Sei sulla pagina 1di 40

ZIMBABWE

INDEPENDENT
Established 1996

JULY 17 TO 23, 2020     ZW$260


Follow us on: Twitter-@Zimindependent | Facebook -The Zimbabwe Independent | WhatsApp - 0772 929 196 www.theindependent.co.zw
Zimbabwe Stock Exchange Highlights (June 26, 2020, last day of trading)
Market gainers Market losers Major currencies exchange rates

Markets Name Price (ZW$) % Change Name Price (ZW$) % Change Symbol Price Change %Change
RTG 2.6025 +20.00 MedTech 0.1177 -3.92 RTGS$/US$ 67.8546 (Bid)69.9212 (Ask) 68.8879 (Av)
Lafarge 6.0400 +19.84 Ariston 1.800 -3.49 Euro/US$ 1.1410 -0.0002 -0.02
NMB 4.1575 +18.79 Cassava 8.4517 -2.49 US$/GBP 1.2590 0.0003 +0.02
StarAfricaCorp 29.950 +17.14 FBC 14.750 -2.03 ZAR/US$ 16.7035 0.1111 +0.67

Tense Mnangagwa orders


Ncube to arm riot police
ANDREW KUNAMBURA instructed Ncube during a fiery debate on
how to contain the Covid-19 pandemic to
PRESIDENT Emmerson Mnangagwa has arm and equip the police so that they can
instructed Treasury to urgently buy a fleet effectively enforce the restriction meas-
of brand new vehicles for the police, in- ures.
cluding all-terrain troop carriers, water Covid-19 cases have increased sharply
cannons, buses and equipment used by in recent weeks, prompting public health
riot police, as the government prepares to experts to warn that the country was
enforce a renewed Covid-19 lockdown. hitting a peak characterised by higher
The cash-strapped government court- mortality and rising infection numbers.
ed controversy in April when Finance Official sources said soon after Vice-
minister Mthuli Ncube wrote to the In- President Kembo Mohadi — who chairs
ternational Monetary Fund (IMF) begging the national Covid-19 taskforce — pre-
for financial assistance. The IMF has since sented a gloomy report, Mnangagwa asked
spurned the overtures, citing Zimbabwe’s Home Affairs minister Kazembe Kazembe
failure to implement economic and politi- why the police were failing to effectively
cal reforms. enforce the level two lockdown rules.
This urgent procurement request comes Mnangagwa, the sources said, expressed
as the restive population gears for the July concern over the flooding of streets in ma-
31 demonstrations organised by the oppo- jor cities and towns, against the restrictive
sition to protest against corruption. measures which prohibit “unnecessary
Senior government officials told the movements”.
Zimbabwe Independent this week that Mnan- Kazembe is said to have replied that
gagwa, in a top-level meeting on Tuesday, To Page 2 File pic: Violent clashes loom as the restive population gears for the July 31 demonstrations.

Zim economy to shrink by 4,5%


TINASHE KAIRIZA demic, which saw Zimbabwe imposing a stantially to ease the effects of the global sided in the last quarter of 2019 and in
lockdown on March 30, the Treasury boss pandemic. The continental bank, in its January 2020, resurged from February
FINANCE minister Mthuli Ncube forecasts had projected the economy to grow by Africa’s Economic Outlook Amid Covid-19 June 2020 to June 2020. However, inflation is
Zimbabwe’s fragile economy to contract 3%, buoyed by fiscal consolidation meas- Report, highlighted that the continent’s expected to gradually decline in the sec-
by 4,5%, buffeted by the devastating im- ures being rolled out by government. GDP would shrink by 3,4%, as cash- ond half of 2020, from the peak of 785,5%
pact of Covid-19, drought and prolonged Presenting the 2020 mid-term budg- strapped nations struggle to contain the in May 2020, to 300% in December 2020,
power outages, but sees inflation dropping et review statement in the National catastrophic pandemic. responding to current monetary and fiscal
to 300% by year-end. Assembly yesterday, Ncube did not al- In April, Ncube, acknowledging the policy interventions.
His projection on gross domestic prod- locate additional budgetary outlays to herculean task of overcoming the pan- “The projected annual inflation is
uct is at variance with forecasts from rejuvenate Zimbabwe’s floundering demic-induced negative growth, pleaded consistent with reducing the month-on-
various multilateral lending institutions. economy. Analysts say in the absence of for a US$200 million rescue package from month inflation from 31,7% in June to 5%
Inflation is currently hovering around a financial rescue package, the economy international financial institutions (IFIs). in December 2020.”
800%, although Imara, a wealth manage- will continue on a downward spiral. His request was rebuffed. With Zimbabwe’s currency in freefall,
ment firm, sees it peaking at 1 200% as the The Treasury boss projected the econo- Yesterday, Ncube underscored that with Ncube said, the recently introduced week-
effects of the pandemic set in. my to rebound in 2021, growing by 7,4%, government ringing in a raft of measures ly foreign currency auction system meant
Zimbabwe has recorded 1 362 Covid-19 although the African Development Bank to stabilise Zimbabwe’s volatile currency, to stabilise the exchange rate, which this
infections, with 19 deaths and 425 recov- (AfDB) has a gloomy outlook for the month-on-month inflation would decline week stood at US$1:ZW$68, would bolster
eries. continent, particularly for countries like from 31,7% in June to 5% by year-end. efforts to contain runaway inflation.
Prior to the onset of the global pan- Zimbabwe which have not spent sub- “… inflationary pressures which sub- To Page 2
2 Zimbabwe independent July 17 TO 23, 2020

LOCAL NEWS

No cheer for distressed


Tense Mnangagwa orders
Ncube to arm riot police
From Page 1

firms in revised budget


from his engagements with Zimbabwe Re-
public Police bosses, it had emerged that
police were hampered from enforcing the
lockdown rules by a lack of vehicles and
fuel.
“Basically, there was an intense discus-
sion over the proliferation of Covid-19 cas-
Tinashe Kairiza es in the country over the past few weeks.
All members agreed that the current level
FINANCE minister Mthuli Ncube offered two was not sustainable and we needed to
no respite to Zimbabwe’s distressed com- be stricter in enforcing the lockdown if we
panies which are struggling to stay afloat are to avoid a total catastrophe. Everyone
on the back of an ZW$18,5 billion stimu- blamed the police for the failure since peo-
lus package that government announced in ple are now moving around so freely as if
May to safeguard productive sectors of the there is no deadly pandemic in our midst,”
economy from the devastating impact of an official said.
Covid-19. “So as this discussion went on, the Presi-
The quantum of Zimbabwe’s bailout dent himself took issue with Kazembe and
package, which amounted to about US$200 asked him to explain what the problem
million at the time of its unveiling, pales really was. Mnangagwa said from what is
into insignificance with what other re- obtaining on the ground, it appears there
gional countries offered to rejuvenate their is general fatigue in terms of efforts to fight
industries, as the global economy takes a the spread of the coronavirus. People are
battering from the pandemic. not following the lockdown rules and are
With the World Bank (WB) projecting the highly mobile.
global economy to shrink by 4,5% this year “In his response, Kazembe told the meet-
due to the impact of the Covid-19, South ing that he has held meetings with senior
Africa, the continent’s most developed police officers over the same concerns in
nation, availed a hefty US$26 billion res- the past two weeks and one thing which
cue package. South Africa’s bailout pack- they have consistently raised as being the
age, also announced in April, is equivalent biggest hindrance was the shortage of ve-
to 10% of that country’s gross domestic hicles and lack of fuel. He said ZRP bosses
product. have indicated to him that they are relying
Presenting the 2020 mid-term budget on a handful of old trucks which suffer fre-
review statement yesterday, Ncube, who quent breakdowns.
underscored the myriad of challenges be- “He also said they indicated that they
setting local industries ranging from pro- were in need of a new fleet of smaller cars in
longed power cuts, widespread job losses addition to trucks as well as related crowd
and a currency volatility crisis, projected control equipment in the event some turn
the economy to shrink by 4,5% this year, rogue. Kazembe also told the meeting that
with the manufacturing sector contracting the ZRP bosses indicated in their meetings
by 10,8% owing to the pandemic. At the Finance minister Mthuli Ncube presenting the mid-term budget in the National Assembly that, in addition to the vehicles, they would
time the Treasury boss announced Zim- yesterday. also require constant supplies of fuel in or-
babwe’s ZW$63, 6 billion budget for 2020, der to be able to move around.

Mid-term budget highlights ...


the manufacturing sector was forecast to “So after he had spoken at length, the
grow by 1, 9%, riding on the back of antici- President then gave an instruction to Fi-
pated demand for minerals and improved nance minister Mthuli Ncube to treat the
agriculture yields. matter as a case of emergency and avail
The WB estimates that countries across l An ZW$800 million budget surplus; l Adjustment of income tax bands to begin at funds for the purchase of the vehicles for
the continent will lose a staggering US$79 l No supplementary budget; ZW$5 001 and ending at ZW$100  000, above the police and related equipment which al-
billion in the wake of the coronavirus out- l ZW$58,6 billion revenue collection forecast; which the highest marginal rate of 40% will lows them to enforce the lockdown regu-
break, with ill-equipped nations counting l US$1,2 billion current account surplus apply effective August 1, 2020; lations more efficiently. He (Mnangagwa)
heavy losses. projection; l 2% tax extended to foreign currency trans- was saying it’s better to spend on these ve-
Under Zimbabwe’s ZW$18,5 billion res- l 4,5% GDP decline; actions as low as US$5; hicles if they are going to help save lives. He
cue package, ZW$3,5 billion in capital out- l 300% year-end inflation forecast; l 10,8% decline forecast for manufacturing also indicated that the informal sector will
lays was availed to established companies l Minimum tax threshold increased to sector; and soon be closed since it has been identified
while ZW$500 million was channelled to- ZW$5 000 from ZW$2 000 per month; l 4,1% decline forecast for mining sector. as the biggest driver of Covid-19 cases.”
wards small to medium enterprises(SMEs). Officials further said consultations have
Ncube said: “Government intervened already begun to establish how many ve-
through the Stimulus Package which fa- to support countries in their response to Notably, the mining sector, which ac- hicles the police would require and deter-
cilitated a ZW$3,5 billion facility to cater Covid-19. The bulk of the resources which counts for 60% of Zimbabwe’s export mine the amount of money to be released
for industry working capital (ZW$3 billion) Mozambique will receive will be chan- earnings, will shrink by 4,1% as produc- by Treasury.
and SMEs support (ZW$0,5 billion) with nelled towards the agricultural sector, to tion tumbles due to Covid-19-induced Mnangagwa’s administration has been
expectations to arrest a huge decline. cushion its populace from looming hunger. pressures. widely criticised for its misplaced priorities
“As a result, the sector is expected to In April, Zimbabwe also missed out on a Tourism is seen shrinking 7,4% as the ef- in terms of expenditure.
contract by 10,8% in 2020 against 1,9% US$500 million debt relief fund launched fects of the pandemic kick in, with global It continues to splurge millions of United
originally projected.” by the International Monetary Fund (IMF) arrivals set to tumble by 97% by year end. States dollars on luxury vehicles for min-
Neighbouring Mozambique, battling to to bolster efforts of the world’s 25 poorest The Confederation of Zimbabwe Indus- isters, legislators, army officials and senior
contain an extremist insurgency that flared countries to tackle the coronavirus. tries has warned of widespread job losses bureaucrats.
up earlier this year, will benefit from a At that time, the Treasury boss pleaded and a sharp decline in industrial output According to another source, Mnangag-
US$7,4 billion rescue package that the Afri- for a US$200 million rescue package from as the economy takes a battering from the wa also took to task the Minister of Public
can Development Bank (AfDB) announced multilateral lenders but he was rebuffed. pandemic. Service, Labour and Social Welfare, Paul
Mavima over the situation in public hos-
pitals and clinics, which are virtually de-

Zim economy to shrink by 4,5% serted because of a long-running strike by


nurses and doctors.
The government tried to appease health
workers, along with the rest of its work-
force, by increasing their monthly salaries
From Page 1 ZW and discourage speculative demand for for- by -10, 8% from an initial growth target of 1,9%. by 50%, in addition to a monthly US$75
The government introduced the foreign cur- eign currency.” With most countries currently undergoing Covid-19 allowance for three months. Civil
rency auction system, coupled with suspending Growth across the economic spectrum varying phases of lockdown that have restricted servants’ representatives rejected the offer
trading on the Zimbabwe Stock Exchange (ZSE) would remain depressed, Ncube said, as Zim- travel, Ncube cautioned that the tourism sector as paltry and vowed to press on with the
and clamping down on mobile money platforms babwe’s comatose economy takes a battering would decline by 7,4%. Global travel arrivals will strike.
as part of a policy move to arrest the tide of from the impact of the global pandemic, which drop by 97% between March and April, accord- “Mnangagwa basically wanted to know
speculative demand for hard currency. will see the global economy shrinking by 5,2% ing to the United Nation Tourism Organisation why it was taking too long for Mavima to
“Exchange rate levels and movements have according to the WB. (UNWTO). conclude the tripartite negotiations so that
far-reaching implications for inflation, com- The mining sector, which accounts for 60% “Zimbabwe’s foreign tourist arrivals followed things can start moving. He indicated that
petitiveness of exports, efficiency in resource of foreign currency receipts, is expected to the global path to April 2020 and average hotel government only offered them the US dol-
allocation, international confidence and bal- shrink significantly throwing into disarray plans occupancy rates, which had peaked to 33% in lar allowance because he hoped that by
ance of payments equilibrium. Therefore to rake in US$12 billion from mineral exports. February from 27% in January, dipped to a low then the TNF (Tripartite Negotiating Fo-
exchange rate developments are a matter of The sector has not been spared from the rav- of 3% in March 2020,” Ncube said. rum) negotiations would have been con-
national interest and concern to Government, ages of prolonged power cuts, limited foreign With little fiscal space to manoeuvre, the cluded,” the official said.
the business community and the general pub- currency and widespread job losses militating Treasury boss presented a ZW$63,6 billion Mavima reportedly said in response that
lic,” Ncube said. against the economy. 2020 budget against projected revenue inflows the negotiations between the government,
“In order to stabilise the exchange rate and Ncube said: “Therefore, growth for mining of ZW$58,6 billion. labour and business are ongoing and would
anchor inflation, Government introduced the sector is now projected to slow-down to -4,1% Battling to extinguish a US$8,094 billion hopefully conclude soon.
foreign exchange Dutch Auction system on in 2020, reflecting the impact of Covid-19 and public debt, Zimbabwe has also been shut out “The minister said we are still in nego-
Tuesday, 23rd June 2020, which is designed other challenges evolving around retentions. by multilateral lending institutions, which have tiations and an agreement was yet to be
to reduce exchange rate instability. The auc- These include erratic power supply and loss of emphasised that the country should implement reached. He said he was still negotiating
tion is expected to enhance transparency in the skills in the mining sector.” sweeping economic reforms to set its trou- with civil servants’ representatives and
management of foreign exchange, achieve a The manufacturing sector, reeling from a bled economy on a firm recovery and growth hoped to conclude those negotiations as
realistic exchange rate (price discovery) for the myriad of challenges, is also projected to shrink trajectory. soon as possible,” the source said.
Zimbabwe independent July 17 to 23, 2020 3

LOCAL NEWS

Ncube proclaims surplus


BRIDGET MANANAVIRE

Finance minister Mthuli Ncube (pictured),


who recently pleaded for a bailout pack-
age from international financial institutions

despite seeking bailout


saying government coffers had run dry,
yesterday took a surprise turn, announcing
that Treasury has enough money to last the
rest of the year.
He also claimed the state was liquid
enough to withstand the economic effects of
the raging Covid-19 pandemic and therefore across all the 10 provinces in the country to
did not budget for the necessary social safe- build communities’ resilience by facilitating
ty nets as some countries have been doing. income generation projects.
This is despite his April 2 letter to the “With regard to other interventions, gen-
World Bank, International Monetary Fund erally there was an increase in levels of sup-
and African Development Bank, in which port from ZW$10 to ZW$200 per individual
he passionately pleaded for at least US$200 due to increase in administration and capita
million, saying Zimbabwe’s economy could grants required for the upkeep of institu-
contract by between 15% and 20% during tionalised personnel under support towards
2020, with serious consequences for the the elderly, children in difficult circum-
country and its neighbours. stances, as well as for the disabled persons,”
He stated that 8,5 million Zimbabweans Ncube said.
(half the population) are food insecure and “Given the need to respond to Covid-19
would starve, should urgent financial assis- mitigatory measures, government has di-
tance not be provided. rected that resources under devolution be
“So bad is the situation, that it could cause channelled towards Covid-related facili-
an implosion of the state and threaten secu- ing mechanisms. The payments improved by the mobile transfers through EcoCash.” ties such as water and sanitation, isolation,
rity in neighbouring states,” Ncube warned compared to 2019 as they are now enabled The government spent ZW$67,5 million quarantine and treatment centres.”
in his leaked letter.
In response to Ncube’s plea for help,
Paris Club chairperson Odile Renaud Basso
on July 2 refused to extend more money to
Zimbabwe until the country implements
political reforms, normalises relations with
the international community, successfully
implements an IMF Staff-Monitored Pro-
gramme (SMP) and clears all arrears.
The Paris Club comprises major financiers.
Zimbabwe’s external public debt stood at
US$8,094 billion, as at the end December
2019. Of the total external debt, arrears ac-
count for 73%.
Despite begging for assistance, Ncube
yesterday emphasised that Zimbabwe had
recorded an ZW$800 million budget surplus
in the period from January to June 2020.
In his mid-year budget review presented
in Pparliament yesterday Ncube claimed
ministries have on average utilised only
46% of their fiscal votes as at June 2020,
meaning 54% of the original 2020 budget
remains unutilised.
“This enables us to operate to the end of
the year as we reallocate to cover the critical
needs, especially those related to Covid-19
and social protection. This position enables
us to avoid tabling a Supplementary Budget,
given our current levels of spending,” Ncube
said.
“Treasury will be dealing with arising
expenditure pressures, as we consolidate
our fiscal position during the remainder of
the year, taking account of revenue per-
formance against inescapable reprioritised
expenditures.”
In the original budget, Ncube had allocat-
ed ZW$6,5 billion to the health sector which
he said will cater for health infrastructure,
personnel welfare, medicines, drugs, and
sundries, among other essential hospital
equipment and necessities.
He had allocated ZW$2,4 billion to the
Public Service, Labour and Social Welfare
ministry to scale up social protection inter-
ventions in the wake of increased vulner-
abilities among citizens.
During the period from January to June,
total social protection expenditure amount-
ed to ZW$902,2 million against targeted ex-
penditure of ZW$1,253 billion, according to
Ncube. “The distribution of major expendi-
tures among other social interventions were
as follows: Drought Mitigation ZW$412,2
million, Basic Education Assistance Mod-
ule ZW$150 million, sustainable livelihoods
ZW$67,3 million, support to disabled per-
sons ZW$7,1 million, harmonised social
cash transfers ZW$158,1 million, support
to elderly persons ZW$3 million, children
in difficult circumstances ZW$5,1 million,
health assistance ZW$11,9 million and Cov-
id-response ZW$85,5 million,” he said.
Ncube said 760 000 vulnerable food inse-
cure households were supported with grain
across the eight rural provinces per month
during the first quarter, bringing the total
expenditure to ZW$414,2 million under the
food deficit mitigation strategy.
“In the same vein, government has
scaled its support for harmonised social
cash transfers to food poor and labour con-
strained households in 23 poorest districts of
the country to about 63 000 households.
The programme is aimed at household
economic strengthening, building house-
hold resilience and reducing negative cop-
4 Zimbabwe independent July 17 TO 23, 2020

LOCAL NEWS

Ncube avoids supplementary budget Dissecting the


Melody Chikono “This also implies that 54% of the origi- While there have been expectations mid-term budget
nal 2020 Budget remains unutilised. This to address the pressing issue of subsidies
Finance minister Mthuli Ncube yester- enables us to operate to the end of the which have contributed to inflation, Ncu- Victor Bhoroma (economic analyst)
day said there will be no supplementary year as we re-allocate to cover the criti- be made no intervention despite reveal-
budget as 54% of budget votes had gone cal needs, especially those related to Cov- ing that the bulk of the current expendi- l Economy declined by 4,5% in the first half of 2020.
unutilised. id-19 and social protection. This position ture, estimated at ZW$19,7 billion, was on The figures are in sync with the African Development
Presenting a mid-term budget and enables us to avoid tabling a supplemen- employment costs (inclusive of pension), Bank estimates which point to 8% economic de-
economic review statement in the Na- tary budget, given our current levels of subsidies, social benefits, goods and ser- cline for Zimbabwe as a result of Covid-19.
tional Assembly, he underscored the spending. vices as well as transfers to grant-aided l Delivered maize, at 908 000 metric tonnes in
pressing issues plaguing the economy, “Treasury will be dealing with arising institutions. the 2019-2020 season, falls short of the 2,1 million
including currency volatility and gal- expenditure pressures as we consolidate Projecting 4,5% GDP decline in 2020, metric tonnes required for household and industrial
loping inflation although he insisted the our fiscal position during the remainder against the initial budget projection of 3% use, which means Zimbabwe will continue facing
country had recorded an ZW$800 mil- of the year, taking account of revenue growth, Ncube also forecast 10,8% de- starvation. There is a need for grain imports of close
lion budget surplus. performance against inescapable repri- cline in the manufacturing sector in 2020 to one million metric tonnes.
Ncube said year-on-year inflation is oritised expenditures.” against the original projection of 1,9%. l Inflation flaring up revenue with tax revenue
projected to end the year at 300%. At a time the economy has virtually Mining is expected to decline by 4,1% performance quite impressive at ZW$34,22 bil-
Overall, he projected that the current self-redollarised amid runaway parallel in 2020, reflecting the impact of Covid-19 lion. Value-added tax (ZW$7,8 billion) and income
account would remain in surplus in 2020 market rates and galloping inflation, ana- and other challenges pertaining to forex tax (ZW$11 billion) contributed 55% of the revenue
at US$1,2 billion, mainly driven by sec- lysts said Ncube contradicted himself by retention thresholds. while intermediated money transfer tax contributed
ondary income and the goods account as pointing out that inflationary pressures There was little respite for workers, ZW$976,9 million.
well as measures on the containment of continued to undermine budgeted pro- with Ncube adjusting the income tax-free l A budget surplus of ZW$800 million from total
non-essential consumptive imports. visions — including the cost of providing threshold from ZW$2 000 to ZW$5 000. expenditure of ZW$30 billion. The surplus comes at
This, he said, was an improvement on public services — yet he made no budg- The Treasury boss said companies the expense of a living wage for civil servants, poor
the US$921 million surplus recorded in etary adjustments to cater for that. that make donations to medical facili- service delivery in healthcare and poor investment
2019. Despite companies’ revenues declin- ties owned by the government, councils in infrastructure that got only ZW$2,1 billion from a
“Resultantly, for the period January to ing, Ncube painted a rosy picture of or religious organisations will now get budgeted ZW$12 billion.
June 2020, a budget surplus of around state revenues which are seen shooting tax deductions of up to the equivalent of l Year-on-year inflation is expected to end the year
ZW$800 million has been realised. This up to ZW$34,2 billion against a target of US$100 000. at 300% (triple figures). This means Treasury may
takes account of outstanding payments. ZW$32,1 billion, resulting in a positive Donors who buy equipment or drugs be creating room for sustained growth in money
This Mid-Term Budget and Economic Re- variance of ZW$2,14 billion or 6,7% of for these facilities, or fund the construc- supply and increases in prices of basic commodities.
view takes stock of budget and economic projected revenues. tion, extension or maintenance of these l Foreign direct investment inflows plummeted
performance during the first half of the The 2020 revenue collection was pro- hospitals qualify for the tax deduction. from US$111,6 million to US$71,2 million, highlighting
year. Ministries have on average utilised jected at ZW$58,6 billion, comprising tax Starting next month, Ncube is offering Zimbabwe’s negative perceptions as an investment
46% of their votes as at June 2020,” Ncu- revenues of ZW$57,6 billion and non-tax VAT exemptions for accommodation for destination.
be said. revenue of ZW$1,1 billion. domestic tourists for 12 months. l External debt stood at US$8,094 billion and do-
mestic debt ZW$12,89 billion (US$198 million using
the auction rate) as at December 31, 2019. This

NRZ re-tenders farming project means Zimbabwe’s public debt is about 50% of the
country’s gross domestic product. There are no debt
repayment plans, meaning the country will struggle
to get new lines of credit in the near future, except
for Afreximbank’s facilities collateralised on gold.
Bridget Mananavire l Imports declined by 4% to US$1,875 billion while
exports declined by 2% to US$1,535 billion, leav-
THE National Railways of Zimbabwe ing a trade deficit of US$340 million. Exports were
(NRZ) has re-tendered a lucrative farm- affected by the Covid-19 lockdown and other eco-
ing project on its farm in Matabeleland nomic constraints. There will be more pressure on
South after frustrating its private partner foreign currency to import commodities going for-
in the agricultural business, PKD Malindi. ward while foreign currency shortages are impacting
NRZ principal property manager, imports.
identified in official documents only as
L Jiyane, wrote to the owner of PKD Ma- Brett Chulu (economic analyst)
lindi, Pathakahle Dube, advising him to
submit his project proposal on the use of l A budget surplus of ZW$800 million. Critique:
Woolendale Farm in Gwanda, stating that Quasi-fiscal expenditures. Total silence on the re-
the previous agreement had expired, an cently abolished gold incentive. The budget surplus
assertion, which the partner is disputing. is misleading.
This is despite the fact that the project l The minister is over-optimistic that inflation will
had failed to take off as a result of illegal slow down by over half to 300% by the end of the
settlers who had taken over the land. year, based on the naive hope that fiscal consolida-
Efforts by Dube to take legal action tion and a slowdown in money supply growth will
against the settlers were fruitless as the instil confidence. He conveniently ignored the rat-
NRZ, who are the owners of the land, re- tling of confidence by his political colleagues who
fused to jointly sue the villagers. are destroying the free markets.
The embattled state enterprise, which l There is a decline in the output of major minerals,
is seeking a fresh investment boost after cash crops (tobacco, soya beans) and grains.
cabinet terminated its US$400 million l 54% of budget votes have gone unutilised. There-
revival project with the Diaspora Infra- fore, there is no supplementary budget request for
structure Development Group (DIDG), is now.
also claiming to have terminated a joint l A current account surplus. Critique: Imports are
venture agreement with PKD Malindi for depressed due to forex shortages and the Covid-19
the use of Woolendale Farm. pandemic.
The farm was occupied by illegal set- l GDP growth projection revised downwards from
tlers, scuttling plans by PKD Malindi 3% to -4,5%. Critique: The minister avoided quot-
to conduct profitable business on the NRZ head offices in Bulawayo ing the recent World Bank projection of -7,4%. How
property. has the dire picture Ncube projected in his infamous
Dube, a former Zimbabwe People’s nancial documents. The Zimbabwe Land Commission ex- letter to the IMF of a two-year cumulative GDP con-
Revolutionary Army (Zipra) ex-combat- Dube said the settlers’ refusal to vacate cused itself in the protracted squabble traction of -15% to -20% changed? Ncube thinks
ant, has been seeking to recoup the mon- Woolendale Farm, measuring 1 264 hec- that has dragged on for nearly 15 years, a his ZW$ 18,2 billion will temper the dire picture he
ey he invested in the agricultural project, tares, stalled agricultural projects ranging November 2019 letter seen by this news- gave to the IMF.
which was initially earmarked to com- from cattle breeding, poultry production, paper shows. l Complete silence on the closure of the Zimbabwe
mence in 2003. market gardening and dog training. “Section 9(3)(b)(i) of the Land Com- Stock Exchange yet he is buoyant about the success
However, the NRZ says it is only inter- He said he had attained all requisite mission Act provides that the Commis- of the Victoria Falls Stock Exchange.
ested in signing a new agreement. papers to prove that the joint venture sion shall not investigate a complaint or l It seems he does not want to upset the rul-
“As noted to you in a number of let- between the NRZ and his company still dispute where the action or omission to ing Zanu PF’s powerful groups. It could be that he
ters from NRZ to yourselves and as also exists and believes he has strong grounds which the complaint or dispute relates is wants to keep the bizzare decision out of a widely
highlighted in various interactions we to be on the land, including certificates the subject matter of proceedings before circulated document, hoping investor attention will
have had with you Mr P Dube, the joint from the Deeds Office and Ministry of any court of competent jurisdiction. be diverted away from a decision that severely un-
venture agreement between PKD Ma- Finance. “Kindly be advised that the Commis- dermines investor confidence and directly destroys
lindi and the NRZ in respect of the above The Lands, Agriculture, Water and Ru- sion is unable to handle the matter since his VFEX signature project.
property expired,” the letter from Jiyane, ral Resettlement Ministry on January 29 it was handled before High Court of Zim- l They talk of Pfumvudza method as the key driver
dated May 26, 2020, read. this year wrote a letter informing PKD babwe case number HH 289/2009 and of the Presidential Inputs Scheme Programme, but
“We note your continued interest in Malindi that the farm had not been taken has been decided by the court. Your case without the supporting irrigation infrastructure, its
further developing your proposal on your over by the government for land resettle- with us has thus been dismissed by the success is not assured. To pin the success of the
initially envisaged project. We therefore ment, confirming the farm was still un- commission on the said grounds,” the Pfumvudza programme on rain-fed cropping is
kindly request you to submit to us your der NRZ ownership. letter written by the commission’s acting unwise.
detailed proposal of your planned project “We have checked our land database general manager, one P Chamunorwa, l Silence on cartels and Green Fuel’s ethanol
for our consideration.” and observed that the farm in ques- reads. monopoly.
Jiyane also requested several docu- tion belongs to the National Railways of In response to summons by the com- l He is aware of gold leakages, but offers no strat-
ments from Dube, including the pro- Zimbabwe and was never acquired by mission, the villagers said they ap- egy to deal with the menace.
posed initial investment, financial per- government for land resettlement pur- proached the office of Vice-President l Ncube’s overall tone: Budget is under control and
formance, returns to stakeholders, proof poses,” reads a letter signed by D Tshuma Kembo Mohadi and the Member of Par- a better second half of the year are the sub-texts of
of similar projects, audited financial on behalf of the permanent secretary in liament of the area to seek political re- the entire budget review.
statements and other company and fi- the Ministry of Lands. course on the matter.
Zimbabwe independent July 17 TO 23, 2020 5

