GVT TO RAKE IN $1BN FROM NEW TAX BY YEAR-END: Page 2 $4

News Worth Knowing Politics fuelling governance failures: Page 5

February 14-20 2019 ESTABLISHED 1969 @ FingazLive www.fi ngaz.co.zw Facebook: The Financial Gazette

ZSE Report THE All Share index recov- Broke Zim ered 1,60 percent yesterday to close at 152,90 points. SeedCo International led the movers with a $0,25 gain to settle at $2. Cassava Smartech put on $0,1 to close at $1,46, while PPC traded $0,08 high- er at $1,88. The Industrial in- dex was up by 1,62 percent to bonds its close at 510,02 points, and the Top 10 index gained 2,03 per- cent to close at 151,59 points. The Minings index was fl at at 217,92 points.

Currencies (Bloomberg) % change ◀ USD:ZAR 14,8338 1,63 EUR:USD 1,1316 0,26 ◀◀ ◀ GBP:USD 1,2764 0,46 ◀◀ ◀ resources USD: JPY 113,2900 0,14 Stock Markets ZSE (All Share) 166,82 1,49 ◀ ZSE (Mining) 217,34 0,36 ◀ JSE 16 366,00 0,16 FTSE 100 7 142,33 1,52 1,48 Dow 25 243,54

Commodities (Bloomberg) 0,82

Gold 1 212,90 ◀ Platinum 836,31 0,02 until 2020 ◀ 0,42 Shame Makoshori rare had indeed secured some credit lines from Brent Oil 75,59 ◀ and Omega Ukama Afreximbank through bonded bullion exports, Grains (Grain SA) Staff Reporters while dismissing assertions that this was also the White Maize ZAR 2 101,36 1,0 ◀ case with the country’s golden leaf. Soya ZAR 4 483,09 2,7 ◀ ITH international lenders continuing “The lines of credit (LCs) from Afreximbank Wheat ZAR 2 687,49 1,8 to shun Zimbabwe due to its dismal are structured against gold export receivables ... ◀ Wrepayment record and toxic politics, There are no facilities which are secured by to- President Emmerson Mnangagwa’s skint gov- bacco until 2020,” he said. ernment has resorted to mortgaging the coun- “Tobacco facilities from tobacco merchants, Champions try’s gold and tobacco revenues — since 2017 to assist tobacco growers, are short term arrange- — to a few external partners who are still willing ments handled by banks,” Mangudya, who has goes hi-tech to do business with Harare. had the onerous job of keeping the country afl oat SHORT-TERM insurer The Financial Gazette learnt this week that over the past fi ve years, said. Champions Insurance is next among the lenders from whom badly needed But government insiders said with Mnangag- week expected to launch credit lines have been secured this way is the Af- wa’s administration continuing to fail to raise a mobile application for a rican Export and Import Bank (Afreximbank), cash through normal budget activities owing range of its services, includ- which has regularly funded the country against to decades of fi nancial mismanagement and its ing car, housing, agricultur- export receivables. pariah status dating back to Robert Mugabe’s NICOZDIAMOND Insurance managing director Grace Mu- al, legal, plant and machin- But both analysts and government insiders days, the southern African nation has increas- radzikwa at her offi ce in Harare yesterday. Her company post- ery. say while these desperate measures have al- ingly sought help from “some dubious funders”, ed a gross premium written of $19,3 million in the six months to This also comes as the lowed Zimbabwe to get by, the practice is both mostly from Asia. June 2018 — up four percent compared to same period prior year. group, which has forged a unsustainable and potentially prejudicial to the And these loan sharks have apparently The performance was “a result of organic growth” by its recent- strong roll-out alliance with country — in addition to being problematic in pounced on such commodity-backed deals as to- ly-launched Post Insurance business. Nicozdiamond delisted from OK Zimbabwe, is reportedly some instances from a governance point of view. bacco worth $1 billion-plus every year — and 90 the Zimbabwe Stock Exchange in August last year after it was ac- mulling an expansion of its Reserve Bank of Zimbabwe (RBZ) governor percent of which is consumed in China. quired by First Mutual Holdings. — Picture by Freedom Mashava products to include medical John Mangudya confi rmed this week that Ha- To Page 2 and travel insurance. Page 2 | February 14-20 2019 The Financial Gazette National News Gvt rakes in $320m from 2% tax

Nelson Gahadza months — October to January — ply, companies are unable to do that Ncube applauded Nestle Zimba- Business Reporter prompting market experts to believe sometime failing to that at all, and im- bwe for showing resilience and com- that the two percent tax has potential pacting the company’s ability to keep mitment to Zimbabwe through its IMBABWE’S cash-strapped to raise about $3,4 billion annually. their foreign shareholders happy. massive investments at a time when government has so far collected The analysts assert that if the cur- “It reduces their appetite to invest other investors are taking a wait-and- Zover $320 million in additional rent trend is sustained, the formula more in this country because capital see approach. revenue from the two percent tax, with to deal with the country’s domestic can go in where it can get out, but as “I was able to see some of the the money being distributed allocated debt would have been found and this government we are doing everything machinery that requires to be re-com- to various projects in social services, will enable authorities to put other what we can to ameliorate the situa- missioned. Because of the shortages infrastructure and devolution. economic fundamentals in place that tion,” he said. of foreign currency and some of the The controversial tax was intro- might see the realisation of a middle Zimbabwe is experiencing an spare parts, they could not be able to duced in October last year by Finance income status sooner than later acute foreign currency shortages due do that. minister Mthuli Ncube to broaden the Meanwhile, Ncube said govern- to weak exports and high government “We will do everything we can do country’s tax base as part of a series ment was working on a cocktail of expenditure resulting in the country to support then and ensure that the measures he’s implementing to stabi- measures to ensure that companies failing to provide companies and in- plants are re-commissioned and be lise the economy. and foreign investors are able to repa- vestors with hard currency to procure able to meet demand both domesti- “So far we have firm figures from triate their funds. raw materials. cally and within the region,” he said. the intermediary tax…We are averag- “If you are a foreign investor you The southern African country cur- Nestle Zimbabwe’s Swiss-based ing $80 million a month because we are allowed to take out 100 percent rently owes international airlines over parent company, has over the past gave a lot of exemptions,” Ncube told of your earnings, dividends and re- US$150 million, while industry has a five years injected over $30 million journalist during a tour of Nestle Zim- patriate your profits. However, due to foreign currency backlog of nearly into the local unit. babwe this week. the cuteness of foreign currency sup- US$1 billion. [email protected] This shows that the country has Mthuli Ncube raked in at least $320 million in five Broke Zim bonds its CITY OF BULAWAYO COMMERCIALISED ENTITIES

Trading as INGWEBU BREWERIES resources until 2020 EXPRESSION OF INTEREST From Page 1 babwe. Chinese companies buy to- “For example, it is also not very EFFLUENT PLANT “In the absence of credible revenue bacco worth hundreds of millions ev- clear why Zimbabwe has not made plans, the government has resorted to ery year from Zimbabwean farmers. big efforts to be readmitted into the desperate measures such as hawking “Some of the companies have con- London gold market, even though the country’s gold, tobacco and other tracts ... where they provide inputs. the requirements for that have been resources to lenders,” one of the well- Outside this ongoing relationship, met,” economist and Percycon Ad- placed sources said. there is no arrangement between Chi- visory Services founder Persistence “The real concern is whether pro- na and Zimbabwe for tobacco. Gwanyanya said. Please be advised that the above ceeds from these forward contracts, “I have not heard of such an ar- “Ideally, Treasury should seek ap- many of which run until 2020, can rangement between the two govern- proval from Parliament on these loan mentioned advert has been be accounted for and are used for ments,” Baogang told The Financial agreements. The fact that the country national development or simply end Gazette this week. has been breaching statutory limita- CANCELLED and all processes have up financing some dodgy activities Deputy Agriculture minister, Van- tions ... shows that Parliament has not as offsetting Zanu PF’s 2018 cam- gelis Haritatos, referred questions on been allowed to exercise oversight,” been STOPPED until further notice. paign-material debts. this to the RBZ. he said. “Like the vaunted $500 million “I would be lying if I gave you a “People have always wondered LC’s from Burundi’s Eastern and comment on this matter. I actually do why Afreximbank is comfortable Southern African Trade, and Devel- not know if there is such an arrange- dealing with Zimbabwe, and now we Any inconvenience is sincerely regretted. opment Bank, the other problem with ment. Our ministry deals with matters hear that gold is involved. One cannot these facilities or arrangments is that such as production, and we defer ev- help but wonder if the arrangement they can just turn out to be consump- erything else to other relevant author- is optimal for the country ... and why tive debt,” they said. ities. there is all this secrecy,” Gwanyanya “From what I know, this may “Even when tobacco farmers added. partly explain why the RBZ has been come to us crying about foreign cur- Kipson Gundani, the chief execu- struggling to pay tobacco farmers on rency retention rates, we refer them to tive of CEO Africa Roundtable, said time because the money has long been the central bank and the Finance min- it was important to deploy revenues consumed,” one of the sources said. istry,” Haritatos said. from advance payments of tobacco But the acting Chinese ambassa- This comes as reports indicated and other resources towards import- dor to Zimbabwe, Zhao Baogang, last year that the government had told ant issues such as capital expenditure. said if there were any such deals in- Australian assistant secretary for Afri- “Forward selling produce would volving players from the East Asian ca Gita Kamath that the country was mean that we are spending money economic giant, these did not involve also keen on securitising its mineral from our future revenues, and that in Beijing and its entities. resources to Canberra, in exchange itself is not a problem for me. What “What we do have is an on-going for more than US$1 billion in capital matters is what you do with the mon- cooperation between China and Zim- to help turn around Zimbabwe’s ailing ey,” he said. economy. “If we use the money for con- Meanwhile, sumption such as buying fuel, then we observers also are in for a torrid time. But if the mon- say the expor- ey is used for production and develop- tation of the ment then there is nothing wrong with country’s raw that,” Gundani said. and semi-pro- “It is like when you take out a cessed mineral loan at a bank and ... if you channel and agricultural the funds towards enterprise then you commodities will be okay.” is against the On the other hand, Trade Winds government’s senior analyst Tapiwa Sibanda said it much-vaunted was imperative that Zimbabwe added value-addition value to its natural resources and to strategy — “fetch higher values”. which would “Mortgaging its resources ties see local prod- Zimbabwe to other countries’ dictates ucts fetching and if it fails to honour any of the obli- higher prices gations, there are legal consequences. on international It makes no sense to offer resources to markets. rich nations while they hold on to our “These deals precious resources,” he said. are always “The problem with mortgaging shrouded in se- natural resources is also that current crecy, and we generations ignore future generations. really would Despite the vast mineral resources want to have that Zimbabwe has, its people have more transpar- remained poor,” Sibanda added. ency. [email protected] The Financial Gazette February 14-20 2019 | Page 3 National News RBZ orders PSPs to reveal ‘political exposure’

Eric Chiriga bank to recognise, oversee, supervise and oper- During the same period, the RBZ said annu- Managing Editor ate payment, clearing and settlement systems in al growth in broad money decelerated to 25,86 Zimbabwe. percent in November 2018, from 30,96 percent HE Reserve Bank of Zimbabwe (RBZ) Institutions wishing to offer payment ser- in October 2018. has ordered investors to reveal their po- vices or instruments must apply to the John Broad money stood at $10, 093 billion in Tlitical leanings as part of requirements Mangudya-led central bank for recognition. November 2018, compared to $8 020 billion to obtain a payment systems providers (PSPs) Non-banking institutions should partner recorded in November 2017. license. deposit-taking financial institutions, through The growth in money supply was largely at- The central bank said the demands are in which they apply for RBZ recognition. tributed to a 32,43 percent increase in narrow line with corporate governance and anti-money Meanwhile, the RBZ said Zimbabwe’s total money. Currency in circulation and demand de- laundering rules. merchandise trade rose by 5,6 percent to $1,100 posits rose by 54,24 percent and 31,30 percent “…additional requirements that should be billion in November 2018, from $1,04 billion in respectively. provided and fulfilled before conducting any October 2018 due to an increase in both mer- Partially offsetting the increase in narrow operation (are) ownership structure…adequate chandise exports and imports. money were respective annual declines of 23,49 capital amount…(and) net worth statements for The central bank added that the country’s percent and 1,36 percent in negotiable certifi- directors,” the RBZ said last week. trade deficit widened to $157 million inNo- cates of deposits (NCDs) and time deposits. To comply with anti-money laundering laws, vember 2018, from $143,6 million in October “On a month-on-month basis, broad money the central bank said PSPs must provide infor- 2018. grew by 0,27 percent, from $10 06 billion in mation on “beneficial ownership…politically “Merchandise exports stood at $471,7 mil- October 2018 to $10 09 billion in November exposed persons…suspicious transactions… lion, in November 2018, a 5,1 percent increase 2018,” said RBZ. (and) third parties service level agreements and from the previous month. The growth in mer- Bank deposits remained transitory in nature, due diligence”. chandise exports was largely supported by a 35 with demand deposits accounting for 80,45 Apart from that, the PSPs are also expected percent increase in flue-cured tobacco export percent of broad money, time deposits, 14,17 to furnish the apex bank with details on “capac- revenues,” said RBZ in its latest monthly re- percent, currency in circulation, 4,88 percent ity and reliability of the system…pilot tests re- view. and NCDs, 0,50 percent. Credit to the private sults...compliance with exchange control law... Mineral export revenues, however, record- sector registered a 8,02 percent annual growth (and) pricing policy”. ed declines in semi manufactured gold — 33,8 in November 2018, compared to 8,42 percent in The central bank added: “Entities or individ- percent, industrial diamonds — 27,6 percent, John Mangudya October 2018. uals wishing to register and operate a payment chromium ores and concentrates — 27,4 per- Month on month, credit to the private con- systems switch or such products and services cent, ferro-chromium — 13,7 percent and nick- A1),” said RBZ said. tracted by 0,36 percent, from $4,00 billion in should comply with the RBZ Act, NPS (Nation- el mattes — 4,4 percent. Declines were, however, recorded for crude October 2018 to $3,99 billion, during the month al Payments Systems) Act, Banking Act, BUP The country’s exports for November 2018 soya bean oil and wheat, during the same month. under review. (Bank Use Promotion) and SML Act.” were mainly destined for South Africa 67,3 per- The country sourced imports mainly from Sectorally, private sector credit was distrib- Other supporting statutes on payment sys- cent, Mozambique 9,9 percent, the United Arab South Africa, 38,4 percent; Singapore, 23,3 per- uted as households 26,54 percent, agriculture tems — a set of instruments, procedures, and Emirates 7,6 percent and Zambia 1,7 percent. cent; Zambia, 9,1 percent; China, 4,5 percent; 17,35 percent, services 12,37 percent, distribu- rules for the transfer of funds between or among “Merchandise imports registered a 6,2 per- and Mauritius, 3,3 percent. tion 12,26 percent, manufacturing 10,53 per- participants — include the Banking, Exchange cent increase, from $592,3 million in October The merchandise trade developments result- cent, financial organisations and investments Control and Money Laundering and Proceeds 2018 to $628,7 million in November 2018. ed in the widening of the trade deficit by 8,88 7,05 percent, mining 5,86 percent, construction of Crime Acts. Notable monthly increases were recorded for percent, from $143,6 million in October, to $ 5,20 percent and transport and communications The RBZ and NPS Acts empower the central diesel, unleaded petrol and aviation spirit (Jet 157 million in November 2018. 2,37 percent. [email protected] Page 4 | February 14-20 2019 The Financial Gazette National News Zim data tariffs competitive NRZ eyes IMBABWE has the cheapest mobile For operators in Zimbabwe — where the to face an uphill task to remain viable without $125 million data tariffs — across all three major net- government recently increased the fuel pump increasing their tariffs while facing difficulties Zworks Econet Wireless, NetOne Cellu- price by about 300 percent (from $1,32 to in sourcing the foreign currency in the first lar and Telecel — as compared to its regional $3,31 per litter for petrol, and from $1,25 to place. peers in Africa, Asia and Europe, according to $3,11 per litre for diesel) but kept the USD Using the Old Mutual Implied Rate revenue FY19 a recent survey across 30 key markets. pump price for foreign tourists and embas- (OMIR) to compare local tariffs with those The survey, which reviewed the dollar-price sies unchanged at USD 1,32 for petrol and of major data markets, the survey shows that of one gigabyte data packages in countries USD1,24 per liter for diesel — the compari- Zimbabwe’s mobile data tariffs that were once Ndakaziva Majaka such as South Africa, Zambia, Malawi, Kenya, son in regional and international data pricing thought to be on the high side, are in fact com- Markets Editor Nigeria and India, and using the Old Mutual reveals a drastic erosion in margins — in USD paratively very low. Implied Rate (OMIR) of one greenback to 5,6 terms — at a time when the price of data has The OMIR is a comparison of the share HE National Zimbabwe bond notes or RTGS, concluded remained the same in an industry whose price price of insurer Old Mutual’s listed stock on Railways of Zim- that local operators were 15th, 14th and sev- is regulated. the London Stock Exchange and Zimbabwe babwe (NRZ) enth in the cost ranking. The price comparison also comes at a time Stock Exchange. T says it is projecting its In Africa, Econet, NetOne and Telecel when — besides fuel — the prices of basic Though only indicative, it is widely accept- revenues to increase by were ranked 11th, 10th and 4th, lowest — be- food stuffs such as bread, meat and beverag- ed as reliable measure or gauge of Zimbabwe- 31,6 percent to $125 hind Nigeria’s Glo and Airtel, while Zambia’s es, as well as essential services such as drugs, an currency’s exchange rate against the USD. million this year, driven Zamtel had the lowest data charges among the medical aid and schools fees have gone up, Officially though, the exchange rate is fixed at by improved economic sample of 17 African operators. meaning that the bottom line for local oper- 1:1 despite an economically debilitating short- conditions and demand Most significantly, the survey showed that ators, after accounting for costs, has already age of the greenback in Zimbabwe. for the firm’s services. in US dollar terms, Zimbabwean data prices come under pressure. For Zimbabwean customers, the survey’s Lewis Mukwada, were lower than those of neighbouring South The increase in the price of fuel has been findings could be a harbinger of not-so-nice NRZ’s general manag- Africa’s mobile networks Vodacom, MTN seen by business and industry in Zimbabwe as things to come, with the quality of telecommu- er, said the parastatal South Africa, CellC and Telkom South Africa. a tacit acknowledgement by the government of nications services likely to be the first casualty was optimistic of at- For example, the survey revealed that a minimum market exchange rate of roughly in an environment of scarcity in the mobile taining the projected where 1GB of Econet data costs $4,33, MTN 1 to 3 between the scarce US dollar and the service industry as operators struggle to up- growth. South Africa’s comparable data bundle costs surrogate bond note currency and electronic grade their equipment and meet demand unless “In terms of reve- Lewis Mukwada $6,75. transfer rates. the price is adjusted upwards. nue in 2017, we were The survey further showed that Zimba- The data pricing comparison therefore The study therefore portents the inevita- around $87 million, 2018 we went up to $95 million and bwe’s mobile data tariffs were lower than those shows that Zimbabwean operators, who like bility of a tariff increase in the near future, if this year we are projecting $125 million. of Malawi mobile operators Airtel and TNM. mobile networks around the world procure operators are to maintain their viability and “But now it depends on how the economy behaves be- The findings of the survey could be of sig- the bulk of their network equipment in hard ensure the industry continues to offer essential cause if there is high inflation then those figures certainly nificance to operators and customers alike in currency from European and Asian ‘vendors’ telecoms and data services. — Staff Reporter change,” he said. Zimbabwe, albeit for different reasons. such as Ericsson, Huawei and ZTE are going [email protected] This comes as the African Development Bank (AfDB) recently projected Zimbabwe’s economy would grow by 4,2 percent this year before rising to 4,4 percent in 2020 under- pinned by growth in the mining and agricultural sectors. The projection is higher than government’s 3,1 percent econom- ic growth projection for the year. Mukwada said NRZ — which has a design capacity to move 18 million tonnes of freight a year — was still strug- gling to operate in a harsh economic environment as well as obsolete equipment challenges. Just last month, Nyasha Maravanyika NRZ’s public rela- tions manager said the state-owned firm needed to refurbish about 50 coaches for commuter services after it missed its delivery target output of 1,6 million tonnes for the period between July and October 2018 by 12 percent due to capac- ity constraints. “The NRZ needs at least 50 coaches to cover the three Harare routes and the two routes for Bulawayo,” he said. In spite of this, the NRZ has witnessed an increase in freight volumes since it received interim solution equipment in February last year as part of a $400 million recapitalisa- tion framework agreement signed with the Diaspora Infra- structure Development Group (DIDG) / Transnet Consor- tium, according to Maravanyika. The NRZ spokesperson pointed out that the parastatal moved 360 141 tonnes of cargo from sourced orders of 390 266 tonnes between July and October 2018, while August saw 370 622 tonnes being moved while 390 266 tonnes had been sourced. [email protected]

A FLORIST at Africa Unity Square in Harare CBD prepares for Valentine’s Day, amid increasingly depressed business in Zimba- bwe. This year, Valentine’s Day shoppers in the US are expected to add $20,7 billion to the country’s economy — more than $19,2 Trump ‘could extend’ billion spent in 2018, according to the National Retail Federation. However, only 51 percent of Americans plan to celebrate Valen- tine’s Day this year, the lowest since 2009. In the US, the top five Valentine’s Day purchases are candy, greeting cards, evening out, deadline for China deal flowers and jewelry. — Freedom Mashava/The Balance NITED States President Donald Trump has said he could extend the March 1 deadline to reach Ua trade deal with China if they are making good progress. Chinese and US officials will hold high-level talks this Homelink targets informal sector week aimed at halting their damaging trade war. US officials previously said March 1 was a hard dead- Ndakaziva Majaka it said. duced low-income housing project Mlambo said the central bank rec- line for achieving a deal to avert further tariffs. Markets Editor “Local and international con- in Bindura and other areas targeting ognises the urgent need to close the Both countries have imposed duties on billions of dol- sulting firms with a proven track the SMEs. deficit in housing supply particular- lars worth of one another’s goods. OMELINK is planning to record in architectural/ town plan- “Apart from Brockdale, Home- ly for the low-income segment of Deputy-level talks began this week in Beijing. tap into Zimbabwe’s grow- ning/ housing infrastructure proj- link is also working on housing the economy. High-level discussions, led by US Treasury Secretary Ste- ing informal sector through ects and development consultancy projects to be launched in Harare’s “We have, therefore, increased ven Mnuchin and Chinese Vice Premier Liu He, are due H to begin on Thursday as both sides rush to make progress property developments in the sector are invited to submit Expression of Marlborough and Strathmore, near the housing finance pool outside this year. Interest proposals for architectural Lake Chivero, Gweru, Mutare and the traditional building societies to before the March 1 deadline. The Reserve Bank of Zimbabwe design concepts and management Bulawayo,” Desmund Ali, Home- micro finance institutions such as “If we’re close to a deal where we think we can make (RBZ) subsidiary, which was tradi- of the proposals,” Homelink said is link’s managing director said at Homelink,” Mlambo is on record a real deal and it’s going to get done, I could see myself tionally set up in 2005 as a vehicle a statement release last week. the official launch of Homelink’s saying. letting that slide for a little while,” Trump said referring to to harness foreign currency from This comes as a recent study by Brockdale housing project in Bin- The banking sector funded near- the March 1 deadline. the country’s diaspora population, the International Monetary Fund dura last year. ly 6 000 new housing units worth “But generally speaking, I’m not inclined to do that.” has put plans in motion to develop (IMF) indicated that Zimbabwe had “We are very excited at the pace over $172 million in 2017, up from The US has imposed tariffs on $250 billion worth of market stalls and bus terminuses. the second largest informal sector we worked at Brockdale and are 1 531 housing units worth $75 mil- Chinese goods, and China has retaliated by imposing du- “Homelink intends to develop in the world, only the South Amer- looking forward to delivering af- lion funded in 2016, a development ties on $110 billion of US products. houses, small to medium enterprise ican Bolivia. fordable shelter across Zimbabwe. he attributed to the apex bank’s In December, both countries agreed to halt new tariffs (SME) market stalls and bus termi- The study showed that more We have, therefore, worked on cri- “policy initiatives”. for 90 days to allow for talks. nuses in various locations across than 60 percent of the Zimbabwe- teria that ensures that houses are ac- By the end of 2018 nearly 12 The US has said it will increase tariff rates on $200 Zimbabwe. The facilities will be an economy was informal, second cessed by low income customers,” 000 new housing units were ex- billion worth of Chinese imports from 10 percent to 25 designed to offer a conducive, com- only to Bolivia’s 62,3 percent. he added. pected to be funded by the financial percent if the two sides don’t strike a deal by March 1. fortable and modern environment,” Homelink last year also intro- RBZ deputy governor Kupukile sector. [email protected] Trump has also threatened further tariffs on an addi- tional $267 billion worth of Chinese products. — BBC The Financial Gazette February 14-20 2019 | Page 5 National News Politics ruining corporate governance: Lumumba

Tabitha Mutenga not twice but times without number,” Lu- if you go to Ethiopia, you see the same thing.” Features Editor mumba said. Chris Mugaga, the Zimbabwe National Chamber of “What politics needs to do is to create an Commerce chief executive, concurred with Lumumba ENYAN intellectual Patrick Lumumba says Zim- enabling environment for investors. Inves- and added that in any country, governance at political babwe’s uncertain political environment is con- tors want an environment that will allow level sets pace for corporate governance and economic Ktributing to the collapse of good corporate gover- them to conduct their business in an en- performance. nance in the private sector. abling environment that will allow them to “Where political governance is weaker, it transcends This comes as the southern African country, which is excel because investors are not primarily into blatant violation of corporate governance. You cannot battling its worst ever economic crisis in a decade, has in philanthropy, they become philanthrop- separate corporate governance from corruption which is endured a difficult political terrain since the turn of the ic after making money, and therefore they heavily related to the country’s politics,” he said. millennium when former president Robert Mugabe’s gov- want an environment that will allow them Transparency International Zimbabwe (TIZ) reported ernment embarked on a controversial land reform exer- to make the money. However, politics can in October 2016 that Zimbabwe was losing at least $1 bil- cise, which contributed to the collapse of the economy. destroy that environment in a day,” he said lion annually to corruption, with police and local govern- Economic analysts assert that the demise of commer- at a corporate governance seminar in Ha- ment officials being among the worst offenders. cial agriculture has had a debilitating effect on food secu- rare last week. According to the World Economic Forum’s 2017/18 rity. The whole supply and service industries, agricultural The trained lawyer added that political Global Competitiveness Report, the most problematic research, equipment, marketing structures and banking “hygiene” was the key to economic pros- factors for doing business in Zimbabwe include: “Policy depended to a large extent on the existence of large-scale perity sighting examples from Vietnam instability, inadequate foreign currency regulations, inef- commercial agriculture. and Rwanda. ficient government bureaucracy, difficulties in access to Lumumba said the ultimate form of governance is po- “The obituaries of these countries had finance, inadequate supply of infrastructure, restrictive litical governance and when politics stumbles, it poisons been written, but if you go to Kigali today labour regulations, and inefficient tax administration and the entire environment. This has been proven, not once, you see an economy that is flowering and Patrick Lumumba regulations.” [email protected] Zimbabwe tobacco boosts US firm

