Six people are said to have died on the spot when a commuter omnibus they were travelling in collided with a haulage truck this morning along Beitbridge road in Mwenezi. The accident occurred at Sosonye Bridge, 174 km peg along Beitbridge Road. Mwenezi…
Source: Edgars gets new investor | The Herald November 12, 2019 South African retail giant, Edcon has completed the disposal of its shareholding in Zimbabwe-based clothing chain Edgars Stores Limited to Mauritius incorporated entity SSCG Africa Holdings, as the group realigns operations to remain sustainable. Edcon controlled a 41 percent stake in Edgars Zimbabwe, which […]
Source: Edgars gets new investor | The Herald November 12, 2019
South African retail giant, Edcon has completed the disposal of its shareholding in Zimbabwe-based clothing chain Edgars Stores Limited to Mauritius incorporated entity SSCG Africa Holdings, as the group realigns operations to remain sustainable.
Edcon controlled a 41 percent stake in Edgars Zimbabwe, which has 25 branches across the country as well as 25 Jet Stores, a micro-finance business and Carousel garment manufacturing factory in Bulawayo. The transaction entails SSCG’s acquisition of a 100 percent shareholding in Bellfield Limited which is an investment vehicle owned by Edcon. The investment limited holds the 41 percent stake in Edgars Zimbabwe.
In a notice to its shareholders, Edgars indicated the completion of the transaction between Edcon and the Mauritian-based SSCG.
“The Company has received notice from SSCG Africa Holdings Limited that it has recently concluded a transaction in which it has acquired from Edcon Limited 127,138,510 shares (through Bellfield Limited) representing approximately 41,07 percent of the issued share capital of the Company,” said Edgars.
The Edgars transaction is not the first by SSCG Africa in Zimbabwe, as the firm also took a stake in resources group, Vast Resources with an US$8 million transaction- split into two with an equal amount for payment of shares and as a loan. By close of Friday trading on the Zimbabwe Stock Exchange (ZSE), Edgars was at 20,3 cents which represented a 9 percent decline on prior week level. — Business Reporter.
Source: RBZ in market for $300m TBs | Herald (Business) Golden Sibanda Senior Business Reporter THE Reserve Bank of Zimbabwe (RBZ) is back in the market with a fresh batch of Treasury Bills (TBs) — this time with a shorter tenure compared to the last issuance — to raise $300 million Treasury requires to finance […]
Golden Sibanda Senior Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) is back in the market with a fresh batch of Treasury Bills (TBs) — this time with a shorter tenure compared to the last issuance — to raise $300 million Treasury requires to finance key Government programmes. Market intelligence indicated yesterday that part of the financial resources raised will go towards funding the 2019 National Budget needs. The latest fundraising comes as the central bank is liquidating an almost equivalent value of TBs that have matured.
The RBZ has reduced the tenure for the current TBs by half to 180 after the previous attempt to raise $150 million found few takers (34 percent was allotted) amid revelations that the market has no appetite for long-dated paper due to the prevailing inflationary environment.
As such, the central bank this time hopes for better response to the 182-day Government paper, which is open to commercial banks, building societies, POSB and Infrastructure Development Bank (IDBZ).
Allotment will begin today and special features of the TBs include prescribed asset status, liquid asset status, tradability, tax exemption, acceptability as collateral for overnight accommodation by central bank and allotment at a weighted average rate.
“Applications must be for a minimum amount of one million Zimbabwe dollars (ZWL$1 million),” the RBZ said.
The apex bank is also using the current TB raising exercises to define a yield curve for Government paper, which will help guide issuance of future Government securities such as the longer dated bond, which it intends reintroducing.
Notably though, while earlier market operations to raise smaller amounts of $30 and $60 million through 91-day TBs were met with overwhelming market response, it has been a different case with longer term paper, shunned by the market.
The last time the bids outpaced the amount on offer was in September when the 91-day auction was oversubscribed to the tune of 319 percent at an average yield of 13,6 percent.
