was not the in- Senior Sales Executives Some key decisions were the devel- tellectual fashion to do so, he accepted Managing Editor Christobel Washaya: cwashay .zw with opment of Changi Airport as a regional that allowing businesses to make good .zw transport hub after Singapore outgrew profits would be good for the average Senior Assistant Editor .zw John Kachembere the previous Paya Lebar airport, which man. Chris Gumun .zw Sales Representatives - Harare was a state-of-the-art facility when it Lee’s instincts were also in the right News Editor .zw opened in the 1950s. place when he decided that Singapore John K .zw Frank Nyandoro: fny .zw Zanu PF mode of repression. Faced The air hub and the aggressive should repudiate the state-funded wel- Edreck: emudzingany .zw Companies Editor with mounting pressure from an in- defence of Singapore as a sea freight fare policies that many other develop- Shame Makoshori: smak .zw Sales Representative - Bulawayo creasingly restive populace agitated by trans-shipment hub ― as well as the ing countries had embraced after their Clever Pedzisai: [email protected] the slow pace of economic and polit- technocratic foundations of transpar- independence, insisting instead on Online Editor Brand Executive - Events ical reforms, at least 14 people were ency and good governance ― led to creating the culture of self-reliance that Paul Nyakazeya: pnyakazey .zw K .zw shot dead by soldiers at his instigation Singapore's position as a natural hub has served Singapore so well. Brand Executive - Subscriptions Features Editor during the January 14 fuel price rise for multinational businesses in Asia. Going forward, it is critical for Tatenda Taka: t .zw .zw protests. This has led many critics to Other key positive economic pol- Mnangagwa to re-establish political Subscriptions Representatives argue that Mnangagwa is just as much icies included the Central Provident rights, and to encourage a multi-party Production Supervisor Ronald Madiviko: rmadivik .zw Kudzai Rushambwa: krushambw .zw Elizabeth Nyamaruze: eny .zw a part of the fabric of Zanu PF as his Fund, Housing Development Board democracy to flourish once again. predecessor, and the movement hasn’t flat ownership and integrated -educa He needs to guarantee the human Chief Executiv .zw changed its ideology. tion, which all helped Singapore tran- rights of every Zimbabwean, no mat- While we all agree that Mnangag- sition from a village setting towards ter what their racial, ethnic or tribal

Bulawayo wa inherited a structurally-defective towns and the highly sophisticated origins. Editorial, Advertising & Circulation 1st Floor, Princess Court, economy besieged with a lot of chal- cosmopolitan global city we see today. The 76-year-old Zanu PF leader 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, lenges emanating from Mugabe’s di- Just like Lee, Mnangagwa should should also learn the lesson of Zimba- P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. Tel: +263-242-781 572 Tel: (029)75873/75270 sastrous 37 years in power, there was take a strong stance against corruption bwe’s many failed experiments in state Website: www Distributed by: ANZ ― and still is ― hope that the coun- and show by example that he is serious control and make the country a wel- try’s potential can be realised. against stamping out the scourge by coming place to do business and to in- VOLUNTARY MEDIA COUNCIL OF ZIMBABWE The Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced All Mnangagwa needs is to devel- locking up the majority of his “friends vest. In the early years of independence news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of op an economic philosophy of his own, and close associates” who are still en- there was racial tolerance and a func- Zimbabwe at: which he can follow religiously to en- tioning free press and democracy, and No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 gaging in corrupt activities, thereby Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz sure that the country attains his 2030 the country’s economic reforms. This an independent judiciary ― there is no Zimbabwe vision of becoming an upper middle would send a strong message to other reason why all these cannot return. The Financial Gazette April 11-17 2019 | Page 9 Page 10 | April 11-17 2019 The Financial Gazette National News Tobacco marketing Pick n Pay in record growth

remains depressed ICK n Pay, one of South Af- pelling value-added services and rica’s largest supermarket brighter and more modern stores.” Tabitha Mutenga er surpassed the previous season’s aver- Pchains, reported turnover The company said its trading Features Editor age prices as the market will be expecting growth of almost 10 percent in the performance was delivered despite primings (lower leaves), which naturally financial year to March, underscor- a difficult consumer environment in IMBABWE’S tobacco prices, which fetch lower prices but some growers will ing the resilience of its South Af- South Africa and some challenges have largely remain depressed this be delivering the cuttings and the lugs that rican division, which clawed back elsewhere ― in particular, a testing Zyear, are forcing farmers to continue should fetch higher prices and in return re- market share from competitors. economy in Zambia and currency holding on to their crop, The Financial Ga- ceive the prevailing market prices for lower The group said like-for-like uncertainty and disruption in Zim- zette can reveal. leaves. turnover growth was 4,8 percent. babwe. Tobacco Industry and Marketing Board “So it's simple market forces at play, Selling price deflation was 0,3 “Notwithstanding this challeng- figures show that farmers have so far then naturally there is the Easter holidays percent over the year. The group ing background, the group expects earned US$7 million from the sale of 4 mil- and everyone scrambles to deliver, again achieved like-for-like volume to deliver on its goal of maintain- lion kilogrammes (kg) of the golden leaf it’s the issue of fundamental supply and de- growth of 5,1 percent. ing momentum on earnings growth compared to US$50 million in the same mand. Then obviously the commercial sec- It said both headline earnings a alongside improved turnover period last year after delivering 18 million tor starts to deliver after Easter when there share (HEPS) and basic earnings a growth.” kgs. This was after average prices slumped is stability and fetch good prices for their share were now expected to be be- Damon Buss, an equity analyst by 36,47 percent to US$1,70 per kg down quality,” he said. tween 20 percent and 30 percent at Cape Town-based Electus Fund from US$2,75 recorded during the same Dune further indicated that the new pay- higher. Managers, said the trading update period last year. ment method was proving to be very com- The group said its core South was a continuation of the improved Farmer organisations who spoke to Mthuli Ncube plex for the majority of farmers. Africa division delivered compara- results reported in the first half of this publication said their members were Although Finance minister Mthuli Ncu- “The system is such that loans are de- not happy with the low prices at the auc- be recently assured farmers that govern- ductible first then the 50 percent foreign ble turnover growth of 7,4 percent. 2019. tion floors and the new payment methods ment would exempt tobacco growers from currency is on net although this net is first It said its Pick n Pay and Box- “The improved shopping experi- introduced by the central bank. According paying the controversial two percent tax, banked into the farmer's RTGS account. We er brands demonstrated consistent ence in their (Pick n Pay) new-for- to new regulations, growers receive 50 deliveries have remained depressed. are urging farmers not to rush to withdraw gains in market share over the year. mat stores, more focused promo- percent of their tobacco earnings in Nos- Since the opening of the auction floors those proceeds in anticipation that they will “This achievement, in a very chal- tional strategy and enhanced supply tro FCAs and 50 percent in RTGS dollars almost two weeks ago, farmers are holding be able to convert the money into foreign lenging trading environment, un- chain has enabled them to start claw- at the prevailing interbank market rate, but on to their tobacco either in protest over currency. It is unfortunate that most farmers derlines the effective and consistent ing back market share, albeit in a pe- farmers complained that they were yet to grossly low prices or in anticipation of are rushing to exhaust those proceeds with execution of the group’s long-term riod where their biggest competitor receive the US$ payments. higher prices. minimum due diligence,” he said. plan,” the company said. (Shoprite) had significant supply “Yes, problems are there because of this “I have not sold my crop yet because of “We are conscientising farmers as re- “Over the past six years, a strong chain issues,” said Buss. new system and the Reserve Bank of Zim- the low prices. I have good quality tobacco gards the new environment but it’s not focus on improving cost and opera- He said the group’s selling price babwe assurances have to be adhered to but but the prices are not fair and I cannot sell easy. Unfortunately some floors are block- tional effectiveness has enabled the deflation of 0,3 percent indicat- our farmers are impatient and no longer at such low prices,” a farmer from Masho- ing farmer representatives from talking to group to invest in a winning cus- ed the weak position of consum- have faith in the system,” Edward Dune, naland Central said. farmers at their floors, resulting in unnec- tomer offer through lower prices, ers, with food retailers having to Zimbabwe National Farmers Union chief Meanwhile, Dune said traditionally the essary commotion between stakeholders in more attractive promotions, better use promotions to drive volume executive said. first 30-day sales of any season have nev- the industry.” [email protected] and more innovative products, com- growth. - IOL April 11-17 2019 Page 11 Companies&Markets The Financial Gazette CABS ELECTRONIC TRANSACTIONS SURGE — 12 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) CABS says its electronic transactions breached the RTGS$300 million mark in 2018, amid indications the mortgage lender’s newly-launched MasterCard processed funds worth over 0,73% 0,96% 0,17% 0,11% 0,39% US$700 000 in three months. 10,6684 12,41 77,48 11 373,12 1 379,86 Spooked investors flee ZSE

Omega Ukama Business Reporter SecZim bares OREIGN investors continue to flee the Zimbabwe Stock Exchange (ZSE) by Ftransferring their stocks to South Africa through dual-listed counters. more teeth Information gathered by this publication shows that 4 973 478 shares in Old Mutual , worth almost US$8 million, have been trans- Nelson Gahadza ferred from the ZSE to the Johannesburg Business Reporter Stock Exchange since the announcement of the monetary policy in February. HE Securities and Exchange Commission of Batanai Matsika, the head of research at Zimbabwe (SecZim) says proposed amendments Morgan & Co, said the transfer of fungible Tto the Securities and Exchange Act are expected stock from the ZSE will continue for the fore- to become law by June this year. seeable future until Zimbabwe’s foreign cur- Government last week approved amendments to the rency shortages improve. Securities and Exchange Act, which seek to align the “When the interbank was announced country’s capital markets with international standards, through the monetary policy statement this giving impetus to the finalisation of the law. trend slowed down because investors waited “We expect that the proposed amendments will be- to see if the interbank market would provide come law within the second quarter of 2019,” Gerald a way for them to liquidate and move their Dzangare, the SecZim acting chief executive, told The funds. Financial Gazette. “However, the interbank market has not He said the Finance ministry, in conjunction with provided much liquidity as there has only the Justice ministry will finalise the draft Bill. been about $65 million traded since it was “Once that is done, the Bill will then be introduced introduced. Still, even the little forex that is in Parliament for standard parliamentary procedures,” there is mostly going to the manufacturers and he said. other such priority needs making it virtually The amendments to the bill are also aimed at clar- impossible for portfolio investors to get any ifying the role of the Securities and Exchange Com- currency,” he said, adding that signs show that mission of Zimbabwe and extend its powers on market the transfers have now commenced. regulation. “The portfolio investors sell blue chips and “The amendments seek to address the deficiencies they buy shares in Old Mutual and then they and to align the legislation with market developments transfer to the JSE,” he said. and international best practice,” Monica Mutsvangwa, Matsika said the transfers were also a result the Information minister said at a Cabinet post briefing. of portfolio investors’ activities to capitalise She said the principles amended will assist inves- on arbitrage profit from buying and selling Foreign investors are transferring fungible shares to the JSE. tors in decision making while the market will be re- fungible stock across the exchanges. quired to provide full, accurate and timely disclosure “Activity in Old Mutual had actually come of financial results, risk and other information which is off but it has since picked up,” he added. and PPC in the short term,” the equities firm Hippo Valley Estates’ South African parent material to investors' decisions. IH Securities (IH) recently said it expected said in a 2019 monetary policy review note. company, Tongaat Hulett is in a precarious po- “They will also ensure fair and equitable treatment foreign investors to continue to flee the ZSE This comes as the central bank’s ‘portfolio sition as it faces a negative cash flow in the of holders of Securities and that financial statements be due to lack of clarity around the central bank's fund, which it introduced in 2017 in an attempt current trading period partly due to its inability in line with international accounting standards elimi- purported ring-fencing of foreign liabilities to speed up the repatriation of portfolio-relat- to recieve dividends from its Zimbabwean and nate regulatory arbitrage in the capital and markets such as dividends and portfolio investments. ed funds to foreign investors invested on the Mozambique operations. sector as well as expanding the scope of regulation “With the silence on interest rates and the ZSE, seems to have failed to gain traction due Meanwhile, Delta Corporation’s major of capital markets to cover issuers of Securities,” she ring fencing of foreign liabilities such as divi- to shortages of foreign currency in the country. shareholder Anheuser-Busch InBev has had said. dends and portfolio investments, we expect to Lately, foreign based companies with sub- to settle for RTGS$120 million worth of RBZ Mutsvangwa noted that government will enhance see normal activity on the local bourse whilst sidiaries in Zimbabwe are struggling to extract savings bond as recompense for its dividends the powers of the SECZ in undertaking their mandate foreign participants continue to exit the market profits and dividends from their business oper- that are stuck in Zimbabwe. to ensure there is sharing of information with foreign through fungible stocks such as Old Mutual ation in the southern African country. [email protected] regulators. [email protected] Page 12 | April 11-17 2019 The Financial Gazette Companies & Markets CABS electronic transactions surge ABS says its electronic transactions breached mortgage lender’s financials for the year under review. the RTGS$300 million mark in 2018, amid in- Matsaira said in 2018, CABS had managed to grow Cdications the mortgage lender’s newly-launched total assets to $1,4 billion from $1,2 billion. MasterCard processed funds worth over US$700 000 Meanwhile, the bank has managed to expand its net- in three months. work of correspondent banks following a partnership The wholly-owned Old Mutual Zimbabwe (OMZ) with a Spanish bank to cater for inward and outward subsidiary — which recorded a 17 percent profit in- foreign currency transactions. crease to $49,2 million at the close of 2018, buoyed by Simon Hammond, CABS’ managing director, said a 30 percent net interest income rise — last week said the financial institution was also working on securing its most thriving payments had been electronic on the more correspondent bank networks. back of Zimbabwe’s biting cash shortages. “We are pleased to advise that CABS has secured “There was a 49 percent growth in transactions on additional Nostro accounts in United States dollars the mobile money platform to $190,5 million while (USD) and Euro (EUR) with BMCE Bank Internation- Point of Sale values also rose to $128 million. al, Spain. “Launched towards end of year, the banking unit’s “However, the USD account is restricted to incom- MasterCard processed transactions worth over US$760 CABS electronic transactions breached the RTGS$300 million mark in 2018. ing transfers only, while the EUR account is for both 000 from 962 issued cards,” Jonas Mushosho, OMZ’s inward and outward transactions,” he said. chief executive, said at an analyst briefing on the risks and opportunities in Zimbabwe had linked to foreign exchange shortages He also said in 2018, CABS had renewed a US$25 group’s 2018 performance. further escalated, making the operating and the relationship between income and million facility from the Trade and Development Bank, Washington Matsaira, CABS’ chairman , howev- environment more hostile. expenses under inflationary conditions,” which has since been fully drawn. — Business Report- er said despite delivering a resilient set of results, the “Chief among these are elements he said in a statement accompanying the er [email protected] Potraz to review tariffs HE Postal and Telecommunication Regulatory Authority of Zimbabwe (POTRAZ) says it will Tcontinue to assess tariff adjustments to avert the risk of shrinking demand, which can compromise operators’ sustainability. This was after the regulator approved a tariff hike to 22 cents per minute with effect from April 01, 2019 from 16 cents per minute, but data charges were left unchanged at five cents per megabyte. Gift Machengete, the POTRAZ director general, said the latest tariff review was aimed at aligning telecommunication services to the movement in cost of service provision in 2018 as well as the new exchange rate regime, which came into effect in February. “For services that have registered significant traffic growth, there is need to assess the impact of such growth in terms of diminishing marginal cost of service provision against the need for continuous network capacity upgrades,” he said in a circular to telecommunication service providers. “Also the need to balance operator’s viability against service affordability to consumers cannot be overempha- sized”. Zimbabwe has been experiencing acute price increases for the past six months resulting in annual inflation reaching a 10-year high of 59,6 percent in February this year and telecommunication companies wanted a tariff hike to match rising inflation. Local operators had proposed to increase tariffs by at least 150 percent, which would have seen some voice tariff charges going up to an average of 40 cents per minute. But documents seen by this publication shows that Potraz used the cost based principle in setting tariff thresholds using the Long-Run Average Incremental Cost cost models that were built in 2014 and updated in 2017 to protect consumers. A telecommunications industry expert said in so doing, the regulator considered the cost of service provision, market situation in terms of traffic usage trends, the need to ensure service affordability and the general economic fundamentals in order to strike a fine balance between operator viability and service affordability. “The regulator should be commended for balancing this emotive issue, in so far as operators need to survive, they still need to have subscribers who can afford their services. The issue of service affordability and the need to manage price shock on the part of the consumers was also taken into account,” the expert added. In 2015, POTRAZ managed a price reduction shock that operators could have suffered had the regulator not considered the reducing impact of over the tops on mobile voice traffic when LRIC models had revealed that the cost of service provision for mobile operators was way below the then applicable tariff of US$0,23. The regulator then settled for a higher threshold of US$0,12 per minute, which was above cost model results that ranged between US$0,06 and US$0,10 per minute and this sustained the operators. [email protected] The Financial Gazette April 11-17 2019 | Page 13 Companies & Markets BNC on back foot despite nickel price surge Omega Ukama as macroeconomic fundamentals are all better than the previous period, were not not manage to prop up the nickel price on a sustained ba- Business Reporter priced in,” he said. high enough to change the circumstances sis. It now appears as if the market sentiment on electric This comes as the company’s opera- under which the project can be resumed. motor vehicles was too bullish, hence the price correc- INDURA Nickel Corporation (BNC)’s shares tions and strategies have been consider- At the current prices, power tariffs and tion mode that prevailed during the last quarter of the pe- slumped on the Zimbabwe Stock Exchange ably inhibited by the movements in the available feed levels, the smelter will not riod under review (2018),” Muchadeyi Masunda, BNC’s B(ZSE) during the first quarter, despite a surge in price of nickel. be viable, hence the decision to put it on board chairman told analysts recently. the price of nickel, its primary resource. BNC recently announced that it has hold until favourable conditions prevail,” Meanwhile, BNC said discussions between its trou- BNC, which is engaged in the mining and extraction put its $20 million smelter project on Batirai Manhando, BNC’s managing di- bled holding company Asa Resource Group (Asa) and a of nickel as well as the production of nickel by-products, hold due to declining nickel prices. rector, told analysts at a briefing recently. third party relating to the sale of a majority stake in the was one of the biggest losers on the ZSE during the pe- When the company raised funds for The company indicated that the smelt- mining company have been terminated. riod after losing 33 percent, which was way below par the smelter project through a bond in er restart will “see a significant reduction Asa, which holds a 74,73 percent stake in BNC, and as the benchmark All Share Index lost 17 percent during 2014, it had assumed that nickel prices in transport and penalty costs associated is currently under administration, has been in turmoil the same period. would rise from US$16 500 per tonne in with the sale of concentrate”. since last year when it fired its chief executive and finan- During the same period, Nickel price gained 25 per- 2014 to US$21 000 in 2016 before easing The amount receivable on the nickel cial director after they allegedly defrauded Freda Rebec- cent on the London Metal Exchange, gaining from a to about US$18 000 in 2018. content is also expected to increase sig- ca Mine, in which it holds 85 percent. price of US$10 435 per tonne in January to close the The industrial metal’s price, however, nificantly. FBCSR noted that while it is not black and white that quarter at a price of US$13 010 per tonne. defied the “consensus” forecasts, which These prospects, coupled with the all of the above has driven the slump in BNC shares, it Enock Rukarwa, a research analyst at FBC Securi- were based on projections by “approx- bullish sentiment for nickel price that has is likely that the slide was driven, “at least in part, by the ties Research (FBCSR), said while fundamentals “such imately 20” traders and fund managers, emerged lately on account of the rise in general downward trend on the market during the period as the price of nickel in the case of BNC, do have an after prices fell from about US$14 000 in prominence of the electric vehicle, had under review”. influence on stock price, there are almost always other 2014 to US$10 000 in 2016 before recov- propped the general outlook for the com- “Being a counter that is considerably liquid, BNC factors in place”. ering to US$11 000 in 2018. pany. would have also succumbed to the general trend,” said “The other fundamentals of the company, as well “The nickel prices in 2018, though “The electric motor vehicle story did Rukarwa. [email protected] Old Mutual ventures into tourism

