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Government still taking raw material duty removal applications
1. News Update as @ 1530 hours, Wednesday 30 July 2014
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Ngoni Dapira
THEMinisterofIndustryandCommerce,
MikeBimha,hassaidthedoorisstillopen
for applications for duty removal on raw
materials for manufacturing companies.
Bimha said this in his official opening
remarks of the Confederation of Zimba-
bwe Industries congress in Mutare yes-
terday.HesaidGovernmenthadrealised
that most companies were requesting
for tariff reviews and decided to look for
waystogetaroundthedilemmawithout
violating regional and international obli-
gations.
“Government continues to receive appli-
cationsfromlocalmanufacturingcompa-
nies for duty removals for raw materials
and increase of duty for imported fin-
ished products as a way of meeting the
diverse needs of our local industry
“After realising that most companies are
requesting for tariff reviews and that this
will imply in some cases, reversing Zim-
babwe’s commitments to regional and
international obligations, Government
decided to also use the option of remov-
ing some products from the Open Gen-
eral Imports Licence.
“Removing products from OGIL means
thatgoodswillbeimportedatthediscre-
tionoftheMinisterofIndustryandCom-
merce, through the issuance of import
licenses,” said the minister. Bimha said
hewasrecentlyinBotswanaforaSouth-
ern African Development Community
meeting where Zimbabwe succeeded
applying for emergency measures to be
allowed to enact policy measures which
were against regional obligations for a
derogation period of three to five years.
He said this was necessary as Govern-
ment was making strides to implement
the Zimbabwe Agenda for Sustainable
Socio-Economic Transformation and
develop the economy.
On another note, Bimha revealed that
principles for the establishment of Spe-
cial Economic Zones had been crafted
and would be presented to the Minister
of Finance and Economic Development
induecourseasGovernmentsconcerted
effortstocreatefavourableconditionsfor
Foreign Direct Investment are being act
out.
The Minister of State for Manicaland Pro-
vincial Affairs, Chris Mushohwe, urged
local companies to promote the ‘Buy
Zimbabwe’ campaign and promote local
manufacturing industries.
“Local mining companies and all compa-
nies in general that import components
and other spare parts for their retooling
should stop importing and start sup-
porting local industries so that we grow
our industry instead of enriching foreign
industries,” said Mushohwe.
The CZI congress which started on
WednesdayendsonFridayandwasrun-
ning under the theme: “Taking Zimba-
bwe Industry to the next level.”
Several local and international speakers
wereinvitedtopresentpapersonfunda-
mentaleconomicmattersthatcouldhelp
take Zimbabwe’s economy to the next
level.-Manica Post •
Government still taking raw material duty removal applications
Minister Bimha
3. 3 NEWS
By Lynn Murahwa
The Ministry of Small and Medium
Enterprises and Cooperative Develop-
ment says it will dissolve housing coop-
eratives that do not meet approved
standards and conditions while some
could have their accounts frozen as the
ministry moves to curb corruption in
the sector .
Addressing the Small and Medium
Enterprises and Cooperative Devel-
opment Parliamentary portfolio com-
mittee, permanent secretary Eveline
Ndlovu said the ministry was swamped
with complaints about housing cooper-
atives that might be abusing funds at
the expense of members.
"Housing Cooperatives have tended to
give the most problems. The problems
emanate from management commit-
tees not wanting to comply with pro-
visions of the Act as regards to having
booksauditedandheldresultingin lack
of leadership renewal.
"As well as management committees
that are sub-dividing plots allocated
and selling stands without the knowl-
edge of cooperative members," she
said.
She said 12 cooperatives risked hav-
ing their accounts garnished as they
have been resisting having their books
audited.
"Some of these management com-
mittees are not holding annual general
meetings and in some instances ignor-
ing advice from supervisory commit-
tees and the ministry," she said.
Ndlovu added that land developers
were taking advantage of low income
cooperators who are not well versed in
legal matters to take portions of land
from cooperatives as payment for ser-
vices that they hardly ever give.
"After the people put in infrastructure,
landdevelopersmoveinandpushpeo-
ple out. Cooperatives are taking in the
role of Government, laying in roads,
water and electricity then land devel-
opers come saying they have papers
from the Ministry of Local Government
(to develop that land)and move them
out,” she said.
Small and Medium Enterprises Minister
Sithembiso Nyoni yesterday said her
ministry will work with local authori-
ties to punish offenders of the Housing
Cooperative Act.•
Defrauding housing cooperatives to be dissolved
Minister Nyoni
5. BH24 Reporter
A local think tank has said the coun-
try needs to deepen its financial sector
reforms to encourage wider investor
participation in the sector.
