A digital copy of the Business News 24 (25 July edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
A digital copy of the BH24 (20 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
The IMF resident representative in Zimbabwe expressed concerns to parliament about the Zimbabwe Asset Management Corporation (ZAMCO) taking on large amounts of debt from insolvent state-owned and private companies. This could potentially become a significant liability for the Zimbabwean state. The IMF representative said they have also raised concerns about rising treasury bill issuance to finance budget deficits and proposed reforms not being implemented. Their views appear to contradict an earlier positive assessment of ZAMCO by the IMF, indicating their position may be shifting ahead of further reviews of Zimbabwe's economic program.
'Financial sector indigenisation measures to spur economic growth'Zimpapers Group (1980)
The Reserve Bank of Zimbabwe announced new financial sector compliance credits that are aligned with guidelines for implementing indigenisation and economic empowerment policies. Under the measures, financial institutions can earn empowerment credits by meeting objectives such as lending 20% of their portfolio to agriculture and energy or lending to small businesses. The credits contribute to the 51% indigenisation threshold required by law. Observers believe the measures will encourage banks to support economic growth sectors in line with indigenisation goals. The alternative is for institutions to pay an empowerment levy, though this is subject to rebates from specified activities.
A digital copy of the BH24 (21 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the BH24 (22 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the BH24 (20 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
The IMF resident representative in Zimbabwe expressed concerns to parliament about the Zimbabwe Asset Management Corporation (ZAMCO) taking on large amounts of debt from insolvent state-owned and private companies. This could potentially become a significant liability for the Zimbabwean state. The IMF representative said they have also raised concerns about rising treasury bill issuance to finance budget deficits and proposed reforms not being implemented. Their views appear to contradict an earlier positive assessment of ZAMCO by the IMF, indicating their position may be shifting ahead of further reviews of Zimbabwe's economic program.
'Financial sector indigenisation measures to spur economic growth'Zimpapers Group (1980)
The Reserve Bank of Zimbabwe announced new financial sector compliance credits that are aligned with guidelines for implementing indigenisation and economic empowerment policies. Under the measures, financial institutions can earn empowerment credits by meeting objectives such as lending 20% of their portfolio to agriculture and energy or lending to small businesses. The credits contribute to the 51% indigenisation threshold required by law. Observers believe the measures will encourage banks to support economic growth sectors in line with indigenisation goals. The alternative is for institutions to pay an empowerment levy, though this is subject to rebates from specified activities.
A digital copy of the BH24 (21 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the BH24 (22 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
The document reports on the escalating public row between South Africa's Hawks police unit and Finance Minister Pravin Gordhan, as the Hawks threatened legal action against the minister, causing the South African rand currency to crash through 16 to the US dollar level. The fight between the Hawks and Gordhan erupted after the unit sent him questions about a "rogue" SARS tax agency unit just before the budget, and analysts are concerned that Gordhan's departure could damage the economy as it faces recession risks.
A digital copy of the BH24 (19 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the Business News 24 (11 June edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news
Mimosa Platinum, a platinum mine in Zimbabwe owned by South African company Aquarius Platinum, increased platinum production by 2% in the first half of 2015 compared to the same period last year, but saw revenues decrease 32% to $99 million due to lower metal prices. While costs decreased slightly, earnings fell sharply due to the large drop in platinum prices. The mine produced 60,214 ounces of platinum group metals in the first half of 2015.
- South Africa posted its biggest trade surplus in 4 years in December 2015, which helped strengthen the rand currency.
- The rand gained against the US dollar to trade below R16 per dollar for the first time since January 7th.
- South Africa's trade surplus in December widened to R8.2 billion from R0.7 billion in November, driven by a 13% drop in imports and 5% fall in exports.
- However, the improvement in trade figures may only be temporary as commodity prices fall and food imports rise due to drought conditions. The current account deficit is also expected to widen.
- A leading Zimbabwean think tank, ZEPARU, forecasts that Zimbabwe's inflation rate will rise slightly from -2.47% in December 2015 to -2.10% by March 2016. This is based on the assumption that policy measures from the 2016 national budget are implemented and the South African rand stabilizes.
- The RBZ is mobilizing long term affordable financing for gold and diamond miners to increase production and export earnings from these sectors. Gold production has been rising in recent years while the diamond sector has underperformed.
- Total Zimbabwe plans to invest $10 million in capital expenditure in 2016 as it looks to maintain service quality across its network of over 100 gas stations in the country.
A digital copy of the BH24 (02 February 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
- The Zimbabwe Stock Exchange registered increases in turnover and volume traded in February, rising 38.4% and 54% respectively from the previous month. However, the market value maintained a downward trend.
- While activity increased on the stock market last month, the ZSE's market capitalization is already down 11.42% for the year. Market watchers forecast the market will recover only 15% this year.
- The change in fortunes on the stock market provides hope that stocks may offer moderate returns after large losses in recent years, though economic challenges remain.
A digital copy of the Business News 24 (07 July edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
Rio Tinto named its top copper executive Jean-Sebastien Jacques as its new CEO, replacing Sam Walsh who led the company's iron ore expansion. Jacques oversaw negotiations to expand Rio Tinto's Oyu Tolgoi copper mine in Mongolia and will help the company boost copper production as demand is expected to increase. The appointment of Jacques signals Rio Tinto's increased focus on copper at a time when the mining industry is adjusting to China's economic shift away from heavy industry and commodities like iron ore.
The Reserve Bank of Zimbabwe is spearheading the revival of an Economic Crimes Court to curb white-collar crimes like externalization of foreign currency and corruption in the financial sector. The RBZ governor said plugging economic leaks through such a court is needed given limited revenues from resources like diamonds. Reviving the court would allow faster handling of economic crimes cases involving minerals so assets can quickly be released to the state.
Econet Wireless is working to enhance its tap and go payment system to allow for electronic airtime vending by June, in preparation for an upcoming ban on airtime vouchers. The CEO of Econet said they are working on strategies like improving the tap and go system to ensure their 25,000 airtime vendors are not left stranded by the ban. They aim to have all vendors able to dispense electronic vouchers by June.
