Treasury directs ZINARA to disburse 70pc of funds for rehabilitation
1. By Tawanda Musarurwa
HARARE – The Zimbabwe
National Road Administra-
tion (ZINARA) says it is now
disbursing the greater chunk
of its funds towards periodic
road maintenance in view
of limited funds and a huge
rehabilitation backlog.
Periodic maintenance entails
re-sealing, re-gravelling and
general broader rehabilita-
tion of the country’s road
network.
ZINARA acting chief execu-
tive officer Engineer Moses
Juma said the greater chunk
of the institution’s funds
was going towards long-term
rehabilitation as opposed to
community works.
News Update as @ 1530 hours, Tuesday 21 June 2016
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Treasury directs ZINARA to disburse 70pc of funds for rehabilitation
2. “The new policy direction
guided by the Ministry of
Finance and Economic Devel-
opment is guiding ZINARA to
disburse 30 percent towards
routine maintenance works
(community works) and 70
percent for periodic mainte-
nance,” he said.
The acting CEO was speak-
ing during the launch of the
‘Road Infrastructure Develop-
ment Conference’, which will
be held in Bulawayo along-
side the Mine Entra 2016
exhibition.
The move to focus on
broader rehabilitation comes
as the parastatal is gener-
ating funds way below the
required amounts to fully
rehabilitate the country’s
road networks.
The national road devel-
opment and rehabilitation
programme under ZimAsset
requires funding of about
$5 billion over a five-year
period, which translates to
about $500 million annually.
Last year, the Ministry of
Transport and Infrastruc-
tural Development received
$6 million from ZINARA and
Treasury, a trend that has
been common over the past
few years, resulting in a
huge backlog in road mainte-
nance activities.
Board chairperson Mr Albert
Mugabe said annual collec-
tions were low against the
total road rehabilitation
requirements.
“ZINARA has a responsibil-
ity to ensure we get value
for the money that people
pay….our road network has
an estimated requirement of
over $5 billion, and ZINARA
this year is hoping to collect
$200 million.”
He said it was therefore
necessary to leverage on
the natural resources readily
available in the country to
improve the road network.
“We don’t have the money,
but we do have resources.
When you assess the constit-
uent elements of a road you
find that what you need is
filler material which makes
the sub-structure…and when
you look at all the require-
ments it is only the bitumen
which we don’t have locally.
“A safe, trafficable and effi-
cient road network is very
possible, it just requires
that we have a different
approach. Cumulatively what
we can put together can
equal the $5 billion that we
are seeking. We have been
working at this for quite
some time and next month
when we meet at Mine Entra
we want to be presenting
this,” he said.
According to the African
Development Bank (AfDB)’s
‘Infrastructure and Growth
in Zimbabwe report’ of the
country’s total road network
of nearly 90 000 kilometres,
the proportion in fair to good
condition declined from 73
percent in 1995 to only 60
percent
.●
2 news
5. By Funny Hudzerema
HARARE -Zimbabwe’s money
supply growth rate rose 12,
8 percent at the end of April
on the back of an increase in
both savings and in deposits,
latest Reserve Bank of Zim-
babwe (RBZ) figures show.
The annual broad money
supply growth rate rose from
12, 5 percent in April, the
central bank said in its latest
monthly report.
Monthly broad money supply
rose by 0,3 percent to $5
004,9 million in April 2016.
The annual growth in
broad money was largely
on account of increases in
savings at 226 percent;
demand at 21,3 percent; and
long term deposits at 18,3
percent.
Short term deposits, how-
ever, decreased by 24, 1 per-
cent during the period under
review.
On an annual basis, growth
in total banking sector credit
rose from 23, 5 percent in
March 2016, to 23, 8 percent
in April 2016.
Monthly banking sector credit
increased by 1, 5 percent to
$5 623,6 million, during the
period under review.
Credit to the private sector
recorded an annual decline
of 3,4 percent to $3 633,9
million in April 2016, from $3
762,0 million in April 2015.
On a month-on-month basis,
credit to the private sector
has remained almost the
same.