LOCAL NEWS

NatPharm
top bosses
sacked in
tender
controversy
BRIDGET MANANAVIRE

SEVEN National Pharmaceutical Company (Nat-


Pharm) bosses have been fired as the company
reels from allegations of multi-million dollar
corruption involving the acquisition of medicines
and equipment meant for the Covid-19 pandemic
response.
Those who have been fired are managing di-
rector Flora Sifeku, operations manager Charles
Mwaramba, finance manager Rolland Mlalazi,
human resources manager Walter Nhau, regional
manager Raguel Mthombeni, stores pharma-
cist Rumbidzai Kanhema (Matambanadzo) and
Bridget Kumapenda.
NatPharm is mandated with the procurement,
storage and distribution of medicines and medi-
cal equipment for public health institutions.
Some of the managers were implicated in the
Drax International LLC US$60 million Covid-19
medicines supply scandal.
They were arrested and face charges of criminal
abuse of office.
Sifeku, Mwaramba and Mlalazi were arrested
early this month and are being accused of pro-
cessing government procurement without fol-
lowing proper tender procedures.
In a July 14 internal email with the subject head
“Termination of contracts for some managers”,
acting managing director Zealous Nyabadza said
the seven have been dismissed from their posts
with immediate effect. This email serves to in-
form you that the following managers have been
dismissed from NatPharm with immediate ef-
fect,” Nyabadza said, without elaborating.
An unprecedented purge has already seen sev-
eral Ministry of Health officials and chief execu-
tive officers of major referral hospitals being fired.
Yesterday, several senior managers at the
Health Services Board were also either relieved of
their duties or transferred.
“This is part of the large-scale purging of those
perceived to be involved in the controversial cas-
es surrounding the procurement of medical sup-
plies and Covid-19 equipment. In fact, more of
these senior people are going to fall by the way-
side going forward,” an official said.
First to fall was former Health minister Oba-
diah Moyo, who was fired on July 8 by President
Emmerson Mnangagwa for what he deemed be-
haviour inconsistent with a member of cabinet.
Moyo was arrested last month after an inves-
tigation by the Zimbabwe Anti-Corruption Com-
mission. He was freed on bail and returns to court
on July 31.
Moyo is facing charges of corruption and crim-
inal abuse of office over his role in a deal with
Drax to supply personal protective equipment
and Covid-19 test kits. If convicted, he faces a fine
or up to 15 years in prison.
A representative of Drax, Delish Nguwaya, was
also arrested and is facing charges in connec-
tion with the contract. Nguwaya is also on bail.
His company has, however, denied wrongdoing
and has written to the government protesting the
cancellation of the procurement deal.
Apart from the Drax controversy, the Ministry
of Health has also been accused of mishandling
the procurement of Covid-19 materials through a
Namibian-based company, Jaji Investments.
Both deals were concluded without the ap-
proval of the Procurement Regulatory Authority
of Zimbabwe. The Drax deal was cancelled af-
ter journalists exposed the transaction, sparking
public outrage.
The Health Service Board last week fired chief
executive officers of central hospitals, while di-
rectors in the Ministry of Health were sent on
forced leave as part of what was termed a restruc-
turing exercise.
Those fired are Ernest Manyawu (Parirenyat-
wa Group of Hospitals), Tinashe Dhobbie (Sally
Mugabe Central Hospital, formerly Harare Central
Hospital), Enock Mayida (Chitungwiza Central
Hospital), Nonhlanhla Ndlovu (United Bulawayo
Hospitals) and Leonard Mabhandi (Ingutsheni
Hospital).
6 Zimbabwe independent July 17 TO 23, 2020

INTERVIEW

Offloading ZB stake a
THE state-run National Social Security
Authority (Nssa) has decided to offload
its stake in ZB Bank. A red flag has
been raised amid concerns that if one
of the bidding investment vehicles

strategic move — Nssa


clinches the deal, the transaction
would potentially violate banking
regulations. Zimbabwe Independent
reporter Melody Chikono (MC) spoke to
Nssa’s acting CE Arthur Manase (AM,
pictured) on why the pension scheme benefits that the scheme can afford to pay
is offloading its stake, among several with implementation of the necessary re-
other issues. forms. As usual, the reviews will be taken
with consideration on the long-term sus-
tainability of the schemes.
MC: Why have you decided to offload Nssa is also evaluating the feasibility
your stake in ZB? of paying part of the pensions in US dol-
AM: The move is designed to create a lars, in line with what government is do-
leaner and more manageable portfolio that ing for those on the Public Service Pension
can create stakeholder value and consist- Scheme.
ently pay sustainable dividends to Nssa for MC: Tell us briefly about Nssa’s current
the benefit of pensioners and other vulner- and future investment plans.
able groups such as orphans, widows and Nssa’s investments are spread across sev-
widowers. Nssa is a significant investor in eral asset classes covering equities, proper-
various banking institutions which compete ties and fixed income. The strategic drive is
against each other, while at the same time to generate sustainable investment income
demanding significant capitalisation assis- to fund benefit improvements while grow-
tance of more than US$3 million. Nssa does ing the investment assets in real terms. So
not have this capacity. The pension fund far, the portfolio has managed to outperform
holds significant shareholding in FBC, ZB, the ZSE, inflation and exchange movements,
CBZ and wholly owned subsidiary, NBS. The implying that the authority has managed to
authority’s strategic focus is a combination create positive value. The portfolio’s growth
of divesture and consolidation to reduce since the beginning of the year is higher
duplications, improve efficiency and mini- than inflation and has also outperformed
mise capital requirement while creating a movements in the exchange rate imply-
formidable financial sector investment that ing that the US dollar value of the portfolio
guarantees shareholder returns, value pres- has increased. Some of Nssa’s strategic in-
ervation and with a strategic fit into Nssa’s vestments that have entered the top 10 ZSE
mandate. stocks include RTG, CBZ and FBC. The fu-
MC: Is your decision going to be confined ture strategic thrust is to invest in real assets
to the ZB stake or are there plans to do the that generate income, growth and impact
same in CBZ and FBC? on the social welfare of pensioners. As part
AM: There are no plans to do the same to of the transformative journey, the authority
CBZ and FBC. has earmarked the agriculture value chains
MC: The question which has raised the red as part of our impact investment strategies.
flag is why you are offloading in a hyperin- One of the key objectives of Nssa is to in-
flationary environment. Why now? Will vest in companies and projects that gener-
you not lose out? ate substantial social and economic impact
AM: The pricing and consideration has on commercial basis. According to the Food
been carefully designed to retain value in and Agriculture Organisation, “Agricultural
real terms for the benefit of the pension- activities provide employment and income
ers and contributors. The stake is not be- tity buying your stake. Why would you sell considers job security of employees as top for 60-70% of the population, supply 60%
ing sold for purely monetary consideration now and yet you already have an equity priority. Modalities will be discussed and of the raw materials required by the indus-
and the consideration has been carefully stake in CBZ? agreed by the parties as part of negotiations trial sector and contribute 40% of total ex-
thought out to avoid monetary loss. We are AM: The transactions are being brokered to conclude the transaction. port earnings and contribute approximately
well aware of the dangers of loss of value in by agents with the underlying beneficial MC: What are you going to do with the 17% to Zimbabwe’s GDP”.
a hyper-inflationary environment and this owners only revealed when the parties have proceeds of the disposal, and do you now MC: In view of Covid-19 infections, is
has been taken care of. signed non-disclosure agreements and are have benchmark returns that you expect Nssa conducting inspections at workplaces
MC: What is the implication of this trans- ready to consummate the deal. This is in the from listed equities? to ensure they follow the minimum preven-
action on pensioners’ investments and its interest of evaluating the transaction based AM: The realignment process is expect- tion standards?
impact on the banking sector at large? on merit. As things stand, Nssa is not aware ed to unlock additional funds that will be AM: In line with our mandate to promote
AM: The move is designed to create a of the parties that are represented by the channelled towards boosting benefit pay- health and safety at work, we are conduct-
leaner and more manageable portfolio respective agents or what they intend to do outs. The pricing and consideration has ing joint operations with the Ministry of
that can create shareholder value and con- with the stake. been carefully designed to retain value in Public Service, Labour and Social Welfare
sistently pay sustainable dividends to the MC: A listed company requires a caution- real terms for the benefit of the pensioners to inspect whether companies are comply-
pension fund. The realignment process is ary statement if a transaction of this magni- and contributors. The stake is not being sold ing with Covid-19 guidelines as set by the
expected to unlock additional funds that tude is about to happen involving the shares for monetary consideration and the con- Ministry of Health and Childcare. Unfortu-
will be channelled towards boosting ben- of a listed stock. Is Nssa not in breach of sideration has been carefully thought out to nately, we sometimes face resistance from
efit payouts. Nssa is committed to improv- Zimbabwe Stock Exchange regulations? avoid monetary loss. some people due to a general fear of regu-
ing the benefit levels of its pensioners and AM: This is a transaction between share- MC: Prices of basic commodities have lators, but regulation is not always there to
to cushion them from economic hardship. holders who are not bound by listing re- been going up daily. How much are pen- arrest you, but to assist you. We are also
Since April, the authority has been paying a quirements. Similar transactions have sioners getting now. Are there plans to in- facing challenges with the informal sec-
monthly bonus to its pensioners as part of been executed in the market between and crease those amounts and perhaps pay pen- tor, which is very difficult to regulate and to
interim measures to cushion them against among shareholders which does not re- sions partly in US dollars? access. Our mainstay of interventions has
the rising cost of living. We have engaged an quire the company itself to issue cautionary AM: Nssa’s mandate is to provide social been promotions rather than enforcement
actuary to carry out an actuarial valuation statements. security for its members and the general- because when one goes with a stick people
to establish a sustainable yet livable pension MC: You have investments in ZB, CBZ and ity of Zimbabweans. As such, we are always tend to be very resistant. Nssa embraces the
level. Of course, a transaction of this nature FBC. What criteria did you use to choose to mindful of the plight of our beneficiaries and notion of social dialogue in pursuit of over-
will need to be approved by the various reg- sell ZB Bank and how best can you describe will always strive to pay them decent bene- coming challenges employers and employ-
ulatory authorities, including the Reserve the historical performance of ZB Financial fits. Just in the last year alone, Nssa awarded ees face. The challenge for business is how
Bank of Zimbabwe. Holdings (ZBFH) as an investment asset? the following: a discretionary bonus equiv- to strike a balance between the safety of the
MC: The Zimbabwe Congress of Trade Un- AM: Nssa conducted a detailed confiden- alent to a month’s pension to all pension- worker and productivity. It is about surviv-
ions says this transaction was not discussed tial expert evaluation of its investments in ers in July 2019; reviewed the minimum ing as a business and ensuring that workers
by the Nssa board, you did not consult key the financial sector before it settled on this. pension from ZW$80 to ZW$200 for POBS continue to earn their wages. Unfortunate-
stakeholders and you do not have a lawful The move is designed to create a leaner and (Pensions and Other Benefits Scheme) and ly, some of the current work processes put
board resolution to exit the ZB investment. more manageable portfolio that can create ZW$240 for APWCS (Accident Prevention the worker at risk in terms of Covid-19 and
What is your comment? shareholder value and consistently pay sus- and Workers Compensation Scheme) in those must be re-engineered. We have seen
AM: Investments at Nssa are governed tainable dividends to the pension fund. October 2019; a bonus equivalent to a 13th the number of cases continue to increase
by an Investment Policy and the Public Fi- MC: There is currently a shareholder dis- cheque in November 2019 and most recent- and the numbers have been growing expo-
nance Management Act [22:19] with respect pute at ZBFH involving Nicholas Vingirai's ly another discretionary bonus equivalent nentially across the globe. The workplace
to investments classified as significant. The Transnational Holdings Limited. How will to a month’s pension in April, May and June is where we spend most of our time and
authority followed all the required govern- your exit from ZB Bank impact this? Did the 2020. therefore an area where we are put at risk.
ance procedures. Everyone who needed to dispute influence your decision to offload In July, we awarded them another discre- The workers are equally important play-
be consulted was consulted. All board reso- the stake? tionary bonus equivalent to 150% of their ers in the fight against the virus and this
lutions are in place. AM: The decision by Nssa was not influ- monthly pension. All this was done to cush- calls for a sense of responsibility on every
MC: Did the government or line minis- enced by this at all. Nssa is not involved in ion the pensioners against the rising cost individual. The simple things that have been
try approve your investment realignment any dispute at ZB. Nssa is only influenced by of living. With the recent implementation shown to be effective against the Covid-19
strategy, given that the state is an interested the desire to safeguard and grow value in its of reforms that saw the contribution rate lie within the individual—issues such as so-
stakeholder in Nssa? investments. increased from 7% to 9% split equally be- cial distancing and hand washing. The most
AM: While internal procedures have been MC: How will your intended exit from tween employer and employee, as well as important right workers have is the respon-
completed, consultations with regards the ZBFH affect management and staff, how the increase in the maximum pensionable sibility to monitor their own health. Once
Public Finance Management Act [22:19] are are their interests being protected? We have salary from ZW$700 to ZW$5 000, we are you suspect that you have symptoms of
in progress and until these are concluded seen loss of jobs, management changes and now able to effectively deal with the core the virus, or you have been in contact with
we cannot divulge much regarding this. so on when transactions of this magnitude issue of benefit payouts. We have already someone with Covid-19, you must self-iso-
MC: There is market speculation that ZB happen. instructed our actuaries to conduct an ac- late. You should be able to protect your co-
and CBZ are going to be merged by the en- AM: Nssa as a provider of social security tuarial valuation to determine the level of workers and others.
Zimbabwe independent July 17 TO 23, 2020 7

LOCAL NEWS

Zipra veterans dare Mohadi


Nkululeko Sibanda

FORMER Zimbabwe People’s Revolution-


ary Army (Zipra) combatants have chal-

to act over seized properties


lenged Vice-President Kembo Mohadi (pic-
tured) to prove his mettle in government by
facilitating the smooth return of their prop-
erties seized by the late former president
Robert Mugabe during the Gukurahundi
genocide era.
Mugabe’s administration seized the mul- acquiring properties that were subsequently
ti-million-dollar properties on the back of seized by the Mugabe administration.
what it claimed was an operation aimed at Some of the grabbed properties are Castle
destroying bases that the Zipra forces used Arms Motel in Bulawayo, Nest Egg Farm also
for “dissident activities”. in the city, Ascot Farm in Solusi, Wood Glen
Sources who attended a highly charged Farm in Nyamandlovu and Hawton Farm in
meeting in Bulawayo last week between Gweru.
Home Affairs minister Kazembe Kazembe Other properties include Nijo Farm and
and members of civil society in the city told Salisbury Motel, the four-storey building
the Zimbabwe Independent the former com- popularly known as Magnet House, which
batants demanded that Mohadi act on the is currently the Central Intelligence Or-
properties. ganisation headquarters in Bulawayo, cur-
“We have been treated as children for rent Zanu PF Bulawayo provincial head-
some time with regard to the issue of the quarters, Davis Hall, and Green Haven, an
properties that we invested our monies in,” outdoor entertainment facility just outside
an ex-Zipra combatant, who attended the Bulawayo.
engagement, said. “We demanded these A total of 4 000 head of cattle which were
properties when Mugabe was still alive and on the affected farms were also grabbed
there was no response from government. during the state-sponsored seizures.
They kept quiet. Now it is (President) Emm-
erson Mnangagwa in charge, they (govern-
ment) are still quiet. We want what belongs
to us given back to us. There is no going
back,” the ex-combatant added.
Another combatant said it was good that
Mnangagwa had delegated Mohadi to han-
dle the matter as he was the only senior
member of the present-day government
who had clear understanding of how and
why the properties were seized.
“It is good that we are speaking to Mohadi
who knows the details of what happened.
He has been a lame duck in government,
but on this one we believe that he will do the
right thing and give us back what is owed to
us,” the ex-combatant said. “We have lost
many of our comrades who invested in this
initiative that we hoped would help us sus-
tain ourselves post the war of Independence.
It is sad to note that most of them died while
leading paupers’ lives and Mohadi should
act to stop this madness from continuing.”
The former Zipra freedom fighters told
Kazembe they would, in the absence of a
satisfactory answer, embark on protests to
air their grievances.
“Kazembe, who came to the meeting
exuberant, was actually shocked by what
the comrades told him. He was advised
that demonstrations would be the order of
the day until the matter gets the attention it
deserves.
“From where he stands, Kazembe is too
small to deal with the matter. He told us
openly that he would advise Mohadi of the
grievances and that we would be told what
next steps would be taken by the govern-
ment in addressing our issues,” another ex-
combatant said.
The Independent was also told the ex-com-
batants had planned to frame their demon-
strations under the theme “Zipra lives mat-
ter: Give us back our properties”.
“We have noted that demonstrations do
count when you want results. We have been
civil about this, hoping that the powers that
be would act. We now realise that we will
need, going forward, to take matters into
our own hands and demonstrate so that the
powers-that-be hear us loud and clear,” the
source added.
“If Mohadi does not do anything, we will
hold demonstrations. Kazembe already
knows about these intentions because we
told him in the closed-door meeting. We
are ready for anything. If it means being ar-
rested, so be it because the time is now that
we get what belongs to us.”
Speaking to journalists after the meet-
ing, Kazembe confirmed the issue had been
raised with him by the ex-combatants, add-
ing he would take up the matter with “the
relevant authorities”.
“With regard to the Zipra properties issue
that you raise, I have made it abundantly
clear, loud and clear, that the issue is going
to be handled at a much higher level than
where I sit and I am not qualified to com-
ment on that issue at the moment. There
is a committee headed by Vice-President
Mohadi that is dealing with that issue,” Ka-
zembe said.
Estimates show that more than 10 000
Zipra combatants contributed ZW$50 each
from part of their demobilisation gratuity
towards the capitalisation of Nitram Invest-
ment Holdings, and the money was spent on
8 Zimbabwe independent july 17 to 23, 2020

EDITORIAL & OPINION

Zimbabwe
Independent
july 17 to 23, 2020

Stop spooking
desired investors

O
NE of the highlights of Finance minister Mthuli Ncu-
be’s presentation of the Mid-Term Budget yesterday

We dare not ignore livelihoods


was the dramatic moment when he announced that
the government, “for the first time”, is now providing
assistance to the urban poor.

F
As if on cue, the opposition benches in the National Assembly
Editor’s
INANCE minister Mthuli ployment, real wages and con-
erupted in unison: “Where? Where?” The legislators were, in effect,
Ncube yesterday present- sumer spending; and a massive fall
telling him they did not believe what he was saying. Most MPs stay
Memo
ed the mid-term budget in gross domestic product.
in their constituencies and so are in tune with the economic hard- and review statement to In the absence of an external
ships on the ground. the National Assembly. economic bailout package, life can
Judging from their reaction, the legislators were puzzled, just like A budget is supposed to be the brezh only get tougher for 99% of our so-
most important policy instru- Malaba ciety. Bankruptcy — at individual,
everyone else, by Ncube’s claim that the government has rolled out
ment of any government, which corporate and national levels — is
social safety nets in urban areas. explains why everyone is always real. The risk of insolvency resem-
The Treasury chief said social protection expenditure from Janu- keen on scrutinising it. bmalaba@zimind.co.zw bles the grim reaper, swinging a
ary to June this year totalled ZW$902,2 million. This amount, he ex- The general verdict on the min- gigantic scythe above our heads.
plained, included expenditure on drought mitigation, cash payouts, ister’s statement is that it was un- Tony Hawkins, a professor of
derwhelming in its failure to offer trust and state capacity. economics at the University of
schools fees assistance under the Basic Education Assistance Mod-
anything meaningful to poverty- There is always a danger that the Zimbabwe, was remarking the
ule, and other measures. stricken Zimbabweans. The el- ministers who lead a pampered other day how everyone seems
Livelihoods are uppermost on everyone’s mind. Food security is ephant in the room is the issue life in the lap of taxpayer-funded to be ignoring the massive storm
still dire. The Finance minister revealed that 908 000 metric tonnes of livelihoods. The government luxury are totally alienated from clouds of insolvency on the hori-
of maize were produced in the 2019-2020 summer cropping sea- cannot — in all seriousness — the everyday hardships of the av- zon. CBZ Bank, for instance, has
brag about a “budget surplus” of erage citizen. The wheeler-dealers revealed that it has a US$451 mil-
son, which fell short of the 2,1 million tonnes needed every year.
ZW$800 million when civil serv- of Harare are still building jaw- lion legacy debt with the Reserve
It means grain imports are necessary. This will put pressure on the ants are expected to survive on dropping mansions, importing Bank of Zimbabwe.
fiscus. slave wages. fancy supercars, sipping on whis- “That exceeds CBZ’s market
A lot of taxpayers’ money has gone into agriculture, therefore the There is a 17-year-old orphan in ky and buying palatial homes in capitalisation and in Zimdollar
maize shortfall vindicates those who have criticised the misman- Nyanga who was bitten by a dog South Africa, Mauritius and Dubai. terms it is almost ZW$28 billion,
and the government failed to pro- Some of this money is clean, but against the central bank’s net asset
agement, incompetence and corruption that have characterised
vide the required four injections most of it flows from the prover- base of less than ZW$13 billion.”
publicly funded agricultural programmes. costing US$140. A social welfare bial “gravy train” — the sum total Hawkins has highlighted the
Although it is the job of the Treasury chief to hype up the coun- officer ended up pleading for fi- of shady public procurement ten- point that there are many compa-
try’s economic prospects, every projection has to be tempered with nancial assistance from a non- ders — as well as from laundering nies with substantial offshore li-
a healthy dose of realism. Ncube spoke enthusiastically about the governmental organisation. and outright smuggling. abilities in US dollars which, when
What kind of country have we A person witnessing the ob- converted into local currency at
proposed Victoria Falls Stock Exchange (VFEX). Tellingly, he was
become? There is no money to buy scene display of ill-gotten riches the official rate — regardless of
silent on the Zimbabwe Stock Exchange which the government a rabies injection for an orphan in in the leafy suburbs of the “Sun- the more realistic parallel rate —
suspended at the end of June. There is clearly a disconnect between Nyanga, but there are millions of shine City” would be forgiven for would overwhelm the firms.
the lofty wishes of public officials and the realities of Zimbabwe’s US dollars to hire a private jet to believing in the fallacy that most At national level, Zimbabwe’s
economic crisis. fly a vice-president to China for Zimbabweans are swimming in US official public and publicly guar-
world-class treatment? Whose dollars. But the reality, of course, anteed debt stood at US$8,1 billion
The government can go ahead and dangle the most shiny incen-
country is this anyway? Where is is that these people who are liv- as at December 31, 2019. When
tives before the eyes of prospective VFEX investors, but here is the the compassion? Four-year-old ing large constitute just 1% of the you factor in the US$3,5 billion
bottom line: as long as the all-important question of trust is not ad- children are now scrounging for a country’s entire population. recently agreed compensation to
dressed, the bourse cannot achieve the intended objectives. Which living by selling sweets and ciga- For the 99%, life is an end- dispossessed farmers, the foreign
foreign investor can trust the Zimbabwean government? rettes at street corners in the town- less struggle. There are very few debt is almost equal to the size of
ships. This is happening in a coun- households whose monthly in- the gross domestic product. I have
The shoddy treatment which the government is subjecting Old
try with world-leading reserves of come exceeds US$30, yet a bottle serious misgivings over the offi-
Mutual Limited to is nothing short of catastrophic. President Em- gold, platinum, diamonds, chrome of cooking oil costs US$3. cial debt figures and you can read
merson Mnangagwa is wasting millions of US dollars in taxpayers’ and lithium. Can you wrap your Zimbabwe is on edge, as it grap- more about my thoughts on this by
funds hiring public relations companies in Washington DC. This is brain around that? ples with the steepest economic running a Google search on my re-
money down the drain, as long as his government continues behav- While I concede that every decline in living memory. The im- cently released 90-page investiga-
country is affected by Covid-19, plosion, accelerated by the Cov- tion into “Southern Africa’s Debt
ing as if the world owes Zimbabwe a living.
there is no denying the words id-19 lockdown, is unprecedented. Conundrum”.
This country is competing with every nation on the planet for a of the political scientist Francis Stagflation is with us. We are In the main, Zimbabwe’s multi-
limited pool of investment. Irrational and arbitrary actions, such as Fukuyama who correctly observes being buffeted by the relentless faceted crisis is self-inflicted. Only
the suspension of the Zimbabwe Stock Exchange, is the worst ad- that the worst affected nations are headwinds of a triple whammy: when we begin talking honestly
vert for investment promotion you can ever imagine. those deficient in the following escalating inflation and a collaps- and openly about these issues will
three qualities: leadership, social ing exchange rate; declining em- we chart a new course.

Politburo meddling disruptive, fuels market discord

Z
ANU PF Politburo bigwigs are on a from an organ of the ruling party, rather This caused confusion in the financial
renewed collision course with the
state over their continued entan-
than from the regulatory authorities.
Reserve Bank of Zimbabwe Governor
Candid sector, as Old Mutual is a blue chip stock.
The Politburo’s combative posturing
glement in government business.
A fresh power struggle is emerg-
John Mangudya had to intervene and hur-
riedly issued a statement the following day,
Comment could push out Old Mutual Zimbabwe. If Old
Mutual Zimbabwe leaves the market, this
ing in Zanu PF, with Politburo officials, who which watered down the Mangwana state- faith zaba could further scare investors. Foreign direct
were retired from government to the party ment, by directing that individual transac- fzaba@zimind.co.zw investment into the country has plummeted
headquarters, flexing their muscle and tions would continue. This meant mobile from US$717 million in 2018 to US$259 mil-
making decisions, which could lead to eco- money services would continue uninter- lion last year.
nomic suicide. rupted for the general public. However, the Politburo was not done. It The meddling of the Politburo comes as
It has since emerged that the initial deci- It seems the interference is being driven issued a statement announcing that a pro- no surprise, given the large number of for-
sion to shut down the Zimbabwe Stock Ex- by loss of confidence in the technocrats ap- posal had been made at a meeting on Fri- mer ministers that sit on the body, perhaps
change and ban mobile payment platforms pointed by President Emmerson Mnangag- day to “eject” Old Mutual from the financial struggling to adapt to life outside of govern-
came from the Politburo, leading to Secre- wa to resolve Zimbabwe’s tragic economic system. ment. Politburo’s posturing undermines
tary for Information, Publicity and Broad- downturn. The Politburo members are pan- “The Politburo welcomed the decision to ministers’ bid to turn around the economy.
casting Services Nick Mangwana issuing a icking as they fear losing power through so- eject Old Mutual from the financial system Zanu PF has squandered the goodwill of
decree to that effect. This was done without cial unrest. Such moves signify desperation, of this country and the closure of EcoCash long-suffering Zimbabweans and this in-
consultation with Finance minister Mthuli where economically illiterate party officials agents who had caused runway inflation terference not only damages the country,
Ncube and the regulatory authorities. make reckless decisions that could cost through illegal parallel exchange rates,” but the party itself. Chinamasa, a former fi-
The statement sent shockwaves across the the country an investment like Old Mutual Zanu PF acting spokesperson Patrick Chi- nance minister, should know that this kind
country and beyond, especially as it came Limited. namasa said on Tuesday. of interference will cost the country.
Zimbabwe independent july 17 to 23, 2020 9