- Zimbabwe continues to have the lowest inflation rate in the COMESA region at -2.4% in January 2016 according to the HCPI-COMESA. Other member states ranged from 0.9% to 27%.
- Payserv Africa successfully defended a claim by the minority shareholder in its subsidiary Tradanet regarding the shareholder's right to acquire Payserv's 51% stake in Tradanet. An arbitrator ruled in favor of Payserv Africa.
- Metallon Corporation announced changes to its board, with the chairman and one director retiring and a new non-executive chairman being appointed to focus on corporate strategy and growth.
A digital copy of the BH24 (3 February 2016 edition). Zimbabwe's premier online business platform published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the Business News 24 (31 July edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
ZB Financial Holdings says it will focus on transactional banking rather than lending in the current economic environment with high private sector loan defaults, as it looks to reduce its loan book and non-performing loans; while the economic situation improves, the group chief executive says ZB Financial Holdings will continue to deliberately reduce its loan book and move towards more of a transactional banking model to avoid further non-performing loans. ZB Financial Holdings was able to lower its non-performing loan ratio from 29% to 20% last year partly due to debt transfers to the Zimbabwe Asset Management Corporation and recoveries of bad debts.
The document reports on the escalating public row between South Africa's Hawks police unit and Finance Minister Pravin Gordhan, as the Hawks threatened legal action against the minister, causing the South African rand currency to crash through 16 to the US dollar level. The fight between the Hawks and Gordhan erupted after the unit sent him questions about a "rogue" SARS tax agency unit just before the budget, and analysts are concerned that Gordhan's departure could damage the economy as it faces recession risks.
A digital copy of the BH24 (19 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the Business News 24 (11 June edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news
Mimosa Platinum, a platinum mine in Zimbabwe owned by South African company Aquarius Platinum, increased platinum production by 2% in the first half of 2015 compared to the same period last year, but saw revenues decrease 32% to $99 million due to lower metal prices. While costs decreased slightly, earnings fell sharply due to the large drop in platinum prices. The mine produced 60,214 ounces of platinum group metals in the first half of 2015.
- South Africa posted its biggest trade surplus in 4 years in December 2015, which helped strengthen the rand currency.
- The rand gained against the US dollar to trade below R16 per dollar for the first time since January 7th.
- South Africa's trade surplus in December widened to R8.2 billion from R0.7 billion in November, driven by a 13% drop in imports and 5% fall in exports.
- However, the improvement in trade figures may only be temporary as commodity prices fall and food imports rise due to drought conditions. The current account deficit is also expected to widen.
- A leading Zimbabwean think tank, ZEPARU, forecasts that Zimbabwe's inflation rate will rise slightly from -2.47% in December 2015 to -2.10% by March 2016. This is based on the assumption that policy measures from the 2016 national budget are implemented and the South African rand stabilizes.
- The RBZ is mobilizing long term affordable financing for gold and diamond miners to increase production and export earnings from these sectors. Gold production has been rising in recent years while the diamond sector has underperformed.
- Total Zimbabwe plans to invest $10 million in capital expenditure in 2016 as it looks to maintain service quality across its network of over 100 gas stations in the country.
A digital copy of the BH24 (02 February 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
- The Zimbabwe Stock Exchange registered increases in turnover and volume traded in February, rising 38.4% and 54% respectively from the previous month. However, the market value maintained a downward trend.
- While activity increased on the stock market last month, the ZSE's market capitalization is already down 11.42% for the year. Market watchers forecast the market will recover only 15% this year.
- The change in fortunes on the stock market provides hope that stocks may offer moderate returns after large losses in recent years, though economic challenges remain.
A digital copy of the Business News 24 (07 July edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
Rio Tinto named its top copper executive Jean-Sebastien Jacques as its new CEO, replacing Sam Walsh who led the company's iron ore expansion. Jacques oversaw negotiations to expand Rio Tinto's Oyu Tolgoi copper mine in Mongolia and will help the company boost copper production as demand is expected to increase. The appointment of Jacques signals Rio Tinto's increased focus on copper at a time when the mining industry is adjusting to China's economic shift away from heavy industry and commodities like iron ore.
The Reserve Bank of Zimbabwe is spearheading the revival of an Economic Crimes Court to curb white-collar crimes like externalization of foreign currency and corruption in the financial sector. The RBZ governor said plugging economic leaks through such a court is needed given limited revenues from resources like diamonds. Reviving the court would allow faster handling of economic crimes cases involving minerals so assets can quickly be released to the state.
Econet Wireless is working to enhance its tap and go payment system to allow for electronic airtime vending by June, in preparation for an upcoming ban on airtime vouchers. The CEO of Econet said they are working on strategies like improving the tap and go system to ensure their 25,000 airtime vendors are not left stranded by the ban. They aim to have all vendors able to dispense electronic vouchers by June.
- Zimbabwe continues to have the lowest inflation rate in the COMESA region at -2.4% in January 2016 according to the HCPI-COMESA. Other member states ranged from 0.9% to 27%.
- Payserv Africa successfully defended a claim by the minority shareholder in its subsidiary Tradanet regarding the shareholder's right to acquire Payserv's 51% stake in Tradanet. An arbitrator ruled in favor of Payserv Africa.
- Metallon Corporation announced changes to its board, with the chairman and one director retiring and a new non-executive chairman being appointed to focus on corporate strategy and growth.
A digital copy of the BH24 (3 February 2016 edition). Zimbabwe's premier online business platform published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the Business News 24 (31 July edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
ZB Financial Holdings says it will focus on transactional banking rather than lending in the current economic environment with high private sector loan defaults, as it looks to reduce its loan book and non-performing loans; while the economic situation improves, the group chief executive says ZB Financial Holdings will continue to deliberately reduce its loan book and move towards more of a transactional banking model to avoid further non-performing loans. ZB Financial Holdings was able to lower its non-performing loan ratio from 29% to 20% last year partly due to debt transfers to the Zimbabwe Asset Management Corporation and recoveries of bad debts.
