ZIMBABWE

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Tense Mnangagwa orders

Ncube to arm riot police
ANDREW KUNAMBURA
PRESIDENT Emmerson Mnangagwa has
instructed Treasury to urgently buy a fleet
of brand new vehicles for the police, in-
cluding all-terrain troop carriers, water
cannons, buses and equipment used by
riot police, as the government prepares to
enforce a renewed Covid-19 lockdown.
The cash-strapped government court-
ed controversy in April when Finance
minister Mthuli Ncube wrote to the In-
ternational Monetary Fund (IMF) begging
for financial assistance. The IMF has since
spurned the overtures, citing Zimbabwe’s
failure to implement economic and politi-
cal reforms.
This urgent procurement request comes
as the restive population gears for the July
31 demonstrations organised by the oppo-
sition to protest against corruption.
Senior government officials told the
Zimbabwe Independent this week that Mnan-
gagwa, in a top-level meeting on Tuesday,
instructed Ncube during a fiery debate on
how to contain the Covid-19 pandemic to
arm and equip the police so that they can
effectively enforce the restriction meas-
ures.
Covid-19 cases have increased sharply
in recent weeks, prompting public health
experts to warn that the country was
hitting a peak characterised by higher
mortality and rising infection numbers.
Official sources said soon after Vice-
President Kembo Mohadi — who chairs
the national Covid-19 taskforce — pre-
sented a gloomy report, Mnangagwa asked
Home Affairs minister Kazembe Kazembe
why the police were failing to effectively
enforce the level two lockdown rules.
Mnangagwa, the sources said, expressed
concern over the flooding of streets in ma-
jor cities and towns, against the restrictive
measures which prohibit “unnecessary
movements”.
Kazembe is said to have replied that
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
FINANCE minister Mthuli Ncube forecasts
Zimbabwe’s fragile economy to contract
by 4,5%, buffeted by the devastating im-
pact of Covid-19, drought and prolonged
power outages, but sees inflation dropping
to 300% by year-end.
His projection on gross domestic prod-
uct is at variance with forecasts from
various multilateral lending institutions.
Inflation is currently hovering around
800%, although Imara, a wealth manage-
ment firm, sees it peaking at 1 200% as the
effects of the pandemic set in.
Zimbabwe has recorded 1 362 Covid-19
infections, with 19 deaths and 425 recov-
eries.
Prior to the onset of the global pan-
demic, which saw Zimbabwe imposing a
lockdown on March 30, the Treasury boss
had projected the economy to grow by
3%, buoyed by fiscal consolidation meas-
ures being rolled out by government.
Presenting the 2020 mid-term budg-
et review statement in the National
Assembly yesterday, Ncube did not al-
locate additional budgetary outlays to
rejuvenate Zimbabwe’s floundering
economy. Analysts say in the absence of
a financial rescue package, the economy
will continue on a downward spiral.
The Treasury boss projected the econo-
my to rebound in 2021, growing by 7,4%,
although the African Development Bank
(AfDB) has a gloomy outlook for the
continent, particularly for countries like
Zimbabwe which have not spent sub-
stantially to ease the effects of the global
pandemic. The continental bank, in its
Africa’s Economic Outlook Amid Covid-19 June
Report, highlighted that the continent’s
GDP would shrink by 3,4%, as cash-
strapped nations struggle to contain the
catastrophic pandemic.
In April, Ncube, acknowledging the
herculean task of overcoming the pan-
demic-induced negative growth, pleaded
for a US$200 million rescue package from
international financial institutions (IFIs).
His request was rebuffed.
Yesterday, Ncube underscored that with
government ringing in a raft of measures
to stabilise Zimbabwe’s volatile currency,
month-on-month inflation would decline
from 31,7% in June to 5% by year-end.
“… inflationary pressures which sub-
sided in the last quarter of 2019 and in
January 2020, resurged from February
2020 to June 2020. However, inflation is
expected to gradually decline in the sec-
ond half of 2020, from the peak of 785,5%
in May 2020, to 300% in December 2020,
responding to current monetary and fiscal
policy interventions.
“The projected annual inflation is
consistent with reducing the month-on-
month inflation from 31,7% in June to 5%
in December 2020.”
With Zimbabwe’s currency in freefall,
Ncube said, the recently introduced week-
ly foreign currency auction system meant
to stabilise the exchange rate, which this
week stood at US$1:ZW$68, would bolster
efforts to contain runaway inflation.
To Page 2
2 Zimbabwe independent July 17 TO 23, 2020
No cheer for distressed
firms in revised budget
Tinashe Kairiza
FINANCE minister Mthuli Ncube offered
no respite to Zimbabwe’s distressed com-
panies which are struggling to stay afloat
on the back of an ZW$18,5 billion stimu-
lus package that government announced in
May to safeguard productive sectors of the
economy from the devastating impact of
Covid-19.
The quantum of Zimbabwe’s bailout
package, which amounted to about US$200
million at the time of its unveiling, pales
into insignificance with what other re-
gional countries offered to rejuvenate their
industries, as the global economy takes a
battering from the pandemic.
With the World Bank (WB) projecting the
global economy to shrink by 4,5% this year
due to the impact of the Covid-19, South
Africa, the continent’s most developed
nation, availed a hefty US$26 billion res-
cue package. South Africa’s bailout pack-
age, also announced in April, is equivalent
to 10% of that country’s gross domestic
product.
Presenting the 2020 mid-term budget
review statement yesterday, Ncube, who
underscored the myriad of challenges be-
setting local industries ranging from pro-
longed power cuts, widespread job losses
and a currency volatility crisis, projected
the economy to shrink by 4,5% this year,
with the manufacturing sector contracting
by 10,8% owing to the pandemic. At the
time the Treasury boss announced Zim-
babwe’s ZW$63, 6 billion budget for 2020,
the manufacturing sector was forecast to
grow by 1, 9%, riding on the back of antici-
pated demand for minerals and improved
agriculture yields.
The WB estimates that countries across
the continent will lose a staggering US$79
billion in the wake of the coronavirus out-
break, with ill-equipped nations counting
heavy losses.
Under Zimbabwe’s ZW$18,5 billion res-
cue package, ZW$3,5 billion in capital out-
lays was availed to established companies
while ZW$500 million was channelled to-
wards small to medium enterprises(SMEs).
Ncube said: “Government intervened
through the Stimulus Package which fa-
cilitated a ZW$3,5 billion facility to cater
for industry working capital (ZW$3 billion)
and SMEs support (ZW$0,5 billion) with
expectations to arrest a huge decline.
“As a result, the sector is expected to
contract by 10,8% in 2020 against 1,9%
originally projected.”
Neighbouring Mozambique, battling to
contain an extremist insurgency that flared
up earlier this year, will benefit from a
US$7,4 billion rescue package that the Afri-
can Development Bank (AfDB) announced
Zim economy to shrink by 4,5%
From Page 1
The government introduced the foreign cur-
rency auction system, coupled with suspending
trading on the Zimbabwe Stock Exchange (ZSE)
and clamping down on mobile money platforms
as part of a policy move to arrest the tide of
speculative demand for hard currency.
“Exchange rate levels and movements have
far-reaching implications for inflation, com-
petitiveness of exports, efficiency in resource
allocation, international confidence and bal-
ance of payments equilibrium. Therefore
exchange rate developments are a matter of
national interest and concern to Government,
the business community and the general pub-
lic,” Ncube said.
“In order to stabilise the exchange rate and
anchor inflation, Government introduced the
foreign exchange Dutch Auction system on
Tuesday, 23rd June 2020, which is designed
to reduce exchange rate instability. The auc-
tion is expected to enhance transparency in the
management of foreign exchange, achieve a
realistic exchange rate (price discovery) for the
LOCAL NEWS
Finance minister Mthuli Ncube presenting the mid-term budget in the National Assembly
yesterday.
Mid-term budget highlights ...
l An ZW$800 million budget surplus;
l No supplementary budget;
l ZW$58,6 billion revenue collection forecast;
l US$1,2 billion current account surplus
projection;
l 4,5% GDP decline;
l 300% year-end inflation forecast;
l Minimum tax threshold increased to
ZW$5 000 from ZW$2 000 per month;
to support countries in their response to
Covid-19. The bulk of the resources which
Mozambique will receive will be chan-
nelled towards the agricultural sector, to
cushion its populace from looming hunger.
In April, Zimbabwe also missed out on a
US$500 million debt relief fund launched
by the International Monetary Fund (IMF)
to bolster efforts of the world’s 25 poorest
countries to tackle the coronavirus.
At that time, the Treasury boss pleaded
for a US$200 million rescue package from
multilateral lenders but he was rebuffed.
ZW and discourage speculative demand for for-
eign currency.”
Growth across the economic spectrum
would remain depressed, Ncube said, as Zim-
babwe’s comatose economy takes a battering
from the impact of the global pandemic, which
will see the global economy shrinking by 5,2%
according to the WB.
The mining sector, which accounts for 60%
of foreign currency receipts, is expected to
shrink significantly throwing into disarray plans
to rake in US$12 billion from mineral exports.
The sector has not been spared from the rav-
ages of prolonged power cuts, limited foreign
currency and widespread job losses militating
against the economy.
Ncube said: “Therefore, growth for mining
sector is now projected to slow-down to -4,1%
in 2020, reflecting the impact of Covid-19 and
other challenges evolving around retentions.
These include erratic power supply and loss of
skills in the mining sector.”
The manufacturing sector, reeling from a
myriad of challenges, is also projected to shrink
l Adjustment of income tax bands to begin at
ZW$5 001 and ending at ZW$100  000, above
which the highest marginal rate of 40% will
apply effective August 1, 2020;
l 2% tax extended to foreign currency trans-
actions as low as US$5;
l 10,8% decline forecast for manufacturing
sector; and
l 4,1% decline forecast for mining sector.
Notably, the mining sector, which ac-
counts for 60% of Zimbabwe’s export
earnings, will shrink by 4,1% as produc-
tion tumbles due to Covid-19-induced
pressures.
Tourism is seen shrinking 7,4% as the ef-
fects of the pandemic kick in, with global
arrivals set to tumble by 97% by year end.
The Confederation of Zimbabwe Indus-
tries has warned of widespread job losses
and a sharp decline in industrial output
as the economy takes a battering from the
pandemic.
by -10, 8% from an initial growth target of 1,9%.
With most countries currently undergoing
varying phases of lockdown that have restricted
travel, Ncube cautioned that the tourism sector
would decline by 7,4%. Global travel arrivals will
drop by 97% between March and April, accord-
ing to the United Nation Tourism Organisation
(UNWTO).
“Zimbabwe’s foreign tourist arrivals followed
the global path to April 2020 and average hotel
occupancy rates, which had peaked to 33% in
February from 27% in January, dipped to a low
of 3% in March 2020,” Ncube said.
With little fiscal space to manoeuvre, the
Treasury boss presented a ZW$63,6 billion
2020 budget against projected revenue inflows
of ZW$58,6 billion.
Battling to extinguish a US$8,094 billion
public debt, Zimbabwe has also been shut out
by multilateral lending institutions, which have
emphasised that the country should implement
sweeping economic reforms to set its trou-
bled economy on a firm recovery and growth
trajectory.
Tense Mnangagwa orders
Ncube to arm riot police
From Page 1
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-
es in the country over the past few weeks.
All members agreed that the current level
two was not sustainable and we needed to
be stricter in enforcing the lockdown if we
are to avoid a total catastrophe. Everyone
blamed the police for the failure since peo-
ple are now moving around so freely as if
there is no deadly pandemic in our midst,”
an official said.
“So as this discussion went on, the Presi-
dent himself took issue with Kazembe and
asked him to explain what the problem
really was. Mnangagwa said from what is
obtaining on the ground, it appears there
is general fatigue in terms of efforts to fight
the spread of the coronavirus. People are
not following the lockdown rules and are
highly mobile.
“In his response, Kazembe told the meet-
ing that he has held meetings with senior
police officers over the same concerns in
the past two weeks and one thing which
they have consistently raised as being the
biggest hindrance was the shortage of ve-
hicles and lack of fuel. He said ZRP bosses
have indicated to him that they are relying
on a handful of old trucks which suffer fre-
quent breakdowns.
“He also said they indicated that they
were in need of a new fleet of smaller cars in
addition to trucks as well as related crowd
control equipment in the event some turn
rogue. Kazembe also told the meeting that
the ZRP bosses indicated in their meetings
that, in addition to the vehicles, they would
also require constant supplies of fuel in or-
der to be able to move around.
“So after he had spoken at length, the
President then gave an instruction to Fi-
nance minister Mthuli Ncube to treat the
matter as a case of emergency and avail
funds for the purchase of the vehicles for
the police and related equipment which al-
lows them to enforce the lockdown regu-
lations more efficiently. He (Mnangagwa)
was saying it’s better to spend on these ve-
hicles if they are going to help save lives. He
also indicated that the informal sector will
soon be closed since it has been identified
as the biggest driver of Covid-19 cases.”
Officials further said consultations have
already begun to establish how many ve-
hicles the police would require and deter-
mine the amount of money to be released
by Treasury.
Mnangagwa’s administration has been
widely criticised for its misplaced priorities
in terms of expenditure.
It continues to splurge millions of United
States dollars on luxury vehicles for min-
isters, legislators, army officials and senior
bureaucrats.
According to another source, Mnangag-
wa also took to task the Minister of Public
Service, Labour and Social Welfare, Paul
Mavima over the situation in public hos-
pitals and clinics, which are virtually de-
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
by 50%, in addition to a monthly US$75
Covid-19 allowance for three months. Civil
servants’ representatives rejected the offer
as paltry and vowed to press on with the
strike.
“Mnangagwa basically wanted to know
why it was taking too long for Mavima to
conclude the tripartite negotiations so that
things can start moving. He indicated that
government only offered them the US dol-
lar allowance because he hoped that by
then the TNF (Tripartite Negotiating Fo-
rum) negotiations would have been con-
cluded,” the official said.
Mavima reportedly said in response that
the negotiations between the government,
labour and business are ongoing and would
hopefully conclude soon.
“The minister said we are still in nego-
tiations and an agreement was yet to be
reached. He said he was still negotiating
with civil servants’ representatives and
hoped to conclude those negotiations as
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
Ncube avoids supplementary budget
Melody Chikono
Finance minister Mthuli Ncube yester-
day said there will be no supplementary
budget as 54% of budget votes had gone
unutilised.
Presenting a mid-term budget and
economic review statement in the Na-
tional Assembly, he underscored the
pressing issues plaguing the economy,
including currency volatility and gal-
loping inflation although he insisted the
country had recorded an ZW$800 mil-
lion budget surplus.
Ncube said year-on-year inflation is
projected to end the year at 300%.
Overall, he projected that the current
account would remain in surplus in 2020
at US$1,2 billion, mainly driven by sec-
ondary income and the goods account as
well as measures on the containment of
non-essential consumptive imports.
This, he said, was an improvement on
the US$921 million surplus recorded in
2019.
“Resultantly, for the period January to
June 2020, a budget surplus of around
ZW$800 million has been realised. This
takes account of outstanding payments.
This Mid-Term Budget and Economic Re-
view takes stock of budget and economic
performance during the first half of the
year. Ministries have on average utilised
46% of their votes as at June 2020,” Ncu-
be said.
NRZ re-tenders farming project
Bridget Mananavire
THE National Railways of Zimbabwe
(NRZ) has re-tendered a lucrative farm-
ing project on its farm in Matabeleland
South after frustrating its private partner
in the agricultural business, PKD Malindi.
NRZ principal property manager,
identified in official documents only as
L Jiyane, wrote to the owner of PKD Ma-
lindi, Pathakahle Dube, advising him to
submit his project proposal on the use of
Woolendale Farm in Gwanda, stating that
the previous agreement had expired, an
assertion, which the partner is disputing.
This is despite the fact that the project
had failed to take off as a result of illegal
settlers who had taken over the land.
Efforts by Dube to take legal action
against the settlers were fruitless as the
NRZ, who are the owners of the land, re-
fused to jointly sue the villagers.
The embattled state enterprise, which
is seeking a fresh investment boost after
cabinet terminated its US$400 million
revival project with the Diaspora Infra-
structure Development Group (DIDG), is
also claiming to have terminated a joint
venture agreement with PKD Malindi for
the use of Woolendale Farm.
The farm was occupied by illegal set-
tlers, scuttling plans by PKD Malindi
to conduct profitable business on the
property.
Dube, a former Zimbabwe People’s
Revolutionary Army (Zipra) ex-combat-
ant, has been seeking to recoup the mon-
ey he invested in the agricultural project,
which was initially earmarked to com-
mence in 2003.
However, the NRZ says it is only inter-
ested in signing a new agreement.
“As noted to you in a number of let-
ters from NRZ to yourselves and as also
highlighted in various interactions we
have had with you Mr P Dube, the joint
venture agreement between PKD Ma-
lindi and the NRZ in respect of the above
property expired,” the letter from Jiyane,
dated May 26, 2020, read.
“We note your continued interest in
further developing your proposal on your
initially envisaged project. We therefore
kindly request you to submit to us your
detailed proposal of your planned project
for our consideration.”
Jiyane also requested several docu-
ments from Dube, including the pro-
posed initial investment, financial per-
formance, returns to stakeholders, proof
of similar projects, audited financial
statements and other company and fi-
LOCAL NEWS
“This also implies that 54% of the origi-
nal 2020 Budget remains unutilised. This
enables us to operate to the end of the
year as we re-allocate to cover the criti-
cal needs, especially those related to Cov-
id-19 and social protection. This position
enables us to avoid tabling a supplemen-
tary budget, given our current levels of
spending.
“Treasury will be dealing with arising
expenditure pressures as we consolidate
our fiscal position during the remainder
of the year, taking account of revenue
performance against inescapable repri-
oritised expenditures.”
