Zim News Blog -NEWS NETWORK

Source: Cyclone Idai batters Zimbabwe, at least 31 people dead | Reuters

HARARE (Reuters) – At least 31 people have died in eastern Zimbabwe while dozens were missing as homes and bridges were swept away by a tropical storm, state television reported on Saturday.

Cyclone Idai, which brought floodwater and destruction to areas of Mozambique and Malawi, hit Zimbabwe on Friday, cutting off power and communications.

Pictures shared on Twitter and television footage showed roads, houses and bridges that were washed away while communication towers were knocked down and electricity cables blocked roads in Chimanimani district, 410 kilometers (255 miles) east of the capital Harare.

State television ZBC said 31 people had died in the district while more than 70 people were missing.

The information ministry said the army had moved in to rescue 197 pupils trapped at a local school.

“This a very challenging operation as it’s being undertaken as a ground effort because of unsafe weather conditions for air efforts,” the ministry said in a statement.

Joshua Sacco, a member of parliament in Chimanimani earlier told Reuters the district had been cut off from the rest of the country as the storm left a trail of destruction reminiscent of Cyclone Eline in February 2000, which devastated southern Zimbabwe.

Sacco said the death toll was expected to rise as rescue efforts continued.

Chimanimani, which borders Mozambique, has been worst affected, with the storm causing floods as well as destroying crops and plantations, Zimbabwe’s Ministry of Information said.

Air force helicopters were rescuing people, but flights were being slowed by heavy winds.

Zimbabwe has faced a severe drought this year that has damaged crops and a United Nations humanitarian agency says 5.3 million people will require food aid.

The country’s meteorological services expect rains to continue throughout the weekend.

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Source: Whats in a name? All you need to know about Zim’s new currency | Fin24

Late in February, Zimbabwe introduced a new currency called the RTGS, or real-time gross settlement dollar, in the process abandoning its long held 1:1 parity between the US dollar and its local transactional instrument – the bond note.

“We have introduced the RTGS dollar. Citizens have to accept the introduction of the RTGS dollar. Whether you like the name or not, it is the domestic currency now – let’s respect it and support it,” Finance and Economic Development Minister Mthuli Ncube told a Youth Indaba on Thursday.

But why is Zimbabwe introducing the RTGS dollar?

In 2009, Zimbabwe was forced to adopt a multi-currency system after its local currency was rendered useless by hyperinflation, which surged to an astronomical 231 000 000%, resulting in the Zimbabwean dollar being rejected.

The US dollar then became its anchor currency, while the authorities adopted a multi-currency system which allowed people able to pay in US dollars, rands, bond notes, and mobile money in shops. Though part of the basket of currencies, the Chinese Yuan was rarely used.

But with weak exchange rules and a strong appetite for imported products, Zimbabwe soon ran out of US dollars for both local and external transactions.

The central bank, in an effort to ease currency shortages, introduced bond notes in October 2016. Though not legal currency – rather just a financial instrument – they were used for local transactions and initially at par with the US dollar, meaning US$1 was equal to 1 bond note.

The market, however, quickly rejected the bond notes and the surrogacy currency lost value, trading at a huge discount to the US dollar.

Enter the RTGS dollar

With the situation becoming untenable, the Reserve Bank of Zimbabwe, in its 2019 Monetary Policy Statement, finally abandoned the long-held 1:1 parity between local bond notes, including RTGS balances (money held in banks but used through transfers, bank cards or mobile money, if physical notes were unavailable) with the US dollar.

The central bank then introduced the RTGS dollar, which is made up of bond notes and deposits in the bank. No new notes were issued, and there was no announcement that new notes would be introduced.

Notes and bank deposits were combined under the same name to ensure that those using bond notes to transact were charged the same as those doing electronic transactions, for example by using mobile money. In the past, to buy US dollars with bond notes or through a bank transfer, a different rate was used, and to remove that distortion, the central bank decided to introduce the RTGS dollar as a legal tender.

What is the RTGS dollars’ relationship with the US dollar, and what has been the reaction so far?

Like any normal market, the relationship or the exchange rate between the US dollar and the RTGS dollar will now be determined by market forces, through what is called an interbank market.

At introduction, on February 22, the exchange rate was RTGS$2.50 for every US$1, and the rate remained there for more than a week. Economic players doubted whether the rate was really floated.

This week, the RTGS dollar has, however, weakened and at mid-morning on Friday, the exchange rate stood at RTGS$2.75 to US$1, a 9.09% drop.

According to the RBZ, all local transactions must be settled in RTGS dollars, putting an end to the multi-tier pricing system. This only applies on paper though, as some shops in the informal sector still display prices in both RTGS dollars and US dollars.

“The RTGS dollars shall be used by all entities (including government) and individuals in Zimbabwe for the purposes of pricing of goods and services, record debts, accounting and settlement of domestic transactions,” said the RBZ.

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Source: Women's bank disburses $3,7m | Daily News

The Zimbabwe Women Micro-Finance Bank (ZWMB) has disbursed nearly $4 million worth of loans to women since it began operating last year.

Addressing the Women Affairs and SMEs parliamentary portfolio committee during a familiarisation tour yesterday, ZWMB chief executive officer Mandas Marikanda said they have disbursed approximately $3 773 030 to 7 706 clients, with the Midlands Province topping the list of borrowers.

President Emmerson Mnangagwa opened the women’s bank last year to offer loans to women, youths and small-scale businesses to bring about financial inclusion.
“Gokwe District in the Midlands Province is leading in terms of borrowers because of the cotton, sorghum and sesame value chains,” Marikanda said.

“To date, the rate of non-performing loans stands below one percent and we are anticipating that it will decrease further,” she added.
The bank, which still operates with one branch, is in the process of opening a second branch in Bulawayo which will service the whole southern region before opening more branches in all provinces.