Adelaide Moyo Business Reporter

YXUS International (Pyxus), a global agri- cultural company with operations in Zim- Pbabwe, says its operating revenue rose to $524,5 million during the three months to De- cember 31, 2018 from $477,8 million recorded in comparable period last year. The New York Stock Exchange listed firm, which owns Mashonaland Tobacco Company, said its sales increased by 9,8 percent in the period under review due to a surge in volume attributable to larger crop sizes in Africa. “Other income, net increased $7 million from $1 million for the three months ended December 31, 2017 to $8,0 million for the three months end- ed December 31, 2018. This increase was primar- ily due to the receipt of insurance proceeds from the fiscal 2016 fire in Zimbabwe,” Pyxus said. For the nine months ended December 31, 2018, the company’s sales and other operating revenues increased 0,7 percent from $1,202 million to $1,210 million buoyed by a five percent increase in volume attributable to larger crop sizes in Af- rica. For other income, net increased 36,4 percent from $9,9 million to $13,5 million during the nine months to December 31, 2018. The firm said this increase was primarily due to the receipt of final insurance proceeds from the fiscal 2016 fire in Zimbabwe. Pyxus said its liquidity requirements are affect- ed by various factors including crop seasonality, foreign currency and interest rates, green tobacco prices, customer mix, crop size, and quality. The firm said it utilised surplus cash to reduce long-term debt with the purchase and cancella- tion of $27,3 million of its 9,875 percent senior secured second lien notes, leaving $635,7 million outstanding at December 31, 2018. “At quarter end, the company's available cred- it lines, letters of credit, and cash totalled $527,8 million. The company will continue to monitor and adjust funding sources as needed to enhance and drive various business opportunities that maintain flexibility and meet cost expectations,” Pyxus said. Pieter Sikkel, Pyxus’ chairman, said based on the current outlook for the remainder of fiscal year 2019, the company now expects revenue to be in a range of approximately $1,8 billion to $1,9 billion with adjusted EBITDA in a range of approximate- ly $150 million to $160 million. “We are confident that we will see continued momentum as we move into the fourth quarter. We remain focused on long-term debt reduction and have now purchased approximately $100 million of our most expensive debt since we began our debt buy-back program,” he said. [email protected] Page 6 | February 14-20 2019 The Financial Gazette The Financial Gazette February 14-20 2019 | Page 7 National News Zim courts Ethiopian Airlines Omega Ukama pia this week say top on the agenda for the Ethiopians Business Reporter was operating cash they are failing to access from Zim- babwe. RESIDENT Emmerson Mnangagwa has invited “They touched on that and that it is worth about $18 Ethiopian Airlines to partner with the country’s million which is stuck in Zimbabwe,” Moyo is quoted as Pstruggling national airline Air Zimbabwe (AirZim). having told journalists after the meeting. Air Zim, currently under judicial management, is “The president (Mnangagwa) promised that my coun- struggling to find a strategic partner due to a US$300 terpart, the minister of finance, is going to take a serious million legacy debt. position in terms of reducing that debt,” he said. Information minister Monica Mutsvangwa on Tues- Tourism minister, Prisca Mupfumira is reported to day said Mnangagwa, who was recently in Ethiopia for have held several meetings with the central bank and an African Union summit “met with the chief executive Treasury to unlock the money, warning that foreign air- of Ethiopian Airlines who expressed willingness to en- lines may pull out if nothing was done to clear the debt. ter into strategic partnerships with Air Zimbabwe and to British Airways-operated ComAir, Kenyan Airways make Zimbabwe the hub of aircraft maintenance in the and Emirates have suspended ticket sales from inside region”. Ethiopian Airlines is set to partner with Air Zimbabwe. Zimbabwe. International Trade minister Subisiso Moyo, who was The latest development comes after government re- part of Mnangagwa’s entourage in Ethiopia, said the two diately after today’s cabinet, the minister instantly,” he said. cently agreed on a cocktail of measures aimed at resus- countries also discussed an agreement for “training of pi- of Transport was getting in touch with the A codeshare agreement is also reported citating Air Zim through the acquisition of smaller Em- lots from Air Zimbabwe”. chief executive of the Ethiopian Airlines to have been among the issues discussed. braer aircraft from the United States to boost its ageing fl “In terms of the timeline, the position is that imme- so that the invitation of the CEO is made However, media reports out of Ethio- eet. [email protected] Give Zim a chance, says Caledonia

Adelaide Moyo Business Reporter

ALEDONIA Mining Corporation (Caledonia) says the operating environment in Zimbabwe re- Cmains tough, but investors with viable strategies can navigate through the storm. The remarks by Caledonia comes at a time business confidence in the country has hit rock bottom owing to the deteriorating operating environment and erratic de- cisions by President Emmerson Mnangagwa’s govern- ment. Steve Curtis, the Toronto Stock Exchange-listed firm’s chief executive, said Caledonia’s stellar - perfor mance in the southern African country was testimony that investors can do well in a harsh operating environ- ment. “We have got to a stage where the shaft is 1 200 meters deep. We have continued to produce gold at an expanding level, it shows that you can do business in Zimbabwe but it is tough,” Curtis said in an interview on insights on the operating environment in the country. “You are very much reliant on your ability to generate funds because borrowing money for Zimbabwe is very difficult that has been demonstrated by the government and the new president that they are open for business and want to be open for business but there are also hurdles that they have to get through.” Caledonia, which owns a 49 percent stake in Blanket Mine, has not been spared the foreign currency challeng- es being experienced in Zimbabwe. “None of us could pretend that the operating environ- ment is easy…The economy is not generating enough of its foreign currency so it is an economy that needs to grow with very high unemployment probably over 90 percent in the formal sector and a lack of foreign curren- cy,” Curtis said. Last month, the Zimbabwe focused gold miner an- nounced that it entered into gold price hedging contracts for five months from February to June 2019 for 22 500 ounces of production through the purchase of put op- tions with a strike price of $1 250 per ounce. The hedge will see Caledonia receive a minimum price of $1 250 per ounce of gold for the duration of the contracts while maintaining full upside participation. The miner said gold production was seven percent high at 14,952 ounces during the last quarter of 2018 at its Zimbabwean unit (Blanket). Caledonia said total gold production for the year to December 31, 2018 was approximately 54 512 ounces, which is in line with 2018 production guidance ranging at 54 000 to 56 000 ounces. The company further advised investors that its gold production for 2019 is expected to be between 53 000 and 56 000 ounces. Caledonia anticipates that Central Shaft sinking will be completed towards mid 2019 after which the shaft will be equipped and commissioned. “Completion of the Central Shaft is the key to Blan- ket achieving its planned production of approximately 80 000 ounces of gold per annum from 2021 onwards. I expect that sinking work at Central Shaft will be com- pleted by mid-year after which we will start to equip the shaft,” Curtis said. He added that the part of the Central Shaft project is relatively capital intensive. Caledonia remains on track to achieve production of approximately 80 000 ounces of gold per annum from 2021 following completion of the deepening of its main shaft. [email protected] Page 8 | February 14-20 2019 The Financial Gazette Leader Page

News Worth Knowing Mortgaging national resources ill advisable HE decision by President Emmerson Mnangagwa’s government to mortgage gold, and allegedly tobacco to the African Export and Im- Tport Bank (Afreximbank) and the Chinese to access loans for con- sumptive purposes is not only risky but catastrophic for the country. Government’s short-term vision could result in the country’s natural resources being rapidly depleted and signed away. By spending the loaned money on recurrent government expenses, primarily civil servants’ wages, Zimbabwe is missing important opportunities to use its precious resource wealth to fund investments that offer lasting benefits. Spending money on salaries will not generate any interest or other return on investment. Investing instead in education, health and infrastructure would boost the economy in the long-term and improve Zimbabweans’ standard of living. By extracting Zimbabwe’s mineral wealth today and failing to invest in development that would offer future benefits, government is denying future generations the opportunity to share in the country’s mineral wealth. It is very likely that the actions of the current government will leave the country deep in debt, financially crippling Zimbabwe for generations to come. Already, the country is reeling from a US$18,5 billion debt. Rather than sign the nation’s minerals away to foreign nations, govern- ment should stabilise and improve Zimbabwe’s business and investment environment. At the moment investors are giving the country a wide berth due to policy inconsistencies, gross human rights violations and political and economic instability. Instead of scaring investors away, government should create an environ- Finance minister Mthuli Ncube (centre) during a tour of Nestle Zimbabwe’s plant in Harare on Mon- ment that encourages investment and industrial activity in the country. day. Nestle’s Swiss-based parent company has injected over $30 million in the past five years into It is only through developing all sectors of the economy that Zimbabwe the local unit. Picture by Freedom Mashava will successfully generate employment opportunities and achieve sustain- able economic growth. We hope that Mnangagwa learnt a thing or two during his visit to Ethio- pia when he toured an industrial park in the east African nation. Ethiopia’s state-of-the-art industrial parks have created employment for thousands of the country’s citizens, attracted foreign direct investment, Zim can save billions generating foreign currency through exports by harnessing sophisticated technology. Furthermore, it is vital that government adopts a long-term perspective when making policy decisions. It needs to consider investments that will yield using ‘smart’ energy the greatest returns for the country in the coming decades, as well as today. It is important for government to be wary of several dodgy and unknown companies such as Bonolo Trust, Tumugoke Consortium, Nkosikhona Hold- ATEST data from the Zim- hicles (EVs). Such incentives will power almost all its activities with ings and Invictus Energy, which have made suspicious commitments to in- babwe National Statistics not only support the green revolu- solar energy. vest billions of dollars in Zimbabwe’s mining and energy sectors. Agency (Zimstats) shows tion initiative but will ultimately Going “smart” comes with its Developing an environment that is conducive to doing business, and in- L that the country’s trade deficit has save the nation’s hard earned for- advantages. For starters, EVs have vesting in a healthier and more educated population is crucial to Zimba- widened to $2,3 billion in the 10 eign currency through a reduction the advantage of much lower run- bwe’s economic recovery. months to December 2018 from in imports. ning costs than vehicles powered Adopting a long-term approach will ensure that future generations in- $1,5 billion recorded in the same Zimbabwe has the potential and by fossil fuels. The electricity to herit the benefits of today’s investment instead of an underdeveloped and period in 2017. capacity to adopt the use of electric charge an EV works out around debt-ridden country. As expected, fuel imports dom- vehicles as it boasts an abundance a third as much per kilometre as inated the import bill in that peri- of untapped reserves of lithium buying petrol for the same vehicle. od, with diesel and petrol gobbling and solar power. Mines minister EVs will help to reduce harmful Southern Africa’s Leading Business and Financial Newspaper $1,5 billion of the total import bill. Winston Chitando says the coun- air pollution from exhaust emis- Established 1969 The country also spent $151 mil- try has the potential to supply 20 sions (an EV has zero exhaust Publisher: Modus Media lion on electrical energy imports. percent of the global demand for emissions). Moreso, use of EVs EDITORIAL MARKETING Zimbabwe is a net fuel im- lithium. Zimbabwe is a top 10 pro- will entail less road accidents as Editor-In-Chief & Chief Operating Ofcer General Manager - Marketing porter, hence it spends nearly 40 ducer of lithium, an alkali metal recent findings have shown that Christopher Goko: gok .zw .zw used in batteries for EVs. several EV features can improve Brand Executive - Advertising To realise this potential, pol- safety. EVs tend to have a lower Deputy Editor centre of gravity that makes them .zw Edwin Vengesa: evengesa@ngaz.co.zw Open Forum icymakers need to think outside Senior Sales Executives the box and take risks through al- less likely to roll over. Managing Editor Christobel Washaya: cwashay .zw with location of resources towards such On a national level, EVs can .zw noble plans. help with Zimbabwe’s energy se- Senior Assistant Editor .zw Of course, the picture is not curity. At present, the Southern Chris Gumunyu: chris@ngaz.co.zw Henry Masasire Sales Representatives - Harare completely bleak when it comes African nation is highly dependent News Editor .zw to embracing EVs. For instance, on other countries for petroleum John K .zw Frank Nyandoro: fny .zw Zimbabwe launched a Motor In- imports. EVs are easy to power Edreck: emudzinganyama@ngaz.co.zw percent of scarce foreign curren- dustry Development Policy last from local and renewable energy Markets Editor Sales Representative - Bulawayo Ndakaziv .zw cy inflows on fuel and electricity year, which essentially states that sources, reducing our dependence Clever Pedzisai: [email protected] imports, which translate to $1,7 adoption of EVs will be consid- on foreign oil. There are also bet- Companies Editor Brand Executive - Events billion of the total export receipts. ered in 2050. ter employment benefits for Zim- Shame Makoshori: smak .zw Kerina Chizemo: kchizemo@ngaz.co.zw Besides fuel price hikes, govern- This is not good enough ― babwe through the use of locally Online Editor Brand Executive - Subscriptions ment needs to find an alternative such a plan should be considered produced electricity Paul Nyakazeya: pnyakazey .zw Tatenda Taka: ttaka@ngaz.co.zw solution to deal with the high im- immediately so that this reality is Perhaps the most important Subscriptions Representatives Features Editor port bill for energy and power. achieved sooner rather than later. and immediate advantage of solar Ronald Madiviko: rmadivik .zw .zw Elizabeth Nyamaruze: eny .zw Previously, government at- The unsustainable fuel import bill energy are huge foreign currency tempted to trim the import bill by against a backdrop of a negative savings ― about $200 million is Production Supervisor Chief Executive Ofcer Kudzai Rushambwa: krushambwa@ngaz.co.zw .zw enforcing mandatory blending of trade balance should be enough to used annually to import electricity. fuel with ethanol. However, the force the fast tracking of the Mo- According to BMI, an interna- fuel import bill remains very high tor Industry Development Policy’s tional think tank, Zimbabwe is ex- Bulawayo Editorial, Advertising & Circulation 1st Floor, Princess Court, and has been growing over the past EVs recommendations. pected to continue relying on elec- 2nd Floor, Green Bridge South, Eastgate Complex, Corner Forth Street/9th Avenue, few months. In the long run there Alternatively, solar energy can tricity imports for the coming eight P. O. Box CY 376, CAUSEWAY, Harare, Zimbabwe Bulawayo. Tel: +263-242-781 572 Tel: (029)75873/75270 is need for a fresh look at alterna- be used to power EVs since the years due to lack of investment in Website: www Distributed by: ANZ tives that can resolve the challenge country has great potential in that the energy sector. Zimbabwe re- permanently. sphere. Zimbabwe has enormous quires 2 400 megawatts (MW) VOLUNTARY MEDIA COUNCIL OF ZIMBABWE Government should consider solar energy potential which, if per day to meet national demand, e Financial Gazette newspaper subscribes to a Code of Conduct that promotes truthful, accurate, fair and balanced news reporting. If we do not meet these standards, register your complaints with the Voluntary Media Council of incentives that encourage invest- fully exploited, can generate about while the nation only produces an Zimbabwe at: ment in alternative energy like 10 000 gigawatt hours of electric- average of 1 200MW, with the bal- No 34 Colenbrander Rd, Milton Park, Harare. Telephone: 04-778096 / 778006 24 Hr Complaints line: 0772 125 659 solar, biogas production and infra- ity per year. With over 300 days ance coming from neighbouring Email: [email protected] or [email protected] Twitter: @vmcz http://www.vmcz.co.zw | Facebook page: vmcz Zimbabwe structure that supports electric ve- of sunshine a year, Zimbabwe can states. The Financial Gazette February 14-20 2019 | Page 9 Page 10 | February 14-20 2019 The Financial Gazette

‘1:1 exchange rate is a fallacy’

S THE deepening foreign currency crisis ― coupled with the per- in this country. The 1:1 rate has out- notes? ception that there is no respect for the rule of law ― has amplified lived its usefulness. While government BM: Yes, from a policy perspec- Zimbabwe’s country risk, calls for the monetary authorities to has genuine worries with regards to the tive, the government is sincere, and A short-term impact of liberalising the one wonders who the major beneficia- liberalise the forex market have become louder. The Financial Gazette’s Online Editor Paul Nyakazeya (PN) interviewed former Reserve Bank exchange rate, the long-term benefits ries of the policy are. However, from a of Zimbabwe (RBZ) board member and Oxlink Capital chief executive of a market-based exchange rate out- practical perspective, there is no sincer- Brains Muchemwa (BM) (pictured) for his views on the crisis. Below are weigh by far the short-term benefits. ity whatsoever. The very reason why excerpts of the interview. In any case, the prices of most goods government applies it selectively. and services are already pegged to the PN: As a businessman and econ- PN: Is Zimbabwe’s currency re- rate without a single cent in reserves to parallel market rate. omist, are you sure you do not know gime sustainable? support it is definitely not sustainable. PN: Do you think our govern- who is really benefiting from the 1:1 BM: Our present currency regime As a policy, it is the single biggest ment is sincere on the 1:1 exchange exchange rate? that is premised on a pegged exchange threat to pricing and financial stability rate between the US dollar and bond BM: All those getting foreign cur-

rency allocated at 1:1 are beneficiaries. Its bonanza capital. Who would bother taking the risk of exporting to generate foreign cur- rency when one can easily send an application to the RBZ in the comfort of their office and get foreign currency at 1:1? That is the moral hazard associated with such risk-free earnings. PN: The government has insisted that the bond notes and RTGS are not currency. What is your take? BM: We have amazing policy making, believe it or not. Our national payments system processes around $14 billion every month in RTGS, yet we have the amazing guts to deny that RTGS is a currency. In short, the RTGS is our local currency and there- fore, this talk that we need local currency is misplaced because we already have a local currency and its name is RTGS. The bond notes are just the physical manifestations of our electronic RTGS currency and therefore, it is one and the same thing. What we can possibly do is to rename this currency and give it another name. But whatever name we give it, this will not change its purchasing power. If your RTGS balance in the bank can afford 100 loaves of bread today, we can reintroduce a new currency, but you will still afford 100 loaves after the conversion, if not less. So, I honestly do not understand the fixation about changing the name of the currency as if it will change any fun- damentals. PN: Some shops are now rejecting payments in RTGS, including Zimra for vehicle imports. Are we re-dollarising? BM: The very reason why the RTGS is being rejected is spe- cifically because of the insistence on the 1:1 rate. And as long as the policy makers do not show confidence in the RTGS, and sup- port its value, the economy will eventually abandon the RTGS. Practically, the only way for policy makers to support the value of the bond notes is to liberalise the exchange rate and curtail mon- ey supply growth. Contrary to the widely held belief by policy makers, the surest way to kill a currency is to peg it to the US dol- lar and insist that its 1:1 while at the same time driving domestic money supply growth through the roof. Currently, the actions of the policy makers confirm reluctance to support the value of the RTGS and the market has been reading the signals well. PN: That is a strange view. How will policy makers benefit from a defunct RTGS? BM: The government is the single biggest borrower in the market with about $10 billion in Treasury Bills (TBs) all over the place. Basically, the demise of the RTGS will definitely lessen government's real obligation to subscribers of TBs. Recall it hap- pened before in 2008. The subsequent demonetisation that even- tually happened in 2015 applied a weird exchange rate of 1:35 quadrillion to demonitise the Zimbabwe dollar balances. PN: Who was the biggest beneficiary of the demonetisa- tion? BM: It was the government. It is the same this time around. Government is pretty sure its TBs of around $10 billion are not US dollars and that is fact. It would be disastrous for this genera- tion and the next for government to pay or settle these TBs in real US dollars. Therefore, the only sensible option for me is for this balloon to be deflated and that involves introducing an exchange rate that will whittle down the high perceived value of these se- curities to their proper market values. The exchange rate route is a better way than to completely kill the RTGS values by insisting it's 1:1, while driving money supply growth. PN: In light of all you have said, what should the RBZ do on the currency regime? BM: The RBZ did well by introducing the bond note at a time fiscal excesses made it virtually impossible to maintain- finan cial stability. The bond note project was successful in physically monetising the RTGS balances and averting, to some extent, cash shortages. However, the unsustainable money supply growth on the back of fiscal excesses upset the balance in a big way and today the market erroneously thinks it’s the bond notes per se that are the cause of loss of value of our monetary balances. Like I said before, the RBZ needs to convince whoever makes the decision that the only way to protect the value of RTGS and bond notes is to float the rate. As long as government stops print- ing money and pursues austerity measures with sincerity, the ex- change rate will stabilise within three to four months. And corpo- rates will have a chance to preserve part of their working capital and hence jobs. [email protected] The Financial Gazette February 14-20 2019 | Page 11 Advetorial Antimicrobial Resistance: Action at community level

Wilfred Zvarevashe AMR, this can be busi- line antiretroviral drugs very costly to the nation commu- ness for another day. have been noted which in terms of the lives lost nities. he spread of an- Zimbabwe faces a is quite worrisome con- and also the resources Storing timicrobial re- high burden of infec- sidering the efforts that required to manage the of un- Tsistance (AMR) tious diseases, includ- have been done to re- outbreak, since Azith- used threatens a return to ing Tuberculosis (TB), duce the burden and in- romycin a more costly antibiot- the pre-antibiotic era of Malaria, Human Im- cidence of these diseas- molecule was then re- ics has untreatable infections, munodeficiency Virus es. Diarrhoeal diseases quired. made while undoing many (HIV) and Diarrhoeal are mainly caused by In view of the chal- many of modern medicine’s diseases. In Zimbabwe rotavirus in the winter lenges posed by AMR, people greatest advances. An- AMR has been identi- months and bacteria in action at community lev- “help- timicrobial resistance fied in common infec- summer months where el is crucial in trying to ful” to refers to the ability of tions. For instance, there Salmonella and Shigel- contain or mitigate the others infection-causing mi- is typhoid resistance to la are common patho- effects of AMR. Com- when croorganisms such as Ciprofloxacin, Gono- gens, are now showing munity efforts are key they bacteria, viruses, fungi cocci, a causative agent increasing resistance to since that’s where we give and parasites to change for Gonorrhea a sexual- first line antibiotics2. As belong and most people these in ways that render med- ly transmitted infection a country we had a dif- are affected from. At medi- ications previously used resistance to Ceftriax- ficult experience from community level most cines to those in need. It’s typ- ical that when your neigh- bor’s child has a cough into consideration? Sec- appropriate health pro- or a fever one can give ondly is the medication fessional to decide. Do them the remainder of still safe and effective as not share it consult from the medicines that was a form treatment consid- the relevant health pro- left by their child from ering the shelf life and fessionals and health fa- their previous episode safety from other sourc- cilities to get your own of ill- es of contamination? medication. Do not share Finally, introducing this antibiotics with others. “At com- medication in the body As communities let of the next person in us spread the word and munity level insufficient quan- ensure that when one re- tities can trig- ceives an antibiotic from most patients are ger AMR. The a health facility they non-compliant to an- available quan- should take the medica- tities and doses tion as directed by the tibiotic regimens they administered health professional. might not be suf- As communities receive from health ficient to destroy let us ensure we get the microbials, our medicines from li- facilities or they keep hence they de- censed health facilities velop resistance and health profession- the unused antibi- against this med- als in accordance with ication. The act our national laws. This otics for use in the of kindness ex- protects us from the risk future...” tended has initiated of acquiring counterfeit a humungous problem medicines or hazardous not only to individuals substances from undes- ness. This does ring a but the community since ignated facilities and in- bell to someone. In as the infections are highly dividuals. much as this is a sign of communicable. kindness and generosity, As communities it is this has its significant important that we do not 1 Wellcome Trust: Evidence for Action implications to the re- share prescriptions of on Antimicrobial Resistance 2016 2 The Centre for Disease Dynamics, to treat the infection, one, Mycobacterium the recent Cholera out- patients are non-com- cipient and the commu- antibiotics as this is not Economics and Policy: Situational 1 ineffective . The effects Tuberculosis resistance break that hard hit west- pliant to antibiotic regi- nity consequently. First- safe and can have seri- Analysis of Antimicrobial Use and of AMR have signifi- to multi-drug regimen ern Harare suburbs from mens they receive from ly, is the medication safe ous health implications. Resistance in Humans and Animals in cant negative impact on (MDR-TB). Malaria August 2018, which the health facilities or they for consumption by that Do not share prescrip- Zimbabwe 2017. health outcomes and the resistance to first gen- causative agent showed keep the unused antibi- individual in terms of al- tions because ones prob- 3 https://www.who.int/mediacentre/ economy but this publi- eration antimalarials as resistance to Cipro- otics for use in the fu- lergies which can trigger lems might not be the events/2015/world-antibiotic-aware- cation does not seek to well as HIV resistance floxacin. This made the ture. This is a very com- life threatening condi- others problem. It takes ness-week/infographic-public. focus on the effects of to some first and second management of the cases mon practice within our tions if that is not taken a qualified and licensed jpg?ua=1 Page 12 | February 14-20 2019 The Financial Gazette

NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY GRADUATE SCHOOL OF BUSINESS POSTGRADUATE ADMISSIONS FOR JULY 2019

The NUST Graduate School of Business has developed a reputation for component of three semesters and a dissertation in the last semester. leading-edge teaching and delivery of graduate management programmes for transformation in the private and public sectors. We are committed to meeting Entry Requirements challenges of today’s and tomorrow’s Zimbabwe by making real the idea of To be considered for admission, a candidate should normally: excellence through high quality and practically oriented graduate management a) Be at least 25 years of age. education. b) Hold a relevant Bachelor’s degree of this University, or its equivalent. Applications are invited for the following MBA programmes commencing in c) Have had at least TWO years’ practical work experience in a July 2019. managerial capacity.

1.0 MASTER OF BUSINESS ADMINISTRATION (GENERAL Short-listed candidates will be interviewed as part of the selection MBA) process (EVENING FULL TIME – 12 MONTHS) AVAILABLE BOTH IN BULAWAYO AND HARARE. 3.0 MASTER OF BUSINESS ADMINISTRATION (STRATEGIC MANAGEMENT) (EVENING FULL TIME - 18 MONTHS) The major focus of the Master of Business Administration degree is on AVAILABLE BOTH IN BULAWAYO AND HARARE. integrating theory and practice aimed at producing men and women who aspire towards senior management. The full-time MBA programme, which The evening MBA (Strategic Management) is a unique programme is offered during the evening and weekends, provides students with a that is practically oriented in both its delivery and examination, comprehensive grounding in all the main functional areas of business that is targeted at Senior Executives in both the private and public administration and develops students’ analytical and interpersonal skills sectors. The emphasis of this programme is on understanding the in the exercise of strategic leadership and in the solution of business intricacies and dynamics of managing strategically in today’s fast- problems. changing and demanding business environment. A multi-pronged and interactive presentation approach is used as students interact Classes are scheduled in the evenings from 5pm – 8pm daily, including with various experts and business leaders from a broad spectrum of weekends (8am – 5pm). industry, commerce, the public and the NGO sector.