At a time the economy has virtually
self-redollarised amid runaway parallel
market rates and galloping inflation, ana-
lysts said Ncube contradicted himself by
pointing out that inflationary pressures
continued to undermine budgeted pro-
visions — including the cost of providing
public services — yet he made no budg-
etary adjustments to cater for that.
Despite companies’ revenues declin-
ing, Ncube painted a rosy picture of
state revenues which are seen shooting
up to ZW$34,2 billion against a target of
ZW$32,1 billion, resulting in a positive
variance of ZW$2,14 billion or 6,7% of
projected revenues.
The 2020 revenue collection was pro-
jected at ZW$58,6 billion, comprising tax
revenues of ZW$57,6 billion and non-tax
revenue of ZW$1,1 billion.
NRZ head offices in Bulawayo
nancial documents.
Dube said the settlers’ refusal to vacate
Woolendale Farm, measuring 1 264 hec-
tares, stalled agricultural projects ranging
from cattle breeding, poultry production,
market gardening and dog training.
He said he had attained all requisite
papers to prove that the joint venture
between the NRZ and his company still
exists and believes he has strong grounds
to be on the land, including certificates
from the Deeds Office and Ministry of
Finance.
The Lands, Agriculture, Water and Ru-
ral Resettlement Ministry on January 29
this year wrote a letter informing PKD
Malindi that the farm had not been taken
over by the government for land resettle-
ment, confirming the farm was still un-
der NRZ ownership.
“We have checked our land database
and observed that the farm in ques-
tion belongs to the National Railways of
Zimbabwe and was never acquired by
government for land resettlement pur-
poses,” reads a letter signed by D Tshuma
on behalf of the permanent secretary in
the Ministry of Lands.
While there have been expectations
to address the pressing issue of subsidies
which have contributed to inflation, Ncu-
be made no intervention despite reveal-
ing that the bulk of the current expendi-
ture, estimated at ZW$19,7 billion, was on
employment costs (inclusive of pension),
subsidies, social benefits, goods and ser-
vices as well as transfers to grant-aided
institutions.
Projecting 4,5% GDP decline in 2020,
against the initial budget projection of 3%
growth, Ncube also forecast 10,8% de-
cline in the manufacturing sector in 2020
against the original projection of 1,9%.
Mining is expected to decline by 4,1%
in 2020, reflecting the impact of Covid-19
and other challenges pertaining to forex
retention thresholds.
There was little respite for workers,
with Ncube adjusting the income tax-free
threshold from ZW$2 000 to ZW$5 000.
The Treasury boss said companies
that make donations to medical facili-
ties owned by the government, councils
or religious organisations will now get
tax deductions of up to the equivalent of
US$100 000.
Donors who buy equipment or drugs
for these facilities, or fund the construc-
tion, extension or maintenance of these
hospitals qualify for the tax deduction.
Starting next month, Ncube is offering
VAT exemptions for accommodation for
domestic tourists for 12 months.
The Zimbabwe Land Commission ex-
cused itself in the protracted squabble
that has dragged on for nearly 15 years, a
November 2019 letter seen by this news-
paper shows.
“Section 9(3)(b)(i) of the Land Com-
mission Act provides that the Commis-
sion shall not investigate a complaint or
dispute where the action or omission to
which the complaint or dispute relates is
the subject matter of proceedings before
any court of competent jurisdiction.
“Kindly be advised that the Commis-
sion is unable to handle the matter since
it was handled before High Court of Zim-
babwe case number HH 289/2009 and
has been decided by the court. Your case
with us has thus been dismissed by the
commission on the said grounds,” the
letter written by the commission’s acting
general manager, one P Chamunorwa,
reads.
In response to summons by the com-
mission, the villagers said they ap-
proached the office of Vice-President
Kembo Mohadi and the Member of Par-
liament of the area to seek political re-
course on the matter.
Dissecting the
mid-term budget
Victor Bhoroma (economic analyst)
l Economy declined by 4,5% in the first half of 2020.
The figures are in sync with the African Development
Bank estimates which point to 8% economic de-
cline for Zimbabwe as a result of Covid-19.
l Delivered maize, at 908 000 metric tonnes in
the 2019-2020 season, falls short of the 2,1 million
metric tonnes required for household and industrial
use, which means Zimbabwe will continue facing
starvation. There is a need for grain imports of close
to one million metric tonnes.
l Inflation flaring up revenue with tax revenue
performance quite impressive at ZW$34,22 bil-
lion. Value-added tax (ZW$7,8 billion) and income
tax (ZW$11 billion) contributed 55% of the revenue
while intermediated money transfer tax contributed
ZW$976,9 million.
l A budget surplus of ZW$800 million from total
expenditure of ZW$30 billion. The surplus comes at
the expense of a living wage for civil servants, poor
service delivery in healthcare and poor investment
in infrastructure that got only ZW$2,1 billion from a
budgeted ZW$12 billion.
l Year-on-year inflation is expected to end the year
at 300% (triple figures). This means Treasury may
be creating room for sustained growth in money
supply and increases in prices of basic commodities.
l Foreign direct investment inflows plummeted
from US$111,6 million to US$71,2 million, highlighting
Zimbabwe’s negative perceptions as an investment
destination.
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
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.
l Imports declined by 4% to US$1,875 billion while
exports declined by 2% to US$1,535 billion, leav-
ing a trade deficit of US$340 million. Exports were
affected by the Covid-19 lockdown and other eco-
nomic constraints. There will be more pressure on
foreign currency to import commodities going for-
ward while foreign currency shortages are impacting
imports.
Brett Chulu (economic analyst)
l A budget surplus of ZW$800 million. Critique:
Quasi-fiscal expenditures. Total silence on the re-
cently abolished gold incentive. The budget surplus
is misleading.
l The minister is over-optimistic that inflation will
slow down by over half to 300% by the end of the
year, based on the naive hope that fiscal consolida-
tion and a slowdown in money supply growth will
instil confidence. He conveniently ignored the rat-
tling of confidence by his political colleagues who
are destroying the free markets.
l There is a decline in the output of major minerals,
cash crops (tobacco, soya beans) and grains.
l 54% of budget votes have gone unutilised. There-
fore, there is no supplementary budget request for
now.
l A current account surplus. Critique: Imports are
depressed due to forex shortages and the Covid-19
pandemic.
l GDP growth projection revised downwards from
3% to -4,5%. Critique: The minister avoided quot-
ing the recent World Bank projection of -7,4%. How
has the dire picture Ncube projected in his infamous
letter to the IMF of a two-year cumulative GDP con-
traction of -15% to -20% changed? Ncube thinks
his ZW$ 18,2 billion will temper the dire picture he
gave to the IMF.
l Complete silence on the closure of the Zimbabwe
Stock Exchange yet he is buoyant about the success
of the Victoria Falls Stock Exchange.
l It seems he does not want to upset the rul-
ing Zanu PF’s powerful groups. It could be that he
wants to keep the bizzare decision out of a widely
circulated document, hoping investor attention will
be diverted away from a decision that severely un-
dermines investor confidence and directly destroys
his VFEX signature project.
l They talk of Pfumvudza method as the key driver
of the Presidential Inputs Scheme Programme, but
without the supporting irrigation infrastructure, its
success is not assured. To pin the success of the
Pfumvudza programme on rain-fed cropping is
unwise.
l Silence on cartels and Green Fuel’s ethanol
monopoly.
l He is aware of gold leakages, but offers no strat-
egy to deal with the menace.
l Ncube’s overall tone: Budget is under control and
a better second half of the year are the sub-texts of
the entire budget review.
 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
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
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
is offloading its stake, among several
other issues.
MC: Why have you decided to offload
your stake in ZB?
AM: The move is designed to create a
leaner and more manageable portfolio that
can create stakeholder value and consist-
ently pay sustainable dividends to Nssa for
the benefit of pensioners and other vulner-
able groups such as orphans, widows and
widowers. Nssa is a significant investor in
various banking institutions which compete
against each other, while at the same time
demanding significant capitalisation assis-
tance of more than US$3 million. Nssa does
not have this capacity. The pension fund
holds significant shareholding in FBC, ZB,
CBZ and wholly owned subsidiary, NBS. The
authority’s strategic focus is a combination
of divesture and consolidation to reduce
duplications, improve efficiency and mini-
mise capital requirement while creating a
formidable financial sector investment that
guarantees shareholder returns, value pres-
ervation and with a strategic fit into Nssa’s
mandate.
MC: Is your decision going to be confined
to the ZB stake or are there plans to do the
same in CBZ and FBC?
AM: There are no plans to do the same to
CBZ and FBC.
MC: The question which has raised the red
flag is why you are offloading in a hyperin-
flationary environment. Why now? Will
you not lose out?
AM: The pricing and consideration has
been carefully designed to retain value in
real terms for the benefit of the pension-
ers and contributors. The stake is not be-
ing sold for purely monetary consideration
and the consideration has been carefully
thought out to avoid monetary loss. We are
well aware of the dangers of loss of value in
a hyper-inflationary environment and this
has been taken care of.
MC: What is the implication of this trans-
action on pensioners’ investments and its
impact on the banking sector at large?
AM: The move is designed to create a
leaner and more manageable portfolio
that can create shareholder value and con-
sistently pay sustainable dividends to the
pension fund. The realignment process is
expected to unlock additional funds that
will be channelled towards boosting ben-
efit payouts. Nssa is committed to improv-
ing the benefit levels of its pensioners and
to cushion them from economic hardship.
Since April, the authority has been paying a
monthly bonus to its pensioners as part of
interim measures to cushion them against
the rising cost of living. We have engaged an
actuary to carry out an actuarial valuation
to establish a sustainable yet livable pension
level. Of course, a transaction of this nature
will need to be approved by the various reg-
ulatory authorities, including the Reserve
Bank of Zimbabwe.
MC: The Zimbabwe Congress of Trade Un-
ions says this transaction was not discussed
by the Nssa board, you did not consult key
stakeholders and you do not have a lawful
board resolution to exit the ZB investment.
What is your comment?
AM: Investments at Nssa are governed
by an Investment Policy and the Public Fi-
nance Management Act [22:19] with respect
to investments classified as significant. The
authority followed all the required govern-
ance procedures. Everyone who needed to
be consulted was consulted. All board reso-
lutions are in place.
MC: Did the government or line minis-
try approve your investment realignment
strategy, given that the state is an interested
stakeholder in Nssa?
AM: While internal procedures have been
completed, consultations with regards the
Public Finance Management Act [22:19] are
in progress and until these are concluded
we cannot divulge much regarding this.
MC: There is market speculation that ZB
and CBZ are going to be merged by the en-
INTERVIEW
Offloading ZB stake a
strategic move — Nssa
tity buying your stake. Why would you sell
now and yet you already have an equity
stake in CBZ?
AM: The transactions are being brokered
by agents with the underlying beneficial
owners only revealed when the parties have
signed non-disclosure agreements and are
ready to consummate the deal. This is in the
interest of evaluating the transaction based
on merit. As things stand, Nssa is not aware
of the parties that are represented by the
respective agents or what they intend to do
with the stake.
MC: A listed company requires a caution-
ary statement if a transaction of this magni-
tude is about to happen involving the shares
of a listed stock. Is Nssa not in breach of
Zimbabwe Stock Exchange regulations?
AM: This is a transaction between share-
holders who are not bound by listing re-
quirements. Similar transactions have
been executed in the market between and
among shareholders which does not re-
quire the company itself to issue cautionary
statements.
MC: You have investments in ZB, CBZ and
FBC. What criteria did you use to choose to
sell ZB Bank and how best can you describe
the historical performance of ZB Financial
Holdings (ZBFH) as an investment asset?
AM: Nssa conducted a detailed confiden-
tial expert evaluation of its investments in
the financial sector before it settled on this.
The move is designed to create a leaner and
more manageable portfolio that can create
shareholder value and consistently pay sus-
tainable dividends to the pension fund.
MC: There is currently a shareholder dis-
pute at ZBFH involving Nicholas Vingirai's
Transnational Holdings Limited. How will
your exit from ZB Bank impact this? Did the
dispute influence your decision to offload
the stake?
AM: The decision by Nssa was not influ-
enced by this at all. Nssa is not involved in
any dispute at ZB. Nssa is only influenced by
the desire to safeguard and grow value in its
investments.
MC: How will your intended exit from
ZBFH affect management and staff, how
are their interests being protected? We have
seen loss of jobs, management changes and
so on when transactions of this magnitude
happen.
AM: Nssa as a provider of social security
considers job security of employees as top
priority. Modalities will be discussed and
agreed by the parties as part of negotiations
to conclude the transaction.
MC: What are you going to do with the
proceeds of the disposal, and do you now
have benchmark returns that you expect
from listed equities?
AM: The realignment process is expect-
ed to unlock additional funds that will be
channelled towards boosting benefit pay-
outs. The pricing and consideration has
been carefully designed to retain value in
real terms for the benefit of the pensioners
and contributors. The stake is not being sold
for monetary consideration and the con-
sideration has been carefully thought out to
avoid monetary loss.
MC: Prices of basic commodities have
been going up daily. How much are pen-
sioners getting now. Are there plans to in-
crease those amounts and perhaps pay pen-
sions partly in US dollars?
AM: Nssa’s mandate is to provide social
security for its members and the general-
ity of Zimbabweans. As such, we are always
mindful of the plight of our beneficiaries and
will always strive to pay them decent bene-
fits. Just in the last year alone, Nssa awarded
the following: a discretionary bonus equiv-
alent to a month’s pension to all pension-
ers in July 2019; reviewed the minimum
pension from ZW$80 to ZW$200 for POBS
(Pensions and Other Benefits Scheme) and
ZW$240 for APWCS (Accident Prevention
and Workers Compensation Scheme) in
October 2019; a bonus equivalent to a 13th
cheque in November 2019 and most recent-
ly another discretionary bonus equivalent
to a month’s pension in April, May and June
2020.
In July, we awarded them another discre-
tionary bonus equivalent to 150% of their
monthly pension. All this was done to cush-
ion the pensioners against the rising cost
of living. With the recent implementation
of reforms that saw the contribution rate
increased from 7% to 9% split equally be-
tween employer and employee, as well as
the increase in the maximum pensionable
salary from ZW$700 to ZW$5 000, we are
now able to effectively deal with the core
issue of benefit payouts. We have already
instructed our actuaries to conduct an ac-
tuarial valuation to determine the level of
benefits that the scheme can afford to pay
with implementation of the necessary re-
forms. As usual, the reviews will be taken
with consideration on the long-term sus-
tainability of the schemes.
Nssa is also evaluating the feasibility
of paying part of the pensions in US dol-
lars, in line with what government is do-
ing for those on the Public Service Pension
Scheme.
MC: Tell us briefly about Nssa’s current
and future investment plans.
Nssa’s investments are spread across sev-
eral asset classes covering equities, proper-
ties and fixed income. The strategic drive is
to generate sustainable investment income
to fund benefit improvements while grow-
ing the investment assets in real terms. So
far, the portfolio has managed to outperform
the ZSE, inflation and exchange movements,
implying that the authority has managed to
create positive value. The portfolio’s growth
since the beginning of the year is higher
than inflation and has also outperformed
movements in the exchange rate imply-
ing that the US dollar value of the portfolio
has increased. Some of Nssa’s strategic in-
vestments that have entered the top 10 ZSE
stocks include RTG, CBZ and FBC. The fu-
ture strategic thrust is to invest in real assets
that generate income, growth and impact
on the social welfare of pensioners. As part
of the transformative journey, the authority
has earmarked the agriculture value chains
as part of our impact investment strategies.
One of the key objectives of Nssa is to in-
vest in companies and projects that gener-
ate substantial social and economic impact
on commercial basis. According to the Food
and Agriculture Organisation, “Agricultural
activities provide employment and income
for 60-70% of the population, supply 60%
of the raw materials required by the indus-
trial sector and contribute 40% of total ex-
port earnings and contribute approximately
17% to Zimbabwe’s GDP”.
MC: In view of Covid-19 infections, is
Nssa conducting inspections at workplaces
to ensure they follow the minimum preven-
tion standards?
AM: In line with our mandate to promote
health and safety at work, we are conduct-
ing joint operations with the Ministry of
Public Service, Labour and Social Welfare
to inspect whether companies are comply-
ing with Covid-19 guidelines as set by the
Ministry of Health and Childcare. Unfortu-
nately, we sometimes face resistance from
some people due to a general fear of regu-
lators, but regulation is not always there to
arrest you, but to assist you. We are also
facing challenges with the informal sec-
tor, which is very difficult to regulate and to
access. Our mainstay of interventions has
been promotions rather than enforcement
because when one goes with a stick people
tend to be very resistant. Nssa embraces the
notion of social dialogue in pursuit of over-
coming challenges employers and employ-
ees face. The challenge for business is how
to strike a balance between the safety of the
worker and productivity. It is about surviv-
ing as a business and ensuring that workers
continue to earn their wages. Unfortunate-
ly, some of the current work processes put
the worker at risk in terms of Covid-19 and
those must be re-engineered. We have seen
the number of cases continue to increase
and the numbers have been growing expo-
nentially across the globe. The workplace
is where we spend most of our time and
therefore an area where we are put at risk.
The workers are equally important play-
ers in the fight against the virus and this
calls for a sense of responsibility on every
individual. The simple things that have been
shown to be effective against the Covid-19
lie within the individual—issues such as so-
cial distancing and hand washing. The most
important right workers have is the respon-
sibility to monitor their own health. Once
you suspect that you have symptoms of
the virus, or you have been in contact with
someone with Covid-19, you must self-iso-
late. You should be able to protect your co-
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
INANCE minister Mthuli
erupted in unison: “Where? Where?” The legislators were, in effect,
Ncube yesterday present-
telling him they did not believe what he was saying. Most MPs stay
ed the mid-term budget
in their constituencies and so are in tune with the economic hard- and review statement to
ships on the ground. the National Assembly.
