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The Nelson Chamisa-led MDC has reportedly called for a national council meeting tomorrow to start work on a roadmap to its elective congress at a time some of its top officials are said to be jostling for control of the main opposition party. Some members are reportedly accusing party leader Nelson Chamisa of manipulating the […]

CHITUNGWIZA, Zimbabwe (Reuters) – When police backed by armed soldiers arrived at the market in Chitungwiza in early February, Lilian Kashamba was reminded of her childhood during Zimbabwe’s war for independence. The 48-year-old widow, who [...]

Former President Robert Mugabe is celebrating a birthday for the second time since he was removed from office back in November 2017. There’s no doubt he’ll be missing the lavish celebrations of yesteryear, though. He turned 95 today Mugabe’s birthday still remains as a public holiday in Zimbabwe. It is officially known as Youth Day […]

Source: IPEC to announce compensation framework | The Herald February 21, 2019

Kudakwashe Mhundwa Business Reporter
Insurance and pensions regulator, IPEC, is soon expected to announce a compensation framework to policy holders whose claims were eroded during the conversion of values from Zim-dollar to the United States dollars during the February 2009 period.

Devaluation of pension and policy holder accounts during the hyper-inflation period has been detrimental to Zimbabwe`s pension industry with citizens disregarding the insurance services due to low confidence levels.

According to IPEC statistics for the period 2010 — 2018 only 9 percent of Zimbabweans have pension cover.

Acting IPEC Commissioner Blessing Kazengura, said lack of confidence was one of the major problems affecting the country`s pensions industry, mostly caused by the hyperinflation period, a situation that they expect to change once the commission issues the compensatory framework.

“Most people lost their savings during the 2008 hyperinflation of 2008. This coupled with the current challenges affecting the economy continue to impact on consumer confidence regarding the insurance and Pensions products.

“IPEC is working on providing a compensation framework as per the recommendations of the commission of inquiry. We believe that any amount that will go towards compensation will address the issue of low confidence levels.

“The commission will continue to monitor capital levels of insurance companies to ensure that they have underwriting capacity and enhance the ability to meet claims,” he said.

In 2015, former President Mugabe set up a Commission of Inquiry led by Retired Judge Justice George Smith to probe the conversion process used in converting pensions and insurance benefits following the dollarisation of the economy.

The commission was set up following widespread concerns by pensioners that their pensions and insurance benefits were undervalued during the changeover from the Zimbabwe dollar to the multi-currency system.

Pension fund values were badly eroded in values due to devastating hyperinflation, which soared to a record 231 percent at the last official count in June 2008.

The commission of inquiry said pensioners and policy holders suffered a “huge” loss of value and recommended compensation. It also noted values were not only lost during the conversion period, but during the investigation period between 1996 and 2014.

In its report, the commission said high levels of inflation, currency debasing, dollarisation conversion process and de-monetisation were the main reasons of the loss of value.

Comm Kazengura said the industry regulator is working on a Micro-Pensions regulatory framework to cater for the country’s informal businesses as a way of enhancing financial inclusion for this previously excluded sector as well as growing pension’s penetration in the country.

“In order to increase pension coverage IPEC is working on introduction of a Micro-pensions framework to cater for the informally employed and those with irregular incomes in line with successful models that have been implemented elsewhere within the region for example Rwanda.

“IPEC is also amending the legislation to make it mandatory to all employees,” he said

Zimbabwe`s informal sector could be the sixth largest in the Sub-Saharan region, contributing between 40 and 50 percent to economic growth.

The informal sector contributes over 60 percent of employment in the country.

The post IPEC to announce compensation framework appeared first on Zimbabwe Situation.

Source: Cabinet Okays ZMDC unbundling | Herald (Business)

Ishemunyoro Chingwere Business Reporter
Cabinet on Tuesday approved the unbundling of State mining arm — the Zimbabwe Mining Development Corporation (ZMDC) — into four mineral specific units as efforts to improve efficiency in State-owned assets gather pace.

There had been concerns that the previous order was too bloated for one organisation and thus limiting the mining vehicle to effectively exert itself in the mining sector.

The mining sector has been identified as a key pillar towards the attainment of Vision 2030 as enunciated by President Mnangagwa by which Zimbabwe should be an upper middle income economy.

For this to be achieved, Mines and Mining Development Minister Winston Chitando, has said the mining sector should generate annual export earnings of US$12 billion by 2023 up from just over US$2 billion achieved in 2018.

Speaking to journalists at Tuesday’s post-Cabinet meeting media briefing, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, said Government had resolved to unbundle the state entity into four mineral specific units.

Said Minister Mutsvangwa; “That ZMDC be consolidated into specific mineral commodity groups namely; gold, precious metals and stones, base metals and energy and industrial minerals.

“A specific subsidiary will be established for each of the mineral groups,” she said.

The state mining entity is a major player in the mining sector and has interests ranging from diamond mining, gold mining, emerald mining, platinum mining, copper mining, tin mining and several other precious stones.

The state mining vehicle has huge targets among them growing its diamond production at its subsidiary, Zimbabwe Consolidated Diamond Company (ZCDC), from 2,8 million carats mined out last year to at least 10 million carats annually by 2025.

The diamond miner has already planned to invest US$32 million in exploration projects to support a resource definition and expansion programme towards the 2025 target.

Government has also set ZMDC high targets in gold productions where it is expected to play a significant role towards the national output target of 100 tonnes per year by 2023 up from 33,2 tonnes delivered to Fidelity Printers and Refiners (FPR) in 2018.

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