In its last two TBs issuance, RBZ failed to raise the targeted amounts, underlining the huge disconnect between inflation “realities” being experienced by investors in the country and the expectations of policy makers.
Early last month the central bank was in the market seeking to raise $150 million to finance Government programmes through 365-day TBs, but only $51 million was allotted at an average yield of 15,49 percent, 40 basis point firmer than previous
Two weeks earlier, RBZ had undertaken public auction of TBs to raise $300 million, but was way off its target by a wide margin after it only managed to raise $81 million.
Market analysts say investors believe inflation will continue trending upwards, despite Government expecting to see monthly inflation dropping to 10 percent by end of the year.
The Zimbabwe National Statistical Agency reported last month that the month-on-month inflation rate in September 2019 came in at 17,72 percent, shedding 0,35 percentage points on the August 2019 rate of 18,07 percent.
The annual rate raced from 5,39 percent in September last year to 175,6 percent by June, when the last inflation figures were published.
Publication of the annual figures will resume in February next after a full year since Zimbabwe adopted local currency, which enhances between representation of the inflation trends.
Authorities expect monthly inflation to fall to 10 percent in the next two months on account of tight fiscal and monetary policy reforms.
Source: EMA fines 170 | The Herald November 12, 2019 Bulawayo Bureau THE Environmental Management Agency (EMA) has issued more than 170 tickets to offenders found either littering or using banned kaylites within two weeks of its anti-littering campaign. EMA, on October 24, embarked on a national anti-littering campaign to promote cleanliness in the country […]
Source: EMA fines 170 | The Herald November 12, 2019
THE Environmental Management Agency (EMA) has issued more than 170 tickets to offenders found either littering or using banned kaylites within two weeks of its anti-littering campaign.
EMA, on October 24, embarked on a national anti-littering campaign to promote cleanliness in the country during the rainy season.
In an interview yesterday, EMA national spokesperson Ms Amkela Sidange said the campaign sought to combat the outbreak of diseases during the rainy season associated with waste mismanagement.
She said two weeks into the campaign, the agency managed to carry out inspections in areas such as Harare, Beitbridge, Chinhoyi and Kadoma, with the exercise set to spread to the rest of the country.
Ms Sidange said the agency has issued tickets to 68 litterbugs and 104 people found using kaylites in those areas.
She said the campaign involved a prosecution exercise where anyone found throwing litter in an undesignated area will be fined.
Ms Sidange said the drastic measure seeks to remind members of the public that littering was an offence.
“Within two weeks of the operation in four cities we have issued tickets for fine to 68 offenders for littering, illegal dumping and throwing litter from moving vehicles,” she said.
“From the offenders, three were companies who were recorded under level five of defaulters and were fined $600.
“One of the companies was issued with an Environmental Protection Order which mandated it to a legal disposal site for dumping waste. Sixty-five offenders were individual defaulters who were fined from level one to level three. Level one defaulters pay a fine of $40 whereas those in level three pay $100.”
Ms Sidange said the inspection on use and distribution of kaylites ran parallel to the campaign, with Beitbridge recording more than 70 percent defaulters found using the product.
Children from Zimbabwe travelling to South Africa will no longer be required to carry additional documents like birth certificates and consent letters after Home Affairs Minister Pakitshe Aaron Motsoaledi signed a waiver relaxing the immigration requir…
Source: Afdis to localise wine | The Herald November 12, 2019 Afdis says it plans to localise popular wine brands to prop up product volumes which have been seriously waning lately. The spirits making firm’s ingenuity follows dismissal volumes performance by Afdis as aggregate demand slumped by 50 percent in the first quarter to September […]
Source: Afdis to localise wine | The Herald November 12, 2019
Afdis says it plans to localise popular wine brands to prop up product volumes which have been seriously waning lately.
The spirits making firm’s ingenuity follows dismissal volumes performance by Afdis as aggregate demand slumped by 50 percent in the first quarter to September 2019 across all segments with a sharp contrast to an inflation driven revenue which surpassed last year’s record, growing by 286 percent.
