A Chinese firm plans to invest $1.77 billion to set up an industrial explosives production project in Zimbabwe. The first phase will see construction of a 12,000 ton emulsion explosives production line over 12 months. The firm established a Hong Kong joint venture to undertake the Zimbabwe project and signed agreements regarding cooperation on the production line project.
The document discusses proposals for liberalizing India's industrial and foreign exchange policies by curtailing the role of the public sector, shifting from the MRTP Act to a new Competition Act, and moving from a control-based foreign exchange regulatory regime under FERA to a more liberalized management-based system under FEMA. It outlines the historical context and rationale for these proposed policy changes and shifts towards a more market-oriented economy.
In this edition of our policy brief, we provide an update of some key regulatory and policy changes under way or anticipated in coming months in relation to the newly released digital agenda, to the on-going implementation of the energy strategy, to financial services, and to taxation.
Learn about the latest policy developments with this monthly alert from our team in Brussels. For real-time updates, follow @MSL_Brussels or reach out to us on Twitter @msl_group.
Explosives and blasting in underground coal mining Volvo Group
This document discusses explosives and blasting in underground coal mining. It covers the types of permitted explosives that can be used, including P-1, P-3, and P-5 explosives, designed for different operations. Only explosives on the official list issued by the Chief Controller of Explosives in India are permitted. Detonators must also be approved, with only electric copper tube detonators allowed. The document outlines principles of blasting in development and depillaring, including blasting on pre-cut faces and solid blasting of coal. It provides requirements for blasting techniques and air velocities needed for ventilation.
The document summarizes drilling and blasting equipment used in mining and construction. It describes various types of drills like percussion drills, abrasion drills, and fusion piercing. It also discusses components of drilling like drills, drill bits, and different drilling patterns. The document then explains the blasting process which involves using explosives like dynamite, detonators, fuses, and blasting caps. Proper handling and transportation of explosives is important for safety. The blasting procedure involves making blast holes, inserting charges, tamping, and detonating with a fuse or detonator.
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.
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.
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.
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.
The document discusses proposals for liberalizing India's industrial and foreign exchange policies by curtailing the role of the public sector, shifting from the MRTP Act to a new Competition Act, and moving from a control-based foreign exchange regulatory regime under FERA to a more liberalized management-based system under FEMA. It outlines the historical context and rationale for these proposed policy changes and shifts towards a more market-oriented economy.
In this edition of our policy brief, we provide an update of some key regulatory and policy changes under way or anticipated in coming months in relation to the newly released digital agenda, to the on-going implementation of the energy strategy, to financial services, and to taxation.
Learn about the latest policy developments with this monthly alert from our team in Brussels. For real-time updates, follow @MSL_Brussels or reach out to us on Twitter @msl_group.
Explosives and blasting in underground coal mining Volvo Group
This document discusses explosives and blasting in underground coal mining. It covers the types of permitted explosives that can be used, including P-1, P-3, and P-5 explosives, designed for different operations. Only explosives on the official list issued by the Chief Controller of Explosives in India are permitted. Detonators must also be approved, with only electric copper tube detonators allowed. The document outlines principles of blasting in development and depillaring, including blasting on pre-cut faces and solid blasting of coal. It provides requirements for blasting techniques and air velocities needed for ventilation.
The document summarizes drilling and blasting equipment used in mining and construction. It describes various types of drills like percussion drills, abrasion drills, and fusion piercing. It also discusses components of drilling like drills, drill bits, and different drilling patterns. The document then explains the blasting process which involves using explosives like dynamite, detonators, fuses, and blasting caps. Proper handling and transportation of explosives is important for safety. The blasting procedure involves making blast holes, inserting charges, tamping, and detonating with a fuse or detonator.
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.
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.
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.
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.
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 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 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.
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.
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.
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
The document reports on several news stories from Zimbabwe:
1) Stockbrokers in Zimbabwe are undergoing training on an automated trading system (ATS) that will be fully operational within six months, according to the Securities and Exchange Commission of Zimbabwe CEO. Pakistani trainers have started training brokers on how to use the new system.
2) The Rural Electrification Agency's board in Zimbabwe will likely raise rural electrification tariffs after the Energy Minister called for a review of the "low" current rates and expressed concerns over the 6% levy for rural electrification being insufficient.