A digital copy of the Business News 24 (09 September edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
The National Bakers Association of Zimbabwe (NBAZ) has lobbied the Ministry of Finance and Ministry of Industry and Commerce for better terms on the second phase of the Distressed Marginalized Areas Fund (DIMAF 2), specifically an interest rate lower than 10% and a loan term of at least 5 years. NBAZ president Mr. Givemore Mesoemvura said that many bakeries defaulted on loans from the initial DIMAF due to the high interest rates and short terms. He is requesting a 7% interest rate and 5 year term for bakeries accessing DIMAF 2 funds.
The World Bank says Zimbabwe can use the Rapid Results Approach (RRA) to help expedite solutions to its current cash shortage problems. The RRA is a method used to accelerate organizational change through 100-day goal-setting. The government has completed two phases of an RRA program focused on improving ease of doing business. The World Bank country manager says Zimbabwe can transition more quickly to e-commerce by applying the RRA methodology to address cash shortages and encourage electronic payments. The article provides details on Zimbabwe's cash shortage challenges and measures already taken by the central bank to address the problem and incentivize electronic payments and exports.
A digital copy of the BH24 (12 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
Zimbabwe's corporate governance weaknesses have contributed to its poor ratings in international surveys, according to an official. Improving corporate governance could significantly boost Zimbabwe's rankings. The official noted that past governance failures have resulted in the current negative perceptions, and that while some methodology reservations exist, the ratings still factor into potential investors' considerations. The government is working to enhance corporate governance in the public sector through various initiatives.
A digital copy of the BH24 (29 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
A digital copy of the Business News 24 (07 October edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
Treasury directs ZINARA to disburse 70pc of funds for rehabilitationZimpapers Group (1980)
- The Zimbabwean equities market extended gains from the previous day, with the industrial index rising 1.32% to 95.28.
- Major stocks like Delta Beverages, Innscor, Econet, Colcom, CFI and Nampak saw share price increases, helping drive the overall market upward.
- Only Barclays and Old Mutual saw share price declines on the day.
- The mining index remained flat at 26.24 as several mining stocks stayed unchanged from their previous closing prices.
A digital copy of the Business News 24 (3 June edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
A digital copy of the BH24 (05 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 15:30hrs to give a summary of the day's business news.
NMBZ Holdings is close to securing a $20 million loan facility from two European development finance institutions. The loan will target small and medium enterprises in Zimbabwe. NMBZ already has a $20 million facility that it is currently utilizing. The CEO of NMBZ said they will focus on accessing credit lines to support productive sectors of the economy and ease cash shortages. He expects to access the $20 million European facility within the next two months to support SMEs.
A digital copy of the Business News 24 (22 July edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
Zim to craft arrears clearance plan by Sept/Oct: ChimamasaTawanda Musarurwa
Zimbabwe plans to have an arrears clearance plan ready by the third quarter of 2016 as the IMF board is scheduled to meet in May and receive a positive report on Zimbabwe's Staff Monitoring Program. The IMF meeting in May is expected to pave the way for Zimbabwe to start working on an arrears clearance strategy, with the goal of having a plan ready by September or October. In the interim, Zimbabwe will continue engaging with the IMF, World Bank and AfDB as it works to put together the necessary documentation for an arrears clearance strategy.
- Zimbabwe plans to have an arrears clearance plan ready by the third quarter of this year to present to the IMF.
- The IMF board will meet on May 2nd to review Zimbabwe's Staff Monitoring Program report, which is expected to be positive.
- If the report is received well, it will allow Zimbabwe to begin working on an arrears clearance strategy to present by September/October.
We are up to date with licence fee payments, says Telecel ZimbabweZimpapers Group (1980)
A digital copy of the Business News 24 (05 May 2015 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
A digital copy of the BH24 (04 January 2016 edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
Isabel dos Santos, the billionaire daughter of Angola's President, has been appointed as the new CEO of state energy firm Sonangol and has pledged to overhaul the company to improve efficiency and margins amid low oil prices. She plans to split Sonangol into three units and increase transparency to international standards in order to generate more revenue for Angola, which relies heavily on oil exports. Dos Santos aims to offset the "huge" economic impact of depressed oil prices through the reforms at Sonangol.
A digital copy of the Business News 24 (26 June edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.
Similar to Zim drugs manufacturers lament skewed tax policy (20)
Air Namibia is advertising new flight routes from Harare, Zimbabwe to Accra, Ghana and Lagos, Nigeria starting on June 29, 2018. Customers are encouraged to book flights soon to avoid disappointment as seats are selling out. Contact information is provided for booking individual flights or group fares by telephone, email, online, or through a travel agent.
In this edition, you will be enlightened on the cornerstone of international aviation which is the Bilateral Air Service Agreement, commonly referred to as BASA, Africa’s plan for a common airspace and taken on a tour of the Eastern Highlands and the new sky
The article discusses the Zimbabwe Consolidated Diamond Company (ZCDC), which has been operating without a proper legal framework. The permanent secretary in the Ministry of Mines admitted that unlike other state entities, no act of parliament established the ZCDC. It was instead registered as a company under the Companies Act. There are also concerns about the improperly constituted board of the ZCDC and some controversial decisions that have been made. The parliamentary committee questioned the legitimacy of the board's actions in firing employees and replacing them.
Nigeria's central bank announced it will abandon its 16-month peg of the naira to the U.S. dollar and move to a "purely market-driven" system of foreign exchange trading starting next week. Economists estimate the naira's fair value under a float would be between 280 to 300 naira per dollar, compared to the current black market rate of around 370, and the change aims to ease severe dollar shortages caused by lower oil revenues. The central bank will still be able to inject dollars and influence the exchange rate within its foreign reserves, but will no longer target a specific
Nigeria's central bank announced it will abandon its 16-month peg of the naira to the U.S. dollar and move to a "purely market-driven" system of foreign exchange trading starting next week. Economists estimate the naira's fair value under a float is between 280 to 300 naira per dollar, compared to the current black market rate of around 370, and the change aims to ease severe dollar shortages caused by low oil prices. The central bank will still be able to inject dollars and influence the exchange rate within reserves, but no longer has an explicit target rate for the
The Credit Reference Bureau of Zimbabwe is set to be fully operational by July 31st, with a Czech firm having made significant progress in setting up the necessary soft infrastructure at a cost of $1.8 million to the Reserve Bank of Zimbabwe. The CRB will enhance borrower verification and help banks assess credit risk and reduce non-performing loans. A number of consultative meetings have been held with banks to define the necessary data to be collected and reports generated by the new system.