Judging from their reaction, the legislators were puzzled, just like A budget is supposed to be the
most important policy instru-
everyone else, by Ncube’s claim that the government has rolled out
ment of any government, which
social safety nets in urban areas. explains why everyone is always
The Treasury chief said social protection expenditure from Janu- keen on scrutinising it.
ary to June this year totalled ZW$902,2 million. This amount, he ex- The general verdict on the min-
plained, included expenditure on drought mitigation, cash payouts, ister’s statement is that it was un-
derwhelming in its failure to offer
schools fees assistance under the Basic Education Assistance Mod-
anything meaningful to poverty-
ule, and other measures. stricken Zimbabweans. The el-
Livelihoods are uppermost on everyone’s mind. Food security is ephant in the room is the issue
still dire. The Finance minister revealed that 908 000 metric tonnes of livelihoods. The government
of maize were produced in the 2019-2020 summer cropping sea- cannot — in all seriousness —
brag about a “budget surplus” of
son, which fell short of the 2,1 million tonnes needed every year.
ZW$800 million when civil serv-
It means grain imports are necessary. This will put pressure on the ants are expected to survive on
fiscus. slave wages.
A lot of taxpayers’ money has gone into agriculture, therefore the There is a 17-year-old orphan in
maize shortfall vindicates those who have criticised the misman- Nyanga who was bitten by a dog
and the government failed to pro-
agement, incompetence and corruption that have characterised
vide the required four injections
publicly funded agricultural programmes. costing US$140. A social welfare
Although it is the job of the Treasury chief to hype up the coun- officer ended up pleading for fi-
try’s economic prospects, every projection has to be tempered with nancial assistance from a non-
a healthy dose of realism. Ncube spoke enthusiastically about the governmental organisation.
What kind of country have we
proposed Victoria Falls Stock Exchange (VFEX). Tellingly, he was
become? There is no money to buy
silent on the Zimbabwe Stock Exchange which the government a rabies injection for an orphan in
suspended at the end of June. There is clearly a disconnect between Nyanga, but there are millions of
the lofty wishes of public officials and the realities of Zimbabwe’s US dollars to hire a private jet to
economic crisis. fly a vice-president to China for
world-class treatment? Whose
The government can go ahead and dangle the most shiny incen-
country is this anyway? Where is
tives before the eyes of prospective VFEX investors, but here is the the compassion? Four-year-old
bottom line: as long as the all-important question of trust is not ad- children are now scrounging for a
dressed, the bourse cannot achieve the intended objectives. Which living by selling sweets and ciga-
foreign investor can trust the Zimbabwean government? rettes at street corners in the town-
ships. This is happening in a coun-
The shoddy treatment which the government is subjecting Old
try with world-leading reserves of
Mutual Limited to is nothing short of catastrophic. President Em- gold, platinum, diamonds, chrome
merson Mnangagwa is wasting millions of US dollars in taxpayers’ and lithium. Can you wrap your
funds hiring public relations companies in Washington DC. This is brain around that?
money down the drain, as long as his government continues behav- While I concede that every
country is affected by Covid-19,
ing as if the world owes Zimbabwe a living.
there is no denying the words
This country is competing with every nation on the planet for a of the political scientist Francis
limited pool of investment. Irrational and arbitrary actions, such as Fukuyama who correctly observes
the suspension of the Zimbabwe Stock Exchange, is the worst ad- that the worst affected nations are
vert for investment promotion you can ever imagine. those deficient in the following
three qualities: leadership, social
Editor’s
Memo
brezh
Malaba
bmalaba@zimind.co.zw
trust and state capacity.
There is always a danger that the
ministers who lead a pampered
life in the lap of taxpayer-funded
luxury are totally alienated from
the everyday hardships of the av-
erage citizen. The wheeler-dealers
of Harare are still building jaw-
dropping mansions, importing
fancy supercars, sipping on whis-
ky and buying palatial homes in
South Africa, Mauritius and Dubai.
Some of this money is clean, but
most of it flows from the prover-
bial “gravy train” — the sum total
of shady public procurement ten-
ders — as well as from laundering
and outright smuggling.
A person witnessing the ob-
scene display of ill-gotten riches
in the leafy suburbs of the “Sun-
shine City” would be forgiven for
believing in the fallacy that most
Zimbabweans are swimming in US
dollars. But the reality, of course,
is that these people who are liv-
ing large constitute just 1% of the
country’s entire population.
For the 99%, life is an end-
less struggle. There are very few
households whose monthly in-
come exceeds US$30, yet a bottle
of cooking oil costs US$3.
Zimbabwe is on edge, as it grap-
ples with the steepest economic
decline in living memory. The im-
plosion, accelerated by the Cov-
id-19 lockdown, is unprecedented.
Stagflation is with us. We are
being buffeted by the relentless
headwinds of a triple whammy:
escalating inflation and a collaps-
ing exchange rate; declining em-
ployment, real wages and con-
sumer spending; and a massive fall
in gross domestic product.
In the absence of an external
economic bailout package, life can
only get tougher for 99% of our so-
ciety. Bankruptcy — at individual,
corporate and national levels — is
real. The risk of insolvency resem-
bles the grim reaper, swinging a
gigantic scythe above our heads.
Tony Hawkins, a professor of
economics at the University of
Zimbabwe, was remarking the
other day how everyone seems
to be ignoring the massive storm
clouds of insolvency on the hori-
zon. CBZ Bank, for instance, has
revealed that it has a US$451 mil-
lion legacy debt with the Reserve
Bank of Zimbabwe.
“That exceeds CBZ’s market
capitalisation and in Zimdollar
terms it is almost ZW$28 billion,
against the central bank’s net asset
base of less than ZW$13 billion.”
Hawkins has highlighted the
point that there are many compa-
nies with substantial offshore li-
abilities in US dollars which, when
converted into local currency at
the official rate — regardless of
the more realistic parallel rate —
would overwhelm the firms.
At national level, Zimbabwe’s
official public and publicly guar-
anteed debt stood at US$8,1 billion
as at December 31, 2019. When
you factor in the US$3,5 billion
recently agreed compensation to
dispossessed farmers, the foreign
debt is almost equal to the size of
the gross domestic product. I have
serious misgivings over the offi-
cial debt figures and you can read
more about my thoughts on this by
running a Google search on my re-
cently released 90-page investiga-
tion into “Southern Africa’s Debt
Conundrum”.
In the main, Zimbabwe’s multi-
faceted crisis is self-inflicted. Only
when we begin talking honestly
and openly about these issues will
we chart a new course.

Politburo meddling disruptive, fuels market discord

Z
ANU PF Politburo bigwigs are on a
renewed collision course with the
state over their continued entan-
glement in government business.
A fresh power struggle is emerg-
ing in Zanu PF, with Politburo officials, who
were retired from government to the party
headquarters, flexing their muscle and
making decisions, which could lead to eco-
nomic suicide.
It has since emerged that the initial deci-
sion to shut down the Zimbabwe Stock Ex-
change and ban mobile payment platforms
came from the Politburo, leading to Secre-
tary for Information, Publicity and Broad-
casting Services Nick Mangwana issuing a
decree to that effect. This was done without
consultation with Finance minister Mthuli
Ncube and the regulatory authorities.
The statement sent shockwaves across the
country and beyond, especially as it came
from an organ of the ruling party, rather
than from the regulatory authorities.
Reserve Bank of Zimbabwe Governor
John Mangudya had to intervene and hur-
riedly issued a statement the following day,
which watered down the Mangwana state-
ment, by directing that individual transac-
tions would continue. This meant mobile
money services would continue uninter-
rupted for the general public.
It seems the interference is being driven
by loss of confidence in the technocrats ap-
pointed by President Emmerson Mnangag-
wa to resolve Zimbabwe’s tragic economic
downturn. The Politburo members are pan-
icking as they fear losing power through so-
cial unrest. Such moves signify desperation,
where economically illiterate party officials
make reckless decisions that could cost
the country an investment like Old Mutual
Limited.
Candid
Comment
faith zaba
fzaba@zimind.co.zw
However, the Politburo was not done. It
issued a statement announcing that a pro-
posal had been made at a meeting on Fri-
day to “eject” Old Mutual from the financial
system.
“The Politburo welcomed the decision to
eject Old Mutual from the financial system
of this country and the closure of EcoCash
agents who had caused runway inflation
through illegal parallel exchange rates,”
Zanu PF acting spokesperson Patrick Chi-
namasa said on Tuesday.
This caused confusion in the financial
sector, as Old Mutual is a blue chip stock.
The Politburo’s combative posturing
could push out Old Mutual Zimbabwe. If Old
Mutual Zimbabwe leaves the market, this
could further scare investors. Foreign direct
investment into the country has plummeted
from US$717 million in 2018 to US$259 mil-
lion last year.
The meddling of the Politburo comes as
no surprise, given the large number of for-
mer ministers that sit on the body, perhaps
struggling to adapt to life outside of govern-
ment. Politburo’s posturing undermines
ministers’ bid to turn around the economy.
Zanu PF has squandered the goodwill of
long-suffering Zimbabweans and this in-
terference not only damages the country,
but the party itself. Chinamasa, a former fi-
nance minister, should know that this kind
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
Chulu
Column
AN economic cyclone is ravag-
ing the country — almost entirely
man-made.
A trusted economic adviser
to the powers that be admitted
last week that the Zimbabwean
economy does not follow normal
economic laws. Such admissions
embolden political elites to proffer
any solution they deem fit if trust-
ed economic fundis admit that
they, too, do not fully understand
the behaviour of our economy.
So all we are witnessing are eco-
nomic experiments, hoping some
of the experiments will succeed.
We have just invented a new field
of economics: experimental eco-
nomics. Its central thesis is: what
happens when we burn the house
if we suspect there is a snake in
the house? Its corollary is: can we
fix an economy if we unleash a
hurricane to destroy free markets
and competition?
Fuel, auction question
The most glaring anomaly in the
recently launched forex auc-
tion has been the absence of fuel
bids for the first three auctions.
The fourth and latest auction did
have winning bids for fuel. The
report of the winning bids for the
fourth auction lumped electric-
ity, gas and fuel in the same cat-
egory, with a combined amount of
US$528 200, translating to 3,3% of
the total winning bids. This means
the proportion of fuel bids to the
total bids is below 2%.
Our annual fuel import bill is
about 15% of the total import bill.
If less than 2% of the bids are go-
ing to fuel, it beggars the question
as to where the funding for the
bulk of the forex for fuel imports
is coming from. In fact, the weekly
bids from the auction are less than
the weekly fuel import needs. The
fuel anomaly forces us to review
what the public domain is on the
operation of the forex auction and
on the exchange rate.
We know fuel importers get the
bulk of their pump retail sales in
the local currency. It is evident
that the major fuel dealers are not
bidding for forex on the auction
market. It is surprising since the
guidelines published by the cen-
tral bank at the inauguration of the
auction market spelt out that fuel
was in category one on the import
priority list and thus would be ex-
pected to get priority in terms of
bids for forex.
Why are fuel dealers not go-
ing to the auction market? There
are two possible reasons. The first
possibility could be that fuel deal-
ers are using letters of credit to
import fuel. If this is the case, the
explain this arrangement. More
importantly, we need to know the
exchange rate at which the let-
ters of credit are priced. It is very
important information. The cen-
tral bank has been clear in that
it wants a single-reference ex-
change rate and that reference rate
is to be the auction rate.
The central bank needs to un-
equivocally assure us that the fuel
dealers are getting forex at the
auction rate. The second possibil-
ity could be that the major deal-
ers are getting forex allocations
at preferential rates, well below
the lowest bid rates at the auction
market.
What is more surprising is that
a wide range of bid rates are being
made and are accepted — what is
stopping the big fuel dealers from
making low bids unless if they are
getting much lower rates outside
the auction?
If below-market forex alloca-
tions for fuel are being made, then
we are still having a fuel sub-
sidy that is not recorded as a fis-
cal expenditure, a point the Bret-
ton Woods institutions raised as a
prime area for correction.
Probable below-market fuel
forex allocations could be creat-
ing serious arbitrages that will
sustain the parallel market. We
bring into question the validity of
the forex auction rate based on a
mathematically arrived-at forex
rate (weighted average) instead
of an economically-derived mar-
ket rate if the questionable math-
ematical price excludes a heavy
weight in the form of the fuel sec-
tor. The auction is not satisfying
all bids despite the absence of the
fuel sector.
Stock exchange wager
Three weeks ago, we had antici-
pated that political elites would
double down on their work of
making economically question-
able decisions. It did happen —
the sword of Damocles was un-
sheathed by political apparatchiks
and swivelled towards the head of
the biggest financial player in the
country, Old Mutual.
With characteristic braggado-
cio, the politicians threatened
to expunge Old Mutual from the
Zimbabwe Stock Exchange. This is
unheard off in free markets where
party politicians usurp the role of
exchange regulators and threaten
to delist a company on a stock ex-
change. It is within the purview
of the stock exchange regulator to
professionally investigate any ger-
mane allegations of misconduct by
a member of the stock exchange
and pronounce a commensurate
punishment if the misconduct is
proved.
If Old Mutual is the culprit sin-
gled out, what was the point of
shutting down the entire stock
exchange? The unscientific argu-
ment that Old Mutual is fuelling
the exchange rate through the Old
Mutual Implied Rate is intellec-
tual laziness. Any company that
is listed in another country has an LAST week, the ruling Zanu PF recom-
Ceteris
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
change rates. If implied exchange change (ZSE), while subsequently
rates are the problem, the venom mulling the establishment of a separate Respect Gwenzi
directed at Old Mutual should “forex-based” bourse, where this and
have been spewed at the other other counters will be listed.
dually-listed companies in equal This recommendation comes when government has halted the entire
measure. trading activity on the main board, now in week three. The only other time
Treasury banned the selling of the stock market was halted was in November 2008 at the peak of hyper-
fungible shares (Old Mutual, PPC inflation. Old Mutual is among 57 active counters trading on the ZSE, but it is
and Seed Co) in the vain hope that unique in that its listing on the Zimbabwe Stock Exchange is secondary as it is
it would tame implied rates due to listed primarily on the Johannesburg Stock Exchange in South Africa.
demand depression and thereby For starters, one thing that escapes most commentators on the dynamics
stabilise the exchange rate. It did around Old Mutual’s trading on the ZSE is that the Old Mutual which is listed
not happen; the implied rates kept on the ZSE is not Old Mutual Zimbabwe, but its parent Old Mutual Limited
climbing. The non-logic now is to headquartered in South Africa. It also escapes many that Old Mutual, then
delist Old Mutual so that the im- known as Plc, terminated its primary listing on the London Stock Exchange in
plied rate is not calculated in the 2016, delisted in all the markets where it was present and immediately relist-
hope that without an implied rate ed primarily on the Johannesburg Stock Exchange and on Zimbabwe Stock
from Old Mutual the black market Exchange, among other secondary markets, including the London Stock Ex-
forex rate will fall. We still have change, as Old Mutual Limited in that respective year. These changes were in
two rulers with which to measure line with the group’s thrust to refocus on Africa, which is where its roots are
the implied rate: the listed shares and also its largest market.
of PPC and Seed Co; they will still By listing in several markets, Old Mutual has been able to spread its
give implied rates. Will the poli- shareholding across different markets. This has also allowed respective capi-
tician also take PPC and Seed Co tal markets in which the company has operations to enjoy the benefits of
to the guillotine? If they do not, diversification and risk spread, given the geographical extent on which the
it will turn out Old Mutual is be- underlying asset (operations) is located. By listing in various markets, Old
ing systematically persecuted for Mutual has empowered the respective economies where it maintains a list-
deeper reasons. ing, while deepening respective capital markets for the benefits of locals.
Due to its diversification in different markets, at least 15, in Africa and signifi-
Payments monopoly cant exposure in one of Africa’s biggest economy, South Africa, Old Mutual
The central bank flexed its muscle is typically a rare gem and blue chip with stable earnings, which provides
and ordered that all mobile phone investors across the region with stable dividends and capital appreciation.
payments will have to be done It is very difficult to find any listed stock across the regional exchanges with
through ZimSwitch by August 15, unique features such as those inherent in the Old Mutual counter. It is time
literally gifting a private entity Zimbabwe realised that the listing of Old Mutual Limited on the ZSE ben-
business that has been painstak- efits Zimbabweans more than it does the company. The market is starved of
ingly developed by other players new listings, neither does it really have the capacity to raise hard currency in
over years, with EcoCash now be- capital raises. Old Mutual, for the purposes of listing, can simply do without
ing the main loser. Zimbabwe.
This has effectively created a Let us take Old Mutual into perspective. The stock, just like any other on
payments pipeline monopoly. The the ZSE, has been subjected to country-specific risks, as reflected in the
timeline to adjust is extremely currency turmoil. Rationale and risk-averse investors have factored in the
short. Cassava has been spending impact of inflation and exchange rate loss as part of macro-economic fun-
a fortune to upgrade EcoCash and damentals at the heart of stock valuation. The overall stock market has rallied
its recent investment is literally strongly since the beginning of the year, notching up more than 600% in
going to waste. This is a case of do- Zimbabwean dollar terms and above 100% in US dollar terms. Old Mutual, in
mestic investment being subjected turn, has rallied only 150% over the same period in Zimdollar terms. Going by
to arbitrary and potentially illegal this statistic, it would follow that demand for stocks on the ZSE has generally
treatment over alleged abuses. been higher than Old Mutual share demand in 2020. It is therefore unwise
Why not let legal due process to deduce that Old Mutual’s share rally — seen as a conservative rate when
take its course if a company has compared to the overall market movements — is the driver of exchange rate
breached the law? The impression depreciation. In the least, trading activity in the counter cannot be dubbed
investors, both domestic and in- speculative as it lagged the overall market in the period from January 2020
ternational, pick from such knee- to the end of June. Fundamentally, the rally in stocks is traced to increased
jerk decisions is that the legal sys- liquidity in the market which spurs demand and subsequently prices. In 2020,
tem is not strong enough to protect money supply, as measured through reserve money, has so far grown by
investments. It spooks investors. about 30% while in 2019 reserve money grew by a staggering 350%.