During the period under
review credit to the private
sector consisted of loans and
advances at 85,2 percent;
mortgages at 9,2 percent;
other investments at 5,2 per-
cent; bankers acceptances
at 0,3 percent, and bills dis-
counted at 0,2 percent.
The value of transactions
processed through the RTGS
system rose from $1 129,51
million in April to $1 126,74
million in May 2016.
RTGS payments constituted
82,27 percent of the total
value of transactions pro-
cessed through the NPS,
followed by mobile at 8,03
percent; point of sale (POS)
at 5,73 percent; Automated
Teller Machines (ATMs) at
3,76 percent; and cheques at
0,21 percent.
The total number of NPS
transactions stood at
5,563,099 during the week
under analysis, down from
the 5,702,979 transactions
recorded in the previous
week.●
5 news
Zim money supply up 12,8pc
8. BH24 Reporter
HARARE –State-owned mobile
telecoms operator NetOne says
it is now recording improved
daily revenues following the
introduction of a competitive
tariff on calls.
NetOne chief operating officer.
who is also the acting CEO, Mr
Brian Mutandiro told the Par-
liamentary Portfolio Committee
on Information Communication
Technology, Postal and Courier
Services that a number of
strategic changes to the com-
pany’s business model were
beginning to reflect positive
results.
“Our average cost per minute
was very low, we were getting
2 cents while other networks
were getting 12 cents profit
per call. We have moved that
to about 7 cents, which has
resulted in a reduction in
network traffic and that was
expected. It creates capacity
to launch value added prod-
ucts.
“Since the beginning of the
year our daily revenues were
averaging $250 000 a day.
Right now we are above $300
000 per day,” he said.
Mr Mutandiro was appointed as
COO earlier in February after
a restructuring exercise at the
mobile telecommunications
company that began last year.
“The quality of the network is
now better than other net-
works. We are not a cheap
network but we are a network
that offers value.
“We are also seeing lots of
opportunities in cutting costs
we are looking at energy side,
that is, cutting costs where
we have base stations that are
running with generators and
those are areas without elec-
tricity but we want to address
those issues,” he said.
“We want to launch a num-
ber of products to the market
during the second half and we
have a number of campaigns
that a lined up to grabs oppor-
tunities on the market.”
Chief finance officer Mrs Sibu-
sisiwe Ndlovu said in terms of
revenues in the first quarter
of this year, NetOne accrued
$48, 5 million, compared to
$44, 3 million the same period
last year.
Gross profit during the first
quarter increased from $29
million to $34,6 million, she
said.●
8 news
NetOne’s daily revenues improve
11. BH24 Reporter
HARARE -The country’s tobacco
producers have so far earned
$410,8 million from the sale of
140,7 million kilogrammes of
Virginia tobacco since the tobacco
selling season began on March
30, latest Tobacco Industry and
Marketing Board (TIMB) figures
show.
This is a 9 percent increase in
terms of kilogrammes sold and
an 8 percent jump in value from
the same period last year.
The 140,7 million kilogrammes
were sold at both the country’s
auction and contract floors.
The increase belies expectations
that this year tobacco output
would decline by 20 percent
due the El Nino induced drought
which affected the crop.
According to TIMB, a total of
26,8 million kgs of tobacco worth
$68,9 million has been sold at
the auction floors while 113,9
million kgs worth $341,9 million
has been sold at the contract
floors.
Generally, the majority of Zim-
babwean tobacco farmers have
opted for contract farming due to
the high costs of inputs.
During the prior comparable
period, a total of 129 million kgs
worth $379,3 million had been
sold.
Presently, the top price for the
crop at the contract floors stands
at $6, 25 per kg while at the auc-
tion floors it is at $4, 99 per kg.
The lowest price that has been
recorded so far is $0, 10 per kg.
A total of 122 355 bales have
so far been rejected due to poor
quality and poor packaging this
season, compared to the 145 056
bales rejected in the same period
last year.●
Tobacco farmers’ earnings up 8pc y-o-y
11 news
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SHOP FROM HOME / OFFICE / ANYWHERE
14. HARARE -The equities mar-
ket added to yesterday’s
gains with a 1,4 percent rise
as the mainstream indus-
trial index was up by 1.32 to
95.28 in today’s trading.