LD Mutual Zimbabwe O(OMZ) says it has secured land in the resort town of Victoria Falls, and Hwange as the giant life assurer diversifies into tourism property development. Jonas Mushosho, OMZ’s chief executive, said the group was positioning for a development boom in Matabeleland North. “We acquired 6,6 Jonas Mushosho hectares (ha) in Vic Falls which will be developed into hospitality-related infrastructure and 9ha in Hwange which will be earmarked for commercial property. There is a lot of investor interest and we anticipate a spill-over to Hwange,” he said at a recent analyst’s briefing. This was after the listed insurance firm had completed development of 1 082 Pumula South Phase 2 and Nku- lumane stands in the financial year to December 31, 2018. The OMZ boss highlighted that the group was in discussions with the Victoria Falls local authority for development ideas. “Interest in the town has been huge so we have engaged to town council. We are looking at a conference center, hotel or hospital but have not yet set anything concrete,” he said. Mushosho said the group was financially geared to support the investments as alternative investments in 2018 had recorded a low uptake on the back of foreign exchange shortages. This comes as other players have taken a similar route to cushion yields and maximise value. Mashonaland Holdings, with a heavy Central Business District presence, undertook to convert one of its properties in Harare CBD known as Charter House into a hotel property through a partnership with a Chinese company. In 2017, Zimre Properties disposed of one its CBD office property to the government of Zimbabwe. ZIMRE Centre was disposed for a consideration of circa $10 million and the proceeds were channelled towards the development of a mall known as Sawanga in Victoria Falls. Besides chasing the tourism top dollar, property companies have been saddled with lower occupancies and yields of mainly CBD office properties as tenants preferred relatively more affordable suburban offices. Due to the challenging economic environment voids have gone up as some companies totally go out of business, downsize or relocate. Meanwhile, OMZ’s SME Mall in Harare opened in the first quarter with a 57 percent occupancy rate. “Occupancy has been satisfactory compared to other developments. The figure is here because it is being opened in phases but the anchor tenant is already on the ground. Otherwise all space has been taken up,” Musho- sho said. — Business Reporter [email protected] Page 14 | April 11-17 2019 The Financial Gazette Companies & Markets Cough up, SARS tells BAT-SA

HE South African Revenue Service (SARS) has According to a letter from SARS to with SARS over allegations of failing to pay R2 billion in accused the local arm of British American Tobac- BAT-SA that Business Times has seen, the taxes and interest. In its 2018 annual report BAT said it was co (BAT) of tax evasion and fraud and says it owes rebates were received after BAT-SA applied involved in several international audits of VAT and excise, T to SARS to reprocess millions of cigarettes, sales, corporate taxes and withholding taxes. R143 million. A letter to BAT-SA from SARS in October last year said including the Princeton brand, because of It said SARS was challenging it over assessments worth the violations were revealed in an audit. apparent manufacturing defects. R2,1 billion from 2006 to 2010. “You have contravened several provisions of the Act,” Sars found BAT-SA allegedly lied about SARS declined to comment, citing taxpayer confi den- the letter said. the reasons for reprocessing the cigarettes, tiality. But the company argues that the audit team drew and in some cases merely changed the The leaked letter says the alleged contraventions were “wrong conclusions” and that in fact SARS owes BAT-SA packaging to refl ect a “limited edition” discovered after a SARS audit found discrepancies in infor- R30 million, which it is “erroneously withholding.” cover. mation BAT-SA provided from its own internal audit. BAT-SA is embroiled in a separate battle with SARS Sars gave BAT-SA a way out: pay a R5 The SARS audit began on February 21, 2014 and over R2,1 billion that the tax agency says the company million fi ne, R102 million in excise duties looked into BAT-SA’s operations between January 2012 owes it in taxes and interest. and forfeitures and R36 million in interest, and January 2014. SARS is pursuing the local operation of global ciga- in place of facing prosecution. Acting SARS commissioner Mark Kingon brought the rette giant, claiming R143 million for alleged tax fraud and BAT-SA sponsors the Tobacco Institute illicit-economy unit and the large-business unit and the evading tax duties. of SA (TISA) #TakeBack-TheTax cam- large-business unit back to life after former commissioner The alleged contraventions, which BAT-SA vehemently paign. Tom Moyane shut them down in 2014. denies, saw the company allegedly receiving undue rebates In 2013 and 2014 SARS warned TISA In October 2014 Moyane also shut down an enforce- from SARS. that its members were involved in tax dodg- ment unit responsible for combating the illicit tobacco Instead, BAT-SA claims SARS still owe it R30 million ing. trade. Moyane was suspended in March 2018 and fi red in in rebates. BAT-SA is embroiled in a separate battle Tom Moyane November. — Sunday Times ... as firm denies tax INVITATION TO DOMESTIC COMPETITIVE BIDDING

The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) is inviting suitably qualified and reputa- cheating ble bidders to participate in the following tenders;

Compulsory Pre Closing Reference Number Description Closing Date –Bid Meeting Time claims POTRAZ/DOM/24/2019 Supply and Delivery of Laptops N/A 14 May 2019 10:00Hrs POTRAZ/DOM/25//2019 Supply and Delivery of Servers N/A 14 May 2019 10:00 Hrs llegations that the SA division of British Amer- POTRAZ/DOM/26/2019 Supply and Delivery of Multi – Purpose Printers N/A 14 May 2019 10:00Hrs ican Tobacco SA (BAT-SA) owes the South African Revenue Service (SARS) R143 million POTRAZ/DOM/27/2019 Provision of generator maintenance services – 02 May 2019 23 May 2019 10:00Hrs A due to “fraud and tax evasion” are “totally inaccurate”, various sites (framework agreement) 03 May 2019 Francois van der Merwe, chair of industry body the To- 06 May 2019 bacco Institute of Southern Africa (TISA), told Fin24 on 07 May 2019 Sunday. 08 May 2019 He was responding to an article in the Sunday Times, 09 May 2019 which stated that the tax agency wrote a letter to BAT- POTRAZ/DOM/28/2019 Provision of air – conditioner maintenance ser- 02 May 2019 23 May 2019 10:00Hrs SA, dated October last year, which “alleged contraven- vices – various sites (framework agreement) 03 May 2019 tions were discovered after a SARS audit”. 06 May 2019 BAT-SA also denied the claims in a separate statement. 07 May 2019 “We don’t owe any money for underpaying tax. We 08 May 2019 are, in fact, owed money for overpaying. That is why we 09 May 2019 are due this R30 million rebate,” said BAT-SA in a state- POTRAZ/DOM/29/2019 Provision of fumigation services- various sites 02 May 2019 23 May 2019 10:00Hrs ment issued on Sunday afternoon. (framework agreement) 03 May 2019 According to the Sunday Times, the revenue collec- 06 May 2019 tion agency is of the view that BAT-SA received undue 07 May 2019 rebates from SARS when it reprocessed millions of cig- 08 May 2019 arettes. ‘Creating a level playing eld’ 09 May 2019 BAT-SA is one of 10 members of the TISA. “BAT is a legitimate company, paying all its taxes, the biggest excise contributor in the tobacco industry and an Bidding documents are available upon paying of a non-refundable fee of ($25.00 RTGS) per document from the following accredited member of TISA, which represents the legal Offices:Congratulations!! Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) – 1008 Performance Close, (tobacco) industry,” Van der Merwe told Fin24. Mt Pleasant Business Park, Mt. Pleasant, Harare, ZIMBABWE He questioned the source of the allegations — a The Board, Management and Sta of the Postal and Telecommunication leaked document — adding the aim may be to cast doubt BidsRegulatory must be Authority bound of Zimbabwe and enclosed (POTRAZ) injoin sealed the nation envelopes in congratulating and endorsed on the outside with the advertised reference number, His Excellency, The President-elect of the Republic of Zimbabwe, Head of over legal companies and “distract the attention from the the descriptionState and Commander and the in Chiefclosing of the date. Zimbabwe The Defence bids shall Forces, be Cde addressed to: real problem, which is the illicit trade in the market, rob- Emmerson Dambudzo Mnangagwa on this well deserved victory Thein the justDirector General bing SA of at least R8 billion in taxes this year”. ended 2018 Harmonized election. Postal and Telecommunications Regulatory Authority of Zimbabwe TISA commissioned research into the market and, ac- Your Excellency, we appreciate your hard work, wisdom and guidance1008 Performancein Close cording to Van der Merwe, the results revealed that local illicit manufacturers are defrauding SARS of R8 billion steering this country into a digital economy. What remains for us is to ensureP.O. Box 843 that the existing digital divide is bridged, and no one is left behind in by not declaring all their production. Mt Pleasant Business Park accessing a ordable and high quality communication services. We will It further revealed that one such company, is responsi- sustainably work towards achieving Electronic-enabled-Development (ED)Mt. Pleasant, for which you are a champion. ble for 73 percent of the total illicit trade. Harare, ZIMBABWE. “This is the real story and not the attempt to paint a INDEED NO ZIMBABWEAN WILL BE LEFT BEHIND bad picture of BAT, which does not form part of any ille- NB: Bidders participating in tenders with site visits should plan for their own logistics, including securing fuel. gal conduct,” said Van der Merwe. BAT-SA announced in a statement issued on Sunday Bids which are not received by the closing date and time, whether by hand or by post, will be treated as late bids and will afternoon that it will commit all of a R30 million SARS be rejected. BiddersMAKOROKOTO! are free to witness the opening of the bids on the closing date and time. rebate, which it claims it is owed by the revenue agency, AMHLOPHE! CONGRATULATIONS! to the #TakeBackTheTax initiative, ﬁ ghting the illegal trade in cigarettes in SA. According to BAT-SA, it collected and paid more than R9,1 billion in taxes in South Africa last year and ex- 1008 Performance Close, Mt Pleasant Business Park, O Norfolk Road, P. O. Box MP843 Mount Pleasant, Harare, Zimbabwe pects to receive the rebate from SARS for overpaid taxes Email: [email protected], Telephone: +263 24 333032, Fax: +263 24 333041, Tolfree: 0800 4303, Website: www.potraz.gov.zw “shortly”. @potraz.zw @potraz_zw SARS did not immediately reply to a request for comment on Sunday. — Fin24 The Financial Gazette April 11-17 2019 | Page 15 Companies & Markets Van Hoog bullish after CFI shakeup

Shame Makoshori ments, the investments vehicles in which radzikwa who had thrown in the towel as temperatures Companies Editor he holds shareholding in several firms, rose ahead of the crunch EGM. should have replicated the strategy de- CEO, Timothy Nyika also resigned. He was imme- RITISH businessman Nicholas van Hoogstraten ployed to clean up CFI at the Zimbabwe diately replaced by Shingi Chibhanguza, in an acting says he expects CFI Holdings Limited (CFI) to Stock Exchange (ZSE) listed Hwange capacity. Bturn the corner following board and management Colliery Limited (HCCL) and leisure Muradzikwa, who enjoyed respect from both sides, changes. chain-Rainbow Tourism Group (RTG). had been drafted in to calm the ship just as the battle to The millionaire investor flexed his financial muscle The whirlwind changes that took place control CFI was slipping out of hand, with its stock on in 2017, after spending millions to increase his stake to during heated exchanges between Mes- the ZSE among the casualties. 54 percent in CFI, in a bid to crash potential rebellion by sina and rival shareholder, Stalap at an He spoke to The Financial Gazette weeks before rival investors. extraordinary general meeting (EGM) in reports of potential fraud and corruption resurfaced at He followed this with a board and management shake- November 2017 saw the expulsion of di- HCCL following an external audit. up to tighten his grip at the firm that he says it close to rectors belonging to Stalap, an investment The audit, reported by a business weekly on Friday his heart. vehicle which was controlled by the Na- last week, claimed that at least $115 million had been “There is no more corruption and mismanagement at tional Social Security and Zimre. misused at HCCL, one of Zimbabwe’s biggest mines CFI. We accomplished our goals two years ago. This is They were replaced by mostly youth- where the Government of Zimbabwe has significant in- what we wanted to do at RTG and Hwange if we had ful directors with allegiance to van Hoog- terests. been allowed to do so,” van Hoogstraten told The Fi- straten. During the stormy AGM three weeks ago, Stalap re- nancial Gazette after the group’s recent annual general Valeri Pasi came in as chairperson, returned to haunt the CFI boardroom again, with moves meeting (AGM). placing former NicozDiamond Insurance Nicholas van Hoogstraten to shoot down three agenda items of the day. However, He said if circumstances had allowed, Messina Invest- chief executive officer (CEO), Grace Mu- Messina prevailed. [email protected] Chinese investor The Financial Gazette @FingazLive rescues AVM

