Zim News Blog -NEWS NETWORK

Source: Banking sector stable, but assets quality deteriorates – NewsDay Zimbabwe February 22, 2019

BY MISHMA CHAKANYUKA

ZIMBABWE’S banking sector remained generally stable and adequately capitalised during the year ended December 2018, but the quality of assets deteriorated as reflected by the increase in the average non-performing loans (NPLs) to total loans ratio, the central bank has revealed.

The country has 19 banking institutions, which include commercial banks, building societies and a savings bank.

Presenting the Monetary Policy Statement on Wednesday, Reserve Bank of Zimbabwe governor John Mangudya said the banking sector’s aggregate core capital had increased by 15,32% to $1,58 billion as at December 31, 2018.

“The banking sector remained adequately capitalised, with average tier one and capital adequacy ratios of 23,84% and 30,27%, respectively,” he said.

Profitability across the sector increased from $241,94 million in the prior year to $389,85 million for the year ended December 2018.

Total loans and advances increased by 11,05% from $3,8 billion as at December 31, 2017 to $4,22 billion.

Bank asset quality, however, deteriorated during the period under review, as the sector experienced an increase in the average NPLs to total loans ratio from 5% in the prior year to 8,39% in 2018.

“The increase in NPLs is largely a reflection of forward-looking credit risk management tools adopted by banks in line with the IFRS [International Financial Reporting Standards] 9 accounting standards, resulting in improvement of the banks’ risk controls and provisions coverage,” Mangudya said.

Total banking deposits increased to $10,32 billion from $8,48 billion in the comparative year.

But the loans to deposit ratio decreased from 44,81% to 40,1% over the year ended December 31, 2018, reflecting low lending levels.

Mangudya said the $10,3 billion deposits are constituted of $2,5 Treasury Bills, $2,5 billion in savings bonds, $3,8 billion loans and advances leaving at least $2 billion RTGS in circulation.

The number of corporate RTGS foreign currency account (FCA) depositors was 214 094 holding $8,67 billion, while individual RTGS FCA depositors was 3,24 million holding $894,54 million.

Of the 3,24 million individual depositors, 95,98% held deposit balances of less than $1 000 each, with an average balance of $80, accounting for a total $213,42 million.

As at December 31, 2018, total nostro FCA deposits amounted to $673,81 million, representing 6,53% of total deposits.

The nostro FCA deposits are dominated by corporate deposits, which amount to $654,77 million and represent 97,17% of total nostro FCA deposits.

Demand deposits largely funded the sector, accounting for 64,94% of total deposits as at December 31, 2018.

The post Banking sector stable, but assets quality deteriorates  appeared first on Zimbabwe Situation.

Source: Prospectors blast Mines ministry over Battlefields disaster – NewsDay Zimbabwe February 22, 2019

BY LEARNMORE NYONI

The Zimbabwe Mining Prospectors Association has accused inspectors at the Mines ministry of sleeping at the wheel while unqualified Environmental Management Agency (EMA) officers conduct safety measures at mining claims, leading to avoidable loss of lives.

The association’s president, Samson Dzingwe, said the Battlefields disaster, which claimed the lives of at least 24 artisanal miners, could have been avoided had the Mining Inspectorate Department been doing its duties as dictated by the Minerals Act.

“EMA is usurping the powers of the Mining Inspectorate Department. Why is EMA going there? What do they know about underground mining?” he asked.

“The people who are supposed to be on the ground assisting artisanal miners, doing routine checks and monitoring compliance are the officials in the Mining Inspectorate Department. The department has been made redundant for reasons best known to the Mines ministry.”

Mines minister Winston Chitando recently warned that heads would roll over the disaster.

“The ministry should not be found to be accusing the artisanal miners because they are not the source of the problem,” Dzingwe said.

“The major source of the problem is the ministry itself. The ministry messed up and it should clean up its mess.”

He charged that the investigation of the Battlefields disaster, which was handled by the police, was not done according to dictates of Statutory Instrument 109, which mandates mining inspectors to handle all mining disasters in the country.

“The first person who should be on the ground, according to the mining regulations, is the mining inspector before the scene of the accident has been disturbed. The mining inspector’s investigation should have been done within 24 hours and his report be completed within seven days,” Dzingwe said.

“You have people qualified to do the job, but you don’t send them to do it. What kind of administration is that?”

Operations of artisanal miners have largely gone unregulated and unmonitored, leading to many unreported deaths and injuries regardless of the fact that they contributed an almost equal amount of gold with established companies last year.

The post Prospectors blast Mines ministry over Battlefields disaster  appeared first on Zimbabwe Situation.

Source: Govt avails $150m for Beitbridge-Chirundu Road rehab – NewsDay Zimbabwe February 22, 2019

BY JAIROS SAUNYAMA

Government has availed $150 million for the rehabilitation of the Beitbridge-Chirundu Highway, with the construction of detours already underway.

Speaking to journalists after touring one of the sites being worked on in Beatrice yesterday, Transport and Infrastructure Development minister Joel Biggie Matiza said the Zimbabwe National Road Administration (Zinara) has since disbursed $40 million for road construction set to be completed in three-and-half years.

“So far, the budget is $150 million, but currently, the money allocated by Zinara is $40 million. By next week, we are going to open the detour roads to allow us to work on the actual roads,” he said.

“The rehabilitation of the actual road starts next week and will take three-and-half years to complete.”

Construction works have already started in Beatrice and Chivhu, with the project being done by the Department of Roads.

Matiza said the first phase will see the rehabilitation of the actual road, before dualisation, which comes in the second phase.

“Dualisation is second phase, but as we approach 10 kilometres before the town, we dualise and 10kms after the town we also dualise. The door is open for foreign companies to come on board, but for now we are using local resources,” Matiza added.

Three years ago, former President Robert Mugabe led a ground-breaking ceremony for the construction of the road that never started.

The highway is considered as the busiest in southern Africa, linking South Africa and other countries in the region.

The post Govt avails $150m for Beitbridge-Chirundu Road rehab  appeared first on Zimbabwe Situation.

FORMER Finance Minister Tendai Biti has claimed that Zimbabweans keeping their money in Nostro Foreign Currency  Accounts risk having their money seized by Government. “You recall that in the last monetary policy statement of October 2018, John Panonetsa Mangudya created two accounts; the Nostro RTGS and Nostro FCA. Now I want to warn Zimbabweans. I […]

A FRAIL looking former President Robert Mugabe looked to be dozing off as close family and friends sang for him at a seemingly intimate event to mark his 95th birthday. Mugabe, resplendent but jaded in a charcoal grey suit, posed for pictures with family including son Robert Junior and former First Lady Grace. The garrulous […]