Business

Govt seek $5 million for COVID-19 fight

GOVERNMENT is seeking to raise $500 million through Treasury Bills (TBs) to meet the COVID-19 pandemic expenditure, the Reserve Bank of Zimbabwe has said. BY FIDELITY MHLANGA The apex bank has invited banks and building societies to subscribe to the sovereign paper with 270 and 364-day tenures of maturity. “The Reserve Bank of Zimbabwe (RBZ) on behalf of the Government of Zimbabwe hereby invites commercial banks, building societies, POSB and IDBZ [Infrastructure Development Bank of Zimbabwe] to subscribe to a Government Treasury Bill Tender amounting to $500 000 000,” the central bank announced yesterday in statement. The paper is an open tender on a yield basis. Applications must be for a minimum amount of $1 million and the number of bids per investor is restricted to two per issue. The ...

Metallon sells gold assets to Tagwirei’s Landela

Mzi Khumalo’s Metallon has completed the sale of Shamva Mine to Kuda Tagwirei’s Landela Mining Ventures, while the sale of Mazowe Mine is expected shortly. The transaction represents a change of guard in the industry. Metallon was once the country’s largest gold producer. It is now down to just a single working operation, How Mine in Bulawayo. Its other remaining mine, Redwing near Penhalonga, has been idled for over a year and is also up for sale. As the sun sets on Khumalo’s gold empire, it is rising on well-connected Landela, which has used its influence to take over key mining operations over the past year. Production at Shamva, which has stalled since last year, has now resumed after the change of ownership, Landela CEO David Brown said. “We are now focusing on growing production,” Br...

Transport and logistics start up defy economic headwinds

Transport and Logistics start-up, MartGreen international is gradually penetrating the cut throat market despite the economic challenges bedeviling the economy with a view to position itself as a transnational cargo transportation entity. BY FIDELITY MHLANGA The company which began operations in 2016 as a transport broker has expanded footprints to become one of the sought after integrating customs clearance, freight forwarding and logistics entity services. In a considerable space of time it has managed to penetrate the market and scoop several contracts to move chrome, granite, steel , fertiliser, grain among other commodities. MartGreen has forged partnerships with CMA CGM S.A, a French container transportation and shipping company as well as Swiss based Mediterranean Shipping Company. ...

Premier appoints non-executive chair

ZIMBABWE-FOCUSED miner, Premier African Minerals has appointed Neil Herbert as its non-executive chairman with immediate effect. BY MTHANDAZO NYONI George Roach, who was acting chairman, reverts to his role of chief executive. Commenting on the development, Roach said: “I am grateful that Neil Herbert has accepted this appointment and particularly at this time when our company is looking to exploit the opportunities both for cash generative assets and to add value as we anticipate granting of our EPO application at Zulu Lithium and Tantalum and through our existing and recently acquired exploration and development projects.” “I look forward to further board and management changes and a stronger focus on operational efficiencies, improvements and value generation,” he said. Herbert was appo...

CBZ Bank Launches Money Transfer Centre

With the world now a Global Village, it is imperative for local players to establish strategic partners that will help them to tap into the diaspora market. Zimbabwe’s leading commercial bank has launched an exclusive Money Transfer Centre, located at the corner of First Street and Robert Mugabe Road. The Centre will serve customers who receive money sent through CBZ Bank’s strategic partners, Western Union, World Remit, MoneyGram, Mukuru, HelloPaisa and Xpresslinks. In an interview with our reporters CBZ Holdings Group Executive Marketing and Corporate Affairs Matilda Nyathi said the launch is in line with the Bank’s thrust to provide fast and reliable service not only to its customers but the nation at large, ‘We looked at the foreign remittances space and realised the amount of time peo...

African Sun reopens Troutbeck

AFRICAN Sun Hotels and Resorts says it has completed refurbishments at its Troutbeck Resort which reopened its doors today. Business Reporter The resort’s shutdown was prompted as a result of the national lockdown prompted the COVID-19 pandemic. In a statement, African Sun said the group took advantage of the lockdown to complete refurbishments to ensure it keeps in touch with modern and international trends “African Sun Hotels and Resorts will be reopening Troutbeck Resort from the 1st of July since the closure of all business operations earlier this year in March in accordance to the national lockdown following the global outbreak of the Covid 19 Pandemic. African Sun Hotels and Resorts took this opportunity to complete refurbishments at Troutbeck Resort to ensure we keep up with modern ...