Some of the popular wine and spirit brands incorporated under Afdis include Green Valley, J C Le Roux, Nederburg, Amarula and Montello.
While addressing shareholders at the company’s AGM on Friday last week, Afdis managing director, Cecil Gombera hinted on the firm’s idea of expanding wine brands under their banner.
“Plans to localise targeted popular wine brands are afoot and should give this category the needed market place boost,” said Mr Gombera.
The move comes at a time when just like a number of businesses, Afdis suffered a heavy blow from the prevailing economic turbulence which include foreign currency shortages. Spirits volume declined the least at 31 percent a volume performance that was boosted by the launch of ‘Whitestone’, a local Gin brand. Ready to drink (RTD) category declined the most at 63 percent while wines volume declined by 49 percent to close the period under review with a total product average of 50 percent uptake.
Mr Gombera indicated the reduction in volumes uptake was mirroring the tighter disposable incomes environment. — Business Reporter.
Source: Tongaat Hulett partakes in Vision 2030 | The Herald November 12, 2019 President Mnangagwa is congratulated by Tongaat Hulett chief executive officer Gavin Hudson after launching the Kilimanjalo Project in Chiredzi on Saturday. Looking on are: Minister of State for Masvingo Province Ezra Chadzamira (left), Lands and Agriculture Minister Perrance Shiri, and Tongaat Hulett […]
Source: Tongaat Hulett partakes in Vision 2030 | The Herald November 12, 2019
Ishemunyoro Chingwere Business Reporter
Johannesburg Stock Exchange-listed sugar producer Tongaat Hulett Limited, has committed to partake in the delivering of an upper middle-income economy by 2030 as expounded by Government and the sugarcane miller has begun taking steps towards the attainment of the vision. The announcement comes as a huge endorsement to Government and its economic revival prospect which President Mnangagwa is on record saying will be anchored on private sector-led growth while Government focuses on setting the framework under which private enterprises thrive.
This was revealed by Tongaat Hulett chief executive officer Gavin Hudson at the official launch of the $600 million (US$40 million) Kilimanjaro Sugarcane project by the President in Chiredzi on Saturday.
The project involves Tongaat Hulett, banks and Government. It is expected to culminate in the development of 4 000 hectares of virgin land into sugar plantations and create 2 000 jobs in the next 12 months.
It is also envisaged to produce an additional 50 000 tonnes of sugar per year to the company’s output.
Speaking at the launch, Mr Hudson said the project had already employed up to 1 200 people with more expected.
“A total workforce of 1 200 people has already worked over 1, 2 million hours on the project today. . . some 400 hectares have already been planted and a further 108 hectares will be planted before the end of 2019,” said Mr Hudson. “Critically, it’s a broad-based economic empowerment initiative. It is fully aligned with Tongaat Hulett’s commitment to support inclusive growth, development and Government’s land reform programme. The new thrust of attaining a prosperous middle-income economy by 2030 is central to our thinking in this project,” he said.
Mr Hudson also noted that the project was poised for success and was looking forward to handing it over by November 2020. He also applauded Government for its commitment to the rule of law, the protection of property rights, implementing initiatives that focus on the ease of doing business and the clarity of vision “towards a middle-income economy by 2030”.
Of the total investment of $600 million ploughed in the project so far, CABS has extended $42 million, ZB Bank — $20 million, Infrastructure Development Bank (IDBZ) — $20 million and a consortium comprising CBZ, BancABC and others — over $400 million while Tongaat Hulett has so far invested over $50 million.
