Bakers debunk 100% local wheat bread

Source: Bakers debunk 100% local wheat bread | Newsday (News) BY Brenna Matendere INDUSTRY experts have roundly discredited the proposal presented to Cabinet last week by a Gweru farmer who claimed that he could produce a standard loaf of bread using locally-produced wheat alone. The farmer, Douglas Kwande made headlines after making claims that he […]

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Source: Bakers debunk 100% local wheat bread | Newsday (News)

BY Brenna Matendere

INDUSTRY experts have roundly discredited the proposal presented to Cabinet last week by a Gweru farmer who claimed that he could produce a standard loaf of bread using locally-produced wheat alone.

The farmer, Douglas Kwande made headlines after making claims that he produces 500 loaves of bread a day from locally-produced wheat without having to blend with imported wheat; raising the excitement of government which immediately said it had found relief from the demands of forex by grain millers wishing to import wheat from outside the country.

A number of leading retail supermarkets in Gweru told NewsDay that they relied on the traditional suppliers.

“The local wheat flour is good, but it does not reach the desired quality. For example, it is dense. In other words it is heavy. Its own quality, therefore, must be improved by wheat from outside the country mostly countries in Europe like Lithuania which have high quality wheat,” said Hardlife Mamuse, a Gweru-based baker who has been in the trade for over 19 years.

He also added that the call for wholly-local grain bread cannot be sustained because the country does not produce adequate quantities of white wheat.

“I do not know if it is because of climatic conditions or what, but what I can confirm is that as a country we mainly produce brown wheat for brown bread. There is very low production of white wheat and actually I am not aware of farmers who produce white wheat. It’s imported, so if we say the country can rely on local wheat only, there will be serious shortages of white bread,” he said.

A brands manager for a retail chain, Abel Chikanya, reiterated that it was impossible to produce quality standard bread using local wheat alone.

“We are not saying local wheat is sub-standard. However, it needs to be blended. Actually, at our internal bakery, we used to blend local wheat flour and imported one on a 50:50 scale during our peak. The bread will be high quality only when blending is done,” he said.

Commenting on the issue, a food scientist Tafadzwa Marufu reiterated that relying on local wheat would compromise the quality of bread.

“It is certainly possible to make bread using our local wheat, but the main concern there would be the quality of the product. The quality of bread to any individual is all about flavour. Understanding the formation of bread flavour arises in part from the fermentation processes and in part from the complex interactions between the baking heat and the recipe to use with our local wheat”.

In previous statements, National Bakers Association of Zimbabwe (NBAZ) president Ngoni Mazango mentioned the need for imported inputs particularly wheat in the production of bread.

“The imported inputs in the bread manufacturing and distribution processes have recorded the highest increases, at times exceeding 500%, among other imported items, which have increased drastically,” he said then.

An official at Bakers Inn, who requested not to be named, said they used up to seven imported ingredients to produce their standard loaf and emphasised that they also blend local and foreign wheat flour.

“In as far as wheat is concerned, the locally-produced one cannot go alone. There is need to balance with that which is imported for quality bread. If you do not do that, even the taste itself and the outlook of the bread will be terrible. Again, most of the ingredients that we use are all imported. These are enzymes, baking fats, improvers, gluten, calcium, kwiklocks, premix,” he said.

Investigations revealed that Kwande’s major clients in Gweru were mostly dealers along the city’s densely populated down town area.

Kwenda’s bread has also been a hit with travellers at Gweru’s Kudzanayi long distance bus terminus.

Other sources indicated that the product was often spotted in gold mining communities such as Wonderer Mine, Arizona, King Kobra, Dam Bridge and Wozoli where panners was short on options of food supplies.

Kwande insisted, in brief responses, that his bread was of high standard and made from locally-produced wheat alone. He also emphasised that he does not understand views that no bread could be of standard value without blending with imported wheat flour, adding his business was actually thriving.

“I will call you when we open a new bakery for another story, in four weeks’ time,” he said.

The businessman, in his presentation to Cabinet, urged government to encourage production of wholly-local wheat bread saying he had done that for two years.

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Harare water rationing prompts call for boreholes

Source: Harare water rationing prompts call for boreholes | Daily News HARARE – Harare City Council is now under pressure to rehabilitate its boreholes as the city starts instituting a strict water rationing regime that should see residents receiving water at least twice a week. According to the new water rationing schedule for March, only Mbare, Highfield, […]

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Source: Harare water rationing prompts call for boreholes | Daily News

HARARE – Harare City Council is now under pressure to rehabilitate its boreholes as the city starts instituting a strict water rationing regime that should see residents receiving water at least twice a week.