3) The IMF is appointing its first resident representative in Zimbabwe in 10 years as the country works to mend relations with the international
A digital copy of the Business News 24 (25 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.
Zimbabwe's electricity distribution company, ZETDC, is awaiting delivery of 130,000 pre-paid meters by next month to migrate the remaining 120,000 customers still using the old billing system and to provide meters for new housing developments. ZETDC has already migrated 563,000 customers to pre-paid meters since starting the pre-paid metering project in 2012. The installation of meters for the remaining customers is expected to be completed by the last quarter of this year.
Indigenisation levy to curb high levels of non-compliance, says Minister ZhuwaoZimpapers Group (1980)
A digital copy of the BH24 (14 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, 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 (29 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 Business News 24 (11 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.
AuthBridge Newsletter Issue 2- Subject Your CXO's to Thorough Background CheckAuthBridge
Employee screening is practically the first step towards strengthening organisational governance, stresses the Executive President- HR of Tata Teleservices Ltd, S. Varadarajan.
For more information visit www.authbridge.com
Ensuring KYC norms are being adhered to and AML controls are strengthened is gathering momentum across the globe. While banks in India up their ante to
address the stink being raised by the revealing reports of Cobrapost, the global landscape is equally scathed with Federal Reserve [UK] and Administración Federal
de Ingresos Públicos (AFIP), the Argentinian federal tax agency raising concerns on the functioning and controls at Citibank and HSBC respectively.
Serious Fraud Investigation Office [SFIO] in the process of setting up a forensic audit laboratory along with revamping its Market Research & Analysis Unit to enable it to function as an intelligence unit. SFIO also has the powers to recommend prosecution in white collar crimes.
A digital copy of the Business News 24 (30 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.
Govt expediting Zimbabwe National Productivity Institute establishment Zimpapers Group (1980)
The government is investigating the sale of Rio Tinto's shareholding in Murowa Diamond Mine and Sengwa Colliery in Zimbabwe from last year. A government official said they are verifying how the shares changed hands. Rio Tinto had announced selling its 78% stake in Murowa Mine and 50% stake in Sengwa coal fields to RioZim, but the government seeks more clarity on the transaction. The government is also investigating the disposal of shareholding in the mines because the matter is still under investigation.
A digital copy of the Business News 24 (24 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.
Meikles Hospitality Limited invested $9 million to refurbish its flagship Harare hotel in Zimbabwe but is facing challenges filling rooms due to the weakening South African rand, which has weakened the key source market for visitors; occupancy rates are around 30-34% compared to expectations of over 50%. The commercial director said that while they took out a loan for renovations, the returns have not met expectations due to the rand's depreciation hurting the number of South African visitors.
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
More Related Content
Similar to Chinese firm to set up industrial explosive materials project in Zim
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 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 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.
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.
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.
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
The document reports on several news stories from Zimbabwe:
1) Stockbrokers in Zimbabwe are undergoing training on an automated trading system (ATS) that will be fully operational within six months, according to the Securities and Exchange Commission of Zimbabwe CEO. Pakistani trainers have started training brokers on how to use the new system.
2) The Rural Electrification Agency's board in Zimbabwe will likely raise rural electrification tariffs after the Energy Minister called for a review of the "low" current rates and expressed concerns over the 6% levy for rural electrification being insufficient.
3) The IMF is appointing its first resident representative in Zimbabwe in 10 years as the country works to mend relations with the international
A digital copy of the Business News 24 (25 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.
Zimbabwe's electricity distribution company, ZETDC, is awaiting delivery of 130,000 pre-paid meters by next month to migrate the remaining 120,000 customers still using the old billing system and to provide meters for new housing developments. ZETDC has already migrated 563,000 customers to pre-paid meters since starting the pre-paid metering project in 2012. The installation of meters for the remaining customers is expected to be completed by the last quarter of this year.
Indigenisation levy to curb high levels of non-compliance, says Minister ZhuwaoZimpapers Group (1980)
A digital copy of the BH24 (14 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, 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 (29 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 Business News 24 (11 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.
AuthBridge Newsletter Issue 2- Subject Your CXO's to Thorough Background CheckAuthBridge
Employee screening is practically the first step towards strengthening organisational governance, stresses the Executive President- HR of Tata Teleservices Ltd, S. Varadarajan.