ECONOMY & FINANCE REVIEW

Experimental economics intensify Will delisting Old Mutual


The Brett stabilise exchange rate? central bank is obliged to publicly
explain this arrangement. More
the exchange rate through the Old
Mutual Implied Rate is intellec-
Chulu importantly, we need to know the
exchange rate at which the let-
tual laziness. Any company that
is listed in another country has an LAST week, the ruling Zanu PF recom-
Ceteris
Column ters of credit are priced. It is very
important information. The cen-
implied or inferred exchange rate.
Seed Co and PPC have implied ex-
mended the ejection of Old Mutual
Limited from the Zimbabwe Stock Ex- Paribus
tral bank has been clear in that change rates. If implied exchange change (ZSE), while subsequently
it wants a single-reference ex- rates are the problem, the venom mulling the establishment of a separate Respect Gwenzi
AN economic cyclone is ravag- change rate and that reference rate directed at Old Mutual should “forex-based” bourse, where this and
ing the country — almost entirely is to be the auction rate. have been spewed at the other other counters will be listed.
man-made. The central bank needs to un- dually-listed companies in equal This recommendation comes when government has halted the entire
A trusted economic adviser equivocally assure us that the fuel measure. trading activity on the main board, now in week three. The only other time
to the powers that be admitted dealers are getting forex at the Treasury banned the selling of the stock market was halted was in November 2008 at the peak of hyper-
last week that the Zimbabwean auction rate. The second possibil- fungible shares (Old Mutual, PPC inflation. Old Mutual is among 57 active counters trading on the ZSE, but it is
economy does not follow normal ity could be that the major deal- and Seed Co) in the vain hope that unique in that its listing on the Zimbabwe Stock Exchange is secondary as it is
economic laws. Such admissions ers are getting forex allocations it would tame implied rates due to listed primarily on the Johannesburg Stock Exchange in South Africa.
embolden political elites to proffer at preferential rates, well below demand depression and thereby For starters, one thing that escapes most commentators on the dynamics
any solution they deem fit if trust- the lowest bid rates at the auction stabilise the exchange rate. It did around Old Mutual’s trading on the ZSE is that the Old Mutual which is listed
ed economic fundis admit that market. not happen; the implied rates kept on the ZSE is not Old Mutual Zimbabwe, but its parent Old Mutual Limited
they, too, do not fully understand What is more surprising is that climbing. The non-logic now is to headquartered in South Africa. It also escapes many that Old Mutual, then
the behaviour of our economy. a wide range of bid rates are being delist Old Mutual so that the im- known as Plc, terminated its primary listing on the London Stock Exchange in
So all we are witnessing are eco- made and are accepted — what is plied rate is not calculated in the 2016, delisted in all the markets where it was present and immediately relist-
nomic experiments, hoping some stopping the big fuel dealers from hope that without an implied rate ed primarily on the Johannesburg Stock Exchange and on Zimbabwe Stock
of the experiments will succeed. making low bids unless if they are from Old Mutual the black market Exchange, among other secondary markets, including the London Stock Ex-
We have just invented a new field getting much lower rates outside forex rate will fall. We still have change, as Old Mutual Limited in that respective year. These changes were in
of economics: experimental eco- the auction? two rulers with which to measure line with the group’s thrust to refocus on Africa, which is where its roots are
nomics. Its central thesis is: what If below-market forex alloca- the implied rate: the listed shares and also its largest market.
happens when we burn the house tions for fuel are being made, then of PPC and Seed Co; they will still By listing in several markets, Old Mutual has been able to spread its
if we suspect there is a snake in we are still having a fuel sub- give implied rates. Will the poli- shareholding across different markets. This has also allowed respective capi-
the house? Its corollary is: can we sidy that is not recorded as a fis- tician also take PPC and Seed Co tal markets in which the company has operations to enjoy the benefits of
fix an economy if we unleash a cal expenditure, a point the Bret- to the guillotine? If they do not, diversification and risk spread, given the geographical extent on which the
hurricane to destroy free markets ton Woods institutions raised as a it will turn out Old Mutual is be- underlying asset (operations) is located. By listing in various markets, Old
and competition? prime area for correction. ing systematically persecuted for Mutual has empowered the respective economies where it maintains a list-
Probable below-market fuel deeper reasons. ing, while deepening respective capital markets for the benefits of locals.
Fuel, auction question forex allocations could be creat- Due to its diversification in different markets, at least 15, in Africa and signifi-
The most glaring anomaly in the ing serious arbitrages that will Payments monopoly cant exposure in one of Africa’s biggest economy, South Africa, Old Mutual
recently launched forex auc- sustain the parallel market. We The central bank flexed its muscle is typically a rare gem and blue chip with stable earnings, which provides
tion has been the absence of fuel bring into question the validity of and ordered that all mobile phone investors across the region with stable dividends and capital appreciation.
bids for the first three auctions. the forex auction rate based on a payments will have to be done It is very difficult to find any listed stock across the regional exchanges with
The fourth and latest auction did mathematically arrived-at forex through ZimSwitch by August 15, unique features such as those inherent in the Old Mutual counter. It is time
have winning bids for fuel. The rate (weighted average) instead literally gifting a private entity Zimbabwe realised that the listing of Old Mutual Limited on the ZSE ben-
report of the winning bids for the of an economically-derived mar- business that has been painstak- efits Zimbabweans more than it does the company. The market is starved of
fourth auction lumped electric- ket rate if the questionable math- ingly developed by other players new listings, neither does it really have the capacity to raise hard currency in
ity, gas and fuel in the same cat- ematical price excludes a heavy over years, with EcoCash now be- capital raises. Old Mutual, for the purposes of listing, can simply do without
egory, with a combined amount of weight in the form of the fuel sec- ing the main loser. Zimbabwe.
US$528 200, translating to 3,3% of tor. The auction is not satisfying This has effectively created a Let us take Old Mutual into perspective. The stock, just like any other on
the total winning bids. This means all bids despite the absence of the payments pipeline monopoly. The the ZSE, has been subjected to country-specific risks, as reflected in the
the proportion of fuel bids to the fuel sector. timeline to adjust is extremely currency turmoil. Rationale and risk-averse investors have factored in the
total bids is below 2%. short. Cassava has been spending impact of inflation and exchange rate loss as part of macro-economic fun-
Our annual fuel import bill is Stock exchange wager a fortune to upgrade EcoCash and damentals at the heart of stock valuation. The overall stock market has rallied
about 15% of the total import bill. Three weeks ago, we had antici- its recent investment is literally strongly since the beginning of the year, notching up more than 600% in
If less than 2% of the bids are go- pated that political elites would going to waste. This is a case of do- Zimbabwean dollar terms and above 100% in US dollar terms. Old Mutual, in
ing to fuel, it beggars the question double down on their work of mestic investment being subjected turn, has rallied only 150% over the same period in Zimdollar terms. Going by
as to where the funding for the making economically question- to arbitrary and potentially illegal this statistic, it would follow that demand for stocks on the ZSE has generally
bulk of the forex for fuel imports able decisions. It did happen — treatment over alleged abuses. been higher than Old Mutual share demand in 2020. It is therefore unwise
is coming from. In fact, the weekly the sword of Damocles was un- Why not let legal due process to deduce that Old Mutual’s share rally — seen as a conservative rate when
bids from the auction are less than sheathed by political apparatchiks take its course if a company has compared to the overall market movements — is the driver of exchange rate
the weekly fuel import needs. The and swivelled towards the head of breached the law? The impression depreciation. In the least, trading activity in the counter cannot be dubbed
fuel anomaly forces us to review the biggest financial player in the investors, both domestic and in- speculative as it lagged the overall market in the period from January 2020
what the public domain is on the country, Old Mutual. ternational, pick from such knee- to the end of June. Fundamentally, the rally in stocks is traced to increased
operation of the forex auction and With characteristic braggado- jerk decisions is that the legal sys- liquidity in the market which spurs demand and subsequently prices. In 2020,
on the exchange rate. cio, the politicians threatened tem is not strong enough to protect money supply, as measured through reserve money, has so far grown by
We know fuel importers get the to expunge Old Mutual from the investments. It spooks investors. about 30% while in 2019 reserve money grew by a staggering 350%.
bulk of their pump retail sales in Zimbabwe Stock Exchange. This is The collapse of the exchange Looked at differently, suppose Old Mutual is ejected from the stock mar-
the local currency. It is evident unheard off in free markets where rate and raging inflation is driven ket and the bourse maintains its strong rally, it would follow that the stock
that the major fuel dealers are not party politicians usurp the role of by weak fundamentals and the al- market would create significant monetary value from stocks appreciation
bidding for forex on the auction exchange regulators and threaten most complete breakdown of trust sufficing to push the rate as selloffs are consolidated to hard currency. Prac-
market. It is surprising since the to delist a company on a stock ex- in the monetary system. Trust is tically, the value of stock market companies on the ZSE has soared from
guidelines published by the cen- change. It is within the purview not rebuilt by further betraying ZW$29,8 billion in January to ZW$228,7 billion as at end of June 2020. This
tral bank at the inauguration of the of the stock exchange regulator to trust. You do not use a whirlwind means almost ZW$200 billion in monetary value was created via the stock
auction market spelt out that fuel professionally investigate any ger- to clean up — a whirlwind is in- market in the six-month period to June. Now assume this additional growth in
was in category one on the import mane allegations of misconduct by discriminately destructive and in value is realised through share disposals, it increases liquidity in the economy
priority list and thus would be ex- a member of the stock exchange its wake is always trail of destruc- and puts pressure on the exchange rate as investors look to solidify their stock
pected to get priority in terms of and pronounce a commensurate tion and brokenness. market realised gains through hard currency. In essence, with or without Old
bids for forex. punishment if the misconduct is Mutual, weak underlying economic fundamentals can potentially continue to
Why are fuel dealers not go- proved. Chulu is a management consultant and spur stock market gains and, in turn, drive exchange rate depreciation.
ing to the auction market? There If Old Mutual is the culprit sin- a classic grounded theory researcher
are two possible reasons. The first gled out, what was the point of who has published research in an aca- Gwenzi is a financial analyst and MD of Equity Axis, a financial media
possibility could be that fuel deal- shutting down the entire stock demic peer-reviewed international firm offering business intelligence, economic and equity research. — re-
ers are using letters of credit to exchange? The unscientific argu- journal. — brettchuluconsultant@ spect@equityaxis.net
import fuel. If this is the case, the ment that Old Mutual is fuelling gmail.com.

ZIMBABWE INDEPENDENT Phone: (024) 277 3934-8, (024) 279 8894-6, (024) 277 1635. Fax: (024) 277 3854
After hours Editorial: 0772 929 196
Voluntary Media
Council
Zimbabwe Independent is published weekly by Editorial Staff: Sales, Marketing & Advertising staff: Subscriptions & Distribution:
of Zimbabwe
Zimind Publishers (Pvt) Ltd.
Zimbabwe Independent newspaper
AMH subscribes to truthful, Cnr. Bessemer/Strand Multiprint Roads
Graniteside, Harare
Editor: — Faith Zaba — fzaba@zimind.co.zw Commercial Executive: Punish Murumbi
pmurumbi@alphamedia.co.zw
Munn Marketing (1992) (Pvt) Ltd
PO Box 10460, Harare. subscribes to a Code of Conduct that
accurate and fair reporting. Tel: (024) 277 1722/3, (024) 274 8395/6/7,
Fax: (024) 277 0435
Deputy Editor: Brezhnev Malaba — bmalaba@
zimind.co.zw Business Development Manager: Wilson Masawa
Cnr. Bessemer/Strand Multiprint Roads
Graniteside, Harare
promotes truthful, accurate, fair and
balanced news reporting. If we do not
Do we measure up? PO Box BE 1165, Belvedere, Harare
Website : http://www.theindependent.co.zw
Assistant Editor: Owen Gagare — ogagare@
zimind.co.zw
wmasawa@alphamedia.co.zw
Tel: (024) 277 3930-8 meet these standards, register your
If you don’t think so, Chairman: Chief Reporter: Andrew Kunambura
Marketing Officer: Olayayi Jack
ojack@zimind.co.zw Call: complaints with the Voluntary Media
please report all unethical Trevor Ncube
— tncube@alphamedia.co.zw
Political Reporters: Tinashe Kairiza, Nyasha
Chingono, Bridget Mananavire Bulawayo Office:
Violet 0773 207 437 Council of Zimbabwe at No 34
Colenbrander Rd, Milton Park, Harare.
conduct to: Directors: Business Reporters: Kudzai Kuwaza, Melody
Zimind P/L Byo, Amtec Building, Cnr 12th
Avenue/ Robert Mugabe Way, Bulawayo.
E-mail: subscriptions@alphamedia.co.zw
Telephone us at 024-277 8096 or
Trevor Ncube (Chairman), Sternford Moyo, Chikono Tel: (029) 288 3184-8, (029) 288 7057-9/
Phineas Whata, Rashid Malik, Mahomed (029) 288 7069/70/71 Fax 276 837 Printers: 024-277 8006
Nanabhay Chief Sub-Editor: Zivisai Chagaka Strand Multiprint 24 Hr Complaints line: 0772 125 659
Sub-Editors: Leah Masuku, Gumisai Nyoni After hours editorial: 0777 135 163 Cnr. Bessemer/Strand Multiprint Roads
Chief Executive Officer: PO Box AC 558, Ascot, Bulawayo. Graniteside, Harare
E-mail: director@vmcz.co.zw or info@
Email: ombudsman@alphamedia.co.zw Kenias Mafukidze — kmafukidze@alphamedia. E-mail addresses vmcz.co.zw WhatsApp: 0772 125 658
or write to: co.zw
Chief Operating Officer:
News Desk — newsdesk@zimind.co.zw
businessdigest — business@zimind.co.zw
Tel: (024) 277 1722/3, (024) 274 8395/6/7,
Fax: 277 0435
Twitter: @vmcz
Alpha Media Holdings Kangai Maukazuva — kmaukazuva@alphamedia. Website: http://www.vmcz.co.zw
Cnr Strand/Bessemer Roads, Graniteside, Harare co.zw Facebook page: vmcz Zimbabwe
10 Zimbabwe independent July 17 to 23, 2020

INTERACTIVE FEEDBACK
BELOW is an abridged June in Sub-
Saharan Africa: A free expression
roundup produced by Ifex’s regional
Legal victories for freedom of speech
editor Reyhana Masters, based on Ifex
member reports and news from the
region.
a bright spot in a month of deaths
with sedition for criticising King Mswati III.
Fears confirmed in Cameroon The case of missing Mozambican jour-
June started off with the announcement, nalist Ibraimo Mbaruco has been referred
by the Cameroonian army, on June 5, of to the United Nations Working Group on
journalist Samuel Wazizi’s passing. This ad- Enforced or Involuntary Disappearances.
mission was made 10 months and 15 days Media freedom and human rights organisa-
after his death in detention, by way of a tions have requested an independent and
statement issued by the Cameroonian Min- impartial investigation into his disappear-
istry of Defence. ance in north-eastern Mozambique, three
Military spokesperson Colonel Serge months ago.
Cyrille Atongfack claimed Wazizi died of se- The Namibian government is contemplat-
vere sepsis on August 17, 2019 at the military ing the activation of sections of the 2009
hospital in Yaoundé, Cameroon’s capital. His Communications Act that make registering
assertion that the family had been informed SIM cards mandatory for all mobile users.
of his death is being refuted by them. No au- These parts of the act have been dormant
topsy was performed at the time of writing, for more than a decade because of their
and the Cameroon Journalists Trade Union, infringement on the right to privacy. The
(SNJC) was still trying to retrieve his body obligatory SIM card registration is being
from state authorities. Voice of America has justified by authorities as a measure aimed
reported that Atongfack says the body will at protecting the public from cybercrime.
not be handed over to a family member be- Critics feel it would open the door for the
cause it has been sealed. Zimbabwean newspapers government to spy on the public, especially
While the revelation ended months of in the absence of a privacy protection law.
speculation, it has also raised many ques- As authorities shut down the internet the Action by Christians for the Abolition of The disinformationtracker.org, an inter-
tions and concerns about the continuing and journalists were impeded from cover- Torture, the Association of Victims of Torture active map providing data on disinformation
decline of rights and freedoms in Cameroon, ing Hundeessaa’s funeral, the ever present, in Togo; the Consumers’ League of Togo; and laws and policies and how they are being
at many levels. During the UN Security smouldering ethnic divisions morphed into the Togolese Association for Human Rights enforced across sub Saharan Africa, was
Council meeting on June 12, Dominican nationwide protests. Education. They were represented by Media jointly launched by a coalition of civil soci-
Republic representative Ambassador José Hundeessaa’s popularity stemmed from Defence and Amnesty International. ety groups: Article 19, the Centre for Human
Singe expressed hope that those responsi- his ability to give voice to the frustration In their challenge, the plaintiffs “set out Rights of the University of Pretoria, the Col-
ble for the death of Wazizi would be brought of the Oromo people — the largest ethnic in detail the severe and multi-varied im- laboration on International ICT Policy for
to justice, saying “(i)t is highly important group in the country. He was described as pact the shutdown had on them, including East and Southern Africa (Cipesa), Global
that the Cameroonian authorities can en- a genius when “it comes to connecting with how they were unable to report on protests Partners Digital (GPD) and Protege QV.
sure that national and international human the Oromo, especially the youth, with his in order to let people know what was hap- Ghanaian MP Kennedy Agyapong has been
rights organisations and the media can work lyrics”, when he was honoured with the pening.” ordered to pay approximately US$18 000 in
in the country unhindered.” A few days lat- Oromo Person of the Year award in 2017. The two separate shutdowns took place damages and retract defamatory statements
er, Unesco director general, Audrey Azoulay It is difficult to determine why Hundees- during protests in September 2017, when the he made against journalist, editor and pub-
followed suit, expressing her concern and saa was murdered or who was involved, but Togolese people demanded that President lisher Abdul Malik Kweku Baako. The Media
asking authorities to investigate Wazizi’s as Amnesty International observes: “there Faure Gnassingbé honour the country’s 1992 Foundation for West Africa welcomed the
detention and death. has been an increase in killings of people constitution and step down immediately. court’s decision “as a victory for the fight
Wazizi was arrested during the height of critical of the government and political per- The state’s response was the disruption of against impunity for crimes against journal-
hostilities between armed separatists and sonalities in the country since 2019.” the peaceful protests with teargas and vio- ists”.
government forces in Cameroon. Like many Although he sang mostly about culture, lent assaults on the demonstrators. In early June, popular, veteran journal-
other journalists and critics, he was accused identity, love, unity and human rights, “his ist Samira Sabou was arrested in Niger and
of collaborating with the separatists, but this songs also addressed issues of marginalisa- Controlling the message detained over a Facebook post. She was
accusation has never been substantiated. He tion felt by his Oromo ethnic group,” writes Covid-19 safety measures and regulations charged with defamation over an article on
was picked up by police in Buea, the capi- his friend, BBC camera operator Amensisa are being used by a few African govern- news website Mides-Niger allegedly linking
tal of the southwest region of Cameroon, Ifa. Prime Minister Abiy Ahmed, who is also ments to exert control over which journalists the president’s son and adviser, Sani Issou-
on August 2, 2019, and handed over to the Oromo, is accused of falling short in living and media outlets cover state media events fou Mahamadou, to the overpricing of goods
military five days later on August 7. It was up to his promises, and his ethnic tribe feel such as press conferences and public hear- procured by the Defence ministry.
the last time he was seen by family, friends he has betrayed them. ings. In various instances, media personnel l This brief was originally pub-
or colleagues. Awarded the Nobel Peace Prize in 2019 for from independent or privately owned media lished on Ifex.org: https://ifex.org/
Local and international press freedom the peace agreement with neighbouring Er- houses are either barred or ejected. legal-victories-for-freedom-of-expres-
organisations had repeatedly requested in- itrea and for introducing sweeping political On June 3 , Namibian President Hage sion-a-bright-spot-in-a-month-of-
formation on the whereabouts of Wazizi, and media reforms during his two-year ten- Geingob’s office issued an apology after deaths-and-violence-against-women
who was the popular news anchor of the ure as head of state, Prime Minister Ahmed state security details prevented journalists
independent Pidgin-language station Chillen continues to face the daunting task of unify- Charmaine Ngatjiheue of The Namibian and
Muzik and Television (CMTV). That information ing a deeply divided nation. Jemima Beukes from The Namibian Sun from

SEND YOUR COMMENTS


was never forthcoming. His family were not covering the official inauguration of the
allowed to visit him, his lawyer did not gain Ecowas freedom of expression ruling Covid-19 isolation facility at the Windhoek
access to him and his case was postponed on The Economic Community of West African Central Hospital.
eight different occasions. States (Ecowas) ruling protects right to free- At the same time that the Namibia Media
Having made an official request to fol-
Send your feedback to the Zimbabwe
dom of expression. Trust issued a statement objecting to the
low the case, the American Bar Association Ecowas Court of Justice set a precedent hostile manner in which the women jour-
pointed out: “Since the moment of Mr on the African continent with its ruling, de- nalists were refused entry, the president’s
Abuwe’s (Samuel Wazizi) arrest, the Cam-
eroonian authorities have egregiously failed
claring the Togolese government internet
shutdown “unlawful and contrary to inter-
office had already issued an apology.
In Zimbabwe, press journalists from the
Independent.
to comply with the due process standards
established by the ICCPR and African Char-
national law”.
As reported by Media Defence, the Court
independent press were blocked from cov-
ering President Emmerson Mnangagwa’s
Comments should be short and concise.
ter.” awarded damages of two million CFA
(US$3 400) to the plaintiffs, and ordered
handover of buses at a university.
And on June 10, several members of Ni-
Send letters to: newsdesk@zimind.co.zw
Death of Ethiopian musician
Ethiopian musician’s death exposes deep
Togo to put in place a legal framework
protecting freedom of expression that is
geria’s House of Representatives press corps
were prevented from covering the public
WhatsApp: 0772 929 196
ethnic fissures.
Week-long, deadly protests, triggered by
consistent with international human rights
law standards. The court also ordered Togo
hearing of the Control of Infectious Diseases
Bill, and were told that only journalists from
You can also comment on our website:
the killing of popular musician and activist
Haacaaluu Hundeessaa on June 29, brought
not to shut down the Internet again.
The petition was brought to the Ecowas
the Nigerian Television Authority (NTA) and Chan-
nels Television would be allowed entry.
http://www.theindependent.co.zw and our
the deep seated ethnic tensions front and
centre in Africa’s second-most populous
Court of Justice on December 17, 2018 by To-
golese blogger Houefa Akpedja Kouassi and In brief Facebook and Twitter pages Zimbabwe
nation’s political landscape. Ethiopian pro-
testors clashed with police in their demand
seven local civil society organisations: Am-
nesty International Togo; the Media Institute
Swaziland democracy activist Ncamiso
Ngcamphalala has said he was tortured by Independent.
for justice. for Democracy and Human Rights; Lantern, police after he was arrested and charged
ZIMBABWE INDEPENDENT JULY 17 TO 23, 2020 11

COLUMN

T
HE post of deputy minis-
ter has always been widely
seen as a job for the boys
and a drain on the parlous na-
Matemadanda is mirror of corruption stance and his sound
re-engagement drive”.
This drivel will be news to the
majority of dejected Zimbabwe-
tional purse.
Deputies can neither act on
behalf of the minister in their
respective portfolios nor attend
absurdity, govt ineptitude ans whose poverty levels have
worsened since Mnangagwa
rode to power on the back of
army tanks.
cabinet meetings, as they are re- Skyrocketing prices, low ca-
stricted to reading speeches on opposition victory? pacity utilisation, dwindling in-
behalf of the ministers, among Muckraker wonders: Where vestment inflows, suspension of
other menial tasks. does Mnangagwa recruit such the stock market, and runaway
In the court of public opin- dismal talent? Deputy ministers inflation of 800% hardly consti-
ion, deputy ministers are of no are enjoying a free meal ticket on tute a “clear economic vision”
use and the position only serves the gravy train. They must stop as espoused by the ambassa-
as a feeding trough for loyal- freeloading. Fire the lot and let dor who is clearly seeing things
ists of President Emmerson them get proper jobs like every- through rose-tinted glasses.
Mnangagwa. one else. Even the beleaguered Mnan-
gagwa admitted last month that
Deranged deputies Contradictory Zimbabweans deserve better

D M
EFENCE deputy minister NANGAGWA has been than the economic ruins the
Victor Matemadanda’s re- going on, ad nauseam, country has been reduced to.
cent utterances have done about how he is the doy- The failure to address the nu-
nothing to change that belief.
Matemadanda claimed that the
en of free speech and democracy
since being catapulted to power MUCKRAKER merous cases of malfeasance
pointed out by Auditor-General
July 31 anti-corruption protest on the back of guns and tanks. Mildred Chiri in her annual re-
led by politician Jacob Ngari- Even the Information perma- Twitter: @MuckrakerZim ports, as well as the Covid-19
vhume is being sponsored by the nent secretary Ndavaningi Man- public procurement scandal,
United States, bizarrely adding
that the protestors will use coro-
gwana has been at pains to tout
his boss’s threadbare democratic “Matemadanda’s paint a starkly different pic-
ture to the ambassador’s cheap
navirus canisters.
Matemadanda’s daft com-
credentials.
However, Zimbabwe Republic
daft comments are propaganda about Mnangagwa’s
“tough anti-corruption” stance.
ments are emblematic of the
country’s poverty of leadership,
Police officer Milton Murairwa
might not agree. The 31-year-
emblematic of the Eyebrows will also be raised
over the ambassador’s claim that
characterised by paranoia and old Murairwa, stationed at Ha- country’s poverty Mnangagwa has an impressive
cluelessness. rare Central Police Station in international re-engagement
The Zanu PF national commis- the administration department, of leadership, programme.
sar — who distinguished himself
by driving taxis during the liber-
appeared in court facing accu-
sations of undermining the au- characterised by The civilised world has re-
peatedly criticised Mnangagwa’s
ation war — provides a constant
reminder that deputy ministers
thority of the President through
a WhatsApp message he allegedly
paranoia and government for beating up, ab-
ducting and jailing opposition
are totally unnecessary.
Matemadanda, sadly, is not
posted in a group comprising his
workmates.
cluelessness. and civil society activists includ-
ing comedians.
the only deputy minister, whose Allegations against him are The Zanu PF Defence deputy minister Victor The European Union has urged
crass stupidity has confounded that on July 7, at about 6pm, he Matemadanda’ Mnangagwa to implement the
the nation. Former deputy In- posted a message for a WhatsApp national recommendations of the com-
formation minister Energy Mu-
todi made a number of reckless,
group of police officers stationed
at ZRP Mbare and is named commissar — who speech!
Murairwa joins more than 20
mission, which was tasked with
investigating the brutal killing
offensive and utterly brainless
comments.
Mbare Family.
According to the state, Murai-
distinguished other individuals who have been
collared for criticising Mnangag-
of six citizens during protests to
demand the announcement of
They range from suggesting
that people of Ndebele origin are
rwa posted that: “ED neteam yake
must go, ndini Murairwa ndadaro,
himself by driving wa for being a failure, laying bare
the septuagenarian’s aversion to
the general elections in 2018 on
August 1 that year.
not Zimbabweans to calling MDC udzai vanhu vePI kana asingade kue- taxis during the free speech and democracy. Mnangagwa is yet to imple-
activist Sekai Marashe a prosti- nda ndoda kumuona (ED and his ment the recommendations by
tute after she was abducted and government must resign, tell liberation war Daydreaming the commission, which was led
— provides a
M
brutally assaulted by suspected that to the PI. If he does not want UCKRAKER spluttered by former South Africa president
State security agents and Zanu to go, I will see him in person).” in his tea when he read Kgalema Motlanthe that soldiers
PF militia in Kwekwe.
The failed rhumba musician bit
For these utterances, he is al-
leged to have publicly and un-
constant reminder the remarks of Tanza-
nian Ambassador to Zimbabwe
responsible for the killings are
bought to book.
more than he could chew after
engaging in a spat with Foreign
lawfully intended to engender
feelings of hostility among the
that deputy Professor Emmanuel Mbennah
in the state-run The Herald.
It is understandable that
Mbennah is guided by the need
Affairs minister Sibusiso Moyo. 46 members, who are also po- ministers are Under a laughable headline to promote ties between his
Moyo distanced the government lice officers, on the Mbare Fam- Economy on Track: Envoy, Mbennah country and Zimbabwe, but that
from Mutodi’s unfavourable ily WhatsApp group against the totally claimed that Mnangagwa “will is no excuse for spewing deluded
comparison between Mnan-
gagwa and Tanzanian President
President in person or in respect
of his office. unnecessary.” deliver Zimbabwe to the prom-
ised land because of his clear
claptrap that has no semblance
whatsoever to the reality on the
John Magufuli in the way they So much for championing free economic vision, his tough anti- ground.
had tackled the containment of
the coronavirus scourge.
Mutodi responded by remind- SHORT AND SWEET ...
ing Moyo that he was not the

Detrimental notes to sink a captainless titanic


prime minister.
This proved too much, even for
Mnangagwa, who is no stranger
to making absurd remarks, re-