Entry Requirements This programme takes a minimum of 18 months and a maximum of To be considered for admission, a candidate should normally: 36 months to complete and is offered in four stages. a) Be at least 25 years of age. b) Hold a relevant Bachelor’s degree with a pass level of 2.2 or Entry Requirements better of this University or any other approved university, or its To be considered for admission, a candidate should normally: equivalent. a) Be at least 30 years of age. c) Have had at least ONE (1) year practical work experience b) Hold a relevant Bachelor’s degree of this University, or its gained at supervisory/managerial level. equivalent. c) Have had at least THREE years’ practical work experience in Short-listed candidates will be interviewed as part of the selection a managerial capacity. process Shortlisted candidates will be interviewed as part of the selection Scholarship for GMBA Programme process. 40 full scholarships are being offered for 30 female and 10 male applicants for the GMBA programme. To qualify for the Scholarship, Applications should be directed to: applicants must demonstrate strong leadership qualities in the communities they reside in. The Senior Assistant Registrar Admissions and Student Records The scholarships are being offered by SHECAN (an NGO) who NUST will be responsible for selecting successful applicants. NUST is Gwanda Road/Cecil Avenue not involved in the selection of the applicants. Those who do not P O Box AC 939, Ascot qualify for the scholarship but meet NUST entry requirements will Bulawayo still be admitted on full fees payment. Those who have already Telephone: 09-282842/39/58; 289557; 284231; 280371 Fax:09-286803 been offered an MBA place at NUST will not be considered for the scholarship. For further details on the scholarship, please visit Application forms may also be collected from the NUST Offi ce in www.shecan.co.zw HARARE, at ZIMDEF House, near Rotten Row Magistrates Court, Phone 04-794848/251534 or may be downloaded from our website www.nust.ac.zw. 2.0 MASTER OF BUSINESS ADMINISTRATION (EXECUTIVE MBA) The completed application form should be accompanied by a non- (EVENING FULL TIME – 18 MONTHS) AVAILABLE BOTH refundable application fee of US$20 in cash and CERTIFIED copies of IN BULAWAYO AND HARARE. the following: a) Birth Certifi cate The full-time MBA programme, popularly known as the Executive b) National identifi cation card or relevant pages of a candidate’s passport MBA, is a cutting-edge, multi-disciplinary degree programme with the candidate’s personal details. targeted at Senior Executives/Managers in industry, commerce c) Certifi ed copies of relevant academic and/or professional certifi cates and the public sector. Emphasis is placed on producing strategic and transcripts. business leaders who can operate at local, regional and international d) A detailed CV which should include names and addresses of two levels, steering their organizations through stormy and volatile referees. environments, successfully. e) Full contact details: home and work landline telephone numbers, cell numbers and e-mails address(es). The programme takes a minimum of 18 months and a maximum of 36 months to complete and is offered in four stages – a taught The closing date for applications is 4 March 2019. February 14-20 2019 Page 13 Companies&Markets The Financial Gazette COTTCO VENTURES INTO COTTON FARMING — 14 USD/BWP Sugar (USD/lb) Cotton (USD/lb) Nickel (USD/t) Palladium(USD/oz) THE Cotton Company of Zimbabwe says it has applied for 40 000 hectares of land in Mbire district to venture into cotton farming. 0,14% 1,36% 0,13% 0,12% 0,40% 10,4954 12,66 71,20 12 475,08 1 411,41

Multinationals top Zimglass shuts down ZSE’s hot stocks

Adelaide Moyo Ndakaziva Majaka Business Reporter Markets Editor IMBABWE Stock Exchange-listed counters with IMBABWE Glass Industries (Zim- offshore operations are expected to provide a curren- glass) has entered the final stages of Zcy hedge in 2019 and sail through a difficult climate liquidation as parent company, Indus- in the country, analysts have said. Z Ranga Makwata, a market analyst, said Old Mutual trial Development Corporation (IDC), moves to conclude a restructuring exercise by year Limited, Portland Pretoria Cement (PPC), Padenga Hold- end, an IDC executive has said. ings and SeedCo International stand out as stocks of inter- Benjamin Kumalo, IDC’s general manag- est in 2019 because of that hedge mechanism. er, last week said while they had identified in- He said market growth will be limited to stocks provid- vestors for other subsidiaries it had put on the ing a currency hedge of some sort through a forex generat- market, liquidation at Zimbabwe’s sole glass ing ability and or having offshore assets or operations. manufacturer was coming to a close. “With austerity seeking to mop up the liquidity from “Zimglass is under final liquidation and the market and containing aggregate demand in the market, we anticipate this to be concluded before the business growth will be limited, so earnings are unlikely to year ends,” Kumalo said. be an attractive factor,” Makwata told The Financial Ga- This comes as Zimglass started aggres- zette. sively looking for an investor who could The foreign currency crisis in the country is threaten- inject $7 million towards plant revival in ing to cripple even the largest counters listed on the local 2017. Liquidation was mooted after a poten- bourse hence analysts have said investors will focus on val- tial Mauritian investor pulled out of the deal ue preservation given a backdrop of rising inflation. due to the company’s indebtedness, opting “I would say the major theme this year is value pres- instead to buy its assets. ervation given a backdrop of rising inflation being caused In the same year, Johannesburg Securities mainly by cost push factors in particular foreign currency Exchange-listed Nampak, which specialises which has become scarcer and stronger against the local in glass, plastics, paper and tin packaging, currency (bond or RTGS),” he said. made enquiries over the Zimglass disposal. A local equities firm, IH Securities (IH) said: “We are The firm asked for Zimglass’ balance highly optimistic about Cassava SmarTech Zimbabwe Zimglass used to manufacture glass packaging material for alcoholic beverages. sheet and financial statements, which were (Cassava) as it leverages off the country’s liquidity crisis, availed to the South African based firm. as well as Padenga and Seedco International which provide a currency hedge with revenues earned in hard currency.” However, the expression of interest never entities through privatisation and liquidation course, this also applies to Zimbabwe Grain Stock brokers say interest in Old Mutual shares could be materialised into a concrete undertaking. — started, IDC had disposed of its 51 percent Bag,” he said. a result of the group breaking up its vast financial empire Zimglass — which has been insolvent shareholding in Almin Metal Industries and Uralchem has already stated it will not into four strategic units. since 2010 — voluntarily applied for judicial its 49 percent interest in Stone Holdings. The settle for a minority stake in Chemplex, with The diversified group has said it has plans to venture management in 2014 citing lack of capital, group also managed to liquidate Zimbabwe Dmitry Mazepin, Uralchem owner, saying he into the tourism industry after acquiring 6,6 hectares of land debt overhang and mismanagement. Copper Industries. would only take a deal that allowed him at in Victoria Falls. The group is also set to open its $21,4 mil- Its assets stood at $19,2 million as at De- “However, investors for Iranzim Textiles least 50 percent of the company. lion Small to Medium Enterprise complex soon. cember 31, 2014 while its liabilities were at and Travan Blankets have been identified,” “Well of course I don’t think we’ll agree Market analysts have also said PPC will entice inves- $31,2 million. said Kumalo. to less than 50/50…we will not be simple mi- tors. The Gweru-based firm used to manufac- He also revealed that IDC was in discus- nority shareholders there,” Mazepin said last The cement maker recently announced that it will invest ture glass packaging material for alcoholic sions with several original equipment manu- month. in government bonds after its failure to repatriate dividends and sparkling beverages, food, liquor and facturers to partner the corporation in motor IDC last year moved to dilute its 100 per- to its parent firm in South Africa. pharmaceutical products. assembler Willowvale Motor Industries and cent stake in the country’s biggest fertiliser PPC management said it is implementing a number of Major domestic customers included Delta Deven Engineering. maker through a disposal that would leave it initiatives to mitigate the impact of inflation and liquidity Beverages, African Distillers, Mutare Bot- The IDC boss said his organization was as an equity partner. constraints on business, including local procurement and tling Company, Straitia Investments, Olivine optimistic it would also conclude discussions IDC — which mandated Ernst & Young increasing exports. Industries, Datlabs and E. Snell and Compa- for its fertiliser manufacturing unit which has Advisory Services to facilitate the recapital- IH said Padenga is seen continuously defending its mar- ny. attracted the attention of Russian fertiliser gi- isation of Chemplex in order to capacitate gins in the long-run given that the business has managed to Meanwhile, the IDC boss pointed out that ant, Uralchem. the fertilizer value chain — is also looking at mitigate factors, which have impacted the business over the since its restructuring — which will see the “It is our hope and we are optimistic disposal of Chemplex’s non-fertiliser subsid- past few years, thus improving operational efficiency. state-owned organisation getting rid of some Chemplex will also be closed this year… Of iaries. [email protected] [email protected] Page 14 | February 14-20 2019 The Financial Gazette Companies & Markets Cottco ventures into cotton farming Omega Ukama Business Reporter Bata is the biggest shoe manufacturer in Zimbabwe, with over 1 200 workers. HE Cotton Company of Zimba- bwe (Cottco) says it has applied Tfor 40 000 hectares of land in Mbire district to venture into cotton Bata diversifies into farming. The company, which had hit hard times with its shares being suspended from trading on the Zimbabwe Stock protective wear market Exchange in 2014 after it applied for judicial management, seems to have regained its mojo since it started ad- Ndakaziva Majaka “We have made half a million dollars ministering the government’s cotton At its peak in 2013, the country produced 352 000 tonnes of cotton. Markets Editor investment for the production of gum- inputs scheme. boots… We should also produce safety “We have made an application for in demand globally and we are failing fairness in the industry and creating ATA, Zimbabwe’s biggest shoe and industrial shoes for the local market. land in Mbire district so that we can to satisfy the market,” he said. a conducive environment for invest- manufacturer and exporter, says it Currently, we are importing the gum- venture into cotton farming,” Benedict Cotton production in Zimbabwe ment. Bis diversifying its product portfo- boots from South Africa and Zambia,” he Muguri-Gumeni, Cottco’s head of cor- has been on the rebound since the “The more investors that come into lio to include protective wear as a way of said then. porate services, said at an investment introduction of government’s input the industry, the more competitive it increasing revenue streams. In 2017, Bata re-introduced Sandak conference in Mbire recently. scheme three years ago. becomes for the farmer. As long as we Ehsan Zaman, Bata’s managing di- and Pata Pata brands for the local and ex- “We are looking at getting around The country’s cotton production have the irregularities it is not viable rector, said the company was in final dis- port markets. 20 000 hectares in Kanyemba and an- had plummeted to 28 000 tonnes in the for any investor to come in other than cussions with financiers for this phase of “We produce 1,5 million Pata Patas other 20 000 in Mushumbi where we 2015/16 season, the lowest in nearly the government,” he said. its expansion drive which started with a per year and we have also been able to will do irrigated cotton,” he said. two decades, but output bounced back Last year, Cottco came under fire $500 000 gumboot factory last year. expand our export market to Malawi, Muguri-Gumeni said the venture with national deliveries reaching 142 from farmers who were against the “We have been given the go ahead to Zambia and Botswana for our variety of would not affect its out-grower pro- 000 tonnes last year. company’s push to have its monopoly launch the next phase of our expansion shoe products. We are also expanding our gramme. At its peak in 2013, the country on cotton marketing restored. drive. We intend to launch the new line export markets to Kenya and South Afri- “There will be no conflict of inter- produced 352 000 tonnes of cotton. Muguri-Gumeni said the com- by mid-year once we finalise a half a mil- ca. Our shoe products are in demand both est since we will still be able to pro- Cottco says it has managed to “re- pany is targeting to register 45 000 lion dollar loan with our financiers. locally and abroad because they are dura- mote our out-grower schemes while gain the confidence of farmers by way out-grower farmers this season. He “We want to purchase a safety shoe ble, but affordable,” Zaman said. at the same time producing our own of re-engagement. said the company also has plans to injection machine and a direct injection Bata is the biggest shoe manufactur- cotton,” he said. “We have tried to make conditions establish additional ginneries in Mbire machine which will be the first of its kind er in the country, with over 1 200 work- “There is vast market for lint glob- favourable to the farmer,” Muguri-Gu- to complement the one in Muzarabani, in the country,” he said. ers. At its peak, the company had a 5 ally. If the country is able to produce meni said. “which cannot absorb the current cot- Following tough times after the 2008 000-strong workforce, but the number a million tonnes of lint today, all of it He pointed out that there are issues ton production”. hyperinflationary era, Bata has sought to dwindled over the years due to the eco- will be bought. Zimbabwean cotton is that should be addressed with regards [email protected] re-invent and diversify its offerings. nomic downturn. Since then, the shoe manufacturer has The shoe company is now targeting opened more stores around the country, new markets such as growth points and including new branches in Arundel, Ma- small towns across the country. belreign, Masvingo, Norton, Murambin- In addition to the expansion, Bata has da and High Glen among others. also continued with its refurbishment ex- At the beginning of 2016, Bata had 50 ercise, which has seen the shoe manufac- stores which shot up to 60 in the first half turer renovating over 20 stores. of 2018. Refurbishment and modernisation Last year, Zaman said Bata had identi- of Bata Stores began in 2012 beginning fied a gap in the protective wear segment with the face-lift of its Leopold Takawira and was moving to exploit the opportuni- Branch in Harare. ty in the local and export markets. [email protected] The Financial Gazette February 14-20 2019 | Page 15 Companies & Markets Nampak frets over $3m forex requirement

Ndakaziva Majaka “We are continuing to develop export constraints and improve the product offering to our custom- Markets Editor markets for our products and have grown ers,” the Nampka boss said. Dairibord scales our exports into the region, particularly In the fi rst quarter ended December 31, 2018, Nampak AMPAK Zimbabwe (Nampak) Malawi and Democratic Republic of Con- reported a 13 percent increase in sales revenue, with this says it needs at least $3 million go over the last 12 months. However, these growth attributed to an out-performance in volumes in line Nin foreign currency per month to exports are not yet enough to fund our raw with strong demand across all of the company’s products down scheme remain afl oat, amid revelations its major material import requirements,” he told within the group’s units. shareholder has cut off currency allocations shareholders at an annual general meeting. The three units operating under Nampak Zimbabwe Ndakaziva Majaka to the local unit. While Nampak has sought to penetrate are Hunyani Holdings, Mega Pak and Carnaud Metal Box Markets Editor John Van Gend, Nampak’s managing the regional market, the net realisable prof- (CMB), which were merged into one business entity fi ve director, last week said while all units were its have been too little to fi nance import years ago by the parent company Nampak Holdings Ltd. AIRIBORD Hold- operating profi tably, the packaging man- demands. Consequently, the fi rm is looking Van Gend said during the fi rst quarter ended December ings (Dairibord) ufacturer had not been spared from Zim- at growing its foreign currency generating 31, 2018, Nampak’s subsidiary Hunyani started to experi- Dsays it has scaled babwe’s biting foreign exchange scarcity, markets by 30 percent. ence large volumes ahead of the prior year, as demand for down its heifer import pro- a situation which has seen its major share- “All units are currently trading profi t- local commercial corrugated products remained high, add- gramme on the back of in- holder Nampak Holdings withdraw foreign ably, whilst treasury and cash fl ow man- ing that it was receiving orders for local and export orders creasing costs. exchange support. agement remains a key focus area. We are for tobacco boxes. Anthony Mandiwanza “We need about $3,5 million per month currently evaluating various fi nancing op- He said the company’s unit, Megapak, was attracting a (pictured), the listed milk in forex… No, we have not been getting tions that may allow us to continue capital strong demand for beverage-related products with a sizable processor’s chief executive, much from the central bank. investment, to address areas of capacity export market into the DRC. newsdesk@fi ngaz.co.zw last week said the scheme — which contributed 15 percent of the group’s total milk intake in the fi rst half of 2018 — had been replaced by a semen importation strategy. “We have scaled down and changed the tact by bringing in semen which is then artifi cially inseminated locally. Of course, the forex situation also played a part,” the Dairibord boss said during a tour of the fi rm’s Harare plant by the Par- liamentary Committee on Industry. Since 2015, the group has been importing heifers to boost raw milk supply and product output, in a move that Leading property owners and developers has improved the company’s capacity utilisation and turn- over with specifi c focus on exports to Zambia, South Africa and Mozambique. Annual General Meeting As the gap between supply and demand of raw milk in Zimbabwe remained signifi cant, the programme assisted Notice to members Dairibord’s growth through increased milk output. “There will not be a signifi cant impact as we have man- Notice is hereby given that the 52nd Annual General Meeting of Mashonaland Holdings Limited aged to fi nd a substitute solution. However, the local dairy will be held in the Boardroom, 19th Floor, ZB Life Towers, 77 Jason Moyo Avenue, Harare on sector still faces many challenges,” Mandiwanza said. Monday, 18 March 2019 at 1200 hours for the purpose of transacting the following business: At its peak between 1990 and 1991, the country pro- duced about 260 million litres of milk. The Dairibord boss 1. Financial Statements and Statutory Reports said that about 550 commercial farmers were responsible To receive and adopt the Audited Financial Statements and the Report of the Directors and Auditors for the year for the record output. ended 30 September 2018. However, the fi gure has dropped to 70 million litres of raw milk produced last year against a national demand of 2. Directorate Mr. R. Mutandagayi and Mr. R. Watungwa retire by rotation in accordance with article 101 of the Articles of 120 million litres. Association. Both Directors, being eligible, offer themselves for re-election. Zimbabwe’s national dairy herd has also plummeted to 32 000 from its peak of 192 000. 3. Remuneration of Directors Mandiwanza pointed out that the dairy sector had not To approve the remuneration of Directors for the past financial year. been spared from Zimbabwe’s pressing foreign exchange 4. Special Notice: Rotation of External Auditors shortages. In order to comply with the recommendations of the King IV Report, and to bring the Company’s Corporate “From 2009 to September last year the dairy industry Governance practices into compliance with regional practices, it has been agreed that the Company’s Auditor should was receiving necessary allocations from the central and be rotated after a five-year cycle. To that end, a resolution will be taken: 4.1 To commence forthwith a tender process for the appointment of new Auditors for the coming year. commercial banks hence the increase in production we 4.2 To the effect that, having completed the tender process, KPMG Chartered Accountants (Zimbabwe) will be witnessed from 38 million litres in 2008 to the current 70 retired and the best candidate identified by the Board of Directors, shall be appointed as the new Auditor to million litres. carry out the 2019 Company Audit, which appointment shall be ratified at the Company’s 2020 AGM. “But now, allocations are scarce in between so naturally, 4.3 To approve the fees of KPMG for the past financial year. this will have an effect on the sector,” he said. 5. Ordinary Resolution to Serve the Notice for AGM and Annual Report by Electronic Means According to Mandiwanza, Dairibord has had to shut That, in accordance with Article 57 as read with Article 139 of the Company’s Articles of Association, the Company down some of its plants nationally owing to insuffi cient be, as it is hereby, authorised to publish the Notice of the Annual General Meeting, and serve the Annual Report, milk production in the country. Company Accounts, Audit Report and any ancillary documents on its members by electronic means. Should a shareholder wish to receive the aforementioned documents in hard copy format, he/she shall communicate to the “We have had to mothball our plant in Bulawayo be- Company within 30 days after year end, and these documents will be availed to him/her in hard copy format. cause we are not producing enough milk. The same applies for our plant in Gweru, which was shut down, and our plant 6. Share Buy-back in Kadoma which used to make the best cheese in Southern Ordinary Resolution: Extension of Share Buy-back “That, in accordance with Article 52 of the Articles of Association, Africa is also mothballed owing to the low milk volumes. the Company be, as it is hereby, authorised and empowered to purchase its own shares in issue up to a maximum of Our Chipinge and Mutare plants are not operating at full po- 200 000 000 (two hundred million) shares which is 11% (eleven percent) of the issued share capital, upon such terms tential,” he said. newsdesk@fi ngaz.co.zw and conditions and in such amounts as the directors of the Company may from time to time determine and such authority hereby specifies that: a) The authority shall expire on 1 April 2020 or the next Annual General Meeting, whichever is the sooner. b) Acquisitions shall be of ordinary shares which, in aggregate in any financial year, shall not exceed 11% (eleven percent) of the Company’s issued share capital. c) The prices at which such ordinary shares may be acquired will not be more than 5% (five percent) above and 5% (five percent) below the weighted average of the market price at which such ordinary shares are traded on the Zimbabwe Stock Exchange, as determined over the 5 (five) business days immediately preceding the date of the purchase of such ordinary shares by the Company.

6.1 After considering the effect of the repurchase of the shares, the Directors are confident that: a) The company will be able to pay its debts for the period of 12 months after the date of the notice of the Annual General Meeting. b) The assets of the Company will be in excess of its liabilities. c) The share capital and reserves of the Company are adequate for a period of 12 months after the date of the notice of the Annual General Meeting. d) The Company will have adequate working capital for the period of 12 months after the date of the notice of the Annual General Meeting.

7. Any Other Business To transact any other business as may be transacted at an Annual General Meeting.

ZB Life Towers By Order of the Board 12th Floor Honey & Blanckenberg 77 Jason Moyo Avenue Company Secretary Harare 14 February 2019

Appointment of Proxy In terms of the Companies Act, members who are entitled to attend and vote at the meeting may appoint one or more proxies to attend, vote and speak in their stead. A proxy need not be a member of the Company. To be effective, the proxy must be lodged at the Company’s registered office at least 48 hours before the appointed time of the meeting. Page 16 | February 14-20 2019 The Financial Gazette Companies & Markets Govt intensifies calls for import substitution

Tabitha Mutenga Features Editor

NDUSTRY minister Mangaliso Ndhlovu says Zimbabwe can save Imillions of dollars in foreign curren- cy by increasing production of local raw materials. The southern African country is cur- rently battling an acute foreign currency crisis due to widening trade deficit result- ing in food shortages, company closures and high unemployment rate among other things. Ndhlovu, who was addressing cap- tains of industry at a Value Chain Devel- opment Workshop, said cheap imports that can be produced locally were drain- ing the country of the much needed for- eign currency. “During the third quarter of 2018, the ministry…carried out an analysis of the import structure of Zimbabwe mostly focusing on the 2016/2017 to 2017/2018 Mangaliso Ndhlovu year. A paper was produced which showed that Zimbabwe’s trade deficit has continued to widen during the past years “In the dairy sector, for every one litre mostly due to an influx of cheap imports of milk imported into Zimbabwe it costs but also due to the increase in the im- $0,85 in foreign currency. If the same litre portation of raw materials, which was a is manufactured locally, it costs $0,25. In good sign but it was a reflection that our the packaging sector, the cost of import- production in terms of the raw materials ing a finished mealie-meal bag is $0,20 was declining. and if the same is manufactured locally, “At the moment, about $35 million is $0,12 will be required for raw material required to import raw materials to pro- importation, thus achieving potential- duce 100 000 tonnes of ammonium ni- ly foreign currency saving of $0,08 per trate fertiliser. This will result in foreign bag,” Ndhlovu said. currency savings of $15 million if the On average there is a cost saving of ammonium nitrate is produced locally $0,40 for every $1 spent on importing fin- than imported,” he said. ished packaging material. Last year, government allocated “For the pharmaceutical industry, the $130 million to the industry for the US$ component required to manufacture importation of finished fertilisers and a product locally is between 30 and 40 raw materials. Sable Chemicals between percent of the local cost.” January and July 2018, produced 27 000 The analysis also showed that the tonnes of ammonium nitrate, against a country can save scarce foreign currency target of 50 000 tonnes, yet the fertiliser either by facilitating the manufacturing or manufacturer has an installed capacity of growing of the major imported products 240 000 tonnes per annum enough to ca- through developing and strengthening ter for loca1l demand and exports. value chains of the imported products. The analysis showed that the major “To ensure continued operations and imported products were potatoes, fer- revival of the local industry, the ministry tilisers, dairy products, pharmaceuticals, is working on a number of programmes packaging material, crude soya bean oil and chief among them is the promotion and wheat. of value chain development in selected Zimbabwe’s trade deficit went up by identified areas which have high employ- 27 percent from $1,2 billion to $1,5 bil- ment and export potential as well as com- lion between the period February-July parative and competitive advantage,” he 2017 and February-July 2018. said. [email protected]

PLANT AND MACHINERY VALUER

A post has arisen within the Valuation Department of Knight Frank Zimbabwe for an experienced Plant and Machinery Valuer. This is a busy department and a competitive remuneration package will be offered. Interested applicants must possess the following: • More than 5 years experience • A traceable work record • Below the age of 50 years • Ability to work under pressure • Be prepared to travel out of Harare and into the SADC region.