For more information visit www.authbridge.com
Ensuring KYC norms are being adhered to and AML controls are strengthened is gathering momentum across the globe. While banks in India up their ante to
address the stink being raised by the revealing reports of Cobrapost, the global landscape is equally scathed with Federal Reserve [UK] and Administración Federal
de Ingresos Públicos (AFIP), the Argentinian federal tax agency raising concerns on the functioning and controls at Citibank and HSBC respectively.
Serious Fraud Investigation Office [SFIO] in the process of setting up a forensic audit laboratory along with revamping its Market Research & Analysis Unit to enable it to function as an intelligence unit. SFIO also has the powers to recommend prosecution in white collar crimes.
A digital copy of the Business News 24 (30 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.
Govt expediting Zimbabwe National Productivity Institute establishment Zimpapers Group (1980)
The government is investigating the sale of Rio Tinto's shareholding in Murowa Diamond Mine and Sengwa Colliery in Zimbabwe from last year. A government official said they are verifying how the shares changed hands. Rio Tinto had announced selling its 78% stake in Murowa Mine and 50% stake in Sengwa coal fields to RioZim, but the government seeks more clarity on the transaction. The government is also investigating the disposal of shareholding in the mines because the matter is still under investigation.
A digital copy of the Business News 24 (24 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.
Meikles Hospitality Limited invested $9 million to refurbish its flagship Harare hotel in Zimbabwe but is facing challenges filling rooms due to the weakening South African rand, which has weakened the key source market for visitors; occupancy rates are around 30-34% compared to expectations of over 50%. The commercial director said that while they took out a loan for renovations, the returns have not met expectations due to the rand's depreciation hurting the number of South African visitors.
Similar to Chinese firm to set up industrial explosive materials project in Zim (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
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.
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 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.
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.
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.
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.
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.
Starting a business is like embarking on an unpredictable adventure. It’s a journey filled with highs and lows, victories and defeats. But what if I told you that those setbacks and failures could be the very stepping stones that lead you to fortune? Let’s explore how resilience, adaptability, and strategic thinking can transform adversity into opportunity.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
Discover the Beauty and Functionality of The Expert Remodeling Serviceobriengroupinc04
Unlock your kitchen's true potential with expert remodeling services from O'Brien Group Inc. Transform your space into a functional, modern, and luxurious haven with their experienced professionals. From layout reconfiguration to high-end upgrades, they deliver stunning results tailored to your style and needs. Visit obriengroupinc.com to elevate your kitchen's beauty and functionality today.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
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.
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Stone Art Hub
Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
During the budget session of 2024-25, the finance minister, Nirmala Sitharaman, introduced the “solar Rooftop scheme,” also known as “PM Surya Ghar Muft Bijli Yojana.” It is a subsidy offered to those who wish to put up solar panels in their homes using domestic power systems. Additionally, adopting photovoltaic technology at home allows you to lower your monthly electricity expenses. Today in this blog we will talk all about what is the PM Surya Ghar Muft Bijli Yojana. How does it work? Who is eligible for this yojana and all the other things related to this scheme?
Call8328958814 satta matka Kalyan result satta guessing➑➌➋➑➒➎➑➑➊➍
Satta Matka Kalyan Main Mumbai Fastest Results
Satta Matka ❋ Sattamatka ❋ New Mumbai Ratan Satta Matka ❋ Fast Matka ❋ Milan Market ❋ Kalyan Matka Results ❋ Satta Game ❋ Matka Game ❋ Satta Matka ❋ Kalyan Satta Matka ❋ Mumbai Main ❋ Online Matka Results ❋ Satta Matka Tips ❋ Milan Chart ❋ Satta Matka Boss❋ New Star Day ❋ Satta King ❋ Live Satta Matka Results ❋ Satta Matka Company ❋ Indian Matka ❋ Satta Matka 143❋ Kalyan Night Matka..
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
𝐔𝐧𝐯𝐞𝐢𝐥 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐰𝐢𝐭𝐡 𝐍𝐄𝐖𝐍𝐓𝐈𝐃𝐄’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬
Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.