Giant beverages producer
Delta, which last week
posted a string of losses,
recovered to buoy the bourse
after adding $0,0152 to
$0,5500, while conglomerate
Innscor was also up $0,0031
to $0,1731.
Also trading in the black was
Colcom and telecoms giant
Econet which added $0,0014
and $0,0200 to $0,1646 and
$0,2200, respectively.
And CFI and Nampak were
also rose, gaining $0,0004
and $0,0007 to $0,0734 and
$0,0187, respectively.
On the downside, Old Mutual
and Barclays shed $0,0006
and $0,0018 to $2,2851 and
$0,0170, respectively.
The mining index was flat at
26.24 as Bindura, Falgold,
Hwange and RioZim remained
unchanged on previous price
levels at $0,0120, $0,0050,
$0,0300 and $0,1700 in that
order - BH24 Reporter ●
Equities market extend gains
14 zse
22. JOHANNESBURG - Anglo
American Platinum (Amp-
lats) expects its half-year
profit to fall by at least 20
percent due to weaker metal
prices, the South African
miner said on Tuesday.
Platinum prices have been
hurt by growth concerns in
China and oversupply wor-
ries which have forced firms
to abandon projects and sell
mines.
Amplats, which produces
around 40 percent of the
world's platinum group
metals, said it would make a
further announcement once
it had determined a likely
range for its headline earn-
ings per share.
Headline EPS, which strips
out certain one-off items, is
the main profit measure in
South Africa.
Shares in Amplats were lit-
tle changed at 379,09 rand,
largely in line with the blue-
chip JSE Top-40 index.
Amplats, a unit of global
mining group Anglo Amer-
ican, is focusing on newer
and more mechanised mines
and removing unprofitable
ounces following a record
five-month strike in 2014.
Amplats, along with rivals
Impala Platinum and Lon-
min, is due to start wage
talks with unions at the end
of June, when the current
deal expires.
The National Union of Mine-
workers will demand pay
increases of 20 percent per
year for the next two years
while demands from the
larger Association of Mine-
workers and Construction
Union are not yet known -
Reuters●
22
Amplats warns H1 profit to fall at least 20pc
regioNAL News
NAIROBI - Kenya's central bank
has enough foreign exchange
reserves and funds available from
an IMF standby facility to weather
any fallout from a British referen-
dum on whether to leave the
European Union, the governor said
on Tuesday.
"We think we are in a comfortable
position," Governor Patrick Njoroge
told a news conference, adding
that a British vote to leave the EU
could hurt the global economy and
Kenya would "feel the shock wave".
Kenya's foreign exchange reserves
stood at $7,6 billion on June 16,
equivalent to five months import
cover, according the central bank
figures on its website. In March,
the International Monetary Fund
approved two-year standby
facilities for Kenya worth about
$1,5 billion, which can be drawn
on if the East African nation faces
unforeseen shocks. Britons vote in
the referendum on EU membership
on Thursday- Reuters●
Kenya says has
enough forex
reserves to
weather any
Brexit fallout
26. The pound held its biggest
two-day gain versus the dol-
lar in more than seven years
as opinion polls showed
Britain’s referendum on
European Union membership
is still too close to call two
days before the vote.
Sterling advanced for a
third day as a survey of 800
people by ORB for the Daily
Telegraph had “Remain” at
53 percent and “Leave” at
46 percent among those
certain to vote, once “don’t
knows” were stripped out.
In contrast, a YouGov poll of
1,652 voters for the Times
newspaper published late on
Monday showed “Leave” at
44 percent and 42 percent
for “Remain.”
The U.K. currency has
been whipsawed before the
referendum amid concern
that a decision to leave the
world’s-biggest trading bloc
would spark market turmoil
globally. A measure of the
pound’s volatility versus the
dollar over the coming week
fell 2,2 percentage points to
37,3 percent, still remaining
well above its five-year aver-
age of 7,8 percent.