The Zimbabwe Economic Policy Analy-
sis and Research Unit said an analysis
of the macroeconomic performance
and the developments in the financial
sectors during the financial reform
period revealed modest improvements
in the efficiency of the financial sector.
“While ill managed and timed financial
reforms can induce an economic crisis,
financial reforms are a critical pillar in
the economic growth and transforma-
tion strategy of a nation.
In this regard, Zimbabwe needs to
deepen its financial sector reforms that
result in a broad spectrum of products
to meet the demand s of the investing
public,” Zeparu said.
Zeparu undertook a study on the expe-
rience and lessons learnt for Zimbabwe
in financial liberalisation and crisis.
The study noted that the measures
that have been put in place to ensure
recapitalisation of banks will need to be
accompanied by a conclusive way to
deal with high level of non-performing
loans.
“The rationale of these measures is
anchored on the logic that strong and
highly capitalised banks have capacity
to underwrite more loans.
However, the issue of NPLs still needs
to be addressed holistically through a
co-ordinated approach .
One question that needs to be resolved
is whether a policy under which all
NPLs are recognized at once and the
accompanying fiscal costs are all paid
up front is preferable to a piecemeal
policy,” the report said.
The report also said for the ZimAsset
blueprint to take shape, there is need
for financing from the local financial
sector .
“The tradable sector depends on
inputs from the non-tradable sector.
In this regard it is necessary that the
non-tradable sector also grows in order
to attain a balanced and sustainable
growth path.
This requires adequate financing for
domestically oriented firms and struc-
tural reform in key sectors, such as
energy and infrastructure, among
others. Limited investment in the
non-tradable sector will constrain
export growth.” •
5 NEWS
Zim should deepen financial sector reforms: Study
7. BH24 Reporter
The completion of Starafrica Corpora-
tion’s plant upgrade will result in a 50
percent increase in production capacity
at the company’s main cash cow Gold
StarSugarsHarareandtheresumption
of exports.
In a statement, chairman Joe Mtizwa
said the plant upgrade which started
eight months ago had been completed
and would be commissioned in the sec-
ond week of August.
“The upgraded plant will increase pro-
duction capacity from 300 tonnes per
day to 600 tonnes per day. As a result,
GSSH will be able to consistently sat-
isfy refined sugar requirements for all
domestic market segments and have a
surplus to export,” he said.
HesaidtheplantinBulawayoremained
under care and maintenance in the
year ended Marchg 31 2014.
Mtizwa said the company recorded a
72 percent decline in production to 4
616 tonnes in the period under review
due to the eight months shut down
necessitated by the plant upgrade. This
also negatively affected sales volumes
during the review period.
Revenue went down to $9,3 million
from $24,3 million in the prior year and
the finance costs were also down to
$4,8 million from $5,3 million.
The group narrowed its loses from
$16,4 million in the previous year to
$12,2 million. The group’s total assets
also went down from $42 million
to $35,3 million in the period under
review.
Mtizwa said the group will improve
its performance in the later part of
2014/2015 due to the plant upgrade
andastabledomesticmarketforsugar.
•
7 NEWS
Plant upgrade to double production for Starafrica
10. The equities market traded in the
positive after the Industrial index
moved up 1.54 points to close at
188.08 points.
Ten counters traded in the positive
with Hippo adding on 2 cents to trade
at 62 cents and Colcom gaining 1.41
cents to trade at 26.41 cents. Fidelity
was 1.02 cents solid to close at 8.52
cents whilst DZHL and Seedco both
traded a cent higher at 12 cents and
80 cents respectively.
Two counters traded in the negative
territory today. Pioneer lost 2 cents
to trade at 3 cents and Radar eased
0.02 cents to close at 2 cents.
The mining index lost a further 0.65
points to close at 95.00 points as
Bindura shed 0.23 cents to trade at
8.50 cents. Falgold was unchanged
at 3 cents while Riozim rose by 3.10
cents to close at 24.10 cents. Hwange
also had a firm bid at 5.50 cents.
― BH24 Reporter •
10 ZSE REVIEW
Equities market maintains gains
11. SPECIALISTS IN DRIVESHAFTS AND PROPSHAFTS, STEERING RACKS, BALL JOINTS, DRAGLINKS,
TIE ROD ENDS, CV JOINTS, TRANSMISSIONS, UNIVERSAL JOINTS, FLANGES, BEARINGS,
BUSHES, YOKES, GENERAL ENGINEERING, BELL SPARES, AIR BRAKES AND PNUEMATICS, SUPPLY
AND SERVICE EXCHANGE FOR COMPLETE AXLES, ENGINES AND GEARBOXES.