The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Chinese firm to set up industrial explosive materials project in Zim
1. By Tawanda Musarurwa
HARARE – Hunan Nanling
Industry Explosive Mate-
rial Co Ltd has announced
plans for its Hong Kong joint
venture (JV) to set up an
industrial explosive materials
production project in Zimba-
bwe.
In terms of the first phase
of the industrial explosive
materials production project
in Zimbabwe, the firm will
invest a total of 1,06 billion
yuan ($1770 million), which
will see the construction of a
12 000 ton emulsion explo-
sives fixed production line.
The expected construction
period of the first phase is
12 months.
Hunan Nanling Industrial
Explosive Materials said the
Hong Kong JV New World
(Hong Kong) International
Development Limited) had
been set up specifically in
line with the Chinese Gov-
ernment's external invest-
ment policy.
"After....careful market
research demonstration pro-
jects, the company intends
to Tianjin
News Update as @ 1530 hours, Tuesday 29 March 2016
Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw
Chinese firm to set up industrial explosive materials project in Zim
industrial explosives
2. Companies Babu Wei Republic
parties established in Hong
Kong joint venture co-opera-
tion (hereinafter "Hong Kong
joint venture"), by the Hong
Kong joint venture with local
Zimbabwe
Construction of Explosive
Materials joint venture
production line project in
Zimbabwe.
"The two sides have reached
consensus on co-operation
matters, signed the minutes
of the meeting, and in Zim-
babwe joint venture produc-
tion line Explosive Materials
related matters written in
the text of the co-operation
agreement," said the com-
pany in statement.
Hunan Nanling Industrial
Explosive Materials is prin-
cipally engaged in research,
development, manufacture
and sale of civil explosive
materials, military products
and civil explosive profes-
sional equipment, as well as
blasting and logistics busi-
ness.
The firm's products and
services can be divided into
industrial explosives, indus-
trial detonating cords, indus-
trial detonators, engineering
blasting operations, and
transportation and distribu-
tion services.
The Zimbabwe project's line
of business will include: pro-
duction of emulsion explo-
sives and ANFO; non-electric
blasting assembly detona-
tor; distribution and sale of
civilian blasting equipment;
civilian blasting equipment
to provide technical advice,
blasting services and mining
services.
According to Hunan Nanling
Industrial Explosive Mate-
rials the setting up of the
joint venture in Hong Kong,
and the investment into
the Zimbabwe project have
been approved by the Hunan
Provincial Department of
Commerce.
Chinese investment into
Zimbabwe has maintained an
upward trajectory, espe-
cially after President Robert
Mugabe's State visit to China
in December last year where
he and Chinese President Xi
Jinping signed 10 investment
deals.●
2 news
5. BH24 Reporter
HARARE -- The mining sector
taxation system has loopholes
that could result mining com-
panies operating in the country
committing tax fraud, a new study
has shown.
According to ‘The Extractive
Industry in Zimbabwe: An Evalua-
tion of Trends in Corporate Social
Investments, Taxes Paid, Stake-
holder Participation and Link-
ages to Service Delivery of Local
Authorities (2009 -2014)’ report,
regulatory authorities themselves
feel that the taxing system for the
mining sector could be tighter.
The report was carried out by the
Institute for Sustainability Africa
in conjunction with Oxfam. Reads
part of the report: “Interviews
with the regulatory authorities
indicated major concern on trans-
fer pricing, trade mis-pricing, over
invoicing of imports and under
invoicing of exports by extractive
companies as major issues con-
tributing to tax avoidance.
“The regulatory authority felt
that the collection systems had
loopholes and the law itself was
lenient to tax fraud. The practice
impacts on natural resource cap-
ital tax bracket. There was a call
for effective and efficient revenue
collection system to insulate the
hard impact of illicit financial
flows particularly by multinational
extractive companies.
“While the regular noted chal-
lenges in collecting taxes from
companies, there was need for
capacity development and collab-
oration with other agencies/actors
in extractive sector.” The research
also explored establishing trends
of taxes paid by mining compa-
nies to the Zimbabwe Revenue
Authority (ZIMRA) and Local
Authorities.
It showed that there has been
decline since 2010 on taxes being
paid by mining firms.The study
reported a 138 percent drop in
the mining sector tax index from
2010 to 2014. Tax figures in this
analysis were based on actual
taxes paid as reflected in the
cash flow statement not accrual
tax figure disclosed in the income
statement or balance sheet.
