Category: zimbabwe

Blessings Chidakwa

Herald Reporter

The latest 100 per cent pay increase for civil servants is a match of the tabled proposal from workers during their National Joint Negotiating Council, the umbrella forum for discussions on pay and conditions of service within public service.

However, there are only three sticking issues under negotiation including the introduction of a US$30 clothing allowance, extending the teachers’ US$80 allowance to all sectors and aligning the effective pay date across the board.

The government awarded civil servants a 100 per cent salary increment, and reviewed the Covid-19 allowance which went up from US$200 to US$250 for all civil servants excluding those in the health sector.

Teachers were also offered an additional US$80 monthly teaching allowance with Government pensioners’ cushioning and Covid-19 allowance having been reviewed from US$90 to US$100.

Speaking after the third meeting of the round of salary negotiations with the Government yesterday, Zimbabwe Confederation of Public Sector Trade Union chairperson Mrs Cecilia Alexander said workers remain hopeful of the negotiations.

“Initially Government had proposed US$220 for Covid-19 and cushioning allowance and we pushed for US$250.

“On the Zimdollar component the Government wanted a 50 percent increment, but we pushed for 100 percent and on the teaching allowance the Government had offered US$50, but we pushed for US$80,” she said.

Mrs Alexander said despite the unresolved issues they remain optimistic.

“We remain committed to reaching an agreement once the sticking matters are conclusively favourably resolved. Our hope is as soon as possible,” she said.

In a statement, ZCPSTU president Mrs Alexander said a ‘few’ sticking issues unresolved are that effective date for the education sector and rest of the civil service be aligned to other sectors which have already been paid in February.

“The Government proposal to pay the education sector and the rest of the civil service in April has been totally rejected.

“In the same vein our demands on the clothing and US$80 which is inflation adjusted for the rest of the civil service should be considered,” she said.

Zimbabwe Nurses Association President Mr Enock Dongo yesterday said while they welcome the increase of Covid-19 and cushioning allowances for other workers they also want to be included.

Mr Dongo said all along they have been benefiting like other workers starting with the US$75 Covid-19 allowance, US$100 cushioning allowance making it US$175 across the body and even last time when it was increased to US$200 for everyone.

“The HSB said they also expect that the US$50 which has been increased was also supposed to be increased to health workers. No rationale for excluding them. Only US$ they are receiving is the US$200. We don’t receive anything outside that.

“Difference was on local currency health workers, not all of them only specific doctors, nurses, pharmacists. Those who do on-call, night duty and standby are the only category getting more Zim dollar since it was out of the normal working workers,” he said.

Mr Dongo said the difference which is on local currency not in US$ component has led to the outcry within the health profession.

He said they are yet to get a clarity from the Health Service Commission on the salary disparities.

Enacy Mapakame

Business Reporter

Zimbabwe Stock Exchange (ZSE) equities have maintained an upward trajectory, largely since January 2023, sustained by gains in the big cap stocks in a trend market watchers anticipate to continue in the short to medium term.

Big cap counters such as Delta, Econet, Hippo, OK Zimbabwe and Tanganda are expected to sustain gains on the Zimbabwe Stock Exchange (ZSE) while the likes of Simbisa and Innscor are seen driving both volumes and values on the Victoria Falls Stock Exchange (VFEX).

However, inflationary pressures and other shocks may offset further gains anticipated.

“We anticipate a general bullish sentiment to prevail on the stock market, however, gains may be moderated by inflation tightening measures being pursued by the Government,” said FBC Securities.

Investors may therefore consider stocks with a strong cash generating capacity, strong asset base with ability to stand the economic headwinds. For Delta, which is the biggest counter by market value on the ZSE, it boasts of a diversified product portfolio of local and international brands, inclusive of non-alcoholic beverages, sparkling beverages, lager beers and traditional beers.

The anticipated economic growth this year is also expected to boost demand for its products going forward.

“Ahead of envisaged growth in key economic sectors such as mining, agriculture and construction, we anticipate firm aggregate demand for the company’s products,” said FBC Securities.

As for Econet, it has maintained dominant market share and cemented its position as a market leader in the telecoms sector and has also launched the 5G network, which will improve customer experience and enhance product offering.

Additionally, the introduction of the multi-pricing regime will improve foreign currency generation and aid in covering the company’s core operational costs from infrastructure and software upgrades that require foreign currency.