The National Railways of Zimbabwe (NRZ) requires $400 million in short-term funding for recapitalization. This funding will go toward acquiring new machinery and rehabilitating existing infrastructure to increase the railway's carrying capacity from the current 3.4 million tonnes to 7.6 million tonnes. The funding will also be used to procure 15 new locomotives and 1000 new wagons, as securing this funding would allow NRZ to improve services, increase revenues, and return to profitability.
SeedCo, a listed seed producer in Zimbabwe, reported a 3% increase in profit after tax for the fiscal year ending March 31, 2016 compared to the previous year, despite challenges from drought, low commodity prices, and reduced government programs. The company's turnover remained unchanged at $96 million year-over-year. SeedCo was able to increase efficiency and offer competitive pricing, which helped increase its gross margin by 7% during the period. The company plans to focus on growing its ultra-early maize seed varieties to meet increasing demand given changing weather patterns.
The Confederation of Zimbabwe Industries has urged the government to introduce Local Content Regulation for all sectors of the economy in order to boost local production. The regulation would give preference to local producers over imports for some goods and services. It would also require manufacturers to include a minimum percentage of local inputs in their production. A CZI economist said the regulation could increase competitiveness by promoting local products first and supporting local employment and procurement.
The Zimbabwe Flight Crews Association said that the government is not adequately protecting Air Zimbabwe and is instead licensing competitors to service the same routes as Air Zimbabwe, hurting its ability to compete; they argue the national airline should have first right of refusal on routes. Captain Ottis Shonai stated that new airlines have been given licenses to fly the same routes as Air Zimbabwe, which does not happen elsewhere, and that Air Zimbabwe needs route protection from the government as other national airlines receive.
Government has released $500,000 in funding to support the hosting of this year's Sanganai/Hlanganani World Tourism Expo in Bulawayo after the Zimbabwe Tourism Authority faced financial challenges and was contemplating postponing or cancelling the event. The acting ZTA chief executive said the funds will ensure the expo is a success. Over 160 local tourism companies and 28 international exhibitors from countries like Botswana, South Africa and India have registered to participate. International buyers from Europe, Asia, Africa, the Americas and the Middle East are also expected to attend the expo from June 16-18, 2016.
Fastjet Zimbabwe recorded $0.3 million in revenue since commencing operations in October 2015, with an operating loss of $4 million, as the new airline began flights between Harare, Victoria Falls, and Johannesburg. The performance in the first few months of operations was described as "encouraging" by Fastjet, with 91% of flights arriving on time. However, the Zimbabwe operation was not included in Fastjet's key performance indicators for 2015 as it only became operational in October.
- The Beitbridge Hotel in Zimbabwe, owned 40% by the National Social Security Authority (NSSA), has incurred over $2 million in losses since opening in 2014 and has now been closed by majority owner Rainbow Tourism Group.
- An audit before construction found the hotel would be loss-making, but NSSA insisted it proceed anyway. NSSA's investments are under scrutiny as costs for the Beitbridge Hotel ballooned from an initial $3 million budget to over $49 million.
- The closure puts focus again on NSSA's investment strategies that have put pensioners' funds at risk through apparent non-viable projects like the Beitbridge Hotel.
Standard Chartered Bank plans to launch mobile and online banking platforms in 8 African countries including Zimbabwe in the first half of 2016. The bank aims to grow long-term retail banking revenues in Africa 3-4 times faster than regional economic growth. This strategy contrasts with European rivals retreating from Africa due to falling commodity prices and weak currencies. StanChart is expanding its physical presence as well by adding branches in Nigeria, as it seeks to protect and grow its market share on the continent.
Tongaat Hulett's sugar production in Zimbabwe declined 7.4% to 412,000 tonnes for the year ending March 31, 2016. Sales also declined, falling to 403,000 tonnes compared to 491,000 tonnes the previous year. The company reported its Zimbabwe division's financial performance was negatively impacted by lower sugar production and export underperformance. Looking ahead, Tongaat Hulett forecast sugar production could rise up to 12% to 1.15 million tonnes in the new financial year depending on rainfall.
Industry, Finance ministries working on Zimbabwe tariff order for EPA Zimpapers Group (1980)
The Zimbabwean government is working to establish the necessary legal framework to fully implement an Economic Partnership Agreement (EPA) signed with the European Union in 2009, which establishes a free trade area between the EU and Zimbabwe. The EPA grants duty-free access for trade between the EU and Zimbabwe, and Zimbabwe is expected to progressively liberalize 80% of imports from the EU by 2022. Government officials are working with the Ministry of Finance to gazette a Zimbabwe tariff order to pave the way for implementing the trade agreement.
Proplastics, a plastics manufacturer in Zimbabwe, expects to benefit from improved operational efficiencies after commissioning a new plant in the second half of 2016. The new plant is part of the company's broader modernization program, which has already seen a new injection moulding factory and HDPE line commissioned. The CEO said the new plant will improve margins and reduce costs for consumers. For the first four months of 2016, Proplastics' volumes were up 9% and exports contributed 14% to turnover, though overall turnover was flat compared to the prior year due to weaker regional currencies.
The Zimbabwe Mining Development Corporation has commenced efforts to revive the Golden Kopje Mine by seeking a firm to conduct a feasibility study. The study will develop a business plan and work schedule for reopening the mine. Golden Kopje Mine, located in Chinhoyi, stopped operations in 2006 due to financial constraints but reopened in 2009 before shutting down again in 2014 due to operational challenges. Reopening the mine could boost Zimbabwe's gold production, which increased 34% last year.