Nelson Gahadza Business Reporter

VM Africa (AVM) says it is pinning hopes of modernising its aged vehicle assembly plant Aon a new Chinese investor, City Card. The bus manufacturer used to produce 40 buses per month, some of which were exported to other Afri- can countries such as Zambia and Uganda before its fortunes took a severe knock at the turn of the mil- lennium. Jacob Kupa, AVM’s managing director, said the partnership will see his company ramping up production from the current manufacturing capacity of below 10 percent. “There is a lot of retooling that is required as we move to revive operations. There are certain areas that need to be changed in terms of systems and equipment,” he told The Financial Gazette. Information gathered by this publication shows that City Card will bring equipment, machinery and technology. The Chinese company will also provide funds for re-tooling, assembly kits and plant rehabil- itation. Ngonidzashe Matsenga, the City Card chief executive officer, said his company had a strong balance sheet to meet US$100 million needed for the retooling of AVM. “In terms of retooling, what you may see as a problem here is not a problem in China. The equipment needed here is actually the basic bus manufacturing processes in China. Our company is producing 10 000 units, and that should already give an indication on the kind of investment we are capable of,” he said. City Card is a Sino-Zim joint venture and is the fifth largest bus manufacturer in China. AVM is currently producing two buses a month but targets to increase production to 600 units per annum. “We are looking at needs of the country, the local industry is in short supply of buses. Outside the local market, we will also look to export as far as Kenya, Uganda, Malawi, Zambia, far afield,” Matsenga said. He added that a minimum of 50 bus kits would be delivered at any given time and the capacity will depend on demand. “While it is a long technical process, the partners are already in Zimbabwe assessing what needs to be done,” he said. Meanwhile, Kupa said AVM’s Msasa plant has capacity to produce domestic and long-haul buses powered by drive-lines like DAF, Scania, Mercedes Benz, Volvo, Iveco among other engine producers. “In this relationship City Card will provide complete knocked down kits for buses to be assembled at AVM plant. It is our hope that this partnership will change the face of AVM Africa,” he said. Kupa said a completed bus has 65 percent compo- nents of local products while 35 percent is imported. Subscribe Now As a result, he said, the foreign currency challenges remains the biggest threat to assembling operations. “However, we would like to thank government through the Reserve Bank of Zimbabwe for some foreign currency allocations, but this is not enough for a plant of this size,” he said. He added that the company requires more foreign currency allocation for the importation of bus kits in an effort to resuscitate the bus manufacturing industry. [email protected] Page 16 | April 11-17 2019 The Financial Gazette Motoring Mercedes-Benz Sprinter

possible to praise all variants for the very effective isolation of mechanical Never feel sorry for a van driver again! commotion as well as the surprising- ly spritely performance, especially in 6-cylinder guise. The manual gearboxes were a far cry from the heavy and notchy devices associated with load-carrying vehicles of TOP GEAR with Richard Wiley the past, but it was the M-B automatic that stood out for its smoothness and ease of use which doubtless will con- CAN’T be the only one who won- tribute to safety and overall durability. ders about the origins of some vehi- The true purpose of the track envi- Icle model names and none more so ronment was revealed when we con- than the moniker “Sprinter” as attached ducted sprint starts to experience just to the portly rump of a Mercedes-Benz how well all models can get moving, van. The name, after all, conjures up vi- but it was the braking and handling that sons of a lean athlete about to unleash stood out above all else. himself from starting blocks attached to With the assistance of unseen elec- a tartan track. tronic aids working away underneath Well, having spent a day at the famed the bonnet and chassis, the overall sta- Kyalami motor racing venue testing all bility of the Sprinter is quite extraordi- shapes and sizes of Sprinter models, I nary. We conducted slalom tests at quite now have a better understanding of just high speeds and were encouraged to why that apparently anomalous name make overly-aggressive turns between does indeed have more than a shred of the marker cones to feel how potentially relevance. wayward behaviour is reined-in. Ulti- You might also be wondering why a mately, the laws of physics cannot be venue such as this was chosen to launch fully over-ruled, but the Sprinter most the third generation of M-B’s ultra-suc- certainly has enough safety nannies cessful commercial range. One rather High-roofed Sprinter passenger version with side glazing on-board to compensate for unexpected obvious reason is that the refurbished situations and /or over-exuberance from Kyalami circuit is now blessed with the driver. plenty of new structures perfectly set- The same goes for the brakes with up for display purposes and the other is full ABS assistance. On a streaming that there are acres of paved areas other wet track, virtually no lock-up is expe- than the track itself to check out vehicle rienced but most importantly, steering dynamics. control under full braking is maintained Having started my existence north to an uncanny degree. Good heavens – of the Limpopo, I was really pleased to we even went around a cone-marked discover that our day’s adventure com- track on a fl ooded surface and were menced in a room dedicated to multi- again encouraged to induce wayward South African motor racing champion, behaviour to test the effi cacy of the Bulawayo’s own John Love ….. but I electronic stability system. Each and ev- digress. ery time, the rear end was hauled in the It was here that we were introduced second there was any sign of a step-out. to the third generation Sprinter which Remarkable just doesn’t describe clearly is being touted with good cause the progress made in vehicle control as a jack of all trades, but, given that as applicable to commercial vehicles it carries a star on its nose and rump, with a GVM of up to 5 tonnes. And maybe the “jack” description is a tad as a fi nal display of confi dence, a van- uncomplimentary! load of journos was taken around the As M-B staffers were keen to point full Kyalami circuit with a professional out, the Sprinter in earlier iterations driver at the wheel. The purpose was made a name for itself for its economy not to demonstrate speed per se because of operation allied to its robustness and Multi-function steering wheel and car-like instruments for the Sprinter that’s not what these vehicles are made versatility. That means its can be tai- for, but rather to show how even when lored to do pretty well anything. People driven with undue enthusiasm, the con- carrier, goods carrier, mobile home, trol that is provided makes for a much ambulance, mobile workshop and so on safer operating environment. and on but bear in mind the availability As you might expect from a com- of such conversions is market-depen- pany with vast experience in manufac- dent. turing commercial vehicles carrying a For sure, it will be most commonly three-pointed star, the new Sprinter de- employed as a panel van, but in South rivatives have been subjected to stren- Africa at least, MBSA has nurtured uous and lengthy testing to underpin a close relationship with specialist the versatility offered by a range which coach-builders to produce precisely comes with high roofs, normal roofs, no what the market demands. roofs and an endless variety of motive Of particular relevance given on-go- power and suspension options. There ing issues surrounding the transporta- simply cannot be a usage category that’s tion of people is the introduction of a been overlooked, so just for a change, long-distance taxi named Inkanyezi. it’s almost possible to say that M-B has Operators are offered a choice of three designed a vehicle range that truly can derivatives decked out in differing trim be all things to all people. levels with the option of including a As far as Zimbabwe is concerned, full array of 3-point seat belts as well as the offi cial importers for the Mer- free-fl ow air conditioning, radio/speak- cedes-Benz brand are Zimoco who have er installations and multiple USB ports looked after the passenger car and com- among the more popular choices. mercial vehicle interests of the German Getting back to the work environ- Wide-opening sliding doors facilitate loading in the cargo carrier company for decades. It stands to rea- ment, there are endless versions of what son that special versions of the Sprint- is known internally as the FC or Freight outputs rising from 84kW/320Nm to by steering wheel switches that close- not known for good visibility but fear er which are available in South Africa Carrier. 120kW/380Nm to 140kW/440Nm. A ly resemble what you’ll fi nd in a Merc not as aside from a rear-facing camera, following specifi c conversions carried The two “entry level” 316CDI mod- new 3 490kg GVM model joins the saloon. a full 360-degree surveillance system is out by dedicated after-market construc- els in regular or long wheel base are pro- 3550 and 5 000kg versions which again The seats too are well-shaped, deep- offered courtesy of a Parking Package. tors/bodybuilders, may not be available vided with a 120kW/380Nm four-cyl- are available in a bewildering array of ly bolstered affairs that can be had with Other safety/convenience aids include in Zimbabwe. Zimoco has been au- inder turbo diesel and have a GVM wheelbases, roof heights and drive con- electric adjustment and which in com- Distronic to maintain safe following dis- thorised to sell/maintain Sprinter Van, of 3 550kg. The bigger boys, dubbed fi gurations, including AWD. bination with a fully-adjustable steering tances as well as Hill Start Assist, Cross Kombi, Crew Cab and Chassis versions 519CDI are powered by a creamy V6 Interior trim and fi tments are also wheel, ensure that comfort levels are Wind Assist and Active Brake Assist. varying in GVM from 3t to 5t but this turbo diesel with 140kW/440Nm and diverse but even at the lower level, the unusually high. Keyless start can also In terms of driving, we sampled all range encompasses previous generation come with a choice of wheelbase, dou- cabin of the Sprinter has moved upmar- be had along with the upgraded air con wheelbases and various confi gurations models. Potential purchasers are there- ble or single cab and 2WD or AWD ket. system and to appease cell phone freaks, as well as the four and six-cylinder tur- fore advised to consult the Commercial with a GVM of 5 000kg. For example, the very freshest Merc wireless charging is offered together bo-diesel motors and manual and auto Vehicle division of Zimoco to obtain an No fewer than 12 Sprinter Pan- MBUX multi-media system is offered with USB ports. For the Panel Vans, transmissions. All the driving was con- update of what might be made available el Vans (PV) are offered in a multi- with a choice of 7-inch or 10.25-inch even an internal roof rack is offered! ducted on -track so it’s impossible to from the ranks of the new range de- tude of confi gurations with engine displays controlled either by voice or It‘s self-obvious that panel vans are discuss ride qualities but it is perfectly scribed above. The Financial Gazette April 11-17 2019 | Page 17 Column How do you decide what to pay?

HATEVER salary you decide to pay a and inexperienced employees must always employees have nothing to do with the Setting the right remuneration levels for new employee or one who has just been start at the minimum of the grade. This rule company or employee’s performance. This each employee in line with their current Wpromoted brings some level of risk to your does not apply in all cases but override it is a tragedy considering the dire conditions or expected value addition to the business business. The risk is that the individual may fail to only in exceptional circumstances. businesses are operating under. It is one environment is a game changer. It is prudent deliver while you have tied the organisation into a Good performers must be paid around the of the opportunities missed by many for the business to strike a balance between a high cost structure. midpoint and very few top grade performers organisations to restructure their benefits fixed and variable pay component. This will The euphoria of getting a new person on-board qualify to be paid at the top of the salary structure to avoid leakages. enable the business to survive the shocks sometimes works against good principles of salary range. Administering your pay in this way A lot of employers are losing money that often come from a slump in business or structuring and administration. In practice, it has not ensures that you do not over pay people who through leakages directly linked to each the general business cycles. been easy for most organisations to get rid of non- do not deserve such pay or underpay people benefit or leakages of an administrative What is needed is to do an audit of the performing employees due to inability to provide who deserve more. nature. The best way is to convert every non- whole remuneration system to see if it is credible evidence of non-performance and other In our pay structure and salary audits, cash benefit to cash and let the employee aligned to your business strategy and the factors such as political considerations. we normally find that a lot of financial decide how best to use their money. Some general business trends. Once the audit Is there a best way to set salaries for new resources are wasted in paying people who payslips are two A4 size pages detailing findings are available it is easy to realign employees? do not deserve such earnings in relation to and breaking down the package. What for? the remuneration packages with the current In order to their contribution to the business. Give the employee one figure where all the business environment. minimise the risk One of the biggest challenges in how necessary deductions are done. Whether you l Nguwi is an occupational of over paying or remuneration is administered in Zimbabwe call the money housing, danger allowance psychologist and managing consultant underpaying, there is that over and above the basic salary, all etc. it is still a salary, so why all these with Industrial Psychology Consultants. are a number of the costly benefits that employers give names? He writes in his personal capacity. checks and balances that you need to undertake. The first is that, if you have a pay structure, HR Perspective this assignment becomes very easy. with A pay structure Memory Nguwi indicates the minimum, midpoint and maximum salary for each grade. The minimum per grade represents the minimum salary or risk you are prepared to carry when paying someone you are not sure how they will to perform. Organisations with credible pay structures always start here. We know there are some new employees who will claim they have the experience and have been performing in their previous roles so they would want more. Do not get tempted. If a new employee refuses to accept the offer and demands a salary close to the midpoint of the grade, here is what you do. Let me illustrate this with an example. On the market accountants can fetch a minimum of $1,606, midpoint of $1,832 and maximum of $1,832 ― hypothetically. When employing the accountant who falls into this particular grade, I will offer them $1,606 and if they refuse this offer and demand $1 832, and I desperately need them, I will offer them $1,606 as fixed basic salary and offer them an extra $226, which will fall away if they prove that they cannot consistently meet the performance standards. The fact that 100 percent of what people earn in Zimbabwe is fixed, requires that executives exercise extreme care when deciding what to pay individual employees. Once you commit to a fixed salary, you cannot easily reduce it and you have to honour your commitment to pay. The second point to note is that new employees Twitter founder gets $1,40 salary

WITTER co- founder Jack TDorsey received his first salary since returning to the chief executive officer role four years ago: 140 cents. The conspicuously modest sum, disclosed Monday in a regulatory filing, equals the original character limit for tweets on the company’s social network, a restriction the San Francisco-based firm scrapped in 2017 to boost user engagement. Dorsey has for years chose not to receive any Jack Dorsey salary, bonuses or stock awards from Twitter “as a testament to his commitment to and belief in Twitter’s long-term value creation potential,” the filing said. The 140-character limit ― a relic of a previous technological era ― was the maximum that could fit in mobile text messages when the service started in 2006, before the mass adoption of smartphones. The limit was increased to 280 characters in late 2017. It’s unclear if Dorsey’s salary will double, too. ― Bloomberg Page 18 |April 11-17 2019 The Financial Gazette Column Fuel excise duty refund law gazetted HE government has gazetted a law in the shall be deemed to come into facility might have been overtaken requires applications to be submitted direct to any ZIMRA form of Statutory Instrument 72 of 2019 operation on January 13, 2019, by events due to the evening out of offi ce with the required documentation. The documentation Tproviding for a refund of excise duty on up to February 22, 2019. the purchasing power parity. and details required for registration remained the same as fuel to specifi ed benefi ciaries. This gives impetus This therefore suggests that Who qualifi es for the refund? previously announced, that is, the name under which the to the Zimbabwe Revenue Authority (ZIMRA) to the benefi ciaries will only be An approved fuel duty refund approved fuel duty refund benefi ciary will operate and the process fuel duty refunds as initially announced allowed to claim the refund in beneficiary is one who is eligible address of its principal offi ce in Zimbabwe; the applicant’s on January 20, 2019. respect of fuel payments that for the duty refund. The statutory company registration/incorporation documents; proof of The government had, on January 20, 2019 they made from January 13 instrument defi nes an approved membership of a business association; and current and valid issued a statement providing for relief through until February 22, when the fuel duty refund beneficiary as any Tax Clearance Certifi cate issued by ZIMRA. refund of excise duty on fuel consumed by interbank foreign exchange person or body of persons, carrying Conditions for granting of the refund registered businesses in the manufacturing, system was introduced. on a trade in the agricultural, For a benefi ciary to be able to get the refund, they should mining, agriculture and transport industries. This It therefore means that mining, manufacturing and submit an invoice or receipt issued by the supplier of the fuel rebate was specifi cally available on the basis that any claims in respect of fuel Tax Matters transport sectors and has made an from which duty paid shall be refunded, which contains the it shall only be applicable to those traders who met payments falling outside the with application on Form No. Ex FRF following particulars: the requirements. stipulated period will not be Marvellous Tapera 2 to the Commissioner of Taxes  An individual serialised number and the date on which The major thrust of the refund facility was refunded. It is worth noting to claim refund of duty in terms the invoice or receipt is issued; to ensure that there will be no price increases of that the time covered by the of section 125 of the Customs and  The name, address and Zimbabwe Energy Regulatory goods and services by benefi ciaries relative to the refund facility is the period when the rate of the Excise Act. This essentially excludes all traders in Authority licence number of the supplier; change in the price of fuel that had been brought RTGS and the US dollar were still at par. Due to other sectors.  The name and address of the recipient of the fuel; about through Statutory Instrument 9 of 2019. the adoption of the interbank foreign exchange Changes in registration application process  A description of the goods supplied; Which period is covered by the refund rate system, where the rate between the RTGS While the previous announcements required  The quantity or volume of the fuel supplied; facility? dollar and the US dollar is now determined on an applicant to submit their application through  Registration number of the vehicle supplied with fuel In terms of the instrument, the regulations a willing buyer willing seller basis, the refund their business association, the statutory instrument or description of the container in which the fuel has been loaded;  The value of the fuel supplied; and  Any other additional particulars as may be required by the Commissioner. Documented proof of productive use of the fuel for the period of the claim is another key requirement to be submitted to ZIMRA. If any of the above requirements is not available, the refund will not be processed. The refund claim must be submitted by the 10th day in the month following that of purchase of the fuel. The validity of the invoice shall fall within the period of claim. Refund set off against outstanding tax obligations If the Commissioner is satisfi ed that the application for refund made by a person meets all the relevant requirements; s/he will refund the total amount claimed if the approved fuel duty refund benefi ciary has no outstanding tax liability. However, if an applicant has outstanding tax liabilities, then ZIMRA will refund the balance, after deducting such outstanding tax liability to the approved fuel duty refund benefi ciary. The benefi ciaries should also provide truthful information as any false information supplied in connection with the refund claim will render the claimant liable to hefty fi nes or imprisonment. Since the facility is for a fi xed period, that is January 13 to 22 February, businesses should not bank on the facility any more as it has expired. They should therefore make their business decisions bearing in mind that the facility no longer exists. Meanwhile Matrix Tax School will be hosting its 2019 Victoria Falls Tax Conference from May 22 to 25.  Tapera is the founder of Tax Matrix (Private) Limited. He writes in his personal capacity. ZB responds to Idai

