NSSA DATABASE IN SHAMBLES: Page 2 $12

News Worth Knowing Foreign buys dominate ZSE: Page 6

August 8-14 2019 ESTABLISHED 1969 @ FingazLive www.fi ngaz.co.zw Facebook: The Financial Gazette

ZSE Report The All Share Index lost 0,98 percent on Wednesday to close at 181,72 points. Econet lost $0,1358 to set- Dreadful tle at $1,4000, while Innscor was down $0,0596 to close at $2,1256, and Meikles traded $0,0480 lower at $1,2520. The Industrial Index was down one percent to close at 606,20 points, while the Top 10 Index lost 1,4 percent to close at 168,90 points. The Minings Index was fl at at 244,6 recession points. Currencies (Bloomberg) % change ◀ USD:ZAR 15,0953 1,11 ◀ EUR:USD 1,1217 0,16 GBP:USD 1,2144 0,22 ◀ USD: JPY 105,7600 0,67 ◀

Stock Markets 181,72 0,98 ZSE (All Share) ◀ ZSE (Minings) 244,60 0,00 12,249,00 0,95 numbers JSE ◀ FTSE 100 7 171,36 0,04 1,56 Dow 26 029,52

Commodities ◀ Gold 1 497,98 1,60 Platinum 852,44 0,03 ◀ ◀◀ Brent Oil 57,45 2,53 ◀

Grains ( ) Grain SA ◀ White Maize ZAR 2 374,56 1.20

predicted ◀ Soya ZAR 4 649,79 0.5 1.3 Kuda Chideme “It was just an exercise of re-adjusting fi gures and Wheat ZAR 2 655,14 ◀ Special Projects Editor there were miscalculations. Most of the adjustments have also been overtaken by infl ation ... he also un- Nedbank issues IMBABWE’S stuttering economy could con- derstated the impact of the drought,” he said. tract by as much as seven percent this year, Crucially, Hawkins said, the best solution to Zim- strong warning amid the country’s rising infl ation and wors- Z babwe’s deepening economic problems was a resolu- NEDBANK group chief executive Mike ening power, fuel and foreign currency shortages, tion of the country’s political crisis. Brown has issued a strong warning to the experts warn. “It is high time that we accept that the problem is South African government stating that the This comes as under pressure Finance minister not entirely economic. It requires a political solution country is fast running out of both time Mthuli Ncube has fi nally conceded, in his mid-term of some sort, which will start off with reforms on the and money, and urgently needs structural supplementary budget last week, that the local econ- political front. reforms to stem economic and fi scal de- terioration. omy is now in recession. “Once we have that political accommodation, the He sounded the warning on Tuesday “I would say we are looking at a contraction of economic programme will take shape,” he said. after the lender released its results for as much as seven percent. The outlook is going to be John Robertson, another economist, also said the the six months to end June, reporting a more of three-digit infl ation and an exchange rate of country’s relentless power cuts would deal a major CIMAS Medical Aid Society chief executive Vulindlela 2,6 percent growth in headline earnings between 13 and 14 (against the US dollar),” econo- blow to Zimbabwe’s dying economy. Ndlovu says his company has plans to invest signifi cant- to R6,9 billion. ly in new health facilities across the country as part of “While there were some positive mist Tony Hawkins said. “If the power cuts are not addressed, then the developments post the elections in May, Commenting on Ncube’s mid-term supplemen- economy’s contraction is going to be severe,” he strategies to provide members with integrated health- care solutions. The group is among the top fi ve health progress on structural reforms and policy tary budget, he also told The Financial Gazette this said. remained far too slow,” he said. – Busi- week that “there was nothing much” in it. To Page 2 insurers in Zimbabwe. Picture by Freedom Mashava ness Report Page 2 | August 8-14 2019 The Financial Gazette National News Dreadful recession numbers predicted

From Page 1 “The situation is getting worse ... and the be- ginning of the year was also not that good. I can say we are looking at a contraction in the NSSA data region of six percent,” he added. Jee-A Van der Linde, an economic expert with regional think-tank NKC African Eco- nomics, weighed in, saying there was “no in shambles: doubt” that Zimbabwe’s economy would con- tract beyond projections in 2019. “From our perspective, there is a good chance that the economy could contract by perhaps a bit more. In May, we projected an Audit report economic contraction of 3,7 percent for 2019. “That has changed now,” he said, adding Kuda Chideme that the next few months would be “crucial” Special Projects Editor for the country. Van der Linde also said while Ncube’s “op- HE National Social Security Authority's timism and determination to get the economy (Nssa) database is in a “shambolic state” back on track does not go unnoticed, unfortu- T after the compulsory pensions fund “hired nately, he has been handed a poisoned chal- an IT partner, whose system was not good enough ice following years of economic mismanage- for its business”, a forensic audit by BDO Zim- ment”. babwe (BDO) has revealed. “The economy is misfiring. A fiscal stim- Mthuli Ncube Chris Mugaga With Twenty Third Century Systems (TTCS) ulus is required, but the government simply having been contracted to upgrade its computer does not have the money. has been re-introduced, but the greenback is amid much optimism, Ncube insisted that systems for $10 million in 2013, stress tests on “Moreover, adverse weather conditions still preferred. Zimbabwe’s sickly economy would not slide the Germany-backed SAP enterprise planning have exacerbated the situation and placed “People across the board want certainty, into a recession. software exposed quite a number of irregularities undue pressure on the agricultural and power but as long as foreign investors remain un- This was despite the International Mone- and risks, which include millions of payments generation sectors,” he said. convinced, Zimbabwe will not see the foreign tary Fund (IMF) and the World Bank having “to secondary beneficiaries without primary con- “Zimbabwe needs to see money flow into investment inflows needed to jump-start the warned that this was inevitable — with the tributions” and chronic weaknesses in the Bene- the country, but before that happens, investors IMF projecting that the economy would con- fit Payment Systems. would want to see a more stable economic en- “While Ncube’s optimism and deter- tract by as much as 5,2 percent. mination to get the economy back “Payroll processing involved manual inter- vironment. Ncube’s admission last week that Zimba- vention outside the SAP system. The manual in- “The authorities are aware of this, hence on track does not go unnoticed, un- bwe’s economy would contract comes as the tervention was prone to manipulation and there- country is experiencing 18-hour power out- the announcement that the Indigenisation and fortunately, he has been handed a fore was condemned by the auditors,” the BDO ages, amid sharp increases in power and fuel Economic Empowerment Act will be repealed. poisoned chalice following years of report said. prices, of up to 300 percent and 500 percent ‘The mining sector is the one clear channel economic mismanagement. The econ- Close to a million database entries did not respectively. through which the country can get its econo- omy is misfiring. A fiscal stimulus is have contributors’ monthly salaries. Salaries are It also comes after Zimbabwe’s year-on- my up and running again,” Van de Linde said required, but the government simply used to calculate pension. further. year official inflation spiked to a staggering does not have the money.” A total 880 000 database entries did not have “At this point, I would say risk perceptions 175 percent last month, from 96 percent in employee numbers, which is a perquisite when are arguably the foremost driver of inflation June. applying for and claiming pension. expectations in the economy. Jee-A Van der Linde In the meantime, Ncube has stopped the A total of 79 000 entries did not have national “The Zimbabwean consumer is highly economy,” he said. publication of year-on-year inflation statistics, identity numbers while 35 000 did not have so- skeptical over government policy, and for On his part, Chris Mugaga — the Zimba- arguing unconvincingly that these do not give good reason, and trying to instill confidence bwe National Chamber of Commerce (ZNCC) a correct position of the economy — after the cial security numbers. through regulation and restrictions has histor- chief executive — said tourism was the only country dumped the use of the US dollar as a “The system did not produce a clean and ically not proven very successful,” the NKC industry where growth was expected. base currency, opting for the Zimbabwe dollar. complete payroll during the period it was being researcher added. “We were banking on mining and agricul- But the country’s re-introduced local cur- tested. It also allowed duplicate records, which Van de Linde also said of equally grave ture but because of the drought and commod- rency is currently on the back foot against the would then compromise the integrity and accura- concern was the country’s “currency crisis”. ity prices coming under pressure there is no greenback on both the official interbank and cy of the database,” it said. “The authorities must somehow find a fea- doubt that we are going into recession,” he parallel markets — trading at US$1:Z$9,5 and As controversies continued to dog the way in sible solution for the currency crisis in order said. US$1:10 respectively. which Ellman Chanakira's company was award- to restore confidence. The Zimbabwean dollar Upon taking office in September last year, [email protected] ed the job to revamp Nssa's IT systems by James Matiza's executive, Robin Vela's board then yanked TTCS’ contract. And misconduct allegations have also contin- ued to dog the company's continental operations in Malawi, Kenya and Tanzania, which led to re- ports that the Munich owners of the global soft- ware were thinking of stripping the local compa- ny of its agency or SAP partnership. TTCS is 49 percent owned by South Afri- can-based EOH technology behemoth, which has hit the skids due to a number of operational and ethical issues regarding contracts in that country. ― See also page 7 [email protected] The Financial Gazette August 8-14 2019 | Page 3 National News Treasury budget raises eyebrows

Omega Ukama The Appropriation Supplementary Bill also tary budget of $10 billion, putting the total 2019 Senior Staff Writer notes that “the Minister of Finance and Eco- budget at $16,5 billion after the initial budget nomic Development may direct that any of the was eroded by inflation. INANCE minister Mthuli Ncube last week proposed money so appropriated be transferred to the vote Biti added that the budget will not be enough to increase his ministry’s budget allocation for 2019 of any other ministry for the purpose concerned, to deal with the country’s current challenges. Fby 440 percent from $274 million to $1,48 billion, and any monies so transferred shall not be ap- “The majority of our people are wallowing in raising eyebrows among legislators. plied for any other purpose”. poverty and the supplementary budget therefore, If approved, this will make Treasury the second big- Economist John Robertson said the alloca- has an obligation to provide a campus to provide gest beneficiary this year after the Ministry of Agriculture, tion to the Finance ministry usually includes leadership, to provide direction in the face of the which was allocated an additional $3,4 billion. debt repayments under constitutional and statu- existence of the multiple challenges facing the “How can he allocate his ministry such an amount with- tory obligations. nation. out any explanation,” Tendai Biti, Parliament’s Public Ac- “Even though the minister did not mention “But when you measure the supplementary counts Committee chairman said in a telephone interview these in his statement, such sums could be what budget that was read out by the esteemed Min- with The Financial Gazette this week. has brought up the total allocation. ister of Finance on the 1st of August, 2019, you The former Finance minister also raised the issue in par- But generally, if you multiply the original find the budget falling short, being dwarfed not liament this week, saying it was “bad governance”. allocation with the exchange rate, you will find being equal to the challenges that we are facing. “The Finance ministry seeks to allocate to itself in an that the budget is actually now significantly “Not only that, the budget itself is a big fraud, unallocated reserve the sum of $1,2 billion, this is bad gov- smaller. For some ministries, the decline is actu- it is an entire statement of misrepresentation of ernance. The House must approve every cent in the Blue ally alarming," he said. the true state of the economic affairs of our coun- Book. When the Finance ministry is at the forefront of the In total, the minister proposed a supplemen- try,” Biti said. [email protected] Tendai Biti mafia and bad governance ― it is not acceptable. “The minister must disaggregate this $1,2 billion and then distribute it to the respective ministries and not to hide zvikwambo nezvisenga imo mu (goblins and other creatures in that) $1,2 billion,” he said. “Corruption has become so accentuated, it has become so accelerated. Billions and billions of dollars are being lost unlike in the past where the chief infrastructures of corrup- tion were found in the private sector in multi-national cor- porations, illicit financial flows. “The recent character and the recent face of corruption is corruption that is taking place through central govern- ment itself, corruption that is being channelled through the Finance ministry and this is a huge challenge that is affect- ing our country,” Biti said. However, a highly placed Treasury official who request- ed not to be identified because they are not authorised to speak to the media, told this paper that there was nothing amiss about the allocation made to Treasury. “That allocation to Treasury acts as an emergency fund of some sort, which is disbursed to other ministries to fund emergency programmes. So you will find out that most of that money might not be for use by Treasury,” he said. ‘Zim needs to boost exports’

Tabitha Mutenga Features Editor

IMBABWE should come up with measures to tap into other markets and boost its exports, Zim- ZTrade chief executive Allan Majuru has said. He added that the country’s economic growth was dependent on exports, which have remained stagnant at $1,2 billion for the first five months of the year. Between February and May, the country’s import bill fell from $2,3 billion in 2018 to $1,5 billion, with industry experts attributing the decline to limited foreign currency. “In 2018, between February and May, the country’s trade balance was $1,1 billion and in 2019, during the same period, it has dropped significantly to $325 000. It’s good but it has to be aided by growth in exports,” Majuru said. “The trade deficit decreased not because the exports increased but because the imports decreased. We want the trade balance to reduce because of the increase in exports. To date we are still exporting minerals and commodities and South Africa has the biggest share of our exports and what it literally means is if South Africa sneezes we catch the flu. There is need to diversify our export basket.” Zimbabwe is battling to pay for key imports such as electricity, wheat and fuel. In the five months to May, the monthly electricity import bill averaged $3,4 million, down from an aver- age $13,7 million in 2018, resulting in crippling power cuts. Diesel imports in 2018 averaged $93,3 million com- pared to $73,6 million while petrol imports dropped to $36 million from $44 million in 2018. “In 1992 our export basket was satisfying, exports to South Africa were 26 percent but today it's 52 per- cent. In 1992, we were exporting value added goods and services, textiles, clothing, processed foods etc but come 2018 the country is exporting jobs and revenue in the form of minerals and commodities (raw materials),” Majuru added. Authorities in the southern African country are work- ing on measures to strengthen the economy’s balance of payments position, such as enhancing exports, currency competitiveness, as well as reducing over-dependence on imports. [email protected] Page 4 | August 8-14 2019 The Financial Gazette National News ‘OK Zimbabwe Potraz tackles Zesa on power outages Staff Writer er for it to pay for the im- ports, resulting in most of still a good buy’ ATIONAL power these countries demanding utility Zesa Hold- cash upfront. ings (Zesa) should Zimbabwe has one hy- Paul Nyakazeya performance of this business”. N prioritise the information dro-power plant and four Group Digital Editor Prior to the AGM, OK Zimbabwe had expressed and communication tech- coal-fired generators with optimism that the recent abolition of the multi-cur- nology (ICT) sector to a total combined capacity K ZIMBABWE should maintain its market rency system in favour of the Zimbabwe dollar as the improve the ease of doing of 2 240 megawatts (MW), share to break even in the current environ- sole legal tender would stabilise prices, which had business in the country, the just enough to meet de- ment characterised by weak consumer spend, been rising unabated. industry regulator has said. mand. O George Manyaya, the But the Kariba hy- price increases and shortage of foreign currency, a This also comes as the parallel market exchange local equities research firm has said. rate for the domestic currency against the US dollar, Postal and Telecommuni- dro-plant, which commis- In an analysis of the country’s largest retailer’s which has driven inflation of late, has been somewhat cations Regulatory Author- sioned another 300 MW three months performance to June 2019, Old Mu- largely flat since the changes that were introduced in ity of Zimbabwe (Potraz) last year, is only producing George Manyaya tual Securities (OMSEC) said despite the negative June through Statutory Instrument 142 of 2019. head of consumer affairs, a third of its design output said communication plays a vital role in economic indicators, the company’s share remains a “Notwithstanding the above, the company’s stores because of low water levels in the dam. advancing economic growth and reducing Hwange, the biggest coal-fired plant “good buy”. remained fairly stocked. However extended power poverty. was built in the 1980s and work only start- “We expect, however, that should the company outages necessitated the rationalisation of opening “Communication is the nerve of our ed last year to add another 600 MW after maintain its margins and defend its market share, the hours to minimise on generator running and repair economy and if the networks sneeze, the years of false starts during Robert Mug- current near-term negative business and economic in- costs,” said OMSEC. whole country catches a cold. The nation- abe’s 37-year rule. dicators will not sustain in the long term,” OMSEC Sales were up 167 percent during the period un- wide challenge of electricity shortages has The new generators will only come on said. der review and cost growth was less aggressive at affected the sector, resulting in telecom- stream in three years and even then, this “We therefore maintain our buy recommendation, 136 percent whilst gross profit margins remained un- munication firms running most base sta- does not guarantee power because the particularly should the share exhibit any weakness in changed. tions using diesel, which pushes up their major coal supplier, Hwange Colliery, is the immediate term as we see the business still has “The growth in sales was largely underpinned by operational costs,” he told consumers in struggling to stay afloat. potential to grow,” said OMSEC. inflationary trends in our opinion, given limited up- Mahusekwa recently. Three other smaller coal-fired plants OK Zimbabwe’s product supply challenges con- side movement on the volumes sold”. Manyaya noted that incessant power with a capacity to add 270 MW to the na- tinued during the period under review since its last The slump in supply from major suppliers like cuts had serious implications on health, tional grid are down after negotiations to reporting date in March this year, after the persistent Delta Corporation saw aggregate sales volumes in- education, agriculture and tourism “hence secure funding from India’s Export and foreign currency shortages in the country. creasing marginally by one percent. viability and sustainability of the sector is Import Bank to repair and upgrade the “The business is obviously not immune to the “The in-store bakeries have been negatively af- paramount for us continue being open for generators floundered. shocks that the economy is experiencing as gov- fected by power outages as the stores do not have suf- business”. In the last decade, Zimbabwe signed ernment policy changes in the last 12 months have ficient back-up power to ensure optimal productivity. “We are negotiating with Zesa to prior- at least six power generation agreements, been nothing short of significant. A negative gross Management said it would be more prudent on de- itise the transmission and core network so including solar power projects, that would that data centres, hub sites, and hub centres domestic product forecast due to austerity measures, cisions to open new stores. The OK store in Karoi is have added more than 3 000 MW to the among others should not be subjected to grid, but the projects failed to take off due a drought, utility sector deficiencies, lower employ- still scheduled for opening in the current financial load shedding. Because every transaction to bureaucracy and lack of funding due to ment and high inflation is likely to see a negative real period,” OMSEC said. [email protected] lost to load shedding translates to revenue the country’s high political risk profile. lost for government, it is important for Manyaya applauded government for Zesa to come up with sustainable solutions taking an active role to solve the debilitat- to keep businesses operating,” he added. ing power crisis. Energy minister Fortune This comes as Zimbabwe’s economy is Chasi recently secured an additional 300 slowly grinding to a halt as power outages MW from the Southern African Power gripping the nation persist and production Pool to ease shortages. plunges, exports decline, companies lay “We understand the challenges that off staff and disposable incomes shrink. government is facing, especially the hy- Zimbabwe has, for the past 20 years, dro-power system challenges as evidence struggled to generate enough electricity to by the low water levels In Kariba. We meet demand, and has had to turn to coun- really appreciate efforts by government. tries like Democratic Republic of Congo, The removal of duty on solar equipment Namibia, Mozambique, South Africa and and gadgets is a welcome move. Govern- Zambia to top up supplies. ment also has long-term projects like so- During the 2000-2008 recession when lar farms and Batoka hydro-power plant the country was in the grip of a dollar among others,” he said. crunch and hyperinflation, it became hard- [email protected] ‘RBZ ready to play its role’ Shame Makoshori ulate the economy without the complemen- Companies Editor tary monetary policy. In addition, the loss of monetary and HE Reserve Bank of Zimbabwe exchange rate policy autonomy affected the (RBZ) is now in a position to play its country’s ability to respond to economic Tcritical role in the economy following shocks. the abolishment of the multicurrency sys- “While the multi-currency regime tem in June, a regional lender has said. brought much-needed macroeconomic sta- The African Development Bank (AfDB) bility, it was also accompanied by credit said one of the drawbacks brought by dol- constraints, which manifested through the larisation in 2009 was inability of key arms liquidity crunch in the banking sector and of the state to work together to deliver the loss of monetary policy instruments,” AfDB country’s turnaround ambitions. During said. the multicurrency system period in the last In the past 10 years, the United States decade, the central bank was reduced to a dollar became the dominant currency for spectator, unable to set interest rates, print both accounting records and transactions, currency or determine exchange rates. with even government accounts being kept “The reintroduction of the Zimbabwe in that currency. Movements in the US dol- dollar has repositioned the RBZ to under- lar/rand exchange rate had considerable ef- take full central banking functions, in par- fects on Zimbabwe’s inflation, competitive- ticular using monetary and exchange rate ness and international investment position. policy instruments to complement fiscal AfDB noted that the multicurrency sys- policies in managing the economy,” AfDB tem stifled growth, as the country could not said. utilise monetary instruments to influence Zimbabwe suspended use of its currency economic activity, and gradually lost com- for 10 years from 2009, until June 24, 2019, petitiveness compared to major trading part- when Finance minister Mthuli Ncube rein- ners. troduced the mono currency regime to stem “The increase in inflation demanded runaway inflation and price volatilities. more robust policy interventions to address However, along the with currency this challenge. In a bid to establish condi- change, market volatilities have deepened tions for the restoration of positive econom- and prices have gone beyond the reach of ic growth and address the challenges caused many. by the parallel foreign currency market, Market experts believe there is hope that government moved swiftly to reintroduce a measure of stability will be achieved in the the Zimbabwe dollar as the sole legal tender long term. through Statutory Instrument 142 of 2019, During the multicurrency system, fiscal announced on June 24, 2019,” the regional policy became the main instrument to stim- bank added. [email protected] The Financial Gazette August 8-14 2019 | Page 5 National News Zim firms struggle to access US$100 million UK loans

Tabitha Mutenga CDC assured local companies that the Features Editor financial institution was committed to providing industry with affordable fi- OREIGN Affairs and Internation- nance to boost production. al Trade minister Sibusisio Moyo “The facility remains open, and Fsays local companies have failed while companies in Zimbabwe have yet As the country battles relentless power cuts, most households have resorted to LP gas. to access the US$100 million provided to access the facility we look forward by the United Kingdom’s CDC Group to the time when they will do so. We through Standard Chartered Bank (Stan- remain fully committed to the facility chart), in 2018. alongside Stanchart,” Rhyddid Carter, ‘Govt won’t control LP gas prices’ Moyo said the risk-sharing agree- CDC corporate communications man- ment between CDC and the Stanchart ager said. Nelson Gahadza ary, to an average of $20 per kg this pipeline, and there are plans to con- provided the much needed foreign cur- The five-year facility will be used Staff Writer week. struct a second pipeline. rency capital for local businesses, al- for capital expenditure and for helping Guri, however, said usage of LPG “There are plans to have a second lowing them to grow, create jobs and businesses meet their day-to-day financ- HE Zimbabwe Energy Regu- gas per capita in the country is still pipeline but the current one is not be- improve the country’s economic future. ing needs. latory Authority (ZERA) says below 3kg compared to averages of ing fully utilized, averaging 6 million “When I was in the UK I was being The likely recipients will include Twhile it is working on a policy 10 to 13 per capita in most developed litres, when there is potential to pump told unfortunately by Britain’s foreign firms in the food processing, manufac- framework to govern the Liquid Pe- countries. through more than 10 million litres. secretary Harriet Baldwin that the pri- turing and agriculture sectors. troleum Gas (LPG) industry, it will “The market is currently free with Zimbabwe’s fuel crisis has had a vate sector in Zimbabwe has not been Zimbabwe has suffered through a leave the market to regulate prices in dealers setting own prices. It is the devastating impact on the economy able to access the US$100 million given 20-year economic crisis, which has re- order to grow the sector. reason we are seeing different prices as the price of the commodity has through Stanchart,” he told delegates at- sulted in an acute economic downturn Engineer Andrew Guri, the au- in the market, but if we are to regu- risen more than four times since the tending an exporters meeting in Harare. and hyper-inflation. thority’s head of the petroleum de- late them now, most of them will not beginning of the year. The agreement came at a time when Lending activities, especially from partment, said the sector would be meet the conditions,” he said. This week, ZERA increased pet- the Zimbabwean private sector faces a financial institutions have been and left to determine prices to promote He said to date, a total 20 million rol and diesel prices from $7,55 to critical shortage of foreign currency for even more constrained given persistent growth. kgs of gas has been consumed, with $9,01 per litre and diesel from $7,22 import of raw materials and other es- currency shortages and limited external “It is difficult to enforce regula- another 40 million kgs projected by to $9,06 per litre. sentials after many years of economic funding lines to banks. tion when we want the usage of LPG year end. According to ZERA, the changes decline. In 2013, CDC backed Takura, a lo- to grow,” he said. Guri added that government in the fuel process are due to FOB In the absence of trade finance, cal Zimbabwean investment fund with a As the country battles relentless through the National Oil Company (Free on Board) price movements Moyo encouraged exporters and local US$23m commitment, which has been power cuts, most households have (NOIC) was working on developing and the revised duty regime. companies to fully utilise the opportuni- used to support SMEs, particularly in resorted to LPG as a substitute. How- storage facility for gas, similar to the The fuel price increases have re- ties available to access financing. the food and agri-processing sectors. ever, price of the commodity has Masasa fuel depot. sulted in another wave of increases of Despite the failure to access the loan, [email protected] risen significantly from an average About 95 percent of fuel stored at prices of basic commodities. $1,30 per kilogramme (kg) in Janu- the Masasa depot comes through the [email protected]

ForFor the the week week endingending 137 August March 20192019

For the week ending 13 March 2019 Page 6 | August 8-14 2019 The Financial Gazette National News ‘Zim at tipping point, Blue chip counters wheels coming off’ excite foreign buyers IMBABWE’S Finance min- to an estimated 500 billion percent. Paul Nyakazeya ister Mthuli Ncube responded If the more commonly used Group Digital Editor Zto the country’s worsening black-market exchange rate is used, economic crisis last week by black- Zimbabwe’s annual inflation is -cur OREIGN investors were net buy- ing out inflation statistics for the next rently 558 percent, about three times ers accounting for $23,4 million six months, boosting the price of the the official rate, while Venezuela’s is worth of shares on the Zimbabwe little power that’s available five-fold 35 004 percent, according to Steve F Stock Exchange (ZSE) in July, with par- and admitting what the Internation- Hanke, a professor of applied eco- ticular interest in Innscor Africa Limit- al Monetary Fund told him in April: nomics at the John Hopkins Univer- ed (Innscor), Dawn Properties Limited the economy will contact for the first sity in Baltimore. (Dawn) and Old Mutual Limited (OM) time since 2008. Scrapping the official annual rate According to figures from the bourse, At the same time he spoke of fis- is “no real loss from an analytical per- foreign purchases accounted for $41,9 cal surpluses and a relaxation in local spective,” said Jee-A van der Linde, million worth of shares while sales ownership requirements for the key an economist at NKC African Eco- amounted to $19,5 million, during the platinum industry. nomics in Paarl, South Africa. period under review. This all happened in a country “These elevated inflation readings Of the $41,9 million shares bought, with daily power cuts of up to 18 Emmerson Mnangagwa did little more than create panic and Innscor accounted for $8,67 million, hours and shortages of everything damage what little confidence was Dawn $8 million and OM $6 million. from bread to motor fuel. and if it falls over the edge it’s go- left.” The other counters to record positive People are receiving food aid in ing to be quite a long way in coming Still, the decision evokes other net buying were PPC at $1,1 million, OK Phibion Gwatidzo cities for the first time and a drought back,” said Derek Matyszak, a Zim- countries in crisis. Venezuela halt- Zimbabwe Limited $448 681, First Mu- has necessitated the import of hun- babwe-based research consultant for ed publication of inflation data and tual, $293 716 and Meikles $145 863. concerns, limited disposable incomes as dreds of thousands of tons of corn. South Africa’s Institute for Security while it periodically releases figures, “Innscor is poised to generate more well as foreign currency shortages. When Robert Mugabe was ousted Studies. it isn’t operating on a regular sched- revenue in the near future due to its com- Dawn recently said it would this after four decades in power in late “The wheels are falling off. There ule. petitive cost structure, which is based on year increase its investment property 2017 his replacement, Emmerson is no way out of a Ponzi scheme other In 2013, Argentina was censured increased production and export compet- portfolio in tourist resort areas to boast Mnangagwa, promised economic re- than a massive infusion of cash to pay by the IMF for tampering with its itiveness,” a local equities research firm revenue as return on investment in such generation and declared that Zimba- off your creditors.” data. Old Mutual Securities said (OMSEC). zones is generally higher. bwe is “open for business.” The country with the world’s A de-linking of the country’s qua- The listed diversified concern record- Commenting on the company’s out- Instead things have gone from bad highest inflation rate after Venezu- si-currencies from parity with the US ed a 61 percent increase in revenue to look after the group recorded a revenue to worse with the effects of rapidly ela also suspended annual consum- dollar in February and the re-impo- $490 million in the six months ended of $11,2 million for the year to Decem- expanding money supply through the er-price data for the next six months. sition of the Zimbabwe dollar over- December 31, 2018, driven largely by ber 31, 2018, a 117 percent increase sale of Treasury bills under Mugabe’s The authorities need to collect com- night in June has fueled depreciation double-digit volume growth across all from $5,1 million achieved last year, rule coming home to roost and this parable data since the introduction of with the currency officially trading at categories. Phibion Gwatidzo, Dawn chairman, said year’s outlawing of the US dollar in the new currency in February. That 9.28 to the dollar on Aug. 2. This saw Innscor reporting a 167 increasing the land bank was their major favour of a local quasi currency that marked a return to 2009, when the The black-market rate was 10.8, percent increase in profit for to $64,011 focus this year. can’t be traded outside the country country abandoned the Zimbabwe according to Marketwatch.co.zw, a million compared to a $23,963 million Gwatidzo said the increase in reve- causing panic. dollar in favor of the US dollar and website run by analysts. recorded in prior period. nue was mainly attributed to recognition “Zimbabwe is at a tipping point other currencies after inflation surged — Bloomberg “The decision by the company to be of the property development income competitive on the price front through coming from the company’s first devel- improving its local production process- opment in Marlborough, Harare and a es is expected to sustain its competitive stronger performance from the property advantage in the future as well as defend investment portfolio. and even grow its market share,” OM- Property is one of the safest invest- SEC said in an analysis of Innscor’s fi- ments in an inflationary environment, nancial results. whose return is usually at par or above Market analysts also believe that inflation. the company’s latest arrangement had OM shares are listed on the Johannes- potential to open avenues for increased burg Stock Exchange with a secondary export competitiveness at a time when listing on the Nairobi Securities Ex- TOBACCO INDUSTRY AND MARKETING BOARD the local economic environment is ex- change and the Malawi Stock Exchange. 429 Gleneagles Road pected to remain tough given liquidity [email protected] Southerton P.O. Box 10214 Harare Tel: 263 242 621740/1/3-5, 621751/3/4, 0772 145 166-9

INVITATION TO BID - DOMESTIC

Bids are invited from domestic reputable bidders registered with the Procurement Regulatory Authority of Zimbabwe for the following requirements: Management and staff Tender Number Description of Grosbrook Real Estate would like to congratulate the incoming President TIMB/TL 05/2019 TRANSPORT LOGISTICS BROKERAGE SERVICES Mr Alexander Millin, the Vice President Mr Brain Three hard copies of bids must be enclosed in sealed envelopes, Kashoni and Mr Victor addressed to Chairman of Procurement Management Unit and endorsed Wasara for his re-election on the outside with the advertised tender number, the description, name to the Real Estate Institute of the bidder, closing date and must be deposited in a tender box at; of Zimbabwe Board.

