Zim News Blog -NEWS NETWORK

VICTORIA FALLS — Old Mutual Limited’s first trading session on the Victoria Falls Stock Exchange delivered a striking early test of market efficiency, with the insurer closing just 0.75% below its Johannesburg Stock Exchange equivalent after a wide-ranging opening session.

The US dollar-denominated, according to Equity Axis, Old Mutual counter closed at US$0.7817 on Wednesday after 55 trades involving 46,402 shares generated turnover of US$36,274.44.

The session average of approximately US$0.7817 was virtually identical to the official closing price, suggesting that trading activity converged rapidly around a common market valuation despite substantial volatility during the initial price-discovery process.

Wide opening range tests investor appetite

Old Mutual traded between US$0.75 and US$1.20 during the session, representing a 60% difference between the day’s lowest and highest traded prices.

The unusually wide range was facilitated by VFEX’s decision to suspend its normal price limits for the counter on its first trading day.

With no previous VFEX closing price following Old Mutual’s return to the domestic market, the unrestricted opening session allowed buyers and sellers to establish an initial market-clearing price.

The normal 20% daily price limit will apply from the second trading session.

The volatility was therefore less an indication of an established valuation and more a reflection of the market’s attempt to determine where the Zimbabwean order book should initially price a security whose primary market is in Johannesburg.

Old Mutual had been suspended from trading in Zimbabwe since 2020, meaning Wednesday’s session represented the first opportunity in several years for local investors to establish a fresh domestic price.

Market converges with Johannesburg valuation

The most significant feature of the debut was ultimately not the intraday volatility but the closing convergence with Johannesburg.

Old Mutual closed at R12.75 on the JSE on Tuesday, its final session before the VFEX debut. Using the Reserve Bank of Zimbabwe’s Wednesday mid-market exchange rate of R16.1887 to the US dollar, the JSE price translated to approximately US$0.7876.

Against that benchmark, the VFEX closing price of US$0.7817 represented a discount of only about 0.75%.

The relationship remained similarly close after Wednesday’s JSE trading session. Old Mutual fell 1.49% to R12.56, translating to approximately US$0.7759 at the same exchange rate. The VFEX closing price was consequently about 0.75% above the corresponding JSE valuation.

For investors, the narrow differential provides an early indication that arbitrage considerations and cross-market valuation are already influencing price formation on VFEX.

Liquidity becomes the next test

While the price relationship was encouraging, the more important question for the market will be whether sufficient liquidity develops around the Old Mutual counter.

The final transaction on Wednesday was completed at US$0.76, below the session’s average and roughly 2% below the dollar equivalent of Old Mutual’s JSE closing price.

That divergence illustrates why Wednesday’s closing level should not yet be interpreted as a definitive long-term valuation.

The first session involved only 46,402 shares, while Old Mutual traded approximately 19.9 million shares worth R251.8 million on the JSE during the same session.

The enormous difference in trading volumes highlights the structural gap between VFEX and the company’s primary market.

For VFEX, however, the significance lies not in matching JSE liquidity immediately but in establishing a credible local US dollar price around which deeper trading can develop.

Old Mutual makes an early impact on VFEX

Despite the relatively modest capital value traded, Old Mutual generated the second-highest number of equity trades on VFEX during the session, recording 55 transactions compared with 60 for Innscor Africa.

Its US$36,274 turnover represented approximately 7.4% of total VFEX equity turnover, although its traded value remained behind Innscor Africa, Axia Corporation and First Capital Bank.

The figures suggest that the counter attracted meaningful investor interest even though the available liquidity remains substantially below that of the company’s JSE listing.

This distinction is important. A high number of transactions does not necessarily translate into deep liquidity, particularly when the volume of shares changing hands remains relatively small.

Thursday becomes the real liquidity test

Wednesday’s unrestricted session effectively completed the first stage of price discovery. From Thursday, investors will be trading within the exchange’s normal price-limit framework.

Based on the US$0.7817 closing price, the 20% limit implies an indicative trading range of approximately US$0.6254 to US$0.9380.

The behaviour of the order book within those boundaries will provide a more meaningful assessment of the counter’s underlying demand and supply.

If trading continues to cluster around the JSE-equivalent valuation, it would strengthen the argument that VFEX is capable of efficiently pricing internationally traded securities in US dollars.

If significant premiums or discounts emerge, however, the divergence could point to liquidity constraints, local investor sentiment, foreign-exchange considerations or differences in the supply and demand dynamics between the two markets.

A significant test for VFEX

Old Mutual’s return is therefore important beyond the performance of a single counter.