The collapse of the exchange Looked at differently, suppose Old Mutual is ejected from the stock mar-
rate and raging inflation is driven ket and the bourse maintains its strong rally, it would follow that the stock
by weak fundamentals and the al- market would create significant monetary value from stocks appreciation
most complete breakdown of trust sufficing to push the rate as selloffs are consolidated to hard currency. Prac-
in the monetary system. Trust is tically, the value of stock market companies on the ZSE has soared from
not rebuilt by further betraying ZW$29,8 billion in January to ZW$228,7 billion as at end of June 2020. This
trust. You do not use a whirlwind means almost ZW$200 billion in monetary value was created via the stock
to clean up — a whirlwind is in- market in the six-month period to June. Now assume this additional growth in
discriminately destructive and in value is realised through share disposals, it increases liquidity in the economy
its wake is always trail of destruc- and puts pressure on the exchange rate as investors look to solidify their stock
tion and brokenness. market realised gains through hard currency. In essence, with or without Old
Mutual, weak underlying economic fundamentals can potentially continue to
Chulu is a management consultant and spur stock market gains and, in turn, drive exchange rate depreciation.
a classic grounded theory researcher
who has published research in an aca- Gwenzi is a financial analyst and MD of Equity Axis, a financial media
demic peer-reviewed international firm offering business intelligence, economic and equity research. — re-
journal. — brettchuluconsultant@ spect@equityaxis.net
gmail.com.

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10 Zimbabwe independent July 17 to 23, 2020
BELOW is an abridged June in Sub-
Saharan Africa: A free expression
roundup produced by Ifex’s regional
editor Reyhana Masters, based on Ifex
member reports and news from the
region.
Fears confirmed in Cameroon
June started off with the announcement,
by the Cameroonian army, on June 5, of
journalist Samuel Wazizi’s passing. This ad-
mission was made 10 months and 15 days
after his death in detention, by way of a
statement issued by the Cameroonian Min-
istry of Defence.
Military spokesperson Colonel Serge
Cyrille Atongfack claimed Wazizi died of se-
vere sepsis on August 17, 2019 at the military
hospital in Yaoundé, Cameroon’s capital. His
assertion that the family had been informed
of his death is being refuted by them. No au-
topsy was performed at the time of writing,
and the Cameroon Journalists Trade Union,
(SNJC) was still trying to retrieve his body
from state authorities. Voice of America has
reported that Atongfack says the body will
not be handed over to a family member be-
cause it has been sealed.
While the revelation ended months of
speculation, it has also raised many ques-
tions and concerns about the continuing
decline of rights and freedoms in Cameroon,
at many levels. During the UN Security
Council meeting on June 12, Dominican
Republic representative Ambassador José
Singe expressed hope that those responsi-
ble for the death of Wazizi would be brought
to justice, saying “(i)t is highly important
that the Cameroonian authorities can en-
sure that national and international human
rights organisations and the media can work
in the country unhindered.” A few days lat-
er, Unesco director general, Audrey Azoulay
followed suit, expressing her concern and
asking authorities to investigate Wazizi’s
detention and death.
Wazizi was arrested during the height of
hostilities between armed separatists and
government forces in Cameroon. Like many
other journalists and critics, he was accused
of collaborating with the separatists, but this
accusation has never been substantiated. He
was picked up by police in Buea, the capi-
tal of the southwest region of Cameroon,
on August 2, 2019, and handed over to the
military five days later on August 7. It was
the last time he was seen by family, friends
or colleagues.
Local and international press freedom
organisations had repeatedly requested in-
formation on the whereabouts of Wazizi,
who was the popular news anchor of the
independent Pidgin-language station Chillen
Muzik and Television (CMTV). That information
was never forthcoming. His family were not
allowed to visit him, his lawyer did not gain
access to him and his case was postponed on
eight different occasions.
Having made an official request to fol-
low the case, the American Bar Association
pointed out: “Since the moment of Mr
Abuwe’s (Samuel Wazizi) arrest, the Cam-
eroonian authorities have egregiously failed
to comply with the due process standards
established by the ICCPR and African Char-
ter.”
Death of Ethiopian musician
Ethiopian musician’s death exposes deep
ethnic fissures.
Week-long, deadly protests, triggered by
the killing of popular musician and activist
Haacaaluu Hundeessaa on June 29, brought
the deep seated ethnic tensions front and
centre in Africa’s second-most populous
nation’s political landscape. Ethiopian pro-
testors clashed with police in their demand
for justice.
INTERACTIVE FEEDBACK
Legal victories for freedom of speech
a bright spot in a month of deaths
Zimbabwean newspapers
As authorities shut down the internet
and journalists were impeded from cover-
ing Hundeessaa’s funeral, the ever present,
smouldering ethnic divisions morphed into
nationwide protests.
Hundeessaa’s popularity stemmed from
his ability to give voice to the frustration
of the Oromo people — the largest ethnic
group in the country. He was described as
a genius when “it comes to connecting with
the Oromo, especially the youth, with his
lyrics”, when he was honoured with the
Oromo Person of the Year award in 2017.
It is difficult to determine why Hundees-
saa was murdered or who was involved, but
as Amnesty International observes: “there
has been an increase in killings of people
critical of the government and political per-
sonalities in the country since 2019.”
Although he sang mostly about culture,
identity, love, unity and human rights, “his
songs also addressed issues of marginalisa-
tion felt by his Oromo ethnic group,” writes
his friend, BBC camera operator Amensisa
Ifa. Prime Minister Abiy Ahmed, who is also
Oromo, is accused of falling short in living
up to his promises, and his ethnic tribe feel
he has betrayed them.
Awarded the Nobel Peace Prize in 2019 for
the peace agreement with neighbouring Er-
itrea and for introducing sweeping political
and media reforms during his two-year ten-
ure as head of state, Prime Minister Ahmed
continues to face the daunting task of unify-
ing a deeply divided nation.
Ecowas freedom of expression ruling
The Economic Community of West African
States (Ecowas) ruling protects right to free-
dom of expression.
Ecowas Court of Justice set a precedent
on the African continent with its ruling, de-
claring the Togolese government internet
shutdown “unlawful and contrary to inter-
national law”.
As reported by Media Defence, the Court
awarded damages of two million CFA
(US$3 400) to the plaintiffs, and ordered
Togo to put in place a legal framework
protecting freedom of expression that is
consistent with international human rights
law standards. The court also ordered Togo
not to shut down the Internet again.
The petition was brought to the Ecowas
Court of Justice on December 17, 2018 by To-
golese blogger Houefa Akpedja Kouassi and
seven local civil society organisations: Am-
nesty International Togo; the Media Institute
for Democracy and Human Rights; Lantern,
the Action by Christians for the Abolition of
Torture, the Association of Victims of Torture
in Togo; the Consumers’ League of Togo; and
the Togolese Association for Human Rights
Education. They were represented by Media
Defence and Amnesty International.
In their challenge, the plaintiffs “set out
in detail the severe and multi-varied im-
pact the shutdown had on them, including
how they were unable to report on protests
in order to let people know what was hap-
pening.”
The two separate shutdowns took place
during protests in September 2017, when the
Togolese people demanded that President
Faure Gnassingbé honour the country’s 1992
constitution and step down immediately.
The state’s response was the disruption of
the peaceful protests with teargas and vio-
lent assaults on the demonstrators.
Controlling the message
Covid-19 safety measures and regulations
are being used by a few African govern-
ments to exert control over which journalists
and media outlets cover state media events
such as press conferences and public hear-
ings. In various instances, media personnel
from independent or privately owned media
houses are either barred or ejected.
On June 3 , Namibian President Hage
Geingob’s office issued an apology after
state security details prevented journalists
Charmaine Ngatjiheue of The Namibian and
Jemima Beukes from The Namibian Sun from
covering the official inauguration of the
Covid-19 isolation facility at the Windhoek
Central Hospital.
At the same time that the Namibia Media
Trust issued a statement objecting to the
hostile manner in which the women jour-
nalists were refused entry, the president’s
office had already issued an apology.
In Zimbabwe, press journalists from the
independent press were blocked from cov-
ering President Emmerson Mnangagwa’s
handover of buses at a university.
And on June 10, several members of Ni-
geria’s House of Representatives press corps
were prevented from covering the public
hearing of the Control of Infectious Diseases
Bill, and were told that only journalists from
the Nigerian Television Authority (NTA) and Chan-
nels Television would be allowed entry.
In brief
Swaziland democracy activist Ncamiso
Ngcamphalala has said he was tortured by
police after he was arrested and charged
with sedition for criticising King Mswati III.
The case of missing Mozambican jour-
nalist Ibraimo Mbaruco has been referred
to the United Nations Working Group on
Enforced or Involuntary Disappearances.
Media freedom and human rights organisa-
tions have requested an independent and
impartial investigation into his disappear-
ance in north-eastern Mozambique, three
months ago.
The Namibian government is contemplat-
ing the activation of sections of the 2009
Communications Act that make registering
SIM cards mandatory for all mobile users.
These parts of the act have been dormant
for more than a decade because of their
infringement on the right to privacy. The
obligatory SIM card registration is being
justified by authorities as a measure aimed
at protecting the public from cybercrime.
Critics feel it would open the door for the
government to spy on the public, especially
in the absence of a privacy protection law.
The disinformationtracker.org, an inter-
active map providing data on disinformation
laws and policies and how they are being
enforced across sub Saharan Africa, was
jointly launched by a coalition of civil soci-
ety groups: Article 19, the Centre for Human
Rights of the University of Pretoria, the Col-
laboration on International ICT Policy for
East and Southern Africa (Cipesa), Global
Partners Digital (GPD) and Protege QV.
Ghanaian MP Kennedy Agyapong has been
ordered to pay approximately US$18 000 in
damages and retract defamatory statements
he made against journalist, editor and pub-
lisher Abdul Malik Kweku Baako. The Media
Foundation for West Africa welcomed the
court’s decision “as a victory for the fight
against impunity for crimes against journal-
ists”.
In early June, popular, veteran journal-
ist Samira Sabou was arrested in Niger and
detained over a Facebook post. She was
charged with defamation over an article on
news website Mides-Niger allegedly linking
the president’s son and adviser, Sani Issou-
fou Mahamadou, to the overpricing of goods
procured by the Defence ministry.
l This brief was originally pub-
lished on Ifex.org: https://ifex.org/
legal-victories-for-freedom-of-expres-
sion-a-bright-spot-in-a-month-of-
deaths-and-violence-against-women
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Independent.

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-
tional purse.
Deputies can neither act on
behalf of the minister in their
respective portfolios nor attend
cabinet meetings, as they are re-
stricted to reading speeches on
behalf of the ministers, among
other menial tasks.
In the court of public opin-
ion, deputy ministers are of no
use and the position only serves
as a feeding trough for loyal-
ists of President Emmerson
Mnangagwa.
Deranged deputies
D M
EFENCE deputy minister
Victor Matemadanda’s re-
cent utterances have done
nothing to change that belief.
Matemadanda claimed that the
July 31 anti-corruption protest
led by politician Jacob Ngari-
vhume is being sponsored by the
United States, bizarrely adding
that the protestors will use coro-
navirus canisters.
Matemadanda’s daft com-
ments are emblematic of the
country’s poverty of leadership,
characterised by paranoia and
cluelessness.
The Zanu PF national commis-
sar — who distinguished himself
by driving taxis during the liber-
ation war — provides a constant
reminder that deputy ministers
are totally unnecessary.
Matemadanda, sadly, is not
the only deputy minister, whose
crass stupidity has confounded
the nation. Former deputy In-
formation minister Energy Mu-
todi made a number of reckless,
offensive and utterly brainless
comments.
They range from suggesting
that people of Ndebele origin are
not Zimbabweans to calling MDC
activist Sekai Marashe a prosti-
tute after she was abducted and
brutally assaulted by suspected
State security agents and Zanu
PF militia in Kwekwe.
The failed rhumba musician bit
more than he could chew after
engaging in a spat with Foreign
Affairs minister Sibusiso Moyo.
Moyo distanced the government
from Mutodi’s unfavourable
comparison between Mnan-
gagwa and Tanzanian President
John Magufuli in the way they
had tackled the containment of
the coronavirus scourge.
Mutodi responded by remind-
ing Moyo that he was not the
prime minister.
This proved too much, even for
Mnangagwa, who is no stranger
to making absurd remarks, re-
sulting in Mutodi being booted
out of government.
Who can forget former dep-
uty finance minister Terrence
Mukupe, who was accused of
manhandling a senior govern-
ment official over travel allow-
ances and before the 2018 har-
monised elections declared that
the military would not accept an
Matemadanda is mirror of
absurdity, govt ineptitude
opposition victory?
Muckraker wonders: Where
does Mnangagwa recruit such
dismal talent? Deputy ministers
are enjoying a free meal ticket on
the gravy train. They must stop
freeloading. Fire the lot and let
them get proper jobs like every-
one else.
Contradictory
NANGAGWA has been
going on, ad nauseam,
about how he is the doy-
en of free speech and democracy
since being catapulted to power
on the back of guns and tanks.
Even the Information perma-
nent secretary Ndavaningi Man-
gwana has been at pains to tout
his boss’s threadbare democratic
credentials.
However, Zimbabwe Republic
Police officer Milton Murairwa
might not agree. The 31-year-
old Murairwa, stationed at Ha-
rare Central Police Station in
the administration department,
appeared in court facing accu-
sations of undermining the au-
thority of the President through
a WhatsApp message he allegedly
posted in a group comprising his
workmates.
Allegations against him are
that on July 7, at about 6pm, he
posted a message for a WhatsApp
group of police officers stationed
at ZRP Mbare and is named
Mbare Family.
According to the state, Murai-
rwa posted that: “ED neteam yake
must go, ndini Murairwa ndadaro,
udzai vanhu vePI kana asingade kue-
nda ndoda kumuona (ED and his
government must resign, tell
that to the PI. If he does not want
to go, I will see him in person).”
For these utterances, he is al-
leged to have publicly and un-
lawfully intended to engender
feelings of hostility among the
46 members, who are also po-
lice officers, on the Mbare Fam-
ily WhatsApp group against the
President in person or in respect
of his office.
So much for championing free
Detrimental notes to sink a captainless titanic
A
NY doubt that Zanu PF is a party that
belongs to the Stone Age was dispelled
this week by the doddering old men
who are way past their prime at Zanu PF
headquarters.
The party demanded the de-listing of fi-
nancial services group Old Mutual from the
Zimbabwe Stock Exchange and proposed
that a new bourse be opened to trade only
ZIMBABWE INDEPENDENT JULY 17 TO 23, 2020 11
COLUMN
corruption stance and his sound
re-engagement drive”.
This drivel will be news to the
majority of dejected Zimbabwe-
ans whose poverty levels have
worsened since Mnangagwa
rode to power on the back of
army tanks.
Skyrocketing prices, low ca-
pacity utilisation, dwindling in-
vestment inflows, suspension of
the stock market, and runaway
inflation of 800% hardly consti-
tute a “clear economic vision”
as espoused by the ambassa-
dor who is clearly seeing things
through rose-tinted glasses.
Even the beleaguered Mnan-
gagwa admitted last month that
Zimbabweans deserve better
than the economic ruins the
country has been reduced to.
The failure to address the nu-
MUCKRAKER merous cases of malfeasance
pointed out by Auditor-General
Mildred Chiri in her annual re-
Twitter: @MuckrakerZim ports, as well as the Covid-19
public procurement scandal,
“Matemadanda’s paint a starkly different pic-
ture to the ambassador’s cheap
daft comments are propaganda about Mnangagwa’s
“tough anti-corruption” stance.
emblematic of the Eyebrows will also be raised
over the ambassador’s claim that
country’s poverty Mnangagwa has an impressive
international re-engagement
of leadership, programme.
characterised by The civilised world has re-
peatedly criticised Mnangagwa’s
paranoia and government for beating up, ab-
ducting and jailing opposition
cluelessness. and civil society activists includ-
ing comedians.
The Zanu PF Defence deputy minister Victor The European Union has urged
Matemadanda’ Mnangagwa to implement the
national recommendations of the com-
commissar — who speech!
Murairwa joins more than 20
mission, which was tasked with
investigating the brutal killing
distinguished other individuals who have been
collared for criticising Mnangag-
of six citizens during protests to
demand the announcement of
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.
taxis during the free speech and democracy. Mnangagwa is yet to imple-
ment the recommendations by
liberation war Daydreaming the commission, which was led
— provides a
M
UCKRAKER spluttered by former South Africa president
in his tea when he read Kgalema Motlanthe that soldiers
constant reminder the remarks of Tanza-
nian Ambassador to Zimbabwe
responsible for the killings are
bought to book.
that deputy Professor Emmanuel Mbennah
in the state-run The Herald.
It is understandable that
Mbennah is guided by the need
ministers are Under a laughable headline to promote ties between his
Economy on Track: Envoy, Mbennah country and Zimbabwe, but that
totally claimed that Mnangagwa “will is no excuse for spewing deluded
unnecessary.” deliver Zimbabwe to the prom-
ised land because of his clear
claptrap that has no semblance
whatsoever to the reality on the
economic vision, his tough anti- ground.
SHORT AND SWEET ...
in United States dollars. The party’s acting very investors Chinamasa barks about.
spokesperson and former minister of finance To have such recommendations from the
Patrick Chinamasa said the party was of the likes of Chinamasa, who are used to com-
view that setting up a forex-denominated missioning dustbins and are desperate for
stock exchange would be an appropriate relevance after being shunted from first-
institution for raising and attracting foreign class seats to the economy-class benches on
direct investment into Zimbabwe. This is at a the gravy train, illustrates why the country
time government has indefinitely suspended has become an economic backwater and an
trading on the local bourse, scaring away the embarrassment to the Sadc region.
www.thezimbabweindependent.co.zw
12 Zimbabwe independent july 17 to 23, 2020
IN the past year, there have been a
number of significant movements in
the financial sector. At First Capital
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
into the bank at a time it is finalising
a rebranding exercise. Below are
excerpts of the interview:
MC: Congratulations on your appoint-
ment. You are bringing more than 22 years
of global banking experience to this posi-
tion at First Capital Bank. What areas of ex-
pertise are you bringing to the bank and to
the banking sector?