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Source: Concerns raised over Gukurahundi hearings | Daily News

Matabeleland chiefs fear that the National Peace and Reconciliation Commission (NPRC) could miss crucial evidence on the Gukurahundi massacres of the early to mid 1980s, unless it abandons its current approach which focuses on cities and towns.

This comes as more traditional leaders in the region are challenging the government to act with speed to bring closure to the highly emotive matter. It also comes as Chief Mathema of Gwanda accused the NPRC on Thursday of focusing its efforts on towns and cities in its fact-finding missions — which he said risked getting flawed evidence as many of the victims of the killings were in rural areas.

“You (NPRC) are doing most of your work in urban areas, yet most of the people who were affected were people in rural communities.
“You should engage the traditional leaders. You know when you start talking about Gukurahundi people get angry, but it’s something that happened.

“Those people who died may not rise from the dead, but my point is Baba Nare please go down to the people who were affected,” Mathema told NPRC chairperson retired judge Selo Nare at the launch of the Churches Convergence on Peace (CCOP) initiative.
“I have never heard of NPRC looking for me or any other traditional leader to talk about the issue.

“So, I am challenging you to go to the people. They are the ones who can give you relevant information and how this issue can be dealt with. “We should not be afraid to discuss this because … that’s the only way it can be addressed. Right now … people do not relate well. They may appear to agree in public, but in reality there are deep-seated tensions that need to be addressed,” Mathema added.

On his part, Nare — who described Mathema as “a man of substance” — said the NPRC had seconded Commissioner Lesley Ncube to the region to work with traditional leaders. “My commission, and I in particular, decided to second him … he will certainly be working with you. I trust that with your prayers he will succeed,” Nare said.

Two Matabeleland chiefs, Vezi Maduna and Nhlanhlayamangwe Ndiweni, are currently at odds with the government as they push for the appointment of an independent probe into the Gukurahundi atrocities. An estimated 20 000 people are said to have been killed in the Matabeleland and Midlands provinces when the government deployed the North Korea-trained Fifth Brigade to the two regions, to fight an insurrection.

Unity Day was subsequently set up to commemorate the Unity Accord which was later signed between Zapu and Zanu on December 22, 1987, and which ended hostilities between the two parties. President Emmerson Mnangagwa, who served as ousted former president Robert Mugabe’s right-hand man for nearly 54 years, last year operationalised the NPRC as part of his efforts to address unresolved national issues such as the Gukurahundi atrocities.

During his maiden appearance at the World Economic Forum in Davos, Switzerland, last year, Mnangagwa said the government was keen to address the atrocities. What can we do about the past? We have put up a commission (NPRC) to deal with that issue (Gukurahundi), that should not stop us from having a better future where all the communities should be united, should co-operate, should love each other, should work together.

“Let me assure you that just recently I had a meeting with chiefs from Matabeleland, discussing with them, because I feel there is that bad patch in our history and we would want to correct it.
“We would want to say whatever wrong was committed we must say, the government of the day must apologise,” Mnangagwa said.

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Source: US$21m legacy debt weighs down PPC Zim – The Zimbabwe Independent March 15, 2019

A PPC Zimbabwe cement plant in Gwanda.

PPC Zimbabwe Ltd is saddled with a US$21 million legacy debt to PPC South Africa which awaits repatriation as the group says the Monetary Policy Statement, presented on February 20, has kindled hope among foreign investors.

By Melody Chikono

Last month, central bank governor John Mangudya announced the establishment of an inter-bank foreign exchange market to formalise the trading of Real-Time Gross Settlement balances and bond notes with US dollars and other currencies with the initial RTGS dollar to US dollar rate pegged at 1:2,5.

PPC Zimbabwe was stuck with R896 million (US$64,2 million) due to its parent company after the local company failed to remit rights issue proceeds and other amounts due to the Johannesburg Stock Exchange-listed construction materials manufacturing group.

In an update after the Monetary Policy Statement, PPC said it awaited the Public Accountants and Auditors Board (PAAB) to pronounce the impact of the MPS, in particular the determination of whether the effective date of conversion to the RTGS$ is October 2018 or February 2019.

While PPC reported a cash balance of US$63 million at the end of September 2018, PPC says the figure was reduced was reduced to US$60 million by a debt repayment at the end of February 2019.

“PPC has reviewed the monetary policy statement issued on the 20 February 2019. The impact on the group is as follows: 1. The functional reporting currency will be the RTGS$. A full impact assessment, including systems alignment is underway.

“The initial rate of 2,5 RTGS$:1 US$ applies only to a portion of the US$60m cash balance, amounting to US$30 million-US$35 million. The remaining balance, including US$16 million in dividends and US$5 million rights offer proceeds, qualifies as legacy debt due to PPC RSA which is awaiting repatriation,” PPC said.

Meanwhile, the group announced that in terms of group liquidity, PPC Zimbabwe is excluded from covenant calculations.

“Looking ahead PPC Zimbabwe’s maintains a good relationship with the Zimbabwean monetary authorities and will persist in engaging the regulators and monitoring developments. The business continues to implement strategies to protect its financial position and utilise regulatory channels to repatriate funds where possible,” PPC noted.

In its interim financial results for the six months to September 30 2018, PPC group CE Johan Claassen said the amounts split as R510 million (U$36,5 million) in September 2017 and R466 million (US$33,4 million) in March 2018 were classified as cash and cash equivalents after the group failed to access the funds due to restrictive laws on transfers.

Zimbabwe is experiencing an acute shortage of foreign exchange that has seen foreign investors failing to remit dividends, capital gains and principal on the local exchange.

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