NATIONAL PROPSHAFTS CENTRE
No. 17033 CEDORA ROAD, P.O. BOX GT 1244,
GRANITESIDE, HARARE, ZIMBABWE.
Website: www.propshaftscenter.co.zw
TEL: 770638-43, 086 4406 8386
CELL: 0772 470665, 0712 204396,
086 44068386, 0712 749578
Email: sales@nationalpropshafts.co.zw
MUTARE PROPSHAFTS CENTRE
12 A RIVERSIDE DRIVE
P.O.BOX 1869, MUTARE, ZIMBABWE
Website: www.propshaftscenter.co.zw
Tel: 66084, 086 4406 8385, Fax: 68597
Cell: 0712 204396,
0772 715388, 0773 782502
Email: sales@mpc.co.zw, mpc@mweb.co.zw
BELL DIFFS
COMPRESSORS UNIVERSAL JOINTS
TA 1919 PUMPS, WATER PLATES &
DOUBLE BOSH PUMPS
MT643 TRANSMISSIONS
STEERING COUPLINGS
FOOT BRAKE & VALVESCENTRE BEARINGS
PROPSHAFTS SPARES
SPIDER BEARINGS
BOOSTERS
PROPSHAFT COUPLINGS
PROPSHAFTS & DRIVE SHAFTS
TRACK RODS &
DRAGLINKS
BH24
12. The housing industry is regarded as
a barometer for economic growth in
developed countries for the simple
reason that the growth of credit in this
sector stimulates economic growth as
banks make profits for their investors.
But in Zimbabwe, this is not happen-
ing as the investors are shunning the
sector and Government struggles to
deal with the backlog.
So what has been happening is that
individuals are using their meager
earnings to build their own houses, a
process that may take years.
And to counter this, we have had
numerous housing cooperatives com-
ing in to help the situation.
While the initiative of cooperatives
was noble, hundreds of these co-op-
eratives have taken advantage of the
desperate citizens to dupe them of
their hard-earned money.
Theytakepeople’shardearnedmoney
and put it to their own selfish use. And
very few have been punished for this
by the looks of things. And what has
Government done with these errant
co-operatives? Not much we feel.
Zimbabwe’s housing backlog stands
at a staggering 1,2 million applicants,
a figure Government says could soar
if a proper survey is conducted. Thou-
sands are living in squatter camps
while illegal structures are resurfacing.
And the rapidly growing communi-
ties in the capital that accommodate
low-income-earners infrastructure
such as such as Hopley Farm, Cale-
donia and Whitecliff that were built
by housing co-operatives do not have
schools, proper roads, health and rec-
reational facilities.
Now with a figure this high, Govern-
ment should have done something
more by now. Instead of demolish-
ing houses in Chitungwiza and other
areas, Government should be working
to make them legal so that we do not
increase the number of homeless peo-
ple.
Harare Residents Trust director Pre-
cious Shumba has said local authori-
ties have not taken housing as a major
priority.
“Housing has not been taken as a
major priority by local authorities,
especially in Harare. The increasing
number of people on the housing
waiting list reflects the attitude of the
Government of Zimbabwe where they
have not really invested in the provi-
sion of housing to millions of desper-
ate home seekers.
“To confirm this view, a review of the
strategic plans of local authorities,
their annual plans and budgets show
that housing is not being given top pri-
ority.The current restructuring of the
City of Harare shows that the housing
department has been put under the
chamber secretary’s department as
a division, yet it is a key service that
the City of Harare or any other local
authority provides. They have main-
tained a human resources department
showing their priority as a municipality
is on employment provision instead of
housing delivery,” Shumba said.
It seems housing cooperatives that
are engaging in corruption have been
getting more attention from local
authorities than the genuine ones.
So we feel Government should come
in and mediate. They should not be
licensing so many of them for the
purposes of audit. The more they are,
the more difficult it is to regulate and
monitor them . Cooperatives need
to be controlled so that they do not
abuse the people who are in desperate
need of housing.
So we feel Government should enforce
regulations to ensure that the millions
of Zimbabweans who need houses get
attention. This is the only way housing
in Zimbabwe can contribute to eco-
nomic growth. •
12 BH24 COMMENT
Restore sanity in the housing sector
14. Facebook’s founder and CEO Mark
Zuckerburg has just announced that
Facebook is launching the Internet.org
application in Zambia. This app allows
free data access to basic internet ser-
vices.
Zambia is the first country which will
benefit from this project and its large
set of free internet services with other
countries in other parts of the world set
to benefit from the service as well.