CM: Banking and finance have been my
calling since the beginning of my career,
and an area I have been interested in since
my student days. My career started in the
oil industry, where I spent a number of
years, but banking was the industry I was
interested in, because of the impact it has
on all our lives, including the sustainable
economic development it brings globally.
While my career has been limited to
overseas locations, I had the opportunity to
work in many global roles, and also latterly
on African projects under Barclays Plc, giv-
ing me a great appreciation of the continent
overall. Banking is now global and Zim-
babwe operates within the global banking
standards, making it easy to fit in and feel at
home. My intention is to apply the wealth
of knowledge amassed over time in money
markets, finance and investments in our
current environment and bring sustainable
growth.
MC: Having been at the bank since 2018,
you have witnessed a number of events
both in the economy and the bank itself.
What can you say are the key strategic in-
novations that you will seek to employ to
ensure the stability of the bank against the
current economic turbulence?
CM: As an organisation, we have been
through a huge period of change during this
time. This included the acquisition by First
Capital Bank in 2017, followed by our re-
branding in October 2018. During this pe-
riod, we were also working on our system
migration, which we successfully complet-
ed, which has allowed our core-banking
infrastructure to offer an enhanced service
offering.
The external environment has been ex-
tremely fluid, undergoing various policy
changes that called for extremely agile
and efficient reaction in order to maintain
operations. In addition, we recently have
experienced the Covid-19 pandemic glob-
ally again, calling for an evolution in the
way we do business. This demanded a fast
change to enable remote working, a change
in processes and will likely have a lasting
legacy on how we as banks operate.
Some of the key innovations for our bank
would be to:
l  Increase our stakeholder digital adoption
through increased remote access facilities,
in line with global trends. Banking should
be at the palm of everyone’s hand and we
want to be a leader in that journey;
l  With the increase in online, digital and
ecommerce platforms, cyber security on
all platforms is paramount to safeguard
customers’ money; and
l  Through the above, we need to also look
to unlock new product capabilities to ad-
dress market gaps.
MC: Given your global experience, what
new transformations should we expect
from you that will bring world-class qual-
ity to First Capital Bank?
CM: We are a regional bank that operates
in five markets within the continent. This
means we have an opportunity to leverage
on the networks, strengths and capabilities
of each market. We believe in collaborative
efforts that will revolutionise our customer
proposition.
Our focus is on customising our products
for the unique African market in a fast and
innovative way. I intend to lead our digital
transformation exercise to match global
markets, as digital is unquestionably the
way forward. This will take many forms,
some of which would be new products,
deeper customer engagement and strate-
gic alliances with key industries to create
value propositions.
But there are three key areas, where
we can ensure we are customer focussed.
CUTTING-EDGE INTERVIEW
‘Combining traditional, modern
banking systems best way to go’
Fact file: Ciaran McSharry
l  More than 22 years of global banking
experience;
l  Joined First Capital Bank Zimbabwe in
May 2018 from Barclays Plc as chief finance
officer;
l  Later moved to support the group as FMB
Capital Holdings group chief finance officer;
These are around our speed of execution,
treating customers with honesty and in-
tegrity and from here, ensuring excellent
customer service. If we can get these three
elements correct, it is a firm foundation on
which to build.
MC: Having been the chief finance officer
for the bank, you have also been affected
in relation to currency policy changes and
having to adapt to certain standards which
include the accounting system in hyperin-
flationary times. How do you intend to use
this experience to steer the bank forward?
CM: As a nation, we encountered unique
hyperinflationary times that required tai-
lor-made solutions. Countrywide, there
was an adoption of International Account-
ing Standard 29 (hyperinflation account-
ing). Here banks had to distinguish between
controllable and uncontrollable elements
and align suitable interventions for each
to maintain shareholder value. A balance
between revenue and cost efficiencies was
more crucial than ever. Issues faced were
problems in property valuations, rising
costs, profitability management, budget-
ing and planning, among others. Remedies
to these in the interim were re-allocation
of resources to invest in assets that main-
tain value, subject to regulatory limits, in-
vestment in key sectors yielding value in
deposits and forex, revaluations using pre-
vailing exchange rate and so on.
Nonetheless, I am grateful for the expo-
sure that I have attained in the time I have
been in Zimbabwe. It is now more essen-
tial than ever for us to be able to adapt to
the prevailing environmental conditions,
meaning it is imperative to have a live busi-
ness continuity management plan with
varied scenario settings to prevent any op-
erational disruptions.
Open conversations with stakehold-
ers, offering relevant cost-effective prod-
ucts and speedy execution will allow us as
First Capital Bank to achieve our purpose,
which is to “enable people to achieve their
extraordinary”.
l  Appointed acting MD in 2019 and sup-
ported the Zimbabwe business through the
execution of its growth strategy;
l  Member of the Chartered Association of
Certified Accountants; and
l  Holds Bachelor of Business Studies degree
from Dublin City University.
MC: We have seen new appointments in
some institutions resulting in restructuring
in terms of new placements and job losses.
Should we expect that at First Capital Bank?
CM: As an organisation, our aim is to re-
main relevant and efficient in our service
offering, with colleagues and customers at
the core of all our strategies. The first half
of this year saw us experience the unprec-
edented Covid-19 pandemic, which dis-
rupted the business environment as we
knew it.
This has shown that these are, indeed,
extraordinary and uncertain times for
businesses, but we all need to rise to the
occasion, understand that change is the
only constant and play our role as part of
the essential services framework. We have
had to redefine our operations in the new-
normal and we continue to evolve with re-
cent developments.
As a bank we will continue to respond
to trends in the local or global landscape in
order to optimise our cost base and remain
solid and efficient.
MC: Let us talk about the bank per-
formance. There has been a new trend,
whereby banks are now shifting towards
non-funded income, diverting from their
core business. What is your comment on
this?
CM: Interest income is what is generally
referred to as core business in banking.
Looking at worldwide trends, we will find
that a bank is unable to sustain its cost base
relying on interest income only. Non-fund-
ed income (NFI) coming from transactional
fees is also an essential part of the business
equation. The reality is that for any bank
in the current market, you need to man-
age across your profit and loss, covering a
balance between NFI and interest income,
together with an increasing need for cost
efficiency. The reality is also that you need
a diversified income base, with the combi-
nation of the two helping to achieve opti-
mal shareholder value.
In addition, we need to also be cog-
nisant of the fact that banking is more than
just about finances, but also about build-
ing meaningful business partnerships to
achieve shared financial growth and suc-
cess, which is the basis of a sustainable
business model.
MC: What are the key result areas we
should look forward to in terms of your
performance?
CM: We are looking forward to the fol-
lowing key result areas:
l  Overall bank profitability within the core
business;
l  Growth of quality deposit lines and de-
ployment of the same to the productive
sectors and liquidity instruments through
our lending framework; and
l  Capital generation to raise our US$30
million statutory reserve milestone and
funding of key investments.
MC: We understand that the final re-
branding phase for First Capital Bank will
be in October 2020. How will this be rolled
out?
CM: Our rebranding commenced in Oc-
tober 2018 upon conclusion of the Barclays
Plc divesture exercise that saw it reducing
its major shareholding significantly in the
African market to align to its new strategic
direction. We embarked on a new journey
of co-branding with Barclays Plc, which
will end after its two-year tenure in Octo-
ber 2020 when we will become First Capi-
tal Bank Limited. The reality is most of our
customers now think of and know us as
First Capital Bank.
This will present opportunities for our
customers on the African continent where
our expertise lies. As a regional bank with a
banking heritage of over 25 years in the re-
gion, our support system allows us to draw
from our group capabilities, group knowl-
edge and experience on an ongoing basis.
On the service front, our customers
should expect more digital products that
will support banking-on-the-go. We look
forward to the future with a great sense of
confidence and assure our stakeholders of
service excellence, as we build our heritage
in Zimbabwe.
MC: What is your view of the financial
sector landscape in general?
CM: The financial sector landscape has
evolved very fast somewhat in line with
global trends, but also with the innovation
required to operate with all the challenges
in the Zimbabwe market. We have seen
significant changes in transacting behav-
iour in our consumer landscape influenc-
ing the products offered.
The economy has rapidly become cash-
lite and is now hugely dependent on mobile
money platforms, cards and increasingly
on the digital platforms. In the midst of all
this disruption in the sector, we also see
non-traditional players offering financial
products.
However, the market still sees the sep-
arate value proposition that banks offer,
meaning there are still opportunities avail-
able that will impact our economic growth.
We believe that our sector has the capabili-
ties it takes to lead on a number of frontiers
and look forward to a better future.
MC: What are the areas that you feel need
to be focussed on, going forward, in the
banking sector?
CM: Going forward, I suggest the sector
focusses on:
l  Raising adequate capital to underwrite
the crucial market demands, taking into
account the operating conditions, includ-
ing exchange rate valuations, inflation, fo-
rex shortages etc.
l  Structured approach to servicing key
sectors that bring economic growth and
generate foreign currency.
l  Digitisation through creation of relevant
digital channels to align with the prevailing
consumer behavioural trends where bank-
ing should happen at the click of a but-
ton. A balance between traditional brick-
and-mortar versus online will have to be
reached to cater for all customers.
l  Working to align our balance sheet and
profit and loss to cater for the macro-eco-
nomic volatility, and also for the new norm
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,
a critical benchmark for the government’s
re-engagement with Western capitals. It
also runs parallel to the government’s ob-
jective to compensate white farmers affect-
ed in the chaotic and often violent fast-track
land redistribution programme in 2000.
Instead, the latest farm grabs will result in
the country losing revenue through a mas-
sive drop in exports and production. The
current farm takeovers evoke a sense of déjà
vu. The land reform programme decimated
production, crippled the country’s economy
and transformed it from the bread basket of
southern Africa to a basket case dependent
on imports and donations. It also resulted in
sanctions being slapped on the country by
the international community and suspen-
sion from the Commonwealth.
charmed by Mnangagwa’s rhetoric, has be-
come disenchanted by the fact that his words
have not been matched by action. Nothing
illustrates this more than the threadbare in-
flows of foreign direct investment since he
took to the helm, chanting his mantra that
“Zimbabwe is open for business”.
According to figures availed by the Re-
serve Bank of Zimbabwe, foreign direct
investment has fallen sharply from US$717
million in 2018 to just US$259 million last
year, a drop of more than 50%.
The latest take-over of land will only re-
sult in the country being further isolated as
investors give the country a wide berth, ac-
cording to economist Godfrey Kanyenze.
“Investors are like crows which quickly
Agriculture minister Perrance Shiri
fly away from an environment of discord
and where there is a trust and confidence
deficit,” Kanyenze said. “The renewed farm
take-overs do not at all enhance trust in the
government. Trust must be gained internal-
ly before looking externally. Land is a na-
tional issue and it does not belong to a cer-
tain group or particular political party. The
processes are as important as the outcome.”
Kanyenze said when it comes to deal-
ing with the land issue, there is a need for
broad-based stakeholder consultation.
“We have got to understand that the rest
of the world can go ahead without Zimba-
bwe, but the country cannot go ahead with-
out the rest of the world,” Kanyenze pointed
out.

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
Jonathan Chando
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-
ruri and Webster Gwauya were on Robert
Mugabe’s side.
This revolt was followed a year later by
the Gumbo/Hamadziripi Rebellion, where
Muparuri and Webster Gwauya and Augus-
tine Chihuri (Stephen Chocha), were also
purged by Mugabe and some commanders
who had taken sides with Mugabe. What
many may not have realised is that the
crushing of revolts or purging of these lead-
ers and commanders was, in essence, the
crushing of divergent opinion within the
party and military. Every cadre who dis-
played a different way of thinking became
an enemy or a reactionary, which was es-
sentially not wholly true. This marked the
undemocratic nature of Zanu PF, where
only a few with influence called the shots.
This purge marked Mugabe’s grip on
power, with the backing of military com-
manders. All decisions of the party became
Mugabe’s sole responsibility and the com-
manders were the guarantors of the power
regime. While the people were mobilised
for the revolutionary cause on the war
front, they did not have any contribution in
the direction and decision-making in the
party and in the war.
Backed by Zanla, Zanu won the elections
resoundingly in 1980, riding on its influence
in the country, through both persuasion
and coercion, and formed a unity govern-
ment with Zapu, another liberation outfit.
The people of Zimbabwe believed at this
point that they had entered a democratic
dispensation. It appeared so on paper, and
it seemed to be the same in practice. But
did the people really have a say in how the
country was to be governed?
The answer is negative.
People were tired of the war, and voting
against Zanu PF would mean the return to
war, according to Zanla. While most voted
Zanu PF of their own will, some voted sim-
ply to avoid the experience of war again.
After Independence, decisions were
made by the leadership with little consulta-
tion of the voting members. All they were
given was the revolutionary rhetoric which
was either forced upon them or persuaded
to embrace as the right decisions. The mili-
tary was always the guarantor of this pow-
er. War veterans became the custodians
of Zanu PF governance and any divergent
opinion was viewed as reactionary, or of
colonial puppets.
The selection of candidates in primary
elections of the party was not exactly ac-
cording to the people’s choice, but accord-
ing to who the leadership and the military
viewed as toeing the line. Zanu PF became
too complacent having cowed the citizens
into believing that only they had the right
to govern.
The opposition MDC was formed in 1999,
following the decline in the economy due to
Mugabe’s catastrophic adoption of the Eco-
nomic Structural Adjustment Programme
(Esap), the lump sum payouts to war vet-
erans in 1997, which collapsed the value of
the Zimbabwean dollar, and the military
deployment to the Democratic Republic of
Congo in 1998.
This brought the realisation by both
Mugabe and the Zanu PF leadership that
they could lose the support of the people to
the MDC, after losing in the 2000 constitu-
tional referendum.
The military was then roped in, together
with the war veterans, to campaign and
force voters to vote Zanu PF in the 2002
general elections, as well as during the farm
invasions which led to the fast-track land
reform.
Since then, the hand of the military be-
came more visible, with war veterans play-
ing the front role in unleashing terror on cit-
izens who supported the opposition or ex-
pressed divergent views. Any person inside
or outside Zanu PF who expressed divergent
views was punished, labelled a reactionary,
puppet of the West and brutalised.
Zanu PF leaders who saw the undemo-
OPINION
Zim has always had a
democracy deficit (II)
Vice-President Constantino Chiwenga
cratic tendencies in their party and tried
to highlight them were expelled, the likes
of Edgar Tekere and Margaret Dongo being
cases in point. Another war veteran who
tried to keep Zanu PF in check was Lazarus
Nzarayebani who was then MP for Mutare.
His outspokenness courted the wrath of the
government.
The year 2008 marked the real turn-
ing point where Zanu PF was turned into a
monster after the MDC had won the elec-
tions and Mugabe had been defeated by
Morgan Tsvangirai. In the words of Emm-
erson Mnangagwa, Mugabe was ready to
cede power to Tsvangirai, but Mnangagwa,
with the backing of the Zimbabwe Defence
Forces commander General Constantino
Chiwenga, told Mugabe to stay put.
It took them a whole month to cook the
election results, laying the pretext for a
run-off. The military would unleash a reign
of terror in the run-up to the re-run, ab-
ducting, raping, maiming and killing many
opposition members. Tsvangirai withdrew
from the race, fearing for the lives of his
party supporters and for his own life at the
hands of the military. He sought refuge in
Botswana in fear of the military onslaught.
Statements have always been released by
the military, to the effect that the military
would neither salute nor respect any leader
who did not have liberation war creden-
tials. So this was the second coup, staged
against Tsvangirai, the winning presidential
candidate, which re-installed Mugabe, as a
puppet of the military. (Clifton 2020).
In its whole existence, Zanu PF has never
embraced the free selection of candidates
when appointing leadership throughout its
structures. Imposition of candidates or the
buying of loyalty have been the norm.
Intimidation and the threat of expulsion
have always cowed dissenters. The pun-
ishment meted out on those expelled has
been harsh, and is meant to send a chilling
warning to any would-be rebel.
This was evident when Joice Mujuru was
expelled in 2014, where members were
cowed into denigrating their vice-presi-
dent at rallies at the instigation of Mugabe’s
wife. Even those in Mujuru’s camp had to
turn against her, for fear of retribution the
same way Mujuru had faced. Simon Khaya
Moyo, who was touted to be a Mujuru func-
tionary, had to turn against her to save his
skin and post within Zanu PF.
Once expelled from the party, any wealth
or property acquired while in Zanu PF
would be forfeited clinically, to ensure pain
and suffering. Zimbabwe has witnessed
ex-Zanu PF leaders being stripped of farms
and property as well as incarcerated.
It is ironic that Moyo was ordered to an-
nounce the firing of Joice Mujuru in 2014 (to
whom he was aligned); to fire Mnangagwa
in early November 2017; and to fire Mugabe
three weeks later. No one would envy
Moyo’s turncoat position right now as he is
being used as a doormat by whoever seizes
power on the day. Such is the undemocratic
and autocratic nature of Zanu PF.
In early November 2017, many had been
singing praises of Mugabe and his wife,
donning regalia with their portraits, while
castigating Mnangagwa. But three weeks
later, they had swiftly changed sides and
were now castigating Mugabe and praising
Mnangagwa, whom they had been happy to
see fired, but were now all wearing regalia
bearing his portrait. They started castigat-
ing Grace Mugabe and the G40 cabal, with-
out batting an eyelid. That is the bootlicking
and hero worship rampant within both the
party and government.