B FINANCIAL Holdings (ZB) Qhas Zcontributed $60 000 goods to Cyclone Idai victims. Ron Mutandagayi, ZB chief executive, said the group was deeply saddened by the tragic loss of lives, homes, and infrastructure in Chimanimani, Chipinge and Buhera, which were devastated by the cyclone. “The loss to human lives and destruction of property from the serious Ron Mutandagayi fl oods and landslides caused by the heavy torrential rain from Cyclone Idai, is indeed heartbreaking, not to mention the horrifi c pictures of damage, the dead and the suffering that we have all seen in the media. A signifi cant number of people and institutions have lost their homes and property; bridges and roads have been completely destroyed or badly damaged while business and normal life of the people have been disrupted.” The ZB boss noted that now that the cyclone has abated, it is time to assess the damage and in the medium to long term, reconstruct. “In line with our corporate social responsibility philosophy at ZB, we are concerned about the well-being of our communities and it is vital for us to play our part in dealing with this national disaster. This is also in line with our current campaign of “Going Big on Wellness”. “As we sought to fi nd the best way to play our part, we chose to align with the Zimbabwe Red Cross Society as they are recognised as a major player of global repute when it comes to dealing with national disasters of this kind,” Mutandagayi said. ZB, through the Red Cross, donated mealie meal, rice, kapenta, sugar beans, cooking oil, and mineral water. In addition, the fi nancial institution also provided blankets, gloves, gumboots and worksuits for volunteers. newsdesk@fi ngaz.co.zw The Financial Gazette April 11-17 2019 | Page 19 Column Front row status for nomination team N US corporate parlance it is often termed the gover- Undertaking background checks of candi- company information and resources necessary to nance committee and elsewhere it is grouped together dates prior to nomination; discharge its duties. It has the right to obtain inde- Iwith remuneration or human capital or transformation or Formalising the appointment of new direc- pendent outside professional advice to assist with directors affairs. It is the only committee with the propensi- tors through written agreements; the execution of its duties at the company’s cost ty to be so paired up with other hot potato titles, which con- Oversee development of a formal induction subject to a board approved process. fi rms its constant currency. Together with audit, it is one of programme for new directors; Administration: The committee compiles a the foremost committees of the board and shapes the foam Arranging mentorship programmes for in- work calendar aligned to that of the board stip- and substance of the board now and in future. experienced directors; ulating the number and dates of meetings pro- In practice it is an equivalent of the HR directorate for Overseeing implementation of continuous viding for those on ad hoc basis. The company the board, which gives it invaluable importance but like professional development for all directors; secretary provides secretariat and administration others, it is a committee of the board, operating within the Considering directors’ individual perfor- facilities. Relevant executives can be invited per- confi nes of defi ned terms of reference. Executives Only Corner mance and removing non-performers; manently or on need-basis. The deliberations of the committee do not reduce the with Leading the search and appointment of the The nomination committee takes the front individual and collective responsibilities of board members Shepherd Shonhiwa CEO when necessary; row position among other board portfolios due to in regard to their fi duciary duties and responsibilities. They Ensure development and implementation of the critical role it plays to help the board become must continue to exercise due care and judgment in accor- Committee responsibilities: As the human succession plans for the CEO and key executives. effective and effi cient. It shapes the quality of the dance with their statutory obligations. side of the board the committee plays a critical Committee authority: It operates under the board and the organisation today and well into the Composition: The committee should comprise at least role to create a balanced and effective organisa- ambit of the board with clear terms of reference future. “Sometimes you have to fi ght the battle three non-executive directors, a majority of them indepen- tional machinery. including powers to investigate any related mat- twice in order to win” ― Margaret Thatcher. dent non-executive directors. All its members are nominat- Main responsibilities include: ter. It may call for information from chairpersons  Shonhiwa is a chartered director (SA) ed by the board. The chairman of the board is an ex offi cio Identifying skill/gender/age/ethnic gaps on of other board committees and executives for its and has authored books on leadership. He member of the committee and can be its chairman ― (this the board and scouting for candidates; deliberations. It is granted reasonable access to writes in his personal capacity. being the only committee he can chair). The CEO may be invited to some or all its meetings, particularly if the committee’s terms cover remuneration and other human capital matters. All its members must have suffi cient qualifi cations, skills and experience to discharge their duties. The underlying skills are business administration and human capital management. Role of the committee: As a smaller team of experts it assists the board to ensure that:  The board has the appropriate composition for it to execute its duties effectively; “NEWSWorthKnowing”  Suitable directors are appointed through a formal process;  Induction and continuous professional development of directors is undertaken;  Formal succession planning based on rotation cycles for the board is done;  Recommend to the board appropriate levels of compensation for directors and executives;  Attending to matters of misconduct of a director on There is a new chef in town, serving you with all behalf of the board; the news worth knowing straight to your phone Liquid connects DAILY!! cyclone victims

Business Reporter

IQUID Telecom (Liquid) has extended relief assistance to cyclone hit areas by providing inter- Lnet and voice services. Wellington Makamure, the Liquid southern region chief executive, said the group deployed internet and voice services for cyclone disaster call centres which are run by the Zimbabwe Defence Forces at three sites ― Skyline Relief Centre, Silverstream Re- lief Centre and Kopa Re- lief Centre. Business war “We believe in unityM and the spirit of oneness. nangagwa We recognise and are ag- ms up to grieved by the loss of life ’ and livelihoods and the s pr extensive damage to in- omises frastructure. We are cog- nisant of the restorative work that needs to be done after the devastation left by Cyclone Idai,” he said. Wellington Makamure He added that the com- SMS the word “FIN” to pany was working together with Higher Life Foun- dation and other stakeholders to restore comunications HOW TO to tChimanimani. 33567 According to Makamure, the connected centres are SUBSCRIBE (Available to Econet subscribers only) now serving as relief centres where activities are coordinated. Subscribe for ONLY 12c/day He said coordination is being done at Skyline Relief Centre, logistics and donations at Silverstream Relief Centre and at Kopa Relief Centre. FINGAZ LIVE is the most informative and most efficient daily mobile news platform in Zimbabwe on In addition, Liquid set up a microwave link at all three locations and high internet bandwidth capacity at breaking national news, relevant economic news, trending societal issues and latest sporting news. each relief centre. “Liquid has also enhanced connectivity to 17 hospi- www.fingaz.co.zw booking@fingaz.co.zw The Financial Gazette @FingazLive tals and clinics in the area to allow for easy communication regarding medical needs and emergencies. 2nd Floor, Green Bridge South, Eastgate Complex, Harare, Zimbabwe. Tel: +263 (242) 781571-8 “This connectivity will also help victims communicate with their families during this diffi cult time,” Makamure said. newsdesk@fi ngaz.co,.zw Page 20 | April 11-17 2019 The Financial Gazette Column Avoid falling into rogue lawyers’ hands

ANY a time, I have encountered Time permitting, I shall just knock on any lawyer’s door personal friends, family friends, workmates or media re- members of the public complaining present a discussion on the for assistance. ports. Once one is satisfied about a legal practitioner’s ex- Mabout bad treatment by legal practi- remedies available to the This must never be the case perience and capabilities, one should be able to, through tioners in private practice. As I listened to their public who get sloppy service because lawyers are no differ- a frank discussion during consultations, be able to create stories, a consistent narrative emerged, which is from legal practitioners. All ent from medical doctors in the professional compatibility with the lawyer. that of poor lawyer-client relationships, inevi- that people need to know is way they articulate sensitive Some legal practitioners are very good but are unable tably resulting from shoddy services. This sad that the Law Society of Zim- personal life changing challeng- to sustain personal relationships with clients. This is mo- story has motivated me to discuss the subject babwe plays a central and es affecting those in need of reso since a lawyer-client relationship should transcend of client relationships since this is what brews a crucial role in so far as dis- services. Some legal problems the professional realm. good long lasting relationship or one that does cipline of legal practitioners are life threatening and some Some lawyers are aloof and hardly smile at clients. not last the end of day. is concerned. For those ag- have far-reaching implications Some are outright arrogant and think they know it all and The problems that the public complain grieved in whatever manner, on people’s futures, thereby re- have seen it all and, at the end of the day, this results in about are numerous. Some are offended by the first port of call must quiring the best professional care clients being alienated from them. being overcharged, then some have their funds therefore be the Law Society. that one can get. It is not always the case that those lawyers who are pilfered by greedy lawyers, some get a shoddy Choosing a lawyer to give Legal Matters I therefore, and at the expense academically gifted pass out as the best performers in pri- service and lose cases that otherwise they ought instructions is no mean task with of repetition, discourage those vate practice. Private practice requires strong networkers, not to have lost, some lawyers are drunkards, and must always differ from VOTE MUZA seeking legal services to pick on people who are easy at creating lasting friendships, social- others complain of poor communication aris- the way other service provid- any lawyer without first check- ites who are always happy around people. This is the type ing from lawyers who do not pick up telephone ers are selected. Unfortunately, for some and for ing on their capacity to discharge the client’s of lawyer most members of the public are comfortable calls while others never get feedback and/or up- whatever unknown reason, some people pick mandate. with. It is therefore imperative when making a choice to dates for work they would have instructed their lawyers as if they are purchasing groceries in A lawyer’s history of competence is a pre- be happy about a lawyer’s personality and character. lawyers on. The list is in fact endless. a supermarket. They make it seem so easy and requisite. Recommendations come through Talking of character, there are some lawyers who lack morals and are inclined to negative traits of de- bauchery and will not The problems that hesitate to, for exam- “the public complain ple, seduce an estranged about are numer- All correspondence should be addressed to MINISTRY OF LANDS, spouse he or she may be ous. Some are offended “The Permanent Secretary” AGRICULTURE, WATER, CLIMATE assisting in a matrimo- by being overcharged, Telephone: 706081/9 AND RURAL RESETTLEMENT nial issue. I have already then some have their highlighted the propen- Fax: 734646 1 Borrowdale Road sity by some legal prac- funds pilfered by greedy Private Bag 7701 titioners to pinch client’s lawyers, some get a shod- Telex: ZIM AGRIC: 22455 ZW Causeway funds. Relationships dy service and lose cases Harare must therefore be formed that otherwise they ought well aware of the hazards not to have lost, some Re-advertisement of such characters within lawyers are drunkards, the legal profession. Green Climate Fund (GCF) National Designated Authority (NDA) Readiness National Consultant Advert At the end of the day, others complain of poor what emerges is that le- communication arising Job Title National Consultant (NC) - NDA Support gal practitioner-client re- from lawyers who do not Duty station Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement (MLAWCRR) lationships must endure pick up telephone calls time and generations. while others never get Application Deadline 23 April, 2019 They must be based on feedback and/or updates Type of Contract Individual / Company fixed contract utmost trust and excel- for work they would have lent performance when Duration of Contract 18 Months it comes to execution of instructed their lawyers Expected Starting Date 01 May 2019 clients’ mandates. Even on. The list is in fact end- BACKGROUND where a lawyer floun- less.” ders, clients are easily The Government of Zimbabwe submitted its Nationally Determined Contributions (NDCs) to the United Nations forgiving when they no- Framework Convention on Climate Change (UNFCCC) and ratified the Paris Agreement in September 2016. In so tice that the stumble happened while backed by great effort and dedication. For it is not always the case since the doing, the country committed to implementing various climate change mitigation actions, strategies or policies litigation route is fraught with menacing hazards that even o some of the most gifted lawyers may not easily navigate. that result in the reduction in greenhouse gases emissions, keeping temperature rise to below 1.5 C and pursuing However, I have over the years seen clients continuing to low carbon development and climate resilient pathways. place trust in such lawyers and even recommending many more people to a lawyer who exhibits unflinching dedication to a client’s cause. Divorces are not easy to handle and they require ex- In view of the country’s climate resilient developmental aspirations and susceptibility to multiple climate change perienced, mature lawyers since at the end of the day, one may end up being a counsellor in addition to being challenges that include erratic rainfall, perennial floods, recurrent droughts, pollution, deforestation, land a lawyer. Similarly, cases involving threats to a client’s degradation, veldt fires, Zimbabwe developed a National Climate Policy, a National Climate Change Response assets like dwelling houses and/or businesses, are also highly sensitive and require a caring, patient, reliable and Strategy and nominated National Designated Authority to the Green Climate Fund (GCF). Furthermore, the compassionate lawyer. Some lawyers have dollar signs imprinted all over their brain and for as long as they earn Government of Zimbabwe applied for GCF NDA readiness funds under the Project entitled “Building Capacity of a fee, do not care what happens to a client. Some are so Zimbabwe National Designated Authority to engage with the Green Climate Fund”. The ‘GCF NDA Readiness cruel and ruthless that they end up dumping clients and opting for an adversary who may offer a better fee. Project’ requires the services of a National Consultant who will manage the project under the guidance and Invariably, the idea is to go searching for a legal practitioner with your eyes wide open for the danger of falling direction of the Project Management Unit (PMU) on behalf of the Ministry. into the hands of a wrong legal practitioner are too ghastly THE OBJECTIVES to contemplate. l Muza, a Harare-based legal practitioner, writes The Objectives of the contract are to; in his personal capacity. [email protected] 1. Support capacity building activities of the GCF NDA and other key national institutions; 2. Support the development of a strategic framework for national engagement with the GCF; and 3. Support the development of a country programme. Alexander Forbes seeks Scope of Work, Expected Outputs, Competencies, Qualification and Work Experience insurance units buyer The consultants will work with the GCF National Project Management Unit (PMU), team of international and national experts as well as the National Steering Committee. The specific tasks, Scope of Work, Expected LEXANDER Forbes said on Tuesday that it is com- mencing a process to seek a buyer for its insurance Outputs, required Competencies, Qualification and Work Experience are contained in this link to the Call. businesses. The announcement was included in an http://www.climatechange.org.zw/consultancygreen-climate-fund-gcf-national-designated-authority-nda- A update to its financial services company's strategic review. readiness-national-consultant “The disposal of these premium businesses will be based on a value proposition that balances appropriate solutions for our clients, protects and values the employees who have contributed to the success of these businesses, and realises Application Submission Procedure and Deadlines: fair value to our shareholders,” it said. “A new owner will be able to continue its success and Three (3) hard copies of the applications clearly marked “GCF NDA Readiness National fuel future growth through additional investment.” Consultant” should be submitted by 1500hrs (CAT) of 23 April 2019 to: It did not put a valuation on the businesses in its insurance cluster. “The Secretary - Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement” In a statement its chief executive, Dawie de Villiers, said the strategic review would “accelerate the competitive posi- Climate Change Management Department (GCF NDA) tion we already occupy in our core business of consulting, 11th Floor, Kaguvi Building, Cnr. S.V. Muzenda St/Central Ave, Harare, Zimbabwe. administration and investments.” De Villiers was appointed CEO with effect from No- vember 2018, after the company sacked Andrew Darfoor in September over a “loss of confidence and trust”. - Fin24 The Financial Gazette April 4-10 2019 | Page 21 Column Strategies to mitigate retrenchment costs N DON Nyamande & Anor v Zuva Petroleum case is only made when an respectful actions Organisations must consider setting up this number SC 43/2015, Supreme Court judges on July organisation fi nds itself towards it otherwise fund without delay. The implications of setting I17, 2015 ruled that employers had a right to terminate in a fi nancial crisis. This line managers may funds aside may increase operational costs but any employees on notice in terms of Section 12 (4) of the Labour must be avoided. A poor not consider it critical management that is objective in fi nding remedies Act Chapter 28:01. fi nancial position must to their needs. to retrenchment funding can analyse their current Commenting in the Sunday Mail of August 20, 2017 in a not be the determinant The CEOs must operational cost structures with a view to fi nding story headlined: “We continue to make retrogressive labour but labour excess to realise that a good areas where costs can be reduced, thereby laws”, Japhet Moyo, the scretary-general of the Zimbabwe requirement must guide HR manager can avoiding high prices to their customers. Congress of Trade Unions, said: “In fact the judgment the decision. Kingfrey Chizema make equal and Delivery management: All organisations opened the fl oodgates through which over 20 000 workers Labour as an lasting contributions must expend more of their time on improving lost their jobs within a month of labour chaos.” agenda item: It cannot to an organisation’s productivity. This calls for employees at all levels Lawyer Ronald Mutasa reports at www.manokore. be argued that among the high operational cost productivity just as line managers do if allowed to to deliver on what they were engaged. Ineffi cient com/publication/nyamandevzuva/ that “The Government drivers is labour. If this is agreeable, it must then perform relatively unhindered. workers at whatever level must be shown the of Zimbabwe, through the Ministry of Public Service, be an agenda item in management meetings to In medium to large organisations, CEOs door. If organisations fail to do this, it will not Labour and Social Welfare, swiftly intervened to stem the be discussed and analysed with care. A casual should consider elevating this position to one matter how much money is borrowed or injected wave of terminations by introducing a Labour Amendment approach to labour requirement needs and audits immediately below them, for example to director by shareholders to sustain or improve profi tability, Bill. Parliament was urgently recalled from recess. The Bill must be avoided at all costs. level to demonstrate its importance. This will the results will be increased operational costs, was introduced on August 18, 2015 and barely two days Treatment of HR managers: For the give it the stature to function effectively at all leading to unprofi tability and company closures. later the Bill sailed through the lower and upper houses of HR manager to carry out the responsibility organisational levels. Effi ciency: One of the many ways of Parliament despite an adverse legal report on some of the of controlling labour levels, he/she needs the Redundant reserve fund: I can see someone improving skills for improved productivity is provisions of the Bill by the Parliamentary Legal Committee. cooperation and protection of the chief executive already saying I am crazy for suggesting this fund. to provide training to staff. Training can close On August 26, 2015 the Bill was gazetted into law as the offi cer (CEO). The CEO must demonstrate to his/ No, it is not a crazy idea at all because it will prove employees’ skills gap in order for tasks to be Labour Amendment Act 5, 2015 (The Amendment Act) and her managers that the role of the HR department to be an imperative fi nancial management kitty to carried out more effi ciently. Organisation leaders immediately came into effect”. is just as important as theirs through proper and turn to when retrenchment becomes necessary. To Page C12 Mutasa continues that the most important amendments introduced by the Amendment Act were: (a) A new section 12 (4a) was inserted which outlawed the employer’s common law right to terminate a contract of employment on notice unless the termination is in terms of a registered employment code of conduct, or is by mutual consent of the parties, or if the contract is a fi xed term contract, or if the termination is in pursuance of a retrenchment exercise; (b) The old retrenchment provisions in the Act were repealed and replaced by a new section 12C which sets out a mandatory minimum retrenchment package to be paid by an employer as being not less than one month’s pay for each two years of service by the employee (and proportionate payments for lesser periods of service)”; The retrenchment package of one month’s pay for each two years of service by an employee and proportionate payments for lesser periods of service places a burden on employers and therefore of utmost interest to organisations and is the reason for writing this article. This background should remind organisations of cost consequences that can arise from labour disputes of any sort. Strategies to consider The intention of this article is to assist organisations in investing their energy and resources in strategies that can mitigate retrenchment or separation costs. It is necessary for managers in organisations to be proactive in retrenchment or separation matters than to get surprised when saddled with an unexpected huge cost when it becomes imperative to reduce the labour force in terms of the Act. Manning establishment: This is the level that an organisation determines as the correct number of personnel that it should employ to accomplish tasks to meet its mandate. The need to conduct an objective exercise through work study to determine this level cannot be overemphasised. Any excess labour, no matter the numbers, is an unnecessary cost. Establishing the correct manning levels is a human resource manager’s key performance area. He/she must therefore be allowed by the head of the organisation to determine these levels in cooperation with line managers. The manning establishment is the basis for control of labour levels. Manning control: Organisations with a large labour force must as a matter of urgency appoint within the HR department an offi cer whose key responsibility will be tracking incoming and outgoing labour. He/she on regular basis must report this status to senior management say, once per week at least. The offi cer must be consulted to confi rm that a vacancy is indeed available before any new employee is engaged. Where a vacancy does not exist no engagement shall be made. In smaller organisations, manning control can be undertaken by the human resource manager or the administration manager. The offi cer ensures that casual labour brought in for a specifi c task or project leave the organisation immediately the task or project is complete. It does not make sense to hold on to such labour in anticipation of new contracts or work. It is understandable for supervisors or managers to desire to hold on to labour that may have demonstrated profi ciency during their temporary employment to the extent of fi nding it diffi cult to let them go, but this must not be reason enough to hold them. The employment of employees’ relatives on projects or short term work may introduce a challenge when choosing who among them must remain when the workload drops. Organisation job audits: It makes good business sense to continuously audit numbers of staff at various intervals because it is not unheard of that labour that had completed its assignment or that which is excess to production requirement has been allowed to remain on an organisation’s payroll without contributing anything to income. It is imperative that identifying redundant labour is treated as a top management concern. The earlier redundant labour is terminated in accordance with the labour law, the less expensive it will cost an organisation in future. It can be argued that when redundant labour is identifi ed funds to retrench this labour may be unavailable. This can indeed be true but what must be remembered is that the quicker this labour is terminated the better fi nancially an organisation remains. In most cases the decision to retrench Page 22 | April 11-17 2019 The Financial Gazette Companies & Markets Is blockchain death knell for audit profession? Philip Smith pact on the auditors’ approach to their work. Organisations that use the blockchain will likely incorporate continuous AR from dealing a mortal blow to the audit internal audits in their processes, supply an audit trail, and profession, blockchain technology seems provide account analysis at the push of a button.” Flikely to generate a range of exciting new While companies and auditors move to embed block- roles in the assurance sphere. chain applications and platforms into the accounting and Could the audit profession have been given a finance environment, it is critical that these systems do not stay of execution? Blockchain, or distributed led- tant, doubts that blockchain will kill off the au- become seen as “black boxes” that offer ― ironically ― ger technology, has been touted as its executioner ditor. “I don’t think so,” he says. “Blockchain limited transparency and audit trails. ― after all, if all transactions are recorded in an has the capability to eradicate audit, but there is Katie Canell, audit innovation director at Deloitte, says: immutable chain of digital blocks, with no appar- always scope for error and fraud. The uncertainty “The validation of the system of governance and controls, ent way of being altered after the fact, it creates of human interference before, during and after a the security and integrity of data within the system, and the a perfect audit trail, so dispensing with audit and transaction means that you will always need an need to understand whether the platform or application is auditors. external audit.” operating as intended over a period of time are all critical Not so fast. Auditors are starting to seek to That is not to deny that blockchain will rad- aspects of being able to rely on the outputs.” stake a claim in this new technology so they can ically alter auditors’ operating environment. As The need for trust use it to their advantage ― and that of their cli- Padgett explains, the technology offers enhanced The creation of trust will be key to the success and wide- ents. They point out that as long as a human ele- transparency and accessibility to financial and spread adoption of blockchain for accounting and auditing ment is involved (with the attendant risk of mis- non-financial information that could profoundly purposes. As Padgett explains, the internet has done a great takes and fraud), a third party is needed to provide affect record-keeping, reporting, assurance and Simon Padgett job of data transfer. On the whole, the process was trusted assurance over the validity of transactions. governance. until banks began to crash in 2008-9 and questions were Simon Padgett, FCCA, a Vancouver-based access ‘keys’, providing access to detailed, time- raised about the transfer of value ― in particular, currency “In a blockchain future, auditors and forensic stamped information covering all transactions,” cryptocurrency and blockchain forensic accoun- experts could be given a set of blockchain digital value. It is no coincidence that 2009 was when bitcoin ap- he says. “Such access could have significant im- peared. “There was mistrust in the financial system, so there was a need for a new financial channel, a trusted way of moving value, not just data,” he says. And this is where an auditor can still be involved. Canell says: “Distributed ledgers are founded on the basis that they promote trust and resilience without the need for a central, trusted party controlling the process. However, in reality, while an entry on the blockchain can be trusted as an official record that a transaction occurred, it does not necessarily provide evidence relating to the nature of the transaction, We are why it has occurred, or if all transactions have been recorded.” EY recently announced the launch of its Blockchain An- alyzer tool to help audit teams assemble an organisation’s entire transaction data from multiple blockchain ledgers. Its Open for auditors can then interrogate the data, analyse transactions, perform reconciliations and identify outliers. It is also designed to support testing of multiple cryptocurrencies managed or traded by exchanges and asset managers. “These technologies lay the foundation for automat- Business ed audit tests of blockchain assets, liabilities, equities and smart contracts,” says Paul Brody, EY’s global innovation blockchain leader. PwC has also launched blockchain validation software, which combines a risk and control framework with continuous auditing software. As powerful machines test for anom- alies in real time, with every transaction tested, longer-term patterns not evident to the human eye will be spotted. Mid-ti- er firms are getting in on the action, too, with BDO teaming up with Microsoft to develop blockchain technology. Challenges include the power hunger of blockchain hardware, the risk of hacking and money laundering, un- identified errors, integration with legacy systems, and ob- solescence. Canell believes regulation will also need to be rethought: “There is a fine balance between regulations adapting and opening up opportunities for evolving technology, and technology driving the need for change.” Reproduced with permission from ACCA’s Account- ing and Business magazine accaglobal.com/ab. Strategies to mitigate retrenchment costs From Page C11 should take advantage of any temporary lull in business to train its staff so that when pressure of work mounts, at least some employees would have improved their skills and can concentrate on production delivery. Training must remain a feature in any organisation’s quest for attaining its planned production through effective personnel. An efficient operation is most certainly going to save on unnecessary wastage in turn costs. Interrogating manning levels: Staff levels MUST be interrogated regularly to ensure that the planned establishment remains within these limits. Questions such as is all this labour currently employed still needed? Should we not carry out work study to identify inefficiencies in tasks executions? Are employees placed in correct grades in their occupations? Answers to these and many other questions assist in correcting staff complement where it is seen to deviate from As we make the customer determined levels or when there is need to cut back. New technology: Investigating and investing in better the hero of our story. and advanced technology can mean improved efficiencies and a reduction in labour numbers. This has an effect of reducing production unit costs. Once an organisation attains an optimum number of its labour requirement it means it has less staff to worry about when terminations become necessary. Improved efficiencies normally contribute to profitability. The suggestions I make here are a start for those who have not considered similar ones hitherto in mitigating labour costs. Unto them many more can be added considered and introduced. l Chizema is a past president of the Zimbabwe Institute of Management and the Institute of People Management of Zimbabwe He writes in his personal capacity. The Financial Gazette April 11-17 2019 | Page 23 National News ‘Shallow’ mining index drops 6,3%

