HIPPO SEEKS ZSE RELISTING : Page 3 $16 News Worth Knowing Foreign investors chase OM stocks: Page 7 September 5 - 11 2019 ESTABLISHED 1969 @ FingazLive www.fi ngaz.co.zw Facebook: The Financial Gazette ZSE Report The All Share Index was fl at on Wednesday at 166,1 points. Economy: BNC added 9,5 percent to close at $0,1150, while OK Zimbabwe gained 4,2 percent to end at $0,3136 and PPC traded 2,5 percent higher at $2,05. The Industrial Index was down by 0,1 percent to close at 552,4 points, while the Top 10 Index was down by 0,2 percent at 148,8 points. The Minings Index gained No light at 2,4 percent to close at 268,0 points. Currencies (Bloomberg) % change USD:ZAR 14,8323 1,75 ◀ ◀ EUR:USD 1,1028 0,49 ◀ GBP:USD 1,2192 0,92 ◀ USD: JPY 106,2300 0,27 Stock Markets ZSE (All Share) 166,1 0,0 ◀ ZSE (Minings) 268,00 2.4 ◀ JSE 12 891.00 1.11 the end of ◀ FTSE 100 7 2987,89 0.42 ◀ 0,67 Dow 26 293,11 Commodities Gold 1 545.82 1.28 ◀ Platinum 980.00 2.25 ◀◀ Brent Oil 60.39 3.66 Grains (Grain SA) White Maize ZAR 2 072,71 ◀ 3.5 the tunnel Soya ZAR 4 738,98 ◀ 1.3 Tabitha Mutenga and Paul Nyakazeya and pricing,” Macheka said. Wheat ZAR 2 474,63 ◀ 4.4 Staff Writers “The Zimbabwean economy will be experiencing hyper-infl ationary conditions, lower production output USINESS expects Zimbabwe’s economy to and restrained economic growth — and living standards NMBZ posts worsen in the coming months due to rising pro- will keep deteriorating in the next six months,” he said. Bduction costs, skyrocketing infl ation and a lack “The Transitional Stabilisation Programme (TSP) $57m profit of comprehensive government measures to deal with benchmarks ... are still lagging behind. So, making any the country’s challenges. assumption that the remaining six months will bring a NMBZ Holdings (NMBZ) yester- Tamuka Macheka, the Zimbabwe National Cham- sudden economic transformation will be an econom- day reported a $57,4 million profi t ber of Commerce president, said the country’s ongoing ic hallucination,” economist Paddington Masamha after tax for the half year ended foreign currency challenges, as well as the prevailing chipped in. June 30, 2019 – up 532 percent confi dence defi cit were some of the other symptoms of He observed further that the government was also from prior comparable period. poor economic fundamentals which needed to be ad- struggling to attract fresh capital to jump-start the The dual-listed fi nancial ser- dressed urgently. shrinking economy. Alex Chishiri, Barker McCormac Ogilvy chief opera- vices group attributed the perfor- “Policy consistency is key for a business-friendly “Investors are looking at Zimbabwe with an eagle tions offi cer, is confi dent that the company will continue mance to an increase in interest environment,” he told The Financial Gazette this week, eye, waiting for real fundamentals to change, not neces- to evolve and keep up with the ever-changing trends in income, and fees and commission noting further that production was also being affected sarily the gospel that we are preaching,” Masamha said. the advertising industry. Zimbabwe’s advertising sector revenue. adversely by the continuing unavailability of fuel and “There is no propaganda around issues of foreign has not been spared from the country’s economic chal- During the period under re- electricity. investments, as certain fundamentals have to change. lenges, which have resulted in massive company closures. view, total comprehensive income “All this has implications on the cost of production To Page 2 Picture by Freedom Mashava surged to $61m from $9m. Page 2 | September 5 - 11 2019 The Financial Gazette National News Economy: No light at the end of the tunnel FROM P1 an initial 2,5 percent growth projection. as having further eroded the public’s confi - The fact that we are still in a dry season is evidence Kaduwo also said government’s failure to dence in national policies. Zimbabwe is well-known inter- enough that nothing has changed and that investors do deal with stagfl ation — marked by high un- Keith Nicholson, Nampak Zimbabwe’s nationally for overnight policy not trust the positive gospel we are preaching,” he said. employment, soaring infl ation and depressed chief executive, said the economy was not changes. As such, no one wants to “Zimbabwe is well-known internationally for over- aggregate demand — had resulted in low in- only facing strong headwinds, but that the invest their money in an economy night policy changes. As such, no one wants to invest vestor and business confi dence. government’s decision to ban the use of the largely saddled with policy incon- their money in an economy largely saddled with policy “Instead of squeezing business and con- multi-currencies would also further hurt inconsistencies, lack of policy clarity, excessive reg- straining aggregate demand, which has business. sistencies, lack