This has ultimately thrown any sense of
democratic semblance into the dustbin,
while the Zanu PF constitution and the
national constitution have been trampled
upon in the process. Meanwhile, the mili-
tary has eventually asserted its previously
hidden power over both the party and gov-
ernment, with military commanders now
in cabinet, and the former commander
of the defence forces who led the coup as
vice-president.
It is ironic that the MDC, with its huge
contingent of lawyers, mobilised and
marched in support of the military power
grab, which was evidently in violation of
the constitution, and a coup d’état. Then, I
even wrote an article in which I expressed
my dismay when Nelson Chamisa, then a
newly qualified lawyer, declared in an in-
terview on CapiTalk, that it was not a coup
d’état, but a miracle. I also highlighted how
coups can easily set a precedent for the
military, to stage a coup d’état whenever
their interests are not achieved by their
handpicked state leader.
As much, as the people of Zimbabwe
have clamoured for representative democ-
racy, it has never materialised, and remains
elusive. The military has been ruling since
the end of the liberation war and continues
to do so. The notion that the pen rules the
gun, as espoused by Mao Zedong, has never
occurred in Zimbabwe’s history.
It is therefore not at all surprising that
Zimbabwe has been under invisible mili-
tary rule, which has now unmasked itself
and deposed its own creation, Mugabe,
through a coup d’état. The military imposed
Mnangagwa after deposing Mugabe in the
same way they did in 1975 when they in-
stalled Mugabe after deposing Ndabaningi
Sithole.
The army commander’s warning two
days before the 2017 coup d’état, referred to
the Mgagao Declaration (first coup d’état),
giving Mugabe an indication that the mili-
tary had imposed him as leader after de-
posing Sithole, and would remove and re-
place him in the same way.
When the leader preferred by the mili-
tary ceases to serve its interests, and refus-
es to toe the line, the military will get rid of
that particular leader and impose another.
There will be a semblance of normalcy dis-
guised in elections which will never be free
nor fair, to legitimise the regime and fool
both citizens and the international commu-
nity. It would not be a surprise if the mili-
tary turned against the incumbent when he
ceases to serve its interests.
After the November 2017 power grab, I
wrote an article chronicling the constitu-
tional violations by the military in effecting
the power takeover, which I will repeat in
the coming weeks.
Illiberal democracy in the opposition
It may also be noted that the operation of
pseudo democracy does not only occur in
Zanu PF. It is also prevalent in the opposi-
tion, where cults and factions have loyalty
syndicates, thus causing divisions and splits
within them, all for personal rather than
national interests. Since its inception, the
MDC has only had one elected leader in
Tsvangirai.
The internecine splits and factions in the
MDC since 2005 have largely been a result
of democratic intransigence and constitu-
tional violations by the leadership, which
have caused multiple divisions.
The appointment by Tsvangirai of Chami-
sa and Elias Mudzuri as deputy presidents
of the MDC, in violation of the party con-
stitution, is glaring evidence of the ab-
sence of democracy in the opposition. The
succeeding unconstitutional power grab
by Chamisa after the death of Tsvangirai,
akin to the 2017 Zanu PF power grab, also
exacerbated the stifling of democracy and
constitutionalism.
After grabbing power, Chamisa disman-
tled structures left by Tsvangirai, appoint-
ed his own praise singers into positions of
power to protect himself. With the help of
the “Vanguard” party youths, he has main-
tained a dictatorial reign over the party and
anyone with divergent opinions will be at-
tacked both verbally and physically by the
Vanguard, while they are labelled Zanu PF
or Central intelligence Organisation agents.
After the Supreme Court judgment de-
claring him illegitimate leader of the MDC,
Chamisa continues to remain in denial, re-
fusing to accept the judgment, and accus-
ing Zanu PF of orchestrating his downfall.
If Zanu PF has done anything to stoke the
confusion and mayhem in the MDC, it only
comes in to skin the carcass of an already
dead animal, because the MDC has de-
stroyed itself.
All other political parties in Zimbabwe
are either one-man bands or small groups
of people whose democratic processes can
never really be acknowledged, because
they lack national relevance.
In conclusion, Zimbabwe has still not
attained representative democracy status
and it will take greater efforts by dedicated
citizens to overturn this patronage system
which rears its head both in Zanu PF and in
the opposition. What Zimbabwe currently
experiences is illiberal democracy, where
leaders only care for their personal or group
interests. Thus Zimbabwe has always had a
democracy deficit.
Chando is a lawyer, political analyst and com-
mentator on international law and politics.
— 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.
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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
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down most of the men who had fled into 1.4 Fire Fighting Equipment including sprinkler system, fire alarm system and Fire suppression
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of them. 1.5 Generator Supplies, Installation, Repairs and Maintenance
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scrape out the mass graves. (Later the Serbs
dug up the graves and moved them to better
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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
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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
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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
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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-
tured) is over the moon after French club
Rugby Club Compiegne extended his con-
tract by another season, shaking off fears of
termination due to the Covid-19 pandemic.
The French domestic season came to a
premature end in the wake of the corona-
virus outbreak, but a new term is now set
to start on the weekend of September 12
and 13, much to the delight of the Sables
centre.
And now before the brand new season
begins, the 27-year-old Zimbabwean is
currently in Lithuania, where he has signed
a short-term contract with a club plying its
trade in the six-team Baltic Top League.
“Through my mentor, (Zimbabwean
youth coach) Farai Bob Mahari, I got to
know the coach of the team I signed up
with here in Lithuania,” Makombe told In-
dependentSport this week.
“He actually had a coaching stint at
Churchill (Makombe’s former school) in
Zimbabwe for four months. So after our
season ended, we were in touch and he
called and offered me this stint. I came here
before and I love the country so it was an
easy decision.”
Makombe added that the inactivity due
to Covid-19 afforded him time for an anal-
ysis of the game and life in general.
“Not playing due to Covid didn’t feel
like lost time as the main priority became
health,” he said. “Personally, it also gave
me a lot of time to introspect and appre-
ciate a lot of things I may have taken for
granted.”
The gradual return of sport around the
world excites the mercurial Sables back-
liner, who was also a keen cricketer and
footballer in his younger days.
“Sport has the power to unite and prob-
ably safe reintroduction will give hope to
many as witnessed by the many leagues
that have resumed,” Makombe said. “Rug-
by has a wonderful window to restructure
for it to become more appealing globally
and I hope the powers-that-be recognise
the opportunity.”
Makombe, nicknamed “Zim Express”
at the third-tier league French club, also
spoke of his sadness over the departure
of Zimbabwe’s assistant coach, Spring-
bok record-holder Tonderai Chavhanga,
who left the post citing increased work
commitments.
“Tondies was an inspirational figure
and he will be solely missed in the set-up.
While I and other players are sad to see him
go, his work and principles will still be ap-
plied in the system,” Makombe said. “He
was uncompromising on professionalism
and it’s something I’m big on myself. So I
really loved working with him and I wish
him well in his new endavour.” — Staff
Writer.
 ANAlysis
9 7 7 1 5 6 4 0 6 9 0 0 0
SPORT
ISSN 1564 - 0698
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
FORMER South Africa coach Peter de
Villiers did not leave behind pleasing re-
sults in his shortened tenure with Zim-
babwe in 2018, but the choreographed
pre-match formalities that he imported
from the Springboks is one legacy the
neighbours are happy to carry on.
A group photo of the match-day 23
and the coaching staff is followed on
the eve of the game by a kit presenta-
tion ceremony, where a specially in-
vited prominent figure hands out the
jerseys to the starting XV as well as the
substitutes.
It can be a top player or renowned ad-
ministrator, past or present, or any in-
fluential person in society chosen by the
coach or association.
So during Zimbabwe’s debut season
in South Africa’s SuperSport Challenge
last year, Springbok captain Siya Kolisi—
five months before famously leading his
country to World Cup success in Japan—
gladly answered the call from the ador-
I’m inclined to feel for Zifa boss, but misgivings linger/ 19
Independent
Zimbabwe independent
ing neighbours’ camp.
A cheerful Kolisi arrived at Zimba-
bwe’s quiet suburban lodgings in Cape
Town on a cold Friday evening in May
2019 ahead of the side’s clash with Free
State XV the following day.
Kolisi was clearly quite pleased to
perform the duty, laughing and chatting
with everyone throughout the event.
More so, perhaps, out of the realisa-
tion of the presence at the function of
a fellow Springbok history-maker—
Zimbabwe assistant coach Tonderai
Chavhanga — who scored a record six
tries on debut when Kolisi, South Afri-
ca’s first black rugby captain, was still a
14-year-old up-and-coming player ex-
periencing a tough upbringing in an im-
poverished Eastern Province township.
The encounter with the revered Boks
skipper was an opportunity to cherish
for the entire Zimbabwe squad.
“It was definitely a humbling experi-
ence and definitely an honour to have
the Springbok captain, who has since
won the World Cup, coming through to
July 17 to 23, 2020
hand out our jerseys,” Zimbabwe’s cap-
tain Brandon Mandivenga told Independ-
entSport this week.
“To have someone of his stature, the
captain of the best team in the world,
personally giving us our jerseys, is
something both myself and the team
will definitely not forget in a hurry.
He did speak to me personally and
the team. He told us his story, where
he came from, and he encouraged us to
keep believing in our abilities, to keep
fighting.
He told us that anything is possible.
Listening to his story, and what he has
achieved, his speech to us was definitely
a testimony to that.”
Italy-based utility back Mandivenga
remarked that watching South Africa
being crowned world champions un-
der Kolisi’s leadership brought back a
flood of memories from the Cape Town
meeting.
“It was definitely a heart-warming
moment watching him lift the World
Cup trophy,” said the 25-year-old Sa-
bles skipper. “Having spoken to him
months before, sharing quite a hap-
py time, it was a great thing to see the
World Cup being lifted by someone who
definitely deserved the accolade.”
The biggest cheer of the night back
in May 2019, in the hotel’s dining room
in Cape Town, erupted when the name
Njabulo Ndlovu was called up and the
big Zimbabwe loose forward walked
to join Kolisi at the front to receive his
jersey.
Zimbabwe teammates of Ndlovu
reckon the experienced Sables man
bears a striking resemblance to the Boks
captain, who is interestingly also a loose
forward.
“We had a joke that was ongoing in
the team that Njabulo looks exactly like
Siya and when it was time to hand out
the jersey to Njabulo everyone chanted
‘Kolisi, Kolisi!’ because they looked
so alike standing next to each other,”
chuckled Mandivenga.
“It was a very funny moment and Siya
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
Tyra
Banks
TYRA BANKS was officially unveiled as the new
host of Dancing With the Stars (DWTS) on GMA
Wednesday.
The 46-year-old model turned TV mogul
says she is “excited” to step into the role of
both host and executive producer and thrilled to
“break down” barriers by becoming the show’s
first black female host. On Tuesday, DailyMail.
com exclusively revealed that Banks had been
tapped to replace longtime DWTS host Tom
Bergeron and his co-host Erin Andrews for sea-
son 29.
“I am excited about hosting and executive
producing,” Banks told GMA. “Getting in there,
live TV — you never know what happens on live
TV.”
Banks appeared virtually on the popular
morning show and glowed on camera with her
honey toned tresses down in soft curls and soft,
simple make-up. On Tuesday, multiple sources
from within ABC confirmed to DailyMail.com
that the former America’s Next Top Model was
in line to replace Tom Bergeron and Erin An-
drews, who were both dropped from the hit
show on Monday.
Banks’ new gig makes her the first black fe-
male host on DWTS and the first solo host on
the show in 28 seasons.
“I like breaking those doors down, so that we
don’t have any more firsts,” she told GMA. “But
it’s nice to be first, so that you can open that
door and let so many other people in after you
— so I’m excited.”
Historically, Banks already has a few ma-
jor firsts under her belt, like becoming the first
black model to grace the cover of the Sports Il-
lustrated Swimsuit issue.
She is also a seasoned vet when it comes to
hosting, previously starring in her own daytime
talk show and creating and hosting the long-
running hit competition show America’s Next
Top Model.
On Top Model, Banks coined the phrase
“smize” — a pose where you smile with your
eyes — which she joked would be “required” of
contestants on DWTS.
While she could not divulge too many details,
Banks hinted that she and the show’s other ex-
ecutive producer are working together to make
some changes on the celebrity dance series.
“Let’s just keep this real, it’s gonna be so
next level,” she teased. “We are doing all this
crazy stuff, taking it to the next level, but still
keeping the stuff America loves. But you need
to get ready because it’s gonna be different.”
Banks is a veteran of show business for more
than three decades, finding success in numer-
ous formats including modelling, acting, hosting
want fatal shooting
case re-opened
RIHANNA and Jay-Z have joined a raft of A-
listers calling on the United States attorney
general to investigate the fatal shooting of
an unarmed black college student.
Danroy “DJ” Henry (20), was shot
through his car windshield after Westch-
ester police attended reports of rowdiness
outside Finnegan’s Grill, an Irish pub popu-
lar with Pace University students, in Octo-
ber 2010. In 2015, prosecutors reviewed the
case and found that the shooting of the Pace
football player did not show that a law en-
forcement officer acted with deliberate and
specific intent to break the law.
But in a letter sent on Monday, US Attor-
ney General William Barr was urged to re-
open the case by Robyn “Rihanna” Fenty,
Shawn “Jay-Z” Carter, Pharrell Williams,
Charlize Theron, Taraji Henson, Odell Beck-
ham Jr, Michael Williams, Kerry Washing-
ton, Mary J Blige and Gabrielle Union.
“This agonising case remains an unhealed
wound for the Henry family and the people
of New York,” the celebs said. “DJ, a young
Black youth with a bright future ahead of
him, was killed for no apparent reason in-
side his own vehicle.”
The letter continues: “The facts of the case
reek of local conflict of interest, racial bias
and even false testimony. But like so many
other unarmed and innocent young, black
men who find themselves guilty of being at
the wrong time, DJ, too, lost his life for no
good reason and with absolutely no good
explanation — to this very day. Justice, it
appears, has been denied.”
Henry’s father, Danroy Sr, said he appre-
ciated the support and “that they are willing
to stand behind us on this really important
matter”.
Aaron Hess, the Pleasantville officer who
shot the Easton, Massachusetts resident,
was cleared by a grand jury in 2011. Henry
was shot in his car as he drove through a
parking lot away from a disturbance that
spilled out of a bar on Homecoming Day.
Prosecutors in 2015, following a review,
said the officer shouted for Henry to stop
and then stepped in front of Henry’s car.
They said there were inconsistencies in
witness accounts, but that it appeared Hen-
ry’s car was braking when it struck the of-
ficer, who wound up on the car’s roof.
The officer then fired through the car’s
windshield, wounding one passenger and
killing Henry, the government said.
Prosecutors cited several factors weigh-
ing against criminal charges.
They said the altercation took seconds,
with no prior interaction between the offic-
er and Henry, and that the car struck the of-
ficer and injured him before the officer fired
his weapon as he made “a split decision un-
der conditions of extreme danger, condi-
tions under which the law generally allows
latitude to a police officer’s judgment”.
But the Henry family attorney has said
in civil court that Henry was driving slowly
and that officer Hess had lunged at the car
before firing through the window. The civil
suit further alleged that Henry had been
hauled from his car, handcuffed and left
to bleed to death on the ground. — Mail
Online.

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-
vealed on Tuesday how her fa-
ther Michael encouraged her to
pursue her dream of becoming
a musician before he died when
she was just 11.
Now 22, Paris is in a band
called The Soundflowers with her
boyfriend, Gabriel Glenn.
In a rare interview on Good
Morning America on Tuesday, she
appeared with her older brother
Prince to tell how she started
writing music to “purge”, and
how their late father encouraged
them as kids.
“No matter what it was we
were interested in, I remember at
one point I wanted to be an astro-
naut, he was like ‘do it. do it. Edu-
cate yourself as much as possible
then go with it’ with every aspect
of life,” Paris said.
Paris was 11 and Prince was 12
when their famous father died.
Their mother, Debbie Rowe, has
always resisted the limelight.
They have one other half-sib-
ling, Michael Jackson’s young-
est child Prince Michael Jackson
II, known as Blanket, who is 18
years old. His mother’s identity
remains a mystery.
Now that she is pursuing her
own music career, Prince — who
produced his sister’s music vid-
eo and spends much of his time
working for charities — said he
feels protective of his younger
sister.
“The way we were raised, me
being the oldest ... I feel like I
should be the one that’s protect-
ing the group,” he said.
Paris said that she originally
started writing music “to get
things out”.
“It feels good to get it out. It
feels like not butterflies in your
stomach but in your heart. It’s
cool,” she said.
Paris’ struggles with mental
health and depression are well
documented.
She has attempted suicide sev-
eral times and she recently re-
vealed that after father’s death,
she became addicted to food and
self-harming.
In her interview on Tuesday,
Paris said she pushed much of the
“pain” she felt in those years of
mourning into her music.
“Kids can be mean, your body’s
going through changes, your
emotions are everywhere. Just
all the place. A lot of kids that age
also suffer from depression and
hard-core mental illnesses.
“Part of it was a good portion of
it was just being that age and go-
ing through the trials and tribula-
tion of a 15 year old girl, also just
drama. Drama is the seed to any
kind of unhealthy coping skill
that you choose.
“I do wear my heart on my
sleeve or so I have been told. Peo-
ple can usually tell when some-
thing’s wrong,” she said.
Prince pointed out one of her
songs that he said revealed her
“emotion and pain”.
“I remember when my sister
first played Geronimo for me, I
can hear and feel all the emotion
and pain and hurt that went into
that song and I remember think-
ing this was a song that other
people both could relate to, but
other people needed to hear,” he
said.
Paris is featured in a new Face-
book Watch show, Unfiltered, which
follows her and Gabriel as they
make music.