The service will be available to Air-
tel subscribers in Zambia who can
access these services in the Internet.
org Android app, at www.internet.org,
or within the Facebook for Android
app. This is meant to improve internet
penetration in Zambia which currently
stands at 15%
The internet.org project was launched
by Zuckerburg and Facebook in a bid to
bring internet access to the “next five
billion people.” This effort has roped
in other large players in telecoms and
technology which include Ericsson,
MediaTek, Nokia, Opera, Qualcomm
and Samsung.
Posting on his Facebook page Zuck-
erburg said right now, only 15% of
people in Zambia have access to the
internet. Soon, everyone will be able
to use the internet for free to find jobs,
get help with reproductive health and
other aspects of health, and use tools
like Facebook to stay connected with
the people they love.
Some of the sites include Facebook,
AccuWeather, Airtel, eZeLibrary ,Facts
for Life,Google Search, Go Zambia
Jobs, MAMA (Mobile Alliance for Mater-
nal Action), Wikipedia and Messenger.
A similar service, Econet Zero was
launched locally by the country’s larg-
est network operator Econet Wireless.
It’s focus has solely been free access
to education sites and Massive Open
Online Courses (MOOCs). •
Mining project house DRA said on
Thursday that it had agreed to acquire
the Forge Group North America com-
panies, formerly known as Taggart
Global, for an undisclosed sum.
DRA, a private, employee-owned
Johannesburg-based project and
engineering services company which
is celebrating its thirtieth year in busi-
ness, said the acquisition of Taggart’s
US operations would add more than
$100-million to its existing Americas
business, along with world-class engi-
neering capabilities.
DRA has bought the 21-year-old Tag-
gart with the full support of the man-
agement team, which will remain with
the company. A company in engineer-
ing, construction and operations ser-
vices, Taggart, headquartered in Pitts-
burgh, gives DRA added experience in
coal preparation and diverse mineral
and aggregate handling systems in
North America, Africa, Australia and
China.
DRA CEO Paul Thomson said Taggart,
which had an “excellent” reputation
in the global coal preparation and
clean-coal technology markets, had
expanded its skill set into the power
sector, ports and terminals, biofuels,
mineral sands, as well as the mining
and aggregate industries.He was also
particularly attracted to the compa-
ny’s ability to build and operate pollu-
tion control systems, coal preparation
plants, mineral load-out facilities and
material handling facilities.
Taggart’s South African subsidiaries
would be part of a separate transac-
tion, which would be subject to regula-
tory and competition authority approv-
als. ― Mining Weekly. •
14 REGIONAL News
South Africa’s DRA adds $100m to Americas business as it tags Taggart
Facebook announces free data access in Zambia with Internet.org
Mark Zuckerburg
16. 16 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
31 July 2014
Energy
(Megawatts)
Hwange 669 MW
Kariba 720 MW
Harare 20 MW
Munyati 26 MW
Bulawayo 28 MW
Imports 0 MW
Total 1463 MW
1 August - Sixteenth Annual General Meeting
of the members of Econet Wireless Zimbabwe
Limited, Place: Econet Park, 2 Old Mutare Road,
Msasa, Harare, Time; 10.00am
Seed Co Limited 19th Annual General Meet-
ing Venue: Seed Co Administration Block at Sta-
pleford Date: Wednesday 20 August Time: 12:00
hours
National Tyre Services Limited 52nd Annual
General Meeting Venue : Boardroom, Stand
4608, Corner Cripps/Seke Roads, Granite-
side, Harare Date: 20 August 2014 Time: 14:30
hours
THE BH24 DIARY
22. Global mining giant Rio Tinto markets
itself as a 'sustainable company',but
serious failures in its reporting, and its
attempt to hold an Australian indige-
nous group to ransom, reveal a very
different truth: the company is driven
by a reckless pursuit of profit at any
cost.
Rio Tinto uses its sustainability report-
ing to bolster the argument that it is
a responsible company and therefore
entitled to a license to operate. Now, a
global campaign is demanding that Rio
Tinto live up to its sustainability claims.
Rio Tinto subsidiary, Energy Resources
of Australia (ERA), has threatened the
Mirarr people that if it is not allowed
to expand its Ranger uranium mining
operations underground, it may be
unable to fully fund rehabilitation of the
open pit mine.
The Ranger mine is located in the tra-
ditional lands of the Mirarr, the world
heritage-listed Kakadu national park
in Australia's Northern Territory. If ERA
does not complete rehabilitation of the
site, which suffered a radioactive spill
last year, the water, air quality and soil
in the area could be scarred with toxic
radiation for generations.
'It's not our problem' When a share-
holder confronted Rio Tinto CEO Sam
Walsh about this at the company's April
annual meeting, Walsh flatly refused
to commit to full rehabilitation or take
responsibility for the mess.