Tobacco Industry and Marketing Board 429 Gleneagles Road Southerton Harare

Opening date: 2nd August 2019 Closing date: 3rdSeptember 2019 at 10:00 hours

Documents for tenders are obtainable upon production of proof of payment of non- refundable tender fee of RTGS$20.00 at TIMB HQ. The Financial Gazette August 8-14 2019 | Page 7 National News ‘NSSA housing projects backed by law’

Staff Writer one with title to land and the capacity to at what we developed, we... brought in a Lloyd. develop houses (can) approach Nssa... more dignified product..,” he said. Under those proceedings, the compa- HE National Social Security Au- The proposal ... to develop houses and Further, the 8 000 units HCZ was to ny successfully managed to convince the thority (Nssa)’s off-take agree- sell them to Nssa at pre-agreed prices. deliver in Caledonia were 3,5 times stron- experienced commercial lawman on five Tments with various developers, in- Nssa pays the contracted party a depos- ger than the National Building Society's key areas around its erstwhile partner's cluding Housing Corporation Zimbabwe it... and where the value is not enough, western Harare houses as they were “hur- violations of their July 2017 contract and (HCZ) and Metro Realty (Metro), were the developer should take out an advance ricane proof” and made out of “concrete, the victory came at the back of Justice within the law, documents show. payment guarantee..,” it said. and steel technologies”, and therefore, Esther Muremba's order that the author- This comes amid worrying concerns Amid howls of discontent that the they could not be compared from both a ity could not recall a $16 million perfor- and a consistent trend where the com- multi-million dollar deals ― inked by pricing and durability point of view. mance guarantee deposited with Zimnat pulsory pensions fund has perceptibly HCZ, Metro and others ― had not been And the Mauritian-backed pri- Lion Insurance Company. developed a penchant for yanking ongo- sanctioned through formal tender pro- vate developer's travails come as Met- And even though HCZ has been bat- ing contracts, and at a time government's cedures, the BDO report and attendant bank-linked Metro is also experiencing tling to register its final award with the housing delivery plans ― as well as ef- laws have actually dispelled the notion almost similar problems, if not run-ins, High Court ― as Nssa has also appealed forts to reduce the 1,5 million backlog ― that formal expressions were necessary, with Nssa over its Chinhoyi project, and Lloyd's six-month-old verdict ― Molai also hinges on private sector partnerships. especially in scenarios of ventures almost where the parastatal has moved to cancel says their company “supported govern- “Prior to commencement of works, similar to public-private partnerships. the off-take agreement. ment's efforts in rooting out corruption, the developer shall secure title, develop- And as HCZ, and Metro remain un- Information at hand shows that the but it must be done in a just and trans- ment rights and the title deeds ... to Nssa der pressure for alleged irregularities in Adam Molai statutory body had not only moved to dis- parent manner, which inspires investor nominated conveyancers or held in safe the manner in which they won the deals, owned SPV specifically for that purpose, own the 202 houses built at St Ives, but confidence in the country”. custody for the duration of the project or pricing models and capacity issues, the and project,” Adam Molai, the compa- asked the beleaguered real estate compa- As such, the company would not only prove that the title is held securely by a... former insists that it had to carve out ― ny's chairman, said, adding the kind of ny “to return its monies”. provide ZACC with a dossier on how it bank or other institution,” BDO Zimba- from Housing Corporation Africa ― a properties they had delivered “were to HCZ, meanwhile, has also been bat- came to be involved with the compulso- bwe (BDO) said on page 70 of its con- local special purpose vehicle (SPV) in be found in the country's medium density tling and scandalised by untested corrup- ry pensions fund, but seek to protect its tentious forensic audit on the state-run order to comply with Zimbabwe’s indi- areas”. tion charges by the Zimbabwe Anti-Cor- rights by way of instituting legal pro- institution and with references to statuto- genisation laws. “When you look at the... Dzivarase- ruption Commission (ZACC) and later ceedings against areas of the BDO report, ry instrument 18 of 2015, off-take agree- “HCZ provided Nssa with an invest- kwa (model), it is a core house. It doesn’t BDO, but the company has won a $30 which were untruthful, injurious and ments and the organisation's own act. ment memorandum dated August 2016 have a ceiling, floor, drainage, kitchen million damages claim from Nssa after harmful to its reputation. "This is an arrangement where some- and ... we incorporated a Zimbabwean and bedroom cabinets. When you look a February arbitration process by Peter [email protected] Rolling blackouts hit Zim businesses, jobs... T'S 10pm in Harare's Graniteside industrial Hydroelectric Power Station. diesel costs cut into their margins, must contend whose economic livelihoods are in danger of being area, and the machines at TNT Plastics, a Chi- When combined power generation levels at with power cuts that can last up to 17 hours a day. short-circuited. Inese-owned plastics factory, are warming up af- Kariba fell from 1 476 MW (1.476 million kW) per Power generation in Zimbabwe isn't expected Brenda Mposana, a clothing worker in Harare, ter sitting idle for the past 16 hours. day to 890 MW (890 000kW) in March, the Zimba- to return to full capacity until water levels in the sits outside the factory with her colleagues, waiting When running at full capacity, TNT Plastics bwe Electricity Supply Authority started rationing Zambezi River return to normal. In the meantime, for the power to switch on. converts a tonne of plastic raw materials into chairs, power for the first time in two years. to bridge the gap between the country's energy-pro- "We cannot stop coming to work," Mposana told buckets, cups, dishes and utensils in three shifts a At first exempt from rolling blackouts, the coun- ducing deficit and its daily needs ― some 1800 Al Jazeera. "If power returns, we won't be able to day. But for the past month, the company has only try's industrial zones are now feeling the pain. MW (1.8 million kW) a day ― Zimbabwe has work if we are not here. " been operating an overnight shift, thanks to rolling The deafening rumble and choking fumes of turned to importing electricity from its neighbours. The company that employs her used to purchase blackouts that have forced it to slash production. emergency diesel generators have been clogging But the amount being imported isn't enough to fuel for its small generator, but stopped when rising "We are supposed to be running the factory for industrial hubs throughout Zimbabwe since power meet demand, thanks in part to tens of millions of fuel prices made running it too costly. 24 hours daily. Now, we are doing about 10 hours rationing extended to them in June. dollars in unpaid bills that have made foreign sup- For working parents, the window to work is al- per day," Ian Vumba told Al Jazeera. "We are oper- "This is the first time in more than 30 years we pliers wary of doing business with Zimbabwe. ways in danger of closing. Cleopatra Jack, a trim- ating at about 40 percent of our capacity." have had to run the factory on a generator," Kumbi- Zimbabwe owes $35 million to Mozambique's mer in the factory and mother of three, used to work "I have had to let some people go," said Vumba. rai Dube, an employee of the country's largest tis- power utility, Hidroelectrica de Cahora Bassa, and during a day shift. Although she needs to earn mon- TNT Plastics isn't the only manufacturing firm in sue-manufacturing company, told Al Jazeera. has reduced its debt to South Africa's Eskom to $27 ey, she can't switch to a night shift due to childcare Zimbabwe squeezed by a chronic power shortage. But diesel generators are expensive to run, espe- million after paying $10 million last month. issues. A poor rainy season has depleted water levels in the cially as fuel prices soar and Zimbabwe's only legal While an additional 400 MW will help ease "It's very difficult to work at night as a married Zambezi River, sapping output at the country's big- tender, the Zimdollar, depreciates rapidly. power cuts, it won't totally take the heat off Zimba- and female employee," she said. "I can't leave the gest electricity supplier, Zimbabwe's Kariba South Firms such as TNT, which can't turn a profit if bwe's power-starved manufacturers ― or workers kids unattended the whole night." - Al Jazeera Page 8 | August 8-14 2019 The Financial Gazette Leader Page

News Worth Knowing Power and fuel price rises worsen turmoil RESIDENT Emmerson Mnangagwa’s administration’s latest decision to hike power and fuel prices does not only sound Pa death knell for Zimbabwe’s struggling economy, but also shows a government that has run out of ideas to turn things around. With the economy already in recession, the latest fuel price hike ― the fourth time in eight months ― will result in businesses either scaling down operations or completely shutting down due to esca- lating production costs and low aggregate demand. It is a no brainer that most companies ― already reeling from 18-hour load shedding ― would not be able to sustain increased fuel usage and price increases without folding. All this coming at a HEALTH CRISIS: Health minister Obadiah Moyo (right) and Harare Hospital CEO Tendai Dhobbie tour the time the Zimbabwe Power Company has indicated that it will soon neonatal intensive care unit at the institution. Zimbabwe’s infant mortality rate of 36,5 deaths per 1,000 live stop generating electricity from Kariba as water levels in the dam births is below internationally accepted standards and the country's health delivery system requires at least $1,387 billion annually. Health expenditure per capita in 2017 was only US$24, down from US$115 in 2014, the have reached precarious levels. lowest since 1980 although it improved from US$31 in 2018 to US$41 in 2019. Picture by Freedom Mashava. What this effectively means is that manufacturing, retail, mining and agro-based firms would be forced to increase diesel usage to sustain their operations and, in the process, suffer from high pro- duction costs. Already, major retailers have reduced their operating hours to try and contain costs, which are skyrocketing due to increased use Failure to market Zim of diesel-powered generators. Businesses are not charity organisa- OR a country like Zimbabwe, the fact that the government had taken methodical and disciplined follow-up tions and by their nature exist to make a profit, but once that mar- one of the easiest strategies to firm and concrete action on branding and follow through. Initiatives and gin is taken away, then there is no compelling reason to continue produce quick transformational Zimbabwe was a great start and once processes must be managed and per- operations ― no matter the number and quality of threats from F results is developing and rolling out a a documented branding Zimbabwe formance and results reviewed peri- those in power. powerful marketing strategy, plan and strategy was in place, we could add odically. For long terms projects, it is The few remaining businesses would have no choice but to pass campaign for the country. The country, more value and refine it. not good practice to work for the final on rising production costs to consumers and this will in turn affect given what it has, is poorly marketed The end of that workshop day was output. Instead, such projects must be prices of a variety of goods and services. Basic economics demon- and grossly under promoted. the last I heard about the Brand Zimba- broken down into logical chunks and strate that fuel price increases can also stifle economic growth Zimbabwe is failing to collect hun- bwe initiative. In October 2016, I and people must produce and deliver out- through their effect on supply and demand of goods, as well as in- dreds of millions of United States dol- a colleague, marketing Professor Ear- puts to the project owners on a chunk duce uncertainty about the future. lars by not crafting a power marketing nest Kadembo, organised a marketing by chunk basis. If the government was serious about reviving the country’s ailing strategy, developing and executing an indaba in which the then Minister of This allows for quality control, economy, it would have used the so-called surplus it has been rak- effective marketing plan and provid- Tourism, Walter Mzembi, was guest project monitoring and quick deci- ing in since October last year to cushion businesses and the general ing adequate time and resources to speaker. After his presentation, I asked sions close to the time of action so that population by subsiding fuel and electricity prices until the econo- work on the plan until it starts yielding Mzembi about the Brand Zimbabwe either necessary changes are done or my has stabilised. results. Initiative. His answer was that the the project halted before time and re- But clearly, it shows that the austerity and belt-tightening mea- All the country needs is to assemble initiative had died a natural death and sources are wasted. sures are supposed to be shouldered by the lowly in society while the right marketing team and provide the government had lost about US$40 The third factor is that govern- the executive continues to live in luxury. For instance, how does it with sufficient space and resources. 000 to the consultant. According to ment must develop confidence in its There are so many marketing assets in Mzembi, the consultant failed to even own local experts, most of who are one justify Finance minister Mthuli Ncube’s decision to hike the Zimbabwe, which are, regrettably, ly- produce a document and government already competent to international Treasury budgetary allocation from $274 million to $1,478 billion? ing idle while the economy bleeds and was battling to recover its money. levels. Initiatives such as branding Couldn’t this Finance ministry supplementary budget alloca- suffocates due to lack of foreign cur- When I asked him about the way Zimbabwe requires experts who have tion have been better used to import more electricity and fuel to rency. This is humiliating for a country forward, Mzembi suggested that it intricate knowledge about Zimbabwe boost industrial production? Or better still, to procure life-saving with so much expertise. would be difficult to revive and pursue including its culture and salient fea- drugs for patients in state-owned hospitals? But then, our leaders During the government of national the initiative from within government tures. Branding, contrary to what most wouldn’t know about the dire situation in the country’s hospitals unity, the then government initiated because of “competition” among min- think, believe and do, is an inside-out and clinics as they get the best medical healthcare money can buy a branding Zimbabwe initiative. Al- istries and government institutions, job, not an outside in job. You start in foreign lands. though I believe in brands, I strategi- including the Zimbabwe Tourism branding from the inside first. Local cally would have thought the initiative Authority. He suggested outsourcing experts most likely have detailed in- would have been called a Marketing the project to local private consultants tricate knowledge and intelligence Southern Africa’s Leading Business and Financial Newspaper Zimbabwe initiative of which the and even invited the Marketing Think about Zimbabwe and its core, endur- Established 1969 branding would then become a part Tank Forum to approach government ing characteristics that define who it Publisher: Modus Media of a bigger and more strategic initia- if it was interested. A follow up by the is, the very foundations of enduring tive. The initiative was housed in the think tank drew a blank. branding. MARKETING EDITORIAL then Deputy Prime Minister Arthur I am narrating this story to pinpoint The fourth factor is ensuring plans General Manager - Marketing Editor-In-Chief & Chief Oper .zw areas where we, as Zimbabwe, must and initiatives are given sufficient at- Christopher Goko: gokoc@fingaz.co.zw Brand Executive - Advertising improve if we are to achieve our eco- tention and resources. Initiatives such Managing Editor Edwin Vengesa: ev .zw Open Forum nomic goals, including Vision 2030. as marketing and branding Zimbabwe Eric Chiriga: chirigae@fingaz.co.zw Senior Sales Executives The first thing is to ensure that strate- required detailed input and disciplined gic and technical leadership of any se- attention over reasonable period of Senior Assistant Editor Christobel Washaya: cwashay .zw with Chris Gumunyu: gumunyuc@fingaz.co.zw .zw rious national initiative is undertaken time for them to work. They cannot News Editor .zw by competent people who will deliver be subjects for single odd workshops. John Kachembere: kachemberej@fingaz.co.zw Sales Representatives - Harare Simon Bere results. Strategy is critical even in tech- They must be supported by effective Markets Editor .zw nical areas, making it necessary to en- strategic frameworks and processes Tabitha Mutenga: mutengat@fingaz.co.zw Frank Nyandoro: fny .zw sure that strategic capacity is available that include time lines and trajectories. Special Projects Editor Edreck: emudzingany .zw Mutambara’s office. I remember- be in any team even if it is mandated to I still think it is not restart the se- Kudakwashe Chideme: chidemek@fingaz.co.zw Sales Representative - Bulawayo ing part of a branding workshop at the undertake technical work. Most tech- rious work on Marketing Zimbabwe Group Digital Editor Clever Pedzisai: [email protected] Paul Nyakazeya: nyakazeyap@fingaz.co.zw Meikles Hotel with colleagues like Ni- nical people are competent in the what and to do it strategically and powerful- Brand Executive - Events gel Chanakira, Kenias Mafukidze and of things but not many are competent ly this time. I do not see and other of Companies Editor K .zw Shame Makoshori: makoshoris@fingaz.co.zw some marketing experts. The work- in the how of those things. Strategic the economic recovery efforts that can Brand Executive - Subscriptions shop was being led by a consultant ― minded people are able to work with bring relatively quick massive results Staff Writers Tatenda Taka: t .zw Omega Ukama: [email protected] I don't recall whether the consultant the technical experts and help them better than marketing Zimbabwe if it Adelaide Moyo: [email protected] Subscriptions Representatives was local or foreign. with the how and when of things, the is done in the right way. Compared to Nelson Gahadza: [email protected] Ronald Madiviko: rmadivik .zw I learnt most of my marketing by processes, methods and procedures. other initiatives like agricultural and Freedom Mashava: [email protected] Elizabeth Nyamaruze: eny .zw self-study out of interest since I be- The second thing is that when ini- manufacturing revival, the investment Production Supervisor Chief Executiv lieve in strategy and view marketing required to generate results is low. The Kudzai Rushambwa: rushambwak@fingaz.co.zw .zw tiatives have been started, they require as a strategic issue. Being in the work- only other dimensions of the economy Zimbabwe is failing to Bulawayo shop and seeing how it was evolving, I that can produce similar results are Editorial, Advertising & Circulation 1st Floor, Princess Court, had some reservations on the content, collect hundreds of mil- education and information technology 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, approach and process. I was not very “lions of United States dol- but these can also become marketing P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. Tel: +263-242-781 572 sure that what we were doing was lars by not crafting a power assets and incorporated as assets to Tel: (029)75873/75270 Website: www Distributed by: ANZ branding work the way I understand be marketed. We need a Zimbabwe marketing strategy, develop- it from a corporate view. Besides, I Marketing Strategy, its execution plan VOLUNTARY MEDIA COUNCIL OF ZIMBABWE ing and executing an effective The Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced told myself if we had marketing gurus marketing plan and providing and a disciplined execution and we are news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of in the house and they believe that this adequate time and resources to done. This can be done if we have the Zimbabwe at: was branding work, then I would flow will to do it and if we see the opportu- No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 work on the plan until it starts with the tide and make my best pos- nity for triggering more traction in our Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz yielding results.” Zimbabwe sible contribution. I reasoned then that economic progress. August 8-14 2019 Page 9 Companies&Markets The Financial Gazette IDBZ PURSUES CLIMATE CHANGE DEAL — 10 THE Infrastructure Development Bank of Zimbabwe has ta- USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) bled a plan to draft global financiers to fund climate change mitigatory and adaptation projects, the latest of a range of 0,40% 0,08% 0,40% 0,05% 0,71% such measures already underway in the country. 10,6897 12,47 65,95 12 134,90 1 527,50 Padenga eyes Old Mutual shares gold mining

Omega Ukama excite investors Senior Staff Writer ADENGA Holdings (Padenga), Zimbabwe’s Nelson Gahadza largest crocodile skin producer, says it is di- Staff Writer Pversifying into gold mining to increase revenue streams. LD Mutual Zimbabwe (Old Mutual)’s The company, which is seeking shareholder ap- B class empowerment share price on proval to acquire a majority stake in gold miner Dalla- Othe Financial Securities (Finsec) Alter- glio Investments (Dallaglio), this week said the latest native Trading Platform (ATP) has grown by development is aimed at shifting “exposure away from 723 percent from its debut price of 82 cents in reliance solely on the production of crocodilian skins”. 2016 to $6, 75 as at July 2019. “Padenga seeks to reduce this concentration risk Under its indigenisation plan four years ago, through diversification into alternative, export orient- Old Mutual issued over 83 million as B Class ed business, and has identified the gold mining sector shares to employees,11 percent to pension fund, as attractive from a long term perspective, particularly 3,5 percent to strategic partners and 2,5 percent in respect of the historic world-wide demand for gold to the Youth Empowerment Fund. and the capacity for gold mining to produce hard cur- According to Finsec’s daily updates, the life rency which is not readily available in the local Zim- assurer’s market capitalization, which was at babwe market,” the company said. $68 138 373 in 2016, is now at $560,329 mil- If approved, Padenga will acquire 9 036 shares, lion as at July, 2019. representing a 50,1 percent shareholding equity in So far in the year, $6, 75 has been the high- Dallaglio, to be settled by way of a cash injection in est share price traded in year to date while the $90,36 and about US$20 million to be paid in kind by lowest year to date price has remained at $2, 05. the delivery of mining equipment to Dallaglio. An alternative trading platform is a sys- The mining firm — incorporated in Zimbabwe in tem that provides or maintains a market place 2005 — is in the business of developing and operating or facilities for bringing together buyers and large scale commercial gold mines in the country. sellers of securities but does not set rules for Dallaglio owns Pickstone Peerless Mine near Che- subscribers or discipline or seek to control the gutu, which produces more than 60 kgs of gold per participants other than by excluding them from month. Infographic by Darius Mutamba trading. The company also owns Eureka Mine near Guruve, It is designed to broaden and deepen the which is under development with a target to eventually capital market by introducing an array of secu- recent times. A record 2,8 million Old Mutual “Macroeconomic factors like inflation, produce 140 kg of gold per month by 2020. rities that were previously excluded from for- shares were traded last month in a block trade money supply growth, low interest rates yields, The mining company’s assets have total measured mal trading platforms, according to Tafadzwa worth $12,1 million. local currency depreciation were all pointing to and indicated resource of 1,6 million ounces. Chinamo, the Securities and Exchange Com- The shares were traded at $4,35 by foreign increased demand for the stock leading to the In its 2018 financial year, Pickstone Peerless Mine mission of Zimbabwe (SECZim) chief execu- investor LHG Malta. This was after the foreign continuous growth in the stock price,” he said. recorded turnover of US$26,7 million and profit after tive. Following the gazetting of securities alter- fund had sold 17 million CBZ Holdings shares Rukarwa also noted that socio-political tax of US$2,7 million. native trading platform rules in August 2016, on the Zimbabwe Stock Exchange. events like policy announcements are very in- Padenga, which has operations in Zimbabwe and SECZim issued the first ATP license to Finsec, The deals were executed by stockbroking fluential in stock market volatility. the United States, is said to be the source of nearly 85 a subsidiary of the Escrow group. company Morgan & Co. “Given the historical surprises of fiscal and percent of the global supply of Nile crocodile skins However, the Old Mutual shares were pre- Enock Rukarwa, FBC Securities’ research monetary policy statements in our economy, used for high-end luxury fashion brands. viously limited for trading by locals only un- and investment analyst, said the dramatic rise investors have been forming expectations and In Zimbabwe, the company operates three croco- der the company’s indigenisation plan. But last to Old Mutual’s share can be attributed to the reviewing trading strategies following such an- dile breeding and production farms namely, Kariba year, the trading was liberalised to allow for- life insurance firm’s parent company Old Mu- nouncements. This development can be proved Crocodile Farm, Ume Crocodile Farm and Nyanya eigners to trade following changes in the coun- tual Plc, which has been producing good set of by spikes in our main Indices following policy Crocodile Farm. try’s indigenisation law. numbers for consecutive years thereby creating announcements,” he added Each farm has the capacity to breed close to 15 000 This has seen record trades on the ATP in and preserving value for shareholders. [email protected] hatchlings per year. [email protected] Page 10 | August 8-14 2019 The Financial Gazette Companies & Markets IDBZ pursues climate deal Shame Makoshori to broaden its source of finances to fight climate In Zimbabwe, one of the most pronounced effects of Companies Editor change. climate change has been the rapid decline of water levels “We have conceived the establishment of at Lake Kariba due to drought, which has affected power HE Infrastructure Development Bank of a climate finance facility (CFF) which will be generation in the country. Zimbabwe (IDBZ) has tabled a plan to dedicated to the financing of green and sus- The country has capacity to generate 2 200MW of Tglobal financiers to fund climate change tainable projects in Zimbabwe. The CFF will power, but due to the drop in water levels at the Kariba mitigatory and adaptation projects. provide a platform to crowd in various climate hydroelectric facility, only 800MW are being generated, The bank’s plan, which was announced last finance sources and, more essentially, private leaving a 1 400MW gap that has to be met with imports. week, follows its appointment as the national sector investment in green projects and also pro- In March, Zimbabwe was among three African coun- implementing entity for the Green Climate Fund mote impact investing,” he said. tries, including Malawi and Mozambique, which were af- (GCF), a financial mechanism under the United The effects of climate change are being felt fected by cyclone Idai, which killed scores of people and Nations that helps fund investments related to throughout the world at a much faster pace than displaced thousands. climate change mitigatory and adaptation proj- expected with prolonged droughts, extreme Experts say the possibility of more such calamities ects. temperatures, as well as severe storms that have cannot be ruled out, and facilities like CCF will be key in Once IDBZ is accredited by GCF, it will ac- aggravated food insecurity. preparing the country for future natural disasters. cess resources to bankroll projects including so- Jonathan First, Development Bank of South- In Malawi and Mozambique, authorities are looking at lar and wind power, waste management, water ern Africa lead specialist for production innova- the possibility of building stronger buildings and homes and sanitation, smart transport systems, smart tion, said climate change was hitting the poorest that withstand climate change. cities and irrigation systems. economies the hardest and there was need to Finance windows have been opened worldwide. Willing Zvirevo, IDBZ’s director for re- come up with urgent solutions. Namibia, South Africa, Rwanda and Ethiopia are source mobilisation and climate finance, said IDBZ plans to broaden its source of finances “This is not a problem for the rich countries,” among African countries that have established similar for the bank to play a significant role it needs to fight climate change. he said. projects. [email protected] James North now banking on exports Adelaide Moyo Staff Writer

AMES North, Zim- babwe’s largest pro- Vacancy Notice Jtective wear manu- facturer, says it expects • Monitor implementation of roads works by Road Authorities to ensure conformance to ApplicationsApplications are invited are invited from from suitably suitably qualified qualified and and experiencedset standards. candidates to fill the following vacant position to rake in significant experienced candidates to fill the following position • Submit monthly progress reports on key result areas to the CEO profits from exports • Maintain National Road Network database following depressed de- 1. DIRECTOR ADMINISTRATION & HR IT MANAGER• Formulate departmental Budget and monitor adherence to the approved budget. mand on the domestic • Maintain effective communication with all stakeholders and advise on quality standards market. JOB PURPOSE and proper usage of funds. PURPOSE The OFjob exists THE to provide JOB administration and human resource management services to the • Manage and coordinate stakeholder information dissemination and feedback to ensure The southern Afri- can country’s economy Sifelani Jabangwe The job organisationexists to to ensuredevelop, departments implement have adequate and material maintain and human resourcesthe company’s support Informationtheir needs are attendedCommunication to timely Technology (ICT) systems. This • Analyse of information, resources and technical requirements of stakeholders continues to face sig- includesDUTIES ANDprogramming, RESPONSIBILITIES installing and maintaining computer hardware, softwareand provides ZINARAand networks Executive with for updated ZINARA information and required formulating for effective an ICT nificant challenges including inflation — which is now strategy• Contributethat is supportive in mapping the strategic of the direction organization’s of the organisation business in line with mandatemand ate. maintenance programme execution. nearly 200 percent — and shortages of foreign currency. • Put in place a performance management system for strategy implementation and review • Create a culture of prudence and cost management in the department, thereby • Define the scope of the department in relation to human resources management, general maximizing shareholder value Sifelani Jabangwe, James North’s managing director, • Inspire good leadership values to all supervisory positions and provide exemplary said his company plans to employ aggressive marketing DUTIESadministration AND RESPONSIBILITIES and logistics support to ensure adherence to professional standards • Develop shared departmental vision and strategies in line with organisational vision and leadership strategies to lift exports buoyed by the introduction of • Initiatesstrategy Information Technology related projects and manage them until their completion and roll out. the new currency that gave the company a competitive Education, Professional Qualifications and Work Experience • Ensure the Departmental strategies are shared and understood by all staff and integrate edge. • Developsdepartmental an Informationactivities with other Communication departments Technology (ICT) framework• BSc Honoursand strategies Degree in Civil/Construction for (ICT) systems Engineering based on short and long • term DevelopZINARA a structure goals to identify to ensure the functions the of contribution the Department and of map ICT flow to charts the on achi• evementMaster’s of degree corporate in Business objectives.Administration/Leadership “This year, we are really aggressive on the export departmental core activities to ensure efficiency and accountability • At least a Diploma in Project management market, we are looking to try and roll our market share • • PreparesContribute IT policyto formulation documents of policies in relationthat willto human form resource guidelines management, in general the utilization• Must haveof ITa minimum in ZINARA of seven to to ten ensure years’ relevant proper experience, use with of 5ICTs. years at senior particularly to Zambia because we have always had de- • Monitorsadministration IT policies, and logistical procedures, support systems and controls to adhere to Generallymanagement levelAccepted in road works International implementation Standards / Good Practice. mand from that market but there were competitiveness • Monitor implementation of human resource and administration policies and standards • Recommendfor effectiveness new developments of ICT to the Board through theApplications Chief Executive including CVs Officer and certified to copiesenable of certificates it to make should informed be submitted notdecisions later issues like the stronger United States dollar that we were • on ITAnalyse current monitoring developments. reports from Administration, Logistics and Human Resources than 4:30p.m. on 07 June 2019 to: using, affecting demand,” he told The Financial Gazette. management and submit a consolidated report to the CEO for informative decision The Acting Director Administration & Human Resources “But already, we have engaged our distributors and • Maintainsmaking a reliable network to ensure that communications flowZimbabwe smoothly National Road within Administration and outside the organization without any they have given us upfront orders, which we look into 489 Runiville, Glenroy Crescent • disruptionsArticulate theto capitalensure requirements employees of the Department operate as a efficiently.contribution to the Budget manufacturing from August going forward, hoping that • Develop operational budgets and manage departmental costs Highlands, Harare • • LiaisesMonitor with expenditure relevant levels service of the Department providers to remain to withinensure the acceptable they provide variances relevant services as and when required e.g. Internet, Network etc. power does not disrupt the operations.” • to ensureCreate aproper culture of prudencecommunication and cost management within in the thedepartm organization.ent, thereby This comes after Foreign Affairs and International maximizing shareholder value CORPORATE SECRETARY Trade minister Sibusiso Moyo recently said the return to • • OverseesInspire goodthe leadershipadministration values to all supervisory of the company’s positions and provide WAN exemplary and LAN networJOB PURPOSEks to ensure the smooth flow of communications. mono-currency will spur the country’s competitiveness leadership • Works with departments to help implement internal systems to manageThe Corporate information Secretary position and plays communicationa leading role in governance as by well providing as to legal set advice Service on the export market. Education,Level Agreements Professional Qualifications within theand organizationWork Experience and with suppliers. and counsel on Board responsibilities and logistics, in addition to recording minutes and other Meanwhile, Jabangwe said his company’s output will • BSc/BA Honours in Business/ Administration/Human Resources/Social sciences documentation that meets legal requirements. It also exits to provide legal advice to ZINARA and be flat this year, but is pinning hopes on a good rainy • • Sets ICTMaster’s project degree in plans business andadministration/leadership provide feedback on progress on ICToversee projects internal in& external the departmental legal resources necessary meetings for the operations and senior of ZINARA. management season. • meetings.Professional Qualification (e.g. CIPS, IPM(Z),) “Demand has been flat because industry has not been • Must have a minimum of seven to ten years’ relevant with 5 years at senior management DUTIES AND RESPONSIBILITIES • Provideslevel guidance to the Tenders Committee on the specifications• ofProduces equipment a calendar/ and diary Softwareof meetings to tobe heldpurchase. in the year and where the meetings are operating. A lot will depend on the rainy season for the • Develops and implement policies and procedures for electronic to data be held processingannually. and computer systems operations and second half of the year because the products we manu- Applications including CVs and certified copies of certificates should be submitted not later • Liaises with the chairperson of the board for the contents of the agenda to know what facture are directly related to the rainy season. But we development to ensure proper management of ICTs and Computer systems in the organization’s departments. than 4:30p.m. on 07 June 2019 to: will be discussed in the meeting and raises notice and agenda for the meeting to be held are quite happy that we now have a softer exchange rate • TheGathers Acting Director information Administration about & Human organizational Resources information needs, project• needs,Collects reports objectives, from departments functions, and prepare features, meeting packs and and inputcirculates and packs outputat Zimbabwe National Road Administration least 7 days before the meeting making us competitive in the region,” he said. 489requirements, Runiville, Glenroy thenCrescent reviewing and analyzing systems specifications• Takes to minutes determine at all Committee whetherand Board meetings all required elements have been The company also exports to neighbouring Mozam- Highlands,included. Harare • Maintains an attendance register, and a declaration of interest register bique and Malawi as well as Kenya and Rwanda. • Circulates minutes of the Board meeting within 2 weeks after the Board meeting to Jabangwe last year pointed out that domestically, enable members to attend to matters arising the company anticipated higher orders on the back of a Education,DIRECTOR Professional TECHNICAL Qualifications and Work Experience • Communicates Board resolutions to departments affected and on action items advises JOB PURPOSE departments on issues they are meant to action positive economic growth outlook, which could now be • Degree in Computer science/Information systems/BBS and Computer• Supervises Science/BBM preparation ofand venue, Information coordination of transport, Technology accommodation, or equivalent payment of dented by a lower capacity utilisation being projected The position is responsible for planning, controlling, organizing, monitoring and evaluation of Board fees and allowances for Board meetings • Master’s degree in Business Administration/ Business Leadership is an added advantage by business. maintenance and development of road works, technically and financially to ensure stakeholder • Maintains a register of all current and expired contracts. He said James North had started refurbishing parts of • value.Certified ITIL practitioner/Project Management Professional/Pinc• e2 practitionerReviews contracts or annually any orequivalent if there are legal changes to be effected or if the contracts are coming up for a renewal. its plants and expected to spend about $60 000 to $100 • DUTIESSix years AND relevantRESPONSIBILITIES experience of which three years should be at• managementReceives detailed level instructions from the user departments for new contracts in writing 000 on the retooling, which will cover sewing machines • Ensure submission of annual road maintenance programmes by Road Authorities. and holds a meeting to discuss the requirements. and other equipment. • Compute annual funds allocation for Road Authorities to facilitate the attainment of • Carries out legal research by checking with the law on the type of contract to be drawn He also highlighted the firm had started a retooling ApplicationsZINARA’s including mandate. CVs and certified copies of certificates should beup submitted and the substance not of legallater issues than involved. 4:30p.m. on 23 August 2019 to: drive in light of the improved output. • Check and approve submitted road maintenance programmes so that Road Authorities • Draws up draft contracts where no issues have been raised with the contract and can access funds. circulates draft contract to parties involved for comments. “We produce industrial protective clothing, so as • Monitor implementation of road maintenance works against planned proposals for • Prepares final contract for signing in adequate copies and retains original copy for companies have been turning around, demand for our adherence to quality and standards and ensure efficientActing use Directorof funds. Administration &records Human and makes Resources copies for circulation to user departments and other affected products has been increasing. We are the only manufac- • Check acquittal reports for road works implemented to ensureZimbabwe adherence to Nationalstandards Road Administrationdepartment. turer of industrial raincoats. Agriculture has been grow- and quality. • Reviews and analyses and gives advice on contracts that have been submitted for • Coordinate final evaluation of road maintenance programmes and489 capture Runiville, best practise Glenroy signingCrescent and gives legal opinion on whether it should be signed or not signed. ing and the demand for our products has been growing from work emerging from stakeholders (road authorities, contractors). • Cross checks with relevant Acts and Legislation to ensure ZINARA’s compliance on all as well. Some imported products fail. Our products are • Allocate and timely disburse road maintenance funds in consultation with theHighlands, CEO. Harareissues that affect ZINARA’S operations. quality. This has helped to keep demand for our products • Researches into areas requiring legal advice and giving legal opinions. growing,” he said then. [email protected] The Financial Gazette August 8-14 2019 | Page 11 Companies & Markets Econet, Cassava top ZSE picks Adelaide Moyo which peaked at 1,044 percent (implied rate of 1: 11.44), Staff Writer prior to the exchange control directive by RBZ which im- posed a 90-day vesting period in an effort to eliminate a sec- CONET Wireless Zimbabwe (Econet) and Cassava ondary reference rate,” IH said. Smartech Zimbabwe (Cassava) offer an attractive Meanwhile, the local bourse weakened in the month of Estand-alone asset positioned to maintain a growth July, dropping 8,94 percent to close the month at a total mar- trajectory on the Zimbabwe Stock Exchange (ZSE), a local ket capitalisation of $24,53 billion. equities firm has said. The Industrial Index declined 8,65 percent to 624,41 The two stocks are relatively defensive on the local points weighed down by losses in Cassava and Econet of bourse, IH Securities (IH) said in a note. A defensive stock is 11,14 percent and 5,81 percent respectively, offsetting an one that provides a constant dividend and stable earnings re- 8,76 percent gain recorded in Delta. gardless of the state of the overall stock market or economy. The All Share Index retreated 8,61 percent to 187,12 The equities research firm noted that counters such as justments, which will naturally also affect tary reforms, in the form of RTGS dollars points while the Top 10 Index narrowed 10,77 percent to Simbisa and Seedco International provide some form of balance sheet preservation and consequent- were net buyers of equities which drove the 175,98 points. hedge through their regional diversification. ly valuation metrics,” IH said. market upwards. Turnover decreased 1,30 percent to $191 million, with It said Innscor and National Foods ― producers of sta- “Therefore, we have a strong preference Foreigners opted to either switch out of average daily trades of $8,30 million being realised in July. ples ― also remain in good standing given low grain yields for companies with the ability to defend a static repatriation queue through fungible The most significant contributions to total value traded in the 2018/19 cropping season on account of the drought. consumer share which will be a critical re- counters or buy back into the market. were Econet, Delta and Old Mutual, contributing 29,07 per- “It is not a coincidence that the afore-mentioned names covery factor when the economy eventually “Foreigners holding equities opted to cent, 19,80 percent and 9,36 percent, respectively. all hold dominant shares in their respective spaces; we be- finds equilibrium.” crystallise their positions with the market Total volume traded during the month of July declined lieve that in this environment income statements will be The firm said local institutions looking trading at historic highs, leading to an ele- 31,09 percent to 163,56 million shares. distorted by the impact of inflation and exchange rate ad- to preserve capital value, following mone- vated Old Mutual Implied Rate (OMIR), [email protected]