In the documentary, she ad-
mits that she “never thought” she
would “end up” in a relationship
with a man, having dated women
in the past, and said her father
picked up that she was attracted
to the same sex when she was a
child.
“I think he felt the energy and
he would tease me the same way
he would tease my brothers, like,
‘You got yourself a girlfriend!’ if
I were staring at a magazine of a
woman too hard.
“I’m very lucky to have that,
especially so young, eight or
nine. Not many children have
that experience. The first time I
came out to a family member,
they didn’t believe me. (Prince)
said he just wants to learn more
about it, have a better under-
standing of it.
“I’m lucky to have that as
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
fired from his MTV show Wild 'N Out
and other work for the channel’s
parent company, which said he had
promoted anti-Semitic comments.
ViacomCBS said a recent episode
of his podcast Cannon’s Class “pro-
moted hateful speech and spread
anti-Semitic conspiracy theories”.
In response, Cannon said he does
“not condone hate speech nor the
spread of hateful rhetoric”. The star
also presents The Masked Singer,
him.” By order of the Board
In the June 30 episode of
Cannon’s Class, the presenter in-
terviewed former Public Enemy
rapper Professor Griff, who left the
group in 1989 after saying Jews were Venon Musimbe
“wicked”. Company Secretary
Griff claimed to Cannon that he
was talking about Jews controlling
the media, and said: “I’m hated now 17 July 2020
because I told the truth.” Cannon
added: “You are speaking facts.” REGISTERED OFFICE
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-
prov series that has had 15 series,
but which will now come to an end.
He has also hosted a string of shows
for the ViacomCBS-owned Nick-
elodeon channel over more than 20
years, and was named chairman of
spin-off TeenNick in 2009.
In a statement, the company said:
“ViacomCBS condemns bigotry of
any kind and we categorically de-
nounce all forms of anti-Semitism.”
It added: “While we support on-
going education and dialogue in the
fight against bigotry, we are deeply
troubled that Nick has failed to
acknowledge or apologise for per-
petuating anti-Semitism, and we
people are black people”, and that: Bally House
“You can’t be anti-Semitic when we Mount Pleasant Business Park
are the Semitic people.” On social
Corner Norfolk Road/870 Endeavour Crescent,
media, Cannon later said he had
“no hate in my heart nor malice in- Harare, Zimbabwe
tentions” and that he held himself
“accountable for this moment”. Financial Advisors Sponsoring Brokers Legal Advisors
Cannon was also criticised for
comments that suggested white
people were “less” than black peo-
ple. The star hosted America’s Got
Talent on NBC from 2009 to 2016
and is launching a syndicated day-
time talk show called Celebrity Call
Centre in September for Fox. Directors:
Cannon also hosts a morning ra- A. Makamure (Chairman), E. T. Shangwa (Managing Director)*, B. H. Dirorimwe (Finance Director)*, G. Chikomo,
dio show for KPWR in Los Angeles. B. Childs, E. A. Fundira, N. G. Maphosa, T.M. Ngwenya, P. Saungweme.
— 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
OUR pickup truck turned onto a dusty two-
track road heading away from the Nile River
in north-eastern Sudan. Ahead of us, the
landscape stretched forever and the small
bumps on the horizon, perhaps distant
mountains or nearby sand dunes masked
by mirage, were impossible to gauge in the
vastness. The only thing that appeared cer-
tain was the emptiness.
After an hour, we arrived at a wadi (dry
riverbed) lined with outcrops of crumbling
sandstone. Daydreaming as soft tunes of Su-
danese jazz crackled through the staticky
radio, I snapped back to attention as some-
thing caught my eye: a white animal-like
shape on one of the cliff faces. Wondering if
it was the desert playing tricks on me, my
doubts dissipated when we rounded a cor-
ner and stopped. Surrounding us, on every
exposed surface of rock, were thousands of
ancient petroglyphs depicting scenes of el-
ephants, giraffes, ostriches and boats.
As the wind picked up and the sand began
to blow, I stared in awe at the unexpected
scenes depicting what I would imagine
to see in the lush grasslands and winding
waterways of the Serengeti, but not in the
bone-dry Nubian Desert, the eastern flank
of the Sahara sandwiched between the Nile
and the Red Sea.
As an archaeologist who has worked on
projects from the bottom of the Black Sea
to the tops of the Rocky Mountains, it’s not
every day that a site completely and utterly
surprises me. However, this veritable ency-
clopaedia of petroglyphs etched in front of
me marked a rare and exciting exception.
“Welcome to Sabu,” said my driver with a
smile, “where you can see how Sudan used
to be.”
Hidden amongst rock outcrops between
the third and fourth cataracts of the Nile
Giraffes, gazelles, ostriches and other animals that have not lived near Sabu for thousands of
years are etched into the rocks.
River, the archaeological site of Sabu-Jaddi
(or simply “Sabu”) contains more than 1
500 rock drawings spanning 10 000 years of
human history in the region. Archaeologists
have yet to determine when, exactly, the
ancient Nubians who lived here first chis-
elled these images, but one thing is for sure:
the remarkably well-preserved etchings of
hippos, crocodiles and papyrus boats depict
a vastly different world than the parched
desert landscape that now covers much of
northern Africa, and offer a glimpse into the
Sahara’s verdant past.
“Sabu has a large diversity of figures,”
archaeologist Dr Bruce Williams said, who
worked in Sudan for more than 50 years.
“There are animals from early times,
cattle from the later Kerma period (2600-
1450BC), boats of Egypt’s New Kingdom
(1570-1069BC), a collection of Christian pe-
riod motifs and more that continue through
time.”
Beyond the sheer magnitude of drawings
and the deep history that the site encom-
passes, Sabu also provides a detailed re-
cord of how people lived and adapted as the
world’s largest desert began to form around
them.
The climate of the Sahara region was once
drastically different than it is today.
Though the desert is generally considered
to be two to three million years old, during
a time known as the African Humid Period
(roughly 13000-3000BC), seasonal mon-
soons from Central Africa swept upwards,
delivering ample rainfall to the northern
part of the continent. During this era, the
Nile surged as it was fed by countless rain-
filled tributaries that snaked into a green,
fertile plain — much like the savannahs of
Kenya and Tanzania.
At Sabu, the hundreds of animal figures
that were incised into the sandstone’s sur-
face are evidence of this forgotten era. This
earliest form of Saharan rock art is known
as the Bubaline Phase, and while Sabu isn’t
the only site with ancient petroglyphs de-
picting exotic game animals in the Sahara,
it was the first in Sudan to be documented
(by a British archaeological expedition in
the 1940s) and remains one of the only ones
readily accessible to visitors today.
Beyond the ancient art, other informa-
tion about pre-historic people’s relation-
ships with animals has been identified at
nearby excavations, where butchered bones
from warthogs, leopards, monitor lizards,
fish, gazelles and giraffes lie alongside rem-
nants of chipped stone tools and ancient fire
hearths.
As I continued my exploration at Sabu,
venturing deeper into the site, climbing
over large sandstone boulders and squeez-
ing through cracks in the cliffside, other
creatures began to appear among the tra-
ditional animals of the African plains. One
in particular, suddenly visible everywhere
I looked, stood out among the exotic: the
common cow. The appearance of the hum-
ble bovid (which marks a new artistic period
in the Sahara, known by rock art historians
as the Bovidian Phase), while perhaps not
as incongruous as an elephant or ostrich, is
evidence of an important societal shift that
was likely initiated by the changing climate
7 000 years ago.
Pastoralism has remained an integral part
of desert life in Sudan, and several indig-
enous nomadic tribes such as the Hasania
and neighbouring Bisharin continue to roam
the arid landscape herding goats, sheep and
camels in addition to their once-omnipres-
ent cows.
By moving with their animals across a
large territory, the nomadic lifestyle has al-
lowed them to persevere in the harsh de-
sert that exists where a lush savannah once
stood. — BBC Online.

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X4 ZIMBABWE INDEPENDENT XTRA JULY 17 TO 23, 2020
Lewis Hamilton sets sights
on records, racial justice
FOUR days after one of his most consum-
mate and memorable triumphs, Lewis
Hamilton returns to one of his favourite cir-
cuits this weekend with more than another
Formula One record in his sights.
As he prepares for the Hungarian Grand
Prix at the tight and twisty Hungaroring
circuit, 25 kilometres north of Budapest,
the six-time world champion will draw on
his experience and his momentum as he
pursues twin goals of a seventh drivers' ti-
tle and making lasting progress in the global
anti-racism campaign for equality, diver-
sity and justice.
Hamilton has enjoyed seven previous
victories in Hungary and on Sunday can
draw level with Michael Schumacher's
SPORTS NEWS
landmark of claiming eight at the same
Grand Prix.
Schumacher reeled off eight triumphs at
the French Grand Prix, at MagnyCours, be-
tween 1994 and 2006, a feat that Hamilton
hopes to emulate.
"Whenever I am reminded of the records
that Michael had, it's just still mind-blow-
ing to me," said Hamilton when he looked
ahead to the Budapest weekend following
his victory at the Styrian Grand Prix last
Sunday.
"I have always loved it, Hungary, Buda-
pest and Montreal you would probably say
have been my strongest so I'm excited to
go back — it is a track where the Red Bulls
usually do well so it's not going to be easy."
Red Bull's Max Verstappen seeks to end
Mercedes' winning start to the Covid-19
delayed season and prevent the cham-
pion team completing a season-opening
hat-trick.
The Dutchman came home third behind
Hamilton and his Mercedes team-mate
ValtteriBottas, who won the season-opener
at the Red Bull Ring, on Sunday and admit-
ted he did not have the outright speed to
match them.
His team boss Christian Horner, how-
ever, believes Red Bull can close that gap at
the slower Hungaroring, but Verstappen is
less certain.
"I don't know," he said. "But, for sure, I
hope it's going to be better." — AFP.
Lewis Hamilton raised a fist in support of the
Black Lives Matter movement after this win on
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
World African Markets
Name
JSE ASI
Markets NSE ASI
EGX 30
NSGE
Melody Chikono
CHAOS is looming in the insurance and
pensions industry over the government’s
decision to suspend trading on the Zimba-
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-
surers always come out the worst.
Investment analysts from the Invest-
ment Professional Association of Zimba-
bwe (Ipaz) said government’s decision
could be very damaging in the long run, as
stakeholders will not be able to access their
funds.
Economic commentators say coun-
tries that do not develop a solid frame-
work for the respect of property rights for
both physical and intellectual property are
bound to face difficulties in attracting fresh
capital.
“Property is illiquid relative to shares, so
from a liquidity perspective shares are the
most important asset for most institutions.
Pensioners rely on monthly lump-sum
disbursements from their pensions whilst
insurance companies have to pay claims
and benefits to their clients. Closing the
market means that all these stakeholders
cannot access their funds. Where will pen-
sion funds and insurers get money to pay
their clients if the market is closed indefi-
nitely?” Ipaz asked.
Pension funds and insurance companies
constitute arguably the largest pool of in-
stitutional investors holding assets on the
ZSE and, according to the Pensions Indus-
try Report of March 31, 2020, out of a total
asset base of ZW$29,8 billion, investments
in equities made up 35,3% of the industry’s
assets.
Together with investment property,
these two asset classes constitute 82,7%
of all assets, due to their capacity to hedge
against inflation.
Value chains on the ZSE that could be
the worst affected include life companies,
pension funds, short-term insurers, stock-
brokers, asset managers, custodial service
providers and banks.
FINSEC is an agile securities exchange that was born out of a
need to provide seamless issuance, trading and settlement of
a wide array of financial instruments, most of which have
remained isolated from the capital markets. Our platform
allows issuers to raise capital in an efficient, transparent and
cost effective way, while investors benefit from multiple and
convenient delivery channels that are anchored on cutting
edge technology that is unmatched.
Registered by the Securities Exchange (Alternative
Trading Platform) in terms of section 30 of the Securities &
Exchange Act [Chapter 24:25], as read with the Securities
(Alternative Trading Platform) Rules, S.I. 100 of 2016, FINSEC
provides and maintains a marketplace and facilities for
bringing together buyers and sellers of various financial
securities. Our principal modus operandi is providing a
trading platform that does not set rules for participants or
discipline or seek to control them other than by excluding
them from trading.
FINSEC is focused on pushing the boundaries in capital
market developments by providing alternative means of
raising capital to companies including start-ups, Growth
Enterprises, government institutions, municipalities and
corporates. Our delivery channels include everyday simple
and user friendly gadgets such as mobile phones, mobile
wallets and online and mobile platforms such as USSD and
SMS that enable investors to buy and sell securities from the
comfort of their homes or offices. This is in line with our
INDEPENDENT
july 17 to 23, 2020
Price (US$)
55,974
% Change
+0,14
FTSE/JSE Indices
Name Price (US$)
S&P 100 1,490,35
131,90 -1,86 S&P 500 3,226,56
10,617,42 -4,59 Nasdaq 100
24,130,26 0,61 DJIA
ZSE trading suspension
riles pension industry
Pension funds and insurance companies constitute arguably the largest pool of institutional investors
holding assets on the ZSE.
On the other hand, the analysts said rec-
ommending the establishment of a separate
US dollar-based bourse for companies like
Old Mutual Limited may see local inves-
tors rushing to dispose of shares in favour
of holding US dollar cash, which could be
detrimental to the country. In the long
run, the shares would end up mostly in the
hands of foreigners rather than locals.
“We currently don’t have a US dollar-
only market, so to propose that Old Mutual
be re-listed on a yet-to-be-established ex-
change whose modalities, rules, efficiency
and viability are unknown could prove
Listing on the Financial Securities Exchange (FINSEC)
financial inclusion drive which is meant to demystify the
notion that securities trading is complicated and meant for
the elite.
The exchange operates four trading boards namely
Equities Board, Fixed Income Board, Mutual Funds and
Alternatives Board. The Equities Board is available for the
listing of various classes of equities. The Equities Board is
further divided into Main Equities Segment for high cap
issuers and the SME Segment for Small to Medium
Enterprises. The segmentation of the FINSEC Equities Board is
meant to broaden and deepen the Zimbabwean capital
market by introducing solutions tailor made for the needs of
various classes of corporate entities of the economy.
The Fixed Income Board is available for the listing of
bonds and other fixed income securities. The system allows
automated issuance, trading and price calculation of fixed
income instruments. Admissable instruments range from
debentures, medium term notes through to municipal and
corporate bonds.
The Mutual Funds & Alternatives Board is for other
complex financial instruments such as mutual funds,
Exchange Traded Funds (ETFs), Unit Trusts and other
Derivatives. The admission of mutual funds and alternatives
on FINSEC provides investors with access to an enhanced
transparent, efficient and orderly secondary market trading.
www.theindependent.co.zw
% Change
+0,44
+0,91
10,701,68 +0,11
26,870 +0,85
chaotic. It is unknown how long it will take
to establish another exchange and whether
the new exchange would function any bet-
ter than the ZSE. Meanwhile, shareholders
that require liquidity cannot sell. “Share-
holders and investors in general are the
ones who stand to gain or lose from such
a decision to de-list their shares from the
ZSE, hence procedurally such a decision
should be subject to a special resolution by
members in a general meeting. Migrating
to a US dollar exchange is unlikely to serve
any purpose for Old Mutual Limited share-
holders. Old Mutual Limited shares are
Equally, investors and issuers benefit from greater visibility
and increased liquidity.
There are various avenues for potential issuers to join the
FINSEC official list. One such way is listing by introduction
(LBI) which allows a company to apply for listing without the
conduct of an initial public offering (IPO) prior to the initial
listing of the company's securities on the trading board of
FINSEC. It applies to an application for listing of securities that
are already issued or securities that will be issued upon
listing, where no public offering will be undertaken.
The other way is by initial public offer (IPO), which is a
method generally used by new, medium and large firms that
are looking for funds to grow and expand their businesses.
The technology that FINSEC uses automates the entire IPO
processes in a way that ensures efficiency, transparency and
accountability. FINSEC takes pride in being one of the first
exchanges in the world to offer mobile IPO of a corporate
bond.
Among other benefits, FINSEC provides a regulated
market place with standard rules and a central settlement
infrastructure operated by licensed custodians who will
independently hold cash and securities ahead of each trade
to facilitate uncompromised delivery and payment. The
FINSEC platform connects all licensed securities dealers in
Zimbabwe who will be able to collect and post sell and
purchase orders on an open board thereby allowing for
automated real-time multilateral price discovery in the
Other indices
Name Price (US$)
FTSE All World (Exc US)
% Change
Russell 1000 1,789,72 +1,04
Russell 2000 1,478,27 +3,50
largely used as a currency hedge or a store
of value by Zimbabwean investors.
This status will not change post-migra-
tion to a US dollar exchange.”
The analysts argued that investors that
are holding Old Mutual Limited shares are
attracted to the qualities that only a multi-
listed company can offer.
Further arguments are that if indeed Old
Mutual Limited was being used by certain
individuals, syndicates or corporates to il-
licitly manipulate the markets or the ex-
change rate as alleged by government of-
ficials, then would it not have been more
prudent to gather such evidence and pros-
ecute those entities rather than suspend
the market? Any perception of blanket ac-
tion or collective punishment undermines
investor confidence.
“The exchange rates therefore reflect
economic fundamentals at any point in
time. With the current premium that Old
Mutual Limited shares trade at on the ZSE
against the Johannesburg Stock Exchange
and the London Stock Exchange, if fungi-
bility was permitted, the premium would
disappear as investors bring stock in from
the JSE and LSE to sell on the ZSE. Old Mu-
tual Limited has traded at big discounts for
long periods of time during the US dollar
days when its role as a currency hedge was
not required because foreign currency was
available through the banking system,”
Ipaz said.
Meanwhile, in his mid-term budget and
review statement yesterday, Finance min-
ister Mthuli Ncube remained mum on the
issue but reiterated that the government
was forging ahead with establishing the
Victoria Falls Security Exchange (VFEX) as
part of efforts to develop the financial ser-
vices sector through the provision of op-
portunities for global investment.
trading of securities.