If you meet the above please send your CV by the 15th of February 2019 to:-

Partner In-Charge Knight Frank First Floor, Finsure House, 86 Kwame Nkrumah Avenue HARARE The Financial Gazette February 14-20 2019 | Page 17 Companies & Markets Cambria finds safe haven in Zim Adelaide Moyo “The outlook for Foreign Direct Invest- to see the glass as half-full,” the company sible deterioration in the purchasing power of cash and Business Reporter ment (FDI) and balance of payment sup- said. cash-equivalents in Zimbabwe.” port for Zimbabwe signifi cantly dimmed Cambria’s operations comprise of Pay- Radar was delisted on the local bourse in 2016 follow- ONDON-listed Cambria Africa Plc (Cambria) is following violent protests and the ensuing serv Africa, provider of electronic data ing its voluntary application for suspension due to under- planning to capitalise on Zimbabwe’s isolation from clampdown by government forces,” the intelligence switching services, “pay slip” performance of the group. Linternational capital and invest in the southern Afri- fi rm said in its latest results. processing and payroll-based micro-fi - Payserv Africa, a FinTech company reported a $7,57 can country at lower costs. “Historically, companies that have sur- nance loan processing and Millchem, a million in revenues in full year 2018. This comes as Zimbabwe’s international re-engage- vived such seismic shifts in the country’s value-added chemicals distributor. Payserv’s Paynet Zimbabwe subsidiary facilitated ment efforts hit a snag after several countries, including the fortunes have come back stronger and more The fi rm is in discussions to further in- about 40 percent of all payments in the country. Cambria United Kingdom, rapped the government’s crackdown on profi table. Cambria expects to survive the crease its shareholding at Radar Holdings said Paynet facilitated 27,7 million transactions in full year demonstrators and opposition activists last month, which dislocations created by these events.” after Paynet Zimbabwe, a wholly owned 2018. left at least 12 people dead, dozens critically injured and The Zimbabwe-focused investment subsidiary of Cambria, acquired a benefi - The group reported a profi tability driven by a surge in hundreds in remand prisons. fi rm said after the introduction of a num- cial interest of 7,83 percent last year. fi ntech solutions and the deepening fi nancial inclusion in The nationwide protests, characterised by destruction ber of economic measures that have cre- “In the opinion of the board, Radar will Zimbabwe. and looting of property, were sparked by government’s ated uncertainty and dissipated hopes for be a direct benefi ciary of any uptick in the Paynet controls two percent of the total volumes of decision to increase the price of fuel by 150 percent an- increased direct foreign investment and Zimbabwe economy through its regional electronic transactions in a market that is dominated by nounced by President Emmerson Mnangagwa. balance of payment support in the near monopoly in brick manufacturing and its EcoCash. Cambria said the recent events will push Zimbabwe term it is well-positioned to weather these signifi cant development land holdings,” Autopay traded profi tably after Autopay’s payment bu- into closer economic cooperation with neighbouring South uncertainties. the fi rm said. reau, launched in 2017, processed 400,000 transactions, up Africa and in turn this will be a strong basis for a turn- “As a result of our proactive measures “In addition, the Radar investment pro- almost seven-fold from 59,000 in full year 2017. around in terms of economic and political stability. in advance of these events, we continue vides an attractive hedge against the pos- newsdesk@fi ngaz.co.zw

Zimnat Group - Registration of Suppliers

The Zimnat Group is inviting all current and prospective suppliers of the following goods and services to submit their credentials for consideration and subsequent inclusion on its 2019 suppliers’ database. ZSE’s likely Required Services and Goods movers 1. Office Stationery 37. Suppliers of Risk Diagnosis Tools 2. Groceries & Cleaning Materials 38. Insurance & Risk Management 3. Office Furniture & Equipment Supply & Repairs 39. Outsourced Assessment Services (Pre & Post Loss 4. Shop Fitting & Office Partitioning Claims assessments) and shakers 5. Exhibition Stand Designs 40. Valuation & Survey Services (Motor & Non-motor) 6. Sanitary Disposal & Services 41. Recruitment Services Paul Nyakazeya 7. Cleaning Services 42. Electronics Online Editor 8. Locksmith Services 43. Software Development & Licencing 9. Pest Control And Fumigation Services 44. Supplies of Data recovery and management LOCAL equities advisory fi rm says investors 10. Protective Clothing, Footwear & Corporate Wear 45. Garden landscaping and Florist services should put their money in Axia, African Sun, Art 11. Printing & Designing 46. Car Rental Services ACorporation, Econet and Cafca to get a healthy 12. Computer Networking, Hardware & return-on-investment in the fi rst quarter of this year. Axia has three main business interests namely 50,01 Consumables Interested suppliers should submit the following for percent in Distribution Group Africa their highest reve- 13. Hardware, Electrical Accessories & Engineering consideration: nue earner, 66,67 percent in TV Sales and Home and 26 Services percent of Transerv, a vehicle sundries, spares and parts 14. Telecommunication Installation & Repairs 1. An Introductory Letter company. 15. Motor Vehicles Supplies, Spares & Accessories 2. Company Profile According to Old Mutual Securities (Omsec), Axia 16. Motor Vehicle Servicing, Repairs & Panel 3. Certified VAT Registration Certificate has been consistently growing despite several con- Beaters 4. Certified CR14 straints being experienced in the economy. 5. “We expect the company to grow more if the eco- 17. Motor Bikes Supply, Spares & Accessories Certified CR6 nomic environment improves for the better. The com- 18. Towing Services 6. Current Tax Clearance Certificate (ITF263) pany continues to exhibited strong earnings growth po- 19. Fuel & Lubricants 7. Payment Terms tential despite the current economic hardships. We do 20. Logistics, Shipping & Clearing Services 8. Certified Certificate of Incorporation however maintain a cautiously optimistic view for the 21. Travel Agency Services 9. At least three traceable references outlook,” the research fi rm said. 22. Hotel, Accommodation, Conferencing & “Axia is neutral on both the relative strength index Catering The submissions should be sealed, clearly stating the and moving average convergence and divergence scale. category being applied for. We advise taking advantage of the current stability in the 23. Building Maintenance, Carpentry, Plumbing, share price and invest for long term gains,” they said. Painting Services The other recommended counter, African Sun owns 24. Security Services – Biometric, CCTV, Guards, CIT NB: By submitting the above documents, it does not major hotels in tourist hotspots in Zimbabwe, which 25. Borehole Drilling & Maintenance automatically mean you will be added to our Suppliers is Victoria Falls, the Nyanga Mountaineous region, 26. Welding & Steel Fabrications Database. There will be a review and an evaluation Hwange National Park and City Hotels in Harare, Bu- 27. Air Conditioner Supplies & Maintenance process that must take place first. lawayo and Mutare. 28. Firefighting Equipment & Servicing “The company’s profi tability has improved on the Supply, Service & Maintenance Of Generators Interested Companies should send their documents to: back of debt and organisational restructuring with an in- 29. ternational hotel management company taking charge of 30. PA Systems , Videography & Photography its major hotels,” said Omsec. 31. Advertising, Branding & Promotion Materials The Procurement Committee Tourist arrival growth and the ability of the company (T Shirts, Banners, Sign Posts) Zimnat Group to meet its expenditure requirements in foreign currency 32. Branded Promotional Materials & Corporate Zimnat House, has made the hotelier quite competitive. Gifts Corner Third Street & Nelson Mandela Avenue, “We recommend taking advantage of the current 33. Outsourced Courier & Messenger Services Harare, weakness in the share price and accumulate more for Drugs & Medical Supplies Zimbabwe progressive long term gains,” the advisory fi rm added. 34. Commenting Art Corporation, Omsec said govern- 35. Advertising & Creative Services, Including Digital ment’s directive to protect locally manufactured goods Advertising & Video Production (Ad Agencies) Closing Date is 22 February 2019 against imports has worked well as this has underpinned 36. Media Booking Services the company’s battery sales division. Econet has remained a perennial top pick, recently the company restructured by hiving off its fi nancial tech- nology company from its cellular network operations business. Omsec said developments in the economy will see increased demand for the services that Econet pro- vides with a more concentrated management effort on the reconstructed company. newsdesk@fi ngaz.co.zw Page 18 February 14-20 2019 The Financial Gazette Motoring Mercedes-Benz A200 AMG Line Lots to like if you don’t

TOP GEAR with Richard Wiley mind the badge deception

TUTTGART’S so-called entry level model, door cappings are wrought from slushy plastics the A-Class, has rarely been too far away from while the widespread use of harder materials in the Scontroversy. Few car buffs will be unaware lower areas is well-disguised and does not detract of the infamous “Elk test” which saw the original signifi cantly from what is a sector-leading cabin in model roll when conducting an emergency swerve. design terms if not in outright quality terms. M-B’s chassis boffi ns had to wave the magic wand It’s the dash design that holds sway in terms in the region of the rear axle to keep future models of attracting attention. A boldly-executed lower on their wheels rather than their roofs. roll is topped with shiny, turbine-like air vents that The rather lofty stance of that original model nonetheless pale into insignifi cance alongside the which sat on a “sandwich” platform, made it a very free-standing, iPad-like infotainment display which practical car, especially in the larger second-gener- in this case featured the optional 10.25-inch display ation iteration. In fact, my wife was an owner of the as well as a 10.25-inch digital instrument cluster face-lifted version of the latter in A170 form and complete with confi gurable graphics and superb thoroughly enjoyed the high driving position and clarity. (Note that a smaller display with reduced amazingly spacious cabin and fl exible load area. functionality is standard). Sure, the handling and driving characteristics Dubbed MBUX, this infotainment interface were hardly inspirational but the weaknesses only for now is the class leader in terms of multiple- showed up when the car was pushed to levels she functionality and clarity. Sure, it takes time to never approached. And what’s more, the 170 badge work out everything on offer, but it isn’t just the accurately refl ected that the car was powered by a Sporty look of A200 AMG Line is readily evident console-mounted touch pad or the touch screens 1.7 litre petrol engine. themselves that activate the systems. Voice control I mention this because the very latest, current is now also present, and this service is called up by generation A200 (effectively the fourth generation) stating: “Hey Mercedes.” I recently enjoyed for a week, is not powered by The voice command is not 100% responsive a 2.0 litre engine at all. What sits under the rather as the dulcet tones asking what is required oc- long bonnet, doubtless there to garner more crash- casionally need prompting, or more rarely, the test stars than to look sporty, is a turbo-charged 1.3 system responds without prompting! It is simply litre mill - M-B insists on calling it a 1.4 litre - that mind-blowing, and a source of great entertainment owes rather a lot to a French company called Re- for passengers, to request verbally for the sun roof nault! to be opened and then to hear the spoken answer If M-B’s marketing people were honest with “sunroof blind is being opened” which is exactly themselves, the badge on the back should proclaim what happens. Ask for the temperature and “Hey A130. My neighbour came over to express posi- Mercedes” provides the answer! Ask to be taken to tive views about the sleek, low-slung steed on my a named destination and it’s all done for you cour- driveway but was taken aback to learn about the tesy of a (optional) sat nav system blessed with su- relatively puny power unit lurking under that rakish perb graphics. bonnet. It is not possible within the confi nes of this re- Let me be clear about one thing though – the port to provide a full run-down on everything this engine itself is a most willing unit and performs amazing system can do, so I suggest a visit to a remarkably well for its displacement. It shrugs off Merc website if the subject fascinates you, but typical turbo lag at low revs with 90% success and I cannot leave the matter without mentioning the when pressed, it performs in a very sprightly man- availability of endless ambient lighting options for ner, even if it can sound a tad strident at high revs That ultra-mod dashboard is the party-piece of the new A-Class the interior. and exhibits mild vibrations (detectable through the Aside from “hidden” LED strip lighting all pedals) in mid-range. The power is put down through the front wheels pleasing even if the bland white hue of the test unit around the cabin, even the periphery of the tur- There is a caveat though that is an obvious and via a 7G-DCT (dual clutch) transmission that for was hardly eye-catching. What did catch my eye bine-like air vents changes colour according to the unavoidable consequence of employing a small the most part works seamlessly and without ir- was the excellent gloss of that white paint which cabin temperature selected. displacement engine – it simply does not have the ritating slip but let it be known that the speed of was thankfully devoid of too much orange peel. Naturally, cruise control, fancy headlights, sev- effortless shove associated with a turbo motor dis- shifts does not quite match VW’s DSG box as each Note that the optional AMG Line treatment in- en air bags, electric windows, cruise control and so placing 2.0 litres. To enjoy that, you’ll have to shell shift is accompanied by the very slightest of delays cludes tweaked bumper styling, fancy alloys and a on are all on-board BUT, and the use of capital let- out more shekels and acquire yourself an A250 which I suspect is engineered-in to ensure smooth- lowered ride height which collectively enhance the ters here is deliberate, be fully aware of what makes which, guess what, is actually powered by a 2.0 ness. visual impressions. up standard equipment and what is optional accord- litre mill! As you’d expect, braking is powerful and obvi- Panel gaps are close and consistent, the chromed ing to the model you are interested in. Had a 130 badge been stuck to the rump, I ously endowed with great reserves, but the pedal is window-surround embellishers all lined up and Some 40% of the total cost of the test unit was would not be going on like an old tart on this sub- too grabby initially owing to excessive early boost, the doors shut with a nice precision which frankly clicked up on options which takes the A200 into ject but remember you are being asked to meet a a characteristic that took a couple of days to get fa- hasn’t been an ever-present feature on more recent unfamiliar territory for a hatch with a mere 1.3 litre purchase price already higher than applied to most miliar with. Mercs. However, some of the fi nishing detail in the engine under the swoopy bonnet. Not only that, it larger-engined competitors despite the fact that If the third generation A-Class had a problem under-bonnet area struck me as being untidy and takes the Merc into competitive territory occupied M-B has clearly saved itself a lot of money by using in terms of driving dynamics, it lay with the ride. the tailgate hinges seemed somewhat lightweight, by some mighty serious equipment, some of it someone else’s motive power. Lower-powered versions of the latest iteration still but saving weight is a priority with modern cars, boasting double the power output! And to be absolutely frank, as an old school op- employ MacPherson struts up front with a torsion isn’t it? Intuition tells me that the more powerful A250 erator who has owned his fair share of Mercs over beam axle at the rear, but the test unit, thanks to It’s inside, though, that the biggest changes are with fewer options on board, but with the full the years, I’m not sure that the thought of French- the fi tment of optional Adaptive Damping, featured evident. A wholesale re-design and use of high- MBUX system specifi ed, might just be the sweet sourced power, however good, doesn’t dilute the a multi-link arrangement that is standard on more tech interfaces see to that. Please don’t get the idea spot in the current range. And consider too that aura of the three-pointed star and its reputation for powerful models. A lengthened wheelbase and though that the new model offers lots of interior the sporty A35 AMG isn’t too far away. Howev- over-engineering. wider track are also used as part of the fi nessed space. While it’s marginally up on the third gen er, don’t expect this to be equipped with a 3.5 litre Now to specifi cs; that 1332cc turbo four pro- platform. model, it remains a four-seater with a competitive V6 as the nomenclature suggests. It too relies on a duces 120kW at 5 500 rpm and most importantly, In Comfort mode, the ride on 225/45R18 rub- 370l luggage volume but the folding split rear seat, more heavily charged 2.0 four-cylinder mill. a 250Nm torque peak that holds all the way from ber is defi nitely more supple and deals with surface surprisingly without centre armrest, does allow ver- It should be readily apparent that the new 1 620 to 4 000 rpm. It’s that low rev twist that en- irregularities with aplomb. Sport, however, is best satility. A-Class has taken a big step forward in dynamic sures decent responsiveness and also ensures that used on smooth surfaces as it is notably knobbly The cabin offers a cocoon-like environment terms as well as in design execution but be aware the car’s mass never feels overwhelming but don’t on poorer roads. Nonetheless, it delivers much-im- thanks in part to the relatively low roof line and low that unlike the original A-Class, this fourth-gener- expect to win too many traffi c light GPs despite the proved body control and sharper responses as com- seating position all of which conspires against out- ation version does put style ahead of practicality. AMG association. pensation, while the power steering is on the light ward visibility which is further impaired by tomb- Its interior execution in particular, even allowing Top speed is listed as 225 km/h and the 0-100 side but offers pleasing linear responses from lock stone front seats that are, by defi nition, topped-off for the presence of a fair bit of scratchy plastic in dash evaporates in 8 seconds but that puts the Merc to lock. with fi xed headrests. The seats are multi-adjustable, the lower regions, sets new standards and there’s no about 1.5 seconds behind some price competitive In terms of refi nement, the new A represents an along with the steering column, and are trimmed in doubt that M-B has paid more attention to overall hatchbacks, not that any of us spend much time improvement with road din being acceptably well a mix of suede-like fabric and Artico “man-made” assembly quality. wringing the max out of cars. Combined fuel con- controlled on all surfaces other than the coarse tar. leather. Be aware though of that pricing conundrum sumption reveals a parsimonious factory fi gure of Thanks in part to the fi tment of dual door seals all- The front pews are supportive and comfy and mentioned at length earlier in this article. For the 5.6l/100km. round, wind noise too is kept at bay and as already easily accessed while those in the back will fi nd ac- same money, you could be in C-Class territory and The best I achieved was a pleasing 6.4l/100km mentioned, mechanical commotion is not an issue ceptable but far-from-generous room for two adults never rule out the lurking threat of a new Golf 8 on the open road while all-urban use revealed unless that little engine has its neck wrung. who will have struggled to gain entry through nar- that’s due out in 2019. Truth be known, I’m sug- 9.8l/100km. My overall fi gure over some 400 km Just for a change, I’ve left the best bits to last. row lower door openings. gesting that the current Golf still offers a more com- was 8.1l/100km. Note though that this Merc is While it’s true to say that beauty is in the eye of the As for ambience, the new model marks a sig- posed drive and greater practicality but suddenly, equipped with a mean 43l fuel tank which accounts beholder, there’s no doubting that most beholders nifi cant improvement and not just as a result of the it’s the Golf 7 that’s looking a tad dated in the com- for why I had to top-up much sooner than expected. will fi nd the shape of the new A-Class to be most fresh design cues. The upper dash surfaces and pany of the new A-Class. The Financial Gazette February 14-20 2019 | Page 19 Companies & Markets Horticulture exports on the rise

Tabitha Mutenga (ZimStat) data shows that at its peak in and these include Bambara beans, shelled Features Editor 1998/99, the country exported about 18 macadamia nuts, seed potatoes, kale and 400 tonnes of fl owers, 14 200 tonnes of cowpeas. IMTRADE says the country’s horti- fresh produce and 45 000 tonnes of fruit, Over the years, Zimbabwe has built a culture is on the mend after it raked contributing 4,5 percent to the country’s good reputation in European markets and Zin $112 million in the 10 months to Gross Domestic Product (GDP), and sec- is currently supplying chain stores such as December 2018. ond after tobacco in the agricultural sector. TESCO, Marks & Spencer, Albert Heijn The trade promotion body has been Although production dipped after this and Sainsbury’s, among others. working on various initiatives to diversify peak, recently, Zimbabwe’s horticulture Traditional horticulture exports include the country’s horticulture markets and en- exports have been improving. In 2011 ex- citrus, avocadoes, macadamia nuts, sugar hance the sector’s export capacity. ports earned $54 million, but according to snap and mange tout peas. “Though contributing only 2,8 percent ZimStat, have since gone up by 75 percent According to Trade Map, the world im- to total exports in 2018, the horticulture to $95,5 million in 2017. ports an average of $250 billion worth of sector is impressively increasing year-on- “We are positive that this trend can ac- horticultural produce annually and experts year. From December 2017 to December celerate and that as a country we can sur- have repeatedly urged Zimbabwe to tap 2018, an impressive 116 percent increase pass our previous records in the short to into the low hanging fruit, which has the was recorded. This was partly attributed to medium term,” said ZimTrade. potential to bring high returns in a short pe- the diversifying of export produce,” Zim- Statistics from the trade body show that riod of time. Trade said. export earnings from horticulture reached The jump in horticulture exports was The horticulture sector has the potential $112, 2 million in 2018, up from $52 mil- driven in part by the supply of produce that to surpass the $143 million earned in 1999. lion in 2017. Zimbabwe was not previously exporting. At its peak in 1998/99, Zimbabwe exported about 18 400 tonnes Zimbabwe National Statistics Agency New products are also being exported newsdesk@fi ngaz.co.zw of fl owers. Zim urged to ramp up ethanol production

Tabitha Mutenga production of sugar itself. With sugar- plots. ares. “Currently the sugar industry increase in the quantity of sugar Features Editor cane being very good at carbon seques- Green Fuels, another fi rm which is generating $500 000 per annum cane delivered to the mills and bet- tration, Zimbabwe can get good carbon recently came on board, has about and can be escalated to $750 000 ter quality cane, resulting in good IMBABWE has the capacity to credits on the international markets,” he 9 000 hectares under sugarcane for with the construction of the planned factory recoveries generate foreign currency by said the sole production of ethanol. Runde-Tende dam in the Mwenezi “Zimbabwe is placed strategi- Zramping up sugar production and Sugar production in Zimbabwe is Musikavanhu noted that with area,” Musikavanhu said. cally to export ethanol to South Af- exporting ethanol to regional countries, currently restricted to the Chiredzi area, the Tugwi Mukosi Dam coming on The sugar industry anticipates rica. We have the potential to export Chiredzi West legislator Farai Musika- with 80 percent of the crop produced by stream, 25 000 to 30 000 hectares production to increase by 17 per- by- products from sugar cane,” he vanhu has said. Triangle and Hippo Valley estates. How- of irrigated cane can be opened, up cent to 460 000 tonnes in 2019, up added. The Zanu PF legislator said with the ever, there is talk of opening up new ar- adding to the current 45 000 hect- from 393 000 tonnes, based on an newsdesk@fi ngaz.co.zw current dam capacity, the country has eas for sugar production in the Zambezi potential to produce about four million Valley. tonnes of cane, which can be increased “Here is an industry that is doing well by opening up more land in Mwenezi and there is potential to add immediate and the Zambezi Valley. value to Zimbabwe. At full capacity we “The sugar industry, notwithstand- can produce 600 000 to 640 000 tonnes ing the challenges of the land reform of sugar and in addition, we are doing programme, has consistently managed about 40 million litres of ethanol and we to operate at 70 percent and above of do contribute to the national grid,” he installed capacity and within that value said. chain. Zimbabwe last produced 600 000 “There is serious scope for Zimba- tonnes of sugar in 1999, with the low bwe to exploit the energy from ethanol, yields attributed to droughts, leading to import substitution, clean energy from water rationing, high production cost co-generation and there is the overall and the abandoning of some sugarcane

The Financial Gazette @FingazLive

Subscribe Now Page 20 | February 14-20 2019 The Financial Gazette Column How safe is your info with taxman? AXPAYERS are compelled by tax law affairs of taxpayers unless per- any information deemed to be ities (including courts and administrative to provide significant amounts of in- mitted to do so by a competent necessary for proper investi- bodies) concerned with the assessment, col- T formation to revenue authorities about court. The commissioner can gation, including the appoint- lection and enforcement of the taxes covered their income, expenditures and business also disclose information if it ment of banks and third parties by the agreement (including the prosecution affairs. The information may be provided is required by the minister for as agents for payment of taxes or the determination of appeals) and the in- through tax returns, assessments or other cor- statistical purposes. He is not owed by a taxpayer to ZIMRA. formation may be used only for such purpos- respondents or documents that the tax author- bound by secrecy provisions This authority invalidates any es. Information may not be disclosed to any ity may request from time to time. in relation to a taxpayer or any secrecy provisions that may other person or third jurisdiction without the On the other hand, the law gives the Com- other person who is convict- be held between a bank and its express written consent of the competent au- missioner-General of the Zimbabwe Reve- ed of a tax offence in respect client or between third parties. thority of the requested party. nue Authority (ZIMRA) unlimited powers of which all appeal or review Even international agreements The integrity of information request is of- to demand full information in respect of any proceedings relating to the of- Tax Matters such as OECD Model Conven- ten compromised if ZIMRA loses information person's liability or any matter relating to the fence have, within the period with tion stipulate that bank secrecy that the taxpayers has provided them. This collection of such tax. The information which allowed, been completed or Marvellous Tapera cannot form the basis for de- places doubt on the safe custody of the infor- he can access ranges from any deeds, plans, not instituted. Officers who clining to provide information. mation provided. However, taxpayers should instruments, books, records, accounts, trade work under the authority of the Zimbabwe’s tax treaties also know that they cannot do anything about de- lists, stock lists or documents he may con- commissioner are required to take a secre- support disclosure of information by compe- nying ZIMRA access to information because sider necessary for the purposes of tax ad- cy oath before the magistrate, justice of the tent authorities under the Exchange of Infor- this could result in the commissioner making ministration. peace or commissioner of oaths to guarantee mation Article where disclosure relates to estimated assessments. The only remedy is Of concern is how safe the information safety of taxpayer’s affairs prior to exercis- taxes covered by the treaty and is necessary to ensure the information requested has been submitted to the revenue authority is and ing their functions. to administer or enforce domestic tax laws of recorded and signed for by ZIMRA officials whether such information will not be dis- If the officer then discloses information the requesting country. The Exchange of In- before it is given out. closed to third parties without the consent of to other people and not the taxpayer, during formation Article that forms a part of all tax Nevertheless, the ZIMRA officers take the the taxpayer. When taxpayers provide their the course of his duties after taking the oath, treaties to which Zimbabwe is a party, recog- secrecy oath before commencing their oper- information they expect it to be kept confi- or uses the information for personal gain he nises the importance of protecting taxpayer ations as liaison officers. This oath guides dential. Also, compliance with tax laws is shall be guilty of an offence. information. their conduct to ensure that the taxpayer’s more likely if taxpayers know that the infor- Although taxpayers may be guaranteed It ensures that information communicated privacy is not violated. If this provision has mation they provide can only be used for lim- confidentiality with regards to information under the treaty’s provisions is treated as a been breached, you can sue for breach of ited purposes. In order to maintain taxpayer in the custody of ZIMRA, the same cannot secret under domestic laws in the receiving confidentiality unless the information was privacy and confidence, there are secrecy be expected with regard to information held state and sanctions are governed by the laws revealed in special circumstances whereby provisions that impose strict obligations on by other government officers or third parties of that state. Current disclosures of protect- the officers may be required by a competent tax officers and others who receive tax in- when it comes to tax matters. The taxpayer’s ed information to international jurisdictions court to reveal certain information. formation. right to privacy could also be affected by the would be maintained under the new frame- Standardisation of the tax secrecy and Powers of the commissioner provisions of the Interception of Communi- work. However, any information received disclosure provisions would require one Any person who is employed to adminis- cations Act (Chapter 11:20). According to should be treated as confidential. maximum penalty (being a monetary fine or ter taxes, authorised to receive payment of this Act, the commissioner-general is an au- Most international taxation model conven- an imprisonment term) for all unauthorised any revenues or to examine records under the thorised person qualified to apply to the min- tions provide that the information received disclosures, except where a departure is war- control or in the custody of the commission- ister for a warrant to intercept any relevant may be disclosed only to persons or author- ranted. Current tax secrecy provisions allow er-general is empowered to maintain secrets communication for the purposes of adminis- disclosure in the “course of duties of an of- and aid in keeping secret all information tration of fiscal matters. It is empowered to ficer”. coming to their knowledge in the exercise of intercept mail, emails, telephones, etc. on ap- Offi cers who work under the authori- Meanwhile the Matrix Tax School will be their functions. The person shall not, except plication to the minister. ty of the commissioner are required to hosting its 2019 Victoria Falls Tax Confer- in the exercise of his functions or unless he He should state in the application cer- “take a secrecy oath before the magis- ence from May 22 to 25, 2019. Also join us is required to do so by order of a competent tain information, for instance the period for trate, justice of the peace or commissioner for our 2019 Tax Update Seminar on Febru- court, communicate the information so ob- which the interception is to be effected, the of oaths to guarantee safety of taxpayer’s ary 13, 2019 at the Holiday Inn Harare for an tained to any person who is not the taxpay- target person for the interception, among affairs prior to exercising their functions. in-depth understanding of 2019 tax updates. er or the representative of the taxpayer. This others. Nevertheless, the minister should be If the offi cer then discloses information to For details visit our website http://matrixtax- entails that no person other than the taxpayer satisfied that there are reasonable grounds other people and not the taxpayer, during school.co.zw/tax/seminars/. or his representative or a person to whom in- that the gathering of information concerning the course of his duties after taking the oath,  Tapera is the founder of Tax Matrix formation relates is entitled to have access to an actual threat to any compelling national or uses the information for personal gain he (Pvt) Ltd and CEO of Matrix Tax School any record under the control or in the custody economic interest is necessary. shall be guilty of an offence.” (Pvt) Limited. He writes in his personal of the commissioner-general which contains The commissioner has power to demand capacity. ‘Legal Matters’ is back to fill void