A
sulting in Mutodi being booted NY doubt that Zanu PF is a party that in United States dollars. The party’s acting very investors Chinamasa barks about.
out of government. belongs to the Stone Age was dispelled spokesperson and former minister of finance To have such recommendations from the
Who can forget former dep- this week by the doddering old men Patrick Chinamasa said the party was of the likes of Chinamasa, who are used to com-
uty finance minister Terrence who are way past their prime at Zanu PF view that setting up a forex-denominated missioning dustbins and are desperate for
Mukupe, who was accused of headquarters. stock exchange would be an appropriate relevance after being shunted from first-
manhandling a senior govern- The party demanded the de-listing of fi- institution for raising and attracting foreign class seats to the economy-class benches on
ment official over travel allow- nancial services group Old Mutual from the direct investment into Zimbabwe. This is at a the gravy train, illustrates why the country
ances and before the 2018 har- Zimbabwe Stock Exchange and proposed time government has indefinitely suspended has become an economic backwater and an
monised elections declared that that a new bourse be opened to trade only trading on the local bourse, scaring away the embarrassment to the Sadc region.
the military would not accept an

www.thezimbabweindependent.co.zw
12 Zimbabwe independent july 17 to 23, 2020

CUTTING-EDGE INTERVIEW

IN the past year, there have been a


number of significant movements in
the financial sector. At First Capital ‘Combining traditional, modern
banking systems best way to go’
Bank (FCB), Sam Matsekete was
replaced by Ciaran McSharry (CM) as
managing director. Business reporter
Melody Chikono (MC) this week had
a chat with McSharry, who is coming
nisant of the fact that banking is more than
into the bank at a time it is finalising just about finances, but also about build-
a rebranding exercise. Below are ing meaningful business partnerships to
excerpts of the interview: achieve shared financial growth and suc-
cess, which is the basis of a sustainable
MC: Congratulations on your appoint- business model.
ment. You are bringing more than 22 years MC: What are the key result areas we
of global banking experience to this posi- should look forward to in terms of your
tion at First Capital Bank. What areas of ex- performance?
pertise are you bringing to the bank and to CM: We are looking forward to the fol-
the banking sector? lowing key result areas:
CM: Banking and finance have been my l  Overall bank profitability within the core
calling since the beginning of my career, business;
and an area I have been interested in since l  Growth of quality deposit lines and de-
my student days. My career started in the ployment of the same to the productive
oil industry, where I spent a number of sectors and liquidity instruments through
years, but banking was the industry I was our lending framework; and
interested in, because of the impact it has l  Capital generation to raise our US$30
on all our lives, including the sustainable million statutory reserve milestone and
economic development it brings globally. funding of key investments.
While my career has been limited to MC: We understand that the final re-
overseas locations, I had the opportunity to branding phase for First Capital Bank will
work in many global roles, and also latterly be in October 2020. How will this be rolled
on African projects under Barclays Plc, giv- out?
ing me a great appreciation of the continent CM: Our rebranding commenced in Oc-
overall. Banking is now global and Zim- tober 2018 upon conclusion of the Barclays
babwe operates within the global banking Plc divesture exercise that saw it reducing
standards, making it easy to fit in and feel at its major shareholding significantly in the
home. My intention is to apply the wealth African market to align to its new strategic
of knowledge amassed over time in money direction. We embarked on a new journey
markets, finance and investments in our of co-branding with Barclays Plc, which
current environment and bring sustainable will end after its two-year tenure in Octo-
growth. ber 2020 when we will become First Capi-
MC: Having been at the bank since 2018, tal Bank Limited. The reality is most of our
you have witnessed a number of events customers now think of and know us as
both in the economy and the bank itself. First Capital Bank.
What can you say are the key strategic in- This will present opportunities for our
novations that you will seek to employ to customers on the African continent where
ensure the stability of the bank against the
current economic turbulence?
Fact file: Ciaran McSharry our expertise lies. As a regional bank with a
banking heritage of over 25 years in the re-
CM: As an organisation, we have been gion, our support system allows us to draw
through a huge period of change during this l  More than 22 years of global banking l  Appointed acting MD in 2019 and sup- from our group capabilities, group knowl-
time. This included the acquisition by First experience; ported the Zimbabwe business through the edge and experience on an ongoing basis.
Capital Bank in 2017, followed by our re- l  Joined First Capital Bank Zimbabwe in execution of its growth strategy; On the service front, our customers
branding in October 2018. During this pe- May 2018 from Barclays Plc as chief finance l  Member of the Chartered Association of should expect more digital products that
riod, we were also working on our system officer; Certified Accountants; and will support banking-on-the-go. We look
migration, which we successfully complet- l  Later moved to support the group as FMB l  Holds Bachelor of Business Studies degree forward to the future with a great sense of
ed, which has allowed our core-banking Capital Holdings group chief finance officer; from Dublin City University. confidence and assure our stakeholders of
infrastructure to offer an enhanced service service excellence, as we build our heritage
offering. in Zimbabwe.
The external environment has been ex- These are around our speed of execution, MC: We have seen new appointments in MC: What is your view of the financial
tremely fluid, undergoing various policy treating customers with honesty and in- some institutions resulting in restructuring sector landscape in general?
changes that called for extremely agile tegrity and from here, ensuring excellent in terms of new placements and job losses. CM: The financial sector landscape has
and efficient reaction in order to maintain customer service. If we can get these three Should we expect that at First Capital Bank? evolved very fast somewhat in line with
operations. In addition, we recently have elements correct, it is a firm foundation on CM: As an organisation, our aim is to re- global trends, but also with the innovation
experienced the Covid-19 pandemic glob- which to build. main relevant and efficient in our service required to operate with all the challenges
ally again, calling for an evolution in the MC: Having been the chief finance officer offering, with colleagues and customers at in the Zimbabwe market. We have seen
way we do business. This demanded a fast for the bank, you have also been affected the core of all our strategies. The first half significant changes in transacting behav-
change to enable remote working, a change in relation to currency policy changes and of this year saw us experience the unprec- iour in our consumer landscape influenc-
in processes and will likely have a lasting having to adapt to certain standards which edented Covid-19 pandemic, which dis- ing the products offered.
legacy on how we as banks operate. include the accounting system in hyperin- rupted the business environment as we The economy has rapidly become cash-
Some of the key innovations for our bank flationary times. How do you intend to use knew it. lite and is now hugely dependent on mobile
would be to: this experience to steer the bank forward? This has shown that these are, indeed, money platforms, cards and increasingly
l  Increase our stakeholder digital adoption CM: As a nation, we encountered unique extraordinary and uncertain times for on the digital platforms. In the midst of all
through increased remote access facilities, hyperinflationary times that required tai- businesses, but we all need to rise to the this disruption in the sector, we also see
in line with global trends. Banking should lor-made solutions. Countrywide, there occasion, understand that change is the non-traditional players offering financial
be at the palm of everyone’s hand and we was an adoption of International Account- only constant and play our role as part of products.
want to be a leader in that journey; ing Standard 29 (hyperinflation account- the essential services framework. We have However, the market still sees the sep-
l  With the increase in online, digital and ing). Here banks had to distinguish between had to redefine our operations in the new- arate value proposition that banks offer,
ecommerce platforms, cyber security on controllable and uncontrollable elements normal and we continue to evolve with re- meaning there are still opportunities avail-
all platforms is paramount to safeguard and align suitable interventions for each cent developments. able that will impact our economic growth.
customers’ money; and to maintain shareholder value. A balance As a bank we will continue to respond We believe that our sector has the capabili-
l  Through the above, we need to also look between revenue and cost efficiencies was to trends in the local or global landscape in ties it takes to lead on a number of frontiers
to unlock new product capabilities to ad- more crucial than ever. Issues faced were order to optimise our cost base and remain and look forward to a better future.
dress market gaps. problems in property valuations, rising solid and efficient. MC: What are the areas that you feel need
MC: Given your global experience, what costs, profitability management, budget- MC: Let us talk about the bank per- to be focussed on, going forward, in the
new transformations should we expect ing and planning, among others. Remedies formance. There has been a new trend, banking sector?
from you that will bring world-class qual- to these in the interim were re-allocation whereby banks are now shifting towards CM: Going forward, I suggest the sector
ity to First Capital Bank? of resources to invest in assets that main- non-funded income, diverting from their focusses on:
CM: We are a regional bank that operates tain value, subject to regulatory limits, in- core business. What is your comment on l  Raising adequate capital to underwrite
in five markets within the continent. This vestment in key sectors yielding value in this? the crucial market demands, taking into
means we have an opportunity to leverage deposits and forex, revaluations using pre- CM: Interest income is what is generally account the operating conditions, includ-
on the networks, strengths and capabilities vailing exchange rate and so on. referred to as core business in banking. ing exchange rate valuations, inflation, fo-
of each market. We believe in collaborative Nonetheless, I am grateful for the expo- Looking at worldwide trends, we will find rex shortages etc.
efforts that will revolutionise our customer sure that I have attained in the time I have that a bank is unable to sustain its cost base l  Structured approach to servicing key
proposition. been in Zimbabwe. It is now more essen- relying on interest income only. Non-fund- sectors that bring economic growth and
Our focus is on customising our products tial than ever for us to be able to adapt to ed income (NFI) coming from transactional generate foreign currency.
for the unique African market in a fast and the prevailing environmental conditions, fees is also an essential part of the business l  Digitisation through creation of relevant
innovative way. I intend to lead our digital meaning it is imperative to have a live busi- equation. The reality is that for any bank digital channels to align with the prevailing
transformation exercise to match global ness continuity management plan with in the current market, you need to man- consumer behavioural trends where bank-
markets, as digital is unquestionably the varied scenario settings to prevent any op- age across your profit and loss, covering a ing should happen at the click of a but-
way forward. This will take many forms, erational disruptions. balance between NFI and interest income, ton. A balance between traditional brick-
some of which would be new products, Open conversations with stakehold- together with an increasing need for cost and-mortar versus online will have to be
deeper customer engagement and strate- ers, offering relevant cost-effective prod- efficiency. The reality is also that you need reached to cater for all customers.
gic alliances with key industries to create ucts and speedy execution will allow us as a diversified income base, with the combi- l  Working to align our balance sheet and
value propositions. First Capital Bank to achieve our purpose, nation of the two helping to achieve opti- profit and loss to cater for the macro-eco-
But there are three key areas, where which is to “enable people to achieve their mal shareholder value. nomic volatility, and also for the new norm
we can ensure we are customer focussed. extraordinary”. In addition, we need to also be cog- that will ensue from this current period.
ZIMBABWE INDEPENDENT JULY 17 TO 23, 2020 13

ANALYSIS

Fresh farm grabs: ‘Zim


KUDZAI KUWAZA

THE fresh wave of farm grabs by the gov-


ernment under the guise of downsizing
land, which has sparked fears of a renewed

digging its own grave’


assault on white farmers, is further denting
Zimbabwe’s image as an investment desti-
nation, worsening the country’s risk profile.
The latest wave of farm take-overs is in
stark contrast to the undertaking by Presi-
dent Emmerson Mnangagwa when he took
office. He said the objective of his adminis-
tration would be to respect property rights, charmed by Mnangagwa’s rhetoric, has be- fly away from an environment of discord
a critical benchmark for the government’s come disenchanted by the fact that his words and where there is a trust and confidence
re-engagement with Western capitals. It have not been matched by action. Nothing deficit,” Kanyenze said. “The renewed farm
also runs parallel to the government’s ob- illustrates this more than the threadbare in- take-overs do not at all enhance trust in the
jective to compensate white farmers affect- flows of foreign direct investment since he government. Trust must be gained internal-
ed in the chaotic and often violent fast-track took to the helm, chanting his mantra that ly before looking externally. Land is a na-
land redistribution programme in 2000. “Zimbabwe is open for business”. tional issue and it does not belong to a cer-
Instead, the latest farm grabs will result in According to figures availed by the Re- tain group or particular political party. The
the country losing revenue through a mas- serve Bank of Zimbabwe, foreign direct processes are as important as the outcome.”
sive drop in exports and production. The investment has fallen sharply from US$717 Kanyenze said when it comes to deal-
current farm takeovers evoke a sense of déjà million in 2018 to just US$259 million last ing with the land issue, there is a need for
vu. The land reform programme decimated year, a drop of more than 50%. broad-based stakeholder consultation.
production, crippled the country’s economy The latest take-over of land will only re- “We have got to understand that the rest
and transformed it from the bread basket of sult in the country being further isolated as of the world can go ahead without Zimba-
southern Africa to a basket case dependent investors give the country a wide berth, ac- bwe, but the country cannot go ahead with-
on imports and donations. It also resulted in cording to economist Godfrey Kanyenze. out the rest of the world,” Kanyenze pointed
sanctions being slapped on the country by “Investors are like crows which quickly Agriculture minister Perrance Shiri out.
the international community and suspen-
sion from the Commonwealth.

RESULTS OF THE 62nd


Marondera farmer David Tippett has
taken the government to court to fight a
90-day ultimatum to leave his 337-hectare
Remaining Extent of Magar Farm. This, he
pointed out, will result in the termination
of international commercial transactions,
which generate, loss of much-needed for-
ANNUAL GENERAL MEETING
Nutritious Foods and Beverages for the Sustenance of Good Health
eign currency and the destruction of nearly
200 jobs.
In his urgent application, which was
heard last week in the High Court by Jus-
tice Owen Tagu and argued by his lawyer
Andrea Dracos of Honey and Blancken- The Directors of TSL Limited wish to advise the Company’s shareholders and investing public that the results
berg, Tippett said the decision by Agricul- of the 62nd Annual General Meeting held on 15 July 2020 were as follows:
ture minister Perrance Shiri to withdraw
the offer letters they had received to make
way for Munyaradzi and Tendai Hunzvi for Resolution Resolution Status
the farm is ultra vires Section 23 as read with
Section 17 of the Land Commission Act. Mu- Number
nyaradzi and Tendai are the children of the 1. Resolution to approve the holding of Annual General Meetings or any other meetings of Passed
late Chenjerai Hunzvi, a war veterans; lead- shareholders by virtual or electronic means and/or by way of remote voting.
er who was in the forefront of the fast-track 2. Resolution to amend the Memorandum and Articles of Association of the Company in Passed
land reform programme. compliance with the requirements of the Companies and Other Business Entity Act
“The decision of the first respondent (Shi-
[Chapter 24:31] and the new Securities and Exchange (Zimbabwe Stock Exchange Listings
ri) to withdraw the offer letters is grossly
irrational in that it ignores material recom- Requirements) Rules, 2019 (Statutory Instrument 134 of 2019).
mendations that were made by the Land 3. Resolution to receive, consider and adopt the Audited Financial Statements and Passed
Commission to the effect that the first and Reports of the Directors and Auditors for the financial year ended 31 October 2019.
second applicants’ (Tippett and his brother 4. Resolution to sanction the dividend paid. Passed
Stuart) offer letters must not be withdrawn
and second and third respondents (Mun-
yaradzi and Tendai) given land elsewhere,” 5. Resolution to re-elect Mr Morgan Nzwere to the Board. Passed
Tippett said in the urgent application. 6. Resolution to re-elect Mr Bekithemba Ndebele to the Board. Passed
Justice Tagu reserved judgment. 7. Resolution to re-elect Mr Edson Muvingi to the Board. Passed
Tippett is not the only white farmer who
has fallen victim to the renewed takeover
of farms. Flower exporter Phil Frost of Lot 8. Resolution to approve the remuneration of the Directors for the year ended 31 October Passed
1 of subdivision 7 of Winimbi Estates, Da- 2019 and to fix the budget for fees payable to the Directors for the year ending 31
vis Palmer, who owns Journey’s End Farm October 2020.
in Macheke, Peter Drummond of Hunyani
Farm and Robert Davenport of Stapleford 9. Resolution to approve the remuneration of the auditors for the previous year and to re- Passed
Farm also face eviction from their proper-
appoint Messrs Ernst & Young Chartered Accountants (Zimbabwe) as auditors for the
ties. What has raised eyebrows is that the
intended beneficiaries are politically con- current year.
nected, including deputy chief secretary to
the President, Martin Rushwaya. 10. Resolution to purchase the Company’s own shares. Passed
The other group of individuals whose
farms are targeted are those who fell out
with President Mnangagwa prior to his rise
to power on the back of a 2017 coup. These
include Jonathan Moyo, Saviour Kasuku-
By Order of the Board
were and Robert Zhuwao.
The fresh wave of farm takeovers under
the guise of right sizing farm space is noth-
ing short of disastrous, according to political James Muchando
analyst Eldred Masunungure. Group Company Secretary
“There is absolutely no doubt that there
will be consequences which will not only be 16 July 2020
negative, but also devastating,” Masunun-
gure said. “This demonstrates, more than
anything else, that Mnangagwa indicates left
and turns right. These are foreign affairs and
trade-related issues and the minister who
heads these portfolios (Sibusiso Moyo) will
have a lot of explaining to do. The foreign
affairs policy has been predicated on re-
engagement. I do not think the farm take-
overs fortify the policy thrust that we are
reformed. We will be looked at with a jaun-
diced eye by the international community.”
Directors: A.S Mandiwanza (Chairman), D. Odoteye (Group C.E.O)
Masunungure said Mnangagwa’s objec- B. Ndebele, P. Shah, H. Rudland, M. Nzwere, W. Matsaira, B. Zamchiya, E. Muvingi, J. Gracie, D. Garwe, P. Mujaya*, P. Shiri* (* Executive.)
tive of promoting investment into the coun-
try will be dead in the water.
“He is digging his investment grave even 28 SIMON MAZORODZE ROAD, SOUTHERTON, HARARE, ZIMBABWE, TEL: +263 242 754 666/7 ,+263 242 755 878, +263 772 131 300-4
EMAIL: admin@ tsl.co.zw
deeper,” Masunungure noted.
The international community, initially
14 Zimbabwe independent July 17 TO 23, 2020

OPINION

Jonathan Chando
Zim has always had a
democracy deficit (II)
Lawyer

Continued from last week.

THE remaining members of the Zimbabwe


People’s Army (Zipa of the old guard), who
included, Rex Nhongo (Solomon Mujuru),
Tonderai Nyika (Paradzai Zimondi), Mupa- and deposed its own creation, Mugabe,
ruri and Webster Gwauya were on Robert through a coup d’état. The military imposed
Mugabe’s side. Mnangagwa after deposing Mugabe in the
This revolt was followed a year later by same way they did in 1975 when they in-
the Gumbo/Hamadziripi Rebellion, where stalled Mugabe after deposing Ndabaningi
Muparuri and Webster Gwauya and Augus- Sithole.
tine Chihuri (Stephen Chocha), were also The army commander’s warning two
purged by Mugabe and some commanders days before the 2017 coup d’état, referred to
who had taken sides with Mugabe. What the Mgagao Declaration (first coup d’état),
many may not have realised is that the giving Mugabe an indication that the mili-
crushing of revolts or purging of these lead- tary had imposed him as leader after de-
ers and commanders was, in essence, the posing Sithole, and would remove and re-
crushing of divergent opinion within the place him in the same way.
party and military. Every cadre who dis- When the leader preferred by the mili-
played a different way of thinking became tary ceases to serve its interests, and refus-
an enemy or a reactionary, which was es- es to toe the line, the military will get rid of
sentially not wholly true. This marked the that particular leader and impose another.
undemocratic nature of Zanu PF, where There will be a semblance of normalcy dis-
only a few with influence called the shots. guised in elections which will never be free
This purge marked Mugabe’s grip on nor fair, to legitimise the regime and fool
power, with the backing of military com- both citizens and the international commu-
manders. All decisions of the party became nity. It would not be a surprise if the mili-
Mugabe’s sole responsibility and the com- tary turned against the incumbent when he
manders were the guarantors of the power ceases to serve its interests.
regime. While the people were mobilised After the November 2017 power grab, I
for the revolutionary cause on the war wrote an article chronicling the constitu-
front, they did not have any contribution in tional violations by the military in effecting
the direction and decision-making in the the power takeover, which I will repeat in
party and in the war. the coming weeks.
Backed by Zanla, Zanu won the elections
resoundingly in 1980, riding on its influence
Illiberal democracy in the opposition
in the country, through both persuasion It may also be noted that the operation of
and coercion, and formed a unity govern- Vice-President Constantino Chiwenga pseudo democracy does not only occur in
ment with Zapu, another liberation outfit. Zanu PF. It is also prevalent in the opposi-
The people of Zimbabwe believed at this cratic tendencies in their party and tried ex-Zanu PF leaders being stripped of farms tion, where cults and factions have loyalty
point that they had entered a democratic to highlight them were expelled, the likes and property as well as incarcerated. syndicates, thus causing divisions and splits
dispensation. It appeared so on paper, and of Edgar Tekere and Margaret Dongo being It is ironic that Moyo was ordered to an- within them, all for personal rather than
it seemed to be the same in practice. But cases in point. Another war veteran who nounce the firing of Joice Mujuru in 2014 (to national interests. Since its inception, the
did the people really have a say in how the tried to keep Zanu PF in check was Lazarus whom he was aligned); to fire Mnangagwa MDC has only had one elected leader in
country was to be governed? Nzarayebani who was then MP for Mutare. in early November 2017; and to fire Mugabe Tsvangirai.
The answer is negative. His outspokenness courted the wrath of the three weeks later. No one would envy The internecine splits and factions in the
People were tired of the war, and voting government. Moyo’s turncoat position right now as he is MDC since 2005 have largely been a result
against Zanu PF would mean the return to The year 2008 marked the real turn- being used as a doormat by whoever seizes of democratic intransigence and constitu-
war, according to Zanla. While most voted ing point where Zanu PF was turned into a power on the day. Such is the undemocratic tional violations by the leadership, which
Zanu PF of their own will, some voted sim- monster after the MDC had won the elec- and autocratic nature of Zanu PF. have caused multiple divisions.
ply to avoid the experience of war again. tions and Mugabe had been defeated by In early November 2017, many had been The appointment by Tsvangirai of Chami-
After Independence, decisions were Morgan Tsvangirai. In the words of Emm- singing praises of Mugabe and his wife, sa and Elias Mudzuri as deputy presidents
made by the leadership with little consulta- erson Mnangagwa, Mugabe was ready to donning regalia with their portraits, while of the MDC, in violation of the party con-
tion of the voting members. All they were cede power to Tsvangirai, but Mnangagwa, castigating Mnangagwa. But three weeks stitution, is glaring evidence of the ab-
given was the revolutionary rhetoric which with the backing of the Zimbabwe Defence later, they had swiftly changed sides and sence of democracy in the opposition. The
was either forced upon them or persuaded Forces commander General Constantino were now castigating Mugabe and praising succeeding unconstitutional power grab
to embrace as the right decisions. The mili- Chiwenga, told Mugabe to stay put. Mnangagwa, whom they had been happy to by Chamisa after the death of Tsvangirai,
tary was always the guarantor of this pow- It took them a whole month to cook the see fired, but were now all wearing regalia akin to the 2017 Zanu PF power grab, also
er. War veterans became the custodians election results, laying the pretext for a bearing his portrait. They started castigat- exacerbated the stifling of democracy and
of Zanu PF governance and any divergent run-off. The military would unleash a reign ing Grace Mugabe and the G40 cabal, with- constitutionalism.
opinion was viewed as reactionary, or of of terror in the run-up to the re-run, ab- out batting an eyelid. That is the bootlicking After grabbing power, Chamisa disman-
colonial puppets. ducting, raping, maiming and killing many and hero worship rampant within both the tled structures left by Tsvangirai, appoint-
The selection of candidates in primary opposition members. Tsvangirai withdrew party and government. ed his own praise singers into positions of
elections of the party was not exactly ac- from the race, fearing for the lives of his This has ultimately thrown any sense of power to protect himself. With the help of
cording to the people’s choice, but accord- party supporters and for his own life at the democratic semblance into the dustbin, the “Vanguard” party youths, he has main-
ing to who the leadership and the military hands of the military. He sought refuge in while the Zanu PF constitution and the tained a dictatorial reign over the party and
viewed as toeing the line. Zanu PF became Botswana in fear of the military onslaught. national constitution have been trampled anyone with divergent opinions will be at-
too complacent having cowed the citizens Statements have always been released by upon in the process. Meanwhile, the mili- tacked both verbally and physically by the
into believing that only they had the right the military, to the effect that the military tary has eventually asserted its previously Vanguard, while they are labelled Zanu PF
to govern. would neither salute nor respect any leader hidden power over both the party and gov- or Central intelligence Organisation agents.
The opposition MDC was formed in 1999, who did not have liberation war creden- ernment, with military commanders now After the Supreme Court judgment de-
following the decline in the economy due to tials. So this was the second coup, staged in cabinet, and the former commander claring him illegitimate leader of the MDC,
Mugabe’s catastrophic adoption of the Eco- against Tsvangirai, the winning presidential of the defence forces who led the coup as Chamisa continues to remain in denial, re-
nomic Structural Adjustment Programme candidate, which re-installed Mugabe, as a vice-president. fusing to accept the judgment, and accus-
(Esap), the lump sum payouts to war vet- puppet of the military. (Clifton 2020). It is ironic that the MDC, with its huge ing Zanu PF of orchestrating his downfall.
erans in 1997, which collapsed the value of In its whole existence, Zanu PF has never contingent of lawyers, mobilised and If Zanu PF has done anything to stoke the
the Zimbabwean dollar, and the military embraced the free selection of candidates marched in support of the military power confusion and mayhem in the MDC, it only
deployment to the Democratic Republic of when appointing leadership throughout its grab, which was evidently in violation of comes in to skin the carcass of an already
Congo in 1998. structures. Imposition of candidates or the the constitution, and a coup d’état. Then, I dead animal, because the MDC has de-
This brought the realisation by both buying of loyalty have been the norm. even wrote an article in which I expressed stroyed itself.
Mugabe and the Zanu PF leadership that Intimidation and the threat of expulsion my dismay when Nelson Chamisa, then a All other political parties in Zimbabwe
they could lose the support of the people to have always cowed dissenters. The pun- newly qualified lawyer, declared in an in- are either one-man bands or small groups
the MDC, after losing in the 2000 constitu- ishment meted out on those expelled has terview on CapiTalk, that it was not a coup of people whose democratic processes can
tional referendum. been harsh, and is meant to send a chilling d’état, but a miracle. I also highlighted how never really be acknowledged, because
The military was then roped in, together warning to any would-be rebel. coups can easily set a precedent for the they lack national relevance.
with the war veterans, to campaign and This was evident when Joice Mujuru was military, to stage a coup d’état whenever In conclusion, Zimbabwe has still not
force voters to vote Zanu PF in the 2002 expelled in 2014, where members were their interests are not achieved by their attained representative democracy status
general elections, as well as during the farm cowed into denigrating their vice-presi- handpicked state leader. and it will take greater efforts by dedicated
invasions which led to the fast-track land dent at rallies at the instigation of Mugabe’s As much, as the people of Zimbabwe citizens to overturn this patronage system
reform. wife. Even those in Mujuru’s camp had to have clamoured for representative democ- which rears its head both in Zanu PF and in
Since then, the hand of the military be- turn against her, for fear of retribution the racy, it has never materialised, and remains the opposition. What Zimbabwe currently
came more visible, with war veterans play- same way Mujuru had faced. Simon Khaya elusive. The military has been ruling since experiences is illiberal democracy, where
ing the front role in unleashing terror on cit- Moyo, who was touted to be a Mujuru func- the end of the liberation war and continues leaders only care for their personal or group
izens who supported the opposition or ex- tionary, had to turn against her to save his to do so. The notion that the pen rules the interests. Thus Zimbabwe has always had a
pressed divergent views. Any person inside skin and post within Zanu PF. gun, as espoused by Mao Zedong, has never democracy deficit.
or outside Zanu PF who expressed divergent Once expelled from the party, any wealth occurred in Zimbabwe’s history.
views was punished, labelled a reactionary, or property acquired while in Zanu PF It is therefore not at all surprising that Chando is a lawyer, political analyst and com-
puppet of the West and brutalised. would be forfeited clinically, to ensure pain Zimbabwe has been under invisible mili- mentator on international law and politics.
Zanu PF leaders who saw the undemo- and suffering. Zimbabwe has witnessed tary rule, which has now unmasked itself — jonathanchando@gmail.com
Zimbabwe independent July 17 to 23, 2020 15

OPINION

Fungisai
Dube
Health expert
Health sector on autopilot:
THIS week, Zimbabweans woke up to news
that the government had fired the country’s
Thousands of lives at risk
top public hospital administrators, barely a
week after Health minister Obadiah Moyo pandemic, others face collapse, massive job
was dismissed amid allegations of abuse of losses are predicted and they can therefore
office involving multi-million-dollar pro- not afford the costs of testing. The govern-
curement deals for Covid-19 supplies. ment must ring the alarm and ask interna-
In addition, some directors in the Minis- tional partners to help it increase capacity
try of Health and Child Care have also been to fund testing, while making it clear and
sent on forced leave, meaning the country’s giving assurances that any such funding
public health sector is without critical lead- will be used for what it is intended.
ership as the nation grapples with a global The government has ignored the pub-
pandemic and allegations of graft. lic outcry about its continued spending on
To add to this, the Health ministry does what are seen as luxuries at the expense of
not have a substantive permanent secre- its ailing public health sector and a collaps-
tary. These shocking developments in the ing economy.
heath sector mark an assault on patients’ Foreign Affairs minister Sibusiso B Moyo
rights and put the lives of Zimbabweans at recently made shocking revelations that the
risk, with millions reliant on the public sec- government had spent public funds pro-
tor for healthcare provision. curing high-end vehicles for its diplomatic
The question that needs to be asked is: missions across the world, raising questions
who is in charge and who is overseeing this about state priorities amid Zimbabwe’s
shocking decline in the provision of critical deepening socio-economic crisis. The Min-
health service? Is the country’s Covid-19 istry of Foreign Affairs is not alone in its
response on autopilot? Who are the actors spending and accessing of luxury perks
in the public health sector? funded from the public purse.
The capacity of Zimbabwe’s health ser- The regulatory Health Services Board,
vice sector to deal with the immediate which fired the hospital chief executives—
health crisis and stop Covid-19 infections claiming the dismissals are aimed at im-
rising is severely compromised. Mas- Health care in shambles ... Nurses protesting poor salaries recently and (below) the outpatients proving operational efficiency—shrugged
sive corruption in a grossly underfunded department at Sally Mugabe Central Hospital (formerly Harare Central Hospital) that is usually off concerns about public expenditure and
country that already has fragile health in- busy, is virtually deserted as service delivery at government hospitals ground to halt. took delivery of luxury cars for its own sen-
frastructure not only undermines public ior staff. The HSB’s excuse was that the of-
confidence but also government response The government must open itself to scru- disrupted or suspended in some areas. ficials are entitled to these as part of their
to the pandemic and will also undermine tiny and allow greater examination of the In the past week, the National Blood conditions of service.
recovery efforts, post-Covid-19. procurement process so that the public can Services of Zimbabwe (NBSZ) temporar- All this is clear testimony of a government
The government’s Covid-19 response has understand who has been making deci- ily suspended the issuing of blood coupons unconcerned about a declining economy, a
exposed a catalogue of shocking govern- sions on what is procured and how the ten- to public hospitals following government country in which millions face food insecu-
ment inadequacies and errors that have left ders have been awarded. failure to pay the institution. Many Zim- rity, inflation, poverty and where graft has
patients desperate and will bring immense Information needs to be shared on the babweans, including expectant women in been normalised.
human suffering to Zimbabweans seeking capabilities of those who have been award- emergency situations, cannot afford to buy Public officials continue to draw out-of-
other critical health services. ed the procurement tenders and questions blood because of the high cost. The disrup- pocket expenses and other Covid-19-relat-
What is seemingly a lack of capacity by answered on whether there has been ro- tion of services has affected the vulnerable ed allowances from government, diverting
the government to adequately mobilise an bust scrutiny on their ability, the pricing and those in low-resource settings. much-needed resources during what is a
effective response, has increased public and the quality of supplies. Requests for The virus has shone the spotlight on the critical period.
distrust and concerns about corruption in information by civil society and the media severity of problems in the healthcare sec- The frustration among Zimbabweans is
the Covid-19 response. This, in a state that on Covid-19 procurement, statistical infor- tor and should present an opportunity for growing. The pandemic has exposed gov-
is already burdened with disease and faced mation on the country’s response, and dis- the government to fix a broken health sec- ernment shortcomings and makes it clear
with socio-economic decline, has rendered aggregated data, are rebuffed or met with tor. The heath sector has been pushed to that the health of its citizens is no longer
the country unstable. silence. the brink and in the coming months the a priority. The questions citizens are ask-
The worsening state of the heath sector is Containing the virus is critical but, sadly, country will pay a heavy price for its poor ing is who is charged with tailoring the
also compounded by a strike by the coun- resources appear to have all been diverted response to Covid-19 and its total neglect much-needed interventions for the health
try’s nurses, leaving work stations poorly from critical health services towards con- of treatment alternatives for other diseases. sector when the government appears
unattended, public hospitals not working taining the coronavirus outbreak, at the Months into a lockdown to contain the preoccupied?
at capacity, while nurses are engaged in expense of sexual reproductive health virus, testing challenges exist and this has
running battles with the police and are be- care, leaving women vulnerable. Mater- been limited in the country with the finan- Dube is a trustee of Citizens Health Watch, a cit-
ing arrested in shocking scenes. The gov- nal mortality rates are likely to be higher, cial burden of testing being placed on com- izen-centred health watchdog that monitors the
ernment must urgently address the nurses’ squandering gains made by Zimbabwe in panies that are being forced to comply with quality of health care delivery in public hospitals.
grievances and what has been a crisis, dec- reducing maternal and infant mortality. demands that they provide these to their It was established to respond to systematic ex-
ades in the making, marked by poor re- Provision of sexual and reproductive health own employees. Many of these companies clusion and non-participation of ordinary citizens
muneration, leading many nurses to plead services, especially antenatal care has been have seen their profits decimated by the in the health care system in Zimbabwe.
poverty.
Citizen Health Watch (CHW) has noted
how some health centres have continued
to be innovative and have shown great
commitment in servicing the nation. Our
concern is that without support, recogni-
tion and leadership, such efforts amount to
nothing
The government’s lack of urgency in ap-
pointing a replacement for the Health min-
ister and critical staff and administrators,
and what appears to be its inability to deal
with the nurses’ strike is worrying. The
current arrangement of 12-hour two-day
shifts per week does not only compromise
quality but is also unsustainable and unrea-
sonable. The government needs to commit
itself in resolving this crisis as such piece-
meal deferment of critical issues will in
the long term paralyse an already crippled
healthcare system.
Given the evident weakening of checks
and balances in the awarding of tenders to
procure Covid-19 supplies, the government
must be transparent about its expenditure
on the pandemic. It must publish details
of the funding it has received so far, locally
and internationally, where and how this
has been used and an indication of the in-
kind donations to the country.
Citizens should demand an audit of Cov-
id-19 funds or even a tracker that shows
how these funds are used. Added to the
corruption fears is a crisis of leadership in
the health sector, weak supervision and
oversight, meaning citizens should expect
more disheartening revelations on corrup-
tion and lack of accountability.
16 Zimbabwe independent july 17 to 23, 2020