“Sterling is supported by the
recent rise in support for the
‘Remain’ camp, but if you
look at an average of recent
polls they still suggest it is
neck and neck,” said Steven
Barrow, head of Group-of-10
strategy at Standard Bank
Group Ltd. in London. “It’s
hard for traders or investors
to go into Thursday with any
strong conviction -- or large
position.”
The pound was little changed
at $1,4718 as of 9:11 a.m. in
London after surging 2,4 per-
cent against the greenback
on Monday and 1,1 percent
the previous day. That back-
to-back gain of 3,5 percent
was unseen since Decem-
ber 2008 and erased almost
all of its loss for 2016. The
currency was at 77,06 pence
per euro.
Billionaire investor George
Soros said the pound may
slump more than 20 percent
against the dollar if British
voters decided to quit the
EU, a devaluation bigger
and more disruptive than
when he profited by betting
against the currency in 1992.
– Bloomberg●
26
Pound holds biggest gain since 2008 as EU-vote polls turn mixed
internatioNAL News
27. By Aurther Shoko
...Continued from yesterday
This adds to the frustrations
that we face in a cash strapped
economy that has its eyes
opened wide for foreign capital
injections. Whatever inflows
that could be coming via PayPal
are not making their way into
Zimbabwe when it needs them
the most.
For Zimbabwe the PayPal glass
remains half full or half empty
depending on the type and
level of inconvenience this
maybe causing you. What could
possibly be hindering PayPal
from offering the full service to
Zimbabwe?
PayPal is notoriously tight-
lipped it’s not as easy to get an
explanation on things (my email
to them had not been responded
to by the time we had pub-
lished this post, if they do I will
update).
So we can only learn from their
operational patterns, previous
public statements and personal
experience to analyse how they
think. It appears activating full
PayPal features for a particular
market is depended on the mar-
ket’s central bank regulations
and PayPal policy itself.
Of the two, the latter is
over-powering. PayPal prides
itself of being “the safer, easier
way to pay and get paid online”.
This means safety and ease of
use is right on the leading edge
and therefore the company’s
most guarded goal post.
This also means markets that
cannot guarantee safety and
ease of paying and getting
paid are not worthy to receive
full features but can only be
consumers (make outgoing
payments) as is the case with
Zimbabwe.
Allowing risky countries to
send money and not receive
guarantees safety and ease of
doing business within the PayPal
ecosystem.
What are the implications
of the current cash crisis on
PayPal in Zimbabwe?
My analysis leads me to con-
clude that the depth and width
of the current cash crisis is a big
issue for PayPal in Zimbabwe,
at least as it pertains receiving
funds and operating merchant
accounts.
In fact, we may have just kicked
ourselves some years down the
road away from full PayPal func-
tionality that much of the world
has long enjoyed.
It all begins here when Pay-
Pal makes this promise to
the buyer:-
We understand that sometimes
things don’t arrive as planned.
So if an eligible item you’ve
purchased online doesn’t arrive
or arrives significantly different
to the seller’s description, we
can reimburse you for the full
purchase price plus shipping
costs, up to $20,000 per item.
This, in other words, is part of
PayPal’s flagship and strictly
implemented Buyer Protection
programme.
At the moment with badly
depleted and depleting Nostro
accounts, Zimbabwean banks
are hardly able to dance in
sync with this essential PayPal
requirement.
If PayPal allowed Zimbabwean
account holders to operate mer-
chant accounts, should some-
thing go wrong, as it will, with a
transaction be it fraud or lack of
delivery of a promised good or
service, PayPal would be unable
to recover that amount and that
would be bad for their business.
Poorly funded Nostro accounts
is also the reason behind local
banks switching off or limiting
card use for cash withdraw-
als via ATM when abroad, for
example.
So the cash crises and overall
financial market confusion is our
undoing as it relates to PayPal.
In coming articles I will explore
possible current work-arounds
or alternatives.
However, be cautious of the fact
that these are just but work-
arounds and cannot match the
robustness and security offered
by PayPal – TechZim●
27 analysis27 analysis
Zimbabwe’s incomplete PayPal experience adds to cash crisis frustrations