The total payment disclosed show
that they represent an average
of 4,1 percent of total revenue
of attributable mining companies
participating in this research.
However, there were two com-
panies who could not publish
attributable revenues and taxes
to Zimbabwe specifically, said the
report.●
5 news
02 03
ADD TO CART
Save big on selected
Products of your choice
PAYMENT
You can purchase
whenever, wherever
using:
DELIVERY
Spend $30 or more
on your purchases
and get free
delivery
01 Hello Convenience
www.hammerandtongues.com
BIG CONVENIENCE+
BIG SAVINGS+
BIG OPPORTUNITIES
= BIG HAPPINESS
SHOP ONLINE!!
Mining sector taxation system open to abuse: study
8. HARARE– Government is
working on refining regula-
tory frameworks that govern
mobile banking activities, to
improve the administration
of the sector, an official has
said.
Mobile banking refers to any
system that enables regular
banking services through a
mobile phone. But many of
the mobile banking initiatives
are partially – in some cases
wholly – led by non-bank
organisations that are tradi-
tionally outside the scope of
financial regulation, and with
whom the financial regulator
has traditionally had little or
no contact.
This has naturally led to
concern that the lack of clear
regulation in the sector
could lead to abuse of the
system by operators. The
Deposit Protection Corpo-
ration, which is charged
with refunding depositors
in failed registered depos-
it-taking institutions includ-
ing commercial and finance
houses, has in the past
raised concern about the
continued use of the Banking
Act to regulate mobile bank-
ing activities in Zimbabwe.
And, Postal and Telecommu-
nications Regulatory Author-
ity of Zimbabwe (Potraz)
acting director general Bax-
ton Sirewu said the current
regulatory set-up was not
ideal and was being reviewed
to improve the administra-
tion of the sector.
“The operator today, that is
the mobile banking operator,
has got one leg in the finan-
cial field regulated by the
Reserve Bank of Zimbabwe
(RBZ) and one leg in the
telecoms sector regulated
by ourselves, but for co-or-
dination purposes we meet
quarterly with the RBZ to
address any regulatory gaps
that maybe found or weak-
nesses that may be found in
the system,” he said.
“This matter is being
addressed, we are contin-
uously improving the way
mobile services are provided
and are regulated in Zimba-
bwe.”
Since the adoption of mul-
tiple foreign currencies in
2009, Zimbabwe has wit-
nessed a proliferation of
mobile banking systems
modeled on the one used in
Kenya called M-PESA.
The three mobile operators in
Zimbabwe - Econet, Telecel
and NetOne all offer mobile
banking services. The intro-
duction of mobile banking
services in Zimbabwe has
helped reach out to the
previously unbanked popula-
tion.- New Ziana●
8 news
Zim to improve mobile banking regulatory frameworks
· Farms
· Mines
· Businesses
· More!
VISIT
www.ramafrica.com
OR CALL
+263 4 870 580
We won’t let you
down! Delivered in
72hrs, countrywide!
NEED
FUEL?
Blend, Diesel, Paraffin
Tel: 04 852517 / 870580
admin@ramafrica.com
11. BH24 Reporter
HARARE – Apple authorised
re-seller, Solution Centre will
open a new branch in Arun-
del this week.
The newest information and
communications technology
available to homes, busi-
nesses and other organ-
isations is being brought
closer to the market with the
opening of the new high-
tech retail outlet in Arundel
Village.
The Solution Centre Arundel
branch opens on Thursday
March 31, providing access
to a wide range of ICT prod-
ucts and services, including
Apple hardware, software
and devices, for which the
company is the authorised
reseller in Zimbabwe.
“This is an exciting develop-
ment that will provide easy
access to all our products
and services, “ said Mr Paul
Georgeou, managing director
of the company.
“We already have a princi-
pal operation on the Enter-
prise Road in Harare, as
well as a branch in Hillside
in Bulawayo, but this is the
first wholly retail operation
that we have created and is
aimed at giving customers
access to the products and
services we provide to indi-
viduals and their homes, as
well as to businesses, educa-
tional institutions and other
organisations.”