ETWEEN 2004 and 2012, the Legal Since politics affects our shall be dealing with. It is formal courts and administrative tribunals. Matters column attracted a lot of in- everyday lives and law has no longer a case of “free for Questions shall be asked and a serious in- B terest as it became a forum of intense an intractable nexus with all” as the branding around terrogation undertaken of why five years discussion in addition to it being an inform- politics, it became very dif- this publication now requires down the line, our 2013 Constitution is er on citizen’s rights. The writer suspended ficult to avoid discussing purely corporate discussions. still to be implemented in full. This being writing it due to literary fatigue and other political issues that had a This may disappoint readers more important, particularly because a na- pressures that hindered him from delivering bearing on law and hence, who may expect a wider dis- tional constitution is the centre that holds the entertaining, informing and educating human rights, constitutional cussion of matters of law. Ac- the nation together. Without it being fully column that readers craved. law and parliamentary prac- cordingly, discussions shall functional in addition to it being honoured Following the suspension, a noticeable tice also became part and centre around company law by State actors, the rule of law becomes a void appeared, particularly when other parcel of discussions in this matters, commercial law, con- fallacy and the law of the jungle becomes weekly publications attempted to imitate column. stitutionalism and the rule of common place, thereby undermining prop- the column. The void must be filled. There While Legal Matters at- law, law of international trade erty rights, and other human rights in gen- has been a serious outcry from readers of tracted a lot of interest from Legal Matters and other related discussions. eral. this publication imploring the writer to a cross-section of readers, with Readers are also expect- The Constitution shall be dissected and continue with this column. Their cries have be it politicians, corporate VOTE MUZA ed to know how our courts analysed through its various sections to been heard and, like the good listener that leaders, lawyers, judicial operate. Some Zimbabweans bring about better understanding of this the writer is, a new journey begins this officers, academ- hardly know the ju- fundamental document. week. Only God knows how long it shall ics and students, at While Legal Matters attracted a lot of risdictional limits of Readers deserve a clearer understanding last but the writer’s wish is for Legal Mat- times it also invit- interest from a cross-section of read- the Magistrates Court. of the three arms of the State ― Parlia- ters to now remain part and parcel of this ed criticism from “ers, be it politicians, corporate leaders, Some have no idea ment, the Judiciary and the Executive. The publication for as long as possible. those who found lawyers, judicial offi cers, academics and about the existence roles of these three arms of State must be In its previous life, Legal Matters was some of its sub- students, at times it also invited criticism of the Administrative explained and the hazard of assumption of not selective in terms of topics for discus- jects unpalatable. from those who found some of its subjects Court and its purpose. more power by one arm as against the other sion and each and every subject of law that A case in point unpalatable. A case in point is a contribution The High Court and exposed. The lawmaking process remains was deemed relevant and of interest to read- is a contribution the writer made in 2004 giving a perspective the Supreme Court taboo to many and yet it is a person’s right ers was dissected. the writer made in and some of its proce- to know how our legal instruments are man- about gay rights. The fl urry of insults and Readers were educated about the law of 2004 giving a per- dures are highly com- ufactured in Parliament up to the stage they maintenance, custody and access. Bail ap- spective about gay criticism that came from all corners of the plex but these may become effective law. plications and criminal prosecutions were rights. The flurry globe when some gay lobbyists accused the need to be simplified Readers should feel free to interact with also discussed in great detail. Corporate of insults and crit- writer of being gender insensitive was a ma- for the better under- the writer through his email muzalaw@ law, including corporate governance, and icism that came jor highlight.” standing of the public. gmail.com or through the editor. Generating various other arms of business law like from all corners of This becomes more a legal column and sustaining it is no mean contract, the law of sale, partnerships and the globe when some gay lobbyists accused important because of the need for easy ac- task since it requires a lot of research. The trusts were also discussed in great detail. the writer of being gender insensitive was a cess to justice that our 2013 Constitution writer shall do his best not to disappoint. The law of inheritance was not spared since major highlight. soundly caters for. Welcome to the new legal matters column! it is part and parcel of our everyday lives be This time around, the thrust has changed Readers may also need to know and be  Muza, a Harare-based legal practi- it in the corporate world or for individuals. in terms of the focus of what the column educated about the distinction between our tioner, writes in his personal capacity The Financial Gazette February 14-20 2019 | Page 21 Column What board members need to know about selecting company executives

ESPITE mounting scientific evidence that some challenge the CEO professionally. If you are the predictive powers of each of the common 23percent and age explains 0 percent of the employee selection methods have a very weak lucky they may be a formidable team but it's selection criteria used by organisations; gen- variation in performance.(source: Validity Dor have no predictive power, some companies very rare. eral mental ability (intelligence/cognitive and utility of section methods in personnel still continue to use them. No wonder why such com- 5. Here are the juicy facts about various ability) explains 44 percent integrity tests psychology: practical and theoretical impli- panies continue to struggle. When you use selection selection methods. explain 21 percent, structured interviews cations of 100 years of research findings- methods with high predictive power you are likely to a). When selecting employees with no (these are standardised interviews) explain Schmidt et al 2016) outperform your competitors and experience high pro- prior experience e.g. trainees and other en- 34 percent, personality tests- conscientious- Just check how educational level (mea- ductivity. try-level jobs, the top predictor of job perfor- ness explains 5 percent, reference checks ex- sured by the number of years of education), I have noted that board members either due to igno- mance is the general mental ability (i.e. intel- plain 7 percent, biographical data explains 12 experience and age (although illegal to use rance or lack of proper advice continue to use unreli- ligence or general cognitive ability). This can percent, job experience 6 percent, situational age as a criterion) have such low predictive able and basically useless selection methods. I have not be assessed through properly validated psy- judgment tests explain 7 percent, assessment power. Why then are organisations using seen anyone succeeding after going against evidence chometric tests administered by registered centres explain13 percent, years of education these methods against ample scientific evi- generated over 100 years in the field of occupational psychologists. If you add other measures explain 1 percent, ability-based emotional dence indicating otherwise? psychology. If you are struggling as a business, be- such as integrity, personality tests (conscien- intelligence explains 5 percent, personali- l Nguwi is an occupational psycholo- fore you blame the environment and others for your tiousness), structured interviews the predic- ty-based emotional intelligence explain 3 gist and managing consultant with Indus- misfortunes check tive power goes up significantly. percent, 16 percent, work sample tests ex- trial Psychology Consultants. He writes in how you bring b). Holding other things constant here are plain 11 percent, job knowledge test explain his personal capacity. new employees into your organi- sation. If there is no science in how the employees are selected you will never win. Any win you may have or have had could HR Perspective be down to pure SIRDC with luck. Memory Nguwi I have ob- Scientific and Industrial Research and Development Centre served that a num- ber of boards struggle to get the right executives for a number of reasons and I will outline some of them here. I will offer solutions to some of the challenges Professor Robson Mafoti Appointed based on what works in practice. It is important that a Professor Robson Mafoti Appointed select team of board members be involved in the selec- tion of senior executives. This should not be limited to toto thethe PresidentialPresidential AdvisoryAdvisory CouncilCouncil the HR Committee members alone. For different roles involve different teams from the board. Here are the top seven problems and suggested remedies. 1. Poorly structured selection process ― The first challenge in the recruitment and selection of execu- he SIRDC Board Chairman, Mr Misheck Kachere, Board, tives and other employees is that the process is often Management and Staff would like to congratulate the SIRDC Chief done in reverse. You normally find that advertisements T are placed in newspapers or candidates are sourced Executive Officer and the Pan-African Minerals University of Science and from employment agencies. Straight after this, the Technology Interim Vice Chancellor, Professor Robson Manyuwa Mafoti, candidates are shortlisted for interviews. The correct for being appointed to the Presidential Advisory Council (PAC) by His process is that once candidates have been selected on the basis of the initial recruitment criteria, notably Excellency, the President of the Republic of Zimbabwe, Cde Emmerson qualification and experience, you need to assess the Dambudzo Mnangagwa. The 26 members of PAC have been carefully candidates through psychometric tests and assessment centres first before going for the interviews. selected based on their experience, expertise and leadership qualities, In practice, most companies start with interviews among other attributes. The Council will advise and assist His Excellency in and then shortlist a few people for psychometric tests. formulating key economic policies and strategies that address Zimbabwe's The problem with this process is that the interview method as a selection process is unreliable, especially economic agenda leading to Zimbabwe attaining middle-income status by if the interview is unstructured. The results are that you the year 2030. end up with a candidate who will fail to perform to the required standard. Professor Mafoti is a renowned academic and industrial scientist with 2. Interviews can be faked. I am surprised at the lev- el of trust board members place on the interview alone several international patents to his name. He has global work experience as a selection method. Considering that the interview covering research and development, patenting, intellectual property method is unreliable, why are board members so ex- cited about this selection method. The answer could be licensing, manufacturing and commercialisation of research outcomes. that with the interview it gives the panel some form Professor Mafoti has had a distinguished career working in USA and of control. In most cases you will find that those who German companies where he held various research and leadership Professor Robson Mafoti are presentable and speak well can come up tops in in- terviews but if they lack the cognitive capacity for the positions. His illustrious career overseas led to several interventions in the following industries: automotive, paints and level of job they are targeted for they will fail. coatings, fenestration, aerospace, adhesives and sealants, decorative surfaces for household applications, and detergents. 3. The illusion of the portability of talent ― There is a general illusion that talent and performance are trans- Locally, he has overseen the transformation of SIRDC to an organization that places great emphasis on relevant scientific ferable from one organisation to the other. At a higher research and the application of research outcomes for the benefit of industry and the economy as a whole. He has level, it's even more risky to assume that because an spearheaded the commercialisation programme at SIRDC leading to the formation of viable strategic business ventures that individual succeeded in one organisation they will car- ry that success to your organisation. As a result of this are backed by technology. erroneous assumption, good candidates with the right cognitive ability level and critical thinking skills are Professor Mafoti holds a B Sc degree in Chemistry and Biology, an M Sc degree in Analytical Chemistry as well as M Sc and rejected on the basis that they do not have the experi- Ph D degrees in Organic Chemistry. Professor Mafoti has published extensively in refereed journals and is a member of ence in a specific industry. At a higher level, your technical skills are less im- various professional societies including American Chemical Society, PhiLambda Epsilon Chemical Honour Society and the portant. What matters most at this level is the ability of Polymeric Materials, Science and Engineering Society. He is or has been a member of the Board of several organisations the candidate to mobilise resources and employees to rally around a compelling vision for the organisation. including the Industrial Development Corporation, Zimbabwe Council for Higher Education and Chinhoyi University of Highly technical people tend to lack the people skills Technologywhere he was Chairman of Council. needed to lead at a higher level. I have also noted that engineering companies tend to prefer engineers to be SIRDC is confident that Professor Mafoti's broad local and international experience puts him in good stead to contribute to CEOs, if not they would rather get an accountant. It's a big mistake to go this route. Open the top post to all the Presidential Advisory Council that is tasked with formulation of economic policies and strategies to advance His fields. What is required is their level of cognitive abil- Excellency the President's Zimbabwe is Open for Business mantra and the achievement of Vision 2030. ity and their people skills and not what they studied. 4. Do not involve executives in some of the selec- SIRDC is Zimbabwe's Technology Centre with expertise in scientific research leading tion ― If you allow your executives too much power to to product development, consultancy and training. select other executives, two things are likely to happen. If they are loyalty driven they are likely to bring peo- Tel: 0242-860320/2/3/4/5/6/7/8/9 E-mail: [email protected] ple they have worked with before, which always does not work. It breeds groupthink. The same individuals will not question when the CEO makes the wrong de- cisions. You need a team with diverse views, who can Page 22 | February 14-20 2019 The Financial Gazette Column Why public enterprises underperform

HEY come by many names such as public A similar pattern obtained will be enunciated in this custodians of the organisation’s strategy and ethical being. enterprises, parastatals, state-owned enter- in all neighbouring coun- opinion piece. Reasons range from political deployment of unqualified Tprises, quasi-government organisations and tries. I recall a Zambian Ownership: Invariably, cadres to inability of the entities to attract top notch can- so forth. Simply, they are organisations wholly friend mentioning that in the sole shareholder is the didates for remuneration or organisational culture reasons. owned by the government mainly to undertake the 1970s, his government government of the coun- Deployment often brings in its train the essence of the Pe- commercial business operations. The origin of formed a super holding try. This means a distant ter Principle where the deployee may “rise to their level of the concept dates back to the last century rooted company of parastatals shareholding enforced and incompetence”. (Laurence Peter & Raymond Hull). A star in the industrial revolution and the formation of which employed 25,000 administered by statute. politician does not necessarily become a star business leader public companies. staff. Apart from high cap- The designated shareholder and vice-versa. Governments of the day formed these organi- ital investment, other ratio- representative may have a Strategy and vision: Lack of relevant strategy or regular sations to deliver essential services which would nale for their establishment different perception of the re-alignment of it is the Achilles heel of many public enter- be too expensive for private investors to estab- included holding national Executives Only Corner policy mandate of the enti- prises. Public ownership forces a strategic thrust, which is lish like a railway system, airline and utilities assets by government to with ty from that of the principal more for the common good than business prudence. Linked such as telephone and postal system, water and ensure affordable access by Shepherd Shonhiwa shareholder. Such faceless to this is shortfall in risk management capacity. “The av- sanitation. The list grew phenomenally as soci- all members of society. The shareholding opens the erage company today is a complex enterprise engulfed by eties and economies developed. Closer to home, model worked well for many decades while the organisation to abuse by different players in the technological change and fierce global competition. You since the turn of the last century, we experienced entities were either profitable or self-sustaining shareholder arena who may lay conflicting claims have to assess exposure to risk on an ever changing land- the growth of the railways, airline, Cold Stor- at break-even point. However, it seems to have on the organisation. scape” (Arthur Levitt, former chairman of the US Securities age Commission, PTC, Grain Marketing Board, imploded in the last three decades causing the Leadership: Flowing from the above, public Exchange Commission) Dairy Marketing Board and dozens others. majority of public enterprises to be a drain on the enterprises are not always endowed with the top Accountability: Mechanisms do not exist to make the Their common feature was that they were national fiscus or to become dysfunctional. Why? talent of business leadership. This includes the leadership and decision makers accountable for their actions monopolies, promoted and protected by the state. There is a multitude of causes a few of which boards of directors, which are supposed to be the including incurring financial losses. Absence of effective means to query and assess their actions breeds impunity. Corporate discipline: This is the commitment by senior management of the public enterprise to adhere to behaviour that is universally recognised as correct and proper. In many instances absence of this is glaring. Transparency: This refers to the ease with which an outsider is able to make meaningful analysis of a company’s actions, economic fundamentals and financial aspects. This is a measure of how good management is at making infor- mation available to stakeholders. Public enterprises some- times restrict transparency to avoid public spotlight on their underperformance. Conflict of interest: When one combines lack of ac- countability, lack of corporate discipline and transparency a potent cocktail of conflicting interests emerges from the board level through executive leadership to lower manage- ment. This undermines organisational delivery on its public mandate. Public enterprises are fraught with the above shortfalls which inhibit their performance. Most of all they do not demonstrate to have organisational vision independent of their political purveyors. Paul Arden cautioned that “Your vision of where you are or what you want to be is the great- est asset you have. Without having a goal it’s difficult to score”. l Shonhiwa is a chartered director (SA) and has au- thored books on leadership. He writes in his personal capacity. Clicks workers to pocket R1,5bln in share scheme VER 7 800 of Clicks Group (Clicks) employees will share in a R1,5bn payment that has been creat- Oed through the group's employee share ownership scheme (ESOP). This is in addition to the R1,3bn already paid out under the scheme to beneficiaries in 2018. Vikesh Ramsunder, CEO of Clicks, said in a statement this is the final payment of the remaining 50 percent of shares in the scheme. “Participants have also received dividends totalling R39m over the course of the scheme, which is testimony to the consistent growth of the share price, the loyal sup- port from our customers and the hard work and dedication of everyone across the business.” The Clicks share price has appreciated by over 360 percent since the scheme's commencement in 2011, ac- cording to the statement. In June 2018, Clicks joined the Johannesburg Stock Exchange (JSE)'s top-40, and in November was rec- ognised by the Sunday Times Top 100 Companies Awards as one of the top three performing shares on the JSE over the past five years. The scheme has empowered over 5 800 current and 2 000 former employees to become shareholders in Clicks Group, with the majority of these beneficiaries owning shares for the very first time, he said. About 86 percent of the beneficiaries of the scheme are black employees and 65 percent of them are female. The employee share scheme was introduced in support of the group's transformation agenda, with the objectives to drive employee affiliation and retention of critical tal- ent and to enable employees to share in the growth and success of the business. Ramsunder said that 10 percent of the group's issued shares at the time were placed in the Employee Share Ownership Trust to be allocated to all full-time permanent employees. "Senior black employees, longer serving employees and pharmacists received a higher share allocation." In February 2018, R1,3bn was paid to 7 839 benefi- ciaries, representing the gain on the first 50 percent of the shares allocated under the ESOP. -Fin24. The Financial Gazette February 14-20 2019 | Page 23 Column Managing the human resources function as a business partner ODERN trends in human resource manage- to better understand how the journey on the road to being a activities carried out under the ment require that HR be run like a business. HR function is closely con- strategic partner. different departments of the or- In order for this to be achieved, there is need nected to the business goals What then does HR being a ganisation. This information is M of the organisation. This business partner mean? Being crucial for planning purposes. to get a clear picture of the core business of the organ- isation. What is being referred to here is not the busi- facilitates better planning a business partner means that For example, HR can strategise ness arrangement that exists between two commercial whereby the HR function HR personnel, its processes and recruitment exercises, identify entities. However, one similarity that can be drawn will be able to align its ac- practices are in smooth operation the right training to take care from the arrangement is the reference to customers. tivities, which will assist in with the other functions in the or- of existing or new skills needs, These customers include both external and internal achieving the overall goal of ganisation. come up with effective compen- customers. In this instance, HR internal customers are the organisation. In this way, HR needs to have an overall sation and benefits plans, and all the divisions and departments in the organisation. HR will enhance its image as view of the entire organisation formulate incentive schemes. l External customers would include other commercial a business. They are also there to being necessary and relevant to and how each of the different di- Nyausaru is a human re- or business entities having business dealings with the explain how every employee can the organisation's survival. When visions and departments fit into sources practitioner and a fel- organisation. become a partner in business. HR is invited to participate in top the whole picture. low of the Institute of People In this concept, the HR function is called upon to HR personnel also attend management decisions, then it HR people would have to Management of Zimbabwe. He provide quality service just as in the case of business these sessions in order for them will know that it has begun the get a clear understanding of the writes in his personal capacity. entities. HR is therefore expected to understand HR issues from the perspective of both the employer and employees. Until HR professionals realise this and take the nec- essary steps to understand the business that their or- ganisation is involved in, they may continue to have a “business as usual” approach. The name change to hu- man resource department may not have involved much actual change from being a personnel department. The HR department continues doing the day-to-day admin- Public Notice No. 3 of 2019 istrative activities performed by the personnel depart- ment. REQUEST FOR EXPRESSION OF INTEREST Nowadays, investors look for many things in an organisation. One of these is whether the organisation NON-CONSULTING SERVICES has sound HR policies, apart from its strong financial standing. This also includes determining how well the EOI-01/2019 organisation has embraced corporate governance prin- ciples, the effectiveness of the organisation’s leader- (RE-ADVERTISEMENT) ship and the rate of staff turnover. If these are lacking, investors will know that HR plays an insignificant role in the organisation. For the Supply, installation, configuration and implementation of a Tax Revenue Management System for the Zimbabwe Revenue Authority Investors may conclude that a weak HR department (ZIMRA) means inability to find and engage the talents needed to run the organisation within an increasingly competitive business environment. and protect civil society. ZIMRA relies heavily on ICT and automated processes to deliver on its mandate effectively. It is critical for the business to have How then do we go about making the HR depart- theZimbabwe right solution Revenue designed Authority according (ZIMRA) to isTax mandated Administration to collect best revenue, practices. facilitate trade and travel, advise government on fiscal and economic matters ment a business partner? The Domestic Taxes division is responsible for mobilizing, assessing and collection of domestic taxes revenue. The current system being used for There is need to engage financial experts from with- in the organisation. The reason for their engagement is crucial to the organization. collecting domestic taxes revenue is not meeting ZIMRA`s requirements. Therefore, the need for an efficient and effective tax management system is make them assist employees get a clear understanding As an important and strategic investment for revenue collection for the government of Zimbabwe, ZIMRA has secured appropriate funding with full of the business of the organisation. They will also act support from development partners toward the cost of procuring an effective Tax Revenue Management System. as your internal experts to assist you implement this ap- proach. These “internal experts” can demonstrate how each job contributes to the achievement of the overall administrationZIMRA now invites best eligible/qualified practices. solution providers/firms to indicate their interest in providing the Tax Revenue Management System. The main strategic goals of the organisation. Inobjective consideration of the project of the above-mentioned is to implement an project, efficient the and Solution reliable provider Revenue is expected Administration to: System that is compliant with internationally accepted tax It may also be prudent to engage external business consultants to help explain the connection between the 1. Propose to supply, install and configure a tax administration system that is compliant with internationally accepted best practices. organisation’s core business, departmental functions 2. Provide for integration of the system with other internal systems e.g. ERP system and to interface/integrate with other external and employees' jobs. The external business consultants stakeholders’ systems there to explain what it means to run an organisation as 3. Carry out a business process re-engineering exercise, to efficiently and effectively implement the supplied system. 4. Provide technical training on the configuration, system administration, system support, integration and system security. 5. User training on the functions of the supplied system.

assignments, experience in similar conditions, availability of appropriate skills among staff, etc.). Nigeria expects Interested firms must provide information showing that they are qualified to provide the system/services (documents, description of similar

Consultants may associate with other firms in the form of a joint venture or a consortium to enhance their qualifications. For establishing the short $3bn in diaspora list, the nationality of a firm is that of the country in which it is legally incorporated or constituted and in the case of joint venture, the nationalityEach of shortlisted/pre-qualifiedthe firm appointed to represent firm it. will be required to make a demonstration/presentation of its proposed solution. investments The shortlist shall comprise of a minimum of three and a maximum of six firms. However, ZIMRA reserves the right to change this number. EligibilityOnly firms criteria,shortlisted/pre-qualified establishment of under the short-list this process and will the be selection invited toprocedure bid under shall the International be in accordance Competitive with the Bidding Public process Procurement for the abovementioned and Disposal of IGERIA expects $3 billion in investment Publicnon-consulting Assets Act, services published and onwill 01 be January invited 2018,to bid whichon the is basis available of a complete on the Procurement Invitation To Regulatory Bid/ Request Authority for Proposals of Zimbabwe for the (PRAZ) assignment. website at http:// funding from citizens living mainly in the US www.praz.gov.zw Nto support the agriculture, power, mining and Late applications will not be considered and no liability will be accepted for loss or late delivery. ZIMRA will not be responsible for any costs or transportation sectors, a senior presidential adviser said. expenses incurred by firms in connection with preparation or delivery of the application. The government will support “a diaspora invest- Proposals which were submitted on the 13th of December 2018 are no longer valid and bidders are obliged to re-submit if still interested. ment fund,” Abike Dabiri-Erewa, President Muham- madu Buhari’s adviser on diaspora affairs, said in an must be submitted in English, enclosed in a sealed envelope, clearly marked “Expression of interest for Tax Revenue Management System for ZIMRA” interview in Abuja, the capital. “They’re planning a mustInterested be delivered firms may to the obtain below further address information by 15 March at the 2019 address at 10:00 below hours during (Zimbabwe office hours time 08:00 GMT+2hours hours to 17:00) hours. Proposals (original + 2 copies) $3 billion investment in Nigeria. The fund will be driven by Nigerians in America.” Nigeria is seeking investments to diversify its The Principal Procurement Manager economy away from oil, which currently accounts Procurement Management Unit for about two-thirds of government revenue and more Zimbabwe Revenue Authority than 90 percent of foreign income. A sharp drop in Reception, ZB Centre, 6th Floor crude prices in 2014 and foreign-currency shortages Harare, Zimbabwe that followed led Nigeria into its first economic con- traction in a quarter century in 2016. Telephone: +263 242 775 332 Ext. 317 The government’s focus is primarily on non-oil in- +263 242 773 040 vestments, with mining and agriculture among the top E-mail: [email protected] priorities, Dabiri said. She did not say when the fund would be set up. Buhari, who was voted into office in 2015, is seek- ing another four-year term in February a 16 presiden- tial election. -Bloomberg Page 24| February 14-20 2019 The Financial Gazette Column Why is it so hard to do business in Africa?