According to the new water rationing schedule for March, only Mbare, Highfield, Sunnigdale, Mufakose, Graniteside, Willowvale, Ardbennie, Southerton Industrial area and the Central Business District will receive water everyday.

Other areas will get water twice or thrice every week with suburbs such as Kambanji, Glen Lorne, Philadelphia, Mandara, Chisipite, Highlands and Ballantyne Park set to get water once a week
Town clerk Hosiah Chisango said the city was in the process of rehabilitating boreholes that were not decommissioned.

He said they would be installing solar-powered boreholes after councillors complained that the manual pumps were too strenuous on residents. “We have already started installing solar powered boreholes in areas such as Mabvuku. “We doing everything in our powers to ensure that we provide the ratepayers with water.

“We are also looking into other technologies to ensure water is available and with an acceptable quality,” Chisango said.
He said some of the measures they were instituting include the use of chlorine dioxide which is still at trial level.

Chisango emphasised that if the trials prove to be positive, the city will save on other water treatment chemicals and use the new one which will provide the same quality but for a lesser cost.
During a full council meeting, acting distribution manager Tapiwa Kunyadini indicated that council was now pumping 300 megalitres (ML) of water daily against 620ML they were pumping last year.

“We are hoping that with the works that we are undertaking at Morton Jaffray and the commissioning of Avondale pump station, we will be able to have returned water production to over 500ML by end of April,” he said.

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High bank service charges: Case for crypto-currencies

Source: High bank service charges: Case for crypto-currencies – The Zimbabwe Independent March 8, 2019 by Terence Zimwara: economic analyst BANK service charges or fees make a compelling case for the mass adoption of crypto-currencies, particularly in developing countries, where these fixed costs remain disproportionately high. In fact, in some lands, it is these high […]

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Source: High bank service charges: Case for crypto-currencies – The Zimbabwe Independent March 8, 2019

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by Terence Zimwara: economic analyst

BANK service charges or fees make a compelling case for the mass adoption of crypto-currencies, particularly in developing countries, where these fixed costs remain disproportionately high.

In fact, in some lands, it is these high bank charges that actually discourage people from using financial services offered by banks.

The overall cost of accessing banking services increases when expenses like transport to and from the physical offices of the bank are factored in.

In addition, the very low wages earned suggest that since many families survive at or just above the poverty datum line, therefore they will be very sensitive to extra costs like bank service charges or fees.

Zimbabwean banks demand their clients to maintain a balance that makes it possible for the bank to deduct $5 in fees every month, irrespective of whether the account is accessed during the month or not.

For the majority of workers who earn less than $400 per month, such a fixed monthly cost only drives people away from the traditional banking system and there is documentary evidence to support this.

To illustrate, the Reserve Bank of Zimbabwe’s October 2018 monetary policy statement revealed that depositors are not very keen on keeping their funds inside the banking system.

According to the statement, demand deposits — customer bank deposits that can be withdrawn any time without notice —comprise 65% of all bank deposits, a clear indication of an unwillingness to fully use the banking system.

In any case, a number of Zimbabweans lost out at the end of the hyperinflation period in 2009, when bank account holders’ balances simply disappeared without explanation. Subsequently confidence in banks tanked.

The same happened to the insurance industry and, to this day, pension rights groups are still fighting for fair compensation. According media reports, some pensioners reportedly received payouts not exceeding $5 despite having made contributions for years.

Why many remain unbanked

Weak consumer protection laws and inept regulatory bodies in some developing countries mean banks can connive to levy high charges, without facing significant risks of being penalised.

When the same banks fail, deposit insurance is inconsequential, only a maximum of $100 per depositor is paid regardless of the level of losses.

This reinforces distrust of the financial system, a fact supported by a World Bank Global Findex Database of 2017, which also revealed that 1,7 billion people around the world remain unbanked. According to the Global Findex Database, a lack of documentation and distrust in the financial system were both cited as these reasons why roughly a fifth of adults globally, do not have a financial institution account.

Interestingly, banks cannot carry on the same way in developed countries like the United States, as they normally do in developing nations.

The US has applicable laws and institutions to deal with banks’ malpractices with respect to deposit-taking as well as lending. For instance, the Truth In Lending Act (TILA) passed in 1968, compelled banks to be more truthful when advertising or informing potential clients about the cost of borrowing. There is legal protection for bank clients.

While such laws do not offer 100% protection, the legal threat posed ultimately forces banks to toe the line, something that cannot be said of developing countries like Zimbabwe, which is yet to pass a consumer protection law, some 39 years after gaining independence.

Inversely, banks’ refusal to set up in rural areas amplifies the extent of global financial exclusion.