Adelaide Moyo Business Reporter

HE Zimbabwe Stock Exchange (ZSE)’s Mining Index slipped in the Tfirst quarter of 2019 as the base guide failed to pull institutional investors to significantly allocate capital to it from a liquidity and quality perspective, an analyst has said. The resources index was down 6,30 percent to settle at 193,98 points in the first quarter of the year on the back of losses recorded in Bindura Nickel Corporation (BNC) down 12,19 percent and RioZim down 4,24 percent. Lloyd Mlotshwa, the head of sales at IH Group — a financial services boutique firm dealing with local and international investors — told The Financial Gazette that the index itself is quite shallow as it is currently only Lloyd Mlotshwa calculated on two listed entities, BNC and RioZim. tractive stock. The remaining two — Falgold and Meanwhile, the other stock, diversified Hwange Colliery Company Limited resources firm RioZim has seen its -opera (HCCL) — are both suspended. tions becoming erratic due to foreign curren- “The fall in BNC share price during the cy supply bottlenecks. period under review has been enough to “The 55 percent retention ratio prescribed drive the overall decline in the index,” Mlot- by the Reserve Bank of Zimbabwe is lower shwa said. than market participants anticipated and this “There is need to deepen the Mining In- might also dampen efforts to increase input dex by adding quality operations via new by the gold producers, further subduing rev- listings to the market. This will increase enue. These are all not good signals for the liquidity and investable options within that index in the short term,” Mlotshwa said. space and ultimately result in a more cred- In previous months, RioZim has been ible and hopefully stable Mining Index,” he forced to twice shut down Renco, Cam and said. Motor and Dalny mines because the central He noted that the market remains pes- bank had failed to pay it in United States dol- simistic about the index’s prospects if it re- lars for part of its gold deliveries. mains a basket of two assets. Mlotshwa, however, feels there is hope “In the meantime however, global nickel for the index if the country plays its cards prices have been on a downward trend since right and implements significant economic last year, impacting earnings performance at reforms. BNC and as a result delaying the commis- “If global commodity prices are resilient sioning of their widely anticipated smelter,” this year and government addresses issues Mlotshwa said. around retention ratios and foreign currency The IH Group director also said this is availability for miners, this will hopeful- likely to keep BNC’s share price under pres- ly stimulate output and therefore earnings sure and drag the Mining Index down. performance which will hopefully trickle Another market watcher said problems through to the index,” he said. at shareholder level makes BNC an unat- [email protected] Zim moves step closer to one-stop investment shop

Omega Ukama investment inflows dropped 48,6 percent Business Reporter from $372 million in 2016 to $289 million in 2017. IMBABWE is one step closer to A recent report by IH Securities, a local achieving its one-stop-shop invest- advisory firm, shows that international- in Zment centre (OSIC) initiative after a vestors continued to shun Zimbabwe after Bill to expedite the process was gazetted. the country earned a paltry US$470 million This comes as the southern African in foreign direct investment last year com- country, which is desperate for investment, pared to Mozambique and Zambia, which has received numerous complaints from po- raked in US$2,3 billion and $1,1 billion, tential investors exasperated with the tedious respectively. process of setting up business in Zimbabwe. One of the reasons why investment has Parliamentary and constitutional watch- eluded the country has been the failure by dog Veritas said the Zimbabwe Investment foreigners to repatriate their funds. The Development Agency Bill ― meant to es- Zimbabwe Investment Development Agen- tablish a single interface for investors into cy Bill seeks to provide for the free inward the country ― provides for the promotion, and outward transfer of funds and lays out entry, protection and facilitation of invest- circumstances where such transfers may be ment. prevented or delayed. For example, in a bid The Bill also aims to repeal the Zimba- to protect the creditors of an investor and in bwe Investment Authority Act, the Special order to assist financial regulatory regulators Economic Zones Act and the Joint Ventures or law enforcement. Act and “to provide for matters incidental to The Bill also seeks to empower relevant or connected to the foregoing,” Veritas said authorities to cancel or suspend licences in a recent note. where an investor fails to implement ap- Government launched the OSIC in De- proved activity within agreed timeframes. cember 2010 but it failed to operate opti- Apart from the OSIC initiative, govern- mally as some key departments did not send ment says it is extending other efforts to representatives. This resulted in continued improve the investment landscape such as delays in processing investor applications. “establishing one-stop-boarder posts to fa- However, the setting up of the Zimbabwe In- cilitate smooth transit of people and goods vestment Development Agency is expected across the country’s borders”. to iron out these kinks in the system. “A study of one of the completed border Due to the lack of a clear policy, invest- posts, the Chirundu One-Stop Border Post, ment into the country has remained subdued has shown that its establishment induced be- despite the new administration’s “open for tween US$2,2 and US$3,1 million of Zim- business” mantra. babwe’s annual exports to Zambia,” Finance According to a World Investment Report minister Mthuli Ncube said recently at a released in 2018, Zimbabwe’s foreign direct business gathering. [email protected] Page 24 | April 11-17 2019 The Financial Gazette National News ‘Illicit cigarette’ market Govt vows to revive share exaggerated OLLOWING the publication of an Ipsos survey on the “illegal cigarette market” and related issues, which was carried by various South FAfrican publications, an impression was given that British American local motor industry Tobacco (BAT) has been “hard-hit by illicit cigarette trade in South Africa (SA)”. Specifically, an article in the Star’s Business Report on March 25 said the research had shown that: SA had become the first country... to allow Nelson Gahadza an illegal cigarette brand (and Zimbabwe-linked) Gold Leaf Tobacco’s RG Business Reporter brand to be a best-seller...” and which l believe is clearly a misrepresentation of facts. RESIDENT Emmerson Mnan- Contrary to the suggestion, a recent Africa Centre for Tobacco Indus- gagwa’s government is expected try Monitoring & Policy Research analysis of point-of-sale data shows that Pto unveil a multi-million plan to BAT is actually still dominating the market in terms of volumes and value. revive the country’s moribund motor Its Peter Stuyvesant brand, in the medium price segment, remains the industry, The Financial Gazette has most popular and had the highest volume sale in 2017/2018. learnt. Indeed, the brand’s sales volumes have declined in the corresponding This comes as Zimbabwe’s automo- period. However, another BAT brand — Benson & Hedges and categorised bile industry is on its knees due to an as “low price” — showed a 42 percent increase in volumes over the same increase in grey vehicle imports which period. averaged $500 million per annum be- By implication, the Anglo-South African multinational’s loss of market tween 2009 and 2014. share may not necessarily be “all due to illicit trade”. Godfrey Chanakira, permanent sec- Some of BAT’s losses can be “attributed to increasing market share of retary in Vice President Constantino Government expects the motor industry to increase capacity utilisation of legal, low-priced cigarette brands from transnational tobacco companies Chiwenga’s office, said although gov- car assemblers. (including BAT) and local players”. ernment launched a Zimbabwe Motor motor industry, with an efficient, fair of vehicles from completely knocked Therefore, it appears the illicit-trade argument has been used — in SA Industry Development Policy last year, and elsewhere — as a ‘straw man’ to protect global companies’ profit at the capacity remain depressed at less than and transparent public procurement is down kits and efficient procurement, expected to boost investor confidence, we expect to see promotion of down- expense of the public’s health. 10 percent. In SA, about 44 000 people are reportedly dying from tobacco and smok- “In 2018, second hand imports are as result, attracting both domestic and stream industries such as suppliers of foreign investment. tyres, batteries, glass, paint steel among ing-related diseases each year, and it is costing the already over-burdened estimated to have increased to 60 000 healthcare system about 60 billion Rand annually (Tobacco Atlas, 2018). units,” he told delegates attending a “The motor industry is at the heart others,” he said. of an economy as it provides essential Zimbabwe’s motor industry policy Interestingly, it is comparable to the estimated 13 billion Rand collected Procurement Regulatory Authority of from smokers as excise duty to the South African Revenue Service by the Zimbabwe (PRAZ) conference which transport service to both the private and is based on five strategies which in- public sector,” he said. clude the assembly of semi-knocked same industry. sought to, among other things, articu- And among many tactics used by the tobacco industry “to interfere with late strategies and policy to support do- Government expects the motor in- down and completely knocked down dustry to increase capacity utilisation kits, government support, control of tobacco control policy processes globally” is the attempt to manipulate pub- mestic motor industry. lic opinion, which could be the aim of this “IPSOS misrepresentation about Chanakira noted that capacity and of car assemblers from current levels of second hand imports, categorisation less than 10 percent to 100 percent by and regulation of the industry and the illegal cigarette brands”. utilisation at local vehicle assemblers We, therefore, urge South Africans to support the newly proposed To- has been declining form 20 000 units in 2030, he said. development of the motor industry val- “Given government’s thrust to pro- ue chain and cluster. bacco Bill, which seeks to protect - and promote - the health of all, and save 1997 to about 6 000 in 2009, but was lives. — Agencies quick to point out that an organised mote investment into the local assembly [email protected]

INTERTOLL ZIMBABWE (PTY) LIMITED – CALL FOR EXPRESSIONS OF INTEREST

Suitable Contractors and Suppliers are hereby invited to submit Expression of Interest (EOI) where they wish to participate in providing various goods and / or service for the maintenance of the R2 and R5 routes (Plumtree – Harare – Mutare). The EOI’s sought are relative to the categories as listed below;