He said Arundel was well
placed at the centre of Hara-
re’s northern suburbs, with
close proximity to various
shopping and office com-
plexes, schools, diplomatic
missions and NGO head-
quarters, and ease of access
would be matched by user-
friendly opening hours and
the variety of product on
sale.
Solution Centre is best
known for its connection to
the Apple brand, as it is the
authorised reseller of Apple
products and is authorised
as both a service provider of
workshop facilities and as a
training centre. The company
also provide other brands
of products and services to
the local market, including
those of Aruba Networks,
Bose and other leading ICT
brand names. The Arun-
del shop will sell hardware,
software, accessories and
peripheral items essential to
the easy and efficient use of
technology in daily living and
work.●
11 news
Solution Centre opens Arundel branch
Mr Paul Georgeou
14. HARARE -The mainstream
industrial index was flat at
98.18 on the back of low
activity after the Easter Hol-
idays.
Losses included Edgars,
which shed $0,0040 to close
at $0,0500 while beverages
giant Delta lost $0,0021 to
settle at $0,5629.
On the upside giant insurer
Old Mutual lifted $0,0200
to trade at $2,1000, while
seed producer SeedCo rose
by $0,0050 to $0,6400
and conglomerate Innscor
advanced by $0,0021 to
close at $0,1850.
Telecoms giant was also up,
closing $0,2420 higher after
adding a marginal $0,0004.
The mining index was also
unchanged at 19.53 as Bind-
ura, Falgold, Hwange and
RioZim all maintained previ-
ous price levels at $0,0100,
$0,0050, $0,0300 and
$0,1040 respectively- BH24
Reporter ●
ZSE14
Industrials end shortened week on a low
18. 18 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
29 March 2016
Energy
(Megawatts)
Hwange 591 MW
Kariba 421 MW
Harare 30 MW
Munyati 16 MW
Bulawayo 20 MW
Imports 0 - 300 MW
Total 1364 MW
• Analyst briefing - Old Mutual Zimbabwe, Steward Room, Meikles Hotel, March 30, 1430hrs
THE BH24 DIARY
19. WASHINGTON - The United
States said on Monday it
would press Nigeria in talks
this week to adopt a more
flexible foreign exchange
rate to boost growth and
investment in Africa's largest
economy.
US Assistant Secretary
of State for Africa, Linda
Thomas-Greenfield, told an
audience at the US Institute
of Peace that Nigeria should
ensure that the value of the
naira currency versus the US
dollar was "more realistic."
"While most people complain
about the possibility of there
being a devaluation, people
are already operating on a
devalued currency, and the
only people who are not,
are people who are doing it
officially," Thomas-Green-
field said.
"Our recommendation is,
and we will have discus-
sions about it ... that they
should look at the exchange
rate and try to make the
exchange rate more realis-
tic to what the value of the
naira is to the dollar," she
added.
She spoke before talks in
Washington to be launched
by Secretary of State John
Kerry on Wednesday and
which will focus on Nigeria's
economy, security and devel-
opment.
Nigeria faces its worst eco-
nomic crisis in decades as
the falling price of oil has
slashed revenues, prompting
the central bank to peg the
currency and introduce curbs
to protect foreign exchange
reserves, which have fallen
to an 11-year low.... - Reu-
ters●
regioNAL News19
US to press Nigeria on foreign exchange rate flexibility
JOHANNESBURG - South
Africa's rand was softer against
the dollar as trade resumed on
Tuesday after the long Easter
weekend, with dealers expecting
it to take direction mainly from
Federal Reserve comments in the
absence of local data.
At 0651 GMT, the rand was at
15,5295 versus the greenback,
0,48 percent weaker than its
previous close. Markets awaited a
speech by Federal Reserve Chair
Janet Yellen for signals on when
the US central bank is likely to
raise interest rates.
"The tone of the address will
largely dictate direction in coming
sessions," Standard Bank trader
Inshaan Omar said in a market
note.
Stocks were set to open largely
flat at 0700 GMT, with the JSE
securities exchange's Top-40
futures index dipping just 0,17
percent.
Government bonds weakened
slightly, and the yield for paper
due in 2026 edged up 1 basis
point to 9,38 percent
- Reuters●
Rand softer ahead
of Fed speech
20. Oil declined for a fourth day
before weekly US govern-
ment data forecast to show
increasing crude stockpiles
kept supplies at the high-
est level in more than eight
decades.