MOTORING

2020 Hyundai Elantra: A smart choice


Andrew
Muzamhindo
Analyst

The 2020 Hyundai Elantra is a smart


choice. It is a car that screams value for
money for it is generous with its equip-
ment list, making it even more irresistible.
The new model has been refreshed,
adding angular new styling and other up-
grades. It now has a new intelligent con-
tinuously variable transmission (CVT). The
turbocharged Eco and Sport trim levels
continue to use dual-clutch transmission
(DCT), but the Sport trim loses its standard
manual gearbox.
Hyundai makes dual-zone automatic
climate control standard in every 2020
Elantra, and equips every example of the
car with forward collision warning, auto-
matic emergency braking, lane departure
warning, lane keeping assist, and a driver
monitoring system.
Elantra buyers are price sensitive. They
will avoid vehicles that come with high
maintenance costs. They love its exterior
styling, storage and space, seats, interior
design, and visibility and safety whilst they
do not like its driving dynamics, infotain-
ment system, fuel economy, engine/trans-
mission, and climate system. They love the
way the Elantra looks, so Hyundai can call
the geometric-themed 2019 styling update
a success. No doubt, the revised design de- 2020 Hyundai Elantra
tails give the car more personality, and the
Limited trim’s larger 17-inch aluminum
wheels look especially appealing. Inside, the Elantra offers plenty of engine which generates 110Kw of power 14 kms per litre in combined driving. The
The buyers also like the interior design. storage space for the driver and front and 179 Nm of torque. Elantra's Environmental Protection Agen-
It is equipped with plenty of silver contrast passenger. This year, Hyundai swaps the previ- cy (EPA) fuel-economy ratings are among
trim, including handsome accents on the The Hyundai Elantra is an exceptionally ous six-speed automatic for an intelligent the best of all compact cars
air vents. It is easy to understand why they safe car because of its forward collision continuously variable transmission (CVT). If you are after a smart choice, then the
love this look. The interior controls work warning system, automatic emergency The company asserts that its new CVT is Elantra is your car. It is affordable, practi-
well and are laid out in logical fashion, are braking, lane departure warning, and lane better than what you will find in the com- cal and a value-rich car. It extends its ap-
clearly marked and easy to use. At night, keeping assist are standard on all trim lev- petition, from its broader range of opera- peal beyond the basics to include technol-
they glow in a soothing blue manner. els. All but the SE trim include blind spot tion in combination with simulated gear ogy, safety, and performance especially
It comes adorned in leather. The seats warning and rear cross-traffic warning. shifts like those of a traditional automatic. with its sport trim.
are quite comfortable, front and rear. The These advanced driver assistance sys- The game changer, according to Hyundai, Competition in the compact sedan class
driver’s seat features eight-way power ad- tems (ADAS) work well on the road, and if is use of a chain belt instead of a push belt is fierce, but the Elantra remains a solid
justment. The front passenger’s seat offers prefer to drive without lane keeping assist design. choice and it stands out as a bargain with
a height adjuster. This is fantastic because engaged, you can turn it off using a button The goal of the new CVT is improved its tons of features, excellent fuel econ-
it helps to make the car easier to get into on the dashboard. fuel economy. Claimed mileage per litre omy and peppy turbocharged engine. —
and out of. It comes with a two-litre four-cylinder has risen from 13,5 kilometres (kms) to andrew@muzamhindo.com.
However, the plastic Hyundai uses to
panel the backs of the front seats makes
the model take a bit of a knock. Taller rear-
seat passengers will not like how it feels
against their knees and shins.
A dual-zone automatic climate control
system with a Clean Air ionizing filter and
an automatic defogger is standard.
Hyundai also installs heated front seats
in every version of the car except the SE
and SEL, helping to make it more comfort-
able during the cold season.
It is equipped with the optional Ultimate
Package which is a larger eight-inch info-
tainment system touchscreen display and
a navigation system. Other trim levels use
a seven-inch display, except for the base
SE, which has a five-inch display. Apple
CarPlay, Android Auto, and SiriusXM sat-
ellite radio are standard with SEL trim and
higher. Limited trim further includes a
wireless smartphone charging pad and an
Infinity premium sound system. Blue Link,
wireless charging, and premium sound are
options for the Sport trim level.
Thanks to stereo knobs and a row of
shortcut buttons to main system menus,
the Elantra’s infotainment system is in-
tuitive to use. Sound quality is good, too,
thanks in part to the Infinity system’s Clari- 2020 Hyundai Elantra interior
Fi digital music restoration technology.
ZIMBABWE INDEPENDENT JULY 17 TO 23, 2020 17

COLUMN

World
View
GWYNNE DYER
The Balkan ghosts tian church should no longer be used as a
“FORGET it, Jake. It’s Chinatown,” says an mosque. It became a museum, open to all
old friend to Jack Nicholson as the mother — and remained so until Turkey’s current
is killed, the little girl is handed over to the president, Recep Tayyip Erdogan, decided
bad guy and the police wash their hands of it to turn it into a mosque again.
at the end of the 1974 classic film Chinatown. There is no shortage of mosques in Is-
The movie was about the triumph of tanbul. Indeed, there is another one right
power and the futility of hoping for jus- beside Hagia Sophia, almost as big, much
tice. Chinatown was just a metaphor, and any more beautiful, and with six minarets, not
other place where justice is denied would four.
do as well. Which is probably why today I Erdogan is only doing this because his
feel like saying “Forget it, Mehmetçik. It’s popularity is waning: his proxy wars aren’t
the Balkans”. going well, his party has split and the econ-
July 11 was the 25th anniversary of the omy is on the rocks. So do something spite-
massacre of Bosnian Muslims (Bosniaks) ful to the neighbours. It should play well at
in Srebrenica towards the end of the 1992- home.
95 war in Bosnia. It was the Bosnian Serbs It’s 500km from Bosnia to Istanbul, but
who began the war, seeking to break up we are still in the Balkans.
Bosnia and unite with next-door Serbia,
and since Bosniaks and Serbs lived side by Dyer is a London-based independent journalist.
side in many places, there was much ethnic His new book is titled Growing Pains: The Future
cleansing. But this was special. Turkish President Recep Tayyip Erdogan of Democracy (and Work).
Srebrenica was then a Muslim-majority
town, and when Bosnian Serb forces cap-
tured it 20 000 Muslims took refuge with
the Dutch troops who were there to protect
a United Nations-declared “safe area”. But
the Dutch soldiers handed them over to the
Bosnian Serb forces.
The Dutch had a choice, of course. They
could have refused. Maybe they would have
had to fight against far more numerous and
better armed Serbs. Maybe they would
have been killed and the people they were
supposed to protect would have been mas-
sacred anyway. But they were soldiers and
that was their duty.
When soldiers talk about having signed INVITATION: TO BUILT ENVIRONMENT SERVICE PROVIDERS FOR SUPPLIER LIST REGISTRATION
a contract of “unlimited liability”, this is Mashonaland Holdings is a listed property investments company, and wishes to invite reputable
what they mean: when the circumstances
demand it, you must be willing to lay down current and prospective service providers to submit their credentials for vetting and inclusion in our
your life. In fact, this is what gives dignity to 2020/21 service providers’ database.
the military profession — but the Dutch sol- REQUIRED SERVICES
diers had apparently not read the contract. 1. Building Plant Equipment
Knowing what was coming, most of the 1.1 Installation, Repairs and Maintenance of elevators.
Muslim men and boys fled into the woods,
but about 2 000 who had taken refuge with 1.2 Installation, Maintenance and Repair of air conditioning system and water pump system.
the Dutch UN troops were handed over to 1.3 Electrical and Mechanical Infrastructure Installation and Maintenance e.g. CCTV Systems,
the Serbs. The Serbs separated those men access control system, building monitoring systems, boom gate, roller shutter gate and
and boys from the women and girls, chased electric gates.
down most of the men who had fled into 1.4 Fire Fighting Equipment including sprinkler system, fire alarm system and Fire suppression
the woods and murdered them all — 8 000
of them. 1.5 Generator Supplies, Installation, Repairs and Maintenance
It took 10 days, even with bulldozers to 1.6 Fuel tanks servicing & maintenance
scrape out the mass graves. (Later the Serbs
dug up the graves and moved them to better
2. Specialist contracting and Building Service providers
hidden areas, but after 25 years of searching 2.1 Shop fitting and glazing
all but a thousand have been found.) 2.2 Locksmiths
Twenty years later, a special UN war 2.3 Painting specialists
crimes tribunal sentenced the Bosnian Serb 2.4 Borehole siting, Drilling, Installation and Maintenance
leader, Radovan Karadzic, to life in prison 2.5 Roofing and Roof Repairs
for genocide. (His military commander,
Ratko Mladic, is still appealing his convic- 2.6 Bulky water supply
tion.) But few of the Bosniaks driven from 2.7 Rope access specialists
their homes have been able to go back — 2.8 Structural steel & Metal fabricators
and denial reigns in both the Bosnian “Serb 2.9 Hardware and building supplies
Republic” and in Serbia proper. 2.10 Waterproofing specialists
For the Serbs, it’s all fake news, a “fabri- 2.11 Building equipment and plant hire
cated myth” in the words of Milorad Dodik,
the Serb member of Bosnia’s three-person 2.12 Building electrical installations, repairs and maintenance
presidency. The president of Serbia, Alex- 2.13 Plumbing installations, repairs and maintenance
ander Vucic, doesn’t go quite that far, but 2.14 Building contractors
denies that there was a genocide. It’s all 2.15 Handyman services (carpentry, tiling, plastering and skimming)
very “Balkan”. 2.16 Fencing contractors
From great tragedy and vile lies to mere 2.17 Septic & Sewer companies
churlishness: next week, in Istanbul, there
will be Muslim prayer services in Hagia So- 2.18 Waste removal companies
fia for the first time since 1934. The massive 3. Requirements
cathedral overlooking the Bosphorus, built 3.1 Company Profile showing key resources and skills
almost 1 500 years ago, was the world’s
largest building for almost a thousand years. 3.2 Proof of industry or professional registration
When the Ottoman emperor Mehmet II 3.3 Certified VAT registration certificate and current tax clearance certificate (ITF 263)
conquered the city in 1453, he was much
taken with the bulding and had it converted 3.4 Certified certificate of incorporation, CR14 and CR6
into a mosque. All the Christian symbols 3.5 At least three traceable trade references
and relics were destroyed, four minarets
were built at the four corners, and for the NB: The submission should be well sealed and clearly state the category being applied for. The advert is
next half-millennium only Muslims prayed merely an INVITATION to do business NOT AN OFFER to provide goods and services to Mashonaland
there. Holdings Limited. Interested companies should submit their documents by 1600 hours on the 30th of July 2020
Fair enough. Conquest was the business, to:
and that’s how business was done in those The Administration Manager
days. The Ottoman empire went on to con-
quer almost all of the Balkans, so nobody Mashonaland Holdings Limited
in the Christian world seriously dreamed 77 Jason Mayo Avenue
of getting Hagia Sophia back. But the cen-
12th Floor ZB Life Towers
turies passed, and eventually the empire
collapsed. Harare
The Turkish republic that Ataturk rescued
from the wreckage was a secular state and
in 1934 he declared that this ancient Chris-
18 Zimbabwe independent july 17 to 23, 2020
Zimbabwe independent July 17 to 23, 2020 19

SPORTS NEWS

Sports
Panorama
I’m inclined to feel for Zifa
Enock Muchinjo

FOR me, Felton Kamambo’s speech howl-


ers ceased to be funny the very day he
boss, but misgivings linger
made a total mockery of himself at the un-
veiling ceremony of new Warriors coach
Zdravko Logarusic in February.
So, sympathy was the instant reaction of
mine days ago after the Zimbabwe Foot-
ball Association (Zifa) president — at a
press briefing to announce the allocation
of relief funds in the wake of the corona-
virus outbreak — had social media users
amusing themselves at his expense the
entire week.
The poor guy, addressing reporters in
Harare, spectacularly misread figures, also
once more displaying how he is awfully ill
at ease when the journalists’ cameras are
on — and English is the official language of
communication.
Kamambo’s extremely awkward pub-
lic demeanour is likely the result of some
kind of impediment stemming from social
background. Quite a lot of otherwise de-
cent folk battle it in their everyday lives.
Hence showing a little consideration —
instead of mocking — is perhaps the ma-
ture way of handling those of such unde-
sirable disposition.
I am no shrink, but I have learnt from
everyday life that human beings need to
be understood in their varying social and
cultural spaces.
In that regard, one can begin to under-
stand that somebody like Kamambo is not
exactly a complete misfit, especially in the
familiar company of people he trusts and
in situations he feels at home.
The Zifa boss appeared on television
early last year speaking in his native Sho-
na at the funeral ceremony of a Warriors
fan, Agnes Nyamadzawo, tragically killed
a few days earlier in a stadium stampede at
an international match in Harare.
Surrounded by people he knows well,
addressing an audience he can easily re-
late to, using a language he is most com-
fortable with, Kamambo spoke so elo-
quently and delivered a touching eulogy in
sending off the dearly departed supporter.
But, in one point of view, while address-
ing multitudes of mourners in rural Dom-
boshawa takes quite a bit of skill, repre- Zifa president Felton Kamambo
senting an entire nation on the global foot-
ball stage is a different thing altogether. facing powerful world footballer leaders, football governing body’s riches, it has be- ly from Fifa’s loaded coffers just because
Where the question mark might arise, some of them guys whose aura of author- come a must that the person heading his of your national association boss’s crafts-
perhaps, is when you try to imagine ity and mere presence can send the self- country’s national federation be one of manship behind closed doors, Kamambo’s
Kamambo’s performance around the esteem of other men tumbling. some kind of shrewdness and intellect. apparent lack of guile is where a Zimba-
globe in high-profile meetings where im- With each of Fifa’s 211 member nations In times when equipment can be re- bwean football fan would perhaps feel
portant football matters are discussed, all desperate for a fair share of the world leased or extra funds availed spontaneous- short-changed.

French club holds on to ‘Zim Express’


ZIMBABWE star Shayne Makombe (pic- health,” he said. “Personally, it also gave
tured) is over the moon after French club me a lot of time to introspect and appre-
Rugby Club Compiegne extended his con- ciate a lot of things I may have taken for
tract by another season, shaking off fears of granted.”
termination due to the Covid-19 pandemic. The gradual return of sport around the
The French domestic season came to a world excites the mercurial Sables back-
premature end in the wake of the corona- liner, who was also a keen cricketer and
virus outbreak, but a new term is now set footballer in his younger days.
to start on the weekend of September 12 “Sport has the power to unite and prob-
and 13, much to the delight of the Sables ably safe reintroduction will give hope to
centre. many as witnessed by the many leagues
And now before the brand new season that have resumed,” Makombe said. “Rug-
begins, the 27-year-old Zimbabwean is by has a wonderful window to restructure
currently in Lithuania, where he has signed for it to become more appealing globally
a short-term contract with a club plying its and I hope the powers-that-be recognise
trade in the six-team Baltic Top League. the opportunity.”
“Through my mentor, (Zimbabwean Makombe, nicknamed “Zim Express”
youth coach) Farai Bob Mahari, I got to at the third-tier league French club, also
know the coach of the team I signed up spoke of his sadness over the departure
with here in Lithuania,” Makombe told In- of Zimbabwe’s assistant coach, Spring-
dependentSport this week. bok record-holder Tonderai Chavhanga,
“He actually had a coaching stint at who left the post citing increased work
Churchill (Makombe’s former school) in commitments.
Zimbabwe for four months. So after our “Tondies was an inspirational figure
season ended, we were in touch and he and he will be solely missed in the set-up.
called and offered me this stint. I came here While I and other players are sad to see him
before and I love the country so it was an go, his work and principles will still be ap-
easy decision.” plied in the system,” Makombe said. “He
Makombe added that the inactivity due was uncompromising on professionalism
to Covid-19 afforded him time for an anal- and it’s something I’m big on myself. So I
ysis of the game and life in general. really loved working with him and I wish
“Not playing due to Covid didn’t feel him well in his new endavour.” — Staff
like lost time as the main priority became Writer.
ANAlysis I’m inclined to feel for Zifa boss, but misgivings linger/ 19

9 7 7 1 5 6 4 0 6 9 0 0 0
Independent

SPORT
ISSN 1564 - 0698

Zimbabwe independent July 17 to 23, 2020

When Siya did the


honours for Zim

Springboks skipper Siya Kolisi presents the fullback jersey to Zimbabwe's captain Brandon Mandivenga in May 2019 and (right) laughs heartily with Njabulo Ndlovu at a joke about their similar
looks. Then (inset) hoisting the World Cup in Japan five months later.

ENOCK MUCHINJO ing neighbours’ camp. hand out our jerseys,” Zimbabwe’s cap- bles skipper. “Having spoken to him
A cheerful Kolisi arrived at Zimba- tain Brandon Mandivenga told Independ- months before, sharing quite a hap-
FORMER South Africa coach Peter de bwe’s quiet suburban lodgings in Cape entSport this week. py time, it was a great thing to see the
Villiers did not leave behind pleasing re- Town on a cold Friday evening in May “To have someone of his stature, the World Cup being lifted by someone who
sults in his shortened tenure with Zim- 2019 ahead of the side’s clash with Free captain of the best team in the world, definitely deserved the accolade.”
babwe in 2018, but the choreographed State XV the following day. personally giving us our jerseys, is The biggest cheer of the night back
pre-match formalities that he imported Kolisi was clearly quite pleased to something both myself and the team in May 2019, in the hotel’s dining room
from the Springboks is one legacy the perform the duty, laughing and chatting will definitely not forget in a hurry. in Cape Town, erupted when the name
neighbours are happy to carry on. with everyone throughout the event. He did speak to me personally and Njabulo Ndlovu was called up and the
A group photo of the match-day 23 More so, perhaps, out of the realisa- the team. He told us his story, where big Zimbabwe loose forward walked
and the coaching staff is followed on tion of the presence at the function of he came from, and he encouraged us to to join Kolisi at the front to receive his
the eve of the game by a kit presenta- a fellow Springbok history-maker— keep believing in our abilities, to keep jersey.
tion ceremony, where a specially in- Zimbabwe assistant coach Tonderai fighting. Zimbabwe teammates of Ndlovu
vited prominent figure hands out the Chavhanga — who scored a record six He told us that anything is possible. reckon the experienced Sables man
jerseys to the starting XV as well as the tries on debut when Kolisi, South Afri- Listening to his story, and what he has bears a striking resemblance to the Boks
substitutes. ca’s first black rugby captain, was still a achieved, his speech to us was definitely captain, who is interestingly also a loose
It can be a top player or renowned ad- 14-year-old up-and-coming player ex- a testimony to that.” forward.
ministrator, past or present, or any in- periencing a tough upbringing in an im- Italy-based utility back Mandivenga “We had a joke that was ongoing in
fluential person in society chosen by the poverished Eastern Province township. remarked that watching South Africa the team that Njabulo looks exactly like
coach or association. The encounter with the revered Boks being crowned world champions un- Siya and when it was time to hand out
So during Zimbabwe’s debut season skipper was an opportunity to cherish der Kolisi’s leadership brought back a the jersey to Njabulo everyone chanted
in South Africa’s SuperSport Challenge for the entire Zimbabwe squad. flood of memories from the Cape Town ‘Kolisi, Kolisi!’ because they looked
last year, Springbok captain Siya Kolisi— “It was definitely a humbling experi- meeting. so alike standing next to each other,”
five months before famously leading his ence and definitely an honour to have “It was definitely a heart-warming chuckled Mandivenga.
country to World Cup success in Japan— the Springbok captain, who has since moment watching him lift the World “It was a very funny moment and Siya
gladly answered the call from the ador- won the World Cup, coming through to Cup trophy,” said the 25-year-old Sa- also enjoyed it, which was good to see!”
ZIMBABWE INDEPENDENT JULY 17 TO 23, 2020 X1

IndependentXtra
ZIMBABWE INDEPENDENT

Banks excited to be named Rihanna and Jay-Z


first black female host of
Dancing With the Stars want fatal shooting
case re-opened
RIHANNA and Jay-Z have joined a raft of A- ciated the support and “that they are willing
listers calling on the United States attorney to stand behind us on this really important
general to investigate the fatal shooting of matter”.
an unarmed black college student. Aaron Hess, the Pleasantville officer who
Danroy “DJ” Henry (20), was shot shot the Easton, Massachusetts resident,
through his car windshield after Westch- was cleared by a grand jury in 2011. Henry
ester police attended reports of rowdiness was shot in his car as he drove through a
outside Finnegan’s Grill, an Irish pub popu- parking lot away from a disturbance that
lar with Pace University students, in Octo- spilled out of a bar on Homecoming Day.
ber 2010. In 2015, prosecutors reviewed the Prosecutors in 2015, following a review,
case and found that the shooting of the Pace said the officer shouted for Henry to stop
football player did not show that a law en- and then stepped in front of Henry’s car.
forcement officer acted with deliberate and They said there were inconsistencies in
specific intent to break the law. witness accounts, but that it appeared Hen-
Tyra But in a letter sent on Monday, US Attor- ry’s car was braking when it struck the of-
Banks ney General William Barr was urged to re- ficer, who wound up on the car’s roof.
open the case by Robyn “Rihanna” Fenty, The officer then fired through the car’s
Shawn “Jay-Z” Carter, Pharrell Williams, windshield, wounding one passenger and
TYRA BANKS was officially unveiled as the new don’t have any more firsts,” she told GMA. “But Charlize Theron, Taraji Henson, Odell Beck- killing Henry, the government said.
host of Dancing With the Stars (DWTS) on GMA it’s nice to be first, so that you can open that ham Jr, Michael Williams, Kerry Washing- Prosecutors cited several factors weigh-
Wednesday. door and let so many other people in after you ton, Mary J Blige and Gabrielle Union. ing against criminal charges.
The 46-year-old model turned TV mogul — so I’m excited.” “This agonising case remains an unhealed They said the altercation took seconds,
says she is “excited” to step into the role of Historically, Banks already has a few ma- wound for the Henry family and the people with no prior interaction between the offic-
both host and executive producer and thrilled to jor firsts under her belt, like becoming the first of New York,” the celebs said. “DJ, a young er and Henry, and that the car struck the of-
“break down” barriers by becoming the show’s black model to grace the cover of the Sports Il- Black youth with a bright future ahead of ficer and injured him before the officer fired
first black female host. On Tuesday, DailyMail. lustrated Swimsuit issue. him, was killed for no apparent reason in- his weapon as he made “a split decision un-
com exclusively revealed that Banks had been She is also a seasoned vet when it comes to side his own vehicle.” der conditions of extreme danger, condi-
tapped to replace longtime DWTS host Tom hosting, previously starring in her own daytime The letter continues: “The facts of the case tions under which the law generally allows
Bergeron and his co-host Erin Andrews for sea- talk show and creating and hosting the long- reek of local conflict of interest, racial bias latitude to a police officer’s judgment”.
son 29. running hit competition show America’s Next and even false testimony. But like so many But the Henry family attorney has said
“I am excited about hosting and executive Top Model. other unarmed and innocent young, black in civil court that Henry was driving slowly
producing,” Banks told GMA. “Getting in there, On Top Model, Banks coined the phrase men who find themselves guilty of being at and that officer Hess had lunged at the car
live TV — you never know what happens on live “smize” — a pose where you smile with your the wrong time, DJ, too, lost his life for no before firing through the window. The civil
TV.” eyes — which she joked would be “required” of good reason and with absolutely no good suit further alleged that Henry had been
Banks appeared virtually on the popular contestants on DWTS. explanation — to this very day. Justice, it hauled from his car, handcuffed and left
morning show and glowed on camera with her While she could not divulge too many details, appears, has been denied.” to bleed to death on the ground. — Mail
honey toned tresses down in soft curls and soft, Banks hinted that she and the show’s other ex- Henry’s father, Danroy Sr, said he appre- Online.
simple make-up. On Tuesday, multiple sources ecutive producer are working together to make
from within ABC confirmed to DailyMail.com some changes on the celebrity dance series.
that the former America’s Next Top Model was “Let’s just keep this real, it’s gonna be so
in line to replace Tom Bergeron and Erin An- next level,” she teased. “We are doing all this
drews, who were both dropped from the hit crazy stuff, taking it to the next level, but still
show on Monday. keeping the stuff America loves. But you need
Banks’ new gig makes her the first black fe- to get ready because it’s gonna be different.”
male host on DWTS and the first solo host on Banks is a veteran of show business for more
the show in 28 seasons. than three decades, finding success in numer-
“I like breaking those doors down, so that we ous formats including modelling, acting, hosting

DStv’s Pick of the Week


Three sisters will turn heads on M-Net’s ‘Legacy’
When M-Net’s exciting new daily drama Legacy hits our
screens in September, top-notch actress Mary-anne Barlow
will step into the power heels of Felicity Price, a character
whose tenacity is bound to have the tongues wagging.
Felicity has a firm eye on the CEO position in her dad’s
upmarket investment company. But first, she has to deal
with a complicated hurdle, the only male heir to the Legacy
Investments throne. Anton David Jeftha plays SJ, Elizabeth’s
problematic playboy half-brother.
Felicity and SJ are not the only Price siblings, however. The
Price family patriarch, Sebastian Price, has three daughters
from his first wife: Felicity, Elisabeth, and Alexandra “Lexi”.
Mary-anne Barlow, Jay Anstey and Reandi Grey portray
show-stopping siblings
The Price sisters will most certainly turn heads in Legacy. Rihanna
While M-Net will announce more members of the stunning,
diverse cast of the series soon, it has already confirmed that
Kgomotso Christopher, Michelle Botes, Deon Lotz, Trix Vivier,
and Sean-Marco Vorster will all be part of the channel’s first
telenovela.
Follow all the breaking news around the show on the M-Net
website and join the conversation with #LegacySA on Twitter
(@MNet), Instagram (@mnettv) and Facebook (@MNet).
X2 ZIMBABWE INDEPENDENT XTRA JULY 17 TO 23, 2020

LIFESTYLE & ARTS

Paris Jackson speaks of dream to be a musician


PARIS Jackson (pictured) re- sleeve or so I have been told. Peo-
vealed on Tuesday how her fa- ple can usually tell when some-
ther Michael encouraged her to thing’s wrong,” she said.
pursue her dream of becoming Prince pointed out one of her
a musician before he died when songs that he said revealed her
she was just 11. “emotion and pain”.
Now 22, Paris is in a band “I remember when my sister
called The Soundflowers with her first played Geronimo for me, I
boyfriend, Gabriel Glenn. can hear and feel all the emotion
In a rare interview on Good and pain and hurt that went into
Morning America on Tuesday, she that song and I remember think-
appeared with her older brother ing this was a song that other
Prince to tell how she started people both could relate to, but
writing music to “purge”, and other people needed to hear,” he
how their late father encouraged said.
them as kids. Paris is featured in a new Face-
“No matter what it was we book Watch show, Unfiltered, which
were interested in, I remember at follows her and Gabriel as they
one point I wanted to be an astro- make music.
naut, he was like ‘do it. do it. Edu- In the documentary, she ad-
cate yourself as much as possible mits that she “never thought” she
then go with it’ with every aspect would “end up” in a relationship
of life,” Paris said. with a man, having dated women
Paris was 11 and Prince was 12 in the past, and said her father
when their famous father died. picked up that she was attracted
Their mother, Debbie Rowe, has to the same sex when she was a
always resisted the limelight. child.
They have one other half-sib- “I think he felt the energy and
ling, Michael Jackson’s young- he would tease me the same way
est child Prince Michael Jackson he would tease my brothers, like,
II, known as Blanket, who is 18 ‘You got yourself a girlfriend!’ if
years old. His mother’s identity I were staring at a magazine of a
remains a mystery. woman too hard.
Now that she is pursuing her Paris said that she originally eral times and she recently re- all the place. A lot of kids that age “I’m very lucky to have that,
own music career, Prince — who started writing music “to get vealed that after father’s death, also suffer from depression and especially so young, eight or
produced his sister’s music vid- things out”. she became addicted to food and hard-core mental illnesses. nine. Not many children have
eo and spends much of his time “It feels good to get it out. It self-harming. “Part of it was a good portion of that experience. The first time I
working for charities — said he feels like not butterflies in your In her interview on Tuesday, it was just being that age and go- came out to a family member,
feels protective of his younger stomach but in your heart. It’s Paris said she pushed much of the ing through the trials and tribula- they didn’t believe me. (Prince)
sister. cool,” she said. “pain” she felt in those years of tion of a 15 year old girl, also just said he just wants to learn more
“The way we were raised, me Paris’ struggles with mental mourning into her music. drama. Drama is the seed to any about it, have a better under-
being the oldest ... I feel like I health and depression are well “Kids can be mean, your body’s kind of unhealthy coping skill standing of it.
should be the one that’s protect- documented. going through changes, your that you choose. “I’m lucky to have that as
ing the group,” he said. She has attempted suicide sev- emotions are everywhere. Just “I do wear my heart on my well.” — Mail Online.