The listing provides VFEX with an opportunity to demonstrate whether it can attract liquidity into a globally recognised Zimbabwean blue-chip security while providing domestic investors with direct access to a US dollar-denominated asset.

The first session produced an encouraging outcome: after an exceptionally wide opening range, the market ultimately settled within 1% of the company’s JSE valuation.

That does not yet establish deep or efficient two-way liquidity. But it does provide an early indication that price discovery on VFEX can converge with an external primary market when investors have sufficient freedom to establish a price.

The next challenge is to turn that initial price convergence into sustained liquidity, tighter spreads and deeper institutional participation.

For VFEX, that may prove more important than Wednesday’s headline closing price.

The post Old Mutual VFEX Debut Ends Near JSE Parity After Volatile First-Day Price Discovery appeared first on The Zimbabwe Mail.

HARARE — Zimbabwe’s external sector is showing signs of strengthening, with foreign currency receipts surging nearly 48% in the first half of 2026 while inflation in local-currency terms continued to moderate, pointing to improving macroeconomic stability.

Foreign currency receipts rose 47.8% year-on-year to a record US$10.72 billion in the six months to June, from US$7.25 billion during the corresponding period last year, according to the latest FBC Securities Economic Snapshot.

The sharp increase was driven primarily by stronger export earnings, alongside a significant rise in diaspora remittances and renewed foreign direct investment.

Export earnings drive foreign currency growth

Export proceeds accounted for the largest share of Zimbabwe’s foreign currency earnings, reaching US$7.53 billion, an increase of 90.7% compared with the first half of 2025.

The strong performance highlights the continued importance of mining and other export-oriented sectors to Zimbabwe’s external position, although it also reinforces the economy’s exposure to commodity prices and mineral production.

Diaspora remittances provided another significant source of foreign exchange, rising 41.4% to US$1.55 billion during the period.

Foreign direct investment also strengthened considerably, more than doubling to US$269.9 million, suggesting an improvement in investor appetite despite Zimbabwe’s longstanding challenges around policy certainty, infrastructure and access to finance.

The combined increase in exports, remittances and investment helped push the country’s current account into a surplus of approximately US$616 million, strengthening the availability of foreign currency within the economy.

ZiG inflation continues to fall

The improvement in external liquidity has coincided with a marked moderation in inflation.

Annual inflation measured in Zimbabwe Gold (ZiG) declined to 3.2% in July, from 4.7% in June, while monthly inflation fell to 0.1% from 0.6%.

The latest reading represents a dramatic improvement from July 2025, when annual ZiG inflation reached 95.8%, underscoring the extent of the disinflation achieved over the past year.

FBC Securities attributed the improvement to a combination of prudent monetary management, fiscal discipline and relative exchange-rate stability.

The moderation in price pressures is particularly significant for businesses, as greater currency and price stability improves the ability of companies to budget, price goods and services and make investment decisions over longer time horizons.

Growth outlook remains positive

Against the backdrop of stronger foreign currency inflows and improving price stability, FBC Securities expects Zimbabwe’s economy to expand by approximately 5% in 2026.

The projected growth rate would reinforce expectations that the economy is moving towards a more stable expansion following years of severe monetary and fiscal volatility.

However, the recovery remains vulnerable to several structural constraints.

Power shortages continue to weigh on industrial production, while high debt levels constrain access to international financing. Climate-related shocks remain a significant risk to agriculture, and the economy’s heavy dependence on mineral exports leaves Zimbabwe exposed to fluctuations in global commodity prices.

From stabilisation to sustainable growth

The latest data suggest that Zimbabwe’s immediate macroeconomic picture is becoming more stable, but the next challenge will be converting that stability into sustained investment and productivity growth.

The surge in foreign currency receipts provides the economy with greater external liquidity, while lower inflation improves the operating environment for businesses and households.

However, sustaining the gains will require continued monetary and fiscal discipline, deeper investment in electricity and infrastructure, greater export diversification and policies capable of encouraging domestic value addition.

For Zimbabwe, the key economic test is therefore shifting from stabilisation to structural transformation.

The combination of record foreign currency receipts, a current-account surplus, rising investment and sharply lower ZiG inflation provides a stronger platform for growth. Whether that platform translates into durable industrial expansion will depend on the country’s ability to address its underlying energy, debt, productivity and diversification constraints.

The post Zimbabwe Foreign Currency Receipts Jump 48% to US$10.7 Billion as ZiG Inflation Eases appeared first on The Zimbabwe Mail.

The Zimbabwe Revenue Authority (Zimra) was prejudiced of approximately US$6.9 million after some of its employees allegedly colluded with clearing agents to manipulate a customs system used to process imported goods, exposing significant weaknesses in the authority’s revenue-collection controls.