Futures lost as much as
1,7 percent in New York
after slipping 0,2 percent
Monday. Inventories prob-
ably increased by 3 million
barrels last week, a Bloomb-
erg survey shows before an
Energy Information Admin-
istration report Wednesday.
That would be a seventh
weekly gain. Indonesia will
attend a meeting of major
oil exporters in Doha next
month to consider an output
freeze, according to Energy
and Mineral Resources Minis-
ter Sudirman Said.
“The size of the crude inven-
tories combined with the fact
we’ve seen a significant rally
in prices is going to limit
gains,” Ric Spooner, a chief
analyst at CMC Markets in
Sydney, said by phone. “Oil
is in a short-term down-
trend.”
Oil tumbled to a 12-year low
this year before rebounding
on speculation the global
surplus will ease as US out-
put declines. Saudi Arabia,
Russia, Qatar and Venezuela
agreed last month they
would cap production at Jan-
uary levels if other produc-
ers followed suit to tackle a
global oversupply.
West Texas Intermediate for
May delivery fell as much as
66 cents to $38,73 a barrel
on the New York Mercantile
Exchange and was at $38,85
at 8:46 a.m. London time.
The contract lost 7 cents to
close at $39,39 Monday. A
fourth day of declines would
be the longest run of losses
since Feb. 11.
U.S. Stockpiles
Brent for May settlement slid
as much as 66 cents, or 1,6
percent, to $39,61 a barrel
on the London-based ICE
Futures Europe exchange.
The contract fell 17 cents to
$40,27 Monday, the lowest
close since March 15. The
global benchmark crude was
at a premium of 90 cents to
WTI.
US crude inventories
increased to 532,5 million
barrels through March 18,
according to data from the
EIA. Gasoline stockpiles
probably dropped by 2,5
million barrels last week,
according to the median
estimate in the Bloomberg
survey. That would be a sixth
weekly decline.
Output freeze and oil mar-
ket news:
• Prices need to be at a sus-
tainable level that is attrac-
tive for producers without
creating pressures, Indone-
sia’s Said told reporters in
Jakarta.
• Crude at $45 to $50 a bar-
rel is enough to encourage
India’s own exploration with-
out squeezing fuel consum-
ers, Oil Minister Dharmendra
Pradhan said in an interview
Monday.
• Commodities includ-
ing oil and copper are at
risk of steep declines as
recent advances aren’t fully
grounded in improved fun-
damentals, according to a
report from Barclays Plc. –
Bloomberg●
internatioNAL News20
Oil drops a 4th day as US crude stockpiles seen expanding glut
21. By Dan Steinbock
As the Eurozone is amid
secular stagnation, its old
fiscal, monetary and bank-
ing challenges are escalat-
ing, along with new threats,
including the Brexit, demise
of Schengen, anti-EU opposi-
tion and geopolitical friction.
According to Dan Steinbock,
Brussels can no longer avoid
hard political decisions for or
against an integrated Europe,
with or without the euro.
Since 2010, European leaders
have been deferring the hard
decisions. Occasionally, there
have been political reasons
for delays. Yet, times of cri-
ses cry for leadership.
Economically, procrastination
has sustained the sem-
blance of continuity in the
short-term. Politically, it has
maintained the status quo of
“integration without common
institutions”, which is unsus-
tainable. Strategically, it has
resulted in misguided mili-
tary policies that threaten to
undermine what is left of the
unity of the region.
Time is out and delays are no
longer an option.
From cyclical contraction
to secular stagnation
The numbers are not encour-
aging. While the Eurozone
(EZ) is amid a fragile cycli-
cal rebound, it is barely
breathing as quarterly real
GDP growth is at barely 0,3
percent and inflation close
to zero. After half a decade
of economic pain, the region
will struggle for 1,5 percent
growth. In the coming dec-
ade, that will slow close to 1
percent.
When the global financial cri-
sis hit Europe, its core econ-
omies – Germany, France, the
UK and Italy – relied on rela-
tively generous social models
for cushion, but structural
challenges were deferred. In
spring 2010, the European
sovereign debt crisis was still
seen as a liquidity issue and
a banking crisis. As Brus-
sels launched its €770 billion
“shock and awe” rescue
package, it was expected to
stabilise the EZ.