PROVISION OF ROAD MAINTENANCE SERVICES PROVISION OF STAFF TRANSPORT SERVICES Repair or replace sign faces and/or poles as required, all sign faces to For Toll Plazas along Plumtree-Harare-Mutare Route (specify the comply with SADC RTSM 3rd Edition , lettering, symbols, numbers, preferred toll gate) MAINTENANCE OF ROAD arrows and borders being Class III reflective material, all on Chromodek STAFF TRANSPORT (passenger SIGNS 1,4mm plate or profile as applicable, other specifications also applicable. capacity +/-16) Please provide copies of vehicle registration documents as proof of ownership of the vehicles, fleet size, valid vehicle certificate of fitness and Suppliy of CCA treated poles of different sizes. passenger insurance. Painting of new or repainting of existing lines with either thermoplastic material or solvent based paint, supply and apply glass beads, supply and PERMANENT ROAD MARKING TOLL PLAZA MAINTENANCE apply road studs – typically Stimsonite, supply of hot and cold thermoplastic paint and epoxy glue. MAINTENANCE OF Supply of guardrails and creosote treated timber poles and/or repair  Solar Services  Borehole Maintenance GUARDRAILS damages in compliance with SATCC 5200 and instructions. Clear debris and silt build-up from culverts, open drains and bridges DRAINAGE MAINTENANCE  Generator repairs and services  Air conditioner repairs and services (including scuppers). Mowing of the road reserve, removal of grass cuttings, eradication of VEGETATION CONTROL undesirable plant growth, application of herbicide, anthill treatment, tree  CCTV installations, repairs and services  Lighting supplies felling and trimming. Construction of: concrete lining to open drains, inlet and outlet structures,  Electrical Fence Maintenance and SMALL CONCRETE WORKS  Electronic and electrical repairs bolsters and edge beams. repairs STABILIZATION OF SLOPES Supply and fill in gravel adjacent to road edge, supply and spread top soil.  Plumbing, painting and general maintenance SUPPLY OF ROAD BUILDING MATERIALS AND PLANT HIRE SERVICES:  Steel structure maintenance and repairs  Liquid waste removals SUPPLY OF AGGREGATE Crusher Run, Crusher Dust, (various sizes). OTHER GOODS AND SERVICES SUPPLY OF BITUMINOUS Bitumen 70/100, Emulsion SS60, Hot /Cold Asphalt.  Printing and Stationery  Supply of diesel (in 2000 litre quantities) PRODUCTS Provision of road construction plant e.g. Dozers, Excavator, Bitumen  Fire Protection Services – including PLANT HIRE SERVICES Distributor, Chip spreader, TLB, Sit on rollers. Graders ,Tippers, supply and servicing of firefighting  Industrial cleaning materials Pneumatic roller, Front end loader equipment VEHICLE RECOVERY For both light and heavy vehicles from anywhere along the route.  General Hardware  IT Consumables SERVICES PROVISION OF ROAD MAINTENANCE CONSULTANCY SERVICES:  Branding  Personal Protective Equipment (PPE) PROFESSIONAL ROADS For inspections/analysis and reports as required, surfacing and drainage REQUIREMENTS ENGINEER design, preparation of specifications, drawings. SURVEYING SERVICES For road surveying services with own equipment.  Company profile and 3 traceable references ROAD CONSTRUCTION  Testing of all types of road construction services (pavement and material Proof of registration as a Zimbabwean company (certificate of incorporation) TESTING SERVICES  testing) Proof of compliance with statutory requirements (i.e. valid ITF 263) (LABORATORY TESTING)  VAT certificate (if any), SUPPLY OF PARTS AND/OR SERVICES FOR VEHICLE MAINTENANCE:  Letter from the bank confirming banking details. PROVISION OF SPARE PARTS For light vehicles, trucks, brush cutters, chainsaw, tractors and tractor  Available manpower (applicable to sub-contractors AND WORKSHOP mowers (Toyota, Isuzu, Hino, Nissan, John Deere, Massey Ferguson,  Available equipment (applicable to sub-contractors)

PROVISIONS Stihl). Supply of oils (Engine oil, grease, hydraulic oils), wiper blades  Proof of insurance (applicable to sub-contractors) SPECIALIST VEHICLE Cylinder head reconditioning, refurbish of injector pumps, Panel beating,  Capability and capacity (applicable to particular offering)

REPAIRS Windscreen Repairs  Geographical area of operation – applicants based in Plumtree, Bulawayo, Gweru, Kwekwe, Kadoma, Supply and repair of vehicle and tractor tyres SUPPLY AND FITMENT OF Chegutu Norton, Ruwa, Marondera, Rusape and Mutare are encouraged to apply. (Continental, Dunlop, Goodyear, Bridgestone including balancing and TYRES alignment GENERAL TERMS AND CONDITIONS: 1. Intertoll Zimbabwe (Pty) Ltd is not bound to approve any company as a suitable contractor or supplier, and shall not be obliged to furnish reasons for rejecting any application/expression. 2. Intertoll Zimbabwe (Pty) Ltd shall not be liable for any costs incurred in the preparation of the application/expression. 3. Intertoll Zimbabwe (Pty) Ltd reserves the right to amend, modify or cancel the requirements and deliverables of the expression. 4. Applications/expressions of interests shall be submitted by Tuesday, the 23th of April 2019 close of business clearly marking on the envelope the category being applied for, to: The Procurement Committee, Intertoll Zimbabwe (Pty) Limited, 15 Fleetwood Road, Alexandra Park, Harare. The Financial Gazette April 11-17 2019 | Page 25

National News UN revises cyclone aid to $294 million Tabitha Mutenga Features Editor MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT

HE United Nations (UN), working with the government, has revised Zimbabwe’s humanitarian Taid Flash Appeal from $234 million to $294 fol- PRESS STATEMENT lowing the trail of disaster left by Cyclone Idai. In early March, the development partners and government launched the $234 million aid appeal to provide urgent food, health, water, sanitation, hygiene and protection support for 2,2 million people of the 5,3 million Implementation of Compensation of Former people in need over the next six months. However, an already fragile humanitarian situation Farm Owners by the Government of the was compounded by the impact of Cyclone Idai which tracked through many districts in eastern Zimbabwe. “Overall, 5,6 million people are now in urgent need Republic of Zimbabwe of life-saving humanitarian assistance and protection support in both urban and rural communities,” the UN said. 1. As stated in the Transitional Stabilisation Programme (TSP) (October 2018-December 2020), “It is critical that we act now and mobilise resources to support the most vulnerable people in Zimbabwe the Government of the Republic of Zimbabwe under the New Dispensation, is committed to cope with the multiple shocks that they have faced and to prevent more households requiring assistance. To this finalise compensation to all former farm owners who were affected by the Land Reform Pro- end, this flash appeal targets 2,5 million people that have been hardest-hit by the impact of Cyclone Idai, the eco- gramme. This is being done in accordance with the country’s Constitution and Zimbabwe’s nomic crisis and poor agricultural performance.” Preliminary reports indicate that 270 000 people with obligations under the Bilateral Investment Promotion and Protection Agreements (BIPPAs). existing acute levels of vulnerability have been directly affected across all districts in Manicaland and parts of 2. In this regard, the Ad Hoc Compensation Working Group, comprising Government officials and Masvingo and Mashonaland East provinces. The government reported 299 deaths and more than representatives of former farm owners, is currently working towards the computation and estab- 300 people missing, 1 263 houses have been damaged and 584 destroyed in Mutare, and 2 290 were damaged lishing the Compensation Quantum figure for farm improvements based on an agreed method of in Buhera district. The Flash Appeal has been revised in support of the valuation. Given the significant progress made to-date, it is anticipated that this comprehensive government-led response to Tropical Cyclone Idai and the drought that preceded it farm improvements valuation exercise will be completed by the end of May 2019. The rise in severe food insecurity has been driven by a combination of factors, including late rainfall, abnor- 3. The completion of the work of the Ad Hoc Compensation Working Group will enable Govern- mally dry conditions and the worsening economic situation, which are likely to prolong the lean season at least ment and former farm owners, in conjunction with cooperating partners, to progress towards until May. “Late and erratic rains have affected people’s ca- closure of the land issue. pacity to withstand new economic shocks is severely compromised as the country has gone through repeated 4. Reflecting Government’s commitment to compensate former farm owners for farm improve- stresses since 2008. “At the heart of the economic problems is a US$17 ments and recognising that a large number of farmers are still to be compensated, Government billion domestic and foreign debt and a $1,8 billion trade deficit that has worsened foreign currency shortages,” allocated RTGS$53million in the 2019 National Budget for interim advance payments. These UN said. [email protected] interim advance payments will be made to former farm owners affected by the land reform program and who are in financial distress. Nissan pledges 5. The process to identify and register former farm owners who want to participate in the interim advance payments scheme has now commenced and is being coordinated by the Commercial R3 billion to SA Farmers Union (CFU), and the Compensation Steering Committee (CSC) representing former ISSAN plans to invest a further farm owners. NR3 billion in its 6. South African plant to The registration process and the list of farmers should be completed by the end of April 2019, prepare for production of the latest version of after which the interim advance payments will be paid directly to former farm owners by the the Navara pickup. The decision by the Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement. Government will put Japanese carmaker may add 30 000 units to the in-place institutional arrangements to expedite the disbursements for these interim advance pay- plant’s current annual Cyril Ramaphosa volume of 35 000, Mike ments. Whitfield, managing director of Nissan Africa, said at the factory north of Pretoria on Wednesday. 7. In the meantime, Government’s accelerated farm valuation exercise for farm improvements is The manufacture of the Navara from 2020 will also create jobs in a country where more than one in four of expected to be completed by end April 2019. This will pave the way for both parties to reach an the population is unemployed. “Automotive is already the largest part of South Afri- agreement on the Compensation Quantum figure for farm improvements by end of May 2019. ca’s manufacturing sector, contributing around 7 percent of gross domestic product annually and accounting for a 8. Consultations on sustainable options for mobilizing the requisite compensation resources are be- third of manufacturing output,” President Cyril Rama- phosa said at the Nissan facility in Rosslyn. ing explored in conjunction with the International Financial Institutions and other Stakeholders. Nissan’s investment is the first significant commitment by an automaker since international firms agreed with the government late last year to extend a manufacturing incentive program through 2035. Minister of Lands, Agriculture, Water, Climate and Rural Resettlement The plan has also seen the likes of Toyota, Volkswa- gen and BMW operate plants in the country, in return for generous tax breaks. The majority of vehicles are pro- duced for export. Minister of Finance and Economic Development Nissan plans to more than double its industrial reach 05 April 2019 in the Middle East, Africa and India by 2022 by adding more factories, Peyman Kargar, chairman of the car-maker’s operations in those three territories, said in an interview last month. — Bloomberg Page 26 | April 11-17 2019 The Financial Gazette National News

‘Currency crisis remains unresolved’

SIAN economic giant, India, is one of Zimbabwe’s restore confidence in the Zimbabwean mar- NG: What is your appreciation of What is happening between India and Zimbabwe trade is major trading partners, particularly in pharmaceuti- ket in order to attract long term investment Zimbabwe-India bi-lateral relations not good. Trade is not growing for a simple reason that Acals and ICTs. At present, firms such as Varun Bev- in the country. and which possible areas do you think our exporters to Zimbabwe cannot get back their funds. erages — producer of Pepsi brands, and cooking oil man- To understand India’s position on Zim- Zimbabwe can explore from India in The foreign currency issue which the monetary policy ufacturer Zimgold are among Indian companies operating babwe, The Financial Gazette’s business re- its quest to turnaround the economy? is trying to sort out, if done well, will generate a lot of in Zimbabwe. However, bi-lateral trade between India and porter, Nelson Gahadza (NG), interviewed RM: For me, as a foreign investor and trade, not only with India, but all investors across the Zimbabwe is currently at its lowest due to challenges pre- Indian ambassador to Zimbabwe, Runsung anyone wanting to do trade with Zimba- board. So, this is the first and foremost thing for Zim- vailing in the southern African country’s economy. Masakui (RM). bwe, the most difficult thing at the mo- babwe. And Indian investors are of the view that there is need to Below are excerpts of the interview. ment is the exchange control challenges. Over the last three years, trade between India and Zimbabwe literally shrunk in terms of volume. Current- ly, there are two significant investments from India operating in Zimbabwe in the form of Pepsi and cooking oil manufacturer Zimgold. Varun Beverages successfully commissioned the Pepsi beverage manufacturing plant for $30 million in Zimbabwe last year and began producing carbonated Pepsi products. These companies are already here. They are operating as local companies. For instance, Varun Beverages operates in Zimbabwe, they don’t import from India, they produce here and sell here and also export to get foreign exchange. The country’s foreign exchange crisis has resulted in the country losing potential investment as investors continue to struggle to repatriate their funds. This should be addressed. NG: In which sectors do the two nations have common interest? RM: About 80 to 90 percent of Indian investor interest is in pharmaceuticals, which is a necessity and a given priority on Zimbabwe. We are also interested in technology exchange and agriculture. Through the exchange of scholars, we have managed to exchange more but mainly in terms of technology transfer. NG: In recent past, Zimbabwe introduced several measures to turnaround the economy. What is your view of such measures towards reviving the economy? RM: Policies aimed at turning around the economy may not achieve desired results soon. But, I think government moved in the right direction in terms of the new monetary policy statement which is aimed at boosting confidence of investors and anyone wanting to trade with Zimbabwe. However, the most difficult thing at the moment is that Indian and global investors are not investing simply because when they send funds and export to Zimbabwe, they will not get back their money. NG: The Zimbabwean government has made interventions to solve the foreign currency challenges by introducing the interbank market. Will such a move address the underlying problems? RM: This has not helped. If you have an RTGS dollar you want to go and change on the market to US Dol- lars, it is not still possible. One of the main reasons is the disparity between the parallel market exchange rate and the official rate. This is simply because there are no authorised dealers in the market. The gap that exists between the official and parallel market rates is huge and has a dampening effect on investment. If there is easy possibility and flexibility for anyone to exchange money from RTGS to US dollar, or the opposite, I think there will be increased trade. Investor interest in Zimbabwe will increase. To Page 28

Runsung Masakui The Financial Gazette April 11-17 2019 | Page 27 National News Vast dumps gold for diamonds

Adelaide Moyo economic interest in Pickstone Peerless our shareholders but to the Chiadzwa and Marange com- Business Reporter and associated assets — principally Eu- munities as well as the wider Manicaland community to reka Gold Mine. ensure the success of this project as a representation that AST Resources Plc (Vast) says it is disposing its Brian Moritz, Vast’s chairman, said Zimbabwe is open for business and investor and com- 25 percent shareholding in Pickstone Peerless the disposal will have the additional ben- munity can work together,” Prelea said. VGold Mine in Zimbabwe to focus on diamond efit of producing a material simplification In 2016, several companies were booted out of mining. of the company’s balance sheet and the Chiadzwa after their licences had expired, resulting in Andrew Prelea, the London-listed miner’s chief ex- elimination of some $38 million of liabil- the formation of the Zimbabwe Consolidated Diamond ecutive, said the deal, subject to shareholder approval, ities. Company (ZCDC). will enable the group to refocus on its two growth oppor- “The transaction repays the majority And having promulgated a new diamond policy late tunities ― the Heritage diamond concession in Zimba- of the SSGI Loan and gives the compa- last year, President Emmerson Mnangagwa’s govern- bwe and Baita Plai polymetal mine in Romania. ny the ability to repay more through the ment believes it is ensuring accountability in the mining, “The Heritage Concession will require significant in- RTGS$2,5 million further consideration. processing and selling of precious mineral. vestment, not only financial but in human resources, to It should be noted that SSGI has a charge According to the recently-promulgated law, only Rio enable near term positive cash flow for the business. The over the company’s 50,1 percent interest Tinto-owned Murowa, Vast, ZCDC, a Russian and Chi- divesting of gold assets in Zimbabwe allows us to focus in Ronquil,” he said. nese company will be allowed to mine gemstones in the all our Zimbabwe finance and management on this key Vast was appointed venture partner by country. component of the company’s growth,” he said. the Chiadzwa Community Development The policy also covers all facets of diamond mining This was after the resources firm had decided to sell Trust (CCDT), enabling the firm to mine in Zimbabwe such as exploration, processing, benefici- its 50,01 percent interest in Ronquil Enterprises (Ron- for diamonds at the Heritage concession. ation, marketing, security and law enforcement as well quil) through which it holds its remaining 25,01 percent “We have a responsibility not only to Brian Moritz as valuation. [email protected] UK economy grows faster ahead of Brexit

