Zim News Blog -NEWS NETWORK

SIX miners, four of them from one family, are feared dead after the mine they were working in collapsed after heavy rains pounded Matshetshe, Esigodini in Matabeleland South last Tuesday. By yesterday, the miners had not been rescued or their bodies recovered after rescue efforts were stalled as the area is “still too dangerous to […]

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Source: Industry revels in sustained recovery | Sunday Mail (Top Stories)

Sunday Mail Reporters

Continued stability of the local currency and increased foreign currency allocations from the auction system, which was launched on June 23 this year, has pushed capacity in some local industries to more than 60 percent, as recovery and growth becomes entrenched.

Despite headwinds caused by the coronavirus, which has disrupted global supply chains and affected economic activity, some local companies have managed to capitalise by covering the market that used to be supplied by foreign firms.

The Government’s major infrastructural projects, which have been underpinned by investment in dam and road construction and other civil works, have significantly lifted performance of the construction sector.

However, it is the decision to engage local contractors that has become impactful.

In its latest trading update, Masimba Construction (formerly Murray and Roberts) said its order book is being boosted by Government projects.

“The volume of works, encompassing roads, mining and housing infrastructure, increased significantly in the quarter under review. A number of works, including the Skyline to Chimanimani road, were completed in the period while the rest are progressing well.”

In addition to being one of the five contractors that are rehabilitating the Harare-Beitbridge road, Masimba Construction is involved in constructing some of the roads damaged by Cyclone Idai in Manicaland province.

As activity in the construction sector has picked up, demand for cement has increased significantly.

PPC recently reported that cement sales volumes had risen by 40 percent in the July to September period, spurred by “large infrastructural projects in Zimbabwe”.

It is the same trend for Lafarge Cement Zimbabwe.

“The business recorded solid gross profit margins exceeding the set target. This performance is a result of intense focus on cost rationalisation. The foreign currency exchange rate ushered in pricing stability as the market continues to see wider usage of the US dollar, especially in the formal market. Foreign currency receipts grew substantially in the quarter. Consequently, the company was able to meet its foreign currency obligations. The business remains profitable,” said the company in its third-quarter trading update.

The recovery has spread to consumer-facing businesses, where demand is recovering.

Delta Corporation — the country’s biggest beverages manufacturer — said if the ongoing stability is sustained, this would be “welcome for the post-Covid-19 recovery of the economy”.

“The relaxation of regulations allowing use of foreign currency for domestic transactions and the introduction of the foreign currency auction system has to date stabilised both the exchange rate and inflation,” said the company’s chairperson, Mr Canaan Dube, in a statement accompanying the company’s recent financial results.

The same trend is being experienced by other players in the sector.

Schweppes Holdings Africa Ltd group managing director Mr Charles Msipa said “prices of goods and services have been more stable since July 2020”.

“The introduction of the foreign currency auction system has enabled us as well as our raw material suppliers in our value chain to access foreign exchange to secure imported raw material in a transparent and compliant manner. It has reduced volatility in exchange rates as a result of which inflation is moderating and prices of goods and services have been more stable since July 2020 compared to first half 2020,” he said.

“We are able to price our products with confidence that we can replace imported raw material. All these factors have been critical enablers for our business recovery from a difficult April-June quarter to an improved July-September quarter in terms of stock levels and sales volumes.”

Consumer spending has increased for non-food items, with TV Sales & Home, which retails household goods, registering a 48 percent growth in sales volumes in the three months to September compared to the same period a year ago.

Confederation of Zimbabwe Industries (CZI) statistics indicate that spending on non-food items rose from 26 percent in August to 46 percent in September and October.

Forex availability

Most foreign currency needs from businesses have been met from the auction system, which was launched on June 23 this year.

Reserve Bank of Zimbabwe (RBZ) injected US$112 million for the month of October alone, and US$58,8 million has been allocated from the two auctions that have been held so far this month.

Industry contends it needs US$100 every month to import raw materials.

Tuesday’s US$31,8 million allocation is the highest since the auction began.

Overall, US$437 million has been distributed to the market over the past 21 auctions, with most of the allocations going towards procurement of raw materials for industry.

While auction now accounts for 80 percent of local foreign currency needs, banks have, however, also begun trading with businesses, raising expectations of consistent and sustained supplies to industry.

The greenshoots of recovery were revealed in a recent study by the Ministry of Industry and Commerce, which covered sectors such as food, drink, tobacco, leather and leather products, textiles and clothing, electricals, chemicals and packaging.