The loss comprised ZiG171.77 million, equivalent to about US$6.42 million at the official exchange rate of ZiG26.77 to the US dollar, and a further US$479,684.

The findings are contained in the Auditor-General’s 2025 report on state-owned entities and parastatals.

According to the Auditor-General, the fraud involved unauthorised manipulation of bank-originated credit entries in Zimra’s prepayment-account system, allowing transactions relating to the clearance of imported goods to be processed without the required funds being properly accounted for.

“The authority was prejudiced of US$479 684 and ZiG171,77 million arising from fraudulent system breaches involving staff members in collusion with clearing agents in respect of clearing of goods using the prepayment account,” the Auditor-General said.

The report classified the incident as a financial loss and called on Zimra to strengthen its systems and internal controls.

Zimra acknowledged the breach, saying the prepayment account had been exploited through unauthorised manipulation of credit entries originating from banks.

“The prepayment account within the system was exploited through unauthorised manipulation of bank-originated credit entries in the system,” management said.

In response, Zimra said it had discontinued the use of prepayment accounts with effect from February 7, 2026, replacing them with a cash declaration option for commercial clearances.

“The authority has discontinued the use of prepayments accounts effective February 7, 2026 and introduced a cash declaration option for commercial clearances as a measure to mitigate against the system abuse,” the authority said.

Zimra also said disciplinary measures had been taken against employees and clearing agents implicated in the fraud, while efforts to recover the lost revenue were continuing.

“Corrective action has been taken against the staff and clearing agents involved in the fraud and recoveries of lost revenue are underway,” management said.

The incident comes as Zimbabwe increasingly relies on digital systems to administer taxes, customs duties and other government revenues.

The Auditor-General warned that the breach was inconsistent with requirements for public entities to maintain effective, efficient and transparent systems of financial and risk management and internal controls.

Despite the fraud, the audit found that Zimra had made progress in addressing weaknesses identified in previous audits.

Of 14 outstanding findings followed up from earlier reports, nine had been addressed, while 12 were partially addressed and one remained unresolved, according to the audit findings.

Zimra is also continuing with the automation of its revenue-management systems, with full automation of its processes expected to be completed during 2026.

The introduction of a Risk Management Module into the Tax and Revenue Management System (TaRMS) in 2025 also resolved an earlier problem involving revenue classification.

However, the audit identified other outstanding issues at the revenue authority.

The Auditor-General said Zimra had not yet received all the vehicles it had procured and was still pursuing enforcement of a related contract through a High Court order.

The latest findings highlight the financial and governance risks facing revenue authorities as they increasingly rely on automated platforms, particularly where system access and internal controls can be compromised by insiders working with external parties.

Source – The Independent

The post Zimra loses millions in customs-system fraud appeared first on The Zimbabwe Mail.

Roki’s viral money dispute revives questions about a career shadowed by controversy A confrontation caught on camera has placed Zimbabwean Urban Grooves star Rockford “Roki” Josphats back at the centre of public attention. The facts behind the video remain incomplete, but the episode has reopened old questions about his relationships, legal troubles and repeated public […]

The post All Private Parts Exposed: Video of controversial musician Roki fighting with a naked woman over non-payment goes viral (VIDEO) first appeared on My Zimbabwe News.

LUSAKA — Zambia’s presidential election is unfolding against the backdrop of a much bigger contest over the country’s economic future, with its vast copper resources placing the southern African nation increasingly at the centre of competition between China and the United States.

President Hakainde Hichilema is seeking a second five-year term after taking office in 2021, when Zambia was struggling with a sovereign debt crisis and had defaulted on its external obligations. His administration has since overseen a debt-restructuring process, fiscal reforms and efforts to attract new investment into the mining sector.

But the election is about more than whether Hichilema’s economic programme deserves another term. It is also taking place as global powers increasingly view Zambia through the strategic importance of copper and other critical minerals required for electric vehicles, renewable energy, power infrastructure and advanced manufacturing.

Copper puts Zambia on the geopolitical map

Zambia is one of the world’s major copper producers, making the country strategically important to both Beijing and Washington.

China has established a substantial presence in Zambia’s mining industry and broader economy, while the United States has increasingly sought partnerships with African countries capable of supplying critical minerals and reducing dependence on Chinese-controlled supply chains.

The geopolitical importance of Zambia has consequently increased as demand for copper rises alongside the global energy transition.

For China, Zambia is part of a wider African economic network involving mining, processing, infrastructure, trade and investment.

For Washington, the country offers an opportunity to diversify critical-mineral supply chains away from China while strengthening American commercial and strategic influence in Africa.

