‘IncEnTIvISE ExporTErS To BooST ZIm Economy’: p3 News Worth Knowing High prospects for private equity: P11 March 18-24 2021 ESTABLISHED 1969 @ FingazLive www.fingaz.co.zw Facebook: The Financial Gazette Z$260 ZSE Report TRADING on the Zimbabwe Stock Exchange (ZSE) continued to weaken on Wednesday. However, the small caps Business continued with the bullrun adding 1207,44 points, the Mining Index also gained 80,48 points. The total volume traded was 4,9 million shares worth $59,8 million. Market breadth remained bearish following 20 de- cliners against 12 advancers with Cafca at 20 percent and General Beltings 13,16 per- cent leading the advancers and the decliners optimism respectively. The biggest trade values were in Natfoods at $26,7 million and Nampak at $11,9 million. There were no trades on the VFEX Currencies (Bloomberg) % change ◀ USD:ZAR 14,8846 0,01 ◀ EUR:USD 1,1910 0,06 ◀ GBP:USD 1,3902 0,08 ◀ surges as USD: JPY 109,1700 0,16 Stock Markets ZSE All Share 4,263,36 2,02 ◀ 2,440,65 Top 10 ◀ 2,87 66,615.55 1,0 JSE ◀ FTSE 100 6,769.84 ◀ 0,50 Dow 32,825.95 0,39 ◀ Commodities Gold 1,729,05 0,14 Zim heals ◀ Tabitha mutenga ers who said this year’s good agriculture Platinum 1,199,00 1,42 ◀ Associate Editor season would likely anchor significant Brent Oil 67,48 1,33 gross domestic product (GDP) growth. ◀ Grains ( ) Grain SA ◀ USINESS is getting more up- “Our economy is expecting strong White Maize ZAR 3,208 2,00 ◀ beat on the back of the country’s growth of 7,4 percent despite the impact Soya ZAR 8,072 10,00 stabilising economy, this year’s of Covid-19 ... the measured optimism is Wheat ZAR 5,111 27,00 B ◀ good agricultural season and the fact based on the expected significant growth that Covid-19 finally looks like it’s under in agricultural output. US$640mln allotted control. “The composite plan of action drawn Captains of industry who spoke to The in the Agriculture and Food Systems on forex auction Financial Gazette this week said 2021 Transformation Strategy launched last THE Reserve Bank of Zimba- promised to be “a good year for busi- year by the government depicts how the bwe has allotted US$640 million ness” — especially because of the ex- sector can contribute to ... the revival of to different companies under the pected rebound of the agricultural sector, the economy. foreign currency auction since which would have positive ripple effects “It (agriculture) is an integral part of the system was launched last on the whole economy. our national development agenda. The June, official data has shown. This comes as the manufacturing sec- good season will mean increases in im- Cooking oil producers Can- tor’s capacity utilisation levels are seen port substitution, and in exports value grow, Surface Wilmar, Willow- reaching 61 percent by the end of the year addition and beneficiation in other down- ton and United Refineries were — on the back of improving production stream industries. among the top beneficiaries, re- performances that have been triggered by “This can boost our foreign currency ceiving a combined US$32 mil- lion. the country’s much-lauded foreign cur- auction system, which has brought about Airports company of Zimbabwe (AcZ) acting chief executive, rency auction system. the stability in inflationary pressures The auction has given local Tawanda Gusha, says expansion of the robert Gabriel mugabe businesses a new lease of life and Zimbabwe National Chamber of through price discovery,” Manzungu International Airport is progressing well, with 46 percent of the work halted depreciation of the ZWL$. Commerce (ZNCC) president, Tinashe said. complete. The AcZ was unbundled from the civil Aviation Authority of Zimbabwe, in 2018. See story on p6 This week, the domestic unit Manzungu, was among the business lead- To page 2 traded at 83.98 to the US$. Page 2 | March 18-24 2021 The Financial Gazette News Business optimism surges as Zim heals From Page 1 sector’s expected recovery was “With more good seasons, “good news” for the economy, I have no doubt that we can especially agro-based industries achieve a US$8 billion agricul- which were heavily reliant on ture economy by 2025,” he add- output from farms for raw ma- ed. terials. Industrialist Davison Norupi- “As business, especially man- ri also said the anticipated good ufacturing, we depend a lot on agricultural season would have the agricultural sector for raw a double positive impact on the materials. When that sector’s local economy, which had been production volumes increase, facing severe challenges in re- then the rest of the supply chain cent years. thrives. Business also thrives on “It means, the government well-fed citizens,” she said. will save on the more than Economist Pheneas Kadenge