However, Brussels and the
core economies failed to pro-
vide adequate fiscal adjust-
ment, which made mass
unemployment a lot worse
and continues to penalise
confidence, demand and
investment. Today, unem-
ployment has decreased
to 10,3 percent in the EZ
(and to 8,9 percent in the
EU, respectively). However,
underemployment remains
prohibitively high and youth
unemployment amounts
to 23 in the EZ and is far
higher in crisis countries,
such as Greece (48 percent),
Spain (45 percent) and Italy
(39 percent). In the future,
Europe must cope with a ‘lost
generation.’
Initially, the small crisis
economies (Greece, Portugal)
were seen as “exceptions”
because they were each
less than 3 percent of the
Eurozone GDP. As the crisis
spread to Italy and Spain
and the ailing economies
accounted for almost 30 per-
cent of the EZ economy, bail-
out packages were no longer
a viable option. However,
while the urgency for struc-
21 analysis21 analysis
The European 'Union'?
22. 22 analysis22 analysis
tural reforms has increased
dramatically, they continue to
be deferred.
How has deleveraging suc-
ceeded? Well, it hasn´t,
despite the rhetoric of
austerity. As percentage of
the EZ GDP, general govern-
ment gross debt soared from
70 percent to 93 percent in
2013. It remains at threat
levels in Greece (169 per-
cent) and Portugal (130
percent) and excessively high
in Italy (135 percent) and
France (135 percent), even
Spain (98 percent).
If Brussels had faced head-on
its threats – fiscal, monetary,
liquidity, banking and com-
petitiveness challenges – in
2010, it would have been bet-
ter positioned to do so. The
EU was still stronger econom-
ically, more united politically
and wary strategically. Now
that it must face still new
challenges, it is weaker eco-
nomically, polarised politically
and assertive strategically. In
addition, that does not bode
well for the future.
New threats
The “Brexit”
In February, Prime Minis-
ter David Cameron struck
a deal with EU ministers on
revised terms for UK mem-
bership in the EU. The British
referendum on whether to
stay in the EU or to Brexit
will be held on June 23. In
media, the EU issue has been
overwhelmed by domestic
politics over the post-Cam-
eron future. When London's
Mayor Boris Johnson gave his
support to the Leave vote,
he became Tory activists’
favorite to lead the Conserva-
tive party.
Meanwhile, the UK pound
plunged to a seven-year low
against the dollar. If the
Brexit advances, this is just
taste of things to come. Even
if the surprise resignation of
Cameron’s Work and Pensions
Secretary Iain Duncan Smith
may have had more to do
with his personal ambitions
than anti-EU position, it did
deal another major blow to
Cameron.
British EU-critics argue that
the UK is suffering from
Brussels’s excessive business
regulations and bailouts of
financially fragile countries.
In contrast, EU-support-
ers believe the UK benefits
greatly from the ease of busi-
ness to the huge EU market,
the flow of young migrants
to counter-balance the UK’s
greying population and EU’s
contribution to national secu-
rity.
Cameron’s revised EU deal
won adjustments to block
security-risk migrants, limits
of welfare benefits to EU
migrant workers, and reim-
bursement for British contri-
butions on future Eurozone
bailouts.
The negotiated economic ben-
efits will also allow London
to block amendments to new
regulations. Last year the
UK also won a court case
against the ECB, which would
have limited the clearing of
EZ transactions to within the
EZ (a disadvantage to Brit-
ish banks over German and
French rivals.
Despite close polls, these
positives will be used as
evidence that the UK and the
City can thrive only with the
EU. However, with the British
referendum, Cameron opened
the Pandora’s Box not just for
a potential Brexit but also to
a major shakeup of the EU
with the loss of a core econ-
omy, a major budget contrib-
utor, global financial hub and
a defense dynamo. That has
potential for a series of nega-
tive feedbacks within the EU.
Demise of Schengen
While it took 25 years to
consolidate the Schengen
agreement, which abolished
the EU’s internal borders,
the treaty has been severely
compromised by a refugee
crisis in less than a year. Its
reassessment began amid the
2015 influx of some 1.2 mil-
lion migrants, many of them
from Syria. to be continued
- EconomyWatch●