MFIs loaned $187m in 2015, but fell into consumptive lending trap Zimpapers Group (1980)
- Microfinance institutions (MFIs) in Zimbabwe have largely failed to improve small businesses as a large portion of their loans have gone towards consumption rather than productive sectors.
- Statistics from the Reserve Bank of Zimbabwe show that between 2013-2015, MFI loans were dominated by consumptive lending rather than productive sector funding as was expected.
- In 2015, MFIs loaned a total of $187.1 million but only $85.6 million (45.7%) went to productive sectors while the remaining $101.5 million (54.2%) were consumptive loans.
State-owned mobile operator NetOne expects to pay a dividend to the Zimbabwean government by the end of 2016. This is despite posting a $3 million loss in 2015. The company's acting CEO said ongoing restructuring efforts will improve financial performance going forward. He noted that NetOne has similar network infrastructure to larger competitor Econet but generates much less revenue, indicating room for growth. The CEO said NetOne should capture more market share by better utilizing government customers and expanding its sales and distribution networks.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
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In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
1. News Update as @ 1530 hours, Friday 25 July 2014
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
By Lynn Murahwa
Zimbabwe's pharmaceutical industry
is buckling under the weight of import
costs for raw materials and are facing
closure as the impact of cheap imports
weigh heavy, Parliamentarians heard
today.
The pressures have largely been
blamed on a skewed government pro-
curement policy that favours imported
drugs.
The Pharmaceutical Manufacturers
Association (PMA) has requested for
policymeasurestoaidtheresuscitation
of the pharmaceutical manufacturing
industry in the country.
During a Parliamentarians tour of the
country's pharmaceuticals companies,
Plus Five Pharmaceuticals chief execu-
tive Emmanuel Mujuru said with Gov-
ernment support the local pharmaceu-
tical companies can be able to supply
up to 70 percent of Zimbabwe's drugs
needs.
Mujuru is also chairman of the PMA.
"We can supply up to 70 percent of
the drugs and medicines needed in the
country if we could get Government
support," he said.
According to Mujuru, the bulk of the
challenges being faced by the industry
are based on the country's policies that
are affect sustainability of the industry.
"OncetheenvyoftheSADCregion,the
local pharmaceuticals industry is facing
numerous challenges most of which
are of a policy nature, that are affect-
ing its viability and sustainability which
need urgent redress,' he said. "Capac-
ity utilisation was down to 20 percent
in 2013 from 58 percent in 2012.
Imported raw materials and imported
packaging materials are subjected to
customs duties and value added tax
(VAT)," he said.
He added that the current tax policy
had placed the local pharmaceuticals
industry at a disadvantage as it had left
out left out drugs imports.
"This has created an uneven playing
field that gives imported medicines
a price advantage by increasing the
cost of local production. This policy
favours importation of medicines at the
expense of local production and there-
fore works against some objectives of
ZimAsset," Mujuru added.
Speaking on behalf of the Parliamen-
tary Portfolio Committee on Indus-
try and Commerce chairperson Ray
Kaukonde acknowledged the need to
improve the country's operating envi-
ronment. •
Zim drugs manufacturers lament skewed tax policy
3. By Tawanda Musarurwa
Furniture group Pelhams Limited is far
from coming out of the woods as the
company's loss position for the year
ended March 31 2014 worsened to
$3,3 million.
That was a 94 percent decline from the
prior year loss of $1,7 million.
The company last year indicated that
it was in a "transitional phase" after
it earlier instituted measures such
as realignment of overheads, reloca-
tion and closure of non performing
branches, research and manufacturing
of exclusive lines to increase margins,
conclusion of capital raising initiatives
for working capital and funding of the
debtors book as it sought to return to
profitability.
Although the measures had some
notable effects. In a statement accom-
panying its financial results, company
chairperson Tawanda Nyambirai said:
"The closing of branches that were not
profitable together with the rationalisa-
tion of staff and other expenses con-
tributed towards a reduction in admin-
istrative expenses and other operating
expenses of $899 191 and $416 339
respectively from the prior period.
"The restructuring of expensive debt
and loan arrangements together with
the reduction in the company's loan
secured by a mortgage bond contrib-
uted towards a reduction in finance
costs of 41,02 million from the prior
year."
But external factors appear to have
negated these efforts. Nyambirai out-
lined a significant decline in sales of
goods:
"Sales of goods for the year declined
by 69 percent from a prior year level
of $8,36 million to $2,62 million due to
a combination of factors which include
the company's challenges in stock-
ing up its branches and the declining
demand for capital goods," he said.
The gross margin relating to the sale of
goods stood at 20 percent, a marked
decrease from the prior year's margin
of 26 percent as demand for big ticket
items with higher margins declined.
Finance income on trade receivables
declined from a prior year level of
$3,08 million to $1,11 million as the old
debtors' book matured and was repaid.
Management believes that overheads
alignment will be key in returning the
company to profitability.
"Overheads spanning beyond people
and occupancy costs will have to be
continously reviewed in an environ-
ment where cash management has
become singularly the most important
variable in business," said Nyambirai.
In view of the harsh economic envi-
ronment that the company was oper-
ating in, it could take much longer
than anticipated for full benefits of the
changes in the company’s strategic
focus are realised. •
3 NEWS
Pelhams' loss widens
5. BH24 Reporter
Zimbabwe says it will invest in infra-
structure for the hosting of interna-
tional events and major conferences
as the country gears for MICE tourism.
MICE is the acronym for meetings,
incentives, conventions and exhibi-
tions/events.
According to the National Tourism Pol-
icy that was launched yesterday, the
country could soon be having new
MICE facilities. "The Government will
invest in and support the development
of new MICE facilities and upgrading of
existing ones," reads the policy.
In August last year, Zimbabwe suc-
cessfully hosted the 20th session of the
United Nations World Tourism Organi-
sation (UNWTO) General Assembly in
Victoria Falls, and Tourism and Hospi-
tality Industry Minister Walter Mzembi
believes that the country is well-placed
to claim a stake of the global MICE
market.
Statistics show that the total global
MICE market is in excess of $270 bil-
lion and that output from this form of
tourism accounts for 1 percent of the
world’s gross domestic product.
