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Source: Utilise loan facilities, youths told | The Herald March 5, 2019

Leroy Dzenga Herald Correspondent
Young entrepreneurs should make the most of the loan facilities being offered by the National Youth Empower Bank, a Government official has said.

Speaking at Total Zimbabwe’s Start Upper of the year awards in Harare recently, Principal Director in the Ministry of Youth, Sport, Arts and Recreation Dr Benson Dube said there was still a lot of money lying idle at the youth bank.

“In 2018, the Government established a youth-focused financial institution Empower Bank in order to enable lending and financial support to youth businesses and projects. To-date, Empower Bank has distributed more than 600 loans for youth businesses and projects across the country and the money is still in abundance for more youths to apply such loans. The money is for you our youths, come and get it. Don’t shy away it is your money,” he said.

“The Government of Zimbabwe has adopted a pro-youth agenda to empower and capacitate our youth in diverse economic sectors.

“According to the 2012 census, Zimbabwe has a young population. Out of 13,1 million people in this country, 77 percent of them are below the age of 35,” said Dr Dube.

“This statistic alone demanded our immediate intervention towards capacity building, financial inclusion, literacy and life skills among the youth.”

A number of youths made rich pickings on the day after their ideas earned them capital for their projects.

Zvishavane-based Sadam Mapundu walked away with US$17 500 for his Choto Virtual Energy idea, which provides a cheap way for people who are not on the traditional power grid to charge their phones.

The second runner-up was Farai Musendo, who walked away with $10 500 for his idea which converts waste plastic into diesel.

Total made an undertaking to continue helping Zimbabwean youths with bright idea on an annual basis.

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PRESIDENT Emmerson Mnangagwa’s government has reportedly expelled from the country an unknown number of North Korean nationals of “questionable character”, who were in partnership with a local tobacco merchant, in compliance with United Nations resolutions against co-operation with the Asian “rogue” State. In February last year, government reportedly approached businesswoman Rudo Boka

Source: RBZ acquires US$1bn loans | The Herald March 5, 2019

Reserve Bank of Zimbabwe Governor Dr John Mangudya appears before Parliament’s Public Accounts Committee in Harare yesterday. — Picture by Justin Mutenda

Tawanda Musarurwa Senior Reporter
The Reserve Bank of Zimbabwe (RBZ) has acquired $985 million in loans from several regional banks for lending to the productive sectors as well as for the purchase of critical imports such as fuel, according to the Apex Bank governor Dr John Mangudya.

Dr Mangudya told the Parliamentary Portfolio Committee on Finance yesterday that Afreximbank loans accounted for the bulk of external loans at US$641 million.

“At Afreximbank we have exposure of US$641 million, TDB (formerly PTA Bank) US$152 million. These are United States dollars and these are loans that are well-structured facilities.

“The Afreximbank loan has got a rate of interest of 5 percent above libor with a tenure of 5 years, the TDB loan is libor plus 6 percent and a with a tenure of 3 years. The current loans were contracted last year. All the external loans, if you add them together with the smaller ones, come to US$985 million.”

Governor Mangudya said the “smaller” loans were acquired from the central bank of Mozambique (US$25 million), PTA Reinsurance Corporation (US$9 million), the African Development Bank (US$15 million), South Africa Minting Company (US$1,9 million).

The local productive sectors have been struggling to access foreign currency, which was having a negative impact on capacity utilisation due to the foreign currency shortages to import raw materials.”

“I think we have done well to ensure that this economy is where it is today. We are using and we will continue to use foreign currency as a very important input into the economy of Zimbabwe,” said the governor.

“That foreign currency comes from our exports and from borrowing. Without these borrowings it means that the economy would not have been able to have fuel on the ground, etcetera.”

Zimbabwe has been facing shortages of hard currency over the past few years.

The RBZ introduced bond notes around 2016, which quickly devalued against the United States dollar on the parallel market despite the government maintaining the 1:1 official rate.

And last month, the apex bank moved to improve the situation by introducing an official inter-bank foreign currency market to curb illegal trading.

Announcing the Monetary Policy Statement last month, Dr Mangudya said the central bank had arranged “sufficient lines of credit to enable it to maintain the foreign exchange market,” which is currently trading at a rate of around 2,5, compared to an illegal market rate of around 3,5.

“The new framework is set to bring certainty, predictability and functionality to the country’s foreign exchange market,” he said.

The committee is chaired by legislator Tendai Biti and it had invited Dr Mangudya to understand if the bank was following all the regulations laid down by the law before securing external loans.

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Source: Zimplats royalty expenses hit $12,2m | The Herald March 5, 2019

Oliver Kazunga Senior Business Reporter
ZIMBABWE’S largest platinum producer, Zimplats, has recorded a 74 percent increase in royalty and commission expenses to $12,2 million for the half year period ended December 31, 2018. During the comparable period in 2017, royalty and commission expense by the platinum miner stood at $7 million.

“Royalty and commission expense for the half year increased by 74 percent from $7 million reported in the same period last year to $12,2 million mainly due to an increase in royalty rates after migrating from a special mining lease to a mining lease on  May 31, 2018,” said the company in its half year report for the period.

A royalty is a usage based tax, which is calculated as a percentage of the gross fair market value of minerals produced and not quantity. Royalties are levied in terms of section 244 of the Mines and Minerals Act[Chapter21:05], whilst the royalty rates are fixed through the Finance Act. The Mines and Minerals Act provides for a full rebate of royalty in respect of all minerals or mineral-bearing products used wholly within Zimbabwe.

In Zimbabwe royalties are charged depending on the mineral as and it is at 10 percent for platinum, 15 for diamonds and five percent for gold.

The giant miner said revenue for the period under review also increased by two percent to $291,8 million compared to the same period in 2017 driven by a one percent increase in both metal prices and 4E sales volumes.

The gross revenue per platinum ounce for the half year at $2,1 million was one percent higher than the $2,1 million reported during the same period last year.

“Cost of sales at $187,1million was two percent higher than the same period last year’s $184 million mainly due to inflation.

“This was partly offset by the substitution of open-pit ore with lower cost underground ore following the closure of the South Pit Mine in April 2018 and decrease in depreciation arising from the conversion of upper ores resources to reserves,” said Zimplats.

The platinum giant during the period under review, also benefited from an export incentive of $29,4 million (2017: $5,6 million) and the recognition of a $9,6 million refund due from the Zimbabwe Revenue Authority.

The refund arose from a court ruling in favour of the platinum producer in respect of fines inappropriately levied by Zimra on the disputed customs duty rebates case.

In 2012, Government issued a $28 million garnishee order against Zimplats to recover outstanding royalties, which the mining group disputed.

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An 11-day-old baby from Medium Density Suburb in Beitbridge went through a tortuous time on Saturday when she spent the whole night crying with her hand and part of the body lying under the weight of the mother Thobokile Sibanda’s corpse. The mother must have died during the night and the baby was only rescued […]