Lafarge Zim posts $178,2 million profit

LISTED cement manufacturer, Lafarge Cement Zimbabwe inflation adjusted profit after tax grew significantly to $178,2 million during the year ended December 2019,driven by mainly by increased revenue . This was an improvement from a profit position of $8,2 million achieved in 2018. In a statement accompanying the 2019 results, Lafarge said it did not accrue new borrowings during the year under review. In the context of a hyper-inflationary environment and fundamental policy reforms, recorded a positive performance in the year 2019, marking a significant turnaround for the local cement manufacturing giant. “The company recorded its best financial performance in over 5 years, posting inflation adjusted revenues of $ 919 million, a stellar 104% leap from $ 449 million in 2018,” the company sai...

Interim Zisco board chair leaves in a huff

Economist Gift Mugano has resigned as Ziscosteel interim chairperson after Industry minister Sekai Nzenza reportedly censored him for making remarks that were deemed in ‘conflict’ with his role as a board member of a State enterprise. By Everson Mushava In a letter to Nzenza dated June 29, Mugano said he was reluctant to sacrifice his freedom to comment candidly or give constructive criticism on policy issues in exchange for a position in a State entity. “As a follow-up to our conversation over my comments on public media on government policies which are viewed by some sections of government as in direct conflict with my role as a board member of a State enterprise, I took a reflection of the concerns to resign from the Ziscosteel board,” Mugano wrote. “The decision to resign is built on a...

FAO doubts Zim cereal import capacity

ZIMBABWE’S cereal import requirements for the 2020/21 year are estimated at about 1,1 million tonnes amid concern over the country’s capacity to access offshore supplies at a time it is battling worsening foreign currency shortages, the Food and Agriculture Organisation (FAO) has said. BY FIDELITY MHLANGA This quantity mostly comprises maize, estimated at over 750 000 tonnes. “Due to a second consecutive year with a below average cereal outturn and the low level of domestic stocks, cereal import requirements in the 2020/21 marketing year (April/March) are estimated at about 1,1 million tonnes, more than 50% above the five-year average. This quantity mostly comprises maize grain, estimated at over 750 000 tonnes, nearly double the average,” FAO said in its June 25 Global Information and Ear...

Keep calm: Econet hits back at government ban

Econet has urged users of its mobile money platform, EcoCash to keep calm and ignore a statement from the government on Friday that said the money transfer service was banned. In a statement, Econet told its clients to “remain calm and to continue to do your lawful transactions as usual”. Econet said it was regulated by the Reserve Bank of Zimbabwe and the statement from Nick Mangwana, the Information ministry permanent secretary, was not binding on them. “EcoCash is regulated by the Reserve Bank of Zimbabwe and would naturally expect a directive of that nature and significance to be communicated by the Reserve Bank of Zimbabwe,” the company said.  Econet, which says it has more than 10 million subscribers on its EcoCash platform, said, should there be changes “we shall give you adequ...

Government shutters EcoCash

The government on Friday struck a mortal blow on Econet, suspending mobile money transactions, which will affect EcoCash the most, and suspended trade on the Zimbabwe Stock Exchange in an effort to contain the collapse of the country’s currency. In a statement on Friday evening, the permanent secretary in the Information ministry, Nick Mangwana said the ban on mobile cash was part of President Emmerson Mnangagwa’s pledge to deal with wolves in sheep’s skin among the country’s population. Econet’s EcoCash is the biggest mobile money service and the measures will be felt hardest by the Strive Masiyiwa owned company, which has a 94% market share. “Government is in possession of impeccable evidence which constitutes a prima facie case whereby the phone-based mobile money systems are conspiring...

As Zimbabwe’s Economy Crumbles, Mugabe’s Successor Courts Unrest

Zimbabweans celebrated in their tens of thousands when the military ousted Robert Mugabe and installed Emmerson Mnangagwa as president. Two-and-a-half years later, the party is over. Mnangagwa, 77, came to power promising political reform and a wave of foreign investment, but there’s been little of either. Instead, outside funds are being withheld and painful economic measures have been imposed, with the army deployed to violently quell protests. Such is the public disquiet that many ruling party leaders, including some with military links, are losing patience with Mnangagwa, four people familiar with the situation said, asking not to be identified due to the sensitivity of the situation. Military leaders took the unprecedented step of calling a press conference this month to say they were...