TOCKPILING by manufacturers ahead of Brexit helped the UK economy grow by S0,3 percent in the three months to Febru- ary. The Office for National Statistics pointed to manufacturers “changing the timing of their activities” as the UK’s exit from the EU ap- proaches. Although growth was stronger than the 0,2 percent many economists forecast, Rob Kent- Smith, head of GDP at the ONS, said growth “remained modest”. On a monthly measure, the economy grew by 0,2 percent, faster than the 0 percent forecast. The 0,3 percent rise in the three months to February, was the same as the three months to January, after previous estimate was revised higher. “Services again drove the economy, with a continued strong performance in IT. Manufac- turing also continued to recover after weakness at the end of last year with the often-erratic pharmaceutical industry, chemicals and alcohol performing well in recent months,” said Kent- Smith. Output in production and manufacturing rose for the second month in a row, with manufacturing at its highest level since April 2008, the ONS said. The ONS said production industries ex- panded by 0,2 percent in the three months to February 2019. This was the first positive three- month growth since October 2018. It said there had been external evidence “that some manufacturing businesses have changed the timing of their activity as we approached the original planned date for the UK’s departure from the European Union”. “Although the ONS does not routinely col- lect detailed data on the reasons behind the behaviour of businesses, as part of our survey validation we have found some qualitative evidence that supported this view but were unable to quantify its impact,” it added. The ONS pointed to a closely-watched survey by IHS Markit/CIPS which showed UK factories were stockpiling goods for Brexit. Month-on-month growth in the industrial production sector was 0.6percent in February, with manufacturing increasing 0,9 percent, the ONS said. Samuel Tombs, chief UK economist at Pan- theon Macroeconomics, said the activity in this sector was the main reason the economy had grown more quickly than expected. He said this might be “due to a temporary boost to production which will unwind” in the second quarter of the year. Construction output also rose faster than expected, perhaps because of the warmer than usual weather in February, he added. Ruth Gregory, senior UK economist at Cap- ital Economics, also highlighted these areas as the main surprises in the data. — BBC Page 28 | April 11-17 2019 The Financial Gazette National News Medtech stock dazzles on ZSE Omega Ukama Business Reporter

HE bizarreness of penny stocks was on full display on the Zim- ‘Zim currency crisis Tbabwe Stock Exchange (ZSE) during the first quarter this year, as Medtech Holdings (Medtech) outperformed every other counter on the remains unresolved’ market after gaining 350 percent. Shares in the company, which sells From Page 26 This helps you politically and diplo- consumer goods, medical supplies NG: In terms of funds repatria- matically and also assists towards solv- and light industrial products, opened tion, has the interbank foreign cur- ing economic issues. For Zimbabwe to the year at $0,0002 and closed the Medtech outperformed other counters on the ZSE. rency market helped? do so, we see no problem, and we sup- first quarter at $0,0009. RM: Repatriation of funds has been port this endeavor. The counter only traded in four ucts and increased competition by ny counters like Medtech is liquidity. the major reason for low bi-lateral in- NG: Apart from trade and invest- single instances during the period unregistered operators,” he said. De-investing from a penny counter vestments into Zimbabwe. If you see, ments, I understand India and Zim- under review but managed to gunner He said the company however may be hard as one might not find trade between Zimbabwe and India is babwe collaborate well in terms of a market toping 350 percent increase benefited from its low share price, buyers. More so it is difficult to sell currently very low. cultural exchange. How far has this in value. and added that penny counters also large quantities of penny stocks as This has increased trade deficit in relationship grown? Enock Rukarwa, a research ana- do not have circuit breakers “imply- they are thinly traded,” Rukwara said. favour of India. Most Indian companies RM: India and Zimbabwe’s rela- lyst at FBC Securities Research, said ing that the price can increase by even “In terms of fundamental analysis are keen to send products to Zimbabwe, tionship is not only centered around “this is the beauty of investing in pen- 100 percent on a single day unlike and information availability, disclo- mainly pharmaceuticals, but once they trade and investment, but also includes ny stocks”. blue chip counters whereby the price sure levels on such counters is usually do that, they are failing to get the pro- a strong element of arts, food, music “Penny stocks cost as much as increase is within plus or minus 20 anywhere from mediocre to non-exis- ceeds of their exports from Zimbabwe. and culture. As a diplomatic mission, pennies but earnings on these count- percent on a single day”. tent. It will take more work to acquire The Reserve Bank and the govern- cultural exchange programmes form ers are limited and attaining signifi- Batanai Matsika, the research the information that one could easily ment of India have been trying to push an integral part of India’s relationship cant earnings demands buying shares head at Morgan & Co echoed Ru- get from a large company,” he added. hard, but they are not getting the pro- with Zimbabwe. in huge volumes,” he said. karwa’s sentiments saying while “the Medtech is a manufacturing, re- ceeds. Therefore, because of that, many This of course includes the ex- Rukarwa said there was not much Industry has potential and Medtech is tail, distribution and services compa- businesses have held their exports to change of ideas, information, art, lan- in the fundamentals of the company especially position of the few company. Its FMCG division manufactures Zimbabwe. guage and other aspects of culture be- to warrant such gains. nies that can give an investor expo- and markets personal care products, NG: Zimbabwe has been engag- tween the two friendly countries and “Fundamentally Medtech has sure to the sector, small caps however and the medical division producing the world seeking financial bail- their peoples in order to foster mutual been making losses from 2012 to do tend to move up and down easily”. es pharmaceutical products for the out and re-engagement. Is this the understanding. 2015 due to various factors such as The total value traded in Medtech wholesale distribution to retail phar- right? The purpose of cultural exchange capital inadequacy and slow debtor during the period under review was macies. RM: Not only Zimbabwe has been is to develop an understanding of each repayments. only $100,93. FBC Securities Re- The company also supplies prod- doing this. On engagement or re-en- other’s ideals and institutions in an ef- “Being a heavy importer Medtech search says these were all realised on ucts for laboratories and services edu- gagement, there is no problem with fort to build broad support for econom- has also been at the mercy of delays the mobile trading platform C-Trade. cation and healthcare institutions. that. My Prime Minister does a lot of ic and political goals. in foreign payments remittances to “The biggest challenge with pen- [email protected] engagement with friendly countries. [email protected] supplies, smuggled competing prod-

ForFor the the week week ending ending 13 10 March April 20192019

For the week ending 13 March 2019 The Financial Gazette April 11-17 2019 | Page 29 National News Peter Gambara tenth of what they had delivered by the same time last season. Indications OVERNMENT this week an- from some of the Farmers Unions are nounced producer prices for that they were asked to make their Gagricultural products. The Farmers not happy submissions to the parent ministry agricultural marketing season offi- of Agriculture and they express sur- cially starts on April 01, every year. prise at the announced figures. These Maize was pegged at RTGS $726,00 developments will seem to indicate a per tonne, soyabeans, RTGS $918 per poor consultation process between the tonne, cotton, RTGS $1,950 per tonne. ministry of Agriculture and its stake- The maize producer price has at- with new maize holders. tracted a lot of attention, as it is way Government also announced a 38,5 below what farmers were expecting, percent subsidy to miller’s, which and is likely to affect deliveries this means GMB will sell maize to millers year. at approximately RTGS $446,00 per The cost of agricultural inputs sky producer price tonne and incur a subsidy of RTGS rocketed by a factor of 2,2 last Octo- $280 per tonne. This seems to suggest ber, following the instruction to banks that government is afraid of the reper- by the RBZ governor to separate for- cussions of a huge increase in the cost eign currency dominated accounts of a staple crop. It is not a secret that from local currency dominated ac- the prices of most basic commodities counts. have gone up in the supermarkets and Before that announcement, the continue to go up everyday. The cen- bond note was trading at 1:1,5 to the tral bank governor was on record this US dollar, but after the announcement, week, criticizing firms for increasing the rate firmed to 1:3,5, which trans- prices of goods using the excuse of the lates to a factor of 2.2 (220 percent). movements on the foreign exchange Some seed houses actually in- rate on the market. The truth is con- creased the price of seed by a factor of sumers should brace for some massive four, before they were called to State jump in the price of mealie meal soon. house where government read the riot Secondly, who benefits from -pay act to them. ing a subsidy of RTGS $280 per tonne However, the prices of seed, fer- to millers? Assuming GMB bought tilisers and chemicals went up by at 1,5 million tonnes from farmers and least 220 percent. Some chemicals resold it to millers at a 38,5 percent went up by as high as 400 percent. discount, the total subsidy amounts In addition to this, the price of diesel to RTGS $420 million. Surely, this went up by 150 percent in January this could have been channelled to the pro- year. This has increased the cost of duction process, so that seed houses, production of maize to at least RTGS fertilizer and chemical manufacturing $4,286.00 per hectare. companies availed cheaper inputs to When government launched the farmers. The cost of production per Command Agriculture programme, tonne would then be cheaper as well. they set the minimum yield level to be This season government decided to re- achieved by contracted farmers at five duce funding for the Command Agri- tonnes per hectare. culture programme, on the recommen- However, prior to that, government The cost of maize production has increased to at least RTGS $4,286.00 per hectare. dations of proponents, who argued that used a yield level of three tonnes per it was draining the fiscus. Which is hectare to calculate the maize producer better, subsidizing agricultural inputs price. official exchange rate of 1:3. Many be able to fund their production for the about by the Cyclone. or paying subsidies to millers and in The average yield level of maize companies including ZOL and TelOne, next season. The official estimates of the area the face of the inadequate harvest this in Zimbabwe is actually less than one used the same reasoning, when they Putting it in monetary terms, as- planted to maize as well as the ex- year, having to import the maize from tonne per hectare. recently announced increases in the sume a farmer achieved five tonnes per pected yield were not communicated Mexico or Argentina using the scare Assuming they adopted the five prices of WI-FI bundles. They argued hectare last season and sold it to Grain widely this year. The second estimates foreign currency. tonnes per hectare, it means, it now that they had not increased the prices, Marketing Board (GMB) at $390,00 are normally out by end of March each Government uses the taxpayer’s costs RTGS $857,24 to produce a but simply converted the previously per tonne, he/she would realise $1 year. It therefore remains everybody's money to pay this subsidy and the tonne of maize. If a yield level of charged US$ prices to RTGS $ prices. 950,00. Even considering the price guess what the country will harvest question that arises is does government three tonnes per hectare was to used, The same argument can surely be used of diesel was still pegged at $1,25 per this season. have control over what the millers and it would cost RTGS $1,428,73 to pro- here. litre, the total cost of production per However, unofficial estimates put retailers charge for the maize products duce a tonne of maize. Government In arriving at a maize producer hectare then was Bond $4 077,00. This the total harvest this season at below like mealie meal etc? The current set normally then adds a 30 percent mark price, government also normally con- means a farmer, who had achieved a one million metric tonnes. That will up is such that government has been as a return to farmers. siders other factors. When govern- decent yield level of five tonnes per mean the country will need to import accused of folding its arms, whilst re- Assuming government used a yield ment was criticised for paying farm- hectare could not fund the production maize to cover the deficit. The coun- tailers increase prices, willy-nilly. level of five tonnes per hectare, the ers $390,00 per tonne and reselling of maize the next season and actually try needs at least two million metric Government ought to provide at producer price of maize would amount the same maize at $250,00 per tonne needed to borrow bond $2 127,00 per tonnes to meet human and livestock least some guidelines or engage the to RTGS $1 100 per tonne. to millers, it argued that it wanted to hectare from somewhere. needs. Further to that, in a drought retailers and reach some consensus The current world producer price encourage production, even at a subsi- As if that was not enough, the sea- season, the black market prices of on pricing of basic commodities; oth- is US$166,74 and that translates to dy cost of a $140/tonne. One wonders son proved a drought season as the maize tend to firm in response to the erwise, government will be using the RTGS $630,80 per tonne, but that therefore if government does not feel rains disappeared around the third huge demand levels. The black market taxpayer’s money to enrich millers. price does not include the cost of ship- it is still important to promote maize week of March, resulting in most maize prices are therefore likely to be The maize producer price an- ping the maize from wherever it will production. crops failing to reach maturity. way above the $726,00 announced by nounced by government this week is be purchased and transporting it to Ha- The Command Agriculture pro- Many farmers therefore had to government and if we take the princi- way below what farmers were expect- rare. It will definitely land in Harare gramme was not fully supported this write off large sections of their crops. ple that those markets reflect the true ing. Assertions that it is now at parity at way above the RTGS $726,00 that season, as only a few inputs were They were at least hoping for some price, it remains to be seen, where the with regional prices is just a fallacy. government is prepared to pay farm- made available. This is likely to come kind of cushioning from the producer price will finally settle. It is also below the cost of production ers. back to haunt government as they will pricing mechanism to cushion them The discussions I had with a few and is likely to discourage farmers Last season, millers were landing still be forced to import the maize, us- from the drought. farmers after the announcement of the from venturing into maize production maize in Harare at US$360 per tonne. ing the scarce foreign currency. They will therefore feel betrayed by producer price, were of total dejection. in future. As is the norm now, govern- Using an official exchange rate (bank This past summer season was also the announced maize producer price. Farmers felt completely let down by ment needs to go back to the drawing rate) of 1:3, this translates to RTGS $1 just a bad season for farmers in many To cap a bad season, Cyclone Idai such an announcement. This dejec- board, engage farmers, and reach a 080 per tonne. aspects. Firstly, most farmers had al- struck last month, and washed large tion is likely to suppress deliveries to consensus with them before it is too Another way to look at it is to say ready finished delivering their - pro tracts of crops to the sea. Many farm- GMB. late to discourage delivery. The tobac- last year's producer price of 390,00 duce, when the announcement by the ers in the Eastern districts will not reap We have seen a similar case with co experience continues to haunt us. was in US$ and that now translates RBZ was made; therefore, farmers anything this year as their fields were tobacco deliveries this season. Up to Gambara is a South Africa-based to RTGS $1,170.00 per tonne at the had to look for funding elsewhere to washed away by the rains brought date, farmers have delivered only a agronomist. Scrap indigenisation law: Zim miners

IMBABWE’S Chamber of “The indigenisation regulations have peatedly said that the ownership laws, ing even as it seeks to lure mining giants Mines, which represents most of been scrapped except for platinum and put in place during the presidency of such as Russian giant Alrosa PJSC, Po- Zthe mining companies active in the diamonds, we would also want this law Robert Mugabe, will be scrapped to help lite Kambamura, deputy mines minister, country, wants ownership restrictions on scrapped officially so we can get industry attract investment to an economy deci- said in an interview. platinum group metals and diamond op- players coming in,” Manhando said at a mated by years of misrule. Potential discoveries of gems in the erations officially scrapped, the group’s conference in Johannesburg on Wednes- Mining is the country’s biggest southern Masvingo province means gov- president, Batirai Manhando, said. day. source of foreign exchange. While the ernment needs time to gauge the poten- The government has said it plans to “These are areas that require huge nation’s Finance minister Mthuli Ncube tial of the industry, he added. do away with restrictions that stipulate capital and if you put restrictions I don’t has previously said the local ownership “It has to be put down in legislation that the mines must be 51 percent owned think you would be able to attract a lot law would be scrapped for all minerals, and the government is finalising that,” by black Zimbabweans, but is yet to of capital.” government will, for now, insist that local he said at the conference. It will happen change the legislation. Senior government officials have re- investors retain control in diamond min- very soon.” — Bloomberg Mthuli Ncube Page 30 | April 11-17 2019 The Financial Gazette National News Govt appoints new Zim industry seeks Trade Measures board OVERNMENT has appointed or the measuring, marking or packing of fresh opportunities a five member Trade Measures any article”. Gboard, which is expected to uphold The latest development comes at a local consumers’ rights for the next three time when Zimbabwe is looking to align Shame Makoshori meetings in the US, where they en- years. itself with top economies in the world in Companies Editor gaged key institutions to address the Marvis Sibanda, the secretary for in- the recognition and protection of consum- issue of sanctions. dustry announced the appointments in a er rights. HIEF executive officers from Sixteen CEOs travelled to the notice published in the Government Ga- Customers have been on the receiving Zimbabwean firms this week investment trip that included dis- zette of April 5, 2019. end of businesses, as prices of most basic made fresh forays into the cussions in Dubai to share business “It is hereby notified that the Minister goods and services have sky-rocketed in C world’s industrialised economies opportunities in Zimbabwe. of Industry and Commerce has, in terms of the last few months, while they had lim- for discussions in the Netherlands In the US, discussions were held the Trade Measures Act, appointed board ited resources when unfairly treated by meant to unlock business opportu- with the Center for International Pri- members for a period of three years com- traders. nities. vate Enterprise (CIPE). mencing 2019 to 2022,” read the notice. Never Katiyo, the Industry ministry di- Kipson Gundani, chief executive CIPE is one of the four core insti- The new board, which is charged with rector of legal services, recently said the officer at CEO Africa Roundtable tutes of the National Endowment for making sure that consumers are protected newly gazetted Consumer Protection Bill which organized the meetings, said Democracy (NED) and an affiliate from substandard goods and services with provided for the establishment and func- local firms discussed a range of is- of the US Chamber of Commerce. functions such as the appointment of in- tions of the Consumer Protection Agency, sues including securing investment Many in Zimbabwe blame the spectors, is chaired by scientist Matthew whose principal role is to protect the rights and partnerships, global best prac- crisis that has rocked the country Ranganayi. of consumers. tices and partnership strategies. for 18 years on sanctions, but calls Other members in the board include “The functions of the agency are cen- “Africa is preparing for this have also been made for the country Kipson Gundani Danmore Mabambe, Rosemary Musarur- tred on the protection of consumers from unprecedented urban growth, and to carry out reforms in order to have wa Charerwa, Christopher Ngwenya and unjust, unreasonable, improper and unac- therefore rethinking the ‘African the sanctions lifted. Zimbabwe International Trade Fair mar- ceptable, deceptive, unfair and fraudulent town’ is mandatory. Policy makers “Africa’s future is urban. Al- “We have engaged CIPE, who keting manager Stella Nkomo. trading practices,” he said. and business owners are left with ready home to the world’s youngest are under NED. We are business Ranganayi worked as a research scien- “The agency shall also promote fair no choice but to act fast, especially and fastest-growing population, the and we thought we should engage. tist at the Biotechnology Research Insti- business practices by coordinating and bearing in mind the need to realise African continent is urbanising fast- We thought we should understand tute in 1999 before moving to the Nation- networking consumer activities with con- the 11th Sustainable Development er than any other part of the planet. the foreign policy. CIPE are an af- al Metrology Institute in 2002 where he sumers vis-à-vis consumer organisations Goal of making cities safe, inclusive By 2025, there will be 100 African filiation of the US Chamber of Com- kick-started Chemical Metrology capacity and protection of consumer interests. and sustainable,” he said. cities with more than one million merce and NED,” said Gundani. for Zimbabwe before becoming the insti- Further, the authority promotes consumer The meetings, which ended yes- inhabitants and by 2030, six of the “The level of interest on Zim- tute's director in 2007. awareness and empowerment by referring terday also sort to find ways of how world’s 41 megacities will be in Af- babwe is high in the US. We want According to the Trade Measures Act, and appearing before any court.” Africa can respond to the demands rica with Lagos predicted to be the to build new networks and really the board will also be responsible for the Other key areas include promoting of a rapidly urbanising population largest city in the world by 2050,” open our economy to business. The issuance “of certificates in regard to the consumer confidence, empowerment and including in Zimbabwe and how the Gundani said. private sector should always be on suitability of design or pattern of mea- development of a culture of consumer re- country can address urbanisation In October last year, CEO Afri- the forefront of doing these business suring equipment for use in trade or the sponsibility through individual and group challenges. ca Roundtable also held investment deals.” [email protected] amendment of such certificates”. education, vigilant advocacy and activ- The board will also be responsible for ism; providing a consistent, accessible dealing with “any dispute or difference and efficient system of resolution of dis- which may arise between an inspector putes arising from consumer transaction. and any person in regard to the assizing or — Staff Reporter re-assizing of any measuring equipment [email protected] Nyaradzo diversifies into tourism YARADZO Group (Nyaradzo), of the range household and office furniture,” one of the country’s largest funer- she said. Nal assurance firms, has unveiled an The diversified firm joins several inves- ambitious tourism industry strategy, with tors that have established a foothold in the significant investments in luxury cruise resort town of Kariba to take advantage of a boats along Lake Kariba. positive outlook projected for arrivals in the Its entry into the sector beefs up exist- coming years. ing interests in the industry where it already Government projects that the industry operates Sahwira Events, which specialises could generate as much as $1,6 billion this in organising corporate functions, weddings year, from $1 billion in 2018, through at- and birthdays. tracting at least three million tourists, from Wendy Mandizira, Nyaradzo’s non-ex- about 2,5 million previously. ecutive director, said the group recently The boom is projected to return the bought two houseboats that are stationed in sector to its previous glory and it appears Kariba. Nyaradzo chief executive officer, Phillip “Nyaradzo continues to grow compris- Mataranyika, had already realised the po- ing of multiple business units, one of which tential and taken his position well before the is Calundike Exports, our wood manufac- wind of positive changes started blowing.— turing entity, where you are able to get top Staff Reporter [email protected]