Apparently, banks cannot establish a branch in areas not dominated by regular income earners as this denies them the opportunity to earn fixed service income, enough to cover overhead costs. For instance, areas dominated by smallholder farmers are ignored because such farmers do not regularly receive an income, which banks use to fund part of their operations.

Crypto-currencies case

Given this whole background, it is easy to see why crypto-currencies could see a mass adoption in the coming few years.

Whereas potential bank customers have to contend with transport costs when accessing banking services, with crypto-currencies it is simply getting internet access via a mobile phone or a computer, there is no costly and inconveniencing long-distance travelling.

In certain instances, people might be compelled to open an account but the centralised nature of the banking system means many will remain under-banked despite possessing a bank account.

To illustrate, Zimbabwe is a major tobacco-producing country with the multi-million dollar industry now dominated by tens of thousands of smallholder farmers.

A few years ago, the Zimbabwe government made it a mandatory requirement for all tobacco farmers to open a bank account while suspending payments of tobacco proceeds in cash.

Farmers duly obliged by opening bank accounts with different financial institutions, which are mostly based in Harare and many were issued with credit cards to facilitate payments.

Herein lies the problem, tobacco farmers reside in farming towns outside Harare and with a few banks having branches in such remote places, this meant that for the majority of new account holders, they would have to travel to Harare or any other town just to access banking services.

Even worse, if a tobacco farmer has a major query about their bank account or they lost a credit card, then only a visit to the head office in Harare will suffice, a costly exercise! If the tobacco farmer were to opt for crypto-currencies instead, a similar scenario will be resolved without the need for an account holder to incur transport costs. Blockchain technology, which underpins crypto-currencies, eliminates the very query to begin with.

A complex verification and validation of records means there is a remote chance of encountering a typographical error or any other problem which might necessitate the need to travel more than 100 kilometres to get the problem fixed.

Crypto-currencies will potentially solve the confidence issues that presently beset the financial system, particularly where the unbanked are concerned. Transparency has been one key to the success of crypto-currencies like bitcoin thus far because the blockchain technology, which is essentially a publicly distributed ledger, allows anyone to verify or authenticate transactions.

This level of transparency has not existed within financial systems before.

Lower costs

Of course, crypto-currencies have small in-built transactions costs, but these are significantly lower than what is obtaining within traditional banking system.

The other appealing aspect of crypto-currencies has to be the ability of two or more people to transact without having to go through intermediaries, a process which normally comes with high costs.

Going back to the example of tobacco farmers, further problems are experienced when two neighbours, who are new account holders, want to perform a transaction with funds in the banking system.

The buyer will have to travel to the nearest town or business centre to withdraw funds or transfer money to an account of his neighbour, the seller. This might seem ridiculous, but it has been happening for years and it is the only way the seller can be assured that the buyer has an adequate balance to fund the transaction.

A mobile phone company, Econet Wireless, has since stepped in, allowing people to transfer fiat money with more ease via mobile phones. The mobile phone application, EcoCash, which now enjoys a virtual monopoly, can only go as far as facilitating the ease of moving funds inside national borders.

Cross-border payments are only possible after one pays a visit to a banking institution to make the deposit of the appropriate foreign currency deposit. The intermediaries involved here include the public transport operator, the resident bank plus a clearing bank and all demand a fee for their services. Crypto-currency payments or funds transfer are normally seamless inside borders just like they are seamless outside borders and the cost is much smaller than the conventional route. There are no intermediaries and this lowers the cost of the entire transaction.

Crypto-currencies surpass the mobile money transfer application by a wide margin and, once the ignorant population becomes aware of this, more people will abandon the banking system.

Zimwara is a writer and economic analyst. New Perspectives column is a weekly column coordinated by Lovemore Kadenge, president of the Zimbabwe Economics Society (ZES); Cell: +263 772 382 852 and email: kadenge.zes@gmail.com.

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Zinara chefs face corruption probe 

Source: Zinara chefs face corruption probe – The Zimbabwe Independent March 8, 2019 The deplorable state of the country’s road network is well documented and the first candidates for PPPs would be arguably Zinara and the NRZ. DETECTIVES from the police’s Criminal Investigation Department (CID) Fraud Squad have opened a probe into two Zimbabwe National […]

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Source: Zinara chefs face corruption probe – The Zimbabwe Independent March 8, 2019

zinara1.jpg

The deplorable state of the country’s road network is well documented and the first candidates for PPPs would be arguably Zinara and the NRZ.

DETECTIVES from the police’s Criminal Investigation Department (CID) Fraud Squad have opened a probe into two Zimbabwe National Road Administration (Zinara) senior managers over allegations of corruption involving US$500 000.

BY ANDREW KUNAMBURA

The senior officials are accused of surreptitiously keeping the money in a foreign currency account with the CBZ before moving it to another bank when the road authority’s acting chief executive officer Mathlene Mujokoro demanded she be made a signatory to the account.