In Bulawayo, capacity in some of the companies had risen to as much as 60 percent.

In Midlands province, Bata Zimbabwe, Dendairy, Jinan and Sino Zimbabwe acknowledged the impact of the auction system and stability.

Fertiliser manufacturer Sables is on course, producing 7 000 tonnes of ammonium nitrate after accessing US$2,9 million from the auction.

Industry and Commerce Minister Dr Sekai Nzenza said: “Overall, the manufacturing sector is on a strong rebound, anchored by a stabilising macroeconomic environment brought about by a stable exchange rate, supportive and predictable Government policies, political will and leadership, and synergy between Government and the private sector as evidenced by Government’s policy for a private sector-led growth.”

Positive results in the manufacturing sector, she added, stemmed from the successful implementation of the Zimbabwe Industrial Development Programme (2019 -2023) and deliberate efforts to increase production and enhance competitiveness, value addition and beneficiation of agricultural produce and minerals.

Companies that have benefited from the disruption of global supply chains include Southerton-based Twine and Cordage, which has increased its exports of tobacco twines, butcher twines and shop twines, mutton cloth, shade netting and braided ropes to Canada, Malawi Mozambique, South Africa, Tanzania, Uganda and Zambia.

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Source: GMB wraps up inputs distribution | Sunday Mail (Top Stories)

Wallace Ruzvidzo

Sunday Mail Correspondent

Grain Marketing Board (GMB), which has distributed 85 percent of inputs under the Climate-Proofed Presidential Inputs Scheme for the 2020/2021 summer cropping season, plans to wrap up the programme this week.

Government has since released all the funds needed for the exercise.

Lands, Agriculture, Water and Rural Resettlement Permanent Secretary Dr John Basera told The Sunday Mail that inputs distribution was likely to be concluded before month-end.

“For the first time, over 80 percent of the targeted households now have all their inputs. We are on course to finish inputs distribution before the end of November. We are over 80 percent in deliveries in both cotton and Pfumvudza programmes.

“We have since availed money to GMB for all the logistics and onward distribution of inputs to farmers from GMB depots to ward level,” he said.

“What is more encouraging is the excitement by farmers and all stakeholders. The adoption rates are incredible and encouraging.”

By Friday, 10 011 tonnes of seed had been handed over to farmers, with maize seed accounting for 7 953 tonnes, while 1 302 tonnes of soya seed had been distributed.

Traditional grain seed and other seed make up the rest.

In addition, 82 292 tonnes of fertiliser, including 54 400 tonnes of Compound D, 13 153 tonnes of Ammonium Nitrate and 14 143 tonnes of lime, had been released.

Agricultural Technical and Extension Services (Agritex) acting director Mr Stancilae Tapererwa said they had trained 1,9 million households, surpassing the target by more than 100 000.

“Nationally, we were targeting 1,8 million households but we have surpassed that and managed to train 1,9 million households, so if there is adequate rainfall, these will all be food self-sufficient while able to deliver their harvest to the GMB,” he said.

GMB general manager Mr Rocky Mutenha said they had been facing a few challenges as some farmers had not done their land preparation on time.

“There are limited transporters to distribute inputs to ward level as the same trucks were also moving maize for social welfare programmes.

“Inputs are being given to farmers  who will have dug holes and some farmers are not yet ready, hence cannot be given inputs. Suppliers are also overwhelmed as they have to supply Command Agriculture at the same time supplying Pfumvudza, cotton inputs and private retail shops,” he said.

Zimbabwe Farmers’ Union director Mr Paul Zakariya said distribution of inputs was in its final stages and some farmers had already planted with the first rains that were experienced across the country last week.

Meanwhile, Government is intensifying efforts to decentralise soil testing services to all provinces for easy access by farmers.

The programme involves countrywide soil testing and application of lime to sweeten acidic soils and consequently improve fertiliser uptake efficiency (FUE) and yields.

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LATE businessman Genius Ginimbi Kadungure’s security guards unleashed dogs on villagers who are his neighbours in Domboshava on the night before his burial. This was revealed by his uncle, who is also the headman in the area who said it was not proper for the guards to set dogs on his people as they were […]

The post 3 people injured at Ginimbi's funeral, Sabhuku Kadungure breathes fire: Honestly, I am not happy first appeared on My Zimbabwe News.

Source: Zim set for rebound | Sunday Mail (Top Stories)

Lincoln Towindo

Deputy News Editor

ZIMBABWE is on course to an unparalleled economic rebound built on the foundations of Government’s reform programme, which has stabilised the economy over the second half of the year, President Mnangagwa has said.

