Business

Zimbabwe’s CBZ Holdings unveils new board of directors to steer transformation and growth

AMHVoices: Education system needs facelift newsday April 8, 2020 ALTHOUGH it was on the eve of school holidays, the coronavirus pandemic, which has had a devastating effect worldwide, had an immediate … NewsDay Zimbabwe

Fastjet to resume flights on April 21

Low cost carrier, fastjet Zimbabwe intends to resume operations on April 21, two days after the lapse of the country’s lockdown period, a trading statement has resumed. By Staff Reporter The trading statement revealed that all fastjet employees have accepted a voluntary salary reduction effective from the beginning of April Furthermore, the company had reduced salaries of its staff. The company was, however, optimistic that its financial situation would not take a massive knock, as it expects that reduced global oil prices will help cushion it from the financial impact from the projected low passenger demand. In March, fastjet said they were confident they had sufficient resources to meet its operational needs until the end of June 2020, but this was before the COVID-19 pandemic disrupted ...

Zimbabwe’s FX Shortage to Worsen as Virus Upends Tobacco Season

Zimbabwe’s severe shortage of U.S. dollars is set to worsen as the coronavirus threatens the start of sales of tobacco, its second-biggest source of foreign exchange. “It’s the cash flow that’s the biggest concern for everyone,” Ben Gilpin, executive director of the Commercial Farmers Union, said by phone from the capital, Harare, on Tuesday. “The people that provide finance to tobacco farmers did so until the end of March, with the expectation that from April debts are being serviced, but there is no money now.” Like its neighbors, Zimbabwe has imposed a 21-day lockdown to halt the spread of the virus. That’s shuttered mines, while remittances from abroad have also declined. The International Monetary Fund said in its latest Article IV report that the country had $109 ...

Fastjet Says Fastjet Zimbabwe Planning To Restart Flights On 21 April

* TRADING STATEMENT * FASTJET ZIMBABWE IS CURRENTLY PLANNING TO RESTART FLIGHT OPERATIONS ON TUESDAY 21 APRIL 2020 * ALL FASTJET GROUP EMPLOYEES HAVE ACCEPTED A VOLUNTARY SALARY REDUCTION EFFECTIVE FROM 1 APRIL 2020 OF UP TO 30% * SALARY REDUCTION DEPENDING ON THEIR CURRENT SALARY SCALES, WITH LOWEST EARNERS AFFECTED LEAS * EXPECTS REDUCED GLOBAL OIL PRICES TO HELP TO CUSHION FINANCIAL IMPACT OF FORECAST LOWER PASSENGER DEMAND WHEN OPERATIONS RESTART * TIMELINES DISPOSAL OF CO’S HOLDING IN FASTJET ZIMBABWE ARE NO LONGER PRACTICALLY ACHIEVABLE * FASTJET ZIMBABWE HAS FULLY PAID OFF ALL OF ITS EMBRAER EMB145 AIRCRAFT * INVESTOR CONSORTIUM CONFIRMED THAT IT REMAINS COMMITTED TO DIVESTMENT PROPOSAL * INVESTOR CONSORTIUM INDICATED THAT IT WOULD POTENTIALLY FORESEE MODIFIED TERMS OF SALE NEEDING ...

COVID-19 holds up Prospect

Zimbabwe may have to wait a little bit longer to see development of its newest lithium mine, all due to the impact of coronavirus on raising capital on the world markets. — newZWire Prospect Resources, the Australian-listed company that is developing the Arcadia mine near Goromonzi, says it is to launch a rights issue and lay off workers, in response to the recent world market turmoil that has made raising working capital difficult. The company had planned to start development at Arcadia in 2020, but progress may now be delayed as the company cuts costs and looks to shareholders for extra money. Prospect will make a non-renounceable share rights issue to raise as much as US$2 million to keep operations running, pending finalisation of funding and off-take talks with Afreximbank and Russia’...

Half of Zimbabwe’s population could starve if aid is not received, IMF warns

The Southern African nation needs hundreds of millions of dollars in foreign aid in coming months to fend off a humanitarian crisis that’s likely to leave more than half of the population hungry, the Washington-based institution said. “The outbreak has greatly amplified uncertainty and downside risks around the outlook,” the IMF said in an Article IV report, released on Friday. To date, Zimbabwe has nine confirmed infections and, like much of the region, the government has imposed a lockdown to halt the spread of the virus. An economic crisis marked by a dire shortage of foreign currency and power supply, coupled with the drought has increased the number of poor people in what was once one of Africa’s most industrialised countries. The fund estimates that the economy contracted 8.3% in 201...