Zinara finance director Simon Taranhike and director for human resources and administration Precious Murove opened the two foreign currency accounts, to which they are the only signatories, in November last year when the Reserve Bank of Zimbabwe directed banks to separate forex accounts from Real-Time Gross Settlement accounts.

Both Zinara board chairman Mike Madanha and national police spokesperson Paul Nyathi confirmed the ongoing investigation.

Taranhike and Murove are also among some of the Zinara managers who were in October last year placed under formal police investigation after a forensic audit implicated them in a massive corruption scandal in which they are suspected of systematically creaming off the parastatal over several years through questionable dealings.

Sources close to developments said the latest scandal came to light when Zinara failed to pay an ICT service provider US$500 000 late last month.

The sources said Taranhike reportedly demanded that the service provider first pay off his outstanding mortgage as a way of inducing payment from Zinara. The company refused to budge to his demands and responded by switching Zinara off its systems as a retaliatory measure.

Mujokoro then took it upon herself to visit the bank and to personally effect the payment, only to get the shock of her life when she was told by the bank that she was not a signatory to the account.

“This happened late last month. Taranhike and Murove are the only signatories to the CBZ foreign currency account. The CEO is not a signatory to that account. So Zinara was supposed to pay the service provider US$500 000 for services but Taranhike asked the company to pay off his mortgage before he could release the money which the parastatal owed. The company’s management refused to do so and went on to switch Zinara off its systems because of that stalemate,” a source said.

“So when the CEO enquired with the bank, that’s when she was told she is not a signatory to the account. She then confronted Taranhike and demanded to be a signatory to the CBZ account. Taranhike and Murove, then acted swiftly and moved some of the money from the CBZ account to an NMB bank foreign currency account which again the CEO is not a signatory to. The movement of the money took place just about the same time when the Zinara IT system was down.”

Taranhike confirmed the issues in an interview with the Zimbabwe Independent this week, but said allegations against him were being peddled by rivals eyeing the substantive position of Zinara CEO.

He also confirmed that Mujokoro was not a signatory to the two bank accounts and that he had some of the money moved from the CBZ to the NMB account.

He said he was questioned by police detectives over the issues.

“That information is coming from very desperate people who want to block me from taking over as Zinara CEO. As you know, the board is in the process of recruiting a CEO and there is fighting over the post. So they want to escalate the situation,” he said. “Mujokoro is not a signatory to the accounts because when they were created, she was not in mainstream management, but we have now started the process of integrating her. Remember these are new accounts.”

However, further checks indicated that, on the contrary, Mujokoro — whose substantive position at the cash-rich parastatal is that of company secretary — was already three months into the acting CEO capacity when the RBZ gave the directive to separate RTGS from foreign currency accounts in October last year.

Mujokoro was appointed acting Zinara CEO in July 2018.

Asked why he had hastily moved money from the CBZ account, Taranhike said: “We were investigating transit deposits after realising that our ledger balances were different from the actual balances in the accounts and that is why we ended up moving the money because we didn’t know if the affected account was the CBZ one or the NMB one.”

When pressed to explain how the investigation necessitated movement of the money, Taranhike exploded, saying: “You can go on and write what you want. I have been persecuted for so long by the newspapers, I don’t care anymore and, in any case, the issue is under a special investigation which the CID is completing now.”

His alleged accomplice, Murove, refused to comment.

“I cannot comment on those issues. Ask the CEO who is the accounting officer or the board chair,” he said.

Madanha said: “I have also made inquiries on this issue. It is already under police investigation, you may therefore need to check with the police on how far they have gone with those investigations.”

National police spokesman Paul Nyathi confirmed the developments, but declined to give details.

“There are many cases relating to Zinara which are in court now, while others are pending. So I would not want to give details of those cases because it would be sub judice for police to do so,” Nyathi said.

A recently released audit report exposed massive financial abuse where US$142 million was paid to illegally hired road maintenance contractors.

The audit, by Grant Thornton, covered the period between 2011 and 2016 when Zinara was being led by former CEO Frank Chitukutuku.

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12 YEARS AGE OF CONSENT SPARKS DEBATE

LEGISLATORS have dismissed reports that they are pushing for the downward review of the age of consent to 12 years, explaining that they were calling for minors who are sexually active to access treatment and family planning services.

The county’s age…

LEGISLATORS have dismissed reports that they are pushing for the downward review of the age of consent to 12 years, explaining that they were calling for minors who are sexually active to access treatment and family planning services. The county’s age of consent stands at 16 years as Parliament is yet to pass a bill for it to move to 18. The legislators said some minors as young as 12 were now