Business

Invictus cuts board, management fees

AUSTRALIAN energy firm, Invictus Energy Limited (IEL) has announced a 25% cut to its board and management annual fees and remuneration in light of global market and oil uncertainty over the coronavirus (COVID-19). BY TATIRA ZWINOIRA Due to the uncertainty around COVID-19, global oil market prices have fallen substantially at one point dropping below zero. “In light of the global market and oil industry environment, the board and management has focused on reducing costs within its control,” said IEL managing director Scott Macmillan, in a quarterly update. “To this end, the company has made cuts in various categories of its corporate costs in Australia from its already low overheads. The board and management have agreed to reduce their annual fees and remuneration by 25-50% effective April ...

Tobacco sales expected to pacify exchange rate

THE commencement of the 2020 tobacco marketing season on Wednesday is expected to pacify the volatile exchange rate through the injection of fresh forex liquidity in the market. — By Fidelity Mhlanga The 2020 tobacco marketing season opened this week after a delay of over a month as authorities battle to contain the spread of the coronavirus. “My take is that it should provide some respite to a distressed economy. But I am concerned about the general depressed prices of commodities,” said economist Prosper Chitambara. Tobacco is one of the country’s top foreign currency earners and is key in providing liquidity for the importation of key essentials that include fuel, grain and raw materials. “Rates will be affected after a month or so when the loans from the contract buyers have been paid ...

COVID-19 to hit Q2 collections: Zimra

THE Zimbabwe Revenue Authority (Zimra) says second quarter collections will be adversely affected by business closures and reduced profitability due to the impact of the COVID-19 pandemic. BY TATIRA ZWINOIRA In the first quarter ended March 31, 2020 before the start of the national lockdown, Zimra surpassed its cumulative net revenue collections by 10,42% to $13.88 billion against a target of $12.57 billion. However, following the COVID-19 national lockdown and trade restrictions within major export destinations, second quarter revenue collections are expected to drop with the economy expected to contract by 7,4% this year. “The key challenges faced by the authority in the second quarter are largely related to the COVID- 19 pandemic that will result in closure of some businesses, reduced p...

Zimbabwe reopens tobacco auctions after coronavirus delay

Tobacco is the second biggest earner of foreign exchange after gold, and last year generated $747 million in exports mainly to China and Europe, according to central bank data. Industry regulator Tobacco Industry and Marketing Board (TIMB) said production was expected around 230 million kilogrammes after rain cut the area planted by 12% and fewer growers planted the crop compared to last year. Farmers, who produced an all time high of 259 million kgs of tobacco last year, sell their crop to tobacco merchants, who process the crop for export. “The crop before us was generally grown under grim weather conditions characterised by late rains and long dry spells,” Pat Devenish, the TIMB chairman said at a ceremony to mark the beginning of the tobacco selling season in Harare. After a drought la...

Mthuli Ncube admits that Zimbabwe is facing collapse

PRESIDENT Emmerson Mnangagwa’s government has sent a distress call to the International Finance Institutions for a bail package, admitting the cashless government was close to collapse and an implosion was imminent in the absence of the stimulus rescue package. By Everson Mushava According to Africa Confidential, Finance Minister Mthuli Ncube wrote to the International Monetary Institution, World Bank and African Development Bank highlighting the country’s predicament and pleading for cash. Ncube’s letter was addressed to David Malpass, President of the World Bank, Kristalina Georgieva, managing director of the International Monetary Fund, and Akinwumi Adesina, President of the African Development Bank. The Finance minister admitted ‘responsibility for the recent policy missteps during lat...

Newsday Edition 30-04-2020

You may also do a direct download for our papers through these links NewsDay E-paper edition for Thursday 30 April 2020 TheIndependent Edition for Friday 31 April 2020 Do you have a coronavirus story? You can email us on: news@alphamedia.co.zw NewsDay Zimbabwe

Masiyiwa tops Gates, Zuckerberg on Facebook influentials list

ZIMBABWE’S richest man, telecommunications mogul, Strive Masiyiwa, was the leading influencer among business leaders on Facebook in the week ended April 19, 2020 beating the world’s second wealthiest man, Bill Gates, at number seven. TATIRA ZWINOIRA This was revealed in the Facebook owned, CrowdTangle, a leading content discovery and social monitoring platform for publishers and brands. Though Masiyiwa’s wealth at US$1,2 billion is but a tiny fraction of Gates US$106,1 billion, both valued by American business magazine Forbes, the former’s recent activity seeking out COVID-19 relief for Zimbabwe and Africa has edged the latter as an influencer among business leaders. More recently, on Tuesday, Masiyiwa took to Facebook to call for increased humanitarian aid for Zimbabwe due to numerous cri...