ISO certified: Eve Gadzikwa (front row, second from right) the director general of the Standards Associ- ation Zimbabwe, poses for a photo with the staff of Delta Corporation after handing over an ISO 9001- 2015 Quality Management Systems certificate to the Delta Technical Institute in Southerton, Harare recently. The institution became the first in Zimbabwe to be certified. Zim mulls ‘use it or lose it’ mining policy

IMBABWE may withdraw bamura said details of the so-called mining rights from compa- ‘use it or lose it’ approach to mining Znies that are taking too long policy would be made available in to dig for minerals, the deputy mines due course. minister said on Wednesday, part of Speaking at the same conference, efforts to lift output in a sector vital the president of industry body group to the country’s economic revival. Chamber of Mines, Betirai Man- Zimbabwe sits on the second hando, said the industry was in talks largest known platinum deposits af- with the government about review- ter neighbouring South Africa and ing and streamlining mining taxes to President Emmerson Mnangagwa make them competitive. is keen to revive mining after years “The ministry is looking at the of reticence by foreign investors whole array of taxes like royalties during the Robert Mugabe admin- etc to streamline them and establish istration. a more competitive regime. We’re Speaking to investors and min- looking forward to the outcome ing executives at a mining confer- from the ministry of mines,” he ence in Johannesburg, Polite Kam- Emmerson Mnangagwa said. — Reuters Life & ArtsNews Worth Knowing

April 11-17 2019 Page 31 How to attain financial freedom HO doesn’t want financial breakthrough? It’s membering these things will help you rise done. “Only a shortage of people think- that time is coming. There’s no way to achieve finan- something we all dream about, but getting above your competition. ing big, enough.” Shoot for more than cial breakthrough without hard work and believing that Wthere can be tough, especially if we’ve made Grant Cardone, an international sales one million and don’t stop once you get achieving success is truly possible. Trust in the process. poor financial decisions. It can be even harder when expert and self-made millionaire said there. The only one stopping you is you. Trust that when your time comes, you will be ready you’re living paycheck to paycheck and have debt that’s in an Entrepreneur.com article that his Whether you’re flourishing financially for it and that you will do what it takes to keep your keeping you in constant bondage. single biggest financial mistake was not or you’re finances are in a rocky place, business in order. When you truly believe that anything Unless you were born into wealth, have inherited thinking big enough. “There is no short- you should always keep in mind that this is possible, including your personal success, the sky’s wealth or hit the Mega Millions jackpot, the odds of be- age of money on this planet,” said Car- may not be your big financial season but the limit. — beliefnet.com coming an instant millionaire are quite low. However, having $1 million or simply achieving financial breakthrough doesn’t have to come by circumstances or luck. These personal finance tips will change the way you think about money. Make regular investments Investing is one of the best ways to keep your wealth growing and is one of the major keys to financial success. Remember, an investment is the purchase of goods that aren’t used today but in the future to create wealth. For a person who has never made a serious investment, the idea may sound scary but it doesn’t have to be. In- vesting can be extremely intimidating, especially when you’ve never invested in before. Having a financial advi- sor can be advantageous as they will guide you in putting your investments in the right place and really helping you manage your money. There are also tons of beginner investment strategy resources available online that will help you figure out the direction you want to head in. Spend less than you earn Here is a simple rule: you will never become rich if you spend every dollar you earn. So save it. Create a budget around your necessary expenses and every paycheck; put your money into savings accounts that you can’t immediately access. Saving also allows you to have money for down payments on future large-purchase investments like a home. Remember, these purchases serve not only as equity but as investment properties, bought with the intent of earning a return on your investment. There are likely people you know who are sitting on a great amount of wealth but you would never know it because they aren’t flashy – they don’t spend their money on frivolous things but on things that will keep their finances stable. Start a business that you love While there is the chance that you can achieve great financial success by working for other people, the value of your work is split among others and you’re not in control of how money and value are distributed. If you start your own business, you control how money and value are distributed, and these two factors will only grow with your business, especially one you’re passionate about. There are tons of online resources that can assist you in starting your own business. Use them. Generate multiple forms of income Those who achieve great financial wealth generally have more than one steady flow of income, which allows them to produce multiple forms of revenue, consistently. If you already have a business going, invest money in other promising business ventures. Think bigger than just your business. Remember, you’re not limited here. If you have a business idea but haven’t taken the leap, know that it’s never too late to start. Get others to buy into your ision While it’s great to have a vision to build wealth or achieve financial breakthrough, it’s important that others buy into that vision. There is power in borrowing. Start- up money can come anywhere from a small business loan to a family member or friend who wants to see your vision get off the ground. Most self-made millionaires are successful because other people put their money towards it. The key to selling this vision is not only how you deliver that message, but selling how this vision can really be game-changing. Think bigger than your competition You’ve probably heard the saying, “If you’re not first, you’re last.” This is especially true when it comes to financial success, especially in the world of business. You can talk to any self-made millionaire and they’ll tell you that they worked hard to get there. Their success didn’t come from easy, get rich quick schemes. Remember, easy opportunities usually yield low returns. Identify a need that hasn’t been satisfied or take one that has been to the next level. You’d be surprised how far you can get when you outthink the average person. Also, note that long-term success is not a race. It’s really about how you make a product or service better than your competitors. Re- LOS Angeles Lakers legend Earvin ‘Magic’ Johnson News Worth Knowing (59) on Wednesday resigned from his job as the team’s president of basketball operations. The Lakers have Sport failed reach the play-offs for a sixth successive season. Page 32 April 11-17 2019 SPORT SHORTS Zimbabwe silence UAE in first ODI THE UAE suffered a chastening experience on their return to the scene of their greatest triumph as they were thrashed by Zim- babwe at Harare Sports Club. Thirteen months ago, the national team claimed arguably their finest ever result when they beat Zimbabwe by three runs in the World Cup Qualifier. That remains the only time they have beaten a Test side in any official international match, and memories of that day meant they travelled to Zimbabwe optimistic of a repeat this time round. However, they were soundly beaten on Wednesday in the first of four one-day internationals scheduled between the sides. Zimbabwe are missing their captain Hamilton Masakadza and senior batsman Brendan Taylor through injury, while former captain Graeme Cremer is also unavailable to them, having moved to Dubai since last year's fixture. The home side were still too strong for the national team, though, as they ran out comfortable winners by seven wickets, with more than 26 overs to spare. The UAE challenge was over more or less as soon as it had begun, after they were reduced to 19-3 by the end of the 10th over. — thenational.ae

ALL SMILES: Timycen Maruma, left, and Sean Williams share a joke after their brief cameo helped the hosts defeat the United Arab Zim select U20 Barthés Cup team Emirates in the first match of their four-game ODI series at Harare Sports Club yesterday. —Picture by Freedom Mashava ZIMBABWE on Wednesday announced a 28-member provi- sional squad for the group B under-20 Barthés Cup to be staged in Harare on April 17 and 20 in Harare. The Barthes, which comprises of 12 teams, is the only Rug- by Africa junior tournament. Namibia were the overall champions in the 2018 Barthes Cup based on a superior aggregate. Zimbabwe will host Ivo- Davis Cup exposes ry Coast, Morocco and Madagascar in Group B fixtures. The venue has been moved from the previously announced Harare Sports Club to Prince Edward School — the home of the Tigers. Head Coach Farai Mahari has a plethora of choices to fill each position in the starting 15 and is upbeat with the players at hand. ‘skipped’ generation “We are literally one week away from the opening game and we are fine tuning the team. We have got a great squad it is only Paul Nyakazeya hash tag #Zim/RomaniaDavisCup was none ex- After the defeat, Zimbabwe’s Davis Cup is good as it shows up on the day. You know everything looks Online Editor istent in this part of the world. At this consistent non-playing captain Tongoona said it was im- good until the lights come on and we will find out more about uninterrupted decline in rankings, interest, atten- portant to have a supporting system for players to them when the lights come on,” said Mahari. HE Zimbabwe Davis Cup team’s 4-1 de- tion and seeding hashtag #ZimDavisCup #Zim- compete in as many events as possible. The Squad: Rivaldo Kwidini, Bradley Nenzou, Kelvin feat at the hands of Romania on Saturday is Tennis or #TennisZimbabwe might take ages to “The ideal situation would be to give our play- Kanenungo, Allan Mawande, Ryan Tekede, Tapiwa Marimi- Ta major setback for local tennis and has left trend on social media platforms. ers more support so that they can play in more ra, Takunda Magondo, Taine Roelefse, Tabonga Ngonyamo, followers of the sport in the country with more Tennis as a once in a generation sport? tournaments and improve their level of play,” he Tafara Mutseyekwa, Tinashe Hombiro, Neil Mawere, Ton- questions than answers. After the retirement of the Black brothers, said. derai Ndudzo, Clyde Muzengeza, Nigel Tinarwo, Zephaniah Zimbabwe had started the second and final Bryron and Wayne and Kevin Ullyett no local “Team performance was very good. We com- Tasanangurwa, Anthony Mundangepfupfu, Victor Mupunga, day of the Davis Cup Euro/Africa Group II tie player has managed to fill their shoes. peted and after Benjamin’s big win on Friday, Matthew Oworu, Chris Duffield, Keegan Anderson, James at the Sala Polivalenta Indoor Arena in Piatra Zimbabwe tennis, which has for a nearly two we had to cause more upsets to win the tie. Their Oworu, Lebukgang Mokuele, Tonderai Chiwambutsa, Tarirai Neamt with high hopes of causing an upset as the decades was kept in the limelight by the Black doubles team are the Olympic silver medallists, Dzimba, Mudiwa Makanza, Mc Millian Mudara and Tatenda two teams were tied 1-1. This was after the coun- siblings and Ullyett, is hard-pressed to prove so that was a tough doubles for us again. We Rwenyu, try’s number two player Benjamin Lock, who is there is life after the trio. played them close and gave ourselves a chance ranked 546 in the world had caused a huge upset The country’s tennis governing body, Tennis throughout,” Tongoona said. by beating Romania’s Marius Copil ranked num- Zimbabwe, has at times come under criticism for It is reasonably encouraging that the Lock Belt and Road relay reaches Zim ber 80 in the first match of the tie 6-4, 7-5. failing to produce good players to take over from brothers still have the conviction that Zimbabwe However, Romania rose to the occasion to this generation. Highly motivated players such will regroup and rise again. STANDARD Chartered Bank (StanChart) on Sunday launched progress to the next stage, writing yet another as the Lock brothers Benjamin and Courtney, But it must be sobering that Zimbabweans in the Zimbabwean leg of the lender’s Belt and Road relay, a global chapter to Zimbabwe’s Davis Cup results that Takanyi Garanganga, Mark Fynn, Mehluli Siban- general will be content with a “competitive” re- running event that will cover 44 markets around the world. sadly many local fans are now familiar with — da Nigel Badza, and Pfungwa Mahefu are yet to sult even though it is a loss — if the hard times Ralph Watungwa, the StanChart Zimbabwe chief executive, same script different cast. match the bar that was set during the Blacks era. that have hit the game in the country are to be said the relay aims to highlight the bank’s continued commit- Could the Davis Cup glory days be gone? Other players, Martin Dzuwa, Gwinyai Ton- taken seriously. ment to Belt and Road, and the positive impact of the initiative To put it in fiscal terms, Tennis Zimbabwe has goona and Genius Chidzikwe hung up their rack- The country’s failure to hold the Internation- to communities and businesses globally. reached the end of Q1 in 2019. A quarter to reflect ets without making an impact on the court inter- al Tennis Federation Futures Circuit for close “The bank has been a supporter of the Belt and Road ini- and review on expenses incurred, cash generated, nationally. to seven years most probably contributed to the tiative since day one and as a Bank we have the product capa- losses suffered, potential players who can raise For a country that caused a stir when Zimba- stagnation of the sport. bilities and expertise to assist businesses that want to leverage the game standards and seeding. bwe narrowly lost 2-3 in the quarterfinals to the The Futures Circuit is the window to pro- the Belt & Road initiative. Additionally, Zimbabwe is also well It is also a period to analyse tournaments that United States fielding household names in the fessional tennis, enabling young professionals positioned to become a strategic partner for China for Belt & lie ahead and those from which our players have sport then including maestro Andre Agassi in the to progress to the ATP Challenger Tour and ul- Road, and particularly in Africa,” he said. been eliminated or failed to qualify and how the 2000 edition of the elite Davis Cup tournament, timately the ATP World Tour. The retired trio of The StanChart Belt and Road Relay kicked off in Hong sport’s brand can be revived. no one would have imagined that come 2019, no Ullyett, Wayne and Byron Black, who went on to Kong on 17 February, in conjunction with the Standard Char- Tennis is generally seen as an elite sport, but Zimbabwean player would have broken into the put Zimbabwe on the tennis world map, passed tered Hong Kong Marathon. It has since gone through various just like every sport, there will be accusations ATP top 100 for a decade. through the Futures Circuits. countries including Vietnam, Myanmar, Singapore, Sri Lanka, why some set goals and objectives were not met, The Black family including younger sister The country’s failure to host such import- Pakistan, Oman, UAE, Uganda and recently Kenya. The relay silent infighting, personal grievances and naked Cara represented the country with distinction on ant tournaments meant that local players had to will conclude in China on 11 May after the Belt and Road Fo- ambitions. The appeal of parity in any sport is in the professional tennis circuit between 1991 and travel around the world where such tournaments rum. the eye of the beholder. 2015. were being played and owing to the huge costs Watungwa said that the relay is led by eight staff athletes But it is now 15 years since the Davis Cup The trio bagged at least a single doubles involved, most players were forced into early re- selected from the bank’s diverse footprints in Asia, Africa, the tournament lost the spark, anticipation, following Grand Slam title each among many other titles tirement. Only time will tell if local tennis will Middle East, Europe and the Americas. These athletes will par- and glamour that brought the corporate world, during their careers. rise from the doldrums it finds itself in going for- ticipate in running events across 44 Belt and Road markets with- fans and players together. Even on social media So what does the future hold? ward. [email protected] in a 90-day period.