Muchadeyi Masunda BNC bullish on nickel prices

Omega Ukama Senior Staff Writer

INDURA Nickel Corporation (BNC) says it sees the price of nickel firming from the current levels Bof around $13 000 per tonne to over $17 000 per tonne due to an anticipated increase in demand for the base metal. This comes as the company has been forced to put its $20 million smelter upgrade on hold due to a “cash flow deficit arising mainly from the outturn on the price of nickel”, which has averaged $12 000 per tonne since the project commenced in 2015, compared to an average price of $16 000 that was forecast then. “We are expecting to see prices of between $13 000 and $14 000 this year. Next year, we expect to see prices of $14 000, maybe up to $16 000, and then we should see sustained prices above $17 000 thereafter,” Batirai Man- hando, BNC’s managing director, told analysts last week. “The main use of nickel at the moment is stainless steel, and the demand for steel is going to maintain or even improve slightly. The additional demand for nickel is going to come from the electrical vehicles, where we will have batteries, which use nickel, lithium and cop- per,” he said. “And if you look at demand and supply dynamics, de- mand is going to outstrip supply and the prices will go up,” Manhando added. During the year to March 31, 2019, the average nickel cash settlement price fell by 5,6 percent to US$12 388,34 per tonne compared to US$13 278,84 in the same period in 2018. Muchadeyi Masunda, BNC’s board chairman, said the nickel demand that was expected to come from the elec- tronic vehicle during this period did not materialise “as it was now realised that the demand had been premature”. “However, this demand is now expected to increase significantly by 2025,” Masunda said in a statement ac- companying the company’s financials. Global demand for nickel in the steel sector was also muted during the period under review, despite an in- crease in the usage of nickel, which was attributable to the production of high-grade stainless steel. Supply for nickel remained robust during the period under review as more Indonesian mills either ramped up or came into production. However, it is expected that there will be a reduction in the supply of steel as the Chinese environmental au- dits, which are currently underway, are expected to result in the closure of some nickel pig iron plants. [email protected] Page 12 | August 8-14 2019 The Financial Gazette

OK Zimbabwe: The enduring retailer

K ZIMBABWE, probably the oldest grocery re- poration in 1953. It changed its name to Pleasing set of results pelled profit margins for the period resulting in the EBIT- tailer in the country, continues to deliver value to Deltrade Limited in 1984, and subsequent- For the six months to September 30, DA margin increasing to 4.9 percent from 4.2 percent in Oshareholders, despite headwinds in the economy, ly to OK Zimbabwe in 2001. Over the 2018, the company recorded a 23 percent the previous period. Likewise, there was an increase in writes Linda Tsarwe. years, OK has evolved into a retail giant, growth in revenue to $330.1 million. On margins at the bottomline to 2.9 percent from 1.9 percent The retailer has once again made it among the top becoming a household name and creating a a like-for-like basis, revenue growth was achieved during the same period the previous year after performers, scooping the first runner up award for 2019, commanding brand in the retail sector. To 20.1 percent above the same period the net profit grew by 66 percent to $8.4 million. It is pleasing thanks to a solid earnings delivery and impressive cash- date, the company has 63 branches spread previous year. Management attributed to note that OK has managed to achieve over 27 percent flows, which have cemented it as a financially healthy across the country, where 49 are OK stores, the increase in the topline to successful compounded annual growth for net profit over the last four company for yet another year. Having been established eight are Bon Marche Stores and six are promotions as well as a greater customer years, bearing testament of why it is deserving of such an in 1942, OK was first incorporated as Springmaster Cor- OK Mart Stores. focus. Improved overheads control pro- accolade. Over the interim period to September 30, 2018, net cash from operations went up by an impressive 106 percent from the same period the previous year to $18.5 million. The growth was despite the high accumulation of stock over the period from a closing position of $46.8 million worth of stock by September 30, 2017 to $64.3 million as at September 30, 2018. Defying the odds Notwithstanding the good set of results, the period was not without headwinds. Local industry capacity utilisation remained low, and therefore the stores were still largely reliant on imports for stocking. The biggest hurdle has been the scarcity of foreign currency, which has disrupted the restocking process. Ironically, over the same period, there was Statutory Instrument 122 (SI122) of 2017 in force, which restricted the importation of selected goods to CHIEF FINANCE OFFICER promote the local industry. Despite the good intentions of the policy, one of the downsides was the failure by the lo- Insurance Sector CA Qualification cal industry to meet demand, which created stocking gaps We have been exclusively engaged by our client who is a subsidiary of a major Financial Services Group to for retailers like OK. The pitfalls of the statute resulted in government temporarily suspending some of the sections assist with the recruitment and selection of an experienced and innovative leader to fill the critical and of the statute indefinitely in October 2018, subsequently strategic role of Chief Finance Officer. The incumbent will be responsible for directing and controlling the allowing the importation of most goods. Low agricultural organisations Finance, Operational and Administrative functions and grow shareholder value through the output due to drought and rising inflation were impedi- ments to consumer spending, which in turn affected OK development, review and implementation of sound financial strategies in conformity with the and its peers in the consumer sector. organisation’s strategic plans and objectives. The position reports directly to the Managing Director and Moreover, for OK, in addition to the challenging mac- operationally to the Group Finance Director. roeconomic environment, competition intensified in the retail sector. Other players also adopted an expansion Key Job Functions: strategy to increase their geographical presence, which became a direct threat to OK. Traditional wholesalers, on To provide regular, sound and accurate financial advice to the Board, Managing Director and other the other end, started entering the retail space gunning for Management team members. the same market that OK operates in. Informal traders also Formulate and implement short and long term financial policies and plans. sprouted on the streets selling grocery products. In order to Develop, recommend and implement innovative ways to increase revenue and reduce costs in order to defend its territory, OK has dedicated approximately $38 improve viability of the organisation. million in capital expenditure from financial year 2016 to Oversee timeous and accurate financial reporting. September 30, 2018, towards opening eight new branches Develop and implement effective internal financial controls. as well as refurbishments of two stores. Another defensive strategy was to increase promotional activities to retain Ensure adequate funding for business growth. customers who have become highly price sensitive due to Develop and implement innovative strategies and plans to smooth cash flows. the tough operating environment. The promotions strategy Ensure adherence to sound Corporate Governance principles. has produced a win-win scenario, where customers ben- Coordinate year-end process, external auditors and support the Board Audit Committee. efited from the promotional activities while OK attained Oversee the Actuarial and Investment functions by reviewing reports. sales growth without eroding margins. Oversee the processes for identifying and assessing the principal risks of the business and provide Delivering shareholder value feedback to the Group Risk Department. It has now become tradition for OK shareholders to an- ticipate great returns on their investment each year. OK Take complete responsibility for the development and acceptance of challenging but realistic objectives shows a track record of delivering satisfactory shareholder and plans by immediate subordinates and help them to achieve desired results. value, with total returns averaging 89.2 percent over the Develop and maintain healthy relationships with key stakeholders locally, regionally and past four years. The trend was not broken during the re- internationally. view period when the company rewarded shareholders quite handsomely with an interim dividend of 0.35 cents Requirements of the Job: per share, being a pay-out of 49.2 percent of earnings. An- The successful candidate for this Executive position should meet the following criteria: nual dividend yield for 2018 was 2.8 percent. Adding the capital gains of 56.2 percent for the year, OK shareholders Must be a holder of a Finance/Accounting Degree. booked a total return of 59 percent, which surpassed infla- Must be a qualified Chartered Accountant (CA). tion that closed the year at 42.1 percent. The investment An MBA/MBL/MSc will be an added advantage. continues to be high yielding, and a consistent dividend At least 5 years experience in Financial Management at a Senior management level. payment has created a quasi-fixed income asset out of the Good understanding of Corporate Governance principles, regulatory, taxation and legislative issues. OK share, which provides liquidity to its investors. Bracing for the tough times ahead A team player who is able to interact confidently at Board level. Going forward, the consumers are expected to tighten Highly developed interpersonal, negotiating, organisational and communication skills. their purse strings. There has been a rapid rise in inflation Must be business minded, strategic thinker whose integrity is beyond reproach. while growth in nominal income has been lagging, causing an erosion of real disposable incomes. OK has an uphill Our client is prepared to negotiate a highly competitive remuneration package in order to attract the calibre of task of creating demand especially for product lines that Executive required for this critical role. may not be deemed as basic. Management should work their charm with customers through promotions and possi- If you wish to be considered please submit your application to [email protected] or bly widen the value product lines for the stores to remain [email protected] or alternatively visit www.proservehr.com to apply and register. affordable to consumers. Unfortunately, this may have Confidential enquiries may be directed to our Managing Consultant Emmanuel Jinda on a negative impact on margins, but it is hoped that it will +263 773 004 143 or +263 (242) 772 778/ 770 035 or to Calistas Bumhira on +263 773 280 689 retain the customer loyalty that has been established over the years. OK management has become seasoned in retail 7th Floor, Fidelity Life Tower, Raleigh Street, Harare business and such cycles are not new to their experience. The Closing Date for Applications is 11 August 2019 PROSERVE-112 There is confidence that OK will weather the storm as it has always done in the past. The Financial Gazette August 8-14 2019 | Page S1

REIZ Winter School and AGM 2019 HE Real Estate Institute of Zimbabwe of doing business in Zimbabwe – Registration (REIZ) Winter School, annual gener- of property. Tal meeting and annual dinner were held The discussions, presentations and views in- at Sabre Business World, Harare on July 5-6, dicated lack of insightful information is putting 2019. This year’s events marked the 74th anni- the real estate market at risk specifically, its in- versary of the institute in 1945. tegrity and the potential that real estate has as an Winter School is an annual event on the in- investment vehicle. stitute calendar. The platform gives real estate The property market has been in the lime- players an opportunity to congregate and put light of late for various negative reasons gener- minds their together in pursuit of ideas, innova- ally with pertinence to information asymmetry. tions and solutions that can take the sector to the Real estate professionals, investors and the next level. More than 100 real estate profession- public are deprived of important information als attended this year’s event. which would enhance their decision making and Guided by our mission which says “We ex- protect them from being fleeced. ist to enhance the provision of resources to real Real estate is a complex market in nature estate practitioners for sustainable delivery of such that the general public, investors, practi- value added services benchmarked to global tioners, regulators and policymakers require standards”, the REIZ is committed to improving insightful information to make decisions. Lack performance, transparency and standards in the Immediate past president Mike Juru handing over the presidency to Alexander Millin. of transparency in the market has for a consid- local real estate industry. Hence, the theme for erable time impacted negatively on the growth the event was “Embracing the Future through Itai Chirume of MMC Capital delivered a bating financing of terrorism under the Finan- of the industry. Transparency Models in Real Estate Practice”. presentation on the Quest for Transparency ― cial Intelligence Unit banner. There were two plenary discussions on: Minister of State for Provisional Affairs, Ha- Unpacking the Implications of SI 142 of 2019. A special guest from South Africa, Edmore Crafting A Sustainable And Workable Transpar- rare Metropolitan Province, Oliver Chidawu, Bevin Ngara of Old Mutual Property fol- Chitokomere of Burmain Real Estate, shared ency Model For the Real Estate Sector In Zim- was guest of honour at the annual dinner. lowed up with a presentation on Transparency insights on digitalisation in real estate and un- babwe chaired by N. Kuipa and on addressing Guests were welcomed by the then Institute in the real estate sector – Business, ownership derstanding the impact of the fourth industrial Real Estate Challenges In A Dynamic Econo- vice president Alexander Millin. structure, succession and international real es- revolution. my: International Best Practice Principles led To discuss the theme and other important as- tate transparency index followed by Stanlake The last presentation was from Elizabeth by M. Juru. pects relating to the subject were the following Hove, the secretary-general of REIZ who gave Nyagura from the Deeds Companies & Intellec- REIZ aims to transform the real estate in- speakers: an update on anti-money laundering and com- tual Property Office on reforms relating to ease To Page S2 Page S2 | August 8-14 2019 REIZ 2019 AGM & NEW PRESIDIUM SPECIAL FEATURE The Financial Gazette Meet the 2019 REIZ presidium of the Zimbabwe Construction Industry Council bwe Publicity Committee (2019-2020) registered estate agent, registered valuer, fellow of the Real and deputy team leader of the Doing Business in l Vice chairman ― Real Estate Institute of Estate Institute of Zimbabwe. He was overall responsible for Zimbabwe Registration of Property Technical Zimbabwe Technical Committee (2019-2020). the management of 350 000 square metres of lettable space Working Group. Past leadership on behalf of 24 landlords on 125 properties with 1 800 tenants Millin is married to Tazreen and they have two l Managing director (Dawn Property Consul- and an average income of $1,3 million per month for the last daughters Shameemah Isabel and Tamia Maleekah. tancy) (2015-2016) 12 years. l Executive director (Dawn Property Consul- He has also valued properties in excess of $1 billion in tancy) (2010-2015) value annually. He has been exposed to many disciplines in- lCouncil member ― Valuers Council (2012- cluding industry, commerce, standards, corporate governance, 2014) financial services, construction and negotiation. lPast examiner in Valuations (Real Estate In- Excellence recognition ― He is an award winner in his Alexander Millin ― President stitute of Zimbabwe) personal capacity where he has been honoured by: Managing director, Property Wise Real Estate Achievements ― Led CBRE (Now Dawn lMegafest Real Estate Person of the Year (2018) (Pvt) Ltd Property Consultancy) to become the first proper- lUnder his leadership, his organisation (Homelux Proper- ILLIN is a tried and tested real estate and ty company to attain and hold ISO certifications in ty Group) has been recognised for excellence by the following construction project management practi- quality being ISO 9001, ISO 14000 in Zimbabwe respectable institutions; Mtioner. He has gained 26 years exception- in 2003 and re-certification in 2014. lMegafest Property Management Firm of the Year (2018) al experience in the built environment. He is a reg- Work Experience ― Kashoni is a professional Innovation ― He has transformed the real estate practice, istered valuer, registered estate agent and Fellow real estate consultant with a total of 24 years’ ex- unmatched in his local market knowledge, and sustained by of the Real Estate Institute of Zimbabwe, member Brian Kashoni – Vice-president perience in the land and buildings valuation and cutting edge industry-leading information to help clients de- of the Valuers Council of Zimbabwe, member of Current leadership advisory services for balance sheet, sales /acqui- termine their strategy, multi-year plans, and budgets at disag- the Masters Panel of Valuers of the High Court of l Executive director (Homelux Property sitions, listing, commercialisation/privatisation, gregated levels. He has organised information about property Zimbabwe, member of the Project Management Group). management of property portfolios. Past examiner portfolios and specialised expertise to help the discerning cli- Institute of Zimbabwe and owner and managing di- l Vice chairman and board member of the Real in valuations (Real Estate Institute of Zimbabwe), rector of Property Wise Real Estate (Pvt) Ltd. Cur- Estate Institute of Zimbabwe (2019-2020) member of the Inaugural Valuer’s Council, a Mas- rently he is chairperson of the publicity committee l Chairman ― Real Estate Institute of Zimba- ter of the High Court of Zimbabwe panel valuer,

entele. Mike Eric Juru – REIZ immediate past president Founder and CEO of Integrated Properties. Juru is the immediate past president of the Real Estate In- stitute of Zimbabwe. He is a seasoned and experienced real estate practitioner who has been in practice since 1997 and is currently the chief executive officer at Integrated Properties, a real estate, engineering and environmental consultancy firm Wish to congratulate which serves corporates across all sectors. He is also a non-ex- ecutive director for several private, public or state-owned en- terprises, past vice-president of ZNCC and multi award win- ning decorated achiever. He started his career with CBRE (now Dawn Property Consultancy) and later moved to Beverley Building Society (now part of CBZ). He rose through the ranks to become head of properties and valuations. He left CBZ in 2009 to start In- tegrated Properties as its founding managing consultant and steered it to become the first real estate practice in Zimbabwe a successful hosting of their WINTER SCHOOL REIZ Winter School Theand members AGM of and the Real further Estate Institute congratulate of Zimbabwe, secretarytheir new general and sta wishes to congratulateleadership. the new board on their election into oce. We wish the board the best in its term of oce. and AGM 2019 From Page S1 vestment sector and raise its information, reporting and transparency standards to the level of other asset classes. Real estate investment just like any other form of in- vestment is data driven but unlike other sectors, the prop- erty market is dogged by lack of researched data. We are therefore working on providing insightful and professional information to the market and this event was the first step in that direction. Alexander Millin Brian Kashoni President Vice President Closing remarks were by Brian Kashoni, chairperson of the technical committee. The institute also had the opportunity to hold its AGM and the following took place: An extraordinary general meeting was held prior to the AGM, which was called to consider constitutional amendments which were approved and adopted by the AGM. Six new board members were elected. These are Eu- From left to right: Meeting Gomba, Pemberai Mutari, Kudakwashe Chadambuka, John Ndere, Girison Afia, Eunice Mugabe, Victor Wasara, Thabani Ncube, Stembinkosi Mbavhumana, Mike E. Juru nice Chimba-Mugabe, Kudakwashe Chadambuka, Gi- rison Afia, Stembinkosi Mbavhumana, Pemberai Mutari and Thabani Ncube. Other members of the board are Alexander Millin, Brian Kashoni, John Ndere, Victor Wasara, Meeting Gomba and Mike E. Juru. Millin was elected REIZ president and Brian Kashoni was elected vice president. The success of the winter school was a result of finan-

Stanlake M. Hove Francis Chinjekure Francis Chinjekure Ennis Shoniwa Yamurai Nyamukondiwa Zvikomborero Chitewe cial support from our partner sponsor Old Mutual Prop- Secretary General Research Officer Research Officer PA to Secretary General Examinations Clerk Messenger & Office Orderly erty, platinum sponsors Dawn Property Consultancy and Integrated Properties, silver sponsors Masholdings/Char- ter Properties and Post Properties and industry sponsors The Real Estate Institute of Zimbabwe wishes to thank the following Sponsors for making the event successful CBZ Properties, Great Zimbabwe Realtors, Guest & Tan- ner Real estate, Seef Properties and Rawson Properties.

Partner Sponsor Platinum Sponsors Industry Sponsors Silver Sponsors Financial support for student prizes was received from Perennial Real Estate, Perennial Travel, Great Zimbabwe Eastgate Complex, Harare Email: [email protected] Realtors and Rawson Properties. Tel: +263 4 798 496/7/6, Web: www.intpro.zw Special mention also goes to our members, stakehold- Cell: +263 77 3 805 000 ers and companies that managed to send representatives to attend Winter School and those who were present in spirit, their participation was appreciated. We had a great experience at Sabre Business World Sustainable Valuations Green Leasing Green Construction Management Green Urban Development Environment Impact Assessment and we are not promising anything less, so join us in Bul- awayo to celebrate our 75th anniversary next year. The Financial Gazette REIZ 2019 AGM & NEW PRESIDIUM SPECIAL FEATURE August 8-14 2019 | Page S3

The Homelux Group would like to congratulate Brian Kashoni on becoming the Real Estate Institute of Zimbabwe’s newest Vice President!

Thanks for being such a good example of what an excellent manager should be.

We are proud of you!

Alexander Millin, REIZ president Let's walk together, says REIZ CongrAtulAtions! president

FEEL truly humbled, profoundly In 1999 I was appointed principal grateful and greatly honoured to registered estate agent and managing I stand before you all as the newly director of Southgate and Bancroft elected president of the Real Estate (Pvt) Ltd, a wholly owned subsidi- Institute of Zimbabwe. ary of the Mining Industry Pension It has been a long journey. I was Fund, a position which I held for born in Zvishavane and spent most five years. of my childhood in Filabusi. It was In 2000 I was admitted as an as- there that I became a self-taught sociate of the Real Estate Institute “nature's boy”. I learnt how to of Zimbabwe in the valuation and ride donkeys, swim in rivers, climb agency divisions. When I returned to We wish to congratulate our Managing Director mountains and climb and slide down Zimbabwe in 2011, I established my Mr Alexander Millin for being elected President of the tall processed mineral ore dumps. I own practice called Property Wise tasted and ate all known traditional Real Estate (Pvt) Ltd. In 2018, I was Real Estate Institute of Zimbabwe. food and wild fruits. It was there that admitted as a fellow of the Real Es- I also learnt how to speak Isindebele. tate Institute of Zimbabwe (valua- May his untiring efforts, visionary leadership and passion for I did most of my primary school and tion and agency divisions). secondary school education in Bul- Please allow me to express my the growth and recognition of the profession of real estate in awayo. heartfelt gratitude to God who has Zimbabwe and beyond continue to inspire us all. In 1992 I moved to Harare where made this achievement possible. I I worked for a period up to 2004. would like to thank my wife Taz- After spending seven years in Bo- reen for being my soul mate, advi- tswana I returned to Zimbabwe in sor and pillar of support for the past 2011. 27 years. She has been and still is Makorokoto! Amhlophe! My professional career started in my bedrock, cornerstone and light- 1990 when I was employed as an as- house in my life. I distinctly recall sistant property manager (Residen- her sitting up late into the night as I tial Department) by Knight Frank studied for the Real Estate Institute and Rutley in Bulawayo. I later of Zimbabwe examinations. On sev- joined the Mining Industry Pension eral occasions she would fall asleep Fund as a property manager in 1992 on the sofa as I studied. I wish to and had to relocate to Harare to take thank my late father-in-law H. Kas- up the post. In 1998 I was promot- sim and my mother-in-law S Kas- ed to senior property manager after sim for allowing me to marry their being accepted as a licentiate of the youngest daughter. To my daughters Property Wise Real Estate ( Pvt)/Ltd No 7 Mitchell Court, Mitchell Road, Greendale, Harare. Contact 0774 221 454 / 0778 222 823 Real Estate of Zimbabwe in both the Shameemah and Tamia, I say this to Property Sales │ Property Management │ Property Valuations │ Facilities Management │ Project Management valuation and agency divisions. To Page S4 Page S4 | August 8-14 2019 REIZ 2019 AGM & NEW PRESIDIUM SPECIAL FEATURE The Financial Gazette Let us walk Congratulations together, REIZ president

From Page S3 workshop per month. We have a pool you, “You both have and always will of experts among our members so be a duo source of interminable inspi- why not take advantage of this and ration. You have made me proud to involve them in our training pro- be your dad. Keep up the exception- grammes. al and exemplary qualities you both Outreach programmes to primary possess.” and secondary schools, colleges and I wish to pay a special tribute to universities must be implemented as my late father Alexander after who a matter of urgency. Remote areas of I am named who was a mentor and the country should be the key target source of unparalleled learning. He areas. Let our Institute be known by taught me how to be humble and to all Zimbabweans. The Real Estate In- Alexander Millin “never look down on another human stitute of Zimbabwe is a national in- being regardless of his/her status in stitution. Therefore it should follow The Management and Sta life”. He taught me the importance that all regions in the country should of Keystone Real Estate of hard work, never allowing one- receive equal and important atten- self to tire. To my dear mother who tion. The planning of seminars and Congratulates Alexander Millin recently turned 80 years, I say “thank workshops must factor these pre-req- on being appointed you mum for making the sacrifices uisites. On a regional note, exchange and for being an ever present mother programmes which involve students the President of (REIZ) tending to all our needs and for the and members of the Real Estate In- the Real Estate Institute of Zimbabwe selfless devotion to your duties as a stitute of Zimbabwe embarking on and the New Board Members. mother and grandmother”. exchange programmes with students To the late Michael Fredrick Dee- and members of other real estate bod- gan, my boss at Knight Frank and ies in the SADC region should be put Rutley, I say “thank you sir for being in place. Congratulations! Makorokoto! Umhlope! a role model and meaningful mentor There is justification for the- es to me and giving me sound advice tablishment of a regional body rep- which I do still rely on to this day”. resenting all real estate institutions I wish to thank the outgoing pres- in the SADC region. This body will 1 Beit Avenue, Harare, Zimbabwe. ident of the Real Estate Institute of be responsible for, in part, promoting Tel: +263 772 901 883 Zimbabwe, Mr M E Juru, for his ster- the interests of players in regional ling leadership and for being a bril- real estate sectors. liant leader, I did learn much from I wish to place on record my desire him. To the outgoing board members to lobby the Government of Zimba- of REIZ I wish to thank you for being bwe for the establishment of a Na- great team players and for playing a tional Real Estate Day in Zimbabwe, key role in ensuring we accomplished which should be celebrated annually. our set objectives. This will facilitate the creation of a Leadership is not new to me. I was day where all things relating to real elected head boy of both Rangemore estate can be discussed and planned Primary School and Founders High accordingly. We cannot allow our- School. I have served as a Junior selves to be in a silo mentality mood. REAL EST ATE Councillor for the City of Bulawayo. We have to be active participants of In 1994/95 I was awarded the inaugu- the global village. We should spear- ral “Manager of the Year” trophy for head the lobbying for the establish- the Mining Industry Pension Fund. ment of an International Real Estate Good corporate governance dic- Day to be celebrated once a year tates I share my vision with my fel- throughout the world. This will bring Congratulations low board members before sharing the much needed awareness to issues same with you. However I am tempt- dealing with real estate. ed to share some snip bits of what I Allow me to make an appeal to consider to be the appropriate way to government for support and guidance proceed henceforth. The key refer- as we all embark on our journey to ence point is the constitution of the achieve our objectives and indeed Real Estate institute of Zimbabwe play our own part in ensuring Zim- followed by the five-year strategic babwe attains the status of being an plan, which together clearly articulate upper middle class economy by 2030. our vision for the next few years and We certainly call upon government beyond. We’re now in the third year for support and proffer possible solu- and I am pleased to report we have tions for challenges which may be made some noticeable achievements impacting on us all. We will certainly which include enhanced awareness, value your input. We kindly request improved communication with our that real estate practitioners be given members, direct engagement with the the opportunity to be involved in all Government of Zimbabwe and other decision making processes which re- key stakeholders and we have now quire and relate to real estate matters. Alexander Millin moved into our own offices at number I wish to conclude by thanking you President 17, Mon Repos Building at the New- all once again for your support and lands Shopping Centre, Highlands, being part of this momentous occa- Harare. sion. To my fellow board members, I The Management and Sta Going forward we must put the in- say thank you for electing me as pres- terest of members first. Members are ident. There is a tremendous amount Congratulates Alexander Millin the foundation of our Institute, with- of work to be done. Let us hold hands On His Appointment out them there is no Institute to talk and remain united as a team to ensure of. Our correspondence course needs success in whatever we do. Next year as The New President Of Real Estate Institute a revamp, which includes amongst our Institute turns 75 years. Together of Zimbabwe (REIZ) others, the updating and reproduction let us celebrate the occasion in style. of all the modules and introduction Planning the auspicious event must of new subjects. E-learning is some- start now. thing we need to embrace as a matter Allow me to request all of us to 175 Hillside Road, Hillside of urgency. “hold hands” and in synchronised The Continuous Professional De- steps move into the future knowing Tel: 0242 778673, 086 77008067 velopment (CPD) Programme must full well that our key goal is to make Email: infoperennialrealestate.co.zw be rolled out aggressively. We should REIZ not just a good, not just a great plan to have one training seminar or but an excellent institution! The Financial Gazette REIZ 2019 AGM & NEW PRESIDIUM SPECIAL FEATURE August 8-14 2019 | Page S5 Juru hands over REIZ presidency

NTERGRATED Properties founder and manag- Real Estate Capital Market to enable easier trade, own- ing director, Mike Juru’s (MJ) two-year term as ership and development of properties, which has a direct president of the Real Estate Institute of Zimba- impact on the Gross Domestic Product. I PN: What would it take to conclude the issues? bwe (REIZ) ended last month. REIZ is the country’s premier real estate professional body which seeks MJ: To conclude the issues, there will be need for to unite in one body all persons practising various joint collaborative efforts of all stakeholders in view of disciplines of the profession of real estate such as es- the mutual benefits to all. During my tenure, conferences tate agency, valuation, auctioneering and property and workshops were held to discuss matters affecting the management. Group Digital Editor Paul Nyakazeya sector, such as legislative instruments and committees (PN) spoke with Juru about the property industry, that were set up to further develop arguments, compile which has become the safest investment in the cur- presentations for onward transmission to the relevant rent unstable economic environment. He spoke about authorities. the sectors challenges, opportunities and his tenure PN: In brief, share with us some legal instruments during the two years. that relate to and affect real estate and the challenges. MJ: Real estate practice is governed by two Acts PN: Upon your election as REIZ president, you namely the Estate Agents Act and Valuers Act, which advocated for the new administration to restore fall under two different government ministries that is the property rights to enhance investment in the proper- Ministry of Justice and Ministry of Local Government ty sector. Was your call heeded? respectively. Further, instruments that govern their oper- MJ: The clear transgression of property rights to ations such as the rent regulations are split into two dif- commercial retail property owners was addressed when ferent ministries ― Ministry of Industry and Commerce vendors were removed from operating in streets and and Ministry of Local government for commercial and pavements, where they were obstructing potential shop- residential properties, respectively. Real estate deals with pers and further unfairly competing with tenants who land which is registered in the Surveyor-General’s Office had overheads in rentals and rates. and its ownership housed under Deeds Registries where PN: There was also the issue of huge variations both functions fall under two different ministries, that in valuation by your members on properties which is Ministry of Lands and Ministry of Justice. Naturally, raised questions about ethics and professionalism in priorities and areas of focus would differ from one entity the sector. What has REIZ done to address this? to the other and bureaucracy would hinder efficiencies. MJ: As the professional body, one of our key respon- PN: What would it take to change the legislation? sibilities is to develop and upskill our members as such MJ: In our current set-up within the confines of our with respect to the observed discrepancies, firstly it was constitution, it is a process to change any legislation as it observed that the inadequate and unclear instructions would have to go before Parliament. What is important, from clients resulted in different valuation figures. Cli- however, is the realisation of areas needing attention and ents would need to understand that valuation is funda- appropriate roadmap is setup and followed. mentally a purposive exercise with the insurance and PN: What's next after reaching the pinnacle of market values amongst others being different. On the your industry? same note, REIZ carried out refresher training on Inter- MJ: I am a practitioner and will always be, the new national Valuation Standards to its members. leadership requires my support which I will gladly give. Mike Juru’s two-year term as president of the Real Estate Institute of Zimba- PN: Are property prices in Zimbabwe over-priced The industry still has its own challenges and I will con- bwe ended last month. when compared to the region? tinue playing my part to preserve the integrity of the MJ: Properties are homogenous and further by their profession. There are op- nature, they are of a locational fixity and the economic portunities out there that environment has its own impact on the ultimate value still have to be explored of a property. Supply and demand factors play their part as presented by the green while the return on investment carry the day for the in- revolution and creation of vestor. a new economy, certainly, PN: What were your major successes as president real estate requires new of REIZ? thinking. Proptech is redi- MJ: I superintended over the successful setting up of recting the way real estate a strong foundation to bring and build transparency into is developed and managed, the real estate sector, I also expanded the membership the adaption would require base of the Institute and enhanced its deliverables so as a mind shift as such we to enable it to adequately address the challenges in the have to be moving in that sector. I became an advocate for the introduction of the direction.

CONGRATULATIONS

56 venth Street, P. 0. Box 546 Gweru Telephone: 0254) 2224163/4, 2222787, 2222362 Telefax: 0254-2223587 E-mail: [email protected] Website: www.trevordollar.co.zw

Management and staff of Trevor Dollar Real Estate would like to congratulate the incoming President Mr The Board, Management and Staff of PMZ congratulate Alexander Millin, the Vice Alexander Millin on being appointed the New President of President Mr Brain Kashoni Real Estate Institute of Zimbabwe [REIZ]. and Mr Victor Wasara for his reelection to the Real Estate Congratulations, Institute of Zimbabwe Board. Makorokoto, Amhlophe!!

‘The property people’ PROJECT MANAGEMENT ZIMBABWE ********************************* National Secretariat office: FOR ALL YOUR PROPERTY REQUIREMENTS Please Contact our Sales Team: NO. 8 Buckingham Rd, Eastlea, Harare. Chris Wasara 0712 422 297, Martin Muhenyeri 0772 897 677, Tel: +263 8644075061, +263 773 432 610, +263 242 776000 Ruramai Nyamuzihwa 0774 386 886, Victor Wasara 0772 350 872, and Email: [email protected] • Website: www.pmiz.org.zw Rachel Chitumbura 0772 812 241 Page S6 | August 8-14 2019 The Financial Gazette

The role of military in economic development

John Kachembere While it has been argued that econom- Governments throughout the world tion in the economic sphere is seen through participation ic development and military modernisa- have started to adapt their military strat- in the development of a country’s economic infrastruc- IMBABWE’S economic resurgence can only take tion must go hand-in-hand, it is also perti- egies to include plans for economic de- ture, and involvement in developing specific economic place if the country is secure. And if the country nent to note that modern armies no longer velopment. activities such as agriculture. Zis serious about inviting investment then we have operate in the ‘security belligerency di- This change is due to the increasing Often the requirements of the military overlap with to build and develop confidence among the investors that mension’ and there are a number of areas acceptance of the idea that development those concerned with the development of a country's in- the nation’s borders are secure and the internal security where the military can make effective brings peace and stability. frastructure. situations are under control. contribution to national development. For instance, the military's contribu- Improved roads and communications raise a coun- try’s military effectiveness as well as improving its eco- nomic potential. The truth of this is well illustrated by the case of Tur- key, where a modern highway network was developed between 1950 and 1965 primarily to deliver American weapons to the US Armed Forces. A highly significant by-product of this development was the integration of the subsistence rural economy into www.pshc.co.zw the national economy. Not only did more rural produce reach the towns, but in addition, with the increased mobility available to them, the rural peasantry became more frequent pur- chasers of urban goods, and began to make claims for the same educational and hygiene services that the Turk- ish townspeople received. In other countries such as Pakistan, road construction by the military has been planned more consciously as part of an overall development programme. Armed forces are well-equipped to contribute in the Lest We Forget... sphere of infrastructure development, as certain of their personnel are trained for military purposes in the fields of engineering and communications. A number of countries have become aware of the Our Heroes contribution the military can make in these fields, and projects that have been proposed for the military are Remembering the sons and daughters of now being planned and assessed taking into consider- ation not only their value for national defence but also Zimbabwe who gave up their lives to secure the contribution they can make to the development of the infrastructure. the freedom of others. When one moves on to examine the types of econom- ic activity to which the military has contributed, agricul- ture seems to be the field where armed forces have been Happy Heroes Day the most active. In Zimbabwe, the national defence forces have been at the forefront of boosting food security in the country through numerous agriculture ventures. For instance, the Zimbabwe Defence Forces was in- strumental in the success of Operation Maguta, a project which started in 2000 and has since been expanded to greater levels, producing substantial amounts of maize and significant wheat.