On the agriculture side, Tanganda’s dominance in the local tea industry, and its presence in the growing macadamia and avocado markets set the basis for a favourable outlook on the company’s future prospects. 

The same can be said of Hippo, which is the biggest sugar producer in the country.

Said FBC Securities “While there is a possibility of price pressure in the exports market, we anticipate sustained demand in the local market on the back of improved consumer disposable incomes.

“Hippo Valley’s dominance in the market plus the anticipated increase in output drive a positive outlook for the company’s performance.”

Elsewhere, the VFEX has been struggling with liquidity challenges, but the increase in counters migrating from ZSE is seen enhancing liquidity.

“The increasing number of quality stocks listed on the VFEX will aid in boosting activity and improving liquidity.

“ Increased flow of foreign currency within the formal economy will also be key to driving activity on the VFEX with some of these funds directed to the stock market,” said FBC Securities. Innscor and Axia migrated to the US dollar denominated exchange this year. 

Hospitality group, African Sun and financial services provider FCB have also indicated plans to migrate in a trend analysts project to continue as companies seek to hedge against currency and exchange rate volatility.

Business Reporter

The Tobacco Industry and Marketing Board (TIMB) has introduced a Natural Air Curing System (NACS), also known as “chigaffa” to the local tobacco industry to prevent farmers from losing marketable volumes due to curing ban capacity limitations.

Air-cured tobacco is carried out by hanging the leaves in a well-ventilated barn, where they are allowed to dry over a period of between four and eight weeks. Air-cured tobacco is generally low in sugar content, which gives tobacco smoke a light, smooth, semi-sweet flavour. These tobacco leaves usually have a high nicotine content.

Once the curing process is complete, the tobacco is bundled and moved to a storage facility for grading before being moved to a processing facility for further drying.

According to tobacco leaf experts, the product can be stored for years, allowing it to mature and improve flavour. TIMB said the NACS would reduce farmers’ post-harvest losses and improve farmer viability, profitability, and sustainability.

“All along, we have been producing flue-cured tobacco (sometimes)…ripen all at once and (the) existing curing facilities may not (be able to) accommodate all the ripe tobacco,” said TIMB. “Instead of letting it rot, a farmer can do Chigaffa (system).”

Tobacco is Zimbabwe’s second biggest foreign currency earner after gold and is grown by nearly 150 000 smallholder farmers who were resettled under the land reform program. The introduction of the naturally dried Virginia tobacco is in line with the Tobacco Value Chain Transformation Plan, which seeks to increase tobacco output to 300 million kg by 2025.

It also seeks to grow revenue from the industry to US$5 billion, increase local funding of the crop to 70 percent and raise the level of value addition to 30 percent.

“By producing natural Virginia tobacco, which is a more sustainable product, using more natural systems, we believe the local tobacco industry will generate a wider range of qualities for customers on the global market, creating demand and encouraging investment for the ultimate longevity of the Zimbabwean tobacco industry,” said TIMB.

“The objective of this initiative is to explore the potential for more sustainable tobacco production via the NACS methodologies which use less fuel or consume fewer natural resources.

With the global anti-smoking campaign remaining a huge threat to Zimbabwe’s tobacco industry, TIMB chairman Patrick Devenish has called for sustainable ways of growing and curing the crop to avoid losing an increasingly sensitive customer base.

“We emphasise that this year and in the years to come we should cure our golden leaf sustainably,” said Mr Devenish during the official launch of the 2023 tobacco marketing season. “Sustainability involves looking at the climate as well as profitability.

 “Upgrade to efficient curing facilities that use less energy and desist from deforestation.

 “If you still have wood-fired curing facilities, use wood from sustainable woodlots.

“For your future operations, plant trees. At least 0,3 hectares for every hectare of tobacco grown.

 “There is a ready market for Zimbabwe-flavoured tobacco, but the World Health Organisation FCTC is fighting us to ban tobacco. The global demand for tobacco is going down and if we ignore the Sustainable Tobacco Programme we will lose our international off-takers and this venture will become unprofitable,” Devenish added.

With the new natural curing system, farmers’ cost of production will be reduced, and profitability increased, thereby reducing farmer incentive to side market. Tobacco merchant Atlas Agri will be partnering with the TIMB to spearhead this new initiative.