MICE event locations are normally bid
on by specialised convention bureaux
in particular countries and cities and
established for the purpose of bidding
on MICE activities.
This process of marketing and bidding
is normally conducted well in advance
of the event, often several years, as
securing major events can benefit the
local economy of the host city or coun-
try. To this extent, the country will also
be establishing a National Conventions
Bureau.
"The Government will establish a
National Conventions Bureau to lobby
for regional and international confer-
ences and will facilitate and support ini-
tiations to host conferences in Zimba-
bwe," says the National Tourism Policy.
Zimbabwe expects tourism arrivals
to reach 2,5 million by year end, and
expects arrivals to rise to 3,2 million
next year.
Although the tourism policy has been
launched, the Ministry of Tourism is
yet to promulgate an implementation
matrix for the policy.
According to Minister Mzembi, this will
come in the form of a Strategic Imple-
mentation Plan which will clearly artic-
ulate how the policy pronouncements
will be translated into action plans
incorporating specific timelines and
appropriate responsibilities. •
5 NEWS
Zimbabwe to 'build' meetings industry
Minister Mzembi
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BH24
7. Zimbabwe's state-owned rail
company has agreed to borrow
$460 million from the Develop-
ment Bank of Southern Africa to
develop its unprofitable network
that relies mainly on rolling stock
acquired before independence in
1980.
The loan will be signed within the
next week or two, Lewis Mukwada,
general manager for National Rail-
ways of Zimbabwe, said by phone
today. Jacky Mashapu, a spokes-
man for the Midrand, South Afri-
ca-based DBSA, declined to
immediately comment.
“Now the real work starts,” Muk-
wada said from Bulawayo, Zimba-
bwe’s second-largest city. “This is
good news for NRZ.”
The country’s railways require
$1.9 billion of investment after
freight volumes declined by about
two-thirds since 2000 to 3.6 mil-
lion metric tons last year, Muk-
wada said July 7. Zimbabwe’s
economy has stalled and is threat-
ened by deflation after contracting
by 40 percent in the eight years
following land reform programs
that dispossessed white farmers
in 2000. ―Bloomberg •
7 NEWS
BH24 Reporter
Estimated revenue of $3,01 million
exchanged hands at Mbare Agriculture
Market in the month of May, figures
from eMkambo show.
eMkambo is an agriculture market
intelligence organisation. According to
eMkambo, the $3 million revenue is a
46,1 percent increase from revenues
posted in the prior comparable period.
The above income was generated from
49 produce types sold in the market
from various farming areas and dis-
tricts around Zimbabwe.
The month of May is significant in Zim-
babwean agriculture for two main rea-
sons. First of all, May
marks the beginning of winter. Sec-
ondly, by May, most field crops are off
the land and now at home.
Farmers will now be busy counting
their costs and thinking about diversi-
fying into other agribusiness
activities.
Experts at eMkambo have urged the
Government to spearhead the broad-
ening of agricultural market databases.
"Policymakersshoulddevoteresources
to local market development where the
country’s resilience is well expressed.
Although local knowledge is being
contaminated by various forms of
knowledge spill-overs, ordinary people
people’s capacity to mobilise solutions
stands tall in Zimbabwe," they said. •
$3m exchanged in agro-market in May
Zimbabwe to sign $460m Development Bank loan for railways
9. 9 mining
BH24 Reporter
Zimbabwe's production last year
dipped 14 percent to $538,5 million
for 10,41 million carats, data released
by the Kimberley Process Certification
Scheme (KP) shows.
The country's volume of production
also eased 14 percent to 10,411 million
carats while the average price dropped
3 percent to $51,72 per carat.
The Government has since instituted
a number of measures to boost ben-
efits from local diamond production,
including streamlining the number of
firms currently operating in Marange
and banning exports of rough gems for
prospective investors.
Zimbabwe's decline came at a time
when global diamond production by
value rose 11 percent year on year to
$14,09 billion.
Byvolume,globalproductionincreased
2 percent to 130,48 million carats.
The KP said this was attributable to a
rise in the average price of rough dia-
monds in the year, which grew by 9
percent to $107,95 per carat.
On the African continent, the value of
Botswana’s production rose 22 percent
to $3,63 billion with volume up 13 per-
cent to 23,19 million carats to retain its
position as the top diamond producer
in the world in terms of value.
Namibia's production increased 15 per-
cent to $1,36 billion from 1,689 million
carats as its average price leaped 46
percent to $805,24 per carat.
Italsohadthehighestpriceddiamonds
in the world overtaking Lesotho where
the average price of rough production
fell 7 percent to $584,88 per carat.
During the same period, Angola's out-
put grew 15 percent to $1,28 billion
from 9,36 million carats while its aver-
agepricerose2percentto$136,49per
carat.
South Africa’s output also increased
15 percent to $1,19 billion from 8,143
million carats while the average price of
its diamonds was flat at $145,54 per
carat.
Globally, Russia was ranked in second
place with production up 8 percent to
$3,11 billion and output up 8 percent
to 37,884 million carats.
Canada’s diamond production fell 5
percent to $1,91 billion but output rose
1 percent to 10,56 million carats. •
Zim diamond output dips 14 percent to 10,4 million carats: KP
11. The stock market lost 0.64 percent in
today's trades, maintaining a down-
ward trend that has the seen the
industrial index losing 2.17 points (or
1.17 percent) on a week-on-week
basis.
Activity has been generally subdued
during the course of the week just
ended. The industrial index closed
lower at 183.76 points after shedding
1.19 points as a number of heavy-
weight caps lost some ground.
Natfoods retreated 5 cents to trade
at 195 cents and Colcom dropped 3
cents to close at 22 cents.Giant tel-
ecoms Econet and Meikles both went
down a cent to 72 cents and 16 cents
respectively, while Zimplow also went
down, losing 0.60 cents to close at 8
cents. Only three industrial counters
traded in the positive territory. First
Mutual was 0.52 cents higher to close
at 5.52 cents, African Sun added 0.10
cents to close at 2.80 cents and ZPI
was up 0.01 cents to 0.90 cents.