010_PSHC While the traditional purpose of the armed forces has been focused on national defence, but in contemporary international affairs offensive warfare has become in- creasingly rare and acts of aggression are illegal under international law. As a result of these trends, as well as changes in the relationship between the armed forces and society, the armed forces usually now focus on providing internal security and stability. In the past this role was often limited to responding to violent internal threats to the state or public that exceed- ed the capacity of internal security providers, for exam- ple threats from insurgencies or separatist movements, among others. Contemporary threats to internal security as well as the professionalisation of the military and its changing role in society now mean that armed forces are increas- ingly called upon in situations where the organisation, size, equipment or capabilities of the armed forces are well suited to supplement a primarily civilian operation. Secondary missions in internal security may include, for example assisting in law enforcement, such as public Growth through experience order operations, border control, drug control, crime in- vestigation, cyber operations and intelligence gathering. The defence forces may also be involved civil de- fence, including responding to national emergencies and Head Office: 9th Floor, Old Mutual Centre, natural disasters, protection tasks, for example critical, Cnr 3rd Street & Jason Moyo Ave, infrastructure, important personnel, or largescale public events and non-security assistance tasks, such as search Harare, Zimbabwe and rescue, training and monitoring, equipment and fa- 086 7700 8485 cility provision, scientific research, environmental pro- +263 242 254 255 - 9 tection. [email protected] MEMBERS OF THE PSHC GROUP In some instances the military also gets itself in- volved in development mandates, for example infra- structure and engineering projects, harvest assistance and educational programmes, among others. To Page S9 The Financial Gazette 2019 HEROES & DEFENCE FORCES SPECIAL FEATURE August 8-14 2019 | Page S7 Four decades of mixed fortunes Shame Makoshori His travel itinerary took him from Tokyo in Japan to Lima in Peru, as well as to China with very little success. T HAS been a case of mixed fortunes for Zimba- The lenders wanted Zimbabwe to repay debts, which bwe’s economy. had swelled to over US$8,7 billion by December 2015. ITwo decades of boom between 1980 and 2000 were The debt reached $18 billion at the end of 2018. followed by a difficult period between 2000 and 2008, Zimbabwe had to improve its international relations, when hyperinflation reached 500 billion percent, trim- put in place viable policies to attract fresh investment, ming GDP by half. halt human rights violations and the rule of law, guaran- A brief period of stability at dollarisation in 2009, tee property rights and restore investor confidence. which saw the country going into deflation and dou- “The closure of firms showed acceleration of the eco- ble-digit growth until 2011. nomic crisis characterised by a liquidity crunch that has This was then followed by serious turbulences from seen domestic companies failing to recapitalise to deal 2016, when United States dollar stocks plummeted, with competition from cheap imports,” said economist, forcing the country to introduce bond notes, a currency John Robertson. that has led to an inflationary resurgence. “Falling disposable incomes and failure by the fragile At independence in 1980, the annual inflation rate banking sector to support industries worsened the situa- was 5,4 percent and month on month inflation was 0,5 tion,” he said. percent. At least 1 000 companies collapsed in 2013 alone, Zimbabwe’s currency was denominated at $2, $5, throwing 9 500 workers on the streets. $10 and $20, with 95 percent of transactions using the This was too high for an economy that was battling domestic currency. The closure of firms signalled the acceleration of the economic crisis. to create new jobs. To Page S9 This contrasts sharply with notes of up to $100 tril- lion that would be introduced during hyperinflation. From 1980, the country enjoyed huge economic re- covery, riding on the First and Second Five Year Devel- opment Plans in the first 10 years, which were largely successful. The blueprints were behind a robust growth in agri- culture, education health and other sectors. We wish you In 996, the country announced the Zimbabwe Pro- gramme for Economic and Social Transformation, which was followed by the National Economic Recov- ery Programme (NERP) in 2002. This came after the Economic Structural Adjustment Programme, which were inspired by World Bank re- forms, and manifested in State failure. Real growth for 1980 to 1981 exceeded 20 percent. happy However, depressed foreign demand for the coun- try’s mineral exports and the onset of a drought reduced growth rates from 1982 to 1984. In 1985, the economy rebounded strongly due to a 30 percent jump in agricultural production. However, it slumped in 1986 to a zero-growth rate and registered negative of about minus three percent in 1987 due to a foreign exchange crisis. GDP grew by about 4,5 percent between 1980 and holidays!! 1990. However, the economy started crumbling when a bo- nus to war veterans was announced in 1997, which was equal to three percent of GDP. This was followed by the deployment of the Zim- babwe Defence Forces in the second DRC war in1998, which costs the country huge expenditures. The 2000 land reforms further affected agricultural production, the country’s main sector. This had a ripple effect on industries. Major international brands left the country, such as Starwood Hotels and Resorts, which left in March, 2006. One of the darkest moments of the firm closures was the closure in 2008 of Metallon’s fine mines in Zimba- bwe, which affected 5000 workers. The mines would later open after dollarisation in 2009. By 2014 the crisis that had roiled the markets and shuttered failing industries for over a decade had started to deteriorate again. Idle capacity in manufacturing firms had deteriorat- ed to a staggering 64 percent, from about 60 percent in 2013. The CZI’s annual manufacturing sector survey ex- posed more prospects for doom and gloom in an econ- omy that was already suffering from profligacy, corrup- tion and bad governance. About 47 percent of about 250 CEOs and CFOs sur- veyed warned of a sustained recession. A blazing liquidity situation that was worsened by an ailing banking sector, extensive company closures, rising formal unemployment estimated at about 85 per- cent, a slide in production levels, non-performing loans, power shortages and a rapidly slackening consumer pur- chasing power were now endemic negative factors on the Zimbabwean economic landscape. So steep was the decline that 54 percent of the re- spondents said manufacturing operations were bleeding, . compared to 48 percent in 2013 and 31 percent in 2012. The Board, Management and Staff of ZIMSEC join the nation in “Deindustrialisation has reached catastrophic lev- commemorating the Heroes and Defence Forces days els. The average capacity utilisation of 36,3 percent would imply a decline of 3,3 percentage points from last year’s average of 39,6 percent,” said the Confederation of Zimbabwe Industries. By 2014, at least 10 firms were closing per month, and 300 workers were losing jobs weekly, according to the Zimbabwe Congress of Trade Unions. About 60 companies collapsed between January and June 2014, reaching over 120 closures by the end of that year. Former Finance Minister, Patrick Chinamasa, ap- proached the African Development Bank, IMF and World Bank to thrash out an agreement over debt repay- ments. Page S8 | August 8-14 2019 2019 HEROES & DEFENCE FORCES SPECIAL FEATURE The Financial Gazette The ZSE’s heroic resilience Omega Ukama out of a two-year deflation at the beginning of 2017 and has risen to 176 percent for June. MID decades of Zimbabwe’s persistent currency As a consequent of the inflation, the local money mar- woes — which have left the country’s financial ket has effectively lost almost all of its functionality. Asystem in disarray — the Zimbabwe Stock Ex- “Liquidity preference for financial institutions has fall- change (ZSE) has remained steadfast as a hedge of last en drastically as banks became more liquid arising from resort, and a monument of hope. limits which were placed on withdrawals. This has seen As the nation commemorates the contributions of its he- money market rates falling to as low as three percent with roes and defence forces, to many, it is a point of reckoning, a cap of six percent per annum for placements ranging be- to consider and honour individual contributions to collec- tween 30 days and 180 days whilst no quotes are available tive progress and survival. for seven to 14 day tenures,” local wealth management And justifiably, the heroes of the liberation struggle firm, Smartvest said recently in a statement to this pub- take the choice part of the attention. lication. However, if Zimbabwe’s financial system had human The ZSE, however, remained the backbone of Zimba- consciousness, and also embarked on this exercise, there is bwe’s capital markets providing a “decent” hedge for in- no doubt that the ZSE would be put on the heroes’ pedestal vestors. for its resilience through the country’s economic struggle. The Zimbabwe Stock Exchange has remained steadfast as a hedge of last resort. Even after recent monetary reforms, which included On November 14, 1997, the Zimbabwean dollar lost the introduction in February, of an official exchange for the 72 percent in value against the U.S. dollar, and the events inflation rose from 16 percent to 231 mil- reset calmed inflation for a while but the local unit, and the more recent scrapping of the multicur- around this “black Friday” sparked inflation, which the lion percent. menace has reappeared. rency regime in favour of the Zimbabwean dollar, analysts country has not been able to shake off till this day. In 2009, the country abandoned its own The country’s inflation, which had been maintain that the ZSE remains a viable hedge. Between 1996 and July of 2008, the country’s annual currency for a multicurrency system. This subdued since dollarisation in 2009, come “We maintain that investors on the Zimbabwe capital markets should continue to seek value preservation oppor- tunities. Whilst real assets such as property and commod- ities provide a hedge against inflationary pressures, expo- sure is limited. The ZSE remains a feasible avenue,” local equities firm Morgan & Co said in note recently. With a history dating back as far as 1896, it is one of the oldest and highly diversified exchanges in Africa given listings spanning across all key sectors of the economy. The first stock exchange in Zimbabwe opened short- ly after the arrival of the Pioneer Column in Bulawayo in 1896. However, it only operated for about six years. Other stock exchanges were established in Gweru, then Gwelo and Mutare, then Umtali. The Mutare Exchange, also opened in 1896, thrived on the success of local mining, but with the realization that Vacancy Notice deposits in the area were not extensive, activity declined Applications are invited from suitably qualified and • Monitor implementation of roads works by Road Authorities to ensure conformance to and it closed in 1924. After World War II a new exchange Congratulations!set standards. was founded in Bulawayo by Alfred Mulock Bentley and experienced candidates to fill the following position • Submit monthly progress reports on key result areas to the CEO • Maintain National Road Network database dealing started in January 1946. 1. DIRECTOR ADMINISTRATION & HR • Formulate departmental Budget and monitor adherence to the approved budget. A second floor was opened in Salisbury (Harare) in • Maintain effective communication with all stakeholders and advise on quality standards December 1951 and trading between the two centers took JOB PURPOSE and proper usage of funds. place by telephone. Traders continued working by tele- Makorokoto!The job exists to provide administration and human resource management services to the • Amhlophe!Manage and coordinate stakeholder information dissemination and feedback to ensure phone until it was decided that legislation should be enact- organisation to ensure departments have adequate material and human resources support their needs are attended to timely • Analyse of information, resources and technical requirements of stakeholders ed to govern the rights and obligations of the members of DUTIES AND RESPONSIBILITIES and provides ZINARA Executive with updated information required for effective the exchange and the general investing public. • Contribute in mapping the strategic direction of the organisation in line with mandate maintenance programme execution. The Rhodesia Stock Exchange Act reached the statute • Put in place a performance management system for strategy implementation and review • Create a culture of prudence and cost management in the department, thereby book in January 1974. The members of the exchange con- • Define the scope of the department in relation to human resources management, general maximizing shareholder value tinued to trade as before and for legal reasons it became administration and logistics support to ensure adherence to professional standards • Inspire good leadership values to all supervisory positions and provide exemplary • Develop shared departmental vision and strategies in line with organisational vision and leadership necessary to create a new exchange coincidental with the strategy passing of the legislation. The exchange dates from the • Ensure the Departmental strategies are shared and understood by all staff and integrate Education, Professional Qualifications and Work Experience passing of the Act in 1974, and is operated and regulated departmental activities with other departments • BSc Honours Degree in Civil/Construction Engineering in accordance with the act and its amendments, including • Develop a structure to identify the functions of the Department and map flow charts on • Master’s degree in Business Administration/Leadership 1996's Zimbabwe Stock Exchange Act. departmental core activities to ensure efficiency and accountability • At least a Diploma in Project management • Contribute to formulation of policies in relation to human resource management, general • Must have a minimum of seven to ten years’ relevant experience, with 5 years at senior When the country achieved independence from Britain administration and logistical support management level in road works implementation in 1980, the exchange changed its name from the Rhodesia • Monitor implementation of human resource and administration policies and standards to the Zimbabwe Stock Exchange. for effectiveness Applications including CVs and certified copies of certificates should be submitted not later With the decline of the Zimbabwean economy, hyper- • Analyse monitoring reports from Administration, Logistics and Human Resources than 4:30p.m. on 07 June 2019 to: management and submit a consolidated report to the CEO for informative decision The Acting Director Administration & Human Resources inflation rendered the Zimbabwean dollar useless and the making Zimbabwe National Road Administration US-Dollar was adopted as the legal tender for trading on • Articulate the capital requirements of the Department as a contribution to the Budget 489 Runiville, Glenroy Crescent the exchange in February 2009. • Develop operational budgets and manage departmental costs Highlands, Harare As of March 2009, trade had been very thin, with very • Monitor expenditure levels of the Department to remain within the acceptable variances few foreign investors willing to risk trading on the market. • Create a culture of prudence and cost management in the department, thereby maximizing shareholder value CORPORATE SECRETARY Most stocks traded in the US-cent range, with at least 26 • Inspire good leadership values to all supervisory positions and provide exemplary JOB PURPOSE different stocks not trading at all. leadership Activity, however, picked up from around 2016 when The Corporate Secretary position plays a leading role in governance by providing legal advice the bond notes were introduced, which coincided with the and counsel on Board responsibilities and logistics, in addition to recording minutes and other Education, Professional Qualifications and Work Experience resurfacing of inflation. • BSc/BA Honours in Business/ Administration/Human Resources/Social sciences documentation that meets legal requirements. It also exits to provide legal advice to ZINARA and • Master’s degree in business administration/leadership oversee internal & external legal resources necessary for the operations of ZINARA. The local bourse’s turnover reached $1 billion in June, • Professional Qualification (e.g. CIPS, IPM(Z),) surpassing the previous annual turnover record of $926 • Must have a minimum of seven to ten years’ relevant with 5 years at senior management DUTIES AND RESPONSIBILITIES million, which was set last year. level • Produces a calendar/ diary of meetings to be held in the year and where the meetings are to be held annually. And despite all the negativity in the market, the local Applications including CVs and certified copies of certificates should be submitted not later • Liaises with the chairperson of the board for the contents of the agenda to know what bourse’s structural framework has continued to see notable than 4:30p.m. on 07 June 2019 to: will be discussed in the meeting and raises notice and agenda for the meeting to be held improvements. The Acting Director Administration & Human Resources • Collects reports from departments and prepare meeting packs and circulates packs at Peter Kadzere, the managing director at Smartvest Zimbabwe National Road Administration least 7 days before the meeting recently told this publication that the introduction of the • Takes minutes at all Committee and Board meetings 489 Runiville, Glenroy Crescent regulator has been one of the major positives in the space Highlands, Harare • Maintains an attendance register, and a declaration of interest register • Circulates minutes of the Board meeting within 2 weeks after the Board meeting to since 1980. The Board, Management & Staff of theenable membersZimbabwe to attend to matters arisingNational Road “As players in the space we have noticed that the op- DIRECTOR TECHNICALAdministration (ZINARA), join His Excellency,• Communicates Board the resolutions President to departments affected ofand on the action items advises erating framework has improved significantly since 1980. JOB PURPOSE departments on issues they are meant to action “There have been quite a number of positive develop- Republic of Zimbabwe Cde. E.D. Mnangagwa• Supervises preparation and of venue, the coordination Nation of transport, at accommodation, large payment in of The position is responsible for planning, controlling, organizing, monitoring and evaluation of Board fees and allowances for Board meetings ments such as the introduction of a regulator in form of maintenance and developmentcelebrating of road works, technically Nationaland financially to ensure Heroes stakeholder •Day Maintains & Defence a register of all current Forces and expired contracts. day. SECZ, which has brought about significant operational value. • Reviews contracts annually or if there are legal changes to be effected or if the contracts improvements,” Kadzere said. are coming up for a renewal. In 2008, the Securities and Exchange Commission of DUTIES AND RESPONSIBILITIES • Receives detailed instructions from the user departments for new contracts in writing Zimbabwe (SECZIM) was established through the enact- • Ensure submission of annual road maintenance programmes by Road Authorities. and holds a meeting to discuss the requirements. • ComputeWe annual remember funds allocation for Road the Authorities gallantry to facilitate the attainment and of patriotism• Carries out legal of research all by Zimbabweanschecking with the law on the type of contractwho to be drawn ment of the Securities Act. ZINARA’s mandate. up and the substance of legal issues involved. He said other improvements included changes made on • Checkcommitted and approve submitted road their maintenance lives programmes to so that our Road Authorities people’s • Drawsliberty, up draft contracts welfare where no issues and have been raisedwaged with the contract a and the ZSE. can access funds. circulates draft contract to parties involved for comments. “There have been a number of improvements, even • Monitor implementation of road maintenance workssteadfast against planned proposals campaign for • Preparesfor freedom.final contract for signing in adequate copies and retains original copy for adherence to quality and standards and ensure efficient use of funds. records and makes copies for circulation to user departments and other affected with the stock exchange, we used to have traders sitting in • Check acquittal reports for road works implemented to ensure adherence to standards department. a room but now there is electronic trading. We also used to and quality. Visit us on www.zinara.co.zw• Reviews and analyses and gives advice on contracts that have been submitted for have share certificates that were not very easy to deal with • Coordinate final evaluation of road maintenance programmes and capture best practise signing and gives legal opinion on whether it should be signed or not signed. but now the process is electronic,” he said. Email us on [email protected] ● Call• usCross on checks with(0242) relevant Acts 442711-3/442783 and Legislation to ensure ZINARA’s compliance on all from work emerging from stakeholders (road authorities, contractors). During the period, SECZIM also commissioned an • Allocate and timely disburse road maintenance funds in consultation with the CEO. issues that affect ZINARA’S operations. ZINARA, DRIVEN TO MAKE• Researches YOU into DRIVE areas requiring legalWELL advice and giving legal opinions. alternative securities exchange, the Financial Securities Exchange as well as the introduction in 2018 of a mobile trading platform, C-Trade. The Financial Gazette 2019 HEROES & DEFENCE FORCES SPECIAL FEATURE August 8-14 2019 | Page S9 Four decades of mixed fortunes

From Page S7 minority in the ruling party and there- In total, 4 600 firms closed between fore precarious. Non-existent growth, 2011 and 2013, throwing over 55 000 widening disparity between the rich and workers onto the streets. the poor, rising unemployment especial- After hyperinflation, deflation piled ly among the young and worst of all no pressure on companies that continued to common vision of where they are going. report a slump in earnings. We all know what the adage means ‘the The crisis in industries confirmed pre- bigger, the further and faster they fall’. dictions by CZI that there would be no “Poverty, an ever-present aspect of growth in Zimbabwe’s economy from life in rural Zimbabwe is now even more 2009 until 2020. stark and is deepening so fast that people Real economic growth would only be are abandoning their homes and emigrat- achieved in 2020 when Zimbabwe’s in- ing – either to more hospitable regions dustries were projected to start surpass- or to other countries. Mass migration is ing crisis point production levels, the CZI a continuing feature of life here – per- TIMB join the Nation had said in 2010. haps not driven by political violence but “Full recovery, a return to the peak simply survival. We are not short of chal- in celebrating Heroes’ & Defence Forces Day. real per capita income levels achieved in lenges and my problem is maintaining 1991, would take about 12 years, assum- perspective.” ing uninterrupted growth of five percent “When I feel down about things here We wish you Happy Holidays. annually, from 2009 to 2020,” said CZI. – the lack of urgency in implementing the Between 2000 and December 2007, obvious solutions to problems, the lack the national economy contracted by 50 of concern about plummeting living stan- percent and there were persistent shortag- dards for ordinary people, the near total Contact us on telephone numbers 0772145166-9 or 025-3439 or 067-24268/29246 es of hard currency, fuel, medicine, and lack of employment opportunities. Our or 0277-2700 or 064-7280 or 0271-6772 or food. economy defies analysis; I laugh when I Toll Free numbers 08006003 / 0731999999 / 0712832804 GDP per capita dropped by 40 percent, read the experts trying to understand how agricultural output dropped by 51 percent we survive.” or Email [email protected] or visit our website www.timb.co.zw and industrial production dropped by 47 “There are no rational explanations, or our Facebook page on www.facebook.com/timbzim percent. less than 10 percent of our population is Today, Zimbabwe’s economy has re- in paid employment, we import more than lapsed again, with high inflation, foreign we export but never build external debt, Icon of excellence in the production and marketing currency shortages, firm closures and we run a fiscal deficit of 40 percent of all high unemployment among the draw- State expenditure, creating in the process backs. a mountain of domestic debt almost equal Economist, Eddie Cross blamed divi- to our GDP and the new Minister slaps sion on the political front, for the crisis. a transaction tax on us and tightens the “A political scene that is deeply divid- controls on all State expenditure and we ed and national leadership that is in the are in surplus in six weeks,” he says.

NOTICE TO ALL OCCUPANTS OF COUNCIL RENTED OUR ACCOMODATION HEROES AND(HOUSES HEROINES OR FLATS) City of Harare hereby notifies all its valued tenants currently occupying council rented houses/flats that the City is migrating to a new Lease Management System in line with the ease of doing Business Mantra. Our valued clients are therefore requested to visit the relevant City of Harare District Offices to register and or to update their details. Clients are requested The military is also involved in development mandates such as infrastructure to bring copies of their current lease agreement/allocation letters, national projects. identification card or valid passport as well as lease addendums where appropriate, to facilitate the registration into the new system. Those that are illegally occupying the same (subtenants) should also come forward to be The role of military in considered for regularization. All accounts in arrears should be settled when updating or regularizing each economic development respective status. From Page S6 risks of misuse or abuse of power, includ- Noncompliance with the contents of this notice shall be deemed as lack of The armed forces are also increas- ing for example a militarisation of law interest. Thereafter, those with expired lease, not registered and those whose ingly involved in international security, enforcement, inappropriate application for example, in peacekeeping and peace of military force, inappropriate influence accounts are in arrears or have not been regularized will have their leases support missions, and in international re- in political matters, imbalances of public terminated without further notice. Evictions from such properties will follow sponses to transnational security threats funding between civilian and military such as arms proliferation, terrorism and security; and detrimental effects on mil- thereafter with the resultant costs of eviction and recovery of rent arrears being organised crime, among others. itary preparedness for primary national borne by the defaulting occupants. Council will go ahead and allocate the New roles and responsibilities cre- defence missions. property to applicants seeking accommodation. ate opportunities for the armed forces Military analysts assert that the chal- to prove their relevance while extending lenges and potential risks associated with Submission of Regularization / updated details should be done by their competencies. the changing roles of the armed forces WE REMEMBER AND CHERISH YOUR SACRIFICES However, new roles in internal and in many countries underline the need for 31/08/2019 international security also create new good security sector governance. They ar- demands on the armed forces for which gue that good security sector governance they may not necessarily be adequately ensures the armed forces can perform ef- prepared. fectively and accountably within a frame- At the same time, new internal and in- work of democratic civilian control, rule ternational security roles also create new of law and respect for human rights. Page S10 | August 8-14 2019 2019 HEROES & DEFENCE FORCES DAYS SPECIAL FEATURE The Financial Gazette Has Zim’s land question been solved? Tabitha Mutenga ment expired. Despite the successes noted by the Agriculture Sector HE overarching objective of the three Survey, by 1990 government had not reached half its target phases of the land and agrarian reforms in for several reasons. These included the “willing buyer, seller TZimbabwe since 1980 was to improve the agreement”, lack of funds and capital to buy the land and de- welfare of ordinary Zimbabweans and resolve the velop it for resettlement, corruption within government and century-long land dispute that culminated in the general bureaucracy. first and second Chimurenga war. By passing the Land Acquisition Act in 1992, which was The land question in Zimbabwe is the physical supposed to speed up the land reform process through land manifestation of a long history of white colonial designation and compulsory acquisition, government came rule in Zimbabwe; however the reforms triggered up with a new and revised land reform policy after 1990. This a range of internal and external forces that placed marked the second phase of the land and agrarian reforms. agriculture in a quandary. This policy allowed government to acquire, for compen- Zimbabwe has undergone three distinct phases sation, land that it deemed unproductive. Studies conducted of agrarian reforms since independence, particu- by the World Bank earlier showed that large-scale commer- larly with reference to the reform of the agricul- cial farmers were utilising less than half of the 11 million tural policy. hectares of land they owned. “The first phase, which was characterised by “The second phase of agrarian reforms witnessed the widespread state involvement, entailed the pro- withdrawal of state support from agriculture, resulting in motion of a bimodal structure of agriculture and liberalisation and deregulation of the economy during the the revitalisation of the smallholder sector be- economic structural adjustment programme (ESAP) from tween 1980 and 1990. The heightened state sup- 1991 up to 2000. port to the smallholder sector culminated in the The Agriculture Sector Survey was commis- At independence, government had made a “By the year 2000, following the redistribution of about green revolution of the 1980s,” the 2018 Agricul- sioned by The Financial Gazette in partnership commitment to resettle 162 000 farmers by 1990 3,5 million ha since 1980, Zimbabwe’s agriculture was char- ture Sector Survey said. with the Zimbabwe Agricultural Society. when the “willing buyer, willing seller” agree- acterised by a dualistic structure ― a low-input-low-output smallholder sector comprising mainly black indigenous farmers and high-input-high-output large scale commercial farmers (LSCF) sector comprising mainly white farmers.” Out of Zimbabwe’s 12 million people in 1997, one mil- lion black families were still living in overcrowded commu- nal lands on an average of three hectares per family. This phase of the reform had failed as well. Way forward, government convened the Land Reform Donor Conference in Harare in 1998, planning the third phase of the land acquisition process. Government estimated that it would need US$1,1 billion for the land acquisition, development, infrastructure and services such as roads, schools, clinics and farming implements. Financial loans to finance the new farmers were also re- quired from banks, but as is the case today; banks were not willing to finance farmers without collateral. Government planned to compulsorily purchase over five years, five mil- lion hectares from the 11 million hectares owned by black and white commercial farmers, parastatals, corporations and multinational companies. Again the process was slow, as a result, although highly politicising the situation, in 2000, led by the war veterans of the Chimurenga war, landless blacks began to invade farms and seize white owned land. The politicised process saw the invasion of over 1 000 farms by war veterans. Of the 300 000 farm workers living and working on the farms, 150 000 lost not only their jobs, but homesteads in these invasions. “The third phase, dubbed the Fast-Track Land Reform Programme (FTLRP), was characterised by the abandon- ment of market-based approaches to land reform in favour of revolutionary approaches and fast-tracking land distribution, witnessed the reinstatement of state controls and pronounced involvement of the central government in agriculture. “During the FTLRP, over 10 million hectares of land were acquired and redistributed to a broad range of beneficia- ries including landless peasants, war veterans, middle-class urbanites and farm workers,” the survey said. Of the three main phases of agrarian reforms in Zimba- bwe, the FTLRP is the most prominent as it had wide and varied consequences on the performance of agricultural pro- duction and the whole spectrum of value chains. The FTLRP entailed the redistribution of land from the minority white large scale farmers to mostly small and medi- um scale farms and also the introduction of new state based tenure regimes. “Thus, the FTLRP has led to a significant reconfiguration of the agrarian landscape. Prior to the FTLRP, the large scale commercial farming sector comprised of about 4 500 farm owners and around 6 000 farms but these had been decimat- ed to around 300 by 2010. The area covered by white-owned large scale commercial farms has decreased drastically from over 15 million hectares in 1980 to just around 3,4 million ha in 2010 following the FTLRP.” To legalise the whole process, government, in 2002 passed the Land Acquisition Amendment Act but since then, the country has witnessed massive decline in agricultural production since the turn of the new millennium. Zimbabwe, which used to be bread basket of Southern Africa became a net importer of various agricultural produce which, inter alia, include wheat, maize, soya bean, fruits, vegetables, meat and eggs, among others. With efforts from government through contract growing and Command Agriculture, Zimbabwe has witnessed a re- bound in the agricultural sector, particularly in the areas of tobacco and maize to some extent although there are chal- lenges emanating from the El Nino-induced drought during the 20118/19 season. The rebound of these major crops especially during the 2016/2017 season was due to good rainfall coupled with improved financing under Command Agriculture which im- proved input access and tillage services. “Even though Command Agriculture improved financing for farmers, access to finance, particularly by smallholder farmers, however, remains a major blockage to agricultural performance. A robust production and productivity enhance- ment programme driven by the government targeting low yielding small holder farmers will go a long way in securing the nation’s food security while at the same time increasing small holder farmer earnings since they will be able to pro- duce a surplus,” the 2018 Agriculture Sector Survey said. The Financial Gazette August 8-14 2019 | Page S11 Super Brand 2019 Profiling Special Feature What is a Superbrand? HE Superbrand concept is an international con- •Provides a competitive edge over •Platform for them to contribute their Sponsors cept that has been adopted in Zimbabwe since competitors. opinion and views •Visibility to audience T2009. It is currently running in over 80 countries Customers •Assist in building confidence during •Brand association with a highly perceived and em including all key global markets. The concept aims to •Seal of assurance that the brand the purchasing process braced national concept. identify brands that are performing above others within meets their expectation •Demystifies negative convictions the market. Superbrand identifies and pays tribute to exception- al brands by recognising, rewarding, and reinforcing them. For consumers, the Superbrand, aims at giving ordinary customers an insight into the significant brands that impact on their lives. By definition, a Superbrand is a brand that has estab- lished the finest reputation in its field. It offers custom- ers significant emotional or tangible advantages over its competitors, which (consciously or sub-consciously) customers want and recognise. The benefits of the Superbrand status are that it strengthens a brand’s position, adds prestige, spotlights the brand in a competitive market and positions the brand as a success model. There are key factors that ensure the Superbrand maintains its consistent and strong reputation in Zim- babwe and across the world. The first is the Superbrand policy, which does not allow brands that would not have been selected by the screening process to gain the Su- perbrand status. The second feature is the strong selec- tion criterion that it follows in every market it operates in, including Zimbabwe. The Superbrand acknowledges the fact that for a brand to be deemed a Superbrand, it requires the consis- tent management of the company’s values, beliefs and product quality-not just at the factory or head office-but wherever the brand touches a consumer. Strong brands share common traits that are as fol- lows: •They deliver the inherent value that consumer’s de sire and expect from them, to fulfill their on-going needs. •They have positive customer relationships and ex periences, nurtured and grown from consistent and effective marketing effort and investment. •They greatly contribute to establish the desired per ception and brand qualities over time. •They are consistent in delivery of their promise. Benefits of Superbrand Brand custodian/company •Sectorial reports-heavily discounted research ser vices •Brand visibility •Negotiated advertising rates from print and elec tronic media •Increased brand trust due to the Superbrand status or Top 200 brands seal •Recognition of brand •Insight into the customer trends and buyer be haviour. The brand •Obtains seal of approval from the direct consumers/ market •Confirmation of perceived quality and meeting cus tomer expectation •Demystifies doubts and negative convictions

Superbrands have positive customer relationships and experiences, nurtured and grown from consistent and effective marketing and investment. Page S12 | August 8-14 2019 SUPERBRANDS PROFILING SPECIAL FEATURE The Financial Gazette Delta gives back to the community