RBZ orders forex priority list

THE Reserve Bank of Zimbabwe (RBZ) has ordered the priority list for foreign currency payments to be applied with immediate effect to ensure that foreign currency resources are channelled to the productive sectors of the economy in light of the COVID-19 pandemic. BY MTHANDAZO NYONI “Reference is made to various economic measures implemented by the bank to sustain company operations and ensure quick resuscitation of economic activity during and post the COVID-19 pandemic,” said RBZ exchange control director Farai Masendu, in the new RBZ exchange control circular No.5 of 2020 to authorised dealers and bureaux de change. “Accordingly, and consistent with exchange control circular No. 3 of 2020, authorised dealers and bureaux de change are advised that the attached priority list for foreign cu...

Harare Hospital donation brief

The Solar Shack donated a Grundfos Submersible solar water pump to Harare Hospital in response to the COVID 19 outbreak. The donated Grundfos SQF solar submersible pump & Suntech solar panels will ensure that water is continuously pumped at the hospital from the Hospitals borehole without having to rely on power from the grid. This pump will ensure that Harare Central Hospital will always have access to clean potable water at all times. The donated Grundfos Solar Water Pump is at a cost of US$5,000.00 & includes the following: Grundfos SQF 2.5-2 Submersible Solar Pump4 x 325Watt Suntech Solar Modules1 x IO50 Controller6 meter Solar Panel Mounting Frame Special thanks to Solar Shack and its partner African Energy USA. The handover of the system was done on 22 April 2020 at the hospi...

Steward Health rebrands to Maisha Health Fund, offers greater value

Smart digital and technology solutions provider, Cassava Smartech Zimbabwe has rebranded its medical insurance business Steward Health to Maisha Health Fund. Announcing the move, Cassava Smartech CEO, Eddie Chibi expressed that the rebranding will reposition the business to reflect its enhanced product packages. “The rebranding reflects our drive to enhance our medical insurance offering to leverage our digital platforms and promote greater inclusion and wider access to quality health care by many,” said Chibi. He added that the new Maisha Health Fund will offer clients greater control of their medical insurance and offer a wide variety of affordable packages to choose from, suiting every customer’s unique needs and lifestyle. “The enhanced value proposition will offer more benefits to cli...

RBZ reviews downwards bank rate

In a paper authored by the Zimbabwe National Chamber of Commerce titled ‘Sustainable and Flexible Economic Interventions to Address Covid-19’ released earlier this month, business called for interest rates to be slashed to 20% from 35%. Slashing the interest rates was to allow businesses to recover from the impact from COVID-19 that has hit Zimbabwe’s trade, mining, manufacturing, tourism, and investment. “The Bank Policy rate will be reviewed downwards from 25% to 15% per annum with effect from Friday, 1 May 2020, with the expectation that banks will do the same to provide affordable financial facilities to their customers during these challenging times,” said RBZ governor John Mangudya, in a statement on Wednesday. “The Bank’s Monetary Policy Committee (MPC) met on 24 April 2020 and deli...

China to Help Build $3 Billion Coal Plant in Zimbabwe

“CGGC will develop the project and assist with the fund raising,” Caleb Dengu, chairman of Rio Energy Ltd said last week. The power plant at Sengwa will be constructed in four phases of about 700 megawatts each, bringing total capacity to 2,800 megawatts. “We have coal reserves to support a 10,000 megawatt plant at Sengwa,” Dengu said. A 250 kilometer (155-mile) pipeline will carry water from Lake Kariba to Sengwa. The pipeline, and a 420 kilovolt-ampere power line, will be built by PowerChina, said Dengu. The first phase of the project will cost about $1.2 billion, he added. The Industrial and Commercial Bank of China has given a formal expression of interest in the project and is negotiating with Sinosure, also known as the China Export and Credit Insurance Corp, to cover country risk in...