of policy clarity, ex- ulations and command economic management strate- fallen by as much as 47 percent, “It is unlikely that any mean- cessive regulations and command gies,” Masamha added. government should work on ingful relief will be forthcom- economic management strategies This comes as Finance minister Mthuli Ncube has addressing ineffi cien- ing to the manufacturing recently suggested that his austerity measures will cies... (that) are creat- sector until the critical Economist Paddington Masamha start bearing fruit by year-end — insisting that gov- ing economic prob- constraints of foreign ernment would focus on “production, prosperity and lems,” he said. exchange and power creation of new jobs” next year. “These ineffi - supply are eased,” he Since his appointment last year, the ex-banker has ciencies are all a re- said. growth plans. introduced a raft of reforms — including the contro- sult of weak insti- Dairibord “The supply of electricity, water and versial two percent transaction tax, the separation of tutions,” Kaduwo Holdings Lim- foreign currency is expected to remain con- RTGS and foreign currency accounts, and the liberali- added. ited chairman strained,” he added. sation of the procurement of fuel — all of which were At the same Josphat Sachi- Samuel Matsekete, First Capital Bank’s aimed at re-balancing the economy. time, the re-intro- konye has also managing director, has said Zimbabwe’s However, the measures have mostly left a trail of duction of a local bemoaned the “macroeconomic environment is expected to destruction, with both ordinary people and businesses currency, after 10 fact that the remain in a transitional mode into the fore- reeling from the ever deteriorating economic environ- years — and without commercial seeable future”. ment. an improvement in environment But former MDC legislator and econ- “At the moment, the economy is facing a ‘low ani- fundamental econom- remains frag- omist Eddie Cross feels Ncube’s policies mal spirit’— a situation where investors and consum- ic factors — is ile and uncertain, have positioned the country on a sustainable ers are unwilling to invest and spend respectively in also making it diffi - growth path. the market due to uncertainty,” Tinashe Kaduwo, an- seen cult for busi- “We are on the right track. We need to other economist, said. nesses to tackle outstanding issues vigorously and As a result, even offi cial fi gures show imple- then, perhaps, we will see a return to growth that agriculture is expected to contract ment with stability in the new year,” he said. by 10,1 percent this year, from an their “State revenues are above forecast and I initial growth projection of three doubt there will be any defi cit this year, even percent — with the mining growth after the recent wage adjustment,” Cross rate now also revised downwards said. from a projected eight percent to “The export sector is now growing just 1,1 percent. signifi cantly and gold production is at The beleaguered manufac- record levels, and the balance of pay- turing sector is also not expect- ments surplus is strengthening,” he added. ed to grow this year, against Finance minister Mthuli Ncube newsdesk@fi ngaz.co.zw Daily News hosts Shiri, Chitando GRICULTURE minister Perrance Shiri and Tagwirei eyes BNC? his Mines counterpart Winston Chitando are expected to headline the Daily News Business USINESSMAN Kuda Tagwirei is precious metals”, a description that per- A quietly building an empire amid fectly fi ts ZimAlloys, a Gweru-based fer- Breakfast Forum to be held in the capital next Thurs- day. Breports that he is targeting to buy ro-chrome producer. Francis Mushaninga, the Associated Newspapers of Bindura Nickel Corporation (BNC) through This also comes as Tagwirei has been Zimbabwe general manager for sales and marketing, Zimbabwe Alloys (ZimAlloys), which he linked to a mysterious acquisition of a sig- said the event will unveil the second quarter State of recently acquired. nifi cant stake in fi nancial group, CBZ Hold- the Economy Report. This comes as BNC has said its ultimate ings. “As promised at the launch of the fi rst quarter State holding company, Asa Resources Group BNC never confi rmed the “third party” of the Economy Report, we are continuing to review (Asa) has entered into an agreement with in the previous arrangement, but it was be- key economic indicators such as infl ation, exchange a third party in relation to the disposal of lieved to be London and Johannesburg-list- rates, trade and budget performance, which are useful its 74,73 percent stake in the nickel mining ed Pan African Resources, which had tools in decision making,” he said. company. announced that it was in “exclusive nego- “Produced on a quarterly basis, this report has a Even though BNC has not confi rmed the tiations with the joint administrators of Asa.