ELTA Corporation (Delta) has taken an initiative fited from the programme over the years “As was the case on this project, Delta provides to uplift the Chihambakwe community as it posi- amounting to US$1,5 million investment. non-local resources required for construction of these Dtions education as one of its strategic focus areas “We have currently a total of 88 stu- blocks and partners the community who supply locally in communities where it does business. dents benefiting from the programme available resources and labour. Delta also paid for the The country’s largest beverages manufacturer, last from A-level up to university this year furnishing required for each classroom,” he said. week unveiled two classroom blocks with two fully and these students have been selected He said Delta has worked closely with the Ministry furnished classrooms each and a five-hole toilet block with the help of the Ministry of Primary of Education in delivering the project. worth $600 000. and Secondary Education,” Dube said. “We wish to express our appreciation for the role that Delta has been involved in assisting schools in build- “Our schools programme is also com- the office of the PED, EO Planning, EO Buildings and ing standard classroom blocks as a means of enhancing plimented by our Delta Technical In- the District Schools Inspector played in overseeing this capacity for less privileged primary schools for almost stitute (DTI) that trains artisans for the project. We are mindful of the attention to detail and at 20 years now. group from A-level students. The DTI has times sacrifice that goes into monitoring these projects,” Canaan Dube, Delta chairman said Chihambakwe seen over 1,500 artisans over the years he said. Primary School counts as one of the schools in Zimba- graduate, and these have been absorbed Dube said the community and school administra- bwe to benefit from this programme in the past 20 years. in various jobs within the company.” tion together with the School Development Committee “Delta aspires for a Better World by contributing to Dube said Mandel Training Centre, (SDA) coordinated resources and manpower to ensure making a difference in the communities that we operate another division of the business, focuses the classroom blocks and sanitary facility stand as they in,” he said. on imparting managerial skills to gradu- do. Delta runs a vibrant education assistance programme ate trainees and other employees through “It therefore, gives us much joy today to officially which also includes school bursaries which commands its extended programmes, the Graduate handover these classrooms and toilet block. It is a tan- close to US$100 000 annually. Development and Supervisory Develop- gible reflection of the passion and team work that was To date 15 schools and over 700 students have bene- Delta chairman Canaan Dube ment Programmes. invested in bringing the project to fruition. Thank you for your diligence in dedicating your time and resources to improving the school that serves your community,” he said. He encouraged pupils to take the investment as a pil- lar of inspiration. “The value of the resources and effort invested in this building should challenge you to work hard to improve yourselves academically so that in turn you may be able to further develop this school for those that come after you,” Dube said. Zimnat helps Epworth school to improve its sanitation IMNAT, one of the country’s leading insurance and financial services groups, last week handed over Zan ablution block for girls to Chizungu Primary School in Epworth. Zimnat undertook the construction of the ablution block in partnership with Fund a Child’s Education Zim- babwe (FACEZ), a non-profit making organisation that assists marginalised and underprivileged children. The ablution block is meant to improve the children’s learning environment through the development of healthy and hygienic sanitation facilities. Prior to the construction of this ablution block, there were just two regular toilets for staff and two blocks of pit latrines, one for boys and the other for girls. Some of the pit latrines were constructed by the children themselves. “Modern ablution facilities are important to improve the children’s environment and minimise the likelihood of infectious diseases, some of which, such as cholera and dysentery, are linked to poor sanitation,” said Mustafa Sachak Zimnat group chief executive. “With more than 2 500 children enrolled at Chizungu Primary School, the importance of adequate ablution fa- cilities is obvious. Zimnat decided, therefore, to assist the community and school in building an ablution block by financing its construction,” he said. With such a large number of children enrolled, Chizu- ngu Primary School has a hot seating schooling pro- gramme and conducts lessons outdoors as well as in in- door classrooms. According to FACEZ, more than 700 of the pupils struggle to pay school fees. “This reflects the dire needs of the community and how the toilet block comes as much needed relief,” Sachak said. Zimnat staff, management and executives helped out with finishing touches such as clearing rubble, painting and cleaning the area. “We hope our effort goes a long way in making your lives better,” Sachak said, as he cut the ribbon at the han- dover ceremony. The headmistress of the school, Nongwana, received the block on behalf of the community. “This initiative definitely goes a long way in making our lives better. We are grateful that Zimnat funded the block for our girls, despite the tough economic environ- ment in our country, and we hope they will continue to do such great initiatives in the community,” she said. Zimnat is a diversified financial services group made up of four business units, namely Zimnat General Insur- ance, Zimnat Life Assurance, Zimnat Financial Services and Zimnat Asset Management. It is associated with San- lam, the largest non-banking financial services group on the continent. The Financial Gazette SUPERBRANDS PROFILING SPECIAL FEATURE August 8-14 2019 | Page S13 Zimbabwe’s 2019 Top 200 Brands 1 Adam Bede 102 Moonlight Funeral 126 Pfuko 152 Silo 175 The Sunday Mail 2 Ad-Life Assurance & Services 127 POSB 153 Simbisa Brands 176 TM Pick n Pay 3 Afdis 103 Nandos 128 Power fm 154 Softex 177 Topics 4 Africom 104 Nash Paints 129 Power Sales 155 Spar 178 Total Zimbabwe 5 Agribank 105 National Foods 130 PPC 156 Spuds 179 Toyota Zimbabwe 6 Astra Paints 106 Nedbank 131 Probrands 157 Stanbic Bank 180 Transerv 7 AVIS 107 Nestle 132 Probrands Rice 158 Standard Chartered 181 Trek Petroleum 8 Bakers Inn 108 Netone 133 Profeeds Bank 182 Truworths 9 Bally House 109 Newsday 134 Proton 159 Star fm 183 Turnall Holdings 10 Banc ABC 110 Ngwerewere 135 PSMAS 160 Steri Milk 184 Unilever 11 Bata 111 Nicoz Diamond 136 Puma 161 Steward Bank 185 Vaseline 12 Beta Holdings 112 Nissan Clover 137 Puredrop Cooking Oil 162 Stork Margarine 186 VIVON 13 Bon Marche Leaf Motors 138 Quick brew 163 Sun Jam 187 ZB Bank 14 Bonaqua 113 NMB Bank 139 Radio Zimbabwe 164 Sunlight Washing 188 ZBC TV 15 Boom 114 Novatek 140 Rainbow Towers Powder 189 ZESA 16 Buttercup Margarine 115 Nyaradzo Funeral 141 Red Seal Rice 165 Surf 190 ZETDC 17 CABS Services 142 Red seal Roller Meal 166 Swift 191 Zi fm 18 Cairns 116 Nyaradzo Group 143 Ricoffy 167 Tanganda 192 Zimbabwe Power 19 Camphor care 117 OK Zimbabwe 144 Roil Cooking Oil 168 Tanganda tea Company 20 Cascade 118 Old Mutual 145 Royco 169 Teechers 193 Zimgold Cooking Oil 21 Castrol 119 Olivine Cooking Oil 146 Safeguard 170 Telecash 194 Zimnat 22 CBZ Bank 120 Omo 147 Samsung 171 Telecel 195 Zimplats 23 Champions Insurance 121 One Money 148 Schweppes Holdings 172 Telone 196 Zimpost 24 Chicken Inn 122 Pacific Africa Limited 173 Tendo Electronics & 197 Zimswitch 25 Chicken Slice 123 Pannar Seed 149 Securico Power Engineering 198 ZLG 26 Chimombe 124 Pearlenta 150 Seed Co Zimbabwe (PVT) Ltd 199 ZOL Zimbabwe 27 Chloride Zimbabwe 125 Pepsi 151 Shumba Maheu 174 The Herald 200 Zuva Petroleum 28 Choppies 29 Cimas 30 Clere The Financial Gazette @FingazLive 31 Coca Cola 32 Colgate 33 Cresta hotel 34 Croco Motors 35 Daily News 36 Dairiboard 37 Delta 38 Dendairy 39 Dendairy Milk 40 DHL 41 D'lite Cooking Oil Develop financially 42 Domestos 43 Doves 44 Dstv 45 Dulux Paints literate business leaders 46 DuPont Pioneer 47 Eat n lick 48 Ecobank 49 EcoCash 50 Econet 51 Ecosure 52 Elegance 53 Engen 54 Europcar 55 Everest 56 Eversharp 57 Exide Express 58 Fanta 59 Farai 60 Fawcetts 61 FBC Bank 62 Fedex 63 Feedmix 64 Fidelity Life Assurance of Zimbabwe 65 First Capital Bank 66 First Mutual Health 67 First Mutual Life 68 Food World 69 Freight World 70 Freshpak Rooibos tea 71 Geisha 72 Gloria 73 Gtel 74 Happy Sky 75 H-Metro 76 Holiday Inn 77 Huawei 78 Huletts 79 Hwange Colliery 80 Impala Car Rental Subscribe for your former 81 Irvines 82 Jade 83 Jet & your child’s school 84 Kefalos 85 Kefalos Milk 86 KFC Contact our subscriptions team on: 87 Kwese 88 Lacto [email protected] 89 Lafarge 90 Life buoy 91 Liquid telecoms 92 Lobels Subscribe Now 93 Lux 94 Lyons Quench 95 Madison 96 Mahatma Rice 97 Mazoe 98 Meikels hotel 99 Mimosa 100 Minute Maid 101 Mirinda Page S14 | August 8-14 2019 The Financial Gazette

‘Let’s celebrate, honour success stories’

OMEN in business were recently challenged in business were recently honoured by They walked away with trophies and chief executive Dr Smelly Dube urged businesses to to be smart and innovative in their operations Megafest Holdings at a glamorous cere- shields for their efforts. continuing soldiering on despite the difficult operating Wto remain afloat, relevant and contribute to the mony held at Cresta Lodge in Harare. Speaking at the 2019 Megafest Wom- environment. country’s economic recovery and growth. The Megafest Women’s Awards saw en’s Awards held under the theme: Think, “The business environment is difficult and challeng- Zimbabwe’s operating environment has remained various women being recognised for their Fast, Think Smart, Think Destructive, ing. It is characterised by debts, limited access to lines unstable and difficult for most business, but women resilience and innovativeness. guest of honour, River Valley Properties of credit and low production across the entire economy. However, there are some success stories in this difficult operating environment. Dube said the country’s operating environment re- quired business to think, fast and think fast in order to remain viable. “For us to do business in this environment we need to think fast, the conditions are such that we need to think fast in order to remain viable and when we think de- structive we come up with strategies that ensures con- tinuity. “The theme captures what we all need to do in or- der to revive our businesses, our industry and building our nation Zimbabwe. In any market economy, business plays a pivotal role and pushes us all to look for new opportunities,” Dube said. “Despite the challenges we celebrate and honour the success stories.” The awards recognise high standards, service excel- lence and development within the Zimbabwean econo- my. These awards are very important to us as they are meant to recognise and honour luminaries of the Zim- babwean industry as a whole, for their outstanding con- tribution, exceptional efforts and achievements in their respective fields. “We believe the awards also encourage healthy com- petition among the Zimbabwean business people and players with the aim of growth within the Zimbabwean economy. We are also taking this opportunity to acknowledge the services and duties carried out by the organisations and individuals in the industry as a whole.” Founder of the awards, Tafadzwa Matsika told The Financial Gazette in an interview that the awards were built on the culture of celebrating achievements which would in turn foster productivity. “We are here as cheerleaders because in Africa we do not recognise the work that others are doing. We have hosted thousands of business executives in the past years and have become a leader in this space,” said Matsika. Awards benefits The Megafest Business Awards are an opportunity to Here’s to more shine and demonstrate that you are an outstanding Zim- babwean business. The Megafest Business Awards connect the nations’ Happiness business leaders through its annual ceremony and year- round thought leadership programme to celebrate enter- Megafest Women’s Awards 2019 prise excellence. To Page S15 Outstanding Director of the Year

EY would like to congratulate Happiness Vundla on winning the Megafest Women’s Awards 2019 Outstanding Director of the Year Platinum Award. You have been recognised for being a disruptive and relevant business leader. We are proud to celebrate your success.

Congratulations on this illustrious attainment

Guest of honour Dr Smelly Dube The Financial Gazette 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE August 8-14 2019 | Page S15

Megafest Holdings CEO Tafadzwa Matsika Dr Smelly Dube (left) with Mercy Matsika. AFM Zimbabwe president Amon Madawo. welcoming guests. ‘Let’s celebrate, honour success stories’

From Page S14 •The award is a great opportunity to raise your profile within the management community, helping to accelerate your management career as well as gaining recognition and acknowledgment for your skills. •It’s a great achievement, conferring tremendous pres- tige on the individual nominated as well as their company. •Taking part also offers a springboard to career progres- K OF sion. AN Z •This competition differs from other industry awards as B IM it is designed and judged by the people who matter – the E B V customers. A R •Creates a unique opportunity to challenge existing B

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stereotypes, understand emerging trends and add value to W

S organisations aiming to commercialise and apply new and E

innovative concepts. E R

•Crucial in unveiling the perception of the market con- cerning your organisation. •Disseminating information about your company to var- ious stakeholders and is also a very effective promotional tool. •It is a continuous process that seeks to enhance personal and company image as it moves into the future. •Reassurance and reinforcement to stakeholders that they are dealing with a strong recognised up market company. •Attracts, retains and enhances a productive workforce. Everybody wants to be associated with the best. The broad criterion for selection is as follows: The person should have made a significant contribution to their company and industry as a whole in Zimbabwe. The person should be making a continuous, noteworthy contribution in the search for management excellence or the person should have been involved in a once-off event which would have brought long-term benefits to the nation and should be held up as an example and inspiration for others to emulate. The vision is to recognise high standards, service excel- lence and development within the Zimbabwean economy. These awards are very important to us as they are meant to recognise and honour luminaries of the Zimbabwean in- dustry as a whole, for their outstanding contribution, excep- tional efforts and achievements in their respective fields. “We believe the awards also encourage healthy compe- tition among the Zimbabwean business people and players with the aim of growth within the Zimbabwean economy. We are also taking this opportunity to acknowledge the services and duties carried out by the organisations and indi- viduals in the industry as a whole.” There is no doubt that over the years, competition stim- ulated by the Megafest awards has strengthened profession- al business management and upgrading of services in the whole country, as individuals and companies try to outwit each other. CONGRATULATIONS The Megafest Business Awards connect the nations’ The Board of Directors, Executive Committee, Senior Management and business leaders through its annual ceremony and year- round thought leadership programme to celebrate enterprise Sta of the Reserve Bank of Zimbabwe (RBZ) heartily congratulate excellence. Deputy Governor Dr Jesimen T Chipika the MEGAFEST Outstanding Any company in Zimbabwe, whether public, private or woman of 2019 silver winner. government owned can enter the Business Awards, regard- less of size or industry. The National Business Awards has a range of categories suited to a wide variety of success- Dr Chipika is our champion of among other things, the Financial ful organisations; from large private and public companies through to thriving entrepreneurial businesses, promising Inclusion programme which supports micro, small and medium start-ups and established SMEs. enterprises catering for all the marginalized people most of whom are Selection criteria women, youths, rural people, small holder farmers and people living The adjudication process seeks the following require- ments from all nominees: with disabilities, so that they can be part of the main stream economy. • Company profile • Resume’ • Organisation’s history To Dr Chipika we say keep shining as a depository of grounded • Organisational structure business etiquette. The sky is the limit. • Details of personal development and social responsi bility Subjective criteria includes non-statistical factors such Once again Makorokoto, Amhlophe, Congratulations. as: a. Management of people, tasks, processes and the mac- ro-environment fundamentals. b. Recognition by internal and external stakeholders. c. Human resources development and leadership Page S16 | August 8-14 2019 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE The Financial Gazette 2019 Megafest Women Awards winners

Outstanding Public Service Leader of the Year Silver winner (Champions Insurance) Ellen Chivaviro (ZINWA) Portia Songore Platinum winner Silver winner (Kassavi Construction) Silver Outstanding Woman in Medical and Health Care of Mercy Manyuchi winner the Year (Ministry of Mines and Mining Development) Engineer Memory Nyoni Dr Doreen Mashava Gold winner (Rural Electrification Agency) Platinum winner Patience Gachira (Traffic Safety Council) Gold winner Outstanding Educational Leader of the Year Platinum winner Engineer Farai Mavhiya-Bhiza Elizabeth Mukuwane Outstanding Woman in Hotel, Tourism and (Chisipo Consultants) (Cornerstone School) Hospitality of the Year Platinum winner Gold winner Tersh Mahiya Makamanzi (Cresta Hotels) Outstanding Woman in Media of the Year Barbara Mudavanhu Silver winner Rudo Gunduza (Maranatha Group of Schools) Winnie Muchanyuka (SAA) (ZiFm Stereo) Platinum winner Gold winner Silver winner Outstanding Women in Humanitarian Work of the Carol Chirairo (Monomotapa Hotel) Outstanding Insurance Leader of the Year Year Platinum winner Joyce Nousenga Abigail Matsvayi Outstanding woman in Engineering (Hamilton Insurance) Silver (Zimbabwe Women Lawyers Association) & Construction of the Year winner Platinum winner Lydia Muzenda Mukai Nyengerai Outstanding Advocate and legal Leader of the Year (Esor Zimbabwe)Bronze winner (Tropical Reinsurance Company) Farai Nyabereka (Manokore Attorneys) Engineer Rujeko Masike Gold winner Silver winner (Harare Institute of Technology) Tambu Madzivire Phillipa Phillips (Phillips Law) Silver winner Sharon Bwanya (Mawere Sibanda Cmmercial Lawyers) Gold winner Mutsa Remba (Dube Manikai and Hwacha) Gold winner Nyasha Pamella Timba (Devittie, Rudolph & Timba) Platinum winner Outstanding Legal and Corporate secretary of the Year Rumbidzai Mutetwa (Zimparks) Gold winner Outstanding Banking and Finance Leader of the Year Loice Ngulube (POSB) Gold winner Nyasha Nyambuya (Microhub Financial Services) Platinum winner Outstanding Accounting, Auditing & Investment Leader of the Year Caroline Mangezi (Zimbabwe Agricultural Development Trust) Bronze winner Manyara Chigunduru (Marianhill Chartered Accountants) Silver winner Shamiso S. Magobeya (Champions Insurance) Silver winner Tendai Mutizwa (First Mutual Properties) Gold winner Chiedza Chivore Manyangadze (Diagnostic Imaging Centre) Gold winner Jacqueline Dube (Cotton Company of Zimbabwe) Platinum winner Outstanding Personal Assistant of the Year Vivian Eliverimu (Fidelity Life Assurance of Zimbabwe) Gold winner Memory Chakanyuka (Schweppes Zimbabwe Limited) Platinum winner Outstanding Human Capital Development Leader of the Year Patience Kapfunde (Getbucks) Bronze winner Cynthia Ncube (Population Services Zimbabwe) Silver winner Molline Nhenjana (Auditor General Office, Zimbabwe) Gold winner Regina Tendayi (PSMAS) Platinum winner Outstanding Public Relations & Corporate Affairs Leader of the Year Kerne Mackie (Swift) Silver winner Marjorie F Mutemererwa (Seed Co Group) Gold winner Esther Toto (ZB Financial Holdings) Platinum winner Outstanding Young and Promising Woman of the Year Tinotenda Victoria Chimuti To Page S17 The Financial Gazette 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE August 8-14 2019 | Page S17 2019 Megafest Women Awards winners From Page S16 (Total Zimbabwe) Bronze winner Lisa Munengwa (Pro-Air) Silver winner Martha Mamombe (ZiFm Stereo) Gold winner Vimbai S Mapfumo (Unilever) Gold winner Tapiwa Mutizhe (Zimplats) Platinum winner Outstanding Marketing Leader of the Year Bryony Acutt (Africa Albida Tourism) Silver winner Tarisayi Chigunhah (National Oil Infrastructure Company) Gold winner Tarisai Vambe Maereka (Unilever) Platinum winner Outstanding Woman Entrepreneur of the Year Brita Masalethulini (Krugel Investment services) Silver winner Georgina Duri (Zanox Men) Gold winner Cynthia Bizure Sithole (Janjam) Platinum winner Outstanding Thought Leader of the Year Tandiwe Masunda (PricewaterhouseCoopers) Gold winner Miriam Chahuruva (HIT) Platinum winner Outstanding Industrialist of the Year Angeline Kasaira -Chingwaru (Nash Paints) Silver winner Praise Chinyoka (Sustech) Gold winner Agnes Chiedza Chimani (Alliance Media) Platinum winner Outstanding Director of the Year Happiness Vundla (Ernst and Young) Platinum winner Outstanding woman CEO of the Year Mandas Marikanda (Women’s Microfinance Bank) Bronze winner Veronica Gwatiringa (Zimbabwe Garden Seeds) Silver winner Susan Makore (AB Communication) Gold winner Florence Leocardia Sigudu (Transmedia) Gold winner Victoria Jakazi (Wattle Company) Platinum winner Outstanding Business Leader of the Year Esinath Nezambe (Ruwa Export (Pvt) Ltd) Platinum winner Outstanding Woman of the Year Dr Jesimen T Chipika (Reserve Bank of Zimbabwe) Silver winner Victoria Ruzvidzo (Sunday Mail) Silver winner Stella Tendesi Makunike (Pacific Cigarettes) Gold winner Cecilia Alexander (APEX Council) Gold winner Natalie Paida Jabangwe (Ecocash) Platinum winner

The Board, Management and Staff wish to congratulate Nyasha Pamela Timba on being named the Outstanding Advocate and Legal Leader of the Year-Platinum Winner. Makorokoto!! Amhlophe!!

We are proud to be associated with you.

Fabrication of the following: Merchanting and supply of: • Sides and ends for rail • Deformed bars wagons • Angle Irons • Steel structural fabrication • Flat bars • Window frame fabrication • Tubes • Door frame fabrication • Bars Contact Nigel on - 0713 522 777 Email: [email protected]

5 Empress Road, Belmont, Bulawayo or/ 490 Goodwin Road, Willowvale Harare. Your one stop steel fabrication solution. Page S18 | August 8-14 2019 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE The Financial Gazette ZWMB CEO wins Megafest award

TRAFFIC SAFETY COUNCIL OF ZIMBABWE

Mrs Patience Dangwa - Gachira Corporate and Legal Affairs Manager

The Board, Directorate, Management and Staff would like to congratulate Mrs Patience Dangwa- Gachira upon her successful completion of the IoDZ Advanced Certificate in Company Direction and the prestigious award as The Megafest Outstanding Public Service Leader of the Year 2019 PLATINUM WINNER. Mandas Marikanda

HE Zimbabwe Women’s Microfi- the 2018 Business Woman of the Year. As a vanguard of professional ethics ,your achievements nance Bank (ZWMB) chief execu- ZWMB, is a registered deposit-taking will go a long way in achieving our vision – Ttive Mandas Marikanda , was once microfinance institution, having been li- To become a regional leader in continuously reducing deaths, again recognised by the 2019 Megafest censed and authorised by the Reserve Women’s Awards, walking away with Bank of Zimbabwe to conduct depos- injury and property damage caused by road traffic crashes. the Outstanding CEO of the Year Bronze it-taking microfinance business in terms award. of the Microfinance Act (Chapter 24:29), She was recently honoured by the with effect from May 29, a``2018. Congratulations! Makorokoto! Amhlope! Zimbabwe Institute of Management as To Page S23 “TOGETHER WE CAN SAVE THOUSANDS OF LIVES” Makorokoto!! Amhlophe!!

Management and Staff at Phillips Law would like to congratulate our managing partner, Phillipa Phillips on being named the Megafest Congratulations!! Outstanding Advocate and Legal Leader of the Year - Silver Winner.

Mobile: +263 772 111 459 Tel +263 242 746752 Fax +263 242 746735 www.phillipslaw.co.zw Suite 102 Sanlam Centre, Newlands, Harare, Zimbabwe The Financial Gazette 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE August 8-14 2019 | Page S19 Celebrating Zim women in business

HE Megafest Business Awards celebrate ex- ceptionally performing individuals and organi- Tstaions in Zimbabwe and affiliated neighbouring regions, by providing a spotlight platform for the un- sung businesses to shine. The business awards are supported by an array of sponsors with the goal to empower business players by recognising and rewarding local businesses and asso- ciated neighbouring regions for provid ing top quality services. Simultaneously, encompassing businesses are en- couraged to ‘go an extra mile’ in offering improved customer services to communities. The awards offer businesses a marketing edge to their competitors and conversely create a positive business networking atmosphere. Performance, being a vital benchmark, becomes a thrilling priority as the awards create a cost efficient platform to enhance a brand and honour outstanding employers or employees Outstanding Marketing Leader of the Year Win- in organisations. Companies can either be nominated ner, Tarisai Vambe Maereka of Unilever giving her Hamilton insurance general manager Joyce Nousenga Outstanding Short-Term by a third party or do self-nomination, performance and acceptance speech. Insurance Leader ( silver award). To Page S20 production being the main entry point.

Phillipa Phillips walked away with the Silver Award for Outstanding Advocate and Legal Leader of the Year 2019.

Patience Gachira of Traffic Safety Council of Zim- babwe (centre) platinum winner for the Outstand- ing Public Service Leader of the Year 2019.

Outstanding Woman in Hotel, tourism and hospital- ity of the Year winner Carol Chirairo. Page S20 | August 8-14 2019 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE The Financial Gazette Megafest recognises Celebrating Zim business women Nyasha Timba From Page S19

YASHA Pamella Timba has set herself against tradition, Nespecially against conven- tions and prejudices that hedge about womanhood. She is a trailblazer who is set to not only transform but democ- ratise justice for families with her new blockchain enabled estate planning service set for full commercial launch in the third quarter of 2019. A mother, wife, sister and a true friend, Timba maintains an unwaver- ing passion for using her expertise and experience to transform Africa’s soci- ety and capital markets. Nyasha is a seasoned registered legal practitioner, conveyancer & Notary Public. Tim- ba also underwent extensive training through the South African law firm, Bowman Gilfillan to acquire Interna- Nyasha Pamella Timba (centre) receiving the Outstanding tional Accreditation as a Commercial Advocate and Legal Leader of the Year. Mediator from Conflict Dynamics in el innovation, caused her to question nies, non-governmental organisations Barbra Mudavanhu (left) won the Outstanding Educational Leader of the Year 2016. existing suboptimal legal practices as well as small to medium-scale en- award. Timba is the managing partner of that placed an anaemic focus on value terprises. Devittie Rudolph & Timba (DRT) addition for the client. Through per- At the core of her practice, Timba Legal Practitioners, one of the fast- severance, determination and faithful upholds above all else, delivering be- est growing law firms in Zimbabwe adherence to the tenets of professional- spoke solutions for each of her clients’ which she co-founded in partnership ism and the highest ethical probity, she divergent needs by creating, capturing with Frank Rudolph and retired High built one of Harare’s fastest growing and sustaining value for them. She be- Court judge, James Devittie in April and successful law firms. lieves strongly in the advancement of 2016. Timba provides leadership and tu- women as agents of and participants This leap became inevitable from telage to an extremely talented com- in structural and transformational the time that Timba enrolled and lat- mercial team at DRT, a craft that she change. She has therefore championed er graduated from the University of developed over a decade in private digital transformation and innovative Gloucestershire (UK) where she ob- practice, including at a leading law disruption in delivering legal services tained an MBA with merit. This MBA firm in Harare between 2010 to 2016. within DRT to ensure optimum value programme together with her chosen Her clientele now includes local and to clients, operational efficiency and area of specialisation, business mod- international entities, listed compa- enhance access to justice.

Winnie Muchakanyuka (centre) receiving her award for the Outstanding Woman in Hotel, Tourism and Hospitality of the Year (Gold winner). The Financial Gazette 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE August 8-14 2019 | Page S21 Promoting business excellence HE Megafest Business Awards are an opportunity to shine and Tdemonstrate you are an outstand- ing Zimbabwean business. The Megafest Business Awards con- nect the nations’ business leaders through its annual ceremony and year-round thought leadership programme to cele- brate enterprise excellence. •The award is a great opportunity to raise your profile within the management community, helping to accelerate your management career as well as gaining recognition and acknowledgment for your skills. •It’s a great achievement, conferring tremendous prestige on the individual nominated as well as their company. Megafest Holdings CEO Tafadzwa •Taking part also offers a springboard Matsika to career progression. •This competition differs from oth- your company to various stakeholders er industry awards as it is designed and and is also a very effective promotional judged by the people who matter — the tool. customers. •It is a continuous process that seeks •Creates a unique opportunity to chal- to enhance personal and company image lenge existing stereotypes, understand as it moves into the future. emerging trends and add value to organi- •Reassurance and reinforcement to sations aiming to commercialise and ap- stakeholders that they are dealing with ply new and innovative concepts. a strong recognised up market company. •Crucial in unveiling the perception of •Attracts, retains and enhances a pro- the market concerning your organisation. ductive workforce. Everybody wants to •Disseminating information about be associated with the best. Page S22 | August 8-14 2019 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE The Financial Gazette Chisipo Consultants Consulting Engineers director honoured

HISIPO Consultants Consult- Standing Committee and the WFEO ing Engineers director Eng Engineering and Environment Com- CFarai Mavhiya-Bhiza recently mittee. walked away as the @019 Outstand- Mavhiya -Bhiza also served on ing Woman in Engineering & Con- the ZESA Holdings Board (2014 to struction winner at the recently held 2018) as a non-executive director and Megafest Women’s Awards. currently sits on the Harare Institute of Mavhiya -Bhiza is a director at Technology (HIT) Board. Chisipo Consultants Consulting En- Among other achievements Eng gineers, a fast growing multi-disci- Mavhiya- Bhiza is: plinary firm. Chisipo Consultants has 1) Recipient of the ZIE Recogni- expertise in structural, civil, mechani- tion of Women in Engineering Award cal and electrical engineering services. Engineer Farai Mavhiya-Bhiza (2004) Bhiza has also worked for Arup 2) Finalist of the Totally Concrete Zimbabwe (Pvt) Ltd as an associate ious SADC countries including Eswa- Expo Women in Construction Excel- director. She graduated from the Uni- tini, Botswana and Zambia. Eng Farai lence Awards 2014 held in Johannes- versity of Zimbabwe in 1994 with a has also worked on projects located in burg, South Africa Bachelor of Technology (Honours) in Doha Qatar, Mauritius and Ireland. 3) Recipient of the Megafest Spe- Electrical Engineering Degree. Eng Mavhiya -Bhiza is the out- cial Women in Zimbabwe 2016 Award She is a holder of an ACCA Cer- going chairperson of the Engineering 4) Nominee for the CEO Global tified Diploma in Accounting and Fi- Council of Zimbabwe (ECZ), which Africa's most influential women in nance from the Open Learning Centre regulates and governs the Engineering business and government award in attained in 2002. profession in Zimbabwe. She is the 2017 Eng Farai is an ISO 9001:2015 current Chairperson of the Women in 5) Recipient of the Megafest Out- (Standards Association of Zimbabwe Engineering in Zimbabwe, a division standing Construction and Engineer- trained Quality Assurance Lead Au- of the Zimbabwe Institution of Engi- ing Leadership of the year 2018 Award ditor. neers (ZIE), established to increase the 6) Finalist for the SADC North She has 24 years experience in visibility of Women in Engineering, 2018/2019 Pan African Awards in the building services engineering for var- Science and Technology. Business and Professional services ious projects including residential, She is also a member of the World sector of CEO Global Most Influential commercial, industrial and institution- Federation of Engineering Organisa- Women in Business and Government al. Her projects have taken her to var- tions (WFEO) Women in Engineering held in Lusaka, Zambia.

CONGRATULATIONS! MAKOROKOTO! AMHLOPHE! Platinum Winner OUTSTANDING WOMAN IN ENGINEERING AND CONSTRUCTION OF THE YEAR 2019

The Management and Staff of Chisipo Consultants would like to congratulate Eng. Farai Mavhiya-Bhiza for being recognised as Outstanding Woman in Engineering and Construction of the Year at the 2019 Megafest Women’s Awards. Special recognition for being a vanguard of Professional Ethics.

Civil ● Structural ● Electrical ● Mechanical

Stand No. 8383, Tynwald Industrial Park Mabelreign, Harare. Tel: 08644238356/7 Email: [email protected] Website: www.chisipoconsultants.co.zw The Financial Gazette 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE August 8-14 2019 | Page S23 Marianhill founder scoops award

ANYARA Chigunduru the founder and man- realized that most clients wanted people She has experience in industries such aging partner of Marianhill Capital (Pvt) Ltd or service providers who will give them as financial services, manufacturing, M& Marianhill Chartered Accountants in Zim- value first and foremost and a service agriculture, insurance, mining, legal, babwe, was recently honoured at the 1019 Zimbabwe provider who understood their needs NGOs, events and entertainment. Chi- National Chamber of Commerce Mashonaland Region deeply and provides tailor made solu- gunduru is passionate about bringing Business Awards, at a colourful ceremony held at Cresta tions. The need to have some financial business solutions into the business world Lodge in Harare. independence and be able to use my time through financial clinics, workshops and Marianhill offers financial advisory services, corpo- for the benefit of others and directing my one on one consultation for both upcom- rate finance, entrepreneurship development, and project destiny made me start my own business. ing and seasoned entrepreneurs offering finance to companies and individuals. I knew right from the onset that, while it unparalled financial, accounting and tax Chigunduru, who is a Chartered Accountant (Zimba- would take some time to fulfil my pur- advice on different business initiatives. bwe) and a registered public auditor, has over 15 years pose, it would be time well lived to bring She sits on several boards. experience in financial management, accounting, audit- positive change to people and organisa- She is a Qualified Chartered Accoun- ing and taxation. tions that I interact with as I provide my tant (Zimbabwe), a practising Registered She started Marianhill Chartered Accountants be- services with purpose.” Public Auditor and is a member of the cause she felt that she had a purpose to achieve and to Chigunduru is a seasoned financial PAAB. She holds a Bachelor of Account- fulfill that purpose of running her own business. advisor and advises in areas of business ing Science Honours Degree (BCOMPT) “I noted that in our industry almost all accounting strategy, business recovery/ turnaround, with UNISA and a Bachelor of Accoun- firms were owned by men and the drive was always the ICT, internal controls and business incu- tancy Honours degree with the Universi- Marianhill CA founder and managing partner same: money. I wanted Marianhill CA to be different. I bation for start-ups. ty of Zimbabwe. Manyara Chigunduru. ZWMB CEO wins Megafest award

From Page S18 ZWMB is mandated to empower all women econom- ically and socially by providing access to affordable and innovative women-centred financial products and - ser vices as individuals, or in groups/clubs/cooperatives or as micro, small and medium enterprises. The Bank’s mission is to empower all women eco- nomically and socially. It’s vision being “The Leading Bank in Women Eco- nomic Empowerment”. The bank’s head office is located at Trust Towers Building, 56-60 Samora Machel Avenue, Corner Samo- ra Machel Avenue and Julius Nyerere Way, Harare where its flagship branch is also located on the ground floor. ZWMB is accessible to all women throughout the country, offering innovative women centric financial and non-financial products and services at affordable rate. During the first year of operation, ZWMB has man- aged to open more than 60 000 accounts since inception. Furthermore various types of loan facilities have been disbursed to the tune of $12 million to more than 20000 beneficiaries. Several value chain financing activities have been embarked on for a variety of crops castor bean, sesame, cotton, sunflower, and sorghum. This has impacted mainly the rural farmer in our drive for financial inclusion. ZWMB offers financial services such as savings products; Micro-farming/Microenterprise Account, SME Savings Account, & Group Savings Accounts. In addition, it offers Micro-Enterprise/Business Loans, Group Solidarity Loans, Small & Medium Enterprises Business Loans, Personal/Consumer Loans, Order Fi- nancing and Agribusiness/Value Chain Financing and recently introduced Katsaona Loans for incidental pur- poses. The Bank has also partnered with players in the in- surance industry to finance low cost micro insurance services, clean energy solar system and castor bean farming. Apart from financial services, the bank also offers some non- financial services. The non-financial services are meant to help women as individuals or in groups to take advantage of economic opportunities, through Fi- nancial Literacy training of basic financial skills, group capacity-building efforts and providing information on available financial services. The non-financial services range from “social inter- mediation” which is meant to build social capital and basic skills within the community, to business man- agement training, financial education, group capaci- ty-building efforts, and providing information on avail- able financial services. Page S24 | August 8-14 2019 2019 MEGAFEST WOMEN'S AWARDS SPECIAL FEATURE The Financial Gazette HIT staff awarded

Outstanding Thought Leader of the Year winner Miriam Chahuruva (second from right).