US$600 million that it has been said a good agricultural season using to import maize, and also it was crucial for both the econo- means an increase in exports — my generally and ordinary peo- bringing more foreign currency ple. into the country. “Whether the recovery is sus- “Foreign currency will also tainable is another issue, as this be saved as maize imports will is merely because of good rains. be reduced and the money can be It may, however, create posi- used to stimulate other sectors. tivity which spills over into the “Capacity utilisation will cer- economy as a whole. tainly go up this year as demand “The food industry should see In Delta Beverages’ fi nancial bill,” he said. then rampant parallel foreign curren- emanating from more disposable increased production capacity. results, the group’s chief execu- On its part, the Meikles Group said cy market. incomes will create demand,” But again, remember the econ- tive Pearson Gowero also said a the good rains had put its agricultural “When the survey was launched Norupiri told The Financial Ga- omy needs structural changes to good agricultural season would units on a likely growth trajectory. last year, there was a sense of disillu- zette. create a new growth trajectory bring many benefi ts to business “The good rains received this sionment …but we are beginning to “It is a good year for business and that is the aim of NDS1 (the and the country. season bode well for the group’s see light at the end of the tunnel in and industry as a whole because government’s National Develop- “The anticipated good agri- agriculture segment and growth in our economy. The foreign currency of the expected bumper harvest,” ment Strategy). cultural season is expected to export crops is expected in the forth- auction system has brought a remark- he added. “In other words, we shall see benefi t the economy by increas- coming fi nancial year. Our dams are able positive result. Foreign curren- Businesswoman and former a temporary relief, but not nec- ing disposable incomes and im- full and power, which is essential for cy availability … is enabling us to ZNCC president, Marah Hativa- essarily permanent change,” proved food supplies, resulting irrigation and estate factories, will be increase production,” she said at the gone, also said the agricultural Kadenge said. in net savings on the food import available not only from traditional launch of the CZI report. sources, but also from the solar proj- CZI chief economist, Tafadzwa ects,” Meikles company secretary, Bandama, said as of February 2021, Thabani Mpofu, said in a recent trad- more than 70 percent of the foreign ing update. currency which had been allotted at At the same time, data released the forex auctions had gone towards last week showed that Zimbabwe had the importation of raw materials, ma- planted maize enough to produce 2,8 chinery and equipment. million tonnes this year — compared “Projected capacity utilisation in to 900 000 tonnes last season. The 2021 is expected to increase to 61 data also indicated that the country percent ... It is encouraging to note would harvest 160 000 tonnes of soya that business can now access foreign beans and 200 million kilogrammes currency through the formal chan- of tobacco — one of Zimbabwe’s nels, although it’s now taking longer most important exports. to access foreign exchange. Certainty Authorities have also said that the and predictability have been intro- anticipated good agricultural season duced in the economy. The auction will likely slash Zimbabwe’s food is fostering some measure of confi - import bill. dence and trust in the policy making The food import bill rose signifi - and implementation process,” she cantly in 2020 to US$591,6 million said. — a 204 percent increase form the RBZ governor John Mangudya US$194,3 million registered in 2019, has also said things are going to get after domestic stocks for maize, better this year on the back of an an- wheat and rice failed to meet demand. ticipated bumper agricultural season. Maize imports rose sharply from Addressing a well-supported Dai- US$26,7 million in 2019 to US$297,8 ly News webinar last month, which million in 2020 — refl ecting the im- analysed the central bank’s latest pact of two consecutive droughts. monetary policy statement, Man- This comes as business was al- gudya said the good agricultural sea- ready bullish following the recent son would see the government saving unveiling of the Confederation of signifi cant sums of foreign currency Zimbabwe Industries’ (CZI) 2020 — which resources would be chan- Manufacturing Survey, which proj- nelled to social development. ects capacity utilisation to reach 61 “We are banking on a favourable percent this year.