That makes the outcome of Zambia’s election relevant well beyond Lusaka.

Hichilema’s economic record faces the voters

Hichilema is campaigning on the argument that his government inherited an economy in crisis and has restored macroeconomic stability.

His administration has pointed to fiscal consolidation, debt restructuring, increased investor confidence and stronger economic prospects as evidence of progress.

The IMF has projected medium-term growth of around 5.3%, supported partly by mining investment, agriculture and improvements in electricity generation. The Fund has also described Zambia’s public debt as sustainable, although the country remains at high risk of overall and external debt distress and continued fiscal discipline is considered essential.

Hichilema’s government has also set an ambitious target of doubling the size of the Zambian economy, ending load-shedding and creating millions of jobs.

But the economic recovery has not eliminated public frustration.

High living costs, unemployment, electricity shortages and concerns about whether ordinary Zambians are benefiting sufficiently from the country’s mineral wealth remain important electoral issues. The copper sector has become particularly sensitive because expectations of a mining boom have raised questions about who will ultimately capture the additional wealth.

The copper question

The central economic question facing the next government is increasingly becoming what Zambia does with its copper rather than simply how much copper it produces.

International investors have announced major mining commitments, with almost US$10 billion reportedly earmarked for the sector and plans to substantially increase production by 2031.

That creates an opportunity to move beyond the traditional model of exporting mineral concentrates and develop greater domestic capacity in processing, refining, manufacturing and mining-related services.

For Zambia, the distinction is crucial.

A larger copper industry can increase export earnings and government revenues. But deeper domestic value chains could create industrial capacity, skilled employment, technology transfer and a broader manufacturing base.

This is precisely why the country’s mineral strategy has become intertwined with the geopolitical competition between China and the United States.

China’s established position

China enters the contest with a considerable advantage: it already has deep commercial relationships with Zambia.

Chinese companies have been involved in Zambian mining for decades, while Chinese capital, contractors, infrastructure companies and trading networks have established extensive links with the country’s economy.

China’s interest is also not limited to ownership of mines. Its influence across critical-mineral supply chains extends into processing, infrastructure, logistics and markets.

For Beijing, maintaining reliable access to African copper is strategically important as China seeks to protect the industrial supply chains underpinning its manufacturing economy.

Washington seeks an alternative supply chain

The United States, meanwhile, is approaching Zambia through the increasingly strategic lens of critical minerals.

Washington’s objective is not necessarily to displace China overnight, but to develop alternative sources of supply and establish commercial relationships with mineral-producing countries.

The Trump administration’s emphasis on critical minerals has intensified this approach.

Yet US-Zambia relations have also encountered difficulties. Lusaka suspended negotiations over proposed multi-billion-dollar US agreements covering health services and minerals after Zambian officials objected to what they described as unacceptable American demands and preferential treatment.

That episode illustrates the increasingly transactional nature of global competition for African minerals.

Zambia is seeking investment, technology, infrastructure and markets while trying to preserve room to determine how its natural resources are developed.

Lusaka wants partnership, not another dependency

The election therefore presents Zambia with a delicate diplomatic balancing act.

The country does not necessarily have to choose between Washington and Beijing.

Instead, the challenge is to extract maximum economic value from competition between them.

Chinese companies can bring capital, mining expertise, infrastructure and access to Chinese markets. American and Western investors can provide alternative capital, technology, processing expertise and access to markets seeking to diversify critical-mineral supply chains.

For Zambia, the strongest negotiating position may lie in having multiple competing investors rather than becoming dependent on any single geopolitical bloc.

That could give Lusaka greater leverage over investment terms, local processing requirements, employment, taxation and infrastructure development.

A vote with consequences beyond Zambia

The election is therefore taking place at an important moment for the global copper market.

Zambia is not simply choosing a president. It is deciding how the country intends to manage the next phase of its economic development after debt restructuring and whether the expected mining boom can translate into broader industrialisation.

The next government will have to balance foreign investment against national interests, expand electricity generation, improve transport infrastructure and ensure that mining revenues translate into tangible economic opportunities.

At the same time, it will have to navigate an increasingly competitive international environment in which copper is no longer merely a commodity — it is a strategic asset.

For China, Zambia represents an established economic relationship and an important source of minerals.

For the United States, it represents an opportunity to build a more diversified critical-minerals supply chain.

For Zambia itself, the stakes are arguably even higher: whether its copper wealth finally becomes the foundation for industrial transformation rather than another cycle of exporting raw materials while importing finished products.

The election will determine who gets to make those choices for the next five years.

The post Zambia Election Puts Copper, China and US Rivalry Under the Spotlight appeared first on The Zimbabwe Mail.