Nick Cannon fired by MTV


in anti-Semitism row

FURTHER CAUTIONARY STATEMENT


Further to the cautionary announcement dated 24 June 2020 shareholders are advised that discussions for
the acquisition of 100% of the issued share capital of Dawn Properties Limited in exchange for African Sun
Limited shares based on an agreed price are still in progress.

Accordingly, shareholders are advised to continue exercising caution when dealing in the Company’s
securities until a full announcement is made.

Singer Mariah Carey’s ex-husband are terminating our relationship with


Nick Cannon (pictured) has been him.” By order of the Board
fired from his MTV show Wild 'N Out In the June 30 episode of
and other work for the channel’s Cannon’s Class, the presenter in-
parent company, which said he had terviewed former Public Enemy
promoted anti-Semitic comments. rapper Professor Griff, who left the
ViacomCBS said a recent episode group in 1989 after saying Jews were Venon Musimbe
of his podcast Cannon’s Class “pro- “wicked”. Company Secretary
moted hateful speech and spread Griff claimed to Cannon that he
anti-Semitic conspiracy theories”. was talking about Jews controlling
In response, Cannon said he does the media, and said: “I’m hated now 17 July 2020
“not condone hate speech nor the because I told the truth.” Cannon
spread of hateful rhetoric”. The star added: “You are speaking facts.” REGISTERED OFFICE
also presents The Masked Singer, The presenter called Griff a “leg-
African Sun Limited
AFRICAN SUN LIMITED 1912

which is made by Fox. end”. He also said the “Semitic


He created Wild 'N Out, an im- people are black people”, and that: Bally House
prov series that has had 15 series, “You can’t be anti-Semitic when we Mount Pleasant Business Park
but which will now come to an end. are the Semitic people.” On social
Corner Norfolk Road/870 Endeavour Crescent,
He has also hosted a string of shows media, Cannon later said he had
for the ViacomCBS-owned Nick- “no hate in my heart nor malice in- Harare, Zimbabwe
elodeon channel over more than 20 tentions” and that he held himself
years, and was named chairman of “accountable for this moment”. Financial Advisors Sponsoring Brokers Legal Advisors
spin-off TeenNick in 2009. Cannon was also criticised for
In a statement, the company said: comments that suggested white
“ViacomCBS condemns bigotry of people were “less” than black peo-
any kind and we categorically de- ple. The star hosted America’s Got
nounce all forms of anti-Semitism.” Talent on NBC from 2009 to 2016
It added: “While we support on- and is launching a syndicated day-
going education and dialogue in the time talk show called Celebrity Call
fight against bigotry, we are deeply Centre in September for Fox. Directors:
troubled that Nick has failed to Cannon also hosts a morning ra- A. Makamure (Chairman), E. T. Shangwa (Managing Director)*, B. H. Dirorimwe (Finance Director)*, G. Chikomo,
acknowledge or apologise for per- dio show for KPWR in Los Angeles. B. Childs, E. A. Fundira, N. G. Maphosa, T.M. Ngwenya, P. Saungweme.
petuating anti-Semitism, and we — BBC Online. * Executive
ZIMBABWE INDEPENDENT XTRA JULY 17 TO 23, 2020 X3

FOOD & TRAVEL FOOD & TRAVEL

Sabu-Jaddi: The site revealing the Sahara’s verdant past


MATT STIRN earliest form of Saharan rock art is known
as the Bubaline Phase, and while Sabu isn’t
OUR pickup truck turned onto a dusty two- the only site with ancient petroglyphs de-
track road heading away from the Nile River picting exotic game animals in the Sahara,
in north-eastern Sudan. Ahead of us, the it was the first in Sudan to be documented
landscape stretched forever and the small (by a British archaeological expedition in
bumps on the horizon, perhaps distant the 1940s) and remains one of the only ones
mountains or nearby sand dunes masked readily accessible to visitors today.
by mirage, were impossible to gauge in the Beyond the ancient art, other informa-
vastness. The only thing that appeared cer- tion about pre-historic people’s relation-
tain was the emptiness. ships with animals has been identified at
After an hour, we arrived at a wadi (dry nearby excavations, where butchered bones
riverbed) lined with outcrops of crumbling from warthogs, leopards, monitor lizards,
sandstone. Daydreaming as soft tunes of Su- fish, gazelles and giraffes lie alongside rem-
danese jazz crackled through the staticky nants of chipped stone tools and ancient fire
radio, I snapped back to attention as some- hearths.
thing caught my eye: a white animal-like As I continued my exploration at Sabu,
shape on one of the cliff faces. Wondering if venturing deeper into the site, climbing
it was the desert playing tricks on me, my over large sandstone boulders and squeez-
doubts dissipated when we rounded a cor- Giraffes, gazelles, ostriches and other animals that have not lived near Sabu for thousands of ing through cracks in the cliffside, other
ner and stopped. Surrounding us, on every years are etched into the rocks. creatures began to appear among the tra-
exposed surface of rock, were thousands of ditional animals of the African plains. One
ancient petroglyphs depicting scenes of el- River, the archaeological site of Sabu-Jaddi Beyond the sheer magnitude of drawings in particular, suddenly visible everywhere
ephants, giraffes, ostriches and boats. (or simply “Sabu”) contains more than 1 and the deep history that the site encom- I looked, stood out among the exotic: the
As the wind picked up and the sand began 500 rock drawings spanning 10 000 years of passes, Sabu also provides a detailed re- common cow. The appearance of the hum-
to blow, I stared in awe at the unexpected human history in the region. Archaeologists cord of how people lived and adapted as the ble bovid (which marks a new artistic period
scenes depicting what I would imagine have yet to determine when, exactly, the world’s largest desert began to form around in the Sahara, known by rock art historians
to see in the lush grasslands and winding ancient Nubians who lived here first chis- them. as the Bovidian Phase), while perhaps not
waterways of the Serengeti, but not in the elled these images, but one thing is for sure: The climate of the Sahara region was once as incongruous as an elephant or ostrich, is
bone-dry Nubian Desert, the eastern flank the remarkably well-preserved etchings of drastically different than it is today. evidence of an important societal shift that
of the Sahara sandwiched between the Nile hippos, crocodiles and papyrus boats depict Though the desert is generally considered was likely initiated by the changing climate
and the Red Sea. a vastly different world than the parched to be two to three million years old, during 7 000 years ago.
As an archaeologist who has worked on desert landscape that now covers much of a time known as the African Humid Period Pastoralism has remained an integral part
projects from the bottom of the Black Sea northern Africa, and offer a glimpse into the (roughly 13000-3000BC), seasonal mon- of desert life in Sudan, and several indig-
to the tops of the Rocky Mountains, it’s not Sahara’s verdant past. soons from Central Africa swept upwards, enous nomadic tribes such as the Hasania
every day that a site completely and utterly “Sabu has a large diversity of figures,” delivering ample rainfall to the northern and neighbouring Bisharin continue to roam
surprises me. However, this veritable ency- archaeologist Dr Bruce Williams said, who part of the continent. During this era, the the arid landscape herding goats, sheep and
clopaedia of petroglyphs etched in front of worked in Sudan for more than 50 years. Nile surged as it was fed by countless rain- camels in addition to their once-omnipres-
me marked a rare and exciting exception. “There are animals from early times, filled tributaries that snaked into a green, ent cows.
“Welcome to Sabu,” said my driver with a cattle from the later Kerma period (2600- fertile plain — much like the savannahs of By moving with their animals across a
smile, “where you can see how Sudan used 1450BC), boats of Egypt’s New Kingdom Kenya and Tanzania. large territory, the nomadic lifestyle has al-
to be.” (1570-1069BC), a collection of Christian pe- At Sabu, the hundreds of animal figures lowed them to persevere in the harsh de-
Hidden amongst rock outcrops between riod motifs and more that continue through that were incised into the sandstone’s sur- sert that exists where a lush savannah once
the third and fourth cataracts of the Nile time.” face are evidence of this forgotten era. This stood. — BBC Online.

!Subscribe now and enjoy amazing rates!


USD E-paper subscription rates SOURCE BOOKING MATERIAL
Duration Daily 1 month 3 months 6 months 12 months DEADLINES DEADLINES
NewsDay 0.50 9.00 25.00 46.00 85.00 Agency 1600 hours 12 noon
Zimbabwe Independent 1.00 5.00 14.00 25.50 50.00 Wednesday Thursday
The Standard 0.50 3.00 7.00 13.00 25.00 Direct 1600 hours 1630 hours
Combo 15.00 40.00 75.00 140.00 Wednesday Wednesday
USD Hard copy subscription rates
Duration Daily 1 month 3 months 6 months 12 months

NewsDay 1.00 26.00 78.00 156.00 312.00


Zimbabwe Independent 2.00 8.00 26.00 52.00 104.00
The Standard 1.00 4.00 13.00 26.00 52.00
Combo 38.00 114.00 228.00 456.00

To subscribe in the comfort of your home for credible, reliable and


exclusive news, follow link: https://amh.paynow.co.zw
Any questions? Just call our friendly subscription team and they will be more than happy to help move media to you!
Harare:
The Subscription Manager, P.O. Box 10460 Harare
No. 1 Union Avenue Building, 1 Kwame Nkrumah Avenue, 3rd Block 1st Floor
Tel: (024) 755373/4, 773930-8 Cell: 0773 207437 / 0737 185178
Email:subscriptions@alphamedia.co.zw

Bulawayo:
1st Floor Amtec Building, Cnr 12th Avenue & R. Mugabe Way, Bulawayo | Tel: (029) 883184/9

Here are the places where you can pay to activate your subscription! NOSTRO accounts:
Account No: 9140001034765 - FCA Domestic
Account No: 9140001034757 - FCA Export
X4 ZIMBABWE INDEPENDENT XTRA JULY 17 TO 23, 2020

SPORTS NEWS

Lewis Hamilton sets sights


on records, racial justice
FOUR days after one of his most consum- landmark of claiming eight at the same Red Bull's Max Verstappen seeks to end
mate and memorable triumphs, Lewis Grand Prix. Mercedes' winning start to the Covid-19
Hamilton returns to one of his favourite cir- Schumacher reeled off eight triumphs at delayed season and prevent the cham-
cuits this weekend with more than another the French Grand Prix, at MagnyCours, be- pion team completing a season-opening
Formula One record in his sights. tween 1994 and 2006, a feat that Hamilton hat-trick.
As he prepares for the Hungarian Grand hopes to emulate. The Dutchman came home third behind
Prix at the tight and twisty Hungaroring "Whenever I am reminded of the records Hamilton and his Mercedes team-mate
circuit, 25 kilometres north of Budapest, that Michael had, it's just still mind-blow- ValtteriBottas, who won the season-opener
the six-time world champion will draw on ing to me," said Hamilton when he looked at the Red Bull Ring, on Sunday and admit-
his experience and his momentum as he ahead to the Budapest weekend following ted he did not have the outright speed to
pursues twin goals of a seventh drivers' ti- his victory at the Styrian Grand Prix last match them.
tle and making lasting progress in the global Sunday. His team boss Christian Horner, how-
anti-racism campaign for equality, diver- "I have always loved it, Hungary, Buda- ever, believes Red Bull can close that gap at
sity and justice. pest and Montreal you would probably say the slower Hungaroring, but Verstappen is
Hamilton has enjoyed seven previous have been my strongest so I'm excited to less certain. Lewis Hamilton raised a fist in support of the
victories in Hungary and on Sunday can go back — it is a track where the Red Bulls "I don't know," he said. "But, for sure, I Black Lives Matter movement after this win on
draw level with Michael Schumacher's usually do well so it's not going to be easy." hope it's going to be better." — AFP. July 12.

Van Dijk takes blame


for Liverpool’s defeat
VIRGIL van Dijk accepted the blame for Liv-
erpool's error-prone defeat at Arsenal which
ended the Premier League champions' chances
of breaking Manchester City's 100-point record.
Van Dijk lost possession on the edge of his
own box for Alexandre Lacazette's equaliser,
before goalkeeper Alisson gave the ball away as
Reiss Nelson completed the scoreline before half
time.
"A present," Van Dijk said. "Until their first
goal, it was totally us. We gave them two goals.
Until then there was nothing wrong. We played
very well, pressed them, scored a fantastic goal.
"I made a mistake. I take the blame for it. I
take it as a man and we move on."
Graeme Souness had accused the champi-
ons of being "in their armchairs", saying on Sky
Sports: "This is not Liverpool. We've not seen
Van Dijk make a mistake remotely like that in
two years."
Van Dijk countered: "It's too easy to say that,
to blame that. If you watch the game, until I
made a mistake, there was nothing wrong. But if
you give them the goals, you see what happens.
"Being champions of the Premier League
already is a dream come true. Tonight is a dis-
appointment. This is the life of a footballer
sometimes. You can win and be the hero. Some-
times you can be the villain. Today I made a
mistake and I take full responsibility."
Asked if he was disappointed that they cannot
reach 100-plus points, Klopp said: "No. I cannot
make a negative of something so positive — be-
coming champions." — Daily Mail.

England’s Archer ruled


out of West Indies Test
England paceman Jofra Archer (pictured) was on
Thursday ruled out of the second Test against the
West Indies for breaking coronavirus "protocols",
giving the home side a major headache as they
seek to level the series.
Both teams have been living in "bio-secure
bubble" sites at the Ageas Bowl, the venue for
last week's first Test, and Emirates Old Trafford,
where the final two matches of the series will
take place.
Sussex fast bowler Archer broke the rules by
going home to Brighton on Monday following the
end of the first Test, before the team travelled up
to Manchester. His removal from the squad was
announced just three hours before Thursday's
scheduled 10.00 GMT start in Manchester. He
apologised for putting his teammates in "danger"
and will now undergo five days of self-isolation.
"I am extremely sorry for what I have done,"
Archer, who played in last week's first Test, said
in an England and Wales Cricket Board state-
ment. "I have put, not only myself, but the whole
team and management in danger. I fully accept
the consequences of my actions, and I want to
sincerely apologise to everyone in the bio-se-
cure bubble."
Archer, who had been retained in the squad
while fellow quicks James Anderson and Mark
Wood were rested, will need to test negative
twice for Covid-19 before his isolation period is
lifted. — AFP.
BusinessDigest
Zimbabwe INDEPENDENT

july 17 to 23, 2020 www.theindependent.co.zw

World African Markets


Name
JSE ASI
Price (US$)
55,974
% Change
+0,14
FTSE/JSE Indices
Name Price (US$)
S&P 100 1,490,35
% Change
+0,44
Other indices
Name Price (US$)
FTSE All World (Exc US)
% Change

Markets NSE ASI 131,90 -1,86 S&P 500 3,226,56 +0,91 Russell 1000 1,789,72 +1,04
EGX 30 10,617,42 -4,59 Nasdaq 100 10,701,68 +0,11 Russell 2000 1,478,27 +3,50
NSGE 24,130,26 0,61 DJIA 26,870 +0,85

ZSE trading suspension


Melody Chikono

CHAOS is looming in the insurance and


pensions industry over the government’s
decision to suspend trading on the Zimba-

riles pension industry


bwe Stock Exchange (ZSE) and delist Old
Mutual Limited. The sector could fail to ac-
cess funds to settle claims and benefits of
clients, posing an existential threat to the
country’s interlinked financial, insurance
and investment sectors.
As history has shown, whenever the
markets are disturbed, pensioners and in- largely used as a currency hedge or a store
surers always come out the worst. of value by Zimbabwean investors.
Investment analysts from the Invest- This status will not change post-migra-
ment Professional Association of Zimba- tion to a US dollar exchange.”
bwe (Ipaz) said government’s decision The analysts argued that investors that
could be very damaging in the long run, as are holding Old Mutual Limited shares are
stakeholders will not be able to access their attracted to the qualities that only a multi-
funds. listed company can offer.
Economic commentators say coun- Further arguments are that if indeed Old
tries that do not develop a solid frame- Mutual Limited was being used by certain
work for the respect of property rights for individuals, syndicates or corporates to il-
both physical and intellectual property are licitly manipulate the markets or the ex-
bound to face difficulties in attracting fresh change rate as alleged by government of-
capital. ficials, then would it not have been more
“Property is illiquid relative to shares, so prudent to gather such evidence and pros-
from a liquidity perspective shares are the ecute those entities rather than suspend
most important asset for most institutions. the market? Any perception of blanket ac-
Pensioners rely on monthly lump-sum tion or collective punishment undermines
disbursements from their pensions whilst investor confidence.
insurance companies have to pay claims “The exchange rates therefore reflect
and benefits to their clients. Closing the economic fundamentals at any point in
market means that all these stakeholders time. With the current premium that Old
cannot access their funds. Where will pen- Mutual Limited shares trade at on the ZSE
sion funds and insurers get money to pay against the Johannesburg Stock Exchange
their clients if the market is closed indefi- and the London Stock Exchange, if fungi-
nitely?” Ipaz asked. bility was permitted, the premium would
Pension funds and insurance companies Pension funds and insurance companies constitute arguably the largest pool of institutional investors disappear as investors bring stock in from
constitute arguably the largest pool of in- holding assets on the ZSE. the JSE and LSE to sell on the ZSE. Old Mu-
stitutional investors holding assets on the tual Limited has traded at big discounts for
ZSE and, according to the Pensions Indus- On the other hand, the analysts said rec- chaotic. It is unknown how long it will take long periods of time during the US dollar
try Report of March 31, 2020, out of a total ommending the establishment of a separate to establish another exchange and whether days when its role as a currency hedge was
asset base of ZW$29,8 billion, investments US dollar-based bourse for companies like the new exchange would function any bet- not required because foreign currency was
in equities made up 35,3% of the industry’s Old Mutual Limited may see local inves- ter than the ZSE. Meanwhile, shareholders available through the banking system,”
assets. tors rushing to dispose of shares in favour that require liquidity cannot sell. “Share- Ipaz said.
Together with investment property, of holding US dollar cash, which could be holders and investors in general are the Meanwhile, in his mid-term budget and
these two asset classes constitute 82,7% detrimental to the country. In the long ones who stand to gain or lose from such review statement yesterday, Finance min-
of all assets, due to their capacity to hedge run, the shares would end up mostly in the a decision to de-list their shares from the ister Mthuli Ncube remained mum on the
against inflation. hands of foreigners rather than locals. ZSE, hence procedurally such a decision issue but reiterated that the government
Value chains on the ZSE that could be “We currently don’t have a US dollar- should be subject to a special resolution by was forging ahead with establishing the
the worst affected include life companies, only market, so to propose that Old Mutual members in a general meeting. Migrating Victoria Falls Security Exchange (VFEX) as
pension funds, short-term insurers, stock- be re-listed on a yet-to-be-established ex- to a US dollar exchange is unlikely to serve part of efforts to develop the financial ser-
brokers, asset managers, custodial service change whose modalities, rules, efficiency any purpose for Old Mutual Limited share- vices sector through the provision of op-
providers and banks. and viability are unknown could prove holders. Old Mutual Limited shares are portunities for global investment.

Listing on the Financial Securities Exchange (FINSEC)


FINSEC is an agile securities exchange that was born out of a financial inclusion drive which is meant to demystify the Equally, investors and issuers benefit from greater visibility trading of securities.
need to provide seamless issuance, trading and settlement of notion that securities trading is complicated and meant for and increased liquidity. At FINSEC, we understand the dynamics of the ever
a wide array of financial instruments, most of which have the elite. There are various avenues for potential issuers to join the changing capital market industry hence we are continuously
remained isolated from the capital markets. Our platform The exchange operates four trading boards namely FINSEC official list. One such way is listing by introduction developing our systems and products to meet these
allows issuers to raise capital in an efficient, transparent and Equities Board, Fixed Income Board, Mutual Funds and (LBI) which allows a company to apply for listing without the dynamics. In fact, there are very exciting projects for both the
cost effective way, while investors benefit from multiple and Alternatives Board. The Equities Board is available for the conduct of an initial public offering (IPO) prior to the initial Capital Markets and Financial Institutions (FIs) that FINSEC is
convenient delivery channels that are anchored on cutting listing of various classes of equities. The Equities Board is listing of the company's securities on the trading board of working on, as it further makes its mark in Zimbabwe's capital
edge technology that is unmatched. FINSEC. It applies to an application for listing of securities that market. We will be making announcements of these
further divided into Main Equities Segment for high cap innovations soon.
Registered by the Securities Exchange (Alternative are already issued or securities that will be issued upon
issuers and the SME Segment for Small to Medium listing, where no public offering will be undertaken. To enjoy all these benefits, kindly visit the FINSEC website
Trading Platform) in terms of section 30 of the Securities & Enterprises. The segmentation of the FINSEC Equities Board is
Exchange Act [Chapter 24:25], as read with the Securities The other way is by initial public offer (IPO), which is a and download the FINSEC Issuer Admission Rules. The FINSEC
meant to broaden and deepen the Zimbabwean capital method generally used by new, medium and large firms that listing rules are by design, simple and straightforward and are
(Alternative Trading Platform) Rules, S.I. 100 of 2016, FINSEC
provides and maintains a marketplace and facilities for market by introducing solutions tailor made for the needs of are looking for funds to grow and expand their businesses. continually reviewed and updated to ensure they remain
bringing together buyers and sellers of various financial various classes of corporate entities of the economy. relevant and appropriate to the various classes of securities
The technology that FINSEC uses automates the entire IPO that can list and trade on our trading boards.
securities. Our principal modus operandi is providing a The Fixed Income Board is available for the listing of processes in a way that ensures efficiency, transparency and
trading platform that does not set rules for participants or bonds and other fixed income securities. The system allows accountability. FINSEC takes pride in being one of the first
discipline or seek to control them other than by excluding The Financial Securities Exchange (FINSEC) is a member of the
automated issuance, trading and price calculation of fixed exchanges in the world to offer mobile IPO of a corporate Escrow Group which has interests in the financial services and
them from trading. income instruments. Admissable instruments range from
FINSEC is focused on pushing the boundaries in capital bond. technology sectors. Corpserve Registrars and Escrow Systems
debentures, medium term notes through to municipal and Among other benefits, FINSEC provides a regulated are the other members of the group.
market developments by providing alternative means of corporate bonds.
raising capital to companies including start-ups, Growth market place with standard rules and a central settlement
Enterprises, government institutions, municipalities and The Mutual Funds & Alternatives Board is for other infrastructure operated by licensed custodians who will For more information contact:
corporates. Our delivery channels include everyday simple complex financial instruments such as mutual funds, independently hold cash and securities ahead of each trade 2nd Floor ZB Centre, Cnr Kwame Nkrumah and 1st Street
and user friendly gadgets such as mobile phones, mobile Exchange Traded Funds (ETFs), Unit Trusts and other to facilitate uncompromised delivery and payment. The Harare, Zimbabwe
wallets and online and mobile platforms such as USSD and Derivatives. The admission of mutual funds and alternatives FINSEC platform connects all licensed securities dealers in Tel: +263 4 758193
SMS that enable investors to buy and sell securities from the on FINSEC provides investors with access to an enhanced Zimbabwe who will be able to collect and post sell and Email: info@finsec .co.zw
comfort of their homes or offices. This is in line with our purchase orders on an open board thereby allowing for www.finsec.co.zw
transparent, efficient and orderly secondary market trading.
automated real-time multilateral price discovery in the Twitter: @FINSECZim
2 Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020

COLUMN

Zimbabwe
Economics Society

Zim must invest in technology


Romeo
Msemburi
Economist

ZIMBABWE, as a developing economy, is


lagging behind in terms of technology.
The business sector is feeling the ef-
fects of the gap between the local level
of technology and global technology.
Covid-19 has been an eye opener and a
reminder that the country must invest in
technology.
An estimated 42% of the Zimbabwean
economy is in the informal sector, which
is generally less digitised. Covid-19 has
exposed glaring shortcomings.
Covid-19 poses serious threats to the
entire globe and has seen most econo-
mies shrink.
The pandemic, like all crises, has
brought about both threats and oppor-
tunities. Looking at the education sector,
the country’s glaring technological short-
comings have been exposed. The inabil-
ity to provide access to online learning
has affected the country. Even webinars,
which in developed nations are relatively
easy to organise, have created difficulties
in the Zimbabwean workplace. This is a
great threat to human capital develop-
ment as learning is being inhibited. In this
fast-paced environment where modern
civilisation is extremely dynamic, it be-
comes a wake-up call to drive the econo-
my to broader digitalisation.
For small and medium-scale (SMEs)
enterprises, we have observed that dur-
ing this Covid-19-induced economic de-
cline, great losses have been incurred.
Most of these SMEs had prospects for
employment creation but now the reality
of retrenchment is inescapable as most
businesses are downsizing.
This is a great lesson to most SMEs. They
are finding it difficult to grab the opportu-
nities created by Covid-19. During such a
global pandemic, there is a quest for lo-
calised solutions. Zimbabwean SMEs have
failed to utilise these opportunities, ow-
ing to limited technological advancement.
In this current economic environment,
SMEs ought to constitute the foundation
for employment creation, attainment of
upper middle-income economy status
and growth. Domestic investment stimu-
lates foreign direct investment (FDI) and
SMEs are the bedrock of domestic invest-
ment hence the dire need for the neces- The Posts and Telecommunications Regulatory Authority of Zimbabwe (Potraz) should open the sector to global competition, allow internet
sary infrastructure to digitalise the SME service providers to invest in Zimbabwe.
sector.
Technological enhancement provides interaction. production. through allowing for competition.
a sound environment for conducting A digitised economy enhances the ease Learning from Silicon Valley in the Properly regulated, through Potraz,
business. Where previously people had of doing business. Where it would ordi- United States, we can empower young digitised platforms are an easy way to
to gather physically, technology enables narily take nine to 12 working days to reg- people and create employment. Thus if collect taxes as a revenue base for the
them to meet virtually. This comes with a ister a business, technology can cut down fully explored we can reap the benefits government. In a way, they curb corrup-
cut in operational costs and an increase in that time. It lessens the required modali- such as online retailing, virtual music tion as well, because digitised processes
profit, hence improving the effectiveness ties and processes for operating a business concerts, pay per view opportunities are well-documented and this fosters
and efficiency of businesses. in Zimbabwe. There is more value attained whereby you upload or livestream a vid- transparency.
Most local corporates, compared to and it can contribute to economic growth. eo online through social media platforms Data collection and documentation for
their competitors abroad, are extremely This would attract investors, both do- and get paid. This would not only create policy formulation and implementation
lagging behind in terms of technology, mestic and foreign, as it would be easier employment but also be a source of for- are ramped up that way. What is needed
exposing them to fierce competition. Ser- to do business in Zimbabwe without the eign currency. is the infrastructure to support those ben-
vice provision is expensive as the gap be- complications of time lag. It would aid in To attain this, the country requires the efits that are accrued from the optimal
tween the local and global level of tech- instilling investor confidence, which is public and private sectors to revamp in- utilisation of internet and digital services.
nology increases the cost of production crucial for steering the economy towards frastructure and enhance access to af- This is a sector that calls for real invest-
and passes the burden on to consumers. A growth. fordable technological facilities. In Zim- ment into the country as it possesses
regional and global comparison in terms Foreign direct investment is essential babwe, we are followers of technology business potential and prospects for eco-
of technology would aid in assessing the for fuelling the economy towards growth. and not leaders. As such, there is no need nomic growth.
need to revamp the infrastructure in Zim- This would lead to infrastructural devel- for “first mover” advantage as it creates In a nutshell, Covid-19 has been an eye-
babwe and make accessibility affordable. opment, employment creation and broad monopolistic tendencies that inhibit the opener in the manner it has opened up
Digital transformation is unavoidable. revenue for the government. full harnessing of technological benefits. vast opportunities through digital trans-
Business survival will depend on it. In- In the 21st century, we talk of “the in- The Posts and Telecommunications formation. There is a need for public-
stead of focussing on retrenchment strat- ternet of things”; it is derived demand for Regulatory Authority of Zimbabwe private partnerships in the sprucing up of
egies, it would help to pay attention to white goods in the economy once the in- (Potraz) should open the sector to global internet infrastructure in Zimbabwe. This
investment in technology as this would frastructure is made available. This could competition, allow internet service pro- would enable us to explore the immense
aid in employment creation and low- be a sector that attracts a lot of investors viders to invest in Zimbabwe. As a regula- benefits that anchor economic growth.
er the cost of doing business. This is the who manufacture white goods. tory body, it must preserve the country’s
chance for our corporates to match the The provision of internet infrastructure integrity. Msemburi is an independent economist. These
global competition as we are having ar- can lead to the creation of a special eco- It is time we did away with the monopo- weekly New Perspectives articles are co-ordi-
tificial restrictions on trade through lock- nomic zone which would be a technology listic and oligopolistic tendencies that we nated by Lovemore Kadenge, immediate past
downs. Provision of infrastructure is the hub. This would create plenty of oppor- see in internet provision locally. Internet president of the Zimbabwe Economics So-
key to economic prosperity in an envi- tunities for unemployed youths through should be provided at an affordable price ciety. — kadenge.zes@gmail.com or mobile
ronment of less direct human-to-human the technological links in the chain of to all parts of Zimbabwe. This can be done +263 772 382 852.
Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020 3

Business Nerve
Are you an enterprenuer with
big plans?
EY helps entrepreneurs think big, grow rapidly and
Center
thrive in a challenging environment. Discover how you can build a better
For more information about the EY Business Accelerator
Programme, please email: businessaccelerator@zw.ey.com
working world.
Visit ey.com/zw

Mental Health Care as a Business


Case in the Virtual World
that are up for the challenge. In order not to jeopardize
their job, most will overlook the mental health issues,
even if they recognise that they have a problem. An
unchecked and untreated mental health issue has long
term consequences on the employee’s psychological and
physical wellbeing, and also on their career.