The mining index added 5.40 points
(or 8.83 percent) to close at 66.53
points on the back of a positive per-
formance by Bindura, which gained
0.60 cents to close at 5.61 cents.
Falgold, Hwange and Riozim were
unchanged at previous trading levels.
On a week-on-week basis, the mining
index rose 8.70 points (or 15.04 per-
cent) ― BH24 Reporter •
11 ZSE REVIEW
Equities close week in the red
13. MostAfricancompaniesandfirmshave
failed to rise up because they allocate
salaries and benefits to workers based
on “labour regulations” rather than the
actual output produced by the worker.
“Why should I work extra hard
when I know my salary will come
at exactly the same amount I
negotiated for at the end of the
month and also that the employer
will find it difficult to chase me
away because of tight labour
laws” these are the hypothetical sen-
timents of one lazy worker.
The move by Government to reform
the labour laws has received mixed
responses from different stakeholders.
Employers applauded and welcomed
the move as they believe it will reduce
the labour cost burden that has been
weighing down on their production.
On the other hand for the workers the
reforms do not seem to favor them
much as the initial view was that the
labour laws are stringent and tend to
favor workers. Which arguably can be
true, but for us it is not really about
who is being favored or who is not. It’s
about economic growth and develop-
ment. Surely it can be agreeable that
at this stage in which the economy is
at we cannot look at who is in what
position but rather on what solution is
being offered to come out of this pre-
dicament.
If the reformation of the labour laws is
a step to improving economic growth
and well being then why not reform.
But one most important element
however is that labour laws should be
matched with productivity.
This, however, may be difficult to
measure for other sectors such as
teaching and for the civil servants, but
for those sectors were production can
be measured against effort it certainly
should be applied.
Production should be key, workers
actually need to be rational on this
matter it is only reasonable that a
worker receives what he/she works
for and should put more effort to
receive more.
However some may argue that they
may be working but their effort is not
recognised because of other linked
factors that may lead to low produc-
tivity, in such a scenario what can be
done?
This now becomes the labour experts
front to be able to explain how pro-
ductivity based remuneration can
work out.
Industrial Psychology Consultants,
a human resource consultancy
company, has been advocating for
employers to adopt the productivity
based remuneration structures.
This has received wide acceptance and
the explanation is that it will promote
productivity and cut labour costs.
The company proposed some sci-
entific measures that can be used to
make this proposal practical and appli-
cable. But the critical point here is that
the economy needs to grow and peo-
ple should be paid for what they have
worked for. •
13 BH24 COMMENT
Productivity based remuneration the way to go
15. Lonmin Plc said it’s looking at ways to
cut expenses as a five-month strike in
SouthAfricacrippledthird-quarterplat-
inum output, reduced sales by 68 per-
cent and will raise costs by more than
60 percent for the year.
Lonmin is “assessing our medium- to
long-term options around improving
the productivity and profitability of our
business, including cost reduction,”
Chief Executive Officer Ben Magara
said in a statement today.
Thewalkoutbymorethan70,000min-
ers at Lonmin, Anglo American Plat-
inum Ltd. and Impala Platinum Hold-
ings Ltd. cost the companies about 24
billion rand ($2.3 billion) in lost output
and workers 10.7 billion rand in wages
by the time it ended on June 24.
The strike pushed the economy into
contraction in the first three months
of this year as mining output plunged.
South Africa accounts for more than
two-thirds of mined production of the
metal.
Lonmin reported no output in its third
quarter ended June 30. The strike
affected 192,700 platinum saleable
ounces in the period, and resulted in
the loss of 348,400 ounces in the nine
months through June.
All 11 shafts are back in production
and the company is operating at about
30 percent of normal monthly output.
Lonmin will reach 80 percent of normal
production by the end of September
and a full steady state in the first quar-
ter of fiscal 2015, it said.
The company reduced its capi-
tal-spending forecast to $100 million
for the fiscal year ending Sept. 30 from
$210 million and sees the unit cost per
ounce of platinum group metals pro-
duced to be more than 60 percent than
a year earlier. This includes costs of
$322 million incurred mainly because
of idle production and security costs,
it said.
Lonmin forecasts production of
340,000 ounces of metals in concen-
trate for the fiscal year, and sales of
420,000 ounces. ― Bloomberg •
15 REGIONAL News
Lonmin seeks cost cuts as strike disrupts sales, lift expenses
17. 17 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
14 July 2014
Energy
(Megawatts)
Hwange 511 MW
Kariba 750 MW
Harare 30 MW
Munyati 28 MW
Bulawayo 0 MW
Imports 0 MW
Total 1320 MW
23 -25 July - Mine Entra, Place: Zimbabwe Inter-
national Exhibition Centre, Bulawayo
24 July - OK Zimbabwe Thirteenth Annual Gen-
eral Meeting Place: OKMart Functions Room,
First Floor, OKMart, 30 Chiremba Road, Hillside, Time:
15:00 hours.
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
THE BH24 DIARY
21. 21 AFRICA StockS
Botswana 8,664.65 -11.96 -0.14% 12July
Cote dIvoire 246.37 +2.18 +0.89% 07Mar
Egypt 7,949.60 -75.68 -0.94% 06Mar
Ghana 2,354.16 -7.26 -0.31% 18June
Kenya 4,896.77 -13.83 -0.28% 21July
Malawi 12,662.47 +0.00 +0.00% 07Mar
Mauritius 2,074.51 -3.51 -0.17% 07Mar
Morocco 9,544.10 +21.01 +0.22% 07Mar
Nigeria 42,784.30 -107.52 -0.25% 21July
Rwanda 131.27 +0.00 +0.00% 24Oct
Tanzania 2,018.97 +25.40 +1.27% 07Mar
Tunisia 4,624.39 -39.32 -0.84% 07Mar
Uganda 1,503.90 +0.81 +0.05% 10Sep
Zambia 4,242.74 +14.95 +0.35% 10April
Zimbabwe 185.72 -0.21 -0.11% 21July
African stock round up Commodity Prices
Name Price
Crude Oil 1,300.91 -0.21%
Spot Gold USD/oz 1,292.63 -0.26%
Spot Silver USD/oz 19.38 -0.46%
Spot Platinum USD/oz 1,421.25 -0.33%
Spot Palladium USD/oz 798.50 -0.64%
LME Copper USD/t 6,770 -0.18%
LME Aluminium USD/t 1,780 -1.17%
LME Nickel USD/t 18,230 -1.73%
LME Lead USD/t 2,095 -1.41%
Quote of the day — "There is
only one way to succeed
in anything, and that is to
give it everything." -
Vince Lombardi
Globalshareholder.com
22. The International Monetary Fund fore-
seestheglobaleconomyexpandingless
than it had forecast, slowed by weaker
growth in the United States, Russia and
developing economies.