Okey Umeano mies such as South Africa (82nd), Egypt (128th) and Nigeria (145th) have a long way to go. AKING it easier to do business in Obvious questions arise. Why is it so diffi cult to do Africa is a powerful yet largely ig- business in Africa and why does the continent fi nd it so Mnored means of pulling swathes of hard to remove impediments to business? Many of the the continent out of poverty. World Bank’s ranking factors are in the control of gov- It’s a no-brainer ― the easier you make it ernments and can easily be fi xed. If fi xing these factors for people to do business in your country, the is a sure way to attract business, then Africa should gear more they will come to do that and the richer up and do that. your nation will become. It seems that many It appears that Africa just cannot get it done, or is countries on the continent still don’t get that, not yet in the mood to. Some countries, such as Nigeria, though, or show no sign that they do. have made some effort to improve their ranking. The African countries are placed dismally on Nigerian government set up a team to oversee efforts to the World Bank’s 2018 ease of doing business improve its ranking and passed a handful of executive ranking, with many sitting at the lower end of orders to grab the low-hanging fruit. the table. The resulting rise from 169th in 2017 to 145th this The rankings refl ect the impact of regu- year has been celebrated by the administration. Howev- lation on business in countries, based on 10 er, the work of removing clogs in the system, eliminat- factors that directly affect business: starting a Mauritius and Rwanda top Ease of Doing Business in Africa ing excessive red tape and rooting out corruption is still business, acquiring construction permits, get- resolving insolvency, trading across borders, African country, at 25th out of 190 countries, incomplete. Poor regulation persists, much to the un- ting electricity, obtaining credit, registering and protecting investors. seems to be an anomaly. Rwanda is 41st, Mo- doing of the country. Why should it take months, years property, paying taxes, enforcing contracts, Mauritius, once again the highest ranked rocco 69th and Kenya 80th. The big econo- even, for a business to secure title to land? Others have not fared much better. The 2018 report shows that it takes 45 days to start a business in South Africa, compared with half a day in New Zealand. It takes 1,010 days and 26 percent of claim value to re- solve a debt contract in Egypt, compared with 164 days in Singapore and 9 percent of claim value in Iceland. Corruption, excessive red tape (and the more red tape, the more opportunities for offi cials to extract bribes) and poor regulation remain serious impediments to business. Six of the 10 lowest-ranked countries on the index are African ― they are also some of the poorest nations on the globe. They need to take these rankings seriously and seek ways to improve regulations to support busi- ness. To speed up its development, Africa must make itself more attractive to business. Given the continent’s cul- ture of warmth and hospitality, it shouldn’t be too hard to roll out the welcome mat. Please wake up, Africa, and give business a bigger hug!  Umeano is head of risk management at Nige- ria’s Securities and Exchange Commission. – ACCA UK economy wilts as Brexit jitters hit business investment HE United Kingdom economy buckled under the strain of Brexit uncertainty in the fourth quarter. T Gross domestic product increased a small- er-than-forecast 0,2 percent, compared with 0,6 percent in the third quarter. December alone saw the economy shrink by 0,4 percent, the most since before the 2016 vote to leave the European Union. The slowdown came as businesses cut investment for a fourth consecutive quarter, the longest continuous decline since the fi nancial crisis, and the weakening global economy hit trade. But there was no widespread evidence of stockpiling as the prospect of a no-deal Brexit looms larger, with inventories rising just 1,6 billion pounds in the quarter. While organisations such as Heathrow airport and Unilever have said they are keeping more on the store- room shelf to guard against disruptions to supplies brought in from the EU, the Offi ce for National Statis- tics said on Monday a relatively small number of fi rms reported taking similar action. The economy is facing the worst year for growth since 2009, with economists warning of a recession if Britain leaves the EU without a deal to smooth the tran- sition on March 29. The Bank of England (BOE) sees growth of 0,2 percent in the fi rst quarter, but the sudden loss of momentum at the end to 2018 suggests the econ- omy could stagnate, as indicated in recent purchasing manager surveys. With wage pressures building, the BOE might in dif- ferent circumstances be preparing to raise interest rates. But offi cials last week signaled they have no intention of doing so until the “fog of Brexit” has cleared. The fear gripping business was illustrated this month when Japanese carmaker Nissan scrapped plans to build a new model in Sunderland. Airbus, which makes wings for commercial aircraft in Britain, has also threatened to switch investment elsewhere. Business investment fell 0,9 percent in 2018. Brexit is not the only threat facing the economy. Major markets from the Eurozone to China are losing momentum, weakening demand for British exports. Net trade cut 0,12 percent points from growth in the fourth quarter as the trade defi cit hit the highest in more than two years. – BBC The Financial Gazette February 14-20 2019 | Page 25 Page 26 | February 14-20 2019 The Financial Gazette National News Zim urged to invest in clean energy

Shame Makoshori country, which produces an average Companies Editor 1 300 megawatts (MW) of electricity per day against national demand of 2 IMBABWE should invest in clean 200MW, is battling power outages due and renewable energy to boost its to lack of investment in the sector. Zwaning economy, the Austrian According to a ADC report titled Development Cooperation (ADC) has Solar Thermal Technology Roadmap said. and Implementation Plan, only six per- This comes as the southern African cent of electricity in Zimbabwe comes

Zimbabwe’s planned Batoka Gorge power project on the Zambezi River is expected to generate 2,400 mega- watts of electricity.

from independent power producers able Energy Policy is to achieve an should be owned by the State. We (IPPs) and a seamless renewable installed renewable energy capacity will invest to develop the power energy strategy would help the of 1 000MW ― excluding large hy- station, but ownership will be re- country export such technologies to dro ― by 2025, with a generation tained by Zimbabweans,” he said. the rest of the world. mix of nearly 17 percent of the total Feasibility studies have shown “Solar water heating and cooling electricity demand coming from re- that the Batoka hydro electrici- systems reduce carbon emissions newable energy sources. ty project ― which is shared by and earn carbon credits which may “This target is expected to meet Zimbabwe and Zambia ― requires fetch local manufacturers millions the supply deficit in the country as about US$6 billion. of dollars upon selling the same to well as to meet the emissions objec- Some international financial companies or countries in Europe, tive as per the intended nationally institutions are currently working Asia and North America that are determined contribution report ac- towards raising US$4 billion, and failing to meet their Kyoto Proto- cording to the draft national renew- the African Development Bank col quota,” read part of the report, able energy policy,” ADC said. (AfDB) is the lead arranger for the which was commissioned by the The new report comes at a time 2 400MW project. Zimbabwe government. when Zimbabwe has of late been at- Another global firm interested ADC further indicated that the tracting deep-pocketed internation- in investing in Zimbabwe is Italy’s earnings received may be a source al firms such as General Electric Enel Group, whose net worth is es- of funding for many development (GE) and the Enel Group of Italy, timated at US$40 billion. projects in the country. which have expressed interest to in- Sources say Enel has been keen Zimbabwe currently has a na- vest in the energy industry. to invest in Zimbabwe for some tional electrification rate of 48 per- GE Africa director originations time and its delegations have visit- cent, according to Zimstat (2017) in Reginald Max said his company is ed the country three times. the Inter-Censal Demographic Sur- targeting the Batoka power project, The Milan Stock Exchange list- vey Report. Electricity has reached among many other energy projects. ed firm is now expected to meet lo- 86 percent of the urban households “We have a track record and we cal energy players in Italy who will and 28 percent of rural households. have the financial muscle to under- be visiting the European country The report noted that one of the take the Batoka project. We believe from February 21 to 23. primary objectives of the Renew- that power assets such as Batoka [email protected] The Financial Gazette February 14-20 2019 | Page 27 Page 28 | February 14-20 2019 The Financial Gazette National News Cell Insurance gets BBB+ rating

ELL Insurance Company Limited (Cell percent in the 2017 fi nancial year, 131 percent in said. Accordingly, cash and equivalents covered Insurance) has received an initial BBB+ 2016 and 39 percent in 2015. The insurnce fi rm's earnings capacity is net technical provisions by 4,7x in 2017, while Crating from the Global Credit Ratings Cell Insurance’s competitive positioning is in- viewed to be intermediate, subdued by protracted claims cash coverage equated to 76 months com- (GCR). termediate, with the insurer accounting for seven underwriting defi cits over the historical period. pared to 37 months in 2016. Liquidity metrics are The rating refl ects Cell Insurance’s strong percent of the short term insurance industry gross “However, cognisance is taken of the im- likely to remain within a strong range, supported balance sheet as well as its adequate operating premiums in 2017. provement in the underwriting margin in FY17 by ample headroom and the possible improve- performance, neutral business profi le and appro- The fi rm, the sixth largest insurer in the local (13 percent; fi ve year average: -18 percent), ment in operational cash fl ows over the outlook priate enterprise risk management. market, was formed in 2003 as a unit of ZESA which could be sustained by an increase in the net horizon. “This has been supported by capital injections Holdings and became the fi rst and only licensed commission income ratio (10M F18: 16 percent; “Earnings diversifi cation is intermediate; with over the past three years, coupled with well con- captive insurance company in Zimbabwe, a mar- FY17: six percent). a well spread business mix offset by inherent tained credit and market risk exposures. Given ket that predominantly offered conventional in- “Further earnings support is expected to arise client concentration. The business mix is fairly efforts to safeguard capital through enhanced surance products only. from very conservative maximum deductibles diverse, with three lines of business contribut- earnings generation, combined with existing buf- GCR noted that the specialised nature of Cell per risk and event on the reinsurance programme, ing in excess of 10 percent to total gross written fers, risk adjusted capitalisation is expected to Insurance’s business model and captive revenue thus limiting the net impact of high severity loss- premium in 2017. However, few shareholders trend within a very strong range over the rating from shareholders with critical mass in the power es dominating the book. In this regard, manage- and select big clients account for the majority of horizon,” GCR said. industry provides revenue stability, which under- ment’s ability to sustain the turnaround in un- the business, albeit with risk to revenue mitigat- The international rating agency accorded pins market share resilience. derwriting performance represents a key rating ed by their systematic importance. Given these the credit rating ― valid until December 2019 “Going forward, the insurer’s competitive consideration over the rating horizon,” GRC said. structural limitations, earnings diversifi cation is ― based on robust risk adjusted capitalisation, positioning may improve to a moderately strong Cell Insurance's liquidity is viewed to be expected to remain within an intermediate range which is considered a key rating input, as refl ect- level, should premium growth accelerate in line strong, with the majority of invested funds held over the outlook horizon,” GCR added. ed by the international solvency margin of 151 with medium term strategic objectives,” GCR in liquid investments. - Staff Reporter newsdesk@fi ngaz.co.zw Stanbic invests $41 000 in bridge construction TANBIC Bank Zimbabwe (Stan- S bic) has released $41 000 for the con- struction of Shavanhowe Bridge in Mrehwa, some 90km north east of Ha- rare, adding to its list of high-impact assistance over the years. The investment is in line with the finan- cial service institution’s quest to support chil- dren, education and communities through a comprehensive corpo- rate social investment (CSI) strategy. Palmer Mugavha, Palmer Mugavha Stanbic’s head of mar- keting and communications, said the $41 000 sup- port was aligned to the bank’s CSI activities owing to its intention to provide safe access to school for children from nearby communities. He said the bank responded to a call by Rotary Harare Club for the construction of the bridge and did not hesitate to chip in. “Stanbic places greater emphasis on improving the welfare of children in socially challenged soci- eties, especially through educational support. When the Rotary Club brought to our attention that over the Latest News updates direct 1 000 children were facing difficulties getting to school due to flooding of the Shavanhowe River, it from your mobile phone today from as little as 12c/ day was the obvious option for Stanbic to render sup- Get port,” he said. Mugavha noted that approximately 1 300 chil- dren from Chemhondoro School, which is on the western side of Shavanhowe River, were affected. simply He said the financial institution was moved when it was brought to their attention that families liv- ing on the west bank risked their lives during rainy seasons as they attempted to cross the flooded river using ropes. “The worrying statistics that at least 14 students and five adults were reported to have drowned in Dial *109*2# this river as they attempted get to Chemhondoro School prompted us to act, and not only to save lives but also ensure that the children pursued their to Access News on the Go dreams through education,” said Mugavha. The coordinators of the project, Rotary Club of Harare, raised over $30 000 and roped in other stakeholders such as Rotary Club of Du Pont Cir- cle W.A. USA, NJR Steel RSA, ARUP Zimbabwe, Key Logistics, Gwaze Quantity Surveyor, Nation- al Art Gallery, Zimplats, Ascon Africa, Masimba Holdings, Steve Margolis Resort, Arundel Village Shopping Centre, Delta Resources Scaffolding, Mangwende community and the Zimbabwe Nation- al Army for labour and engineering expertise, with Stanbic providing the funds to purchase the steel re- quired for the bridge. 2nd Floor, Bluebridge South Wing, Eastgate Complex, Harare Another of Stanbic’s ongoing activities is the construction of a $100 000 Mothers’ Waiting Home Te: 798820-8 Email: [email protected] in Nyamuzuwe, also in Mashonaland East, which is Web: www.dailynews.co.zw due for completion in the first quarter of this year. - Staff Reporter [email protected] The Financial Gazette February 14-20 2019 | Page 29 Page 30 | February 14-20 2019 HYGIENIC SERVICES 1SO 9001:2015 CERTIFICATION SPECIAL FEATURE The Financial Gazette The future of Hygienic Services

TTAINING the coveted ISO 9001-2015 certifi cation for AQuality Standards is a bold statement of our long term commit- ment to provision of professional cleaning services. Our quality policy statement captures our pledge to har- ness all our resources and manpower to deliver quality service to our clients. Together, we will live the continuous improvement philosophy of ISO. The event Friday January 25, 2019 will re- main etched in the hearts and minds of all the staff at Hygienic Services. At a colourful function graced by many of our clients and offi ciated by directors from the Standards Association of Zimbabwe, managing director Fran- cis Mutyavaviri received the certifi - cate on behalf of the company. In his acceptance speech, he recognised the support of clients, suppliers and com- pany staff. Mutyavaviri reminded clients ― Emelda Mutsikamahwe, Hygienic Services customer service offi cer. present and potential ― that whoever they choose to give contracts to, they ly involved in this critical devel- try citizenry. Hygienic Services management team. should not compromise this vital ser- opment. Mutyavaviri was elected The future vice. Health and hygiene can damage national chairman at the inaugural The future is bright for Hy- their reputation and put the lives of meeting held in Harare last October. gienic Services and the industry their staff and customers at risk. The Key objectives of the association at large. Many clients, particularly consideration must not always go be- include: government institutions, remain in- yond the cheapest quotation but the  Fostering standards in service sourced. Such potential clients will capacity and record of service provi- provision be approached. The key is to be pro- sion.  Professional conduct in ser- fessional and remain at the forefront Cleaning industry developments vice delivery in offering quality service. In an effort to regulate and improve  Dignifying industry employ- ISO 9001-2015 certifi cation is standards in the industry, an initiative ees. but a signifi cant milestone in our to form an Association of Cleaning  Ethical and fair play journey. We will continue to evolve, Contractors of Zimbabwe was put in  Honouring statutory obliga- to adapt and to lead as we move for- motion. Hygienic Services is active- tions and good corporate and indus- ward into the future.

Hygienic Services team. KVC HOLDINGS(PVT)LTD Mission TEL:+263-8644250000 To provide hygiene 0783 000 069-Whatsapp Cell: 0772 777321-Ecocash solutions that deliver safe Address: 36 HARARE/CHARTER STREET workplaces and home We offer Training: environments.

Vision To be the best hygiene solutions provider in BASIC CHEMICAL MANUFACTURING the chosen services we LAB TESTING provide to our customers. COMMERCIAL PAINTS MANUFACTURING CONGRATULATIONS TO Values HYGIENIC SERVICES ON THEIR Consistency ISO CERTIFICATION Reliability BASIC PERFUMES MAKING Customer focus DETEGENTS & SOAP MAKING Value SYRUP DRINKS MANUFACTURING Honesty AGRO CHEMICAL MAKING

HEAD OFFICE 20 19 nn e 3 rolme da Training t 1- y 1 Argyll Drive Newlands BULAWAYO OFFICE EMAIL: [email protected] Hrarae, Zimbabwe. 11B Fort Street web:www.kvcholdings.co.zw Tel: +263 242 776 529/31/37 Bulawayo, Zimbabwe. +263 8677 111905 Tel: 029 889193 [email protected] Email: [email protected] Email: [email protected] QUALITY IS OUR CULTURE!!! The Financial Gazette February 14-20 2019 | Page 31

CALL FOR PUBLIC NOMINATIONS FOR PERSONS TO SERVE ON ZIMBABWE ANTI-CORRUPTION COMMISSION

The Standing Rules and Orders Committee of the Parliament of Zimbabwe is mandated in terms of sections 237 and 254 of the Constitution, to nominate candidates for appointment by his Excellency the President to serve as Commissioners on the Zimbabwe Anti-Corruption Commission provided for in Chapter 13 Part 1 of the Constitution.

Vacancies have arisen in the Zimbabwe Anti- Corruption Commission following the resignation of the Chairman and Commissioners of the Commission on the 31st of January, 2019 before the expiry of their term of offi ce.

Accordingly, the Standing Rules and Orders Committee is hereby calling on the Public to nominate persons to be considered for appointment to this Commission.

The functions of the Commission and the person specifi cations are given below. Functions of Zimbabwe Anti-Corruption Commission (Section 255 of the Constitution) The Zimbabwe Anti-Corruption Commission has the following functions — • to investigate and expose cases of corruption in the public and private sectors; • to combat corruption, theft, misappropriation, abuse of power and other improper conduct in the public and private sectors; • to promote honesty, fi nancial discipline and transparency in the public and private sectors; • to receive and consider complaints from the public and to take such action in regard to the complaints as the Commission considers appropriate; • to direct the Commissioner-General of Police to investigate cases of suspected corruption and to report to the Commission on the results of any such investigation; • to refer matters to the National Prosecuting Authority for prosecution; • to require assistance from members of the Police Service and other investigative agencies of the State; and • to make recommendations to the Government and other persons on measures to enhance integrity and accountability and prevent improper conduct in the public and private sectors.

Person Specifi cations Members of the Zimbabwe Anti-Corruption Commission must be chosen for their integrity and their knowledge of and experience in administration or the prosecution or investigation of crime or for their general suitability for appointment, and — • at least one must be qualifi ed to practise as a legal practitioner in Zimbabwe, and have been so qualifi ed for at least seven years; • at least one must be qualifi ed to practise as a public accountant or public auditor in Zimbabwe, and have been so qualifi ed for at least seven years; and • at least one must be a person with at least ten years’ experience in the investigation of crime.

Nomination material must consist of a typewritten submission of no more than two A4 pages long stating why the person nominated is a suitable candidate together with a completed nomination form which can be obtained at Parliament offi ces or download from the website: www.parlzim.gov.zw

Nominations must be addressed to the Clerk of Parliament in envelopes clearly marked with the name of the Commission and must either be posted, hand delivered or emailed to:

The Clerk of Parliament Parliament of Zimbabwe Parliament Building Cnr. K. Nkurumah Avenue and Third Street P.O. Box CY 298 Causeway Harare Email: [email protected]

Closing date of submission of nominations is end of day Friday 28th February 2019

Making Our Parliamentary Democracy Work A SAZ ISO 9001:2015 Certifi ed Organisation Page 32 | February 14-20 2019 The Financial Gazette National News Zim’s FDI woes continue Adelaide Moyo facturing and infrastructure development, among Business Reporter others. However, analysts have said following the NTERNATIONAL investors continue to shun recent violence in the country, coupled with the Zimbabwe due to policy inconsistencies as the worsening operating environment and erratic de- Icountry earned a paltry US$470 million in for- cisions by government, potential investors are eign direct investment (FDI) last year compared to likely to make a U-turn and reconsider their in- Mozambique and Zambia, which raked in US$2,3 vestment options in the country. billion and $1,1 billion, respectively. “As a result, we anticipate a decrease in FDI The southern African country has struggled in 2019, and if political and economic reforms are to attract significant foreign investment since the not observed by the international community, we early 2000s when former president Robert Mug- expect the lack of FDIs to extend into the longer abe’s government was placed under sanctions by term. In order to increase FDI inflows, the risks the United States and the European Union for hu- associated with investing in Zimbabwe need to man rights abuses and lack of respect for property be reduced, and it is essential that investor confi- rights. dence is boosted,” IH said. However, there was renewed hope when Em- The local think-tank said a lot has to be done to merson Mnangagwa rose to power through a mil- restore investor confidence, including legal steps itary coup in November 2017 that Zimbabwe will to protect FDI, such as an investor-state dispute start attracting increased foreign investment after settlement mechanism backed by international the new President declared that the country was treaties and political commitment to honouring “open for business”. them. But investment advisory firm IH Securities “Other challenges that need to be addressed in- (IH) said the 15,6 percent slump in Zimbabwe’s Emmerson Mnangagwa Mthuli Ncube clude the high cost of doing business due to high FDI shows that international investors have low taxes, corruption and foreign currency allocation, confidence in Mnangagwa’s government. country. bwe’s debt restructuring and to finance new proj- with political and macroeconomic stability being “While FDI inflows to sub-Saharan Africa In his 2019 budget speech, Finance minister ects, which include a $267 million investment a general requirement for improving the business (SSA) have increased significantly, Zimbabwe Mthuli Ncube said re-engagement efforts by gov- to immediately start production-related works in environment,” IH said. has not benefited much from this boom. Malawi, ernment had piqued investors’ interest, with more Darwendale for its platinum claims, and a mining Steve Hanke, an economics professor, said in- Botswana and Kenya are among some of the other than $15 billion worth of projects being negotiat- exploration project involving Alrosa, a Russian vestor confidence would remain low in the coun- SSA countries with relatively low FDI inflows,” ed. However, the investments have not translated mining company. try if government continued to churn out bond the research firm said. into real money yet. In Belarus, the southern African country notes and use RTGS. Although the government has tried to imple- The country is still desperate for investment, signed eight agreements, which include a grand Apart from country risks, investor confidence ment reforms ― including amending the Indi- justified by Mnangagwa’s recent efforts to show- rail and road scheme aimed at making Zimbabwe in the country has been worsened by some large genisation Act to reduce restrictions to only the case Zimbabwe’s potential when he embarked on a regional transport and logistics hub. corporates including BAT, Delta Corporation, diamond and platinum sectors, opening up other a four-nation tour of Russia, Kazakhstan, Belarus Azerbaijan agreed to explore cooperation in PPC and South African Airways’ failure to repa- sectors to unrestricted foreign ownership, increas- and Azerbaijan last month. the oil and gas sector, while discussions in Ka- triate millions of dollars in dividends, and funds to ing opportunities for foreign direct investments Several agreements were signed and Russia zakhstan focused on cooperation in agriculture, their foreign shareholders. ― business confidence has remained low in the expressed commitment to help support Zimba- mining, transport and logistics, industrial manu- [email protected]

For the week ending 13 February 2019 The Financial Gazette February 14-20 2019 | Page 33 National News RBZ finally pays off RioZim

Ndakaziva Majaka but they have since been paid,” RBZ governor John forced once again, to involuntarily suspend produc- sions with the RBZ and the Chamber of Mines, the Markets Editor Mangudya told The Financial Gazette without giv- tion across all three of its gold mines pending full decision to temporarily halt operations would have a ing more details. payment of its foreign exchange proceeds, which it material impact on the firm’s performance. HE Reserve Bank of Zimbabwe (RBZ) says RioZim chief executive Bheki Nkomo did not requires in order to procure the necessary consum- According to RioZim chairman Lovemore Chi- it has fully paid RioZim for deliveries made respond to questions sent to him. ables needed to keep gold production running,” the hota, in the 30 months leading to October 2018, the Tto its gold buying subsidiary. RioZim, which recently dragged the central bank company said in a statement. company had only received 14 percent of its money This was after the listed resources firm last week to court over its failure to pay foreign exchange Last year, the three mines were only re-opened in foreign exchange against an RBZ directive of 50 announced that it had shut down Renco, Cam and earnings due to the gold producer in the past ― last after the RBZ, which is the country’s sole gold buy- percent directly to its nostro account and 50 percent Motor and Dalny mines for the second time in four year estimated losses caused by payment delays to er through Fidelity, said it would allow mines to through application to the central bank. months because the central bank had failed to pay it be $40 million in increased expenses and delayed keep 55 percent of their earnings, up from the pre- Gold is Zimbabwe’s single largest export earn- in United States dollars for part of its gold deliveries. capacity, a figure anticipated to have shot up, pre- vious 30 percent. er and production reached an all-time high of 33 All gold producers in Zimbabwe are obliged to cipitating the temporary suspension of operations This was despite the fact that RioZim had re- tonnes in 2018 from 27 tonnes the year before, offi- sell their output to RBZ subsidiary Fidelity Printers last week. quested to retain 60 percent of its foreign exchange cial data shows, driven by record output from small and Refiners and are supposed to be paid 55 per- “As of date, the company has experienced signif- earnings in hard currency. scale producers. cent of their earnings in United States dollars. The icant and persistent delays in payment of its foreign Additionally, the RBZ then increased the local Big mining companies say the acute shortage of remainder is paid via electronic dollars into their currency allocation for deliveries made to Fidelity currency gold export incentive from five percent to dollars, which has also sapped supplies of fuel and bank accounts. Printers and Refiners since December 2018 and this 20 percent. medicines, hampers their ability to expand produc- “They have been fully paid now. It is very unfor- has severely affected the viability of the company’s RioZim, which gets 90 percent of its earnings tion and start new projects. tunate that it came to that (suspension of operations) operations and consequently, the company has been from its gold operations, said while it was in discus- [email protected]

PRESS STATEMENT

HEARINGS BY THE COMMISSION OF INQUIRY INTO URBAN STATE LAND IN MASHONALAND CENTRAL PROVINCE

The Commission of Inquiry into the of sale of state land in and around urban areas since 2005 wishes to advise all beneficiaries of state land handed over for urban development since 2005, that the Commission will be hearing the public in Mashonaland Central Province from 18 February to 10 Muhammadu Buhari Atiku Abubakar March 2019 with the view to inquire from such public pertaining to the following:  People who bought state land handed over for urban development;  Double or multiple allocations; Nigerian economy  People who have been allocated stands on spaces meant for the building of schools, clinics, roads, recreation sites; under power lines, wet lands, open spaces etcetera;  People who have been displaced or prejudiced in any way by the re-allocation, resurveying grows at fastest and/ or re-pegging of stands;  People of the above category who have been threatened, harassed, victimized, or forced to pay subscriptions/rentals or to vacate stands against their will and without following due pace in two years process;  Where various categories of beneficiaries ended up prematurely moving onto site before the IGERIA’S economy grew in 2018 at its fastest requisite infrastructure has been provided; pace since a recession two years earlier, data  People on settlements which have not been serviced for a long time; showed, just days before a presidential election N  Where development has occurred without appropriate approvals from relevant authorities; in which boosting growth has been a major campaign issue.  People who have been promised stands and have been paying but have not been allocated Gross domestic product grew by 1,93 percent last same; and year, up from 0,82 percent in 2017 and just short of the  Any other information pertaining to illegal transactions of urban state land known to public. government’s 2 percent projection, the National Bu- reau of Statistics said on Tuesday. It grew 2,4 percent Among others, the Commission shall inquire into the following farms, locations or urban state land in the fourth quarter. units: A Reuters poll of analysts had forecast growth of 2,1 percent, saying growth was expected to slow as inves- District Farm/ Urban State Land Unit tors held off before the elections. Nigerian stocks rose to their highest in almost three Bindura Barassie Farm months, gaining 1,75 percent after the statistics office released the GDP data. Woodbrooke North Economic growth has been recovering since the Mazowe Selby third quarter of 2016 when the recession bottomed out. Ingleborough Higher oil prices helped Nigeria exit that contraction. “Nigeria’s economy accelerated to 2,4 percent in the Tsikwi fourth quarter, but momentum in the non-oil sector re- mained very weak,” John Ashbourne, senior emerging Subdivision 19 of Whelstone markets economist at Capital Economics in London, Mt Darwin Eureka said in a note. “Low oil prices will weigh on growth in 2019, but the longer-term outlook depends heavily on the result of Saturday’s presidential election.” For those who intend to be heard, submit or provide any information/documents/evidence or those The election is expected to be a tight contest be- who need clarification on any matter relating to the above or any other urban state land other than tween President Muhammadu Buhari and Atiku Abu- the above, should not hesitate to visit the Commission during working days and hours at Harare bakar, a former vice president. More than 60 other Club, Mezzanine Floor, Cnr 3rd Street and Nelson Mandela Avenue, Harare opposite Africa candidates are running but are given little chance of Unity Square. winning. Buhari has made rejuvenating the economy a key Our contact details are as follows: issue, hoping his record can secure him a second four- year term in office. Abubakar has touted pro-business policies, including floating the Nigeria’s currency, the 0712 205 636; 0712843495 naira. The World Bank had expected growth to be slightly less than 2 percent this year as the elections kept for- eign investors away. V. Mabiza (Mrs) The non-oil sector grew 2 percent in 2018, more Secretary to the Commission of Inquiry than the oil sector, which rose 1,14 percent from Janu- ary to December, the NBS said. Oil production stood at 1,91 million barrels per day in the fourth quarter. – Reuters Page 34 | February 14-20 2019 The Financial Gazette National News Zimbabwe should adopt rand: Biti