The invasion of the former First Lady Grace Mugabe’s farm by intruders is the work […]
Source: Cash withdrawals begin today | The Herald November 12, 2019 Dr Mangudya Golden Sibanda Senior Business Reporter Commercial banks were collecting $30 million new notes and coins yesterday from the Reserve Bank of Zimbabwe (RBZ) and account holders should be able to start accessing their $300 weekly cash withdrawal rations starting today. With the […]
Source: Cash withdrawals begin today | The Herald November 12, 2019
Golden Sibanda Senior Business Reporter
Commercial banks were collecting $30 million new notes and coins yesterday from the Reserve Bank of Zimbabwe (RBZ) and account holders should be able to start accessing their $300 weekly cash withdrawal rations starting today. With the weekly cash withdrawal limit at $300, at least 100 000 account holders should be able to withdraw cash this week, unless there is another injection from RBZ.
As bank vans started congregating at RBZ to collect the new $2 and $5 notes and the new $2 bond coins, RBZ Governor Dr John Mangudya said measures had been put in place to counter the channelling of cash from banks to the black market and the locking up of the new cash into the informal sector.
He did not go into detail, but the withdrawal limits, the small change-denominations, monitoring to ensure businesses bank cash and general checking are all likely to be part of that process.
Dr Mangudya said he expected all banks to start dispensing the new notes and coins today.
While withdrawal limits remain at a maximum of $300 a week, the authorities intend to review them when the situation improves in line with the thrust of restoring normalcy in the economy.
Banks are also expected to start feeding money into automated teller machines (ATMs) soon.
Dr Mangudya said the RBZ will closely monitor the movement of cash from banks to depositors to prevent the channelling of money to illegal cash dealers who have been selling notes and coins to desperate people at premiums of up to 50 percent.
Most of the premiums are paid by people needing kombi fares as other purchases are normally only cheaper for cash if no premiums are paid.
“Money moves from formal to informal sector; it gets trapped there,” said Dr Mangudya.
“So, it means we need to make sure that the economy is formalised. We need to improve production to grow the circle of the formal sector. We need to address the structural challenges.”
On enforcement of legal instruments to preserve cash in the formal system, Dr Mangudya said: “It’s a must; our teams will be on the ground to ensure that compliance is done. We also need to ensure that shops that receive cash bank it in line with the Bank Use Promotion Act. Big outlets will be monitored.”
Dr Mangudya said reports that the RBZ had not released cash to banks yesterday were incorrect.
“It’s not true that there is no money (released to the market). The banks are collecting the money, so today (Monday) is the day for collection of the money.
“Those ones that were able to be served in the morning should be able to give their customers.”
His remarks followed long queues of seemingly frustrated depositors at most banking halls.
The RBZ chief said cash supply will keep improving in the next few days as monetary authorities continue to drip-feed the market.
The introduction of new notes and coins is expected to increase the amount of cash in circulation from about $855 million to almost $1,9 billion.
Dr Mangudya has said the RBZ aims to increase the amount of cash in circulation to 10 percent of total money supply, which is close to the standard global thresholds.
Bankers Association of Zimbabwe (BAZ) vice president Mr Ralph Watungwa confirmed that banks started receiving cash from the RBZ yesterday.
“I can confirm that the new notes are being taken from the central bank and normal processes for takeover of the notes are underway,” he said.
“Some banks have already collected the notes while others are still in the process. The public was expecting to hold the cash today, but it’s a process. As BAZ we are confirming that the banks will start dispensing the new notes tomorrow (today).”
A lot of arbitrage has been in progress for some months.
Yesterday, there was still around a 35 percent premium on notes and coins sold for mobile money and foreign currency dealers were giving a similar discount on US dollars bought for cash.
Prices of many goods at the tuckshops and street vendors level are also around a third lower for cash.
Many informal traders then sell the cash they get as they buy their goods in the formal sector for digital money.
It is expected that as more cash circulates, these arbitrage gaps will diminish.
Premiums for cash payouts should fall, the gap between the cash and mobile money price of a US dollar banknote on the black market should narrow and the prices charged by informal traders for cash should start approaching the prices charged by formal traders regardless of the payment system.
Former MDC secretary-general Douglas Mwonzora is under the cosh within the country’s main opposition, with […]