The lending organization on Thursday
predicted that global growth will be 3.4
percent in 2014, below its April forecast
of3.7percent.Thefundstillexpectsthe
growth of the world's economy to accel-
erate to 4 percent in 2015.
The downgrade of this year's estimate
for the global economy reflects much
slower growth in the United States.
The IMF expects just 1.7 percent U.S.
growth in 2014, which would be the
weakest since the recession officially
ended five years ago.
That's down from its April prediction of
2.8 percent.
The U.S. economy shrank at an annual rate of 2.9 percent in the first three months of the year. ― AP •
Brent crude edged higher above $107
a barrel on Friday, on track to end the
week flat as plentiful supplies held down
any run-up in prices from geopolitical
tensions in oil producing regions. Oil
prices have traded in a tight range this
week with robust economic data from
the United States, China and the euro
zone also failing to push prices higher.
"It is very unusual that big geopolitical
events such as Iraq, Ukraine and Gaza,
which normally are very sensitive to
the price of oil, almost haven't affected
prices," said Jonathan Barrett, chief
investment officer at Ayers Alliance in
Sydney, noting that trading volumes
have dropped off. "The only conclusion
we can draw is that the world is awash
with oil," he said. Brent crude for Sep-
tember delivery traded 24 cents higher
at $107.31 a barrel by 0657 GMT. The
contract had closed 96 cents lower on
Thursday.
U.S crude for September delivery was
up 8 cents at $102.15 a barrel, after
settling$1.05lower.ConflictsinUkraine,
Gaza and Iraq raged on, but failed to
push prices higher as global supplies
remainedample.InLibya,oilproduction
has risen to 500,000 barrels per day,
but there is no progress on reopening
Bregaoilportafteranagreementtoend
a protest there, a spokesman for state-
runNationalOilCorporationsaid.Gazan
authorities said Israeli forces shelled a
shelter at a U.N.-run school on Thurs-
day, killing at least 15 people as the Pal-
estinian death toll in the conflict climbed
higherthan760andattemptsatatruce
remained elusive.
Members of the European Union on
Thursday also considered proposals tar-
geting state-owned Russian banks vital
to Moscow's faltering economy in what
would be the most serious sanctions so
far over the Ukraine crisis. ― Reuters
•
22 INTERNATIONAL NEWS
Brent holds above $107 as supplies outweigh political tensions
IMF cuts U.S., global growth forecasts for '14
23. By Ray Mwareya
Contunued from yesterday
The country's laws compel flue-cured
tobacco farmers to establish fast grow-
ing tree species as replacements. "For-
ests have a paramount contribution to
make as engines of future sustainable
development", says Saviour Kasuku-
were, Zimbabwe's water and climate
minister.
In 2011 the country's largest replant-
ing target was met with 10 million
new trees. However there is a doubt
how many of the new trees survived
due to the wild fires that often accom-
pany tobacco farming. Farmers are
also encouraged to grow fast-growing
eucalyptus on their own land to pro-
vide the wood. But many are reluctant
as this would mean giving up land for
tobacco cultivation, while the trees are
also highly water demanding.
Rocket barns
In an attempt to tackle the problem
British American Tobacco has intro-
duced what it called a 'rocket barn' -
a tobacco drying kitchen that uses 50
percent less firewood by burning only
wood harvested from commercial for-
ests not natural ones. 'Rocket barns'
are more fuel-efficient than traditional
drying barns, and work by using
emerging exhaust smoke to draw in
dry air. They are insulated with 50 mil-
limeters of grass thatch. Its wide chim-
ney not only removes smoke from the
furnace but also expels moisture from
the barn.
Where conventional tobacco barns
use 530kg of wood to cure 5 bales of
tobacco, a rocket barn uses 290 kg
of firewood to cure the same quan-
tity according to Zimbabwe's Tobacco
Research Board (TRB).
Dahlia Garwe, TRB chief executive,
says rocket barns are designed to pro-
mote high combustion efficiency mini-
mising the release of ozone pollutants
to the air, while "quality of cured leaf
is improved in rocket barns. Excessive
heat from metal pipes in old barns
damages the crop's leaves."
They also use small branches and
twigs, she adds, "thus making it pos-
sible for the farmers to use branches
for curing instead of cutting down the
while tree." The TRB has distributed 10
000rocketbarnstosmallscalefarmers
from 2013 at agricultural shows, field
days and auctions. Statistics show that
60 percent of farmers who received
bans adopted them.
But other farmers complain of the cost
of rocket barns. They cost $800 to $1
200 with labour and building - ruling it
out as an option for under-capitalised
farmers including most newly estab-
lished tobacco growers.
Also with the widely fluctuating tob-
cacco price, farmers feel insecure mak-
ing long term investments, even if they
have retained the money needed from
past profits.
Change, or disaster will follow
Tobacco stands as an unhealthy bal-
ancing act for Zimbabwe. It is earn-
ing vital dollars in the short term, and
bringing welcome prosperity to almost
100,000 farmers including women who
have benefitted from the country's land
redistribution programme.
But the sector must urgently move to
more sustainable pratices, or the long
term cost will surely prove disastrous
for the country and its people not least
its farmers. ― TheEcologist•
23 Analysis
Tobacco - Zimbabwe's forests are going up in smoke