IMBABWE should adopt South Africa’s would also enhance regional integration” by giving In addition to the dollar, Zimbabwe’s central rand as its currency, one of a series of funda- manufacturers in the country access to 300 million bank also prints quasi-greenbacks called bond Zmental reforms needed to restore economic consumers in southern Africa, compared with the notes and an electronic currency known as RTGS stability, former Finance minister Tendai Biti said. 100,000 he estimates can still afford goods usually to fund rampant government spending and stem the His call is an endorsement of government ef- bought by the middle class in Zimbabwe. shortage of foreign exchange. This has resulted in forts to link Zimbabwe’s economy to neighbour- Biti, who served as finance minister from Feb- a convoluted system of exchange rates, with con- ing South Africa’s currency as it grapples with a ruary 2009 until September 2013, is deputy chair- sumers charged different prices depending on how foreign-exchange shortage that has spawned the man of the opposition Movement for Democratic they pay even though the government insists all the fastest price increases since hyperinflation a decade Change. securities are at par with the dollar. ago. Zimbabwe abolished its own currency in 2009 Zimbabwe is considering pegging a planned Biti said both the bond notes and RTGS should and mainly uses the US dollar. new currency to the rand, one of several proposals be scrapped. The American currency is too strong for the being discussed by the government, The Financial Inflation reached an estimated 500 billion Zimbabwean economy, Biti said last week in an Gazette reported last week. It may be favoured be- percent in 2008 before the Zimbabwe dollar was interview in Johannesburg. Joining the so-called cause South Africa is the country’s biggest trading scrapped. The rate rose to 42 percent in December Common Monetary Area, in which Namibia, Le- partner, it said. from 31 percent in November. Price-growth risks sotho and Eswatini peg their currencies to the rand, The rand has had a strong start to the year, gain- are entering another hyperinflationary cycle, driv- would reduce costs, he said. ing 5 percent. That makes it the second-best per- en by government’s “insatiable appetite” to spend “The advantage of joining a rand monetary union forming emerging markets currency, based on a money it doesn’t have, Biti said. “To have two hy- would be that it would foist some much-needed dis- basket selected by Bloomberg, behind the Russian perinflationary spells in a period of 10 years isa cipline on the Zimbabwean economy,” Biti said. “It ruble. miracle of failure,” he said. – Bloomberg Tendai Biti Zambia exports surplus power to SADC SA in multi-billion N THE first quarter of 2018, and enough power to end the crippling construction of mini solar plants for the first time in its history, daily blackouts and meet consum- with an eventual overall capacity IZambia stopped importing elec- er needs of the country’s 17 million of 600MW at an estimated cost of airport expansion tricity and now its surplus electricity inhabitants, according to the African US$1,2 billion. is expected to power the Southern Development Bank (AfDB). The AfDB, which is champion- NEW R4,5 billion office complex is “The western precinct development African Development Community The Itezhi-Tezhi power plant has ing its High 5 development priorities, to be developed in the western pre- forms part of a strategy to expand our offer- (SADC). already increased the country’s pow- such as the “Light up and power Af- cinct of the OR Tambo International ing and drive new sources of growth for the Zambia has been importing pow- er generation capacity by 7,5 percent rica, initiative under which this proj- A Airport in the first of seven phases that will entire region.” er from neighbouring countries such and supplied an extra 50 000 people ect falls, contributed US$55 million kick-start a massive plan for new cargo and Pityi-Vokwana said the other six phases as Mozambique and with the new with electricity. to the Itezhi-Tezhi plant. Additional passenger terminals. on the 8,5 hectare development site with 180 milestone, the country’s constant In September 2017, national op- funding has been provided by inter- Bongiwe Pityi-Vokwana, the airport’s 000m² of bulk for mixed use development power cuts are now a thing of the erator Zesco’s head of power trans- national donors including the Nether- general manager, said the first phase would would conceptually include a retail offering past. mission, Webster Musonda, was lands Development Finance Compa- comprise three six-storey office buildings with a possibility of a hotel and conference The turnaround is due to a robust quoted by the Ecofin agency saying, ny, the Development Bank of South that would be built on a podium and provide facilities. The development of these phases hydro and solar power generation “Zambia’s power generation capac- Africa and Proparco France. a total of 30 000m² of office space. would be tenant demand driven. industry in recent years, making the ity has improved and will now be The bank’s portfolio in Zambia Pityi-Vokwana said construction would Pityi-Vokwana said the Western Precinct country self-sufficient in energy. For able to largely meet its energy needs. currently includes 23 ongoing proj- take place on a site that was previously a car Consortium, whose ownership profile was the Southern African nation, elec- Overall, we will be able to meet de- ects, amounting to an investment park. Construction would start this month 62 percent black-owned, would be responsi- tricity production could soon be in mand and routine energy imports of $1 billion, in three main sectors: and would be completed by the end of next ble for the development. surplus and citizens could enjoy the will cease.” transport, water and sanitation and year. The consortium members comprise de- benefits of exporting power to neigh- At the time, he said, “We will agriculture. She said two of the buildings would veloper HERI Propco, mmqsmace Consul- bouring countries. continue to import energy to meet oc- Zambia and Zimbabwe are work- house the head office of the Airports Com- tancy and building contractor TiBER Con- pany South Africa (Acsa), which is currently struction. Zambia generates practically all casional peaks in demand.” The next ing on a major energy project on the based in Bedfordview, and the SA Civil Avi- Pityi-Vokwana said workers would be Zambezi River, which marks their its energy production from its own step for the Zambian government ation Authority, which is in Midrand. sourced from the local communities, with up primary resources. These resources includes plans for an energy surplus common border. The 2 750km long Pityi-Vokwana said the third building to 1 100 workers on site at the peak of con- include biomass, coal and hydroelec- over the next two years”. river is the fourth-largest on the con- would be available for rent and have com- struction of the first phase. tricity. Flagship plants such as the To meet this goal, Zambia is ex- tinent. The project, which has a pro- mon facilities that would make the airport She said the airport’s Midfield Cargo power station near the Itezhi-Tezhi ploring renewable energy such as jected output of at least 2 400MW, more attractive to local communities, such Terminal, with a total of 450 000m², was ex- Dam, in the south-east of the country, solar power. The country’s new hy- is to be built upstream of the Kariba as a fitness centre, canteen and creche. tremely constrained and the facility locked are taking centre stage. The US$375 dropower stations at the Musonda, Dam, close to the famous Victoria She said the office complex would also between the R21 freeway and the runway, million hydroelectric generating sta- Lusawaki and Kafue Gorge dams are Falls, at a cost of $3 billion. provide almost 2 000 parking bays, while which prevented its expansion. tion became operational in 2016. important developments and in Sep- Electricity output will be shared the northern roads near the precinct would Pityi-Vokwana said a plan was quite ad- With a 120-megawatt capacity, tember 2018 the government inaugu- equally between Zambia and Zim- be upgraded. vanced to build a new cargo terminal in two the plant is the fruit of the first pub- rated a 50MW power plant at a cost babwe, with excess production sold “Today marks an important milestone in phases at an estimated cost of about R4,4bn lic-private partnership project in the of US$60 million. to other member countries of SADC, the transformative journey of OR Tambo In- that would double the cargo throughput of Zambian energy sector. Its prima- An even more ambitious pro- according to the project’s initiators. ternational Airport as we turn it into an aero the terminal to 2 million tons a year. ry objective has been to produce gramme is underway, involving the – ANA city and unlock the development potential of She said the new cargo terminal facilities the western precinct,” she said. should be ready by 2023. – IOL

S A young scholar in Scotland, I never quite vited aggressive behaviour on Justin’s part. That is understood why French President Charles an insult.” Meredith went public. “Me too ― Fairfax de Gaulle was contemptuous of US culture, did something similar to me at Duke.” Acalling its extremism, a circus of the insane. A circus of the insane! After intensive questioning, Meredith confessed Ever since President Donald Trump won the that she had been raped (prior) by a basketball player. election against the wishes of the establishment, they of the US elites. The mantra goes trated attempt” to blacken his “Are you then in the habit of being raped?” That have set every trap along the way in an attempt to get like this. name. His lawyers will sue. is a cruel question. rid of him. The two most consistent narratives centre “He is a racist, he must re- Girls have missed out on I was once a student advisor for minority stu- on a man’s respect for women and a non-racial atti- sign.” I tried to explain this to Martin Luther’s wisdom. Men dents. The matter above is typical. I “outed” myself tude towards blacks. This position is insane because my friend Fabian Mabaya and he are by nature promiscuous. out of that role when a girl nicknamed “Speedy” beat it leaves no room for redemption and for enlightened said; “Wo! Wo! The man has not When Fairfax did not return her up a boy who had sent flyers with descriptions of his behaviour which comes with maturity. been judged and found guilty by calls, she knew she had been sexual encounter with her. The name Speedy is a rev- But that was the intention; any untoward be- any credible organisation!” used. This is called rape by re- elation of what boys thought of her. haviour, no matter how far back in one’s life, com- In response, the governor gret. (Akayuzwa-Karanga) The next leader in Virginia in line of succession mitted against women or blacks was to be punished made an unforgivable mistake. Now a professor, seeing the is the Attorney-General. The AG, as he is called, was without trial. The second imperative was that a racial At first he showed remorse “bastard” rising in world affairs loud and aggressive about the despicable behaviour act, discovered even from archival evidence, com- about foolish boyhood pranks. brings back painful memories. of Northum and Fairfax. mitted over 30 years ago, called for resignation. Then on second thoughts, he She can no longer stand it. “They must resign, and we can go forward,” the denied that the photo was his. LETTER FROM AMERICA She “outed” him (US En- As De Gaulle prophesied, it is this propensity to by Ken Mufuka hypocrite announced, hoping to assume the title of rush to the extreme that turns otherwise positive ac- If Northum resigns, the glish). governor. tions into a circus of the insane. For instance, many successor would be a hand- Now, remember to throw That is, before an investigator read about this actions taken in private, when exposed to sunshine some brother, Justin Fairfax. These two men, Nor- a grape into your mouth. “He must resign.” holier-than-thou-attitude and “outed” the rascal. He laws ― become gross. thum and Fairfax, assumed office on January 7, a “Wo! Wo! The guy has not been tried!” I remem- too, as a student, had played or dressed up in Ku My point in this letter is that all their attempts to month ago. ber Mabaya saying. Klux Klan attire. drive Trump out of office have boomeranged and Seeing his prize slipping away from him, Nor- That is my point. “Are you disbelieving a vic- I will not bother to tell you about the fourth line created a circus of the insane. thum (so the story goes) told on Fairfax. Vanessa tim?” Tyson is a survivor. Soros (sisters) gather of succession. He “outed” himself before researchers Virginia’s Governor Ralph Northum, MD, by Tyson in 1984 was working as a staffer for the Dem- around her in commiseration and admiration. found out about his yearbook. all accounts, has lived an exemplary life in cham- ocratic Convention. Fairfax was 25 and a rising star. “He must resign.” The mantra goes on. French Minister Georges Tron, also Mayor of pioning black advancement. He was in good books One thing led to another and Sister Vanessa ac- But the matter did not end there. A student at Bobingny, was acquitted on charges of sexual ag- with former president Barak Obama. Nevertheless, a companied Justin to his hotel room where she kissed Duke University, Fairfax “committed a premeditated gression on Brigitte Gruel. The court found that Gru- political opponent posted his 1984 Medical School him. Things went out of hand and Fairfax did things and aggressive sexual act” against Sister Meredith el had repeatedly returned to the massage parlor. Yearbook photo. He was dressed in Ku Klux Klan she did not agree to. Watson. Now the “bastard” is denigrating Tyson as Please ndapota hangu, girls, do not undress your- attire. Now, I must choose my words carefully before “quite keen.” self in a boy’s hotel room, take a shower, and expect At this moment, the reader should drop two the feminists jump all over me. The brother says she Sister Meredith could no longer hold her anger. to be treated like Mother Theressa. That is insane. grapes in his mouth, wear owl glasses in imitation was “quite keen” (his words). “There is an orches- “The man is assaulting the victim as having in- [email protected] Life & ArtsNews Worth Knowing

February 14-20 2019 Page 35 Go big at Victoria Twenty Two on Valentine’s Day

ALENTINE’S Day is upon us, be able to present yourself as a person chocolate mousse for dessert. restaurant entrance; here we were gourmet pasta, Victoria Twenty Two is and Harare has transformed who's fun to be with, and the perfect If you’ve decided to go big this greeted by a courteous and immacu- the place to go. Vitself, just for today, into the partner for an evening of jollity. year, you'll have made a booking well lately attired waiter, who escorted us Ravioli Alfredo ($32) was fresh- City of Love. As a last resort consider buying a in advance at a romantic restaurant of to a table for two. ly made and piping hot. The pasta Chocolate makers will make love potion, but remember the cau- your choice. The wine list, although not exten- was silky, and the creamy mushroom more money today than at any other tionary tale told by The Clovers in the When I phoned Victoria Twenty sive, was stylish and refined. If you sauce fragrant. (A charming maitre time of the year, Valentine cards and 1959 pop song ‘Love Potion No 9’. Two last week, reception said they can’t afford the new prices for wine, d' exchanged without demur the first e-messages will be winging their way A young man who ‘had been a flop you are welcome to bring your own plate of pork-stuffed ravioli that had through the postal system and cyber- with chicks...since 1956’ obtains a bottle, and pay $8 corkage. arrived, owing to a glitch in ordering.) space, and florists will have sold out love potion from a gypsy named Ruth, A Matter of Taste The white damask table cloth We listened to the sweet sounds of of red roses, symbols of love, longing but ends up ‘kissing everything in gleamed and wine glasses glinted in FaB Fusion, as dessert (caramel ice and desire. sight’ and falls foul of the law. with the candle light. cream, $16) arrived. Substituting roses with a bunch of The choice for those with partners Charlotte Malakoff We were surrounded by tasteful After a long wait, a waiter took our dahlias or sun flowers bought at the is simpler — either go big or go home. original art work, bowls of fresh flow- order for filter coffee and hot choco- roadside will not convey the right mes- For a successful date night dinner with ers and attentive waiters. late, stylishly served and accompanied sage, and might even alter the course your sweetheart at home, choose an Everything was set for a romantic by a silver platter of friandises. of true love, which Shakespeare re- aphrodisiac starter salad of avocado were fully booked for Valentine’s Day evening. Could anything go wrong? Any attempts at flirty conversa- minds us ‘never did run smooth’. pears vinaigrette with roasted aspara- dinner, but was I interested in the day We chose a starter platter to share. tion or exchanging endearments were Being without a partner on Valen- gus. before or the day after? Wafer-thin slices of cured beef gar- doomed, as George listened entranced tine’s Day presents certain challenges. For the main course, substitute Since I’ve never reviewed Vic 22 nished with Parmesan cheese, a retro to Fay and Brennan’s rendition of There’s nothing to stop you buying popular but costly choices of salmon for this column, I decided to celebrate prawn salad with Marie Rose sauce Malaika, Hotel California and other your fave slab of Cadbury's at the or scallops with sauteed fillets of tila- the most romantic night of the year, and shredded lettuce, and fried Hal- favourites. supermarket, or treating yourself to a pia, garnished for a natural high and not on the day, but a week in advance. loumi cheese with a dipping sauce The evening was over, but it was bag of crispy KFC to munch alone at increased heart rate with crisp-fried Night fell and last week we set off ($32) were delicious. just a trial run for the real thing. home. green chillis and onion rings. by moonlight for Newlands and Vic- Pork fillet with a port wine reduc- We’ll be celebrating tonight with But if there’s a person of interest Montezuma and Casanova, both toria Twenty Two, home since 1996 tion ($42), George’s choice for his a cosy meal at home, and if that fails whose attention you would like to at- legendary red-hot lovers, relied on to restaurateurs Mark and Manuela. main course, was beautifully plated to impress, there’s always recourse to tract, prepare in advance by taking a the potent antioxidants found in choc- A rustic but well-lit path led through and delectable. Love Potion No 9. short course in flirting. You will now olate, so whip up a sweet and dark a flourishing tropical garden to the For a generous plate of high quality Comments to: [email protected] Valentine’s Day, do not send your woman withering red roses Njoki Kaigal

ODAY is Valentine’s day and by now it should be a no-brainer that many women who are in relationships (or Twho imagine they are in one) are looking forward to this great day of love. For women, Valentine’s Day is like examination day where they put their men to the test on the life threatening issue of how romantic and loving they are. One would imagine that after all these years of Valentine’s communication and commercialisa- tion, men would have embraced the day. Alas! That is not the case. Men still continue to whine and complain about the Valentine’s Day fuss, with some coming up with some ridiculous ways to sabotage the day. Since we have accepted their manic obsession with Formula 1 and football derbies, the least they can do is get with the pro- gramme when it comes to Valentine’s. So in order to be clear Men also need to understand that when it comes to Val- about Valentine’s, let us outline some of the expectations that entine’s Day flowers are just a bare minimum. women have and which they will be expecting. Firstly, all men who are in relationships are expected to re- member and recognise the day. remember the following: If the love interest is a young campus Now, some men get vague about the ‘being in relationship’ girl, she will most likely expect flowers and some phone that status. If you have been enjoying conjugal benefits with a lady allows her to take selfies to floss her glamorous life. A 30-some- consistently over a period longer than one month, then accord- thing working lady will expect more like a voucher to some ex- ing to the lady you are in a relationship. otic spa or a weekend out of town. If you have been spotted in public events (and especially in A 40-year-old lady will need something a bit more signifi- pubs) over three times in the last one month, then you are in cant like a new car, or the latest cooking stove. relationship. Of course, these choices are not cast in stone for we know If she keeps calling you babe and darling, it is not because some 20-year-old lasses who will only respond to a gift that has she likes your baby face, it is because she believes you are her a motor and we have 40-year-olds who will settle for a perfume. boo and come Valentine’s Day, you had better deliver. All we are saying is that the man need to invest in some re- Men also need to be wary about ladies who tick the ‘in a search lest his Valentine manoeuvres do not meet expectations. relationship’ box in their Facebook profiles — they too might It would be criminal not to mention “pop the question” ex- have some expectations if you have been hanging around them pectations that are usually a part of every Valentine’s Day. too much. You see, many women who have been in a certain kind of So any man who has been cavorting with a number of wom- relationship expect to be rewarded with a marriage proposal on en in recent months should know that all of them will be expect- the most romantic day of the year. ing something this Valentine’s — everyone from the friend with They may not explicitly say it, but just like other women, benefits to the mpango wa kando to the wife. they are good at dropping subtle hints and signs about their ex- Men also need to understand that when it comes to Valen- pectations. So that men do not feign ignorance, here are things tine’s Day flowers are just a bare minimum. that could point to a Valentine’s Day proposal expectation. Sending your significant other flowers only is no longer If you have been openly dating a girl for a period of more sufficient in meeting the Valentine’s Day threshold. Any serious than two years, then chances are she hopes you will pop the man is expected to deliver flowers in addition to another gift — question on Thursday. something of significance not a card. The something else is de- By openly dating, I mean that she has met your folks, your pendent on the profile of the female love interest. family friends and she has more than a few undergarments and To make sure that the right gift is delivered, a man needs to clothes permanently in your house. — standardmedia.co.ke ZIMBABWE Cricket has been awarded the rights to host the Africa regional qualifying tournament for the ICC Women’s T20 World Cup 2020. The qualifi- News Worth Knowing ers are scheduled for Harare across three venues — Harare Sports Club, Old Hararians and Takashinga Sport Cricket Club — from May 5 to 13. Page 36 February 14-20 2019 SPORT SHORTS Real Madrid is now Naomi Osaka dumps coach NAOMI Osaka shocked the tennis world on Monday after she announced she was split- ting with her German coach Sascha Bajin, abruptly ending one of the most successful re- richest football club cent partnerships in women’s tennis. The surprising news came just 16 days after Osaka EAL Madrid is now the world’s rich- won the Australian Open, her est football club, raking in a record second Grand Slam title under US$849,3 million in revenue in the Bajin’s watch following last R year’s US Open triumph. The 2017-18 season, according to the Deloitte Foot- ball Money League report for 2019. win in Melbourne vaulted the Japanese to the world No. 1 rank- It was the first time a club made more than ing, a first for an Asian male or female singles player. US$800 million. “Hey everyone, I will no longer be working together with The Spanish giants ended Manchester Unit- Sascha. I thank him for his work and wish him all the best in ed’s two-year domination of the annual list by the future,” the 21-year-old wrote on Twitter. Bajin, who became generating revenue of US$849 million last sea- a coach after serving as the long-time hitting partner of Serena son — an all-time record for any football club. Williams, was named the WTA’s Coach of the Year in 2018. He United slipped to third place after their in- responded on Twitter to Osaka’s announcement. come stalled at US$754,3 million, with Bar- “Thank you Naomi,” Bajin wrote. celona also overtaking them after earning “I wish you nothing but the best as well. What a ride that US$781,6 million and completing a number was. Thank you for letting me be part of this.” — theguardian. one and two for La- Liga. com English teams fared well on the whole, however, with Tottenham’s financial growth Chelsea want Zinedine Zidane swelling the number of Premier League repre- sentatives in the top 10 to six. The other four CHELSEA are ready to turn are Manchester City Chelsea, Arsenal and Liv- to Zinedine Zidane to make erpool. them a European superpower The Real deal again. Current manager Mau- Real Madrid’s revenue grew by US$86 mil- rizio Sarri is running out of lion year on year as they won the Champions backers after the 6-0 drubbing League for a third consecutive season, beating at the hands of Manchester Liverpool in the final. City as the Blues dropped to That growth was driven by a US$62,2 mil- sixth in the Premier League. lion increase in commercial income as the Eu- Infographic by Darius Mutamba There is growing support ropean champions capitalised through sponsor- amongst the top brass for ship, merchandising and increasingly lucrative tle, despite nearest challengers Paris Saint-Ger- The elite game remains in good health, with Zidane and talks have ad- pre-season tours. main narrowing the gap with increased revenue the combined revenues of the 20 clubs in the vanced this week over when they should make their move. “They’re really leveraging on-pitch suc- of US$613,8 million. Football Money League totalling US$9,3 bil- Zidane’s incredible Champions League credentials, winning cess,” Deloitte’s Sam Boor said. “It’s that virtu- England dominate top 10 lion — a record and a six percent increase on it three times in three years as manager of Real Madrid, are a ous cycle that clubs aspire to: on-pitch success Liverpool’s run to the Champions League the previous year. huge draw for the Blues board. into improved commercial performance.” final boosted their revenue by US$101,9 mil- Broadcast income remains the single most The 46-year-old is currently not in management and is un- Progress in the Champions League and the lion to US$581,9 million and lifted them ahead valuable stream, accounting for 43 percent, but derstood to be very keen on a job in the Premier League. exploitation of brand power through commer- of domestic sparring partners Chelsea, who re- commercial revenue continues to grow in sig- Chelsea superstar Eden Hazard linked with a move away cial activity are the key differentials among mained eighth, and Arsenal, who fell to ninth. nificance and now makes up 40 percent of the from the club with his contract up in 2020 idolises Zidane. A the biggest teams. Deloitte expects Madrid to Tottenham were the other English club to top clubs’ turnover. move for the legendary French player, who won the World Cup sustain their record-breaking revenue, provided make big gains, with their US$77 millon uplift All clubs in the top 20 play in Europe’s five with Les Bleus, would be encouragement for Hazard to sign a there is no dramatic decline in their European in income to US$484,7 million elevating them biggest leagues: England, Germany, Spain, Ita- new deal. Sarri was unbeaten in his first 12 games in charge at fortunes. back into the top 10 for the first time in more ly and France. Stamford Bridge, having succeeded sacked Antonio Conte last “Continued success in Uefa competitions than a decade. Only three teams in the top 30 are from out- summer. — thesun.co.uk will be essential to maintaining three quarters Arsenal slipped three places in the list as side the big five: Zenit St Petersburg (25th), Be- of a billion euros revenue,” added Boor, senior the absence of Champions League football for siktas (26th) and Benfica (30th). manager in Deloitte’s Sports Business Group. the first time this century depleted revenue to How are they making so much money? New F1 boss to start at McLaren Barcelona saw revenue increase by US47,5 US$497,2 million, only narrowly above their The top 20 clubs made a record US$9,4 bil- million to US781,6 m as they reclaimed the north London rivals. lion last season — that’s more than double what Spanish league title from their fierce rivals, Everton (17th), Newcastle (19th) and West they made a decade ago. although they still lost ground to them off the Ham (20th) also made the top 20, taking the And most of that (43 percent) comes from field. total number of Premier League teams to nine. broadcast revenue. Commercial revenue and Manchester United left behind Star power boosts PSG match day revenue make up 40 percent and 17 United’s revenue remained flat as they suf- French champions PSG reversed two years percent of the clubs’ revenues respectively, ex- fered a premature Champions League exit to of falling revenues and climbed one place to plained Deloitte. Sevilla in the last 16 last year, although they sixth in the Deloitte rankings as income grew “Nonetheless, a noticeable trend in this were still comfortably ahead of Bayern Mu- by US$62,2 million to US$613,8 million. year’s edition has been the commercial growth nich, who were fourth in the list. Matchday and commercial revenues both achieved by Europe’s largest clubs, particular- They will challenge Barcelona for second improved — a trend attributed to the club’s ly for those in the ‘big five’ leagues with no ANDREAS Seidl will begin his role as McLaren F1’s managing place in next year’s list, with United set to ben- signing of global superstars Neymar and Kylian new broadcast cycles commencing in 2017/18 director on 1 May, the team have confirmed. McLaren appoint- efit from higher Champions League payouts, Mbappe in the preceding summer. (i.e. England, France, Italy and Spain),” the re- ed the 46-year-old German, who used to be the boss of Porsche's although their prospects of unseating Madrid Deloitte predicts that the impact of marquee searchers continued. World Endurance Championship team, in January. likely rest on engineering sustained improve- signings such as Neymar, Mbappe and Cristia- However, Real Madrid also had their third “We’re delighted Andreas is able to join the team on 1 May,” ment on the footballing front. no Ronaldo — who left Madrid for Juventus in successive Champions League title to thank for said Zak Brown, McLaren Racing chief executive. “Improved on-pitch performance will help August — on revenue streams will become an their blockbuster revenue, as it triggered com- “This enables us to continue the momentum of our recovery that virtuous link to financial performance, be- increasingly important decision in the transfer mercial improvement and lucrative sponsorship plan and we’re looking forward to welcoming him.” cause as we’ve seen with Real, their commer- policies of elite clubs. and merchandise deals. Seidl, who worked in F1 for BMW from 2000-09, said: cial growth in the last few years has been quite “It will be really interesting to see if the “Real have financial security from long- “This is an enormous privilege and challenge. To have an oppor- staggering and it’s no coincidence that they’ve Neymar move to PSG is a one-off or the first term partnerships with adidas and Emirates, tunity to contribute to the McLaren legacy is extremely special been the most successful team in Europe,” said example of it happening under perfect condi- but the on and off-pitch impact from the sale and inspiring. Boor. tions,” said Boor. “Will Ronaldo also trigger of talismanic forward Cristiano Ronaldo in the “McLaren has the vision, leadership and experience but, Manchester City held onto fifth place with further revenue growth for Juve? TBC.” summer of 2018 remains to be seen,” the re- most importantly, the people to return to the front, and that will €568m as they romped to the Premier League ti- Elite continue to thrive searchers added. — soccer.net be my absolute focus and mission.” — bbc.com The Financial Gazette February 14-20 2019 | Page S1