Walsh said it is a problem for ERA, not
Rio Tinto: "We are clearly sharehold-
ers [of ERA], but it's a matter for all
shareholders and a matter for the ERA
board."Whathedidnotmentionisthat
Rio Tinto is the controlling shareholder
of ERA, and that five out of six ERA
board members are current or former
Rio Tinto employees.
What's more, in its latest sustainable
development report, Rio Tinto une-
quivocally states that "ERA will make
sure that when its operations come to
an end, the Ranger Project Area will be
safely closed and rehabilitated ... ". RT:
sustainability 'supporting our license to
operate' Rio Tinto is keen on sustain-
ability reports. It produces them both
at the global level and for many of its
individual sites.
The reason why is neatly summed
up in the title of its 2013 sustainable
development report: "Supporting our
license to operate". In effect, Rio Tinto
uses its sustainability reporting to bol-
ster the argument that it is a responsi-
ble company and therefore entitled to
a license to operate. This tacit license is
distinct from the authorisation it needs
to operate each individual mine, such
as land, water and air permits. How-
ever, it is just as important.
Unless it is seen as trustworthy, deci-
sion-makers will be reticent to grant
mining rights to Rio Tinto. Without
these rights, the company will have no
way to make profits. ― The Ecologist
•
22 INTERNATIONAL NEWS
Rio Tinto's 'sustainable mining' claims exposed
23. By Garikai Dzoma
When I was a young man in our rural
home there were only two households
with landline phones. These doubled as
phone shops and people would queue
for hours to make brief calls over poor
linesthatbuzzedlikebeesduetostatic.
If you think today’s mobile operators
are ripping you off then you should
have seen what those two charged.
The actual figures are lost in a hectic
decadeofcurrencychangesbutitmust
have been in the region of a hen every
two or so minutes.
Understandably for the majority of us
the most popular means of communi-
cation was via the PTC’s postal service.
It was not fast or overly efficient but it
was cheap so everyone, including us
kids, could afford it.
For a fraction of a dollar – the US dol-
lar I mean – one could send entire
pages of messages to their loved ones.
I remember my family and I used to
stuffseverallettersintothesameenve-
lope as we sent messages to my father
whenever he was deployed abroad.
There was none of this bundles non-
sense. Every now and again I have
to explain data pricing models to my
maternal grandmother. She hasn’t
really grasped the meaning of data and
megabytes so I spent a good amount
of our time making up crazy analogies
about letter weight and stamps.
Bundles are like special stamps that
can only be used to sent and receive
special types of letters. The response
is always invariably a why? And why
do I have to buy a stamp to be able to
receive a letter? Is it because the mes-
sages are marked Pay Forward?
Zimbabwean statistics are hard to
come by so I can only speak for
myself-I have only received a total of
three letters in two years. Not counting
parcels, I have received only one let-
ter through the post during this time
and it was a business letter. I haven’t
posted a single letter in almost 8 years.
The red painted ZIMPOST letter box
that used to be a prominent feature of
every shopping centre from Machipisa
to Hauna has now been relegated to
memories. When was the last time any
of you sent a letter? I am not referring
to those “Final Notice” demands that
are hand delivered to your debtors
every month. I mean by post.
Old Mr. Dodzo the Postmaster, one of
the many postmen in our village used
to deliver every letter to its recipi-
ent in the village. He didn’t have to,
but he preferred that personal touch
and delivered every letter and with it,
pieces of village gossip in love and with
relish.
Postmen were ubiquitous then and as
an important a job as any. They were
at par with our teachers, policemen
and soldiers acting as the nervous
system to our great nation. I cannot
help but think that part of the high
unemployment rate in our country has
been brought about by the increasing
redundancy of the postman. I haven’t
seen anyone in a Postman’s uniform in
a while, they have become more rare
than swallows in July.
Most have no need for a postman now.
They send their messages through
email, IM, Facebook, Twitter and
increasingly less through SMS and
MMS. In the name of progress these
“letters” are transported, sorted and
delivered by machines in real time.
The flesh and blood postman is giv-
ing way to the digital postman.Dis-
turbingly with the decline of SMS and
MMS usage more and more of these
tasks are being handled beyond our
borders. Old Mr. Dodzo would never
have approved of such an impersonal
method of delivery.
Butheisdeadnowandalmostcertainly
the postman’s post (pun intended) will
soon follow him to the grave. With the
increase in the uptake of courier ser-
vices it seems even the parcel deliv-
ering niche that they have enjoyed for
so long might also fall to the prey. ―
Techzim •
23 Analysis
The death of the postman