In an address which touched on themes ranging from ruling party zanu pf party’s internal politics and socio-economic issues, to a specially convened Mashonaland East Provincial Coordinating Committee (PCC) meeting in Marondera yesterday, the President said the country is on firm ground for a rebound.

Government will not be deterred by economic sanctions, which have deprived the country of international financial support, but will, in fact, harness local resources for development, said President Mnangagwa,

Interventions and reforms on the macro-economic front over the last two years have brought indisputable evidence that the country is moving forward.

“The 2019 National People’s Conference held in Goromonzi and the resolutions made there, urged us to strengthen the party and to remain focused and united towards growing as well as modernising, industrialising and developing every sector of our economy,” said the President.

“Under the Second Republic, we are about action, action and action; production, production and production, not just talk, we are on the move. We are moving forward, success is now evident, even if some newspapers are desperate to paint a sad picture, we will continue to succeed.”

Successive budget surpluses recorded by Treasury have seen Government directing resources towards capital projects and social safety nets.

Zanu PF and Government were action-oriented and geared to deliver growth development.

“In spite of the sanctions we are delivering visible results. The Transitional Stabilisation Programme has delivered.

“I commend the party for denouncing sanctions on 25 October. Africa and the progressive world stood with us in calling for the lifting of the sanctions,” said President Mnangagwa.

He said the resolution by Sadc Heads of State and Government to declare October 25 as a day to show solidarity with Zimbabwe against economic sanctions was historic.

“For the first time in nearly 20 years, SADC stood together and made a resolution in Dar es Salaam and denounced sanctions in all SADC capitals. We thank them for the support. Our economy is now on the move. We have achieved a number of milestones.

“Successful implementation of the TSP, economic reforms, prudent fiscal discipline and good stewardship to public resources has enabled Government to direct resources towards national development and capital projects.”

The Foreign Currency Auction System introduced in June, said the President, has stabilised the exchange rate and prices of goods and services.

Furthermore law enforcement agents will be arresting individuals behind currency manipulation witnessed previously.

“We had a problem with inflation and what was happening in our economy until we discovered the source of the problem and we plugged those loopholes. Those who were behind the menace who have not yet been arrested will be arrested.

“We put restrictions on mobile money transfers and some of you were infuriated by that decision but that did not deter us because we knew that we were doing the right thing for our economy.”

He added: “When we unite and share ideas we can build this nation on our own.”

The President said the successful rehabilitation of over 100km of the Harare-Beitbridge Highway through local contractors was evidence that locals can develop the country.

Turning to the party’s internal politics, the President said the forthcoming District Co-ordinating Committee (DCC) elections would strengthen the party’s mobilisation machinery ahead of the 2023 harmonised elections.

He warned candidates to desist from name-dropping, adding that winners should be prepared to work hard for the party.

“As you are aware, we are implementing our decision to reintroduce DCCs hence the DCC elections will be held in all provinces. DCCs must facilitate mobilisation, organisation and co-ordination of our party members.”

The President said DCCs should never be used as a tool for power politics and power games.

“Candidates who stand in these elections must be prepared to work as servant leaders of the people.

“Those who are not prepared to work must not come near DCCs; we want leaders from the people and NO to the imposition of candidates.

“Party leaders and candidates are reminded to be disciplined as they conduct the affairs of the party or stand for positions within the structures. No name-dropping and do not put the party into disrepute.

“The DCCs are not the first elections and will not be the last. The party is bigger than all of us. Infiltrators, deceivers, opportunists, saboteurs and the G40 cabal must never be allowed to succeed.”

In his remarks, Vice President Dr Constantino Chiwenga counselled unity among party cadres.

Dr Chiwenga warned that party members engaging in factionalism were walking a “selfish, lonely and self-destructive path”.

“Let me categorically point out that we tend to gain more by being united than divided,” said the Vice President.

“There is no room for factionalism at any level in the party. We are a patriotic front that derives its strength from its unity.

“A party that cannot be undermined by being defined in the confines of individuals. I repeat, no factionalism in the party.

“Our loyalty is not to individuals, but to the bigger agenda which is larger than us; that of the party and the people of Zimbabwe.”

VP Chiwenga said name-dropping during DCC election campaigns was retrogressive and a source of divisions.

The event was attended by party chairperson and Defence Minister Cde Oppah Muchinguri, national political commissar Cde Victor Matemadanda and several senior Government and party officials.

Earlier in the day the President and his delegation toured Proton Bakery, the country’s third-largest bread manufacturer.

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