ZITF preparations gain momentum

HE Zimbabwe International Trade Fair (ZITF) vestment, infrastructural gaps, competi- with a vested interest in Zimbabwe’s sus- •25 April — ZITF Charity Golf Chal- is an annual multi-national expo which pro- tiveness and value-chain linkages. tained industrial development, have been lenge to be held at the Bulawayo Golf Club T vides a convenient trade hub for the region, In addition to representation from the invited. •26 April — ZITF Official Opening and welcomes both trade and public visitors. highest echelons of government, a number •25 April — CZI/ZITF Original Equip- Ceremony Preparations for the 60th edition of the Zimbabwe of regional and international speakers, all ment Manufacturers Forum •26-27 April — Public Days International Trade Fair are gaining momentum and the organisers are upbeat and charged with positivi- ty for a successful show. The diamond jubilee show takes place against a backdrop of Zimbabwe’s re-engagement with the international community and renewed impetus to work together to achieve a positive socio-economic outlook for Zimbabwe. The show will take place from April 23-27 under the theme: “Propagating Industrial Growth through Trade & Investment.” The theme is a rallying call for industry and com- merce to participate in the trade showcase to explore and cement synergies that promote trade and invest- ment. It aligns itself to Zimbabwe’s economic recon- struction agenda by promoting ZITF 2019 as oppor- tune engagement platform between and among trad- ing and cooperating partners, potential investors, international and local business people. The ZITF extends an invitation to the local, re- gional and international enterprises and corporates of all sizes within the business community, to par- ticipate in ZITF 2019. •Foreign interest in the exhibition has been high with confirmed foreign representation coming from Japan, Malawi and Mozambique. •From the end of last year, ZITF has been en- gaged in a concerted foreign participation drive that includes one-on-one meetings with a total of 30 foreign heads of missions based in Zimbabwe and representing target countries from SADC, South America, Asia and previously dormant markets such as Europe and North America. •Additionally, company representatives have also taken part in high-level trade missions such as the Intra-Africa Trade Fair held last month where they had promising meetings with government officials and business people from African countries such as Botswana, Kenya, Tanzania and Rwanda. •These initiatives complement government’s ef- forts where, through the Zimbabwean diplomatic missions abroad, we have been actively engaging potential investors keen to partner with us for mutu- ally beneficially projects. •We are hopeful for a speedy conclusion to these discussions, culminating in trade and investment delegations from the afore-mentioned countries during ZITF 2019. •Local interest in the show has also been high, particularly from enterprises who wish to use the event as a showcase for home-grown industrial and technology solutions. •New market players, the likes of Cassava Smart- ech, are viewing ZITF 2019 as an appropriate plat- form to advance their mandate to use digital solu- tions to drive socio-economic development. •As the country continues on its sustainable in- dustrial development agenda, ZITF 2019 will be an ideal platform for individuals, companies and communities with bankable investment projects to showcase them to potential investors and partners. •Particular emphasis has been placed on previ- ously excluded economic groups with a number of corporates and organisations sponsoring exhibits by women- and youth-owned SMEs. One such organi- sation is Homelink which will host 140 women in SME business on their stand. •ZITF 2019 is set to live up to industry’s expec- tations for productive engagements, beneficial in- sights and invaluable networking opportunities. •The three exclusive business days, that is 23-25 April, will see ZITF host the following concurrent activities. •24 April — ZITF International Business Con- ference hosted by ZITF in conjunction with the National Economic Consultative Forum this year’s programme will focus on addressing issues of in- Page S2 | February 14-20 2019 MINING SPECIAL FEATURE The Financial Gazette Viable oil, gas deposits in Zim: Invictus

URING the fourth quarter of 2018, In- During the quarter the company commenced victus Energy Limited made significant reprocessing the 2D seismic data which was tran- Dprogress in the Cabora Bassa Project scribed from the field tapes located at the Zimba- work programme, in Mzarabani. bwe Geological Survey in Harare. The company announced its maiden prospec- The early results from this exercise are ex- tive resource estimate for the Cabora Bassa Proj- tremely encouraging and are providing a signifi- ect, which is 80 percent owned and operated by cant improvement in the data quality and seismic Invictus. imaging of the subsurface. The reprocessing exer- Cabora is a world-class conventional explo- cise, which encompasses the entire Cabora Bassa ration prospect with the potential for substantial basin, is expected to be completed around the end resource expansion. of the March quarter and interim results will be The fact that Invictus has secured a dominant released during the quarter. acreage position in the broader basin that encom- Following this, the seismic dataset will be re- passes the Mzarabani Prospect cannot be under- interpreted in preparation for the quantification of stated, given it is the largest seismically defined, additional prospectivity and an update to the in- undrilled hydrocarbon structure in onshore Afri- dependent prospective resource for the entire SG ca. 4571 area. According to Invictus Energy’s December The company also completed the aeromagnet- quarter update released last month, which pro- ic data reprocessing, which identified numerous vides some details regarding progress made in the leads and play types in addition to the Mzarabani last three months, the estimate was prepared by structure and will be incorporated to the seis- Netherland, Sewell and Associates, Inc. (NSAI), a mic interpretation. The company also acquired worldwide leader of petroleum property analysis additional source rock samples from outcrops to industry and financial organisations and gov- located at the western edge of the Cabora Bassa ernment agencies. NSAI concluded that Mzara- basin. These samples will be analysed an incorpo- bani Prospect contains 3,9 Tcf (trillion cubic stan- rated into an updated basin model. Through the dard feet) of natural gas and 181 mmbbl (million company’s continued geological and geophysi- barrels) of condensate; totalling 850 mmboe (mil- cal studies and results it has received significant lion barrels of oil equivalent) prospective resource industry interest following the roadshows and (gross mean unrisked basis) in the primary target conferences over the last several months ahead (Upper Angwa Alternations Member) alone. of the planned marketing programme to attract The independent estimate confirms the Mzara- a farm-out partner. This process is expected to bani Prospect as the largest undrilled seismically commence following the update to the indepen- defined structure in onshore Africa and places dent prospective resource estimate for SG 457. us in giant scale field potential. This estimate ex- The Cabora Bassa Project encompasses the cludes the additional prospective horizons under Mzarabani Prospect, a multi-TCF conventional closure within the Mzarabani anticline structure gas-condensate target which is potentially the (Forest, Pebbly Arkose and Lower Angwa hori- largest, undrilled seismically defined structure zons) and further leads identified within the SG Mzarabani Prospect - Upper Angwa independent prospective resource estimate. onshore Africa. The prospect is defined by a ro- 4571 area. This additional potential will benefit bust dataset acquired by Mobil in the early 1990s from the ongoing 2D seismic reprocessing and terial prospective resources to the Cabora Bassa this additional potential following the completion that includes seismic, gravity, aeromagnetic and interpretation work and is expected to add ma- Project. The company will provide estimates of of the seismic reprocessing exercise. geochemical data. The Financial Gazette MINING SPECIAL FEATURE February 14-20 | Page S3 Mining potential to attract $12bln direct investments HE World Bank, states that Zimbabwe has enormous T potential given its generous endowment of natural resources, an existing stock of public infra- structure, and comparatively well skilled labour force, the State of the Mining Industry (Zimbabwe) prepared by Terra Studio said. Released in November 2018, the report realising this potential would require prompt action to correct fiscal policies, re-stabilise the monetary system, and resolve arrears to international lenders that would allow for a resumption of development financing. It will also require the renewal of capac- ity in the public sector and invest- ment reforms. “At this time, Zimbabwe is open for business and is set on rapidly government is fully committed to ditions for the sector’s growth. er role through mineral growing its economy with mining create an enabling environment “Mineral export receipts of $2,5 beneficiation/value addition, investors being key players. Zim- for investors,” the report said.. billion are projected for 2018, up procurement and other in- babwe offers truly a once in a life- Zimbabwe’s is on the path to from $2,3 billion in 2017.The min- ter-sectorial linkages. time opportunity. The country’s being one of the leading mining in- ing industry contributes around 12 Zimbabwe’s Minister of 800 mines have capacity to earn vestment destinations in the world. percent of gross domestic prod- Mines and Mine Develop- $18 billion per annum, but were “Zimbabwe’s mining sector uct and 68 percent of Zimba- ment, Winston Chitando be- only turning out about $2 billion has great potential for growth bwe’s total export receipts.” lieves the country has “the annually since 2009. with the potential to attract $12 The mining industry remains potential to actually account “This represents about a tenth billion direct investment over the key to the long-term, sustainable for 20 percent of global de- of the sector’s full potential and next five years. The government growth of the economy. In the mand when all known lithium translates to an incredible op- is committed to creating mutu- future, the mining sector is en- resources are being exploit- portunity for investors, and the ally beneficial policies and con- visaged to play an even great- ed.”

Benchmark for quality and innovation around the world. Great fuel economy and exceptional uptime.

Full range of genuine spares and parts are also available and with workshops in Harare and Bulawayo, we will make sure you achieve the highest up time and productivity.

Email: [email protected] 30001 Dagenham Rd, Willowvale, Harare Tel: (242) 621551-3 Cell: +263 772 278 134 Page S4 | February 14-20 2019 MINING SPECIAL FEATURE The Financial Gazette New Scania tippers for gold mining

UST last year Scanlink (PVT) Ltd, the agent is derived from transportation alone, so efficiency of for all Scania vehicles in Zimbabwe, sold four vehicles is a primary focus. Jof Scania’s latest heavy tippers to R. Davis Mike Davis, managing director of R. Davis and Co, and Co to do the heavy lifting on a gold mine in said: “The Scania tippers are currently doing heavy Kadoma. hauling at the Cam and Motor Gold Mine, operated The four tippers are the latest models from by Rio Zim in Eiffel Flats, near Kadoma. We are more Scania and the only models of their kind current- than pleased with their performance to date and have ly in Zimbabwe. The tippers have been designed experienced a better turnaround time cycle and greater to make the tough movement of mining ore from fuel efficiency, with these new vehicles.” quarry to processing a lot easier. Scania have taken 125 years of experience in trans- “Scania understands that mining conditions can portation and vehicle manufacturing and put it into the push both man and machinery to the limit, espe- innovative design of these new heavy tippers, while cially when taking into consideration that millions ensuring that they offer comprehensive transport solu- of tonnes of ore have to be shifted regardless of the tions required to support vehicles operating in the de- distance to be travelled or the weather conditions.” manding sector of mining. On average 30 percent of the total mining cost “The latest Scania heavy tippers are tough and the e new Scania tippers perfect partner for any kind of mining environment. These vehicles have excellent equipment-to-payload ratio and have greatly improved technical availability. Scania Tippers are specially developed for optimised performance in the harshest conditions, particularly those found in mining environments, so they are per- fectly suited for the difficult task,” explains Scanlink managing director, Daniel Perlman. R. Davis and Co. have 18 ADTs (Articulated Dump Trucks), eight Scania G410 Rigid Tippers and another two older Scania Rigid tippers on hire, that make up the company’s total mining fleet. Currently, only the eight Scania tippers and two Bell B35 ADTs are op- erating at the Cam and Motor Gold Mine. Four of the Scania vehicles have been operating since June 2017 and the additional four new Scania tippers since Au- gust 2018. Claudius Nhongonhema, R. Davis and Co mine manager on site goes on to say: “The Scania trucks are currently hauling ore 1.6 km to the plant out of a pit depth of 50 metres and hauling waste to the dump, a haul of 1.4km and a climb of 70 metres. The perfor- mance from the vehicles has been better than expected. We are currently moving 32.4m3 per hour of product on the older Scania trucks and 33.75m3 per hour of product on the new tippers. The vehicles run two shifts per day.” Looking at all the heavy duty vehicles the most no- ticeable improvement has been in fuel consumption which can vary from 7.75-8.27 litres per hour on the Scania tippers compared with 18 litres per hour with the B35 ADTs. “The up-time we have experienced with the Scania trucks has been excellent. The trucks, that have been in operation since June 2017, have done between 3 500 and 4 000 hours and the only breakdown has been a leaking radiator hose on one of the trucks and this was a very simple repair which Scanlink, who sell and sup- port the Scania trucks in Zimbabwe, attended to time- ously and efficiently and under warranty,” adds Davis. In addition, Scanlink offered R. Davis and Co. qual- ity after sales service. In an instant where there were issues with slow tipping speeds on the first four Scania trucks, Scanlink together with bodybuilders, Benla in Pretoria, South Africa, addressed this issue and con- firmed that the hydraulic pumps were under specifica- tion for the work required and replaced them all at no cost to R. Davis and Co. An effective solution for the tipping speed issue was implemented in record time. “We have a unique opportunity on this mine to compare the new Scania tipper design to the older Scania tipper design. The new tippers are carrying an additional 1.3 m3 per load, but more importantly the cycle time is much improved, the older tippers took 55 seconds on average after the hydraulic pump upgrade and the new tippers with their twin hydraulic rams can do a tip and return cycle in 40 seconds which is as quick as our B35 ADT’s,” says Davis. There are only a few gold mining operations in Zimbabwe that employ mining tippers for haulage duty from the quarry face to the processing plant. R. Davis and Co. made the decision based on the excel- lent fuel consumption it experienced on two older Sca- nia G410 tippers the company was hiring to supple- ment the ADT fleet when it first started working on the Cam and Motor Operation. In conjunction with the fact that the trucks are reliable, they also have a high avail- ability over the life of the machine and are proving to be cost effective. Davis concludes by saying, “The Scania tippers are performing well, the productivity is excellent and op- erational costs are just over 50 percent of the costs of operating the B35 ADTs, so we have lower running costs and much lower down time. We will be looking at acquiring another four Scania tippers this year.” For more information on all Scania vehicles and the services provided by Scanlink in Zimbabwe visit www.scanlink.co.zw The Financial Gazette MINING SPECIAL FEATURE February 14-20 | Page S5 Arcadia, Africa’s leading lithium project — Prospect Resources

USTRALIA Stock Exchange (ASX) be managed by Prospect Lithium Zimbabwe, is listed Prospect Resources says its Arca- scheduled to be completed in the third quarter of Adia Lithium project, was well positioned 2020. globally in terms of size and grade to become a “This DFS represents a significant milestone key global player in the lithium market. for Prospect as we transition into development. In the Quarterly Activity Report three months We are excited by the opportunity to capitalise ended December 31, 2018, the statement shows on the strong fundamentals of the lithium mar- that the December 2018 quarter has been a high- ket, initially through the production of lithium ly productive for Prospect as the company fo- concentrates. Based on the mine economics and cused on advancing the Arcadia Lithium Project financial strength of the project, we are moving through the delivery of a Definitive Feasibility swiftly to finance, develop and commence pro- Study (DFS), and negotiated terms to increase duction at Arcadia,” he said. Prospect’s ownership in the Project to 87 percent. During the Quarter, Prospect successfully The results confirm the Project’s strong finan- negotiated terms to increase its net ownership cial and geological merits, positioning the Com- in Arcadia to 87 percent by reaching condition- pany to be a leading producer of low iron lithium al agreement to purchase Farvic Consolidated concentrates (Petalite) for supply to the glass Mines Pvt Ltd’s (Farvic) 17 percent. and ceramics industry and battery specification The Arcadia Lithium project, located 38 ki- concentrates for supply to the battery markets lometres east of Harare, has proven capacity to (Spodumene). generate nearly $3 billion in export revenue from Prospect Resources managing director Sam an investment of $165 million. Hosack said: “The completion of the successful Zimbabwe’s mining sector has great potential Definitive Feasibility Study on a base case of a for growth with the potential to attract $12 bil- 2.4 Mtpa development of the Arcadia Lithium lion direct investment over the next five years. Project is a great achievement. The DFS results Prospect Resources was also announced the position the Company to become a key player in winner of the 2019 Investment Battlefield at the the global lithium market.” Mining Indaba in South Africa for its lithium “The successful finalisation of this DFS is a The successful DFS provides a compelling signed. project in Zimbabwe. testament to the strength of the Prospect owner’s basis for the Company to drive towards complet- Sinomine has the technical and financial re- Prospect Resources was selected as the most team. A vast amount of work has been contrib- ing additional project off take arrangements, in sources to help Prospect fast track the develop- promising of 22 junior mining companies who uted to this DFS and validates my belief that addition to its existing off take agreement with ment of Arcadia. participated in the battlefield, which included Arcadia is Africa’s leading lithium development Sinomine Resource Exploration, an off take The company is also in the process of secur- explorers and developers in battery metals, bulk project with respect to its scale, grade, econom- agreement for approximately 30 percent of an- ing project financing in anticipation of construc- and base metals, precious metals, and energy ics and team.” nual production over mines first seven years was tion. Construction and mine development, to minerals. Page S6 | February 14-20 2019 MINING SPECIAL FEATURE The Financial Gazette Bulwark offers tailored transport solutions

INING is an important industry in Zim- babwe, it is highly specialised. The Mtransport and equipment moving within and around a mine is also highly specialised and that is why it is important to bring the transport experts in. Bulwark transport is a specialised and ded- icated transport division of Unifreight Africa Limited, a well-known brand name within the heavy haulage vehicle industry and can boast be- ing the wheels for many divisions on a number of mines throughout the country over the past 70 years. Ndumiso Mpofu, operations director for Bul- wark said: “We provide vehicles for any mine related task. This comes with full repair and maintenance services, the vehicles can belong to Bulwark or the mine depending on what the mine requirements are, but the most important benefit of engaging Bulwark transport services is that it allows the mine to release capital to focus on their core business and let Bulwark take con- trol of every aspect of the transport service. Over the last 73 years we have worked within various mines throughout Zimbabwe, and in each case, we have tailored the transport requirement, offer- ing the finest, most cost-effective solution. Dedicated transportation of manufacturing and FMCG freight. We currently manage passenger transport for one of Zimbabwe’s mines; we assist with mov- ing staff from various sites on the mine to their managed at any of the eight mechanical work- partnering with them to streamline their process- vehicles even though they are Bulwark managed, residential compounds, according to the mining shops around the country, including backup staff, es. Our experienced team takes on the purchas- maintaining corporate image. schedule. The vehicles are managed and serviced this ensures that any downtime is kept to a mini- ing, maintenance and management of the compa- Bulwark can guarantee a smooth, efficient through Bulwark. This ensures the mine can con- mum. Safety of equipment and personal is of pri- ny branded fleet, freeing up precious time for the service. It has decades of experience in the local centrate on the business of mining and let us, the mary concern and Bulwark has tried and tested business that needs to be done.” transport industry and experience across borders. transport experts take care of their staff move- procedures put in place that enhances the safe The Bulwark system is straight forward and It has worked in ever industry; namely fuel and ment. Our offering does not stop at passenger loading, transportation and delivery of all spe- can relieve the burden of transport management chemicals, dedicated manufacturing and FMCG transport; we can provide specialist vehicles for cialised products that are carried by their fleet. and maintenance. Bulwark purchase the fleet fleet, construction, agriculture, passenger move- all mining duties, including tippers, dumpers and Rob Kuipers, CEO of Unifreight Africa tailored to requirements and needs. Time and ment and most prominently mining. dozers.” Limited said: “Bulwark offers the full package, energy consuming fleet related burdens, like Partnering with a business such as Bulwark, Through Unifreight Africa Limited’s vast de- a dedicated, tailor made, customised transport absenteeism, unreliability and wage administra- that can expertly assist with fleet management, pot network, one of the vital areas in transport, solution, not only for mines, for most industries. tion are relieved by Bulwark fleet management. has many advantages, get in touch with Bulwark the repair and maintenance of the fleet, can be We find a way to fit in with their requirements, Corporate branding is maintained on the fleet of today, www.bulwark.co.zw The Financial Gazette February 14-20 2019 | Page S7

Godfrey Dube, Standards Association of Hygienic Services attains Zimbabwe, head of marketing and business devel- opment, hands ISO 9001-2015 certification over the ISO cer- OUNDED in 1955, Hygienic Services is a pioneer in the In respect of our chemicals and materials supplies, we pro- tificate to Francis cleaning industry. Over the years, the company has grown cure from local companies and supplement with imports on Mutyavaviri, and consolidated its position as a leading service provider items that are specialised or unavailable in Zimbabwe. We insist Hygienic Ser- F vices managing relied on by its diverse base of clients and respected by its peers on high quality environmentally friendly materials. For the sup- in the industry. port of our suppliers we are truly grateful. director. Our services are anchored on providing hygiene solutions both in the workplace and home environments. These include: l Contract cleaning l Once off cleaning l Window and carpet cleaning l Pest control services l Janitorial Supplies l Sanitary Disposal Services l Mobile Toilet Hire We deliver these services across the length and breadth of Zimbabwe. To be effective in doing so, we have our head office in Newlands, Harare, a regional office in Bulawayo and satellite representation in Gweru, Masvingo and Chinhoyi. This way, we are able to supervise our work and cut response time to client issues to within 24 hours. Our cleaning staff are proud to put on the yellow and navy uniform. Some have served the company for more than 20 years, others in excess of 30. Such long service is a reflection of Hygienic Services attains Hygienic Services respect for its staff’s welfare, training, health and safety and general well-being. We are indebted to our clients who have supported us over ISO 9001:2015 Certication!! the years. They are from all sectors of the economy ― retail, industry, commerce, government, parastatal, NGO, financial services, pension funds and many domestic clients. We strongly believe that our values of Consistency, Reliability, Honesty and Hygienic Services, your cleaning partner, is proud to Customer Focus, have been the adhesive bonding us with our clients. The standards certification, with its emphasis on con- announce the receiving of the ISO 9001:2015 tinuous improvement, will guarantee value and hygiene to our clients’ employees and customers. International Quality Standards Certication. One of our strengths is flexibility and adaptability. Apart from our standards service provision, some clients have special needs which we readily attend to. These could be access and start times, uniforms to match their corporate colours, security, We take pride in being one of the very few companies OHS procedures and drills, periodic reviews and so forth. We in Zimbabwe to be certied for International Standards. are always ready to accommodate the needs of our clients. Value of outsourcing With one of our key values being customer focus, our N the area of health and hygiene, many companies have emphasis will be continuous improvement. This will wondered whether to outsource or to do it in-house. While enable us to tailor our services to satisfy your needs. Icost has been the main consideration by proponents of in- house cleaning the real issue should be about the health and hygiene of your staff. In part, cleaning service providers have not articulated their cause sufficiently. Health is a matter of life and death. Think For all your cleaning back on the recent cholera epidemic that visited our homes, neighbourhoods, communities and workplaces! Basic sani- requirements and ood damage, tation practices could have saved many lives. This is an area where cleaning companies play a key role in mitigating con- tamination. call Hygienic Services Here are six reasons outsourcing cleaning services is a better solution: 1) Cost-effective ― You actually save money because an CONTRACT CLEANING TEA/KITCHEN SERVICES expert cleaning staff can get more done in less time. They pro- cure equipment, supplies and refillable goods like toilet paper, PEST CONTROL GARDEN MAINTENANCE hand soap etc. cheaper than you can. You also save on recruit- ing, screening, hiring, training and other employee costs. All ONCE OFF CLEANING JANITORIAL SERVICES these become the responsibility of your cleaning contractor 2) Flexibility ― Your service provider can adjust to accom- CARPET AND FURNITURE CLEANING MOBILE TOILET HIRE modate your changing needs quite easily-whether adding peo- ple for peak times, yearly maintenance or reductions. 3) Availability of staff ― The issue of holidays, leave of ab- SANITARY BIN SERVICES BUILDERS CLEAN UP sence (sick leave, compassionate leave) is eliminated. 4) Improve focus ― Outsourcing cleaning services allows you time to concentrate on your company objectives and re- Indeed Hygiene Begins Here!! duce the time devoted to areas outside your expertise. 5)Standards ― Professional cleaning companies stay up to date with the best cleaning tools and techniques. They spend HEAD OFFICE BULAWAYO OFFICE time and money on safety training and follow high cleanliness 1 Argyll Drive Newlands standards 11B Fort Street 6) Transfer of liability and insurance cost ― Due to the Harare, Zimbabwe Bulawayo nature of work, there are specific liabilities associated with the cleaning staff. The cleaning company will insure their employ- +263 4 776 529/31/37 Zimbabwe ees against injury, accidental breakages and even third party +263 8677 111 905 liability. 09 889193 The key is to contract a professional cleaning services com- [email protected] pany. Such a company must be of good standing, meeting its obligations, respecting its trade and upholding high standards. Hygienic Services P/L has demonstrated such a standing. Apart from the many years in the industry, achieving ISO cer- tification is a long term commitment to professionalism and offering outsourced cleaning services of the highest standard. Page S8 | February 14-20 2019 The Financial Gazette Holiday Resorts Feature

Holiday Inn Mutare refurbishments N Zimbabwe’s border with Mozambique the Indian Ocean and is home to the recently re- seekers. Holiday Inn Mutare is within an easy lies a verdant valley with what many say branded Holiday Inn Mutare. drive of the city and close to some of the most Ois the country’s most picturesque city — The hotel’s well appointed rooms and excel- spectacular tourist attractions such as Mount In- Mutare. lent conference facilities make it ideal for a mix yangani; the Hot Springs Resort, the magnifi cent It is Zimbabwe’s gateway to the east and to of business travellers and adventurous leisure Bvumba Mountains and the Botanical Gardens.

Zim Newspaper_185mmx270mm_v4_PRINT.pdf 1 2019/02/13 1:08 PM

An Experience to Remember

C

M

Y

CM

MY

CY

CMY

K

From the mighty Victoria Falls, to crisp mountain air in Nyanga, to watching wildlife up close in Hwange - we have the perfect blend of facilities to keep young and old entertained, engaged and in love with the Zimbabwe landscape

Have you booked your stay yet?

www.LegacyHotels.com www.LegacyLifestyle.co.za