At FINSEC, we understand the dynamics of the ever
changing capital market industry hence we are continuously
developing our systems and products to meet these
dynamics. In fact, there are very exciting projects for both the
Capital Markets and Financial Institutions (FIs) that FINSEC is
working on, as it further makes its mark in Zimbabwe's capital
market. We will be making announcements of these
innovations soon.
To enjoy all these benefits, kindly visit the FINSEC website
and download the FINSEC Issuer Admission Rules. The FINSEC
listing rules are by design, simple and straightforward and are
continually reviewed and updated to ensure they remain
relevant and appropriate to the various classes of securities
that can list and trade on our trading boards.
The Financial Securities Exchange (FINSEC) is a member of the
Escrow Group which has interests in the financial services and
technology sectors. Corpserve Registrars and Escrow Systems
are the other members of the group.
For more information contact:
2nd Floor ZB Centre, Cnr Kwame Nkrumah and 1st Street
Harare, Zimbabwe
Tel: +263 4 758193
Email: info@finsec .co.zw
www.finsec.co.zw
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.

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big plans?
EY helps entrepreneurs think big, grow rapidly and
thrive in a challenging environment.
For more information about the EY Business Accelerator
Programme, please email: businessaccelerator@zw.ey.com
Mental Health Care as a Business
Case in the Virtual World
The World Health Organisation (WHO) tells us that an
estimated 264 million people suffer from mental health
issues worldwide. Mental health issues can be defined
as a wide range of mental conditions that affect mood,
thinking and behaviour to the extent of impairing one’s
ability to carry out daily activities and relate to others. As
such, for as long as people are present in the workplace,
then so too is the presence of mental health issues.
However, these issues have often been overlooked
because they are non-visible conditions; meaning they
cannot be readily seen and are not easy to detect.
An increased interest in employee wellness, and the
mandated remote working as a result of Covid-19, has
amplified the focus on mental health issues.
Conditions in the workplace fostering mental health
issues
Work is good for mental health, but a negative working
environment can be a source of mental health problems.
No working environment is exempt from mental health
risks, and everyone within the workplace is a candidate
for mental health problems. Whilst some people are
naturally predisposed to mental health problems through
hereditary means, others develop them from their
interaction with, and reaction to the environment around
them.
Workplace conditions such as inadequate health and
safety practices, poor communication and management
practices, limited participation in decision making
affecting one’s area of work, low levels of support
for employees, lack of role or task clarity, unclear
organisational objectives, lack of team cohesion,
workplace bullying and psychological harassment are
amongst some of the conditions that contribute to,
or trigger mental health problems in the workplace
environment. Some of these conditions have been
transferred to the virtual workplace.
Virtual working has brought in some interesting dynamics
to the conversation around mental health . To some it has
provided much desired flexibility and mental wellbeing,
while to others it has created challenges and inflicted
discomfort. Naturally man has his sense of wellbeing and
belonging reinforced by being in a community. Virtual
working has posed the risk of loneliness and isolation for
those living alone, not to mention burnout.
In the traditional work setting there is enforced
adherence to working hours as people need to travel to
and from home. This creates the divide between work
life and home life which enables people to have times
to rest their minds. When home becomes the office, the
boundaries are blurred considerably. It becomes difficult
to separate home and work life, especially marking when
work starts and finishes. Long working hours are put in
either to meet tight or unrealistic deadlines, or as an
escape from loneliness.
Symptoms of Mental Health Issues
Mental health issues tend to be non-visible, but they
manifest in a variety of visible physical and psychological
symptoms. It is important to note that symptoms of
Zimbabwe independent BUSINESS DIGEST july 17 to 23, 2020 3
Business Nerve
Center
Discover how you can build a better
working world.
Visit ey.com/zw
mental health issues in the workplace maybe different
from those in other situations. Mental health issues
symptoms come in stealth mode, but the impact is
definitely tangible.
According to the Harvard Medical School commonly
experienced mental health conditions by the working
population are depression, anxiety, bipolar disease which
is a cycling between elevated and depressed moods
(mood swings), and Attention Deficit Hyperactivity
Disorder (ADHD).
These conditions manifest themselves in nervousness,
restlessness, concentration difficulties, irritability, and
excessive worrying. They may also show in ways that
may be viewed as competence or performance issues
such as inability to make decisions, failure to meet
deadlines, inability to manage workloads, problems
executing instructions, arguments with co-workers and
being disorganised.
The physical symptoms include fatigue due to low mood
or inability to sleep peacefully which will show in lack
of energy, consistent aches and pains – be it headaches
or back pain, hypertension, gastrointestinal distress and
heart trouble to mention a few.
Impact of Mental Health Issues
Most of these symptoms may either go unnoticed or
misinterpreted in the workplace as the focus tends
to be on deliverables and meeting performance
expectations. Virtual working has separated work
teams thus compounding the situation as individuals
work in isolation, but the economic effect is definitely
tangible. For organisations the most common effects
are lost productive time as a result of abseentism, low
productivity even though an employee maybe present
(presenteeism), high accident rates and errors in one’s
work due to lack of attention to detail.
On an individual level, the employee’s career may suffer
if the manager or supervisor fails to decode that an
employee’s behaviour or performance is a manifestation
of a mental health condition - and a call for help. There
is a good chance that employees themselves may not
recognise that there could be an underlying issue.
Employees with mental health issues maybe disciplined
for their behaviour or work problems and even left out
of work projects. Additionally, they could have their
chances of progression or promotion affected, which
would translate to them earning less money than their
peers as they may be deemed a poor performer. The
chances of such individuals being managed out of the
organisation’s system tends to be very high.
Why do employees not come out in the open about
mental health issues?
Most of the working population do not come out in the
open or admit to themselves that they have a mental
health issue because of the stigma generally attached
to it. In a work setting the majority of the working
population do not seek social support and treatment as
they fear being viewed as a failure or incompetent. Most
work settings reward high performers and individuals
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
productivity.
When working virtually, individuals need to make
investments in their own mental health and well-being.
When virtually working from home it is important to set
boundaries that separate work from home life as there
is a danger of work life dominating the other. A few
recommendations to help virtual workers safeguard their
mental health:
1. Designate a comfortable space in the home to work
from, not an easy feat considering that most homes
do not necessarily have home offices.
2. To avoid burn out, set clear working hours and
ensure that colleagues are aware of these.
3. The working day should have a start and end, just
like in the traditional office.
4. When clocking out, all devices used for work should
be switched off, and one should literally leave the
home office to mark the end of the working day.
5. Incorporate social interaction breaks such as virtual
coffee break with a friend or family in the daily
routine will alleviate loneliness and feelings of
isolation. Also check in with team mates to find out
how they are doing workwise and personally.
6. Include exercise in the daily routine, and endeavour
to have a good night’s sleep will also help.
Mental health care may attract an initial cost to both
the employer and the employee, but in the long term,
healthier employees are productive employees, and that
has a positive effect on the company’s financial health.
Anne Madara
To find out more contact Anne Madara, Talent Assistant
Manager on:
Email: anne.madara@zw.ey.com or eymarketing@zw.ey.com
Address: Angwa City Building, Corner Julius Nyerere Way/
Kwame Nkrumah Avenue. P O Box 62, Harare, Zimbabwe.
Tel: +263 4 750905/ 750979
This article was compiled by EY as a source of general information
and notification and should not be construed as a formal
professional/legal opinion. Although reasonable skill and care
is taken when providing information, EY offer no warranties or
representations as to the information’s accuracy. The information
provided is not intended to replace the need for an expert/ legal
opinion on interpretation, application and consequences of the
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
THE attacks by government against Old Mu-
tual Zimbabwe, a subsidiary of pan-African
investment, savings, insurance, and bank-
ing group Old Mutual Limited headquar-
tered in South Africa, has cast further doubt
about the country’s suitability for investors.
The government suspended trading of
stocks on the Zimbabwe Stock Exchange
(ZSE) last month and is now targeting del-
isting Old Mutual from the main bourse.
But, removing Old Mutual from the ZSE
would remove ZW$5,26 billion on the main
bourse as it has a total market capitalisation
of ZW$228,87 billion.
Old Mutual is being targeted because of
the Old Mutual Implied Rate (OMIR), one of
the few gauges of the Zimbabwe exchange
rate, which is calculated through comparing
the price of Old Mutual Limited shares in the
United Kingdom, South Africa and locally.
With the government controlling the of-
ficial exchange rate at the time, the market
was forced to use Old Mutual Limited shares
to gauge the accuracy and value of the Zim-
babwean dollar.
As such, the attack on Old Mutual Zimba-
bwe is significant in that the company has
nothing to do with the OMIR, but is being
targeted.
“The ZSE is one of the few sites where
there has been persistent foreign interest
even during the ongoing economic diffi-
culties. Now the regime has shut it down,”
United Kingdom-based legal scholar Alex
Magaisa said in his blog on Tuesday.
“But why is the regime behaving so coun-
ter-intuitively? One reason is that the gov-
ernment relies on scapegoating as a strategy
to deflect criticism for its failures. The latest
scapegoat is big business, hence the target-
ing of Old Mutual and EcoCash. But these
companies are not the problem."
Magaisa pointed out that government is
barking up the wrong tree, accusing the fi-
nancial institution for the rapid freefall of
the local currency.
“Take, for example, the charge against
Old Mutual; the government thinks the Old
Mutual Implied Rate (OMIR) is causing the
crash of the beleaguered Zimbabwean dol-
lar, which was re-introduced ill-advisedly
last year. But the OMIR simply tracks the
price difference in Old Mutual’s shares,
which are listed on more than one ex-
change,” Magaisa said.
“A stock market is a market for shares,
just like the vegetable market is a market for
vegetables. The price of shares responds to
conditions in the economic environment.
These conditions include exchange rates.
Movements in the share price are, there-
fore, a reflection of these conditions, not the
cause as the government seems to think.”
Even shares of PPC and Seed Co Inter-
national, which have dual listings outside
Zimbabwe, are used to determine the local
currency’s value.
According to American financial and eco-
nomic literacy website Investopedia, currency
prices are determined by either a floating or
fixed rate.
“A floating rate is determined by the open
market through supply and demand on
global currency markets. Therefore, if the
demand for the currency is high, the value
will increase. If demand is low, this will
drive that currency price lower,” Investopedia
said in a September 2019 article.
“A fixed or pegged rate is determined by
the government through its central bank.
The rate is set against another major world
currency (such as the US dollar, euro, or
yen). To maintain its exchange rate, the gov-
ernment will buy and sell its own currency
against the currency to which it is pegged.”
In the instance of a floating rate, there
needs to be demand for a currency which is
a function of market confidence. And for a
fixed rate, like the one in Zimbabwe, there
needs to be a significant amount of a more
stable foreign currency to be used to back
the local one.
As a result, due to the Zimbabwean dol-
lar lacking significant market confidence
or foreign currency the rate of the currency
cannot be determined through the tradi-
tional means.
This has led market experts to come up
with comparative aggregators such as Old
Mutual Limited shares to properly value the
local currency.
There is no direct relation between Old
Mutual Zimbabwe and the local unit.
But, where there is a relation is in the gov-
ernment’s threat to delist Old Mutual Zim-
babwe and future investment which has
made investors scuttle to leave the market.
These investors were already trying to
leave amid growing economic woes caused
by government policy failures, hyperinfla-
tion, declining consumer spending and thus
low economic activity, weakening local
currency, declining trade, and acute short-
age of foreign currency.
And if Old Mutual Zimbabwe leaves the
market, this could further scare away more
investors. Foreign direct investment into the
country has plummeted from US$717 mil-
lion in 2018 to US$259 million last year
“We are not trading at the moment. We
have not finalised anything yet. We are still
talking to the government and our regulator
on how we are going to come out of this (lift-
ing the suspension of trades on the ZSE),”
ZSE chief executive officer Justin Bgoni told
businessdigest on Wednesday.
And when pressed on the attacks on Old
Mutual Zimbabwe, Bgoni said: “Negotia-
tions are ongoing and we have nothing that
is finalised. My concentration at the mo-
ment is to get the market suspension lifted
so we will be putting effort there.”
The targeting of Old Mutual Zimbabwe has
a devastating impact on the economy be-
cause it is arguably the biggest institutional
investor in Zimbabwe and, as a result, could
have a domino effect on other stocks. Fur-
ther, Old Mutual Zimbabwe is a shareholder
in a majority of local firms and banks whose
muscle alone is helping these entities com-
bat the highly unstable economy.
“Obviously, it (delisting Old Mutual) will
be seen extremely negatively by foreign in-
vestors. After all, the trading in Old Mutual
shares has nothing to do with Old Mutual
the underlying company, that is the shares
traded in the market are normal as are the
other listed companies,” Imara Capital Zim-
babwe (Pvt) Limited chief executive officer
Mark Tunmer said.
“Basically, Old Mutual as an underlying
listed company certainly isn’t responsible
for how the shares are traded or the price at
which the shares are traded so it’s not fair
to be singling out Old Mutual the company
because as I said it has no control over how
its shares are traded. Obviously, the con-
cern is if it’s Old Mutual this week, who will
it be next week? This is a concern not only
for foreign investors, but also for domestic
investors.”
Another reason why the move could have
a significantly adverse impact on Old Mu-
tual Zimbabwe is that since August 2017 the
company has pursued an equity strategy of
increasing its assets through equities.
This was because of inflationary pres-
sures, concerns over the sustainability of
the budget deficit, coupled with low interest
rates and unstable currencies such as bond
notes and more recently the Zimbabwean
dollar.
“After all, the share market is one of
the largest market holders of institutional
wealth in Zimbabwe and when l say insti-
tutional wealth obviously I am primarily re-
ferring to pension funds, that is the savings
of formal employment and insurance com-
panies. So the share market is an extremely
important source of the preservation of the
wealth of the nation,” Tunmer said.
The government, through the ruling
Zanu PF, has suggested creating a foreign
currency-denominated stock exchange to
militate against Old Mutual Zimbabwe being
delisted.
But, with the currency depreciating daily,
companies will be left with very little op-
portunity to buy significant amounts of for-
eign currency to trade.
Further, if investors are already leaving,
the idea of attracting foreign investment will
be very difficult as the government has re-
peatedly shown it has no respect for prop-
erty rights.
An example of this is when the govern-
ment adopted the local currency last year
and wiped out more than US$7 billion in
its domestic debt or when the government
ruled that US dollar debts before February
22, 2019, could be settled as local currency
at 1:1 parity early this year.

ZPI to prioritise de-risking ZSE trades settled: CSD

Melody Chikono
ZIMRE Property Investments (ZPI) says it is pri-
oritising de-risking its portfolio, diversification,
growth and payment of dividends to shareholders
while remaining true to the company’s founding
values.
De-risking refers to the practice whereby fi-
nancial institutions cut relationships and close
the accounts of clients perceived to be high risk.
Without a proper de-risking strategy in place,
one could end up losing hard-earned goal-based
capital at the penultimate moment due to market
fluctuations.
ZPI’s property portfolio performance in the
six months to June 2020 resulted in the central
business district offices contributing ZW$4,750
million (31%) with 88% occupancy levels, while
pure retail contributed 59% at ZW$9,08 million
at 10 % occupancy level.
Residential was the lowest, contributing 1%,
although occupancy was 100%.
During the company’s annual general meet-
ing on Tuesday this week, ZPI managing direc-
tor Edson Muvingi said although there has been a
“bloodbath” due to Covid-19, especially in Victo-
ria Falls, it was forging ahead with its plans.
Besides the newly completed Sawanga Mall
in Victoria Falls, ZPI is now working on Zimre
Lodges project in the same resort while it is also
pursuing the Selborne student hub in Bulawayo.
“On the Zimre lodges project we have advanced
in terms of local authorities requirements. What
is outstanding is the actual issuance of the per-
mit then we proceed to construct. The question
is why move in now when we are saying there
is a blood bath? The long-term for us is clear, we
believe there is going to be significant upsurge in
tourism in Victoria Falls,” he said.
“We have also spoken to the ZSE in relation
to legislation of Reits (Real Estate Investment
Trusts). We think that it is significant in terms
of funding. We are also allowing participation of
the general public. On the Bulawayo one we are
looking at 954 beds that are big on the market,”
Muvingi said.
“We are following as a model of a real home
where the students can cook and so on. We are
confident that we are going to perform well and
the strategy that we have been living since we
started from July 2007 is the same that we are still
living. We are looking at diversification, growth
and de-risking of our portfolio, as well as paying
dividends to our shareholders.”
Preliminary work on the 954-bedsitter student
facility, being constructed at an estimated cost
of US$9,8 million, is expected to commence in
the fourth quarter of 2020, as plans have already
been approved .
Muvingi said the estimated construction time is
18 months and the project will take in the form of
a Reit of property fund structures.
THE Chengetedzai Securities Deposi-
tory (CSD) says it managed to settle
all outstanding trades executed on the
Zimbabwe Stock Exchange (ZSE) before
the abrupt suspension of the bourse and
now awaits further information regard-
ing the resumption of trading on the
stock market.
At the end of June, government issued
statements announcing the introduction
of restrictions on mobile money services
and suspension of trading on the ZSE.
Subsequently, the ZSE issued a notice
indefinitely suspending trading on the
market.
CSD chief executive Campbell Musi-
wa, in a June 2020 update, said there
were no new listings on the ZSE during
the month under review with the number
of securities listed on the ZSE remaining
unchanged.
“The planned listing of the exchange’s
first Exchange Traded Fund (ETF) is yet
to materialise following delays due to
the Covid-19 pandemic. On 26 June
2020, the Secretary for Information and
Broadcasting Services issued a state-
ment announcing the introduction of
restrictions on Mobile Money Services
and suspension of trading on the ZSE.
Subsequently, on the 29th of June 2020,
the ZSE issued a notice indefinitely sus-
pending trading on the market. The CSD