Anxiety over rights violations as Zimbabwe enforces lockdown

Bulawayo, Zimbabwe – Off the open-air market in Bulawayo, Zimbabwe’s second city, armed soldiers and police controlled a modest queue of vegetable traders, scuttling people away as soon as they make their purchase. On a normal day, the marketplace would be a bustling hive of activity. But on Monday, as Zimbabwe entered its second week of a 21-day lockdown aimed at mitigating the spread of the new coronavirus, activity was sharply reduced. Standing near a neglected mass of open-air empty stalls covered in black sheeting is Mary Gumbo. The 69-year-old usually sells tomatoes here, but now she has to bundle her wares for resale in her neighbourhood. She complains the tight security and transport controls have reduced her earnings. “I had to get off the bus and walk to ...

Fungibility suspension to ‘materially’ affect Old Mutual Zim share price

DIVERSIFIED financial services group, Old Mutual Limited (OML) has advised shareholders in the Zimbabwean unit that the fungibility suspension order on its shares would materially affect the share price. BY TATIRA ZWINOIRA Last month, to control the parallel market forex rate, Finance minister Mthuli Ncube placed a fungibility suspension order on Old Mutual, PPC Limited and Seed Co International Limited shares on the Zimbabwe Stock Exchange (ZSE). “The fungibility suspension order suspends every exchange control authority, directive or order granted by any exchange control authority allowing the fungibility of the company’s shares listed on the Zimbabwe Stock Exchange until March 12, 2021. It does not affect transactions conducted on the ZSE on or before March 13, 2020 and in respect of wh...

Simbisa lays off contract workers

LOCAL companies are starting to feel the pinch of coronavirus, with Zimbabwe Stock Exchange (ZSE)-listed fast-foods concern Simbisa Brands announcing that it is laying off contract workers, putting employees on leave and freezing acting appointments, among other cost-cutting measures. — By Fidelity Mhlanga Zimbabwe is on its ninth day of the 21-day lockdown announced by authorities to contain the spread of COVID-19 in the country, which has nine cases including one death. Though Simbisa Brands falls under the essential services, which have been allowed to operate during the lockdown period, due to subdued business activity, the company said it was not generating sufficient revenue to pay salaries. In an internal memo seen by NewsDay Business, authorities at the fast-foods outlet entity ann...

Govt mulls funding for SMEs, informal sector

GOVERNMENT is considering availing funding to cushion informal and small-scale enterprises that have not been spared by the global pandemic, COVID-19, NewsDay Business has established. — By Fidelity Mhlanga In a statement, the Women Affairs, Community, Small and Medium Enterprises Development ministry solicited a database from member associations for onward submission to government. “In view of the global outbreak of COVID-19 and the subsequent national shutdown to minimise the spread of the disease, government is considering a number of inventions to minimise the impact of the lockdown. One of the interventions is to assist people engaged in the SME and informal sector through providing assistance to cushion loss of income for subsistence,” the ministry said in circular dated April 1, 202...

Fuel price up 15%

GOVERNMENT has hiked fuel prices by 15% following a shift in the exchange rate and an increase in excise duty. BY FIDELITY MHLANGA This is happening at a time international oil prices have tumbled as a result of the coronavirus pandemic. Local petrol price went up from $18,28 to $21,77 and diesel rose from $18,66 to $21,52 according to new prices announced by the Zimbabwe Energy Regulatory Authority (Zera) at the weekend. Zera acting chief executive officer Addington Mazambani told NewsDay Business that the hike was prompted by the increase in fuel duty as well as shift in the exchange rate. “The main drivers for our fuel price increase are exchange rate increase from $18 to $25 and increase in duty from $4,26 to $5,82 for diesel and from $4,44 to $7,28 for blend,” he said . The global oil...

Local bourse urges caution

THE Zimbabwe Stock Exchange (ZSE) says trading in securities of all issuers listed on the bourse will be done under caution until the expiry of the statutory lockdown period in a bid to protect investors during the period of uncertainty. BY FIDELITY MHLANGA The bourse has also directed companies to issue special trading updates chronicling the impact of the coronavirus on their operations after the lockdown. Government last week gazetted the Public Health (COVID-19 Containment and Treatment) National Lockdown) Order, 2020 through Statutory Instrument 83 of 2020. Section 4(1) of SI 83 of 2020 orders a lockdown for a period of 21 days with effect from March 30, 2020 to April 19, 2020. “Following the issuance of the lockdown order, some listed entities have either scaled down or completely ha...

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