Eng Rujeko Masike (in red): Outstanding Woman in Engineering and Construc- tion of the Year. HE Harare Institute of Technology STEM subjects and the education of girls in (HIT) director of Information and technical subjects. TCommunication Technology Ser- Chahuruva serves on various boards, vice, Miriam Chahuruva, was recently rec- including the Premier Service Medical In- ognised by the 2019 Megafest Women’s vestments, (PSMI); is the non-executive Awards, walking away with the Outstand- chairperson of the Zimbabwe Universities ing Thought Leader of the Year Award. ICT Directors Association; national council Also, the chairperson of the Department member of the Computer Society of Zimba- of Industrial and Manufacturing Engineer- bwe, and is affiliated to the Institute of Di- ing, Eng Rujeko Masike, walked away with rectors Zimbabwe and the Association for the Outstanding Woman in Engineering and Computing Machinery. Construction of the Year. Masike is a doctoral fellow in Robot- Held under the theme, “Think Fast, ics (Amity University India), and holds an Think Smart, Think Disruptive,” the awards M.Eng and B.Eng degree in Industrial and are a celebration of womens’ excellence and Manufacturing Engineering, both from the advancement in Zimbabwe’s private and National University of Science and Tech- public sector. nology. She is a dedicated and results-driv- Chahuruva was selected after demon- en engineer and researcher who pushes the strating business excellence and the highest boundaries of engineering and innovation to standards of ethical conduct, integrity, civic give real life solutions to local and interna- and social responsibility. tional problems through research and design She is an Information Technology exec- methods. utive and director, with more than 20 years’ Masike is a member of the Zimbabwe experience in the higher and tertiary edu- Institute of Engineers and Engineering cation and health insurance sectors. She is Council of Zimbabwe (ZIE/ECZ), as well also an effective leader with demonstrated as the American Society of Mechanical En- leadership qualities and expertise to manage gineering. She is also a council member of strategic and visionary functions within or- the SHEQ technical sub-committee for the ganisations to create productive teams and Standards Association of Zimbabwe. support organisational growth objectives. In the furtherance of her work in research We wish to congratulate Veronica Gwatiringa for Her specific areas of expertise include stra- and innovation, Masike has been awarded tegic planning, financial acumen, IT risk grants and fellowships by international or- scooping the Megafest Outstanding Woman CEO management, creative development, corpo- ganisations such as the Royal Academy of of the year Award rate governance, operations review, policy Engineering UK. formulation and review. She has published papers in the area of Chahuruva leads a team that is customer mechanical and automobile engineering, focused, whose service delivery is under- sustainable energy, and safety and health in Zimbabwe Garden Seeds - Best Seeds For You pinned by continuous improvement and the workplace. Address: 2nd Floor, Vanguard House, 48 Kenneth Kaunda Avenue,Harare seeks effective and efficient support -ser She is currently pursuing studies and re- Phone: 0242-794053/737832/ +263 772 309045/ 773 514 721 vices to enable smooth functioning of ICT’s search in robotics with emphasis on Indus- Office 511 Fidelity Life Centre Cnr Fife Street / 11th Avenue, Bulawayo for the institution. trial Automation. Tel: +263 8644 276 181 She holds Bachelors and Master of Sci- Masike has experience in the manufac- Email: [email protected]; [email protected] ence Degrees in Computer Science from the turing industry and is working towards in- National University of Science and Tech- spiring, motivating and training of women nology, (NUST). She is passionate about in engineering. The Financial Gazette 2019 MEGAFEST WOMEN’S AWARDS SPECIAL FEATURE August 8-14 2019 | Page S25

Veronica Gwatiringa (right) donating food stuffs to the elderly. Donations at Kapota School. Philanthropy drives Gwatiringa

HE Zimbabwe Garden Seeds (ZGS), as part of its corporate social responsibility, recently Ttravelled to Kapota School in Masvingo for a good cause. Christened M Hugo school for the blind, the insti- tution has a primary and secondary school and they cater for the visually impaired and albino children. The school received an unexpected guest with an assortment of goods that were meant for donation to the school. CONGRATULATIONS!! Riding on their philanthropic founder and manag- ing director Veronica Gwatiringa, the company do- nated an assortment of braille paper for use by the visually impaired students. The school also received an assortment of grocer- ies which included a tonne of mealie meal. The albino community at the school received sun hats to cover themselves from the scorching sun. The girl child was also not left out with sanitary pads be- ing donated to the school. This is because of ZGS’ passion for the girl child and the vulnerable elderly women. Gwatiringa noted that her corporate social respon- sibility programmes were driven by her desire for the girl child and the vulnerable elderly women. ZGS also donated an assortment of vegetable seeds for horticultural projects at the school. The company also pledged agronomic advice to The Wattle Company Ltd wishes to congratulate Mrs Victoria Jakazi on Megafest Awards the school for free. Speaking on behalf of the school, the head Mr. on being the Outstanding Woman CEO of the Year - Platinum Winner. Madamombe thanked the company for its kind ges- ture. He noted that braille paper was no longer found We congratulate you on your excellence. in the country and ZGS had to buy it from South Af- rica specifically for the visually impaired. He also thanked the company for mealie meal as they were facing problems with their grinding meals due to the electricity black outs. After touring the school, Gwatiringa indicated that it was not their last time to visit the school and promised to also fund the ECD playground which has deteriorated and is now unsuitable for use. She also promised to fund materials for the Art class where the teacher indicated that paper and cloth material were needed. One visually impaired student Adelaide also ben- efited from the gesture as her school fees for the two terms were paid which makes the fourth student up to Advanced Level. From Kapota, the ZGS team travelled to Mupum- bu Community Garden in Hama Chirumanzu where they held a Green Show. The company had sponsored a horticultural com- petition for gardens in the ward in different varieties such as tomatoes, carrots, butternut, rape and onions. The gardens bought seed from the company and as a way of giving back to the community the company sponsored prizes for the best farmers. The prizes ranged from watering cans, knap sacks, hand sprayers, seed and hoes. Speaking at the presentation ceremony Gwatirin- ga noted that she was giving back to her community through empowerment. She also pledged to drill a borehole for the garden to alleviate the water shortages and enhance more horticultural projects. The company also extended the competition to other wards and promised to have bigger prizes for the next competition. 3 Durban Road. P.O.Box 250 Mutare, Zimbabwe The trip was concluded with the team revisiting the orphans and the adopted elderly women to give TEL (+263) 20 63821 FAX +(263) 20 65347 Marketing /64564 Main them their monthly grocery provisions. E-MAIL: [email protected] Gwatiringa has created an exceptional template of quality leadership. Website: www.wattle.co.zw She has bagged national and international awards. Recently, she was crowned as the Outstanding Wom- en CEO of the year 2019 by Megafest Women in Business Awards. Page S26 | August 8-14 2019 2019 MEGAFEST WOMEN'S AWARDS SPECIAL FEATURE The Financial Gazette Zim women who defied the odds

Divine Ndhlukula Eve Gadzikwa Joice Mujuru Oppah Muchinguri Chipo Mtasa Grace Muradzikwa Mildred Chiri ONE are the days when the place of a powerment has been discussed extensively all It is from this background that women em- Conference participants went home with great hope and woman was in the kitchen. over the world. It was discussed in 1995 when powerment has been scaling up because in the specific goals on how to achieve equality and- empower G Over the decades, women have shat- over 50 000 women congregated in Beijing, Chi- past, women continued to be left out of top posi- ment. tered the glass ceiling, taking over the decision na, for the Fourth World Women’s Conference, tions in companies despite the fact that there are Two decades later, it remains a powerful source of guid- making roles in the public space. which culminated in the Beijing Declaration and more women than men in the world. ance and inspiration. Managing to juggle the pressure of leadership Platform for Action, the most progressive blue- As a defining framework for change, the Plat- However, in some countries “progress” has been more roles and child-bearing and rearing is no stroll in print ever for advancing women’s rights. form for Action made commitments under 12 talk than action although Zimbabwe is among the countries the park and today, Zimbabwean women have Every woman from the executive to the grass- critical areas of concern which include women that have somewhat managed to include women in decision showed their prowess to lead. roots knew that it was time to stand up and be and poverty, women and health, violence against making positions, especially in politics and government. The issue of gender balance and women em- counted. women and women and the economy. Dubbed the queen of the security industry, Divine Ndhlukula founded Securico Security Services from hum- ble beginnings in 1998. She has tackled a previously male-dominated industry head on and her success story is nothing short of remark- able, marking her as one of Africa’s most tenacious and in- spiring women entrepreneurs. She was crowned the winner of the prestigious Busi- nesswoman of the Year Award at the Forbes Woman Africa Awards. Zimbabwean women have scaled to corporate leadership positions, with some like the hard working Eve Gadzikwa becoming a member of many boards. Many describe her as an inspiration to women. She is the immediate past president of the African Or- ganisation for Standardisation (ARSO) and she was the first female to hold the post. She is currently the director-general and board compa- ny secretary for the Standards Association of Zimbabwe (SAZ). In the political sphere as women continue to battle for political space where decisions are made, Joice Mujuru is the first woman to serve as Vice-President of Zimbabwe from 2004 to 2014. She has been described as a brave fighter after she was said to have downed a helicopter with a machine gun on February 17, 1974. Oppah Muchinguri is the first woman to become the country’s defence minister ― a key ministry in Zimbabwe ― with the role of defending the sovereignty, territorial in- tegrity and national interests of the country and to contribute to international peace and security. Another inspirational figure is Chipo Mtasa, who has been managing director of TelOne since 2013. She has managed to spur the state-owned telecommuni- cation firm to great heights. TelOne said for the first time in three years, earnings before interest and taxes (EBIT) profit of $1 million from a negative $4,2 million has been recorded over the period, marking a $125 percent increase. TelOne said revenue during the first five months of 2019 went up 62 percent to $79 million compared to $48,6 mil- lion recorded same period last year. Insurance guru Grace Muradzikwa, who was recently appointed as commissioner of the Insurance and Pensions Commission (IPEC) has also been making strides in the game of women empowerment. Muradzikwa became the first woman to lead and head a Zimbabwe Stock Exchange-listed company. The charismatic, energetic, innovative Clara Mlambo is currently regional chief operating officer at Liquid Telecom. She doesn’t need an introduction to industry after suc- cessfully managing British American Tobacco (BAT) Zim- babwe for two years with the cigarette producer performing well financially. Known for her damning reports, Auditor- General Mil- dred Chiri has unearthed various acts of negligence, outright incompetence and malfeasance in the country. She has defied the odds and managed to reveal how corrupt state entities are although the government has been blamed for deliberately not taking action on the adverse re- ports. After being thrown at the deep end of turning around Turnall Holdings in 2017, Roseline Chisveto says she has what it takes to place the company at the forefront of re- building Zimbabwe’s infrastructure. The listed industrial concern’s managing director said she wants to launch new products and expand the current scope of offerings through industry defining innovations while preparing Turnall for a big say on the regional front. The above are just but a few examples of women who have defied odds in the country. The Platform for Action imagines a world where each woman and girl can exercise her freedoms and choices and realise all her rights, such as to live free from violence, to go to school, to participate in decisions and to earn equal pay for equal work. The Government of Zimbabwe, despite its numerous failures, should be commended for working towards the in- clusion of women in all aspects of life, be it social, political or economic. More women and girls now serve in political offices, are protected by laws against gender-based violence and live under a constitution that guarantees gender equality. The Financial Gazette August 8-14 2019 | Page S27 Career Guidance and Tips Feature 2019 Mother Touch pursues the ‘African dream’

OTHER Touch Group of Schools (MTGS) want to duplicate what is already there. We are still re- Posts and Telecommunications Corporation for a 15-year had to sell a car and a house. founder and chief executive officer Salome searching but we want to look into the gaps that exist and stint before embarking on her private sector journey. Today, Mutsinze looks back through a plethora of na- MMutsinze sits at the heart of a well thought- fill that space as we continue growing. But she did not qualify as an educationist until well tional recognitions for outstanding achievements. out Zimbabwean strategy designed to produce hands- “We want to establish an international school in into the establishment of her creche, when she realised In 2018, the Zimbabwe National Chamber of Com- on, intellectually solid students with the pedigree to Victoria Falls to serve Zimbabwe, Botswana, Zambia how imperative it was for her to understand the theories merce crowned her the Woman Businessperson of the respond to contemporary challenges that confront and Namibia. We have purchased land, and we want to that drive teaching.That is how she ended up at Seke Year. Later this year, MTGS will receive the prestigious society. A member of CEO Africa Round Table (CEO leverage on Victoria Falls’ proximity to these countries,” Teachers’ College in Chitungwiza, where she obtained Secretary’s Bell Award, which is bestowed on outstand- ART), Mutsinze tells The Financial Gazette that her she says. the Diploma in Primary Education. ing schools by the Ministry of Primary and Secondary 21-year journey as an entrepreneur was motivated by Part of the growth will come through franchasing the She then enrolled for a Bachelor of Education de- Education. a genuine desire to train well grounded, God fearing MTGS brand in foreign jurisdictions, Mutsinze says. gree with Women’s University in Africa, after which she But is this a profitable line of business? “This is not a students who view Zimbabwe’s challenges from a “In 10 years, MTGS will be all over the world. We obtained a master’s in education from Great Zimbabwe business that you can invest in and expect a quick buck,” global perspective. In this interview with Shame Ma- will be in the United Kingdom, in Germany, in Australia University in Masvingo. Mutsinze tells me. koshori, she speaks glowingly about her relationship and other countries. God wants us to raise relevant global “Understanding children goes beyond having the “This is not for those who are money hungry. This is with CEO ART and chronicles the benefits that come students. We are gearing ourselves to fulfil this.” general knowledge. This is a God given vision, it came an investment in building lives. For someone who wants with an expanded network. It has been an exhilarating journey, Mutsinze says as out of prayer. I prayed to God and he said, ‘start a creche’. to be a millionaire or a billionaire, this is not your type of We meet on the first floor of Mother Touch Junior she opens up. All things that I do must be centred around God. I am business. This is a calling. You can leave a legacy, you School complex, a hidden real estate gem in Tynwald She started off as a temporary teacher at Manunure who I am because of God,” says Mutsinze. can touch lives, but you don’t make a lot of money,” she South, 10 km west of Harare’s CBD. High School, Kwekwe, before moving on to the former She has taken risks along the way to raise funding and says. I am immediately hum- bled by the lavish reception extended by Mutsinze, a down to earth executive who sits be- hind a high-quality desk. After winding up a tele- phone conversation with someone in Maputo, Mozam- bique, she quickly delves into our discussion. It is difficult to imagine that Mutsinze is behind an aggres- sive marketing offensive that has catapulted MTGS into an instant household name, or the visionary behind this emerging force in education. Over 1 500 children and 150 staff fall under her watch. When MTGS opened “from very very humble begin- nings” as a creche at Marimba, Harare in 1997, it had 45 kids and three workers. Today, it has flourished into a big facil- ity with three Early Childhood Development (ECD) centres at its founding place and at the junior school. Another ECD centre has been established in Victoria Falls. This has been an extraordi- nary expansion, I remark. My curiosity to pry into Mutsinze’s forays was piqued by a statement on the MTGS’ website, which reveals a de- sire to build a legacy through spreading knowledge. But she is quick to share with me a broader vision. MTGS will extend its foot- print into at least four countries within the sphere of influence of the Kavango Zambezi Transfrontier Park before chal- lenging status quos across Afri- ca, and globally. This may sound ambitious but those who have been privi- leged to her bustling operation, camouflaged by a small bush in Tynwald, know that this God-fearing graduate has mas- tered the skill and experience to defy the odds. MTGS blossomed at the same era as hyperinflation, challenges in state finances, fuel and foreign currency shortages ― among a sea of ills that have dogged Zimba- bwe since 1997. In Zimbabwe, 1997 is re- membered for the infamous stock market crash known as “Black Friday”, which sig- nalled the start of multifaceted problems that have buffeted the country since then. “We are establishing a boarding high school, a camp site and a tertiary institution about 80 km from Harare in Selous,” Mutsinze says. “We want to establish a tertiary in- stitution that is relevant to the needs of our country. We don’t Page S28 | August 8-14 2019 The Financial Gazette

CZI 2019 ANNUAL CONGRESS

Enterprise Leadership Service & I N T E R N A T I O N A L I N V E S T M E N T F O R U M Ncube commends CZI INANCE and Economic Development Officiating at the recent CZI congress and He said the private sector is expected to Minister, Mthuli Ncube, has applauded International Investment Forum in Victoria become the engine for growth with govern- Fthe Confederation of Zimbabwe Indus- Falls, Ncube acknowledged the business or- ment playing the facilitative role of imple- tries (CZI) for striving to remain one of the ganisation for its key role in representing its menting conducive policies and provision most vibrant business associations in Zimba- constituency in advocating for policies that of infrastructure that promotes growth and bwe. are critical for the revival of the industry. development.

Finance Minister Mthuli Ncube addressing guests at the CZI 2019 Awards dinner. “The manufacturing sector features a number of small and medium enterprise business which play a pivotal role in production, employment generation, contribution to exports and facilitating equitable distri- bution of income as it employs a very large number of poorer sections of the society. The sector is key to the recovery of Zimbabwe’s economy and we as govern- ment are committed to partnering you on this journey,” Ncube said. He said the economy has performed below its po- tential in the recent past following the multicurrency system, which stifled growth and industry lost compet- itiveness compared to major trading partners. “This is why we eliminated the multicurrency re- gime and declared the Zimbabwe dollar our legal ten- der. The situation was exacerbated by recurrent unfa- vourable weather conditions, low commodity prices and high appetite for importing giving rise to declining foreign currency inflows, liquidity and cash shortages, an ever rising exchange rate which became the anchor of pricing of goods and services feeding into inflation as well as loss of confidence,” he said. He said government is committed to earnestly im- plement the Transitional Stabilisation Programme (TSP), which is meant to stabilise the macro-economy and the financial sector through policy and institutional reforms geared towards laying a foundation for Triple S growth — Strong, Sustained and Shared. He said in order to strengthen the environment of BOC Gases would like to congratulate Turnall Holdings Limited on winning the doing business, government has been eliminating ex- National Energy E ciency Award at the 2019 Annual Congress and Awards Ceremony. cess expenditure and deficits. “Equally, government has also substantial- ly reduced the current account deficit, all of which will go a long way in stabilising the macroeco- Congratulations, Makorokoto, Amhlophe!!! nomic environment. I am pleased to inform you that from the advent of the new dispensation to date, government is earnestly implementing the necessary reforms required to uplift the country,” Ncube said. He said government is also making progress on other institutional and structural reforms aimed at im- proving governance and combating corruption and the alignment of all legislation with the highest law of the land. “This will also improve policy coordination among government agencies and departments. Significant progress has been made in the repealing of AIPPA and POSA, ease of doing business reforms, right to free- dom of expression and freedom of media, respect of property rights among others, which are all meant to ensure a conducive doing business environment for the betterment of business,” he said. Ncube assured industry that there won’t be any fur- ther surprises on the policy front in terms of major pro- nouncements. To Page S29 The Financial Gazette 2019 CZI ANNUAL CONGRESS & AWARDS SPECIAL FEATURE August 8-14 2019 | Page S29

C ngratulations

At Treadmark Tyres, we are proud to be associated with you and would like to congratulate you for winning the National Energy E ciency Award at the CZI Annual Congress and Awards Ceremony.

CZI president Henry Ruzvidzo. Ncube commends CZI From Page S28 institutions,” he said. “Government is now seized with the He said government is cognisant of task of further consolidating, reinforcing numerous pressing operational challenges and support pronounced policies both on the industry is facing including shortages the monetary and fiscal front with a view of electricity, fuel and foreign currency, of ensuring that the gains achieved thus far among others. are not lost,” he said. “To address the shortage of electricity, “Resuscitation of the manufacturing government is urgently working on strate- sector is imperative as production and gies which include engaging neighbouring productivity is the cornerstone for growth countries with a view to increase imports of any economy. Hence, government will of electricity. However, as consumers we be putting in place measures to stimulate should be honouring our obligations to productivity. To facilitate the revival of the ensure that Zesa has the resources to sus- local industry, government has developed tain the availability of the product,” Ncube a new National Industrial Development said. Policy supported by a local content strat- “In addition, we should be prepared O ce / Workshop: 33 Craster Rd, Southerton, Harare egy to develop the manufacturing industry to pay a fair price which definitely entails into a modern and diversified sector in the an upward review of the current tariff re- Post: P. O. Box BW152, Borrowdale, Harare, Zimbabwe region.” gime. Special incentives shall be provided Telephone: +263 783 949 299, 772 320 121 PRIVATE LIMITED He said Zimbabwe remains in debt dis- through duty waivers on imported solar Email: [email protected] for desirable performance! tress, with huge external arrears. equipment while it shall be mandatory “This situation prevents new financing for all new construction projects to be so- from the IFIs and limits access to exter- lar-powered.” nal financing to non-traditional official He said the interbank market is now and commercial creditors. Pursuant to functional, constraining the activities of that, government is under a Staff Moni- the parallel market. tored Programme from March 15, 2019 to “However, we are aware that the sup- March 15, 2020, which will result in an ar- ply of foreign currency remains depressed rears clearance strategy and unlocking of resulting in marginal devaluation of the new lines of credit in various forms some local currency. Suffice to say there is some of which will be private equity and pos- sanity on the market and the local currency sible revolving funds with local financial has relatively stabilised,” Ncube said.

STAMCOR ELECTRICAL AND INSTRUMENTATION SUPPLIERS would like to take this opportunity to congratulate TURNALL for winning the National Energy Efficiency Award at the CZI Annual Congress and Awards Ceremony.

Indeed this noble act can only serve to enhance quality of our business environment. S30 | August 8-14 2019 The Financial Gazette The Financial Gazette 2019 CZI ANNUAL CONGRESS & AWARDS SPECIAL FEATURE August 8-14 2019 | Page S31 Emotional moment as Sileya bows out

Clifford Sileya, outgoing CZI chief executive, addressing delegates. The 2019 CZI congress and International Investment Forum was Sileya’s last as chief executive. He has served CZI for 11 years.

CZI president Henry Ruzvidzo handing over a farewell gift to Sileya

New CZI chief executive Sekai Kuvarika addressing delegates Page S32 | August 8-14 2019 2019 CZI ANNUAL CONGRESS & AWARDS SPECIAL FEATURE The Financial Gazette

Industry Minister Nqobizitha Ndlovu addressing delegates at the CZI congress. Ndlovu seeks private sector participation

NDUSTRY and Commerce Minister foreign currency.” Nqobizitha Ndlovu has called on the He said government has approved the Iprivate sector to partner government Zimbabwe National Industrial Develop- towards the economic transformation of ment Policy (2019 to 2023) (ZNIDP) and the country. the Local Content Strategy. Officiating at the Confederation of The ZNIDP is a framework for the Zimbabwe Industries (CZI) congress and industrialisation agenda as Zimbabwe International Investment Forum held in seeks to attain annual growth of two per- Victoria Falls recently Ndlovu said the cent in the manufacturing sector for the annual congress comes at a time when next five years. government has held robust engage- Ndlovu said the projections remain ments with the private sector and shared open to scrutiny and indeed review, but a wide spectrum of ideas over the last believes that apart from 2019, targets few months. will be surpassed. Ndlovu acknowledged numerous pol- “The key pillars of the ZNIDP will icy reforms instituted by government and be investment led, innovation led, and said these have yielded positive results in export led industrial growth. These will as far as stabilising the macroeconomic be achieved through strengthening value environment. chains, focusing or retooling and right “These reforms have tamed the fiscal tooling, promoting rural and inclusive deficit by ensuring that the government industrial development, reviving anchor budget stabilised since October 2018, industries as well as ICT led industriali- and turned into a surplus since the begin- sation among others,” Ndlovu said. ning of 2019. I’m sure you recall the run- He said government is actively work- away budget deficits, excessive borrow- ing towards the resuscitation and growth ings and unsustainable current account of the country’s industrial base through deficits that we experienced over the last reviving the Industrial Development couple of years,” he said. Fund. “There was need for a bold move “The 2019 Budget allocated US$30 to address these and I’m happy to say million as seed money for the Industri- that government, with your support, has al Development Fund. The funding is made significant strides to curb this. To already available at the Industrial De- this end, I am delighted, though cau- velopment Corporation of Zimbabwe tiously, that we have also made signif- and I am briefed that there has been an icant progress in curbing the trade bal- overwhelming response from the private ance of goods.” sector,” he said. He said during the period between He said he was in the process of nego- January to May, Zimbabwe registered a tiating with Treasury for a review of the deficit of US$399 million from a deficit US$30 million following the depreciation of US$1,12 billion recorded in the same of the RTGS dollar. period last year. Ndlovu said Zimbabwe cannot afford A surplus of US$196 million was re- to lag behind in the fourth industrialisation corded in the first quarter compared to revolution. US$491 million in the same period last “The topical issues of adopting ro- year. botics, artificial intelligence, Internet of “Largely the import management things are coming to the fore. Already, strategies and resilient exports have artificial intelligence is changing the way made this possible. We in fact have in- we do business, from self-driving cars and creased imports for the second quarter, drones to virtual assistance and software signalling the positive impact of the cur- that translate or invest,” he said. rency reforms on our competitiveness,” He called on CZI members and indus- he said. try at large to explore, in a practical man- He said indeed Zimbabweans at large ner, how Zimbabwe can right tool so as to have paid the price through the pains en- fast track technologies. dured but it was worthwhile. “As we enter the implementation phase “The austerity measures that we have of the ZNIDP and the Local Content embarked on, though painful, are nec- Strategy, we must remain aware of our essary in our quest to achieve an Upper shortcomings and successes over the last Middle Income Economy by 2030. I note 10 years, which must inform us as we em- that the World Bank attests to the fact brace new opportunities and tackle emerg- that Zimbabwe has now moved from a ing threats. There is no doubt that we have lower income category to a lower middle a lot of work to do from here onwards,” income category,” Ndlovu said. he said. “Let us not forget that as a country, He said he will be shortly setting up a we went through these austerity mea- local content committee that will assist in sures literally on our own, without any coming up with thresholds and monitoring budget support externally but because of and evaluation on the strategy. the tenacity and resilience of our people, He said government is working on put- I’m happy to say we are nearing the end ting Zimbabwe on the map for business of austerity and approaching prosperity.” and investment. He said: “For 2019 we are expect- “As such, courting investment will ing a subdued performance, with a GDP continue to be a priority as envisaged in contraction of close to three percent and the “Zimbabwe is open for business” stagnation in the manufacturing sector mantra. It is anticipated that both domestic growth mainly due to the El Nino in- and foreign investment will play a compli- duced drought, effects of Cyclone Idai, mentary role by also increasing its foot- power outages and serious shortages of print in the local industry,” Ndlovu said. The Financial Gazette 2019 CZI ANNUAL CONGRESS & AWARDS SPECIAL FEATURE August 8-14 2019 | Page S33

Deputy Minister of Energy Magna Mudyiwa addressing delegates. Private sector to turn to renewable energy

OVRNMENT has implored the ages of basic necessities and other goods private sector to consider renew- and services. Renewable energy projects Gable energy technologies as heavy have a shorter implementation period power cuts continue to take a toll on busi- than most the projects earmarked by the ness operations. government,” she said. Deputy minister of Energy and Pow- Zimbabwe owes Hidroelectrica de Ca- er Development, Magna Mudyiwa, told hora Bassa of Mozambique and Eskom captains of industry at the Confederation of South Africa nearly US$75 million, of Zimbabwe Industries (CZI) annual resulting in the country getting about 50 congress that the situation needs to be ad- megawatts (MW) of power instead of dressed to minimise shortages. 450MW. Currently, the southern African coun- Mudyiwa said government has try is facing massive load shedding of up stepped in to negotiate directly with the to 18 hours a day, with the country’s in- governments of these utilities. dustrial sector taking the major blow as “Successful negotiations, based on production time has been cut to between payment plans to settle the debt are ex- five and six hours a day. pected to yield between 400 and 600MW “Production is critical and the country of power,” she said. needs to change the way it has been pro- Currently, cabinet has approved an ar- curing power in order to minimise short- To Page S35 Page S34 | August 8-14 2019 2019 CZI ANNUAL CONGRESS & AWARDS SPECIAL FEATURE The Financial Gazette

Delta corporate affairs executive Patricia Murambinda receiving the CZI Listed Company of Seed Co public relations and communications manager Marjorie Mutemererwa (left) and head of the Year first runner-up award. agronomy services John Bhasera receiving the CZI Listed Company of the Year award. CZI awards winners Buy Local Award The winner indicated that they have consistently award acknowledges the rapidly trans- years HESE awards recognise a wholesaler or re- maintained more than 90 percent proportion of lo- forming business landscape in Zimba- 2. Value addition tailer for their outstanding support for locally cally procured products in their stocking. They also bwe by honouring business excellence, 3.Monetary value of exports Tmanufactured products by demonstrating the offer SME development programmes in efforts to best business practices and by creat- 4. Company structures that promote following items: promote SME development and growth. They also ing global visibility for Zimbabwean export growth 1. Proven shelf occupancy of local products (by managed to exhibit the prioritisation for Gondola brands. Exports are a vital component Second runner-up: Treger Products value and volume) signage for local producers. in generating foreign earnings, which (Pvt) Ltd t/a Kango 2. Proven strategic linkages with local manufac- This company also runs promotions to support lo- are critical in improving the balance of First runner -up: Hunyani turers/producers cal products in their stores. trade. They play an important role in Paper and Packaging Ltd 3. Deliberate in-store branding that fully supports Runner-up: OK Zimbabwe the economy, influencing the level of Exporter of Year: Paramount Ex- local Winner: N. Richards Group economic growth, employment among ports 4. Visible inclusion of local brands in major pro- Top Exporter of the Year many other things. Energy Efficiency Award motions The CZI Exporter of the Year is awarded annu- Criteria In selecting the winners for the En- 5. Prime/frontline retail space preference for local ally to the most prominent exporter within the man- The initial selection criterion of the ergy Efficiency Award, the evaluation product ufacturing sector who is a member of the CZI. The top exporting companies was based on process considers energy management a growth analysis of the Reserve Bank policies and programmes; installa- of Zimbabwe’s export figures for the tion of maximum demand controllers; year 2018. Once these top companies power factor correction equipment; have been selected, the next step is to efficient motors and variable speed then assess the growth of volume of drives; energy audits; staff education production of these companies. Once and training; efficient lighting systems. these top companies were identified The aim is also to encourage elec- the following criteria was used to come tricity users to carry out load manage- up with the top exporter: ment programmes in their installations 1. Evidence of positive incremen- in order to manage electricity costs and tal growth in exports for the last three To Page S35 The Financial Gazette 2019 CZI ANNUAL CONGRESS & AWARDS SPECIAL FEATURE August 8-14 2019 | Page S35 Private sector to turn to renewable energy

From Page S33 future,” she said. rangement where ZETDC can ring-fence large scale power Mudyiwa said the large scale power plants have not consumers who generate foreign currency so that may assist been able to generate power at maximum rated capacity ZETDC to import power for use locally. due to challenges. Mudyiwa said her ministry is set to launch the Renew- She said these include a reduction in power generation able Energy Policy once internal approvals are completed. at Kariba Power Station due to limited availability of “live” This policy will promote uptake of renewable energy water required for power generation. projects and allow for a competitive selection procurement She attributed this to below average rainfall in the Zam- process for the development of future projects. bezi river catchment area which is also linked to climate “This is opposed to the current situation where potential change effects. investors solicit for bids and hold on to the licences,” she said. “On the other hand Hwange Power Station is facing The policies stipulate that the country should add 2100 challenges with sustained production because of aged MW of solar electricity by 2030 and build 8 000 and 300 equipment and the need to source foreign currency to ac- domestic and institutional biogas digesters. quire new machinery and spare parts. The policy also looks into promoting bio-fuels blending Electricity infrastructure vandalism has also contributed at a consistent level of E20 and B2 by 2030. to a number of areas having no access to electricity in the The Renewable Energy Policy will also mean migrating country. The rate of vandalism to transformers and power from unsolicited bids to competitive auctions of solar proj- lines has been overwhelming of late. In response to this, the utility is working on a number ects as soon as the policy is approved and introducing other Zera technical director Misheck Siyakatshana addressing delegates. incentives such as prescribed asset status, tax rebates, duty of ways to protect the infrastructure from vandalism such rebates and others for renewable energy projects. as engaging ICT providers in order to protect and monitor She encouraged the industry and private sector to con- tional, it has to service its debts, procure farms pay upfront for electricity they use. infrastructure, increase protection through physical barriers sider paying cost-reflective tariffs. resources and maintain equipment. I dream Pre-payment will assist Zesa to recover the and shifting to the use of dry transformers which will not “Profits are good but for the utility to remain opera- of a day that industry and commercial current debt and avoid it altogether in the be targeted for oil.