Mental Health Care as an investment


Mental health care is a phenomenon that organisations
are now waking up to and need to emphasise in wellness
initiatives. It should be viewed by both the employer
and the employee as a necessary investment worth the
time and cost. Organisational practices, culture and
programs should demystify the misconceptions around
mental health issues by offering a non-judgemental and
supportive environment to all. This could include:
1. The Employee Assistance Program which includes
a health plan offering support to employees and
connecting them with behavioural health specialists
if need be.
2. Employees should be allowed time off to attend
clinical appointments.
3. The Learning and development functions should
encourage employees to engage in online learning
to create a distraction whilst sharpening their
knowledge and skills.
4. This applies to all organisations working virtually
or not. When mental health issues are adequately
addressed this alleviates symptoms and improves
The World Health Organisation (WHO) tells us that an mental health issues in the workplace maybe different productivity.
estimated 264 million people suffer from mental health from those in other situations. Mental health issues
issues worldwide. Mental health issues can be defined symptoms come in stealth mode, but the impact is When working virtually, individuals need to make
as a wide range of mental conditions that affect mood, definitely tangible. investments in their own mental health and well-being.
thinking and behaviour to the extent of impairing one’s According to the Harvard Medical School commonly When virtually working from home it is important to set
ability to carry out daily activities and relate to others. As experienced mental health conditions by the working boundaries that separate work from home life as there
such, for as long as people are present in the workplace, population are depression, anxiety, bipolar disease which is a danger of work life dominating the other. A few
then so too is the presence of mental health issues. is a cycling between elevated and depressed moods recommendations to help virtual workers safeguard their
However, these issues have often been overlooked (mood swings), and Attention Deficit Hyperactivity mental health:
because they are non-visible conditions; meaning they Disorder (ADHD). 1. Designate a comfortable space in the home to work
cannot be readily seen and are not easy to detect. from, not an easy feat considering that most homes
An increased interest in employee wellness, and the These conditions manifest themselves in nervousness, do not necessarily have home offices.
mandated remote working as a result of Covid-19, has restlessness, concentration difficulties, irritability, and 2. To avoid burn out, set clear working hours and
amplified the focus on mental health issues. excessive worrying. They may also show in ways that ensure that colleagues are aware of these.
may be viewed as competence or performance issues 3. The working day should have a start and end, just
Conditions in the workplace fostering mental health such as inability to make decisions, failure to meet like in the traditional office.
issues deadlines, inability to manage workloads, problems 4. When clocking out, all devices used for work should
Work is good for mental health, but a negative working executing instructions, arguments with co-workers and be switched off, and one should literally leave the
environment can be a source of mental health problems. being disorganised. home office to mark the end of the working day.
No working environment is exempt from mental health 5. Incorporate social interaction breaks such as virtual
risks, and everyone within the workplace is a candidate The physical symptoms include fatigue due to low mood coffee break with a friend or family in the daily
for mental health problems. Whilst some people are or inability to sleep peacefully which will show in lack routine will alleviate loneliness and feelings of
naturally predisposed to mental health problems through of energy, consistent aches and pains – be it headaches isolation. Also check in with team mates to find out
hereditary means, others develop them from their or back pain, hypertension, gastrointestinal distress and how they are doing workwise and personally.
interaction with, and reaction to the environment around heart trouble to mention a few. 6. Include exercise in the daily routine, and endeavour
them. to have a good night’s sleep will also help.
Impact of Mental Health Issues
Workplace conditions such as inadequate health and Most of these symptoms may either go unnoticed or Mental health care may attract an initial cost to both
safety practices, poor communication and management misinterpreted in the workplace as the focus tends the employer and the employee, but in the long term,
practices, limited participation in decision making to be on deliverables and meeting performance healthier employees are productive employees, and that
affecting one’s area of work, low levels of support expectations. Virtual working has separated work
for employees, lack of role or task clarity, unclear teams thus compounding the situation as individuals has a positive effect on the company’s financial health.
organisational objectives, lack of team cohesion, work in isolation, but the economic effect is definitely
workplace bullying and psychological harassment are tangible. For organisations the most common effects
amongst some of the conditions that contribute to, are lost productive time as a result of abseentism, low
or trigger mental health problems in the workplace productivity even though an employee maybe present
environment. Some of these conditions have been (presenteeism), high accident rates and errors in one’s
transferred to the virtual workplace. work due to lack of attention to detail.

Virtual working has brought in some interesting dynamics On an individual level, the employee’s career may suffer
to the conversation around mental health . To some it has if the manager or supervisor fails to decode that an
provided much desired flexibility and mental wellbeing, employee’s behaviour or performance is a manifestation
while to others it has created challenges and inflicted of a mental health condition - and a call for help. There
discomfort. Naturally man has his sense of wellbeing and is a good chance that employees themselves may not
belonging reinforced by being in a community. Virtual recognise that there could be an underlying issue.
working has posed the risk of loneliness and isolation for Employees with mental health issues maybe disciplined
those living alone, not to mention burnout. for their behaviour or work problems and even left out
of work projects. Additionally, they could have their
Anne Madara
In the traditional work setting there is enforced chances of progression or promotion affected, which
adherence to working hours as people need to travel to would translate to them earning less money than their
and from home. This creates the divide between work peers as they may be deemed a poor performer. The
life and home life which enables people to have times chances of such individuals being managed out of the To find out more contact Anne Madara, Talent Assistant
to rest their minds. When home becomes the office, the organisation’s system tends to be very high. Manager on:
Email: anne.madara@zw.ey.com or eymarketing@zw.ey.com
boundaries are blurred considerably. It becomes difficult Address: Angwa City Building, Corner Julius Nyerere Way/
to separate home and work life, especially marking when Why do employees not come out in the open about Kwame Nkrumah Avenue. P O Box 62, Harare, Zimbabwe.
work starts and finishes. Long working hours are put in mental health issues? Tel: +263 4 750905/ 750979
either to meet tight or unrealistic deadlines, or as an Most of the working population do not come out in the This article was compiled by EY as a source of general information
escape from loneliness. open or admit to themselves that they have a mental and notification and should not be construed as a formal
health issue because of the stigma generally attached professional/legal opinion. Although reasonable skill and care
Symptoms of Mental Health Issues to it. In a work setting the majority of the working is taken when providing information, EY offer no warranties or
representations as to the information’s accuracy. The information
Mental health issues tend to be non-visible, but they population do not seek social support and treatment as provided is not intended to replace the need for an expert/ legal
manifest in a variety of visible physical and psychological they fear being viewed as a failure or incompetent. Most opinion on interpretation, application and consequences of the
symptoms. It is important to note that symptoms of work settings reward high performers and individuals relevant legal, technical or regulatory provisions. E Y does not
accept responsibility for any loss or damage you or any third
party may suffer as a result of utilising the information provided.
4 Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020

LOCAL BUSINESS

Attack on Old Mutual casts a dark cloud


TATIRA ZWINOIRA muscle alone is helping these entities com-
bat the highly unstable economy.
THE attacks by government against Old Mu- “Obviously, it (delisting Old Mutual) will
tual Zimbabwe, a subsidiary of pan-African be seen extremely negatively by foreign in-
investment, savings, insurance, and bank- vestors. After all, the trading in Old Mutual
ing group Old Mutual Limited headquar- shares has nothing to do with Old Mutual
tered in South Africa, has cast further doubt the underlying company, that is the shares
about the country’s suitability for investors. traded in the market are normal as are the
The government suspended trading of other listed companies,” Imara Capital Zim-
stocks on the Zimbabwe Stock Exchange babwe (Pvt) Limited chief executive officer
(ZSE) last month and is now targeting del- Mark Tunmer said.
isting Old Mutual from the main bourse. “Basically, Old Mutual as an underlying
But, removing Old Mutual from the ZSE listed company certainly isn’t responsible
would remove ZW$5,26 billion on the main for how the shares are traded or the price at
bourse as it has a total market capitalisation which the shares are traded so it’s not fair
of ZW$228,87 billion. to be singling out Old Mutual the company
Old Mutual is being targeted because of because as I said it has no control over how
the Old Mutual Implied Rate (OMIR), one of its shares are traded. Obviously, the con-
the few gauges of the Zimbabwe exchange cern is if it’s Old Mutual this week, who will
rate, which is calculated through comparing it be next week? This is a concern not only
the price of Old Mutual Limited shares in the for foreign investors, but also for domestic
United Kingdom, South Africa and locally. investors.”
With the government controlling the of- Another reason why the move could have
ficial exchange rate at the time, the market a significantly adverse impact on Old Mu-
was forced to use Old Mutual Limited shares fore, a reflection of these conditions, not the local currency. tual Zimbabwe is that since August 2017 the
to gauge the accuracy and value of the Zim- cause as the government seems to think.” There is no direct relation between Old company has pursued an equity strategy of
babwean dollar. Even shares of PPC and Seed Co Inter- Mutual Zimbabwe and the local unit. increasing its assets through equities.
As such, the attack on Old Mutual Zimba- national, which have dual listings outside But, where there is a relation is in the gov- This was because of inflationary pres-
bwe is significant in that the company has Zimbabwe, are used to determine the local ernment’s threat to delist Old Mutual Zim- sures, concerns over the sustainability of
nothing to do with the OMIR, but is being currency’s value. babwe and future investment which has the budget deficit, coupled with low interest
targeted. According to American financial and eco- made investors scuttle to leave the market. rates and unstable currencies such as bond
“The ZSE is one of the few sites where nomic literacy website Investopedia, currency These investors were already trying to notes and more recently the Zimbabwean
there has been persistent foreign interest prices are determined by either a floating or leave amid growing economic woes caused dollar.
even during the ongoing economic diffi- fixed rate. by government policy failures, hyperinfla- “After all, the share market is one of
culties. Now the regime has shut it down,” “A floating rate is determined by the open tion, declining consumer spending and thus the largest market holders of institutional
United Kingdom-based legal scholar Alex market through supply and demand on low economic activity, weakening local wealth in Zimbabwe and when l say insti-
Magaisa said in his blog on Tuesday. global currency markets. Therefore, if the currency, declining trade, and acute short- tutional wealth obviously I am primarily re-
“But why is the regime behaving so coun- demand for the currency is high, the value age of foreign currency. ferring to pension funds, that is the savings
ter-intuitively? One reason is that the gov- will increase. If demand is low, this will And if Old Mutual Zimbabwe leaves the of formal employment and insurance com-
ernment relies on scapegoating as a strategy drive that currency price lower,” Investopedia market, this could further scare away more panies. So the share market is an extremely
to deflect criticism for its failures. The latest said in a September 2019 article. investors. Foreign direct investment into the important source of the preservation of the
scapegoat is big business, hence the target- “A fixed or pegged rate is determined by country has plummeted from US$717 mil- wealth of the nation,” Tunmer said.
ing of Old Mutual and EcoCash. But these the government through its central bank. lion in 2018 to US$259 million last year The government, through the ruling
companies are not the problem." The rate is set against another major world “We are not trading at the moment. We Zanu PF, has suggested creating a foreign
Magaisa pointed out that government is currency (such as the US dollar, euro, or have not finalised anything yet. We are still currency-denominated stock exchange to
barking up the wrong tree, accusing the fi- yen). To maintain its exchange rate, the gov- talking to the government and our regulator militate against Old Mutual Zimbabwe being
nancial institution for the rapid freefall of ernment will buy and sell its own currency on how we are going to come out of this (lift- delisted.
the local currency. against the currency to which it is pegged.” ing the suspension of trades on the ZSE),” But, with the currency depreciating daily,
“Take, for example, the charge against In the instance of a floating rate, there ZSE chief executive officer Justin Bgoni told companies will be left with very little op-
Old Mutual; the government thinks the Old needs to be demand for a currency which is businessdigest on Wednesday. portunity to buy significant amounts of for-
Mutual Implied Rate (OMIR) is causing the a function of market confidence. And for a And when pressed on the attacks on Old eign currency to trade.
crash of the beleaguered Zimbabwean dol- fixed rate, like the one in Zimbabwe, there Mutual Zimbabwe, Bgoni said: “Negotia- Further, if investors are already leaving,
lar, which was re-introduced ill-advisedly needs to be a significant amount of a more tions are ongoing and we have nothing that the idea of attracting foreign investment will
last year. But the OMIR simply tracks the stable foreign currency to be used to back is finalised. My concentration at the mo- be very difficult as the government has re-
price difference in Old Mutual’s shares, the local one. ment is to get the market suspension lifted peatedly shown it has no respect for prop-
which are listed on more than one ex- As a result, due to the Zimbabwean dol- so we will be putting effort there.” erty rights.
change,” Magaisa said. lar lacking significant market confidence The targeting of Old Mutual Zimbabwe has An example of this is when the govern-
“A stock market is a market for shares, or foreign currency the rate of the currency a devastating impact on the economy be- ment adopted the local currency last year
just like the vegetable market is a market for cannot be determined through the tradi- cause it is arguably the biggest institutional and wiped out more than US$7 billion in
vegetables. The price of shares responds to tional means. investor in Zimbabwe and, as a result, could its domestic debt or when the government
conditions in the economic environment. This has led market experts to come up have a domino effect on other stocks. Fur- ruled that US dollar debts before February
These conditions include exchange rates. with comparative aggregators such as Old ther, Old Mutual Zimbabwe is a shareholder 22, 2019, could be settled as local currency
Movements in the share price are, there- Mutual Limited shares to properly value the in a majority of local firms and banks whose at 1:1 parity early this year.

ZPI to prioritise de-risking ZSE trades settled: CSD


THE Chengetedzai Securities Deposi- the ZSE issued a notice indefinitely sus-
Melody Chikono “On the Zimre lodges project we have advanced tory (CSD) says it managed to settle pending trading on the market. The CSD
in terms of local authorities requirements. What all outstanding trades executed on the has been able to settle all outstanding
ZIMRE Property Investments (ZPI) says it is pri- is outstanding is the actual issuance of the per- Zimbabwe Stock Exchange (ZSE) before trades executed on the ZSE before the
oritising de-risking its portfolio, diversification, mit then we proceed to construct. The question the abrupt suspension of the bourse and suspension in accordance with the CSD
growth and payment of dividends to shareholders is why move in now when we are saying there now awaits further information regard- Business Processes and the normal set-
while remaining true to the company’s founding is a blood bath? The long-term for us is clear, we ing the resumption of trading on the tlement cycle,” he said.
values. believe there is going to be significant upsurge in stock market. The bull run that started in the month
De-risking refers to the practice whereby fi- tourism in Victoria Falls,” he said. At the end of June, government issued of May continued into the month of June,
nancial institutions cut relationships and close “We have also spoken to the ZSE in relation statements announcing the introduction with ZSE equities market capitalisation
the accounts of clients perceived to be high risk. to legislation of Reits (Real Estate Investment of restrictions on mobile money services growing by 49,77% to ZW$228,5 billion
Without a proper de-risking strategy in place, Trusts). We think that it is significant in terms and suspension of trading on the ZSE. from ZW$152,6 billion as at the end of
one could end up losing hard-earned goal-based of funding. We are also allowing participation of Subsequently, the ZSE issued a notice May 2020.
capital at the penultimate moment due to market the general public. On the Bulawayo one we are indefinitely suspending trading on the Market value of the securities placed
fluctuations. looking at 954 beds that are big on the market,” market. on the CSD also recorded a significant
ZPI’s property portfolio performance in the Muvingi said. CSD chief executive Campbell Musi- increase of 49,26% to ZW$106,56 billion
six months to June 2020 resulted in the central “We are following as a model of a real home wa, in a June 2020 update, said there from ZW$71,39 billion as at May 31, 2020.
business district offices contributing ZW$4,750 where the students can cook and so on. We are were no new listings on the ZSE during On the other hand, dematerialised
million (31%) with 88% occupancy levels, while confident that we are going to perform well and the month under review with the number securities accounted for 46,67% of the
pure retail contributed 59% at ZW$9,08 million the strategy that we have been living since we of securities listed on the ZSE remaining ZSE equities market capitalisation as at
at 10 % occupancy level. started from July 2007 is the same that we are still unchanged. June 30, 2020 with the average demate-
Residential was the lowest, contributing 1%, living. We are looking at diversification, growth “The planned listing of the exchange’s rialisation penetration ratio (demat ratio)
although occupancy was 100%. and de-risking of our portfolio, as well as paying first Exchange Traded Fund (ETF) is yet across all counters remaining at 45% as
During the company’s annual general meet- dividends to our shareholders.” to materialise following delays due to at June 30, 2020.
ing on Tuesday this week, ZPI managing direc- Preliminary work on the 954-bedsitter student the Covid-19 pandemic. On 26 June The ZSE equities market turnover
tor Edson Muvingi said although there has been a facility, being constructed at an estimated cost 2020, the Secretary for Information and recorded another substantial increase
“bloodbath” due to Covid-19, especially in Victo- of US$9,8 million, is expected to commence in Broadcasting Services issued a state- to ZW$1,894 billion for June 2020 from
ria Falls, it was forging ahead with its plans. the fourth quarter of 2020, as plans have already ment announcing the introduction of ZW$569,25 million achieved in May
Besides the newly completed Sawanga Mall been approved . restrictions on Mobile Money Services 2020. This saw the cumulative number
in Victoria Falls, ZPI is now working on Zimre Muvingi said the estimated construction time is and suspension of trading on the ZSE. of trades processed in 2020 closing the
Lodges project in the same resort while it is also 18 months and the project will take in the form of Subsequently, on the 29th of June 2020, month at 23 795. — Staff Writer.
pursuing the Selborne student hub in Bulawayo. a Reit of property fund structures.
ZIMBABWE INDEPENDENT BUSINESS DIGEST JULY 17 TO 23, 2020 5

MEMORY NGUWI

9. WHAT’S Wrong with Job Interviews, and How to


Fix Them by Adam Grant (https://globalleadership.
How you can hire the best talent (III)
org/articles/leading-organizations/whats-wrong- Once talent has been hired, the next ques-
job-interviews-fix-adam-grant/?locale=en) tion is on how to retain them. Once you get
In this article, Grant looks at the interview the best talent, you can invest in the reten-
methods for selecting employees. As you tion of these people knowing that you did
may be aware, the interview is one of the get the best and they will give you the best
most popular selection methods but it has value. There is no point in investing in reten-
terrible shortcomings, which are clearly ar- tion strategies to retain people who do not
ticulated by here: add value to your business.
“Interviews are terrible predictors of job
performance. Consider a rigorous, com- Nguwi is an occupational psychologist, data scien-
prehensive analysis of hundreds of studies tist, speaker and managing consultant at Industrial
of more than 32 000 job applicants over 85 Psychology Consultants (Pvt) Ltd, a management
years by Frank Schmidt and Jack Hunter. and HR consulting firm. https://www.linkedin.
They covered more than 500 different jobs — com/in/memorynguwi/ Phone +263 24 2481 946-
including salespeople, managers, engineers, pleted tasks, held roles, or worked in func- mance. The conclusion: Experience doesn’t 48/ 2290 0276, cell number +263 772 356 361 or
teachers, lawyers, accountants, mechanics, tions or industries relevant to their current predict a new hire’s success.” e-mail: mnguwi@ipcconsultants.com or visit ipc-
reporters, farmers, pharmacists, electricians ones, it did not translate into better perfor- How do you hire and retain top talent? consultants.com
and musicians — and compared informa-
tion gathered about applicants to the objec-
tive performance that they achieved in the
job.”
“After obtaining basic information about
candidates’ abilities, standard interviews
only accounted for 8% of the differences in
performance and productivity. Think about
it this way: imagine that you interviewed 100
candidates, ranked them in order from best
to worst, and then measured their actual
performance in the job. You would be lucky
if you put more than eight in the right spot.”
10. Job Interviews Have Become Predictable and
Ineffective — Here Are 10 Ways to Change That by
Dr John Sullivan (https://drjohnsullivan.com/ar-
Notice of Annual General Meeting
ticles/job-interviews-become-predictable-ineffec-
tive-10-ways-change/)
In this article, Sullivan shares evidence
on why the interview in its current form is a
terrible selection tool. He goes to give solu-
tions to address the shortcomings.
“For example, Leadership IQ found that
and an astounding 46% of all new hires fail
within 18 months. Google research found
that the unstructured interviews used
by most simply don’t predict on-the-job
performance.
Here’s what Google found: “Interviews are
a terrible predictor of performance.” “Many
managers, recruiters, and HR staffers think
they have a special ability to sniff out tal-
ent. They’re wrong … It’s a complete ran-
dom mess … We found a zero relationship.”
(Laszlo Bock)
11. Hiring Isn’t Rocket Science: Why the Most
Boring Strategy Is Best by Laszlo Bock (https://
behavioralscientist.org/hiring-isnt-rocket-science-
why-the-most-boring-strategy-is-best/)
This article is about correcting the com-
mon flaws found in job interviews. If you
want to realign your interview process this
is the right article for you. Here is what the
author said: “Which brings us to interviews.
Asking behavioural questions (something
like, ‘Give me an example of a time when
you solved an analytically difficult prob-
lem’) will get you two kinds of information:
one is you get to see how the candidate in-
teracted in a real-world situation, and the
valuable ‘meta’ information you get about
the candidate is a sense of what they con-
sider to be difficult.
“Ask candidates a consistent set of ques-
tions, in the same order, with clear crite-
ria to assess the quality of responses. This
ensures that any variation in responses is a
result of the candidate’s performance, not
because an interviewer has particularly high
or low standards, or asked harder or easier
questions.”
12. Experience Doesn’t Predict a New Hire’s Suc-
cess by Alison Beard (https://hbr.org/2019/09/
experience-doesnt-predict-a-new-hires-success)
When hiring new employees do not bank
too much on experience. In this article,
Beard using solid scientific research found
no link between experience and job per-
formance. These findings should allow you
to rethink your recruitment and selection
process.
“Chad H Van Iddekinge of Florida State
University and his colleagues reviewed 81
studies to investigate the link between an
employee’s prior work experience and his www.lafarge.co.zw
or her performance in a new organisation.
They found no significant correlation be-
tween the two. Even when people had com-
6 Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020

business & investment forum

Victor
Bhoroma Assault on property rights
closes Zim to business
analyst

THE government directive to suspend the


Zimbabwe Stock Exchange (ZSE) opera-
tions on the June 26 and the recent political The government itself has been at the
threats to eject Old Mutual Zimbabwe from forefront of violating court orders while
the financial system all but ends the “Zim- property rights violations by politically
babwe is open for business” mantra. connected citizens have not be condemned
The June 26 directive also compelled mo- or punished. Government agencies still
bile money operators (MMOs) to suspend maintain a regime of redundant and cum-
operations even though the regulator, the bersome procedures for setting up busi-
Reserve Bank of Zimbabwe (RBZ), later ness operations, exporting or importing
clarified the position by banning only mo- commodities into the country. Investing
bile money agents, merchant-to-merchant in agriculture and mining are of particu-
transfers and merchant-to-individual lar concern to potential investors as they
transactions in a move presumably meant are shrouded in secrecy and often require
to curb illicit financial flows (IFFs). political favour. This has provided fertile
ZSE operations date back to 1894, even ground for high-level corruption.
though the current trading format started in The recent command-style directives
1993 when the stock exchange was opened paint a very bad picture on Zimbabwe as
to foreign investment. The stock exchange an unsafe investment destination where
market operations are supervised by the even the national bourse can be shut down
Securities and Exchange Commission of without consultation of the regulator or
Zimbabwe (SECZ) under the purview of the proper explanation to the hundreds of in-
Ministry of Finance. vestors that have potentially been impacted
As of the date of suspension, the mar- by such directives.
ket capitalisation for the 57 entities trading The selective application of the law and
on the ZSE was ZW$228,58 billion, which outright disregard for guarantees to prop-
translates to US$3,47 billion if the auction erty rights have no place in a country
rate is used and US$2,54 billion if the paral- which parades itself as open for business or
lel market rate is used. competes with its neighbors for the same
The recent knee-jerk announcements foreign investment. Investors envisage
add to threats of farm grabs around the an investment environment where their
country where a number of proper- property is protected by law (independent
ties owned by white commercial farmers judiciary) and not by political interests as
have been targeted around Marondera and those can shift overnight.
Macheke in Mashonaland East. Secure property rights vastly improve
The recent threats and ultimatums to es- economic productivity as evidenced by a
tablished farmers follow an announcement Reserve Bank of Zimbabwe building in Harare recent declaration of Mauritius as the only
by the government that farm sizes are going “high-income country” in Africa by the
to be resized in all the country’s agro-eco- greenfield investments. Gloomy picture for VFEX World Bank. Therefore, there is a heavy
logical regions in line with the recommen- The government announced that it will economic cost to the recent assault on
dations of the Lands Commission, which is
Persistent challenges to lure FDI soon launch the Victoria Falls Securities Ex- property rights and the recent ultimatums
auditing all farmland. According to the new Foreign direct investment (FDI) inflows into change (VFEX) as part of a broader plan to by the government. The cost is lack of eco-
regulations gazetted on February 14, 2020, Zimbabwe plummeted from US$717 million turn the renowned resort town into an off- nomic development and investment (for-
under Section 21 of the Land Commis- in 2018 to US$259 million in 2019, high- shore international financial centre (IFC). eign or local).
sion Act of Zimbabwe (Chapter 20:21), all lighting the country’s renewed challenges The VFEX will be managed by the ZSE and Local investors actually feel safe to stash
farms in Natural Region 1 should be below in attracting long-term investment despite liberalised to trade in foreign currency only. their investments in other countries while
250 hectares while those in Region Two the abundance of opportunities in the local The ultimatum to suspend the local generating such proceeds from the local
must below 500 hectares. Natural Region market. bourse all but taints such plans as investor economy. Private investors are not willing
Three farms should be below 700 hectares Short-term investments as represent- confidence cannot be built through abuse to commit their capital to the local econo-
whereas those in Region Four must be un- ed by portfolio investments (investments of property rights or decisions shrouded my in public-private partnerships (PPPs),
der 1 000 hectares and those in Region Five in local financial securities and equities) in secrecy from the same government that joint ventures, greenfield investments, buy
below 2 000 hectares. plunged by more than 93% to US$3,7 mil- seeks to quote global investment. struggling state entities or invest in other
The key concern on the recent assault lion in the same period, indicating a sharp giveaway deals from the Zimbabwean gov-
on property rights is that the government deterioration in the investment climate
‘Open for business’ assessment ernment largely because of the country’s
of Zimbabwe is acting unilaterally with- within the last 12 months. Even though Zimbabwe climbed 15 plac- tainted respect for property rights. It is fair
out consulting the responsible authorities In the first quarter of 2020, foreign inves- es on the ease of doing business rankings to point that the government overpromised
such as the SECZ, ZSE and RBZ, who are tors bought a monthly average of just above to 140 out of 190 ranked countries and potential investors with its “Zimbabwe is
then supposed to institute investigations US$1 million worth of shares on the local amended its Indigenisation and Empower- open for business” mantra and is struggling
into unlawful or suspicious business ac- bourse, down from a monthly average peak ment Act which stipulated 51% local own- to live up to it.
tivities and then inform the affected parties of US$26 million in 2013. As such, it is fair to ership, not much has been done to protect
through proper channels so as to instill in- say most investors had adopted a wait-and- investor property rights. The same applies Bhoroma is a marketer by profession, freelance
stitutional integrity. see attitude on the “Zimbabwe is open for to the much-needed governance and insti- economic analyst and holds an MBA from the
Institutional integrity is key to uphold- business” mantra and the unfolding events tutional reforms that could usher economic University of Zimbabwe. — vbhoroma@gmail.
ing property rights in any country, without are vindicating their fears. stability in the country. com or Twitter: @VictorBhoroma1.
which Zimbabwe will perennially struggle
to attract investment and grow its economy
in the near future. The recent directives
paint a horrific picture to the global village
that in Zimbabwe political interests matter
more than the country’s economic growth.
Tainted history
In 2009, the central bank raided foreign
currency accounts belonging to various de-
positors and walked away with more than
US$400 million.
In the past, asset seizures were reported
for land or mining claims belonging to Zim-
babwe Platinum Mines (Zimplats), African
Distillers (Afdis), Zimbabwe Alloys (ZimAl-
loys), RioZim and Diamond Mining com-
panies in the Chiadzwa area. Equally dam-
aging was the outright disregard of High
Court orders in the Gaika Mine (Kwekwe)
case where investor property rights were
trashed for political reasons. Close to two
decades after the fast-track land redistri-
bution programme, politically connected
farm invasions or threats were reported at
Lesbury Farm (Rusape) in 2017 and then in
2019 at Farfell Coffee Estate (Chipinge) in
Manicaland province.
All these events send jitters to potential
investors and are the major reasons why
Zimbabwe ranks very low on the invest-
ment destination ladder in the Southern
African Development Community where
Zambia, South Africa and Mozambique
are doing particularly well in stimulating
Zimbabwe independent BUSINESS DIGEST July 17 to 23, 2020 7

COLUMN

Robert Mandeya
Improving your analytical
People
management issueS
skills for smarter choices
THE post-information age we live in today should be richer for an insight, answer, Conclusion
is called the creative society. The name al- solution or overall conclusion. You should An important part of being a good analyst
ready implies how important and well- better understand why things are as they is paying attention to detail (and seeing the
cherished creativity is. are or what the underlying paradigms are. big picture at the same time). The devil is
Unfortunately, creativity is not a subject Consequently, that should lead to you in the detail. The problem is that in today’s
taught in schools, but it is something that making better decisions. In today’s com- information overload and busy times, it is
can be mainstreamed in the curriculum. plex, turbulent and fast-changing world, quite hard to pay attention to all the de-
Everybody (including myself) talks about constantly using analytical skills can help tails. All the obligations are usually forcing
constant innovation, having visions for the you be one step ahead of changes. you to run from task to task hoping not to
future, brainstorming brilliant ideas and ex- drown in work. How can you then pay at-
pressing your unique artistic soul. All these Acquiring new knowledge tention to detail?
things originate from creative self-expres- Besides that, the two best ways to acquire
sion and are extremely important in today’s new knowledge is: (1) by properly learning Mandeya is a certified executive leadership
world where survival has become a daily a body of knowledge that others have cre- For me, analytical skills are especially im- coach, corporate education trainer and man-
ordeal. ated with deductive or inductive reasoning, portant for better understanding how the agement consultant and founder of Leadership
and (2) by producing knowledge on your world works (from the human psyche to Institute of Research and Development (LiRD).
Essence of brilliant ideas own with the use of analytical skills. global trends), as well as for finding unique — robert@lird.co.zw/ or info@lird.co.zw, Fa-
Having brilliant ideas can help you advance There are, however, practical ways analyti- ways to achieve completely new levels of cebook: @lirdzim and Mobile/WhatsApp:
in your career, business and social life. Fol- cal skills can be used in our day-to-day life. productivity and personal performance. +263 719 466 925.
lowing creative endeavours always gives
additional depth to your life.
However, they are only one part of the
equation. Innovations must be in line with
market paradigms and people’s needs. In
the same vein, visions must be backed up
by strategic plans and brilliant ideas have to
BINDURA NICKEL CORPORATION LIMITED
be systematically tested. It is never enough
to only be different, you also have to be bet- Trojan Mine Road, Bindura, Zimbabwe
ter. That is where analytical skills come into P.O. Box 35, Bindura
play. Luckily, much like anybody, anyone
can become (more) creative, so just like any
Telephone: +263 (0) 772185650/1/2/3/4
other skill analytical skills can be improved Email: info@bnc.co.zw
as well. Company Registration number: 552/1966
Brain functioning
There is a general belief that some people
are more creative and are not the analyti-
cal type (with a strong “right brain” hemi- CAUTIONARY ANNOUNCEMENT
sphere), while others are logical and un-
intuitive types (with a strong “left brain”
hemisphere). But today, that kind of a di- (PROFIT WARNING)
vision can only be a limiting belief, since
such lateralisation of the brain function
was scientifically disproved. While some
brain functions do occur more in one of the Shareholders and potential investors of Bindura Nickel Corporation Limited
hemispheres, there is no evidence that peo-
ple have a stronger left or right side of the (“BNC” or “the Company”) are hereby informed that the Company is expecting to
brain. And your intellectual performance is
the strongest when both brain halves work record a significantly reduced net profit after taxation or a net loss after taxation
together.
for the year ended 31st March 2020 versus the net profit after taxation that was
Dealing with limiting beliefs
I contend here that we all have different originally expected for the same period in terms of the Company’s profit
talents and abilities, but you have to make
sure limiting beliefs are not preventing you forecasts as well as versus the net profit realised in the comparative period last
from improving your analytical skills. These
limiting beliefs are informed mostly by our
background, religion, culture, education year.
etc. If we move on, the next very popular
axiom is that school can kill creativity.
There is a lot of evidence that schools do The audited annual results of the Company for the year ended 31st March 2020
not teach many useful ways on how ana-
lytical thinking can be applied in life ex- will be announced to the public on 31st July 2020.
periences. For example, analytical skills
can be used to better understand yourself,
plan your future, manage your finances and
make smarter life decisions. It is something In the meantime, Shareholders and other Stakeholders are advised to exercise
you have to learn on your own, if you were
not among the few lucky ones who acquired caution when dealing in the Company’s securities until a full announcement is
these valuable skills at home or at school.
The good thing is you can also do with some made.
coaching. In executive coaching, we do have
tools for improving analytical skills.

Importance of analytical skills By order of the Board


If you are not a scientist, detective or math- Bindura Nickel Corporation Limited
ematician, what good can analytical skills
do for you? Well, there are many advantages
to possessing strong analytical skills.
In general, analytical skills are about
breaking down complex information, C F Mukanganga
events, situations and other bits of informa-
tion to find patterns, causes and effects and
Company Secretary
to identify other connections. For instance, 16th July 2020
the Covid-19 crisis has presented us with a
complex situation whose context we must
understand so as to locate our position so
as to map the way forward in business and
otherwise. Gathering, processing, organis-
ing, structuring, and presenting data in a
certain context to make it useful is achieved
with analytical skills. It is how information
is turned into data and further transformed Directors: M A Masunda (Chairman), B Manhando (Managing Director), J C Behr,
into new knowledge. D H Brown, O Chimuka, C G Meerholz.

Insights from analytical skills


At the end of the analytical process, you
8 ZIMBABWE INDEPENDENT BUSINESS DIGEST JULY 17 TO 23, 2020

HEALTH PAGE

Most people cope with Covid-19 at home


COVID-19 is a virus that is dead- whether or not you have the vi- frequently touched surfaces, in-
ly for some, unpleasant but not rus, unless you have been tested cluding phones, door handles,
fatal for others and displaying no for it. However, leaving it too late remote controls, work surfaces,
symptoms at all in others. There to seek medical help can prove tables and other frequently used
are millions of people worldwide fatal. surfaces or objects.
infected with the virus, only a Try to keep two metres away
small percentage of whom have
Symptoms from the infected person and
died from it. Two of the major symptoms of wear protective gear, if you can.
Nevertheless, although less Covid-19 are a cough, particu-
than 7% of those confirmed as larly a dry cough, and shortness
Prevention
infected die from the virus, there of breath or difficulty breathing. Prevention requires strict ad-
are hundreds of thousands of In addition, there are gener- herence to maintaining a physi-
infected people who have died, ally at least two other symptoms, cal distance of two metres from
which is why it is important to which include a fever, chills, re- other people and strict personal
do everything that can be done peated shaking as a result of the hygiene through thoroughly
to avoid it. chills, muscle pain, a headache, washing your hands frequently.
The fact that symptoms take a sore throat and loss of taste or During a lockdown you need to
from two to 14 days after infec- ed with the virus who are only cause of the highly contagious smell. be strict in staying at home and
tion to appear and that some discovered to have it when they nature of the virus, people are If you suspect you may have not allowing anyone to visit you.
people may never display any are tested because they have be- not encouraged to go to their been exposed to Covid-19 you If you go out or if you are shar-
symptoms, despite being in- come very ill and been admitted doctor but rather make contact should contact your healthcare ing accommodation with anyone
fected, makes it a difficult virus to hospital. with a medical professional ini- provider. suspected of having the virus,
to combat. Most people infected only dis- tially over the phone, if they are Unless the symptoms are se- maintain your distance from oth-
There have been cases even play mild, if any, symptoms and concerned they may have the vere, you will probably be ad- ers and wear a mask, although
in Zimbabwe of people infect- will recover on their own. Be- virus. It can be difficult to know vised what you can do at home to wearing the mask is chiefly to
relieve the symptoms. protect others from you, should
If, however, you have trou- you unknowingly have the virus.
ble breathing, persistent pain or
pressure in the chest, confusion
Coping
that you did not have before, or if The Covid-19 coronavirus is
you cannot be aroused or if your frightening, because, even
lips or face are bluish, these are though less than 7% of those
emergency warning signs. Medi- confirmed as having the virus die
cal assistance should be sought from it globally. It can kill, its ex-
immediately. tent of spread is still very much
You can call the Ministry of unknown and there is no known
Health and Child Care on its Cov- treatment or vaccine available.
id-19 toll-free hotline number It is important to exercise pre-
2019 for assistance. Cimas doc- cautions to protect yourself from
tors on call during the Covid-19 the virus, while at the same time
pandemic can be reached on not allowing yourself to become
08677400500. stressed out.
If you think you may have the You should look after your
virus and are living with other health by adopting healthy hab-
people, you should, if possible, its, such as eating a healthy diet,
keep at least two metres away having plenty of exercise, hav-
from them and wear a face mask ing enough sleep and engaging in
to protect them. If difficulties relaxing activities. If you live on
in breathing prevent you from your own, it is important during
wearing a face mask, then at a lockdown to keep in touch with
least make sure that if you cough friends and relatives through the
or sneeze you do so into a tis- phone or social media.
sue, which you then dispose of, The healthier you are, the more
or into the inside of your elbow. likely you are able to fight the vi-
Thoroughly wash your hands af- rus if you become infected with
terwards. Wash them frequently it.
with soap and water or use a Do not allow fear of the virus
hand sanitiser. to cause you undue stress. At the
Do not share personal items, same time take the recommend-
such as towels, bedding and eat- ed precautions to avoid becom-
ing utensils, cups and glasses. ing infected with the virus.
If you suspect you have the
Treatment virus, seek advice from a medi-
There is no known cure for Cov- cal practitioner by phone. If
id-19. However, treatment is the symptoms become severe,
available for the symptoms and particularly when it comes to
for other conditions that may be breathing problems, contact a
brought on by Covid-19. health provider or phone the
Treatment to relieve the symp- Ministry of Health and Childcare
toms may include paracetamol Covid-19 hotline which is 2019.
for pain relief, cough mixture,
drinking plenty of fluids and rest. The information in this article is
If you are seriously unwell, you provided as a public service by the
may need to be admitted to hos- Cimas iGo Wellness programme,
pital. If you are having difficulty which is designed to promote good
breathing, you may be given ox- health. It is provided for general in-
ygen and may be connected to a formation only and should not be
ventilator, which is an apparatus construed as medical advice. Read-
that helps you to breath. ers should consult their doctor or
Looking after Covid-19 patient clinic on any matter related to their
If you are looking after a per- health or the treatment of any health
son who is confirmed or sus- problem. — igo@cimas.co.zw or
pected to have the virus, clean WhatsApp 0772 161 829 or phone
and disinfect the bathroom and 024-2773 0663.
ZIMBABWE INDEPENDENT BUSINESS DIGEST JULY 17 TO 23, 2020 9

CBZ NTC011
TRADING
UPDATE
for the Quarter ended
31 March 2020

Introduction Post Lockdown Matters

I am pleased to present an update on the performance of CBZ Holdings Limited and its (a) Effects of Covid-19 on the business.
subsidiaries for the quarter ended 31 March 2020.
The World Health Organisation (WHO) declared COVID-19 as a pandemic on 11
Operating Environment March 2020. This is having a significant impact on both global and domestic economic
activities as Governments adopt restrictive measures to curtail the spread of the virus.
The quarter began with the fiscal, monetary and regulatory authorities actively pursuing In Zimbabwe, Government and private sector efforts to fight the virus is resulting in new
measures to stabilise the financial markets, the financial system and the macroeconomy threats and opportunities to the Group’s business model.
at large. The Monetary Policy Committee, in January 2020 announced United States
Dollar (US$) indexed new minimum capital requirements as follows; As the outbreak continues to spread globally, the operations of the Group have not been
spared of the effects. Due to the lockdown that has been necessitated by the need to
• Tier 1: Banks (large indigenous commercial banks and foreign owned banks) curtail the spread of the virus, most of the Group’s branches and head offices have either
– US$30 million been closed or are not operating at full capacity. Most of the Group’s employees are
• Tier 2: Banks (Commercial banks, Merchant banks, Building societies, working from home with the exception of staff members that are required to be available
Development banks, Finance & Discount houses) – US$20 million physically within the work premises. Limited services are being offered to clients, with
• Tier 3: Banks (Deposit taking microfinance banks) – US$5 million most of the services being restricted to clients who have been designated as essential
• Credit only microfinance banks – US$25 000 services. Transactional volumes have declined during the lockdown period as a result
of the restriction in movement and the requirement that only essential services be
These new minimum capital requirements will become effective from 31 December 2020. allowed to operate during this period. Borrowers, especially those that are in the hardest
It is expected that they will result in stronger financial institutions and a stronger and hit industries such as Tourism and Hospitality have had their businesses affected and
stable financial services sector once all institutions have complied. consequently, their ability to service debts.
The Insurance & Pensions Commission “IPEC” also announced Guidelines for the The Group has assessed that COVID-19 will not have an inhibiting impact on its financial
insurance and pensions industry on adjusting insurance and pension values in response activities and position as most of its services and business activities have been and can
to the currency reforms in terms of Section 3 (1) (a) of Statutory Instrument 69 of 2020. be migrated to online platforms. The Group is therefore envisaged to continue as a going
Other notable policy measures that were announced included the reduction in the concern despite its possible effects.
Central Bank policy rate from 35% to 25% and the expansion of the Medium-Term Bank
Accommodation facility. This expansionary monetary policy stance, although inflationary, (b) Group Business Continuity
was seemingly meant to support the productive sectors of the economy, and steer the
economy towards a sustainable growth path.
The Group has put in place various measures to support its clients and counter the effects
The CBZ Group continued to directly and indirectly participate in the sustainable of COVID 19. The measures are detailed as below:
development of the economy through its various subsidiaries in the Banking, Insurance,
Investments and Agriculture sectors. • Aggressive use of digital channels: The Group has encouraged its
customers to make use of the various digital platforms it has available in
Group Financial Highlights an effort to make sure that services are available to customers during the
lockdown period.
The table below summarises the Group’s financial performance for the first quarter of
the year. • Remote working: Most of the Group employees are available to ensure
continuity of the business during lockdown by working remotely.
Unaudited Unaudited Unaudited Unaudited
• Limited services: The Group, is offering money transfer agency business,
31 March 31 March 31 March 31 March
deposit and withdrawal services to customers that are within the essential
  2020 2019 2020 2019 services category and those that have access to the teller on premises facility.
Inflation Inflation Historical Historical
Adjusted Adjusted Cost Cost
ZWL $m ZWL $m ZWL $m ZWL $m • Forbearance and moratoria to clients hardest hit by the virus: The Group’s
level of exposure within the Hospitality and Tourism Sector which has been
hardest hit by the effects of the outbreak, constitutes about 0.68% and hence,
Key Financial Highlights the Group is unlikely to suffer significant losses due to non-performance of
borrowers in this Sector.
Total Revenue 1 173.6 487.9 1 386.2 60.6
(c) Going Concern and Solvency
Profit after taxation 312.7 82.5 678.1 17.4
The Directors have engaged themselves to continuously assess the ability of the Group to
Total assets 26 418.8 19 831.3 25 029.2 2 704.6 continue to operate as a going concern. Despite the foregoing, the Group has assessed
that COVID-19 will not have an inhibiting impact on its ability to continue operating as a
Total equity 4 416.8 3 734.8 3 143.9 618.3
going concern.
Total deposits 19 870.4 15 633.3 19 870.4 2 013.6
Outlook
Total advances 5 097.1 3 950.0 5 097.1 508.8
Going into the second quarter of the year, the operating environment is expected to
remain fraught with increased uncertainties emanating from the effects of the outbreak
Other statistics and attendant measures to fight the virus. Economic activity will also slowdown further, as
priorities remain firmly focused on confronting the unfolding unprecedented health and
Basic earnings per share humanitarian crisis. The Group will continue to actively participate in the fight against the
60.24 15.94 130.64 3.36 disease, maintaining the safety and wellbeing of its employees and clients as the number
(cents)
one priority.
Cost to income ratio (%) 30.8 55.0 23.3 55.4
Issued by Order of the Board
Return on assets (%) 7.0 1.8 12.8 3.6

Return on equity (%) 19.3 6.4 52.4 10.4

Growth in deposits (YTD %) 3.5 (17.6) 52.1 (3.2)


.....................................................
Growth in advances (YTD %) 15.1 (11.1) 69.1 4.5 Rumbidzayi Angeline Jakanani
Group Legal Corporate Secretary
Growth in PAT (YOY %) 278.8 36.5 3 801.0 36.5
26 June 2020

Subsidiaries Capitalisation REGISTERED HEAD OFFICE


5 Campbell Road
The Group’s subsidiaries were in full compliance with their regulatory minimum capital Pomona
requirement except for CBZ Insurance and Redsphere Finance which had regulatory Harare
capital shortfalls of $12.4 million and $1.99 million respectively, at the end of the Quarter. Telephone: (263-242) 748 050 - 79
The Group managed to regularise these shortfalls by availing appropriate funding to the Email: info@cbzh.co.zw
two subsidiaries during the month of April 2020. www.cbz.co.zw
10 Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020

BUSINESS OPINION

RODNEY
NDAMBA Robust, legitimate reforms
key to economic recovery
ANALYST

THE Covid-19 pandemic continues to haunt


economic recovery in Africa, which has
been predicted to shrink by between -2,1 Nobes, 1983; CSR Europe and PWC, 2016).
and -5,1% with Zimbabwe expected by the Recently, the Global Reporting Initiatives
World Bank to shrink by -7,4%. (GRI) launched a first global Tax Standard
It is certain that the country faces a (GRI207) requiring country-by-country
mammoth task in rebooting the economy tax payment disclosures.
and the private sector. At the moment, it is Nigeria Stock Exchange just hosted an
critical to understand the country’s future event to support the standard, while in
economic model and recovery philosophy Zimbabwe this standard is covered under
as many nations calibrates towards “Green Statutory Instrument 134 of 2019. As such, it
Economic Recovery”. This article chroni- is incumbent upon the Zimbabwe Revenue
cles some of the reforms once highlighted Authority (Zimra) and Ministry of Finance
in prior publications which remain a defin- and Economic Development to use the
ing factor for convincing sustainable capital standard for driving responsible and trans-
(SC) and quality foreign direct investment parent tax behaviours to enhance domestic
(QFDI) to Zimbabwe for sustainable eco- resource mobilisation.
nomic recovery. Post Covid-19, compe-
tition for investors will be more fierce in
Public infrastructure development
Africa, which may require Zimbabwe to de- Water and energy are emerging as the great-
velop its own “Blue Ocean Strategy” (Kim est challenge Zimbabwe faces which could
and Mauborgne, 2015) by undertaking le- deter investors. The ability to consistently
gitimate and robust reforms to exit the cur- supply energy such as electricity, petrol and
rent “Red Ocean” economy. diesel continues to make the business envi-
The private sector in Zimbabwe has the opportunity to create new markets in global supply chains ronment difficult. However, these utilities
Robust financial sector reforms disrupted by Covid-19. are being provided on a high cost structure
Firstly, the prevailing banking sector fragil- which makes local products uncompetitive
ity evidenced by public mistrust has cre- office, which in South Africa has helped Sustainable economic model in regional and international markets. It is
ated the opportunity for the “black market” strengthen their financial sector. In 2019, a publication titled Zimbabwe must important to acknowledge the great work
to prevail. Many people prefer to store their build a sustainable economic model called being done by the government on the Beit-
United States dollars under their “mattress”
Strengthening institutions for a model-based philosophy. The prevail- bridge-Harare Road. However, attention is
than the banks. Contemporary economics In 2018, an article titled Zimbabwe must ing economic fragility resulting from the still required on dams, roads, rail network,
regards central banks as pivotal in driving build strong institutions called for strength- absence of an economic model continues to public health and service delivery.
economic development and political stabil- ening of institutional governmentality. be a stumbling block for sustainable foreign
ity in any country (Tucker, 2008). There- Countries with weak institutions tend to be direct investment. Emerging economies like
Private sector
fore, robust and legitimate financial sector associated with unprecedented corruption, Vietnam, South Korea, Singapore, Mauri- The private sector in Zimbabwe has the op-
reforms should be a priority to build public speculative tendencies, poor corporate gov- tius and Malaysia have built their strength portunity to create new markets in global
trust because no investor will invest their ernance, economic paralysis, weak regula- on well-pronounced and robust economic supply chains disrupted by Covid-19.
money through institutions not trusted by tory frameworks, high inflationary tenden- models. An economic model is a construct However, these markets have high
their own nationals. cies, policy inconsistency, lack of public of designed economic variables that deliver screening standards for suppliers based
The banking sector in Zimbabwe is still accountability, inefficiencies, an approach sustainable wealth for a nation in a pre- on environmental, social and governance
to complete implementing Basel II, while more academic than applied, too many dictable and integrated manner (Ndamba, (ESG) considerations which many compa-
some central banks in Africa have pro- laws that are never followed and poor eco- 2019). nies do not take seriously. High value and
gressed to Basel III, the Equator Principles nomic competitiveness. An economic model helps understand competitive global supply chains have high
and newly developed Principles on Respon- Progressive and competitive economies and predict the impacts of change in eco- sustainability or ESG standards (Spence and
sible Banking (PRB) (2020). As such, this are supported by strong institutions which nomic variables (Tucker, 2008). Obser- Rinaldi (2010). Recent research at Oxford
makes our local banks fail to host climate uphold policies, laws and regulations. vations have shown that strong emerging University’s School of Sustainable Finance
finance, green finance and positive impact Cases can be cited in Rwanda, South Af- economies rely on economic models. showed evidence that there are effects of
finance investments, which are critical for rica, Botswana, Namibia, United Kingdom, The sustainable rebooting of the economy firm-level ESG practices on macro-eco-
sustainable development in Zimbabwe. United States, Australia, New Zealand, Ja- of Zimbabwe cannot be achieved without nomic performance of a country (Zhou Xi
Therefore, Reforming the Reserve Bank pan and South Korea etc. Zimbabwe needs a sustainable economic model; this is dif- et al,2020).
First (Ndamba, 2018) should be prioritised to take strong measures to buttress and ferent to relying on policies and strategies. This research can be substantiated by
to realign with central banking (regulation build its regulatory, governance and en- While the country is going through the evidence from Singapore, South Africa, Ja-
and supervision) functions (Arnold, 2012). forcement institutions post the pandemic Covid-19 pandemic, this could be an op- pan and South Korea, hence private sector
Finally, the sector needs an ombudsman’s to build economic confidence. portunity for developing a robust economic development and reform are key for Zim-
model for Zimbabwe, just like many other babwe. However, global investors have
emerging and developed economies. Coun- adopted an ESG investing stance during the
tries like Japan, China, South Korea, Malay- pandemic (UNPRI, 2020, Blackrock, 2020,

DEATH NOTICE sia and Singapore provide great examples of


how economic models have contribute.
Deloitte US, 2020), which becomes a bar-
rier for many companies in Zimbabwe. Fi-
nally, corporate governance remains key
Investments management reforms for sustainable investment, hence the need
Government investments are becoming for strong enforcement and monitoring
an economic growth strategy for emerging mechanisms.
economies unlike heavily relying on tradi-
tional fiscal systems of taxes.
Country risk profile
In 2019, a publication titled Zimbabwe Lastly, we look at the publication titled
must develop a robust Government Invest- Zimbabwe must manage its country risk
ment Management Framework advocated profile to attract investors (Ndamba, 2020).
the establishment of the Zimbabwe In- The recent stance by the IMF and World
vestment Corporation (ZIC) which would Bank is a reality check of how country risk
independently manage all government in- profile can backfire if not managed. The
vestments without political interference. country should take strong measures to
In Japan, government assets are managed deter corruption, human rights, poor cor-
through the Japan Investment Corp (JIC). porate governance, bank sector trust gap
In South Africa, it is the Public Investment and regulatory oversight deficiencies to im-
Tery DI6509335-WT16

Corporation (PIC); Singapore — Singapore prove confidence.


Investment Corporation (SIC); South Ko- In conclusion, the country urgently needs
rea — Korea Investment Corporation (KIC); a robust post-Covid-19 economic recovery
and China — China Investment Corpora- model before the economy opens.
tion (CIC), to name but a few. Should this South Africa recently published its own
prevail, it will be a turning point for corpo- document outlining its sector-by-sector
THE LATE rate governance in parastatals, state-owned economic recovery strategy post the pan-
Jayant Chunilal Joshi enterprises (SOE) and private companies
controlled by the government in addition
demic. Without convincing robust and le-
gitimate reforms, and mind-set change, the
to an option of listing them on the stock economy may never recover or be invest-
The Joshi Family regret to announce the passing exchange. able hence neighbouring countries gaining
competitive advantages over Zimbabwe de-
away of Jayant Chunilal Joshi. Affectionately known Fiscal systems reforms spite its vast natural resources.
as "J C", his valiant spirit fought his last fight right to The fiscal economics remain traditional
the end and he passed away peacefully in London on hence requiring rethinking towards de- Ndamba is the chief executive and founder of
velopmental and responsible taxation to the Institute for Sustainability Africa (INŚAF), an
13th July 2020, with his devoted wife Daksha and enable Zimbabwe to meet the Sustain- independent think-tank and research institute
children Nita, Heena and Ketan at his side. able Development Goals (SDG). Zimbabwe “advancing sustainability initiatives for Africa”.
was ranked 126 out of 166 countries on the These weekly New Perspectives articles are
SDG Performance (Sustainable Develop- co-ordinated by Lovemore Kadenge, immedi-
ment Report 2020). The economics of taxa- ate past president of the Zimbabwe Economics
tion in Zimbabwe requires transparency Society. — kadenge.zes@gmail.com or mobile
and responsible tax behaviours (James and +263 772 382 852.
ZIMBABWE INDEPENDENT BUSINESS DIGEST JULY 17 TO 23, 2020 11

ENVIRONMENT NEWS

EMMANUEL
KORO
California warned against banning
JOURNALIST
trophy hunting and ivory imports
THE Washington DC-based Safari Club In-
ternational (SCI), lawyers have warned the
state of California not to ban the importation
of hunting trophies of the African elephant,
leopard, lion, black and white rhino, giraffe,
Jentink’s duiker, plains zebra, mountain ze-
bra, hippo, baboon, hyaena and pangolin, as
it would be sued for violating the June 2020
United States Federal Government ruling by
the Washington DC circuit court that these
trophies be allowed into the US.
The ruling acknowledged that hunt-
ing contributes to wildlife conservation.
Southern African Development Commu-
nity (Sadc) governments, rural communi-
ties that benefit from hunting and members
of hunting groups in the US. and worldwide
welcomed this decision that totally dismiss-
es the ongoing animal rights groups that
hunting is harmful to wildlife conservation.
According to the 1997 World Wide Fund
For Nature (WWF) wildlife hunting quota-
setting manual, the main purpose of a quota
is to identify the number of animals that can
be killed without reducing the population.
The DC Circuit Court decision was made
following the SCI, together with other
American hunters associations’ appeal lion populations have declined
against the Barack Obama Administration 43% since 1993; and black rhi-
imposed blanket ban on hunting trophy no have declined 97.6% since
imports endangered species that did not ac- 1960. “In order to address
cept a case-by-case importation policy that these diminishing numbers,”
acknowledges that not all countries’ wild- the bill seeks to “reduce the
life populations are endangered. demand for new trophies” of
“Therefore, this landmark court decision the covered species.
is sweet and hard fought victory not only for Contrary to these claims,
the SCI, but also the African countries that Sadc countries from where
benefiting from the hunting industry,” SCI most of the prohibited trophies
Conservation manager Joseph Goergen said. come do not have endangered
An exclusive statement released by SCI elephant populations. They are
lawyers says that the California State Bill SB elephant overpopulated with
1175 aimed at prohibiting possession what Botswana’s elephant popula-
the state considers to be endangered wild- tion currently dying in hun-
life trophies “is illegal with respect to spe- dreds in what most veterinar-
cies listed under the US Endangered Species ians and ecologists worldwide
Act (ESA).” widely believe to be caused
“The ESA does not allow US States to pro- by elephant overpopulation.
hibit activities that are permitted by the The UN Convention on Inter-
federal government under the ESA; the legal national Trade in Wild Spe-
term is that State actions are “preempted” cies of Fauna and Flora (Cites)
under US federal law,” the SCI lawyers, Re- country-by-country case el-
gina Lennox and Jeremy Claire, said. ephant population assessment
“The US Fish and Wildlife Service already method called split listing. Ac-
regulates the importation of elephant, leop- cording to this method, most
ard, lion, and rhino among other species Sadc countries are elephant
covered by this bill. California will be sued over-populated and have. The
if the bill [SB 1175] becomes law, and ulti- Sadc countries’ giraffe, plains
mately, SCI believes that a court will find zebra, hippo, baboon and hy-
that this law cannot apply to ESA-listed enas are also not endangered.
species.”
However, the SCI lawyers said six months, Bill opposition
maybe more, would “likely pass before the Many hunting organisations
court could declare the law illegal with re- oppose the bill, including SCI.
spect to these species.” In the interim, Cali- SCI has been and remains
fornia residents would not be able to pos- strongly engaged at every step
sess these species in California. Meanwhile, to try and defeat this bill. SCI
the SCI CE, Laird Hamberlin said “the real has submitted numerous let-
victory from this ruling [DC Circuit Court ters in opposition to the Bill
ruling] belongs to the hunters who will now and engaged its members to
encounter a more factually driven importa- contact their State representa-
tion process as part of their crucial role in tives to oppose the Bill.
African conservation. SCI deeply appreci- “The governments or wild-
ates the DC Circuit Court’s wise decision”. life authorities of Mozam-
bique (Anac), Namibia (MET),
California SB 1175 Bill status Tanzania (Tawa), Zambia
This bill is not yet law. It must be passed (DNPW), and Zimbabwe
by both houses of the California legislature (ZimParks) have sent letters
and signed by the governor to become law. opposing this bill [SB 1175
It passed the California State Senate on June Bill], as well as the Campfire
26, 2020. It now goes to the California As- programme in Zimbabwe and
sembly for consideration. If the bill passes the Namibian Association of
the California Assembly, it will go to Gov- CBNRM Support Organisa-
ernor Gavin Newsom, who will need to de- tions,” the exclusive SCI law-
cide whether to sign it into law or to veto or yers statement.
reject it. In 2018, a similar bill was vetoed by “The permanent secretary
then-governor Brown. However, the cur- of Zimbabwe’s Ministry of
rent governor’s willingness to enact or veto Environment, Climate, Hos-
this bill is unknown. pitality and Tourism Industry
testified during a public hear-
California SB 1175 Bill support ing on this bill before the Cali-
The bill is strongly supported by animal fornia Committee on Natural
rights groups, including a California organi- Resources and Water.”
sation called “Social Compassion in Legisla-
tion” and the Centre for Biological Diversity. Koro is a Johannesburg-based
The SB 1175 Bill claims that the prohibition international award-winning envi-
of wildlife trophies in the state of California ronmental journalist with 27 years’
is needed because across Africa elephant experience in environment and
populations have declined 30% since 2007; development reporting.
12 Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020
Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020 13
14 Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020
Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020 15
16 Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020