Energy Efficiency Award winner Turnall Holdings represented by Turnall MD Roseline Chisveto. CZI awards winners From Page S34 reduce power demand without compromising output and quality of products. Second runner-up: PetroZim Line First runner-up: Sino Zim Winner: Turnall Holdings 2019 CZI Listed Company of the Year CZI has been recognising and rewarding best per- forming listed CZI members since 2015, after the awards had been suspended previously due to hyper- inflation and subsequently the need for successive data after dollarisation. The award focuses on growth and consistency over a three-year period on annual revenue, asset turnover, earnings per share and price earnings ratio. Other subjective measures considered during the adjudication process include corporate so- cial responsibility, conscious to health and environ- mental policy. Focus on listed companies has been necessitated by the fact that in previous years, we have found it difficult and in most cases failed to get required in- formation to assist us in determining winners from members. Zimbabwe Stock Exchange data is readily available. Hence the selection covers CZI members listed on the Zimbabwe Stock Exchange. We acknowledge the support and assistance pro- vided by The Financial Gazette in contributing to the criteria for the provision of some of the required data. This award focuses on growth and consistency over a three-year period on: 1. Turnover 2. Asset turnover 3. Basic earnings per share and 4. Price earnings ratio. Corporate Social Responsibility Three-year data was obtained (2015-2017) from the annual reports and the data was analysed. Second runner- up: BAT First runner -up: Delta Beverages Winner: Seed Co Page S36 | August 8-14 2019 2019 CZI ANNUAL CONGRESS & AWARDS SPECIAL FEATURE The Financial Gazette Industry 4.0: The digital revolution

NDUSTRY 4.0 refers to the intelligent networking of machines and processes in industry with the aid of infor- Imation and communication technology (ICT). Industry 4.0 is still in its infancy and knows no national borders or closed business structures. Since industry has existed, it has evolved. Industry 4.0 is: l A name for the increasing networking of the entire value chain. l A nice marketing word. l An opportunity for companies to reinvent themselves and make them future-proof. l The designation of those developments, which led to the 4th industrial revolution. What does Industry 4.0 look like? l Intelligent machines independently coordinate pro- cesses. l Service robots support people during heavy work and services, driverless transport vehicles independently take care of logistics and material flow. l By knowing your customers through data, companies know about the needs and pains of their customers. l Networking goes across company and industry boundaries. Companies must leave their comfort zone and be inno- vative and think outside the box! Produce more flexibly, individually and efficiently lValue creation processes will change. lNew business models and new perspectives for em- ployees will emerge. lEspecially for SME intelligent, digital production pro- cesses offer great opportunities. lMillions of jobs depend directly and indirectly on the manufacturing and service industry. Developments 4.0 in Germany 1. Industry 4.0 transforms the entire company and is on the CEO agenda. 2. German companies invest annually 40 billion Euros (€) in industry 4.0. 3. In five years more than 80 percent of companies will have digitised their value chain. 4. Production and resource efficiency will increase by 18 percent in the coming five years. 5. Integrated analysis and use of data is a core capability. 6. Digitisation of the product and service portfolio is the key to corporate success. 7. Digitised products and services generate 30 billion € p.a. for German industry. 8. Industry 4.0 enables new, often disruptive digital busi- ness models. 9. Cooperation enables better fulfilment of customer re- quirements. 10. Current political and infrastructural framework needs to be customised Examples and opportunities for Zimbabwe: Precision farming ● Precision farming is an agricultural concept for new production and management techniques. ● Production processes and growth conditions are opti- mised by using sensors and application techniques. ● Compared to conventional methods, resource and cost efficiency can be increased and ecological relief can be achieved. Modern and connected tractor ● Tractor with a nitrogen sensor and fertiliser spreader. ● A plant sensor is mounted at the front which deter- mines the supply status of the wheat. ● Sends the data about the wheat to a fertiliser spreader. ● Fertiliser spreader calculates the necessary amount of fertiliser and water. ● The fertiliser and water values determined are added to the plant. ● No waste of water, optimum fertilisation and maxi- mum yield. Policy recommendations for an industry 4.0 framework ● Tax incentives for research and development on digi- tisation. ● Give incentives for established companies to cooper- ate with innovative start-ups. ● Development of digitisation checklists for SME on behalf of the government in cooperation with economical stakeholders and associations such as the CZI. ● Strengthening partnerships between business and uni- versities. ● Establishment of interdisciplinary chairs to cover in- terdisciplinary (industry 4.0-specific) topics. ● Strengthening the MINT subjects by providing suffi- cient funds (already at school is elementary.) ● Definition of common standards and norms across in- dustries. ● Nationwide expansion of broadband infrastructure. ● ICT related security aspects to build trust and reliabil- ity The fourth industrial revolution has begun and offers at- tractive opportunities for industrial companies and service industries. Industry 4.0 is anything but “hype", but will already be reality in most industrial companies in the next years. In addition to efficiency gains and cost savings, Industry 4.0 enables the conservation of important resources. The Financial Gazette August 8-14 2019 | Page 13 Column Effective cross-cultural leadership VERYDAY conversation is rife with phrases like is vital on our continent where geographical like-minded people; “the world has become one global village”; “all boundaries are blurred and most countries have l Paves way for national, regional and global continents are now interconnected by the information numerous very diverse cultures, making up one integration; E l super highway” and many similar cliches. Every minute nationality. It is not far fetched to presume that National leaders are better equipped to millions of people are flying from their normal habitat to a effective cross-cultural leadership could reduce prevent civil strife. remote part of the world on another continent, shopping and the propensity for civil strife in our countries. In It is often observed that the most prevalent communicating across the world. Governance structures essence, it bridges the divide between different cultural differences are between the Afrocentric have become international, such as regional blocks, e.g. groups, which breeds prejudice caused by and Eurocentric societies, which lead to totally SADC, ECOWAS, EU, G7, G20 and so forth. ethnocentrism, i.e. the notion that one’s culture different frames of reference in life from the What is common with this sweeping trend is that billions is superior to all others. The resultant snobbish cradle to the grave. Over the decades, this has of people of different colours, races, creed and ethnicity Executives Only Corner attitude may promote the inclination to oppress spilled over to political and economic differences have come into close proximity whether they like it or not. with or even cleanse the other cultural groups. against the reality of the need for joint effort All thanks to technological advancement manifested by Shepherd Shonhiwa Culture influences and shapes the world view required to create universal sustainability in food the internet, television, airplane, mobile phone and other of each individual, consequently influencing their security, economic prosperity, climate protection, phenomena. community; relationships with other people. Effective cross- peace and security. Such proximity forces the human race to know and l Have the ability to integrate various cultural cultural leadership lifts the bar for the better in Binary minded leaders will not deliver such understand each other through common behavioural nuances; society and formal organisations in several ways. human advancement, thus creating the stage for patterns based on necessity. Leadership science has stepped l Effectively communicate the collective l It draws on the best of many cultures and cross-cultural leadership to take over. “Stars are in to instill such understanding of others systematically goal to be pursued; moulds one pragmatic one; the spies of heaven” ― (Hawaiian saying). through cross-cultural leadership. l Motivate each constituent cultural group; l Conflicting behaviour is minimised leading l Shonhiwa is a chartered director (SA) Culture is a distinctive way of living guided by a common l Reward collective not unitary behaviour. to a more productive society; and has authored books on leadership. He value system which distinguishes a group of people as The application of this leadership philosophy l Competition is on equal footing between writes in his personal capacity. a collective. This entails shared ideas, customs, beliefs and social behaviour bringing a “we vs them” perception. Leadership is simply the art of influencing others to accomplish a common good. John Quincy Adams observed: “If your actions inspire others to dream more, learn more, do more and become more, you are a leader”. Summation of the two definitions leads to cross-cultural leadership as the ability to positively influence people of different cultures to perceive a common goal and accomplish it as a cohesive group. For this to happen the leader must: lUnderstand all constituent cultures comprising the Tough economy dailynews courier express slows SA car sales It’s like HE motor industry in South Africa is feeling the brunt of the country's widespread retrenchments that are hitting all sectors hard, significantly reducing you delivered Tconsumers’ spending power. NEW Ghana Msibi, WesBank executive head of motor division, said consumers simply could not afford to replace it yourself their vehicles, let alone enter the market for the first time. The reality of the country's struggling economy is evident in regular reports of new rounds of retrenchments across different industries. In the first half of 2019 alone, a litany of major corporates announced significant job cuts, including Standard Bank, Absa, Group Five, Dunkin Donuts, PPC Cement, Tiso Blackstar and Tongaat Hulett. Nkazi Sokhulu, co-founder and chief executive of credit life insurance brand Yalu, described this as a worrying time, saying the main concern was what to do about workers’ loan payments should they be retrenched. Consumers might have enjoyed some reprieve from the interest rate cut in July, but the motor industry did not. New vehicle sales continued their downward trend, according to figures released by the National Association of Automobile Manufacturers of SA (Naamsa). Naamsa reported that aggregate domestic vehicle sales at 46 077 reflected a decline of 1 779 units or 3,7 percent GET YOUR PARCEL compared with 47 856 vehicles sold in July last year. July’s new passenger car market registered a decline of 2 617 cars or a fall of 8,2 percent to 29 477 units compared with the 32 094 new cars sold in July last year. Msibi said while the interest rate cut in July was welcomed DELIVERED both industry and consumers, it might take some more incentive from the Reserve Bank to jump-start the economy Routes and entice consumers back into the new vehicle market. IN THE FASTEST +$5$5( %8/$:$<2 “WesBank experienced its best month this year in applications received for finance. While this clearly didn’t +$5$5( 087$5( translate into sales, it is reassuring for the industry that consumers are at least shopping for vehicles,” he said. +$5$5( %(,7%5,'*( Passenger car sales on dealer floors fell by a significant 7,6 percent in July 2019, highlighting the extremely EXPRESS UP TO challenging economy for business at present. This was POSSIBLE despite an additional trading day in July, which was the DELIVERY 20KG/PARCEL longest selling month this year, with 23 working days. TIME IN ZIMBABWE Mark Dommisse, chairperson of the National Automobile 24 HR EXPRESS DELIVERY Drop and pick up points country-wide Dealers’ Association, said the 25-basis point interest rate cut in July was reassuring. “However, in order for the rate cut to have any significant impact, it needs to be accompanied by robust structural reforms that deal with key underlying issues in the economy. "We implore the government to aggressively pursue its FOR INQUIRIES WHATSAPP, SMS OR CALL US ON efforts to stimulate growth.” Dommisse also said that the rise in bank finance O787365818; 0732365818; 0719365818 applications was encouraging. “Affordability remains a key factor in motorists’ purchasing decisions. We have seen a substantial drop in the luxury segment of the market. See our collection points below: “On a positive note, light commercial vehicle (LCV) sales at dealer level made a comeback, but year-on-year LCV Second Floor, Bluebridge South, Eastgate Complex, Harare, sales are down. The medium and heavy commercial vehicle %XODZD\R2IÀFHV6XLWH0DVL\H%XVLQHVV6XLWHV 3ULQFHVV)ODW )RUWVWUHHWWK$YHQXH%XODZD\R segments also showed a strong recovery this month. “The continued decline in new vehicle sales reflects the current political and economic environment,” said Dommisse. - IOL Page 14 | August 8-14 2019 The Financial Gazette Column How greedy landlords rip off tenants

HERE has developed lately a tendency through irregular rental connection with the carrying of to raise a defence, after committing a breach that the amongst some landlords to, through demands induced solely by any industry, business, trade or contract was invalid because it was verbal, will not Tavarice, take advantage of the dire a desire for aggrandisement. occupation. This definition also suffice. Whether written formalities are complied with shortage of accommodation and office space It is unfortunate that many includes any ground, parking or not, a lease shall be valid. However, parties to these by demanding outrageously exorbitant rentals tenants are ruthlessly abused space, garage, outbuilding, agreements are encouraged to have them in written form from tenants. These excessive or extortionate when the law has sufficient workers’ quarters or other so that in the event of a dispute, the intentions of the rentals are usually arrived at arbitrarily without safeguards to protect their improvements on the premises. belligerents can easily be interpreted. For the purposes the approval of tenants. rights. A residential or suburban of the Act and the statutory instruments, the terms The impunity with which some landlords Tenants who rent house converted into offices or “letting” or leasing also include sub-letting and sub- violate lease agreements takes many commercial premises can to serve other purposes falling leasing, respectively. Consequently, a “lessee” includes dimensions including: charging rentals in exploit remedies provided under the above definition any sub-lessee and a “lessor” means any sub-lessor. foreign currency, demanding usurious interest for under the Commercial would therefore be subject to The regulations established what is called a Rent on overdue rentals, increasing rent with Premises (Lease Control) Act this regulatory regime. It is also Board (“the board”), which is a quasi-judicial tribunal shocking rapidity and threatening or evicting [Chapter 14:04] as read with Legal Matters apparent that any office building with jurisdiction among other things to determine what the Commercial Premises converted into a residential tenants on baseless and often illegal grounds. with is fair rent referred to in the Act as the “open market (Rent) Regulations Statutory property will not be covered by The landlords justify their cruel and illegal VOTE MUZA rental”. This means a rental which is comparable with actions by citing inflation and the need to Instrument 676 of 1983. the Act and its accompanying the rental for comparable premises in a comparable keep up with other market rates. While it is These laws do not apply to regulations. location, taking into account other factors like any normal acknowledged that rentals may be increased, letting and hiring of residential properties. The According to these laws, a “lease” means a anticipated increases in rentals during the period of lease such increases must be reasonable, fair and phrase, “commercial premises” is defined in written agreement or an unwritten one. Thus, of the parties. Either landlord or a tenant may apply to justified. It is wrong to hold tenants to ransom the Act and means any premises used for or in the habit by some tenants or landlords to want the board for the determination of a fair rent, or variation of a rental during “The impunity with which the period of lease. The some landlords violate lease application must agreements takes many be accompanied dimensions including: by certain details charging rentals in foreign provided for in currency, demanding the regulations. Upon receipt of usurious interest on the application, overdue rentals, increasing the board may rent with shocking rapidity request any and threatening or evicting information tenants on baseless and from the summoned often illegal grounds. The party, including landlords justify their cruel ordering an and illegal actions by citing inspection of inflation and the need to the premises. keep up with other market It is up to the tenants in those rates” buildings to either individually or as a team, approach the board for redress. Any party that is dissatisfied with the decision of the board may appeal to the Administrative Court. A failure to comply with some important provisions of the regulations is a criminal offence and upon conviction, an offender may be imprisoned for up to six months. The havoc that has been perpetuated by landlords on the property market must be brought in check. It appears that the propensity to flout laws and insist on illegalities has been encouraged by the general anarchy that is pervading our society. The onus is on the powers- that-be to promptly address the various pitfalls that exist in this area to stop the exploitation of tenants and stop other vices prevalent therein. l Muza, a Harare-based legal practitioner, writes in his personal capacity. [email protected] Namibia inaugurates R4,2bn port terminal

AMIBIA has inaugurated a new Chinese-built port terminal, which doubles its container capacity and Nis also intended to give tourism a boost. The 40-hectare platform, reclaimed from the sea at Walvis Bay, some 400 kilometres west of Windhoek, is to become a strategic gateway to emerging markets of southern and west Africa. The terminal was built by state-owned China Harbour Engineering Company with funds from the Namibian government and the African Development Bank. The cost of the installation is R4,2 billion. “The completion of the container terminal expansion puts us on a firm trajectory towards realising our dream of transforming Namibia into an international logistics hub,” President Hage Geingob said at last week's inauguration ceremony. A State of Logistics report released by the Walvis Bay Corridor Group last year said the new terminal would increase the capacity of the port to 750 000 containers per year from 350 000, with the potential to go over a million in the future. Geingob said “Zambia, Angola, Democratic Republic of Congo, Botswana, and Zimbabwe are among the main land linked, now sea-linked markets for sea-borne transit cargo by volume going through the port of Walvis Bay”. The terminal also includes a dedicated cruise liner berth and a marina breakwater which “strengthens our capacity to attract tourists to our shores”, he said. According to a 2018 finance ministry report, Walvis Bay has been handling around 3 000 vessels and six million tonnes of cargo every year. - Fin24 The Financial Gazette August 8-14 2019 | Page 15 Column Resignation without notice: Employer’s dilemma?

HE employment relationship can be terminated promised to do. In general, the injured party has to serve notice. The proper course of action is through various means, and these range from the right to claim specific performance if he is for the employer to institute a claim for damages Tdismissal, death, retirement and resignation. The ready to carry out his own obligation under it, and provide compelling proof of damages with main focus of this article is on resignation without notice but the court has a discretion to order it or not. an easily identifiable quantum. There is no logic and the remedy that accrues to the employer. This should not be mistaken for refusal to in assuming that these damages equate to the Resignation relates to the unilateral decision made by accept a letter of resignation. However, the remuneration the employee would have earned the employee to terminate the contract of employment. The breach relates only to failure to give notice and had he or she served the notice period. As such it issue of resignation brings about a lot of questions which the employee will be ordered to serve notice becomes the duty of the employer to justify any range from what constitutes a resignation? How should it be as per the terms of contract. While this is not money that would be quantified as damages. communicated? Can the employer refuse to acknowledge provided for in the Labour Act, the remedy was The principles applicable in claiming these resignation by the employer? The current employer’s granted in the following South African cases: damages were set out in the following South dilemma is on employees that resign without serving notice Benjamin Brian Makumbe Nationwide Airlines (Pty) Ltd v Roediger and African cases: South African Music Rights and what would be the remedy for the employer. Another (2006) 27 ILJ 1469 (H) where the Organisation v Mphatsoe [2009] JOL 23 476 It has been common practice that where an employee not include unlawful deduction of benefits employees were tied to fulfil the conditions of (LC), National Entitled Workers Union v CCMA resigns and does not serve notice, employers have had the equivalent to notice not served. The remedies their contracts of employment. This was also (2007) ILJ 1223 (LAC) and Labournet Payment tendency to deduct amounts from the employee’s benefits for the employer are specific performance and further explained in the Santos Professional Solutions (Pty) Ltd v Vasloo (2009) ILJ 2437 that are equivalent to the notice that was supposed to be damages. Football Club (Pty) Ltd v Igesund 2003 (5) (LC). served. But is this lawful? Let’s see what the Labour Act Suing for specific performance encompasses SA 73 (C) where the latter was tied to fulfill So is forfeiting an employee’s benefits says on allowable deductions on remuneration; Section 12 entitling the employer to hold the employee the conditions of his contract of employment because they did not serve notice as per their A subsection 6 of the Act states that; to the contract demanding that he or she gives without summarily serving notice and deciding contract lawful? Food for thought. No deduction or set-off of any description shall be proper notice and render services for the notice to leave for greener pastures. Ref: Tapiwa G. Kasuso – Resignation made from any remuneration except: period. Specific performance is an equitable and The second and last remedy for the employer implications under Zimbabwe Labour Law- (a) where an employee is absent from work on days discretionary remedy issued by the court which is claiming damages arising from breach of February 2017 other than industrial holidays or days of leave to which he compels a contracting party to do he or she has contract as a result of the failure by the employee l Makumbe writes in his personal capacity. is entitled, the proportionate amount of his remuneration only for the period of such absence; (b) amounts which an employer is compelled by law or legal process to pay on behalf of an employee; (c) where an employee has received an advance of remuneration due, the amount of such advance, up to an amount not exceeding 25 per centum of the gross remuneration owed; (d) by written stop-order for contributions to insurance policies, pension funds, medical aid societies, building societies, burial societies and registered trade unions; (e) by written consent of an employee, for repayment of money lent by the employer on terms that have been BINDURA NICKEL CORPORATION LIMITED mutually agreed to between the parties concerned; (f) an amount recovered for payments made in error. The above extract from the Labour Act does not give an Trojan Mine Road, Bindura, Zimbabwe employer the right to deduct any amount from an employee for failure to serve notice. If so what is the remedy then, if P.O. Box 35, Bindura any? Telephone: +263 (0)271 6231–6; 7951–66; 7821–27 Some labour professionals have weighed in more on the principle of Ubi Jus Ibi Remedium, which states that where Fax: +263 (0)271 7572; 7189; 7184; 7577; 6004 one’s right is invaded or destroyed, the law gives a remedy to protect it or damages for its loss. This right to a remedy Company Registration number: 552/1966 therefore includes a right of action. The general view as prescribed by law is that, wherever a right exists there is also a remedy. Unfair resignation or resignation without notice is not illegal nor is it classified under unfair labour practices in CAUTIONARY STATEMENT the Labour Act. However, where it happens there are two remedies that accrue to the employer, and these do Sale and Purchase Agreement between Asa Resource Group (Plc) and a Third Party:-Shareholding in Bindura Nickel Corporation Limited (“BNC” or “the SA bankers union plans Company”) largest strike since 1920 Shareholders are advised that the ultimate holding company of BNC, Asa Resource Group OUTH Africa's biggest financial union is threatening to disrupt the country's banking industry by leading Sits 73 000 members on a strike next month, in what Plc (currently under Administration), has entered into a Sale and Purchase Agreement would be its largest industrial action in almost a century. The two-day walkout will target lenders that have (“SPA”) with a third party in relation to the 74.73% shareholding in BNC. The third party consulted staff over job cuts in recent months and other institutions that employ members of the Sasbo union, ac- is a Zimbabwean based mining entity with interests in the mining and production of cording to General Secretary Joe Kokela. Sasbo wants banks to consider options other than re- ferrous metals, non-ferrous metals and precious metals. trenchments and begin a programme to re-skill employ- ees whose positions are at risk, he said in an interview on Monday. "If the banks say no, the struggle continues and we will The envisaged transaction may have a material effect on the price of the Company’s make sure we shut down the system until they come to their senses," Kokela said. "We can even make sure re- securities. Accordingly, Shareholders are advised to exercise caution when dealing in the plenishment of ATMs are kept to a minimum so that the country runs short of money." Company’s securities until a full announcement is made. South African lenders are cutting jobs as they seek ways to lower costs and contend with slow economic growth and fresh competition in the industry from branch- less, digital entrants such as TymeBank and insurer Dis- By order of the Board covery. Job cuts in the country are particularly sensitive as the unemployment rate has risen to 29 percent, the highest Bindura Nickel Corporation Limited in more than a decade. Absa Group, Standard Bank Group and Nedbank Group have all consulted with Sasbo in recent months M A Masunda over cuts. Absa is restructuring operations across its busi- ness units, Standard Bank is closing 91 branches, while Board Chairman Nedbank is in talks with about 1 500 employees over job 6 August 2019 cuts or redeployments, Bloomberg News reported last week. "Standard Bank has made strides to ensure that im- Directors: M A Masunda (Chairman), B Manhando (Managing Director), J H L Lampen (Finance Director), pacted employees are absorbed into other roles within the O A Barbeau, O M Chidawu, A P Danso, T R Muganyi. bank,” a spokesman said in an emailed response to ques- tions. "Where that has not been possible, or employees have opted not to apply for other positions, we also set aside funds to assist employees acquire new skills." Sasbo, founded in 1916, has not yet informed any of the country's lenders of its plans, Kokela said. - Fin24 Page 16 | August 8-14 2019 The Financial Gazette Column AI predictions: Human judgment remains vital Sholto Macpherson example of artificial intelligence (AI) today. prediction,” says Gans, a renowned Australian ‘Digging into the technology, it became clear economist who moved to Toronto in 2010. N THE mid-1990s, economist William that the benefit of machine learning was a drop Prediction is the process of filling in missing Nordhaus had a radical idea for valuing the in the cost of prediction,’ says Avi Goldfarb, an information. You take the information (or data) Iinvention of the light bulb. How much effort, econometrician who specialises in the science you have, and use it to generate information he wondered, would it take to produce a similar of quantitative marketing. With Ajay Agrawal you don’t have. Given the great advances in amount of light with a wood fire? The answer: AI, calling it “cheap prediction” seems a little to produce the equivalent of an hour of light underwhelming. It suggests we haven’t yet generated by a bulb, wood would need to be reached a drop in the cost of intelligence; we’re chopped 10 hours a day for six days. only reducing the cost of one part of it. Yet Nordhaus went on to create a price index this part is a critical step. Machine learning’s going back to sesame-oil-powered lamps from probabilistic model mimics our own learning Babylonian times, showing that the real benefit and Joshua Gans, his fellow professors at process, a process that has developed through of the light bulb was a dramatic fall in the cost Toronto University, he has co-authored the book millennia of evolution. of artificial light. Researchers have since used Prediction Machines: The Simple Economics of In On Intelligence: How a New Understanding Nordhaus’s econometric approach for valuing Artificial Intelligence. of the Brain Will Lead to the Creation of Truly technology to examine the internet’s role in Better forecasts Intelligent Machines, co-author Jeff Hawkins lowering the cost of search; in transporting, Not everyone sees machine learning in such (whose invention of the PalmPilot popularised verifying and replicating information; and in a reductive light. Computer science academics hand-held computing) argues that prediction is tracking behaviour. emphasise the potential of AI’s ability to learn, the basis for human intelligence. “Prediction And now three academics in Canada have and the ramifications this holds for training is not just one of the things your brain does,” The cortex is an organ of prediction.” followed this process to cut through the hype robots and the like. “But that’s not the AI we have declares the book. “It is the primary function of Prediction Machines explains that machine learning is around machine learning, the most popular today. It hasn’t gone past that one thing ― cheap the neocortex, and the foundation for intelligence. not on its own a tool to replace professionals; it is merely a tool for improving prediction. And prediction is one of several inputs into the process of decision-making, the authors argue. Another is that undervalued input called judgment. “Prediction facilitates decisions by reducing uncertainty, while judgment assigns value,” the authors write. Luckily for accountants, value is a difficult thing for machines to assess. Machine learning may speed up the process of making predictions by categorising and sorting data and Worth picking out patterns. But turning those lessons into business “NEWS Knowing” advice, and prioritising them in terms of success, requires the analysis of a wide-ranging combination of emotional, intellectual and practical considerations. “In economists’ parlance, a judgment is the skill used to determine a payoff, utility, reward or profit,” the book explains. “The most significant implication of prediction machines is that they increase the value of judgment.” “You can appreciate what else people do to make a decision,” Gans says. ‘They can’t just predict stuff; they also There is a new chef in town, serving you with all have to know what the trade-offs are ― and these things only come from people. Then you start to understand why the news worth knowing straight to your phone it’s really hard to create a fully automated thing because we may not understand the nature of decisions the Possibly best treated robot needs to make.” as a cheap prediction DAILY!! When will AI move generator, artificial beyond cheap prediction intelligence represents to making judgments? a useful input in Few agree on the timeline decision-making, but for a breakthrough of that human judgment will magnitude; the predictions remain a must-have. range from imminent to almost never. “Someone might switch on a robot AI that works it out itself and just becomes sentient. I’m not a computer scientist so I can’t give you a probability, but my feeling is that it’s not for a long time,” Gans says. “We’ve got a lot to do with the AI we currently have, and that’s going to keep people occupied for the moment.” A wave of machine learning applications is breaking across the business world. One of the latest is Google’s word processor for Google Docs, which automatically corrects grammar in real time. AI is being quickly built into other programmes, from SME accounting software to enterprise resource planning (ERP). Business warms up to Gans cautions against believing everything you hear. “I Mnangagwa’s promises wrote the book because I was concerned that people would say, ‘Buy my magic AI!’ and it would turn out to be not that good,” he explains. “I don’t think there’s any need to rush to add it to your operations.” AI in accounting The use case for accountants in practice is more clear- cut. “Accounting does have data going for it, so it’s only a step away from being put to use,” Gans says. Forensic accounting and auditing are already making way for algorithm-driven programmes that process huge volumes of transactions. These programmes can pull up a shortlist of transactions to check for fraud or error. SMS the word “FIN” to Will accountants be replaced by machines then? Goldfarb believes this is unlikely. Fifty years ago, accountants spent most of their time doing arithmetic. When the spreadsheet HOW TO arrived, it dramatically lowered the cost of doing that 33567 arithmetic and helped clients make decisions. Before spreadsheets arrived, one would have expected the arrival SUBSCRIBE (Available to Econet subscribers only) of such a powerful decision-making tool to reduce the need Subscribe for ONLY 12c/day for accountants. “But the numbers have remained steady,” Goldfarb points out. “Most of the tasks that accountants do today they will not be doing in 10 to 15 years from now,” FINGAZ LIVE is the most informative and most efficient daily mobile news platform in Zimbabwe on he predicts. “That doesn’t mean we won’t have lots of accountants because these tools will enable accountants to breaking national news, relevant economic news, trending societal issues and latest sporting news. better serve clients, which will open up new opportunities.” And, of course, accountants need to understand the www.fingaz.co.zw booking@fingaz.co.zw The Financial Gazette @FingazLive capability of machine learning and other technologies to improve their clients’ businesses. 2nd Floor, Green Bridge South, Eastgate Complex, Harare, Zimbabwe. Tel: +263 (242) 781571-8 l Macpherson is a technology journalist and editor of the accounting technology blog DigitalFirst.com. Reproduced with permission from ACCA’s Accounting and Business magazine accaglobal.com/ab. The Financial Gazette ZIMBABWE DEFENCE FORCES SPECIAL FEATURE August 8-14 2019 | Page 17 ZDF key to socio-economic development

Gilbert Myambo and Maclean Mutede

HE Zimbabwe Defence Forces existence is en- shrined in the constitution under section 212 of Tthe constitution. The function of the Defence Forces is to protect Zim- babwe, its people, its national security and interests and its territorial integrity and to uphold the Constitution. It is against this background that the Zimbabwe De- fence Forces has always and will continue to strive to create a conducive environment for sustainable socio economic development through the maintenance of peace and tranquillity. The peace and tranquillity currently prevailing in the country is key in attracting and boosting investor confi- dence as well as tourist arrivals. In addition to its primary constitutional mandate, of protecting Zimbabwe, its people national security and interests and its territorial integrity, the Zimbabwe De- fence Forces has also been involved in community assis- tance programmes aimed at improving the livelihoods of Defence Ministry secretary Mark Grey Marongwe the ordinary citizens. Some of the projects that have been undertaken as part of community assistance programmes include the construction of classroom blocks, clinics, small bridges just to mention a few. A good example of ZDF current efforts to improve the livelihood of communities is the construction of two bailey bridges in disaster affected areas of Chimanima- ni and Chipinge where roads and bridges were washed away by Cyclone Idai. This is being done with the realisation that road infra- structure is a very critical for the people to access health facilities, schools and other critical amenities. Furthermore, the ZDF has is involved in demining activities particularly along our borders where there are landmines planted by the colonial government of Ian Smith. The areas that are mine-infested restrict agricultur- al land use, access to water as well as hinder the con- struction and maintenance of infrastructure thus denying these areas progress towards socio-economic develop- ment. As a result of ZDF demining programme, the com- pletion of the demining of the Victoria Falls to Mlilizi area enabled the use of the land for tourism purposes, ag- ricultural production and paved way for the construction of the hydro-electric power project at the Batoka Gorge. The Burma valley area was also cleared and is now being used for banana production. Demining has also been carried out at Sango border post, Nyamapanda bor- der post, and Machipanda (Forbes) border post to allow for the expansion of the border posts. The information provided above highlights some of the activities being carried out by the ZDF towards ful- filling its constitutional mandate. Page 18 | August 8-14 2019 The Financial Gazette National News Moyo, Old Mutual ‘Zim power cuts brawl gets nasty to end in 2022’ Nelson Gahadza and the smaller thermal stations. They HE nastiest boardroom bust-up pavement, according to CNBC Africa. Staff Writer have surpassed their life span, but we do in recent South African-corpo- A second case brought by the on- not have a choice,” he said. Trate history has left the chairman and-off chief executive to declare Old IMBABWE’S electricity generation Thermal power stations, according to and chief executive officer of the na- Mutual’s board as delinquent directors, capacity is expected to improve by Chizengeya, have life span of 35 years, tion’s oldest insurer with bloodied nos- still has to be heard. 2022 when most projects currently but, the country’s thermals have spanned es. Neither one is backing down. The battle spilled into the public Z underway start feeding into the national to over 75 years. Nor would they, it’s not in their arena at the end of May when Old grid, The Financial Gazette has learnt. He said at Hwange, current production character. But their fight is now hurting Mutual announced it had suspended This comes as power generation at of around 476 MW need to be maintained, the reputation of Old Mutual, a finan- Moyo, citing a “material breakdown in main power stations, Kariba and Hwange and bring on unit six, which is under main- cial-services company started in 1845 trust and confidence.” It later clarified have been on an all-time low, resulting in tenance. that has businesses spanning money that the dispute involved a conflict of power outages lasting more than 18 hours. He noted that the small thermals con- management to consumer lending, and interest related to an investment firm Additionally, Kariba which is seen halting tinue to run, producing 70MW, despite operations in 12 other African coun- Moyo founded before joining Old Mu- Trevor Manuel power generation by October, due to low high operating expenses. tries. tual. Moyo was dismissed three weeks water levels, is currently producing 180 The ZPC executive added that other As an anti-apartheid activist, Trev- later. The feud has been marked by megawatts (MW). projects aimed at improving the country’s or Manuel, 63, was jailed several accusations and counter-allegations of Bernard Chizengeya, the Zimbabwe power situation include the Batoka proj- times, and was eventually appointed conflicts of interest by both parties. The Power Company business development ect, which is expected to come on board finance minister, where he oversaw stock is down 11 percent since Moyo manager, said it was important for the by 2027. the country’s longest stretch of eco- was first suspended, the biggest drop southern African country to focus on ther- “We have Gairezi targeted for comple- nomic growth. Zimbabwean-born in the five-member FTSE/JSE Afri- mal power stations to boosts electricity tion by 2023 and solar projects at Munyati, Peter Moyo has worked in the top tier ca Life Assurance Index, and is at its generation. which we cannot start at the moment due of South Africa Inc for more than a de- lowest level since the company moved “The power situation at the moment is to lack of funds. On completion, these cade, and has sparred separately with its main listing back to Johannesburg not rosy,” he said, adding that the country projects are expected to unlock about 2 the nation’s top mobile-phone network from London last June. is expecting to have surplus energy within 250 MW of new capacity,” he said. operator and biggest retirement-fund “We’re saddened that our repu- the next three years when most projects are Chizengeya said it was also crucial for administrator. tation is taking a hammering,” Old completed. Zimbabwe to import power as a temporary “I cannot see a scenario where the Mutual spokeswoman Tabby Tsengi- Kariba, the country’s flagship power solution to keep industries running. two gentlemen who are on opposite Peter Moyo we said by phone. “But we have station with a total generation capacity of Zimbabwe currently owes South Afri- ends of the ring, so to speak, survive maintained all along that this isn’t our 1050MW following the addition of two ca’s Eskom and Mozambique’s Hidroelec- this saga,” said Morris Mthombeni, their first round in court and arrived choice. We’re trying to speak to the more units with a total generation capacity trica de Cahora Bassa (HCB) about US$74 faculty director at the University of for work on Wednesday morning after issues at hand, which is that there has of 300MW in a 2014 project, is now feel- million, which resulted in the two power Pretoria’s Gordon Institute of Business a ruling temporarily reinstated him. been an irreparable breakdown in trust ing the brunt of climate change as water utilities reducing exports supplies. Science. Old Mutual immediately fired back and confidence.” levels continue to deteriorate. Industry has bemoaned power shortag- “It’s not helpful. People are para- by seeking leave to appeal the judg- Old Mutual is a “good company Chizengeya said to avoid relying on es, which have significantly cut down on lysed because of the leadership vacu- ment, sending Moyo back home that and that’s why I am desirous of going hydro power, Hwange and other small production and increased cost since alter- um created when a board and its chief same afternoon. The drama continued back,” Moyo said. thermals should now be given more pri- native energy sources such as generators executive are in a public spat.” when a bomb scare at the company’s Manuel directed questions back to ority. are unsustainable. Moyo, 56, emerged victorious in headquarters had staff standing on the Old Mutual. — Moneyweb “What we need is to support Hwange [email protected] The Financial Gazette July 8-14 2019 | Page 19 Companies & Markets Relief for bureaux de change Omega Ukama of funding foreign tuition fees, medical expenses and Senior Staff Writer foreign subscriptions require relevant documentation, and will pay the funds directly to the external beneficiary HE Reserve Bank of Zimbabwe (RBZ) has ex- or service provider. tended the deadline of a US$15 000 minimum And with trades of more than US$2 000, individu- Tcapital requirement for bureaux de change to De- als and small businesses are required to provide relevant cember this year. documentation and open an account with the same bank In April this year, the central bank licensed 26 new as the bureau de change, which will make the payment bureaux de change operators to facilitate the smooth directly to the foreign party. operation of the inter-bank foreign currency exchange Meanwhile, the momentum of the parallel market, market, which was introduced in February. However, the which was until recently, the only currency exchange interbank market has continued to play second fiddle to market, has not let off despite the introduction, in Febru- the parallel market. ary of an interbank market. “For bureaux de change already operating, the dead- And even though the reserve bank has reportedly line for depositing the local currency equivalent to The RBZ has extended the deadline of the capital requirement for Bureaux de change. licensed more than 45 bureaux de change, while more US$15 000 at the prevailing interbank market exchange than US$650 million is said to have been traded on the rate, has been extended to December 31, 2019,” the cen- a US$10 000 daily trading limit for Bu- only sell and purchase foreign currency interbank market, business is still reeling from foreign tral bank said in a recent directive. reaux de change. of up to US$500 to from individuals and currency challenges. Bureaux de change that are owned by banks are, Several limitations, however, remain small businesses without asking for any Meanwhile, the spread between the buying and sell- however, exempted from paying the deposit. in place. And this, some say, has given documentation. ing rate for the United States dollar against the local unit This comes as the central bank, in a bid to sway activ- the informal market impetus. Also, bureau de change selling foreign on the interbank market, has been widening. ity from the informal to official markets, recently lifted For example, a bureau de change may currency to individuals for the purposes [email protected]

The foreign capital allowance gives a South African resident the opportunity to expatriate funds of up to R10 million per year. More South Africans move money offshore

N INCREASING number of South Africans have started to research their options on how to move Amoney offshore, according to Jonty Leon, legal manager at financial emigration at Tax Consulting SA. The company has also noted a large increase in individ- uals who are expatriating funds and investing these funds offshore. “There are various speculative reasons as to why people are moving money abroad. Some are financially emigrating due to moving overseas. Other reasons include better invest- ment opportunities abroad, the weakened rand and political instability,” says Leon. “Many mentioned that discussions regarding land expro- priation without compensation has led them to feel that their investments in South Africa are no longer secure.” Leon points out that the exchange control system regu- late the inward and outward flow of money in South Africa and it affects both individuals and companies. There are two main ways of expatriating funds from South Africa, namely the single discretionary allowance and the foreign capital allowance. The single discretionary allowance is for SA residents 18 years or older and with a valid SA identity document. This allowance is R1m per calendar year per individual. The foreign capital allowance gives an SA resident of 18 years or older the opportunity to expatriate funds of up to R10 million per calendar year. Prior approval is needed to expatriate funds under the foreign capital allowance. If a person wants to move actual South African bank notes abroad, the limit when entering or leaving SA is R25 000 per individual. When travelling between countries in the Common Monetary Area — South Africa, Lesotho, Na- mibia and Swaziland — the amount is unlimited. The exchange rate is another major determining factor as to when people take money out of South Africa. “Moving money outside of South African when the rand is weak is like making a bad investment. Be sure to time the expatriation of your money according to the exchange rate,” says Leon. “Compliance is another aspect of funds expatriation that needs to be carefully considered and adhered to. Those look- ing to expatriate funds must ensure they meet all the regula- tions related to the transaction.” Something as seemingly menial as providing an incor- rect statement in any declaration to the SARB can lead you to be found guilty of an offence in terms of exchange control regulations. If you are found guilty of such an offence, you could be fined up to R250 000 or up to five years in prison — or both. — Fin24 Page 20 August 8-14 2019 The Financial Gazette Motoring Hyundai Tucson Sport Two engine options with more power

transmission, complete with paddle shift- ers in this instance, has shrugged off the TOP GEAR with complaints of old and now delivers swift Richard Wiley and smooth shifts with the bonus of excel- lent responsiveness thanks to the absence F EVER a brand stood out for repre- of slip. senting the Korean commercial re- The meaty torque output also allows naissance in the automotive world, it for higher gearing with reduced engine I revs and lower mechanical noise lev- is Hyundai. It’s not that long ago that the brand was seen as a cheap alternative to els, but that fancy sporty exhaust system established European and Japanese brands makes itself heard to an annoying extent but in the last decade in particular, Hyun- at 120km/h. The drone is simply too intru- dai has pulled out the stops and offered sive, the more so in the back, but let it be passenger vehicles (and commercials too) known that this smallish four certainly de- that in perception and ownership terms livers the goods in performance terms and have stood shoulder to shoulder with those thanks to the turbo, it will be very much at old-established rivals. home at altitude. In my view, the vehicle that really Another negative directly related to the started the renaissance was the iX35, an Sport mods concerns the over-sensitive SUV that brought a dash of style to the throttle response at low speeds. I’m sure SUV segment and with it a level of desir- this can be tweaked along the line, but ability that most competitors at the time on slightly greasy surfaces, it’s extremely could not match. Black alloys, side skirts and front lip are part of Sport package hard to avoid spinning the front wheels on Today, it is the Tucson (both the pro- take-off, especially when lock is applied. genitor and successor to the iX35) that My fi rst acquaintance with the 2.0 carries the fl ag for Hyundai in the mid- turbo D, complete with smooth-acting size SUV market, and worthy as it is, I 8-speed torque converter gearbox, was on suspect that off-take has not been at quite Killarney race circuit. To say the free-rev- the levels the SA importers might have ving nature of the engine came as a sur- anticipated. Pesky rivals such as the VW prise, as did the level of outright perfor- Tiguan and Toyota RAV4 are hard nuts to mance, is something of an understatement crack but that simply spurred Hyundai’s but it too suffered from easily-induced SA importers to add some fi zz to the range wheelspin which was hard to avoid on as demonstrated a couple of years back by damp surfaces. the introduction of the Hyundai Tucson In a track environment, the slightly Sport, a limited edition model unique to more immediate responses and greater rev the local market and one endowed with range of the petrol mill meant the 1.6 turbo lots of sporty accoutrements. won on points but let it be said that both The Tucson model range as a whole models exhibited surprisingly good stabil- underwent a signifi cant makeover in 2018 ity (Vehicle Stability Management is pres- and come mid-2019, Hyundai Automo- ent) and durable brakes under sustained tive SA decided to introduce gen 2 Sport provocation but let’s not pretend that the models based on the aforementioned chassis has received the same massaging upgraded model. The initial foray could as the power units. truthfully be described as a “toe in the wa- If the diesel trailed just a tad on-track, ter” venture which has acted as a trailblaz- it more than regained lost ground in a re- er for the two models recently presented to al-world environment. It offers genuinely the press in the Western Cape. surging performance and subdued me- Only the 1.6 Turbo petrol received the chanical clatter out on the open road and Sport makeover in 2017 but now, and how most important of all, it has none of the good this is to report, a Turbo D has also exhaust drone that spoiled the refi nement been added to the ranks. The former now of its petrol sibling. delivers 150kW/300Nm fed to the front Some of the rural roads we encoun- wheels via a massively improved 7-speed tered were of dubious quality and here both models coped well, the underlying dual clutch gearbox with optional manual Quad exhaust system lets everyone know this a Sport model override while the D offers up 150kW and fi rmness being offset by a well-judged a stump-pulling 460Nm torque peak that measure of pliancy notwithstanding those makes its presence felt from just 1 750 big, low profi le tyres. Unfortunately, it was rpm. those very tyres that generated a measure Again, the front wheels do all the of road roar on coarser chippings, but work, but in this case, an 8-speed torque overall, each model defl ects wind noise converter auto sees service, also with a and mechanical disturbances with aplomb. manual override option. Both motors offer If I’ve done my homework right, the notable increases in grunt over the stan- petrol models are made at a plant in the dard iterations thanks to some “after-mar- Czech Republic while the diesels hail ket” software tweaking that’s aided and from South Korea. As ever, my eye was abetted by some massaging of throttle drawn to the paintwork which shows a responsiveness about which more in a massive improvement over older Hyundai moment. models which were affl icted with copious Both models are based on the orange peel. range-topping Elite derivative which The red, petrol-powered version we telegraphs leather-clad seating and plenty started out in really showed off a wonder- of trinkets including Apple Car Play and ful shine and very high standards of panel Android Auto connectivity that allows for fi t but why on earth are the indicator stalks sat nav functionality via a mobile phone of the petrol and diesel models attached to connection. Add in powered seats, dual different sides of the steering column? climate control with rear feed, blind spot In a way, it seems incongruous to dress and cross-traffi c alert, reverse camera up a high riding SUV with sporting accou- and park sensors, electric windows and a trements, but past patterns suggest there large sunroof and you’ve got a very well- is a small market out there that wants to equipped SUV on your hands. combine practicality with a measure of As is the norm in this neck of the punch and lots of eye candy. Production woods, and de-rigeur when it comes to output is limited anyway, and despite the sportily-clad vehicles, the interior is all- Sport shares its leather-clad interior with Elite model higher price demanded for the Sport mod- black. At fi rst glance, the cabin exudes an els over the Elite models on which they air of plushness which is founded upon guess this Hyundai is no worse than its im- the unique-to-model black alloys that are telegraphing the model’s sporting over- are based, the extra outlay is reasonable the use of visually appealing materials, mediate rivals in this respect, so the interi- home to 245/45R19 rubber followed by tones while just managing to avoid an enough and most certainly visible to all and in the case of the upper surfaces, ma- or earns good marks for itself aesthetically mean-looking quad exhaust outlets, prom- over-dressed “Durban special” appear- onlookers. The local importers deserve a terials that are soft to the touch. A closer and in practical terms. inent side skirts, front and rear spoilers ance. round of applause for daring to be different inspection in bright light reveals a fair few It’s on the outside that the real differen- and a faux rear diffuser. All this sporting We set out in a 1.6 turbo and it soon and meeting what could be called niche scratchy plastics in the lower reaches, but I tiators are to be found. Most obvious are kit is sourced from Korea and succeeds in became apparent that the upgraded DCT demand. The Financial Gazette August 8-14 2019 | Page 21 Column Why team building sometimes fails

EAMS are required when people need to work can be structured in such a way that all the together towards a common goal. For teamwork to drivers of successful teams are incorporated Thave any impact, the work must be interdependent. in your team building programme. I am sure Organisations invest a lot of money in team building but for those who have attended team building does it work? What is at the core of successful teams? sessions sometimes you come back to the What are the best methods for building teams? office and you see no change in how people In 2012 Google, in a quest to understand how teams are collaborating. So why repeat the same function, embarked on a project code-named Project unsuccessful ways for building teams. Aristotle. They based this project on results from In the coming week, we will focus on what scientific research has found about teams. They other factors to consider before embarking studied all the factors that are on your team-building efforts. For example, normally considered when the personality composition of your team building teams ― personality matters. The current social network of your variables, demographic team matters. We will also share insights from variables and the level of do not take ownership of such goals. The third To build a successful team you need to research on what team building approaches interaction and collaboration factor was whether individuals feel that what incorporate findings from scientific research. work. among team members. they are working on is personally meaningful. If you fail to heed what scientific research lNguwi is an occupational psychologist They looked at more The fourth driver of team success is do the says, you may be wasting your time and and managing consultant with Industrial than 180 teams within the team members believe that the work they are money embarking on team-building efforts. It Psychology Consultants. He writes in his organisation and how they doing matters. is very possible that your team-building efforts personal capacity. HR Perspective worked. They collected an with enormous amount of data Memory Nguwi about each of these teams and the results are quite revealing. They discovered that at the top of high performing teams is what is called psychological safety. Harvard Professor Amy Edmondson (1999) says “Psychological safety is a belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns or mistakes.” In practice, my experience in consulting agrees with this finding. I have observed people in group meetings for example where they “agree” with the leadership on issues being discussed but the moment they step out of the meeting they start raising issues with their colleagues about what was being proposed. You often hear words like “it does not work”, “it's a waste of time” and other such statements that show that the system does not tolerate divergent views, especially those that do not “I have observed peo- support the leadership ple in group meetings agenda. for example where they As a result, such “agree” with the lead- people will not support ership on issues being whatever cause the discussed but the mo- leadership is trying ment they step out of to advance. They will the meeting they start support the cause when the leader is present raising issues with their but in private, they will colleagues about what be doing everything was being proposed. possible to discredit You often hear words the proposals. like “it does not work”, To foster “it's a waste of time” psychological safety and other such state- in a team you need to ments that show that allow team members the system does not tol- to voice their concerns erate divergent views, on any issues without especially those that do facing prospects for not support the leader- follow up censure. ship agenda.” You must create an environment where team members can acknowledge their own mistakes without being punished for disclosing those mistakes. The team leader and all team members must create an environment that allows individual team members to take ownership of issues. Blaming others or the environment is unlikely to create the psychological safety required for the team to function effectively. There is a lot that can be done to create psychological safety that will make sure your teams succeed. Project Aristotle by Google pointed out that out of all the other important factors about working with a successful team, psychological safety was the most important of all of them. Before you embark on that team-building exercise assess psychological safety and work on gaps identified before wasting money climbing mountains and other such activities aimed at building teams. In the same study, Google identified other important factors but they are less influential than psychological safety. In the same study, they discovered that the team needs to have dependable team members who will deliver on their promises for the team to be successful. If team members are not reliable and renege on their side of the agreed goals and targets, the team will not succeed. This includes team members honouring their commitment to delivering high-quality work for the benefit of the team. They also identified goal clarity as one of the drivers' successful teams. When the goals for the team are clear and each team member is clear on how they connect to the team goal, the team succeeds. In practice, teams are set up with goals that are imposed and not agreed and naturally, the team members Page 22 | August 8-14 2019 The Financial Gazette Column Distortions in capital gains tax regime INANCE and Economic the proposed regime. in Zimbabwean currency, gains in terms of s38 and 39 shall be calculated Development minister, Professor Paying capital gains tax in rather ...where any such separately and paid in the appropriate currency FMthuli Ncube, presented the Mid foreign currency transaction results in a relative to each part”. The separate computation as Term Fiscal Policy on August 1, 2019. The minister retained capital gain being received envisaged by s37 is that in a part foreign currency Before the budget, I expected him to the laws on payment of by or accruing to or in and part Zimbabwe dollar sale, one could possibly address the potential capital gains tax taxes in foreign currency favour of a person in whole be required to pay capital gains tax in one currency distortions arising from the conversion of notwithstanding the agenda or in part in a foreign whilst at the same time experiencing capital loss United States balances into RTGS$ on a to promote the Zimbabwe currency, capital gains tax in the other currency, or when the overall position one-to-one basis through SI33 and to deal dollar as the sole legal tender at the rate specified … shall could have been a loss. This presents distortions, with the form of currency for purposes in domestic transactions be paid in foreign currency subjectivity and administrative complexity in the of remitting taxes to ZIMRA following as articulated in SI142. on the capital gain or on capital gains tax regime. the banning of foreign currency use Therefore when a specified Tax Matters such portion of it that is The new rates of capital gains tax through SI142. Of these two, the minister asset is sold in foreign with equivalent to the portion As expected, the minister addressed the addressed the first issue but distortions still currency, capital gains tax Marvellous Tapera of the total transaction distortionary effect brought about by SI33 of 2019 exist. With regard to the payment of taxes is required to be paid in denominated in foreign which provides among others that for accounting in foreign currency, he reinforced that foreign currency. This is mentioned in currency”. This is somehow repeated by and other purposes, assets and liabilities held prior taxes are to be paid in foreign currency on the Finance Bill, which provides that “… s37 of the Finance Act, which provides to February 22, 2019 and valued and expressed in foreign currency transactions. This article it shall not be deemed for the purpose of “where only part of the capital gains are United States dollars shall be deemed to be valued seeks to provide a rundown of the changes the Capital Gains Tax Act [Chapter 23:01] received by or accrued to or in favour of a in RTGS dollars at par with the United States dollar. specific to capital gains tax regime and that all transactions involving the sale person in a foreign currency, the amounts This has the effect of converting cost base of specified highlight the remaining sticking issues of or other disposal of a specified asset are of any tax due on both parts of such capital assets in United States dollars to a weaker RTGS dollar on a 1:1 basis, and thereafter restricted and yet the selling price of those assets could be inflated as it accords with the interbank rate, resulting in an artificial capital gain. In order to cushion taxpayer from the impact of SI33, the government has proposed a capital gains tax of 5 percent on proceeds in respect of immovable property sold prior to June 24, 2019. For disposals or sales after June 24, 2019, capital gains tax rate remains at 20 percent of the capital gain. It is possible capital gains tax may be levied where there is none in real terms. Taking for example a person who bought a house in 2017 for US$100 000, (i.e. RTGS$100 “For disposals or sales 000 because of after June 24, 2019, capital SI33) and the gains tax rate remains at property is sold 20 percent of the capital now to a buyer gain. It is possible capital who is willing gains tax may be levied to pay ZWL450 where there is none in real 000 (i.e. US$90 terms. Taking for example a 000 equivalent), person who bought a house capital gains tax in 2017 for US$100 000, (i.e. will arise under RTGS$100 000 because of the current tax SI33) and the property is regime when in sold now to a buyer who is real terms there is willing to pay ZWL450 000 a capital loss. The rates of (i.e. US$90 000 equivalent), capital gains capital gains tax will arise withholding tax under the current tax Meanwhile, regime when in real terms the minister there is a capital loss.” has revised downwards the rate of capital gains withholding tax on sale of immovable property prior to June 24, 2019 to 5 percent from the current 15 percent. The rate of 15 percent is retained for disposals or sales after June 24, 2019. Meanwhile capital gains withholding tax is not a final tax, it is subject to assessment of actual capital gain. The rate of withholding tax on listed marketable securities is retained at one percent of the price at which the security was sold. The capital gains withholding tax rate on the disposal of unlisted marketable securities appears omitted. Other changes The Finance Bill proposes to exempt from capital gains tax a sale or disposal of any shares or other marketable securities to the Sovereign Wealth Fund established by the Sovereign Wealth Fund of Zimbabwe with effect from January 1, 2019. It further reviewed the threshold for assessed capital loss not to be carried forward from ZWL100 to ZWL 800 and exemption of marketable securities from capital gains tax when disposal has been made by a person who is 55 years or above; from ZWL1800 to ZWL14 400. Threshold of capital gains which shall not be subject to tax revised from ZWL50 to ZWL400. In conclusion, the clean-up exercise was necessary and the Finance Bill attempted to do that, but the impact of SI33 cannot in all cases be eradicated. Cases where capital gains tax would be paid in future as the prices of properties go down will be many. Meanwhile Matrix Tax School will be hosting the Tax and Business Interface from October 9 to 12, 2019 at Troutbeck Inn, Inyanga.  Tapera is the founder of Tax Matrix (Pvt) Ltd and CEO of Matrix Tax School (Pvt) Ltd. He writes in his personal capacity. Life & ArtsNews Worth Knowing August 8-14 2019 Page 23 Foodies flock to You Real, on point Japanese restaurant

INING out frequently, I get to ob- tistically presented as the cargo of a model serve cash-rich and deeply cool cli- wooden fishing boat. Dentele, the average food lover, and Pungent wasabi paste (great for allergies last resort individuals who lack electricity or and arthritis) and pickled ginger, essential gas to prepare a meal at home. companions to sushi, were served on the On a recent visit to You Real, an on point side. Japanese restaurant in Sam Levy's Village, Chicken teriyaki, fragrant with soy sauce, we were surrounded by fellow foodies, in- sake, mirin and sugar (ZW$135), was served tent on savouring as many exotic dishes as on a wooden platter, alongside a crunchy time, appetite and financial resources would swirl of finely shredded green cabbage. permit. Juicy and tender, this sweet and savoury Recently opened, You Real exudes an au- dish would appeal to young diners as well as thentic Japanese atmosphere. to adults. I would have loved to try grilled Assorted sushi deluxe Attention to detail in the wooden furni- eels with sauce, or beef Ramen noodles with ture, hanging lanterns, a dense bamboo room soup, or a spicy tofu dish, but the servings and bustle of living and working in Bei- to run generators must be constantly ing experiences can look forward to the divider and channels of decorative white had been generous and we could eat no jing for Harare’s laid back lifestyle. made and re-made by restaurateurs end of the year, when Fatima hopes to stones, encourage you to think that the chefs more.Although the food at You Real is pre- Fatima’s proficiency in project countrywide. introduce the Chinese hotpot, where in the kitchen will perform with similar pre- pared according to halal procedures, all alco- management and the ability to make Well-trained staff are able to answer seated diners dip thinly sliced meat, cision and skills. holic drinks are available and the bartender fallback plans ensures that You Real customers’ queries about all the dishes seafood, tofu and noodles into a central At the back of the restaurant was a tradi- can prepare a full range of classic cocktails Restaurant will always have a supply of on the menu, as Fatima ensures that pot of boiling hot stock. tional Chinese moon door, representing the including mind blowing mojitos and daiqui- the fresh produce advertised on the waiters have tasted and are familiar Fatima also hopes to bring in porta- full moon and associated with a happy life. ris. menu, whether it be salmon from Nor- with everything from beef teppanyaki, ble Korean barbecues, adding yet an- Did it lead to a yet unexplored private If you’re on the wagon for any reason, I way, clams from Canada or okra and to seaweed and tofu soup and to black other dimension to exotic dining in the dining area, or perhaps to the loos? can recommend the rock shandy — perfectly sweet potato from a local market. pepper chicken with rice. suburbs, and more options for your I had booked a table for two, and we balanced and delicious. Contingency plans to obtain diesel Foodies who enjoy community din- Christmas and year-end parties. Fatima, the owner/manager of You Real, A Matter of Taste is a soft-spoken young woman with a pas- sion for good food. When Recognition Matters with She grew up in Ningxia Hui in the north- west of China, a province bordering with in- 28 - 29 AUGUST 2019 Charlotte Malakoff ner Mongolia, once a stop on the Silk Road, Institute of Zimbabwe TROUTBECK INN RESORT, NYANGA frequented by Muslim merchants. Growing up in a family of master bakers found ourselves seated near the bamboo and confectioners, she learned how to make screen, facing out of the window towards the quality bread and cakes. veranda linking a number of cafes and shops, From her much-loved grandmother she and the busy car park. was taught the intricacies of Chinese cuisine. Young wait staff, all shiny, happy people After majoring in business studies in Bei- smartly dressed in black uniforms, greeted jing, Fatima longed to travel abroad, specifi- us and took orders for drinks. cally to Africa. Shermad, our waiter, gave us ample time When offered an opportunity to work on to study the menu, and was able to describe a project in Kwekwe, Fatima’s dreams began the various fillings for different types of su- to come true. After a few years spent in the shi, and to describe the more unusual dishes Midlands city of Kwekwe, Fatima was ready on offer. to move to Harare and to open a restaurant Assorted sushi deluxe moriawase specialising in Japanese cuisine — her fa- Due Diligence in PROCUREMENT (ZW$325), made from the chef's choice of vourite style of cooking. CONTRACT, TENDER AND SUPPLY CHAIN TO AVOID FRAUD the freshest seafood of the day, took a while A careful planner, Fatima visited Tokyo to come, but was worth the wait. on a tasting tour, familiarising herself with AND ABUSE OF OFFICE conflict of interest workshop Crunchy tempura shrimp, salmon, Japanese cooking methods. This is a two-day workshop – not a training event. This means that we will provide some key inputs to the team and sashimi prawns, crab, avocado, seaweed and She then interviewed Japanese-trained work with them to apply these to the real business situation they are confronting. sticky rice were magically transformed into Chinese chefs with a taste for adventure, seventeen individual pieces of sushi and ar- who would be willing to exchange the hustle Overview Due Diligence is a key element of successful corporate acquisition and business expansion strategies. The aim is to provide assurance to the senior management team that the proposed course of action will deliver the intended result and that the major risks have been identied and suitable courses of action prepared where this is Why people are consuming appropriate. Inevitably, due diligence is an inexact science. We cannot predict the future. However, we can prepare the team for the process of investigation and validation that is required. Outputs no or less alcohol Who Should Attend During the workshop we will work with the team to: Ÿ Strategic Government Ofcials, All Ministries & Urban & Rural Local Authorities Ÿ Establish a shared understanding of the core principles of good due diligence; Ÿ Chief Executives, Vice Presidents, Managing Directors and General Managers; Commercial /Business Development Ÿ Identify the specic areas of concern in undertaking due diligence of procurement operations specically; HE face of celebrations as we know it status. Martini 0.0% Dolce is made to taste Directors ,Managers; Senior Ofcers and Directors, Project Managers, Project Coordinators Ÿ Prepare a top-level risk assessment of the proposed target is changing. More and more people like Italian sparkling wine, but with zero al- Ÿ PAAB Members ,CFOs,Mergers & Acquisition, Accountants , Chief Financial Ofcers, Finance Directors, Financial Ÿ Develop an initial map of the data that will be required to underpin the due diligence; and Controllers, Finance Managers: Ÿ Produce the action plan to begin the due diligence work are adopting health-conscious life- cohol content. With the low/no trend reach- Ÿ HR Directors and Managers; T Ÿ styles and consuming no or less alcohol. ing new heights, it caters to those who are Internal Legal Team Managers, Legal The alcohol-free market is increasing as looking to moderate their alcohol consump- Ÿ Risk and Compliance Practioners Ÿ Team Leaders the growing culture of conscious gatherings tion without compromising on taste, says Ÿ Project Team Members and mindful drinkers, where people are Mahesh Madhavan, the global chief execu- Ÿ Internal and External Management systems Auditors , IT Project Managers choosing to socialise while enjoying good tive of Bacardi. Ÿ Procurement Managers, Private Data and Records Administration Team Managers, Bank Ofcers food and drink over clubbing and binge Begun in 1863 in Turin, Italy, Martini’s Ÿ Loss Control /Security Practioners Ÿ Anti –Money Laundering Ofcers drinking, is becoming more popular. portfolio of products is more than drinks; it is Ÿ Due Diligence Practitioners Aiming to be ahead of the trend and cater art forms which have captivated people Ÿ Stakeholders for consumers choosing to drink less, less around the world for more than 150 years. often, or not at all, Bacardi Limited recently Martini represents not only a style and way Cost of Participation per person: Cost of Participation per person: introduced a refreshing, alcohol-free spar- of life, but Italy itself. RTGS$4800 Accomodation, training materials, RTGS$1600 Covering training materials, Certicate of Participation, & lunches,dinner, refreshments Certicate of Participation, & lunches, refreshments kling drink in South Africa called Martini The Martini brand is part of the portfolio 0.0% Dolce. of Bacardi Limited, headquartered in Hamil- BANKING DETAILS FOR WORKSHOP BOOKINGS AND IN-HOUSE TRAINING CONTACT US: Part of the Martini sparkling wine port- ton, Bermuda. Bacardi Limited refers to the Bank Name: Steward Bank Cell: +263 778 990 008 folio, it keeps the flavour of a spumante, but Bacardi group of companies which includes Name: Due Diligence Institute of Zimbabwe Tel: +8644268345 with zero alcohol, giving it sparkling drink Bacardi International Limited. — IOL Acc No: 1009015497 Email: [email protected] www.ddi.co.zw DEFENDING champion Novak Djokovic and 23- News Worth Knowing time Grand Slam winner Serena Williams have been installed as the favourites at the US Open, Sport which begins August 26 in New York. Page 24 August 8-14 2019 SPORT SHORTS Rooney quit to save marriage

WAYNE Rooney quit football in the US to save his 11-year marriage to long-suffering wife Coleen. The ex-England ace, 33, yesterday signed an 18- month contract as a player-coach with Derby County. An insider said Coleen, 33, is “ecstatic”, even though the shock move to the Championship club will cost Roo millions. Sources close to the couple said his decision was driven by Coleen — who had pleaded with him to move back to the UK for the past year. The insider continued: “She told Wayne this was the first time in his career he has put her and the children first. “They’re losing millions because the Derby job is a huge pay cut but Wayne told Coleen it was worth it to make her happy. She is now settling the boys back in the UK perma- nently and has started the process of moving their belong- ings back.” Mercedes driver Lewis Hamilton (centre), of Britain, celebrates on the podium with second placed Red Bull driver Max Verstappen (left), of the Wayne will start working for Derby in January after fin- Netherlands, and third placed Ferrari driver Sebastian Vettel, of Germany, after winning the Hungarian Formula One Grand Prix. (Laszlo Balogh/AP) ishing the MLS season with DC United in Washington. Coleen and sons Kai, nine, six-year-old Klay, Kit, three, and 15-month-old Cass, will remain in the UK where the boys will start new schools in September. Roo flew back from Washington on Monday night to ne- Hamilton’s F1 charge gotiate his contract. — TheSun.co.uk All Blacks want Zim-born star THE All Blacks are convinced Australian loose forward gun David Pocock will suit up for the opening Bledisloe Cup test Word out of the Wallabies camp is that Zimbabwean continues, but a born Pocock will remain on ice, as he continues to recover from a calf injury. But All Blacks flanker Sam Cane believes that's a bit of a smoke screen, as Australia try to end their 17-year Bledisloe Cup drought. “I expect him to come back and be right in the thick of new rival emerges things,” he says. “Your match fitness is normally not quite where you S LEWIS Hamilton moves ever closer Mercedes. seasons alongside Hamilton — when their bick- want it to be, but because you’ve been in those situations to Michael Schumacher’s Formula One But since then, F1 fans have been treated to ering tore apart a friendship dating back to their before, you can just push on through. Arecord of 91 Grand Prix wins, a younger wonderful races in Austria and Germany, a de- karting days as teens. “A guy like David Pocock, there’s not a big margin be- and equally ambitious driver is emerging as his cent race in Montreal, and two exciting contests Rosberg, who won 23 F1 races with Mer- tween his best and worst games.” main rival. at the British GP and in Hungary. cedes, has taken to social networks to comment While the return of Pocock to test rugby remains uncer- Red Bull's Max Verstappen is showing the The dramatic spike in the interest level has on Hamilton. tain, Cane believes the Wallabies superstar will savour every much to do with Verstappen, who won in Spiel- He questioned the severity of Hamilton’s ill- kind of daring and panache now seemingly be- moment, when he finally gets back on the field. yond the reach of Ferrari’s Sebastian Vettel, who berg and Hockenheim and was denied a podium ness at the recent German GP. Pocock hasn’t played since March and while Wallabies is enduring a third straight season of frustration. shot at Silverstone following a collision. He tweeted on July 28: “I think the man flu Valtteri Bottas, who is Hamilton’s under-pres- “Everyone was so negative talking about the was just part of The Lewis Hamilton Show. He fans wringing their hands ahead of this year’s World Cup in sure teammate at Mercedes , led the champion- sport and now all of a sudden we’ve had this big likes to make it look more difficult than it is.” Japan, his struggles are nothing compared to Cane’s own ship early on but has drifted back and has not won step up from the Red Bulls,” Hamilton said. Hamilton, who said he needed several days injury battle. The 27-year-old broke his neck playing in an any of the past eight races. “Now we’ve got a really good battle on our of heavy sleeping following that race, scoffed at All Blacks test against South Africa in Pretoria last October, Now, Verstappen is poised to overtake Bottas hands and it looks like it’s here to stay.” Rosberg’s claim. with the injury threatening his career. — newshub.co.nz and move second behind Hamilton overall when Ferrari's state of flux — no wins in 12 this sea- “Believe me it wasn’t man flu, like some have F1 resumes with the first of nine remaining races son and 0-15 stretching back to last year's US GP said,” he said. at the Belgian GP on September 1. — has opened the way for Verstappen. “It was really something that wiped me out.” Joshua braces for rematch Hamilton speaks in glowing terms about Ver- Vettel blew championship leads in the past Verstappen’s surge in form offered Rosberg ANTHONY Joshua says he is determined to get his stappen, a fearless and mentally strong driver two seasons, and has not won in 20 races since another chance to take a swipe. “passion” back for boxing ahead of his rematch with On his YouTube channel blog after Ver- who does not crack under pressure. In fact, the his victory at the Belgian GP last August. Andy Ruiz Jr later this year. 21-year-old Red Bull driver thrives on it, much Verstappen is touted as a future multiple stappen’s superb pole in Hungary on Saturday, The British heavyweight lost his WBA, IBF and like Hamilton. champion and genuinely looks capable of chal- Rosberg said that Verstappen — with his “bul- Verstappen drove brilliantly from pole po- lenging Hamilton. let-speed reactions in his mind (and) absolute WBO world titles with a shock defeat by Ruiz on June 1. sition in Sunday’s Hungarian GP, fighting hard He is already ahead on two counts: as the peak human body reaction times” — is now the That was the first professional loss of Joshua’s career until Hamilton overtook him late on following a youngest driver to win an F1 race (at 18) and the No. 1 driver in F1. and the 29-year-old is desperate to prove it was a one relentless chase to clinch his 81st F1 win. fourth-youngest to take pole compared with sixth Despite evidence pointing to Hamilton’s on- off. It was another enthralling scrap, following for Hamilton (who was 22). going dominance, Rosberg insisted the British “I feel strong enough and I feel I can correct my Hamilton’s brilliant defense under intense pres- But the 34-year-old Hamilton is still working driver’s powers are waning. wrongs,” Joshua told Sky Sports. sure from Verstappen at the Monaco GP in May. his way through the record books and his win in “The best age for racing drivers is 30, 31, 32 “I need to be around as many boxing people as pos- While Hamilton speaks respectfully of Vettel, Hungary — the eighth this season — extended and that’s because your ability as you’re getting sible because right now I need to soak in the experience a four-time F1 champion with 52 wins, he speaks his championship lead to 62 points as he chases a older slightly decreases,” Rosberg said. and knowledge — and get that passion back.” seemingly with admiration of Verstappen. sixth F1 title to move one behind Schumacher’s Hamilton was unimpressed. Joshua’s first bout with Ruiz took place at Madison “There is no better feeling, from a racing driv- F1 record. “Whether he is right or wrong, I don’t really Square Garden in New York and was the Briton's first er’s point of view, when you have a race (where) “I don’t have plans on stopping anytime care. All you have to do is look at the tally of my fight in the United States. you face a really strong competitor and a great soon,” he said. results and they speak for themselves,” Hamilton driver like Max, obviously at their best,” Ham- Hamilton’s relatively advanced age was a top- said. His promoter wants the rematch to take place in Car- ilton said. ic raised by his former teammate Nico Rosberg “Naturally there will be people who have not diff at the Principality Stadium, but Ruiz has insisted he “It is awesome to see the respect level be- — who beat Hamilton in a thriller when clinching had the success that I have, and might want to talk does not want to fight in the UK. tween us. Really respectful driving and I hope to his only F1 title with Mercedes in 2016. it down.” “It doesn’t matter to me where it is,” Joshua said. continue that.” The German driver showed great ability to “I’m still fit,” he added. “Hopefully you can “I would love it to be in Cardiff but it’s going to be on Hamilton’s processional win at the French GP overcome Hamilton in an acrimonious season see I’ve not lost any speed.” neutral ground, Ruiz is the champ so he will make some in June prompted acerbic criticism of the lack of which went down to the last race in Abu Dhabi. So far this season, every driver in F1 would calls in that situation but I’m going to battle for it to be in excitement in F1 because of the ultra-dominant Then, in a flash, he retired from F1 after tense agree. — www.autoblog.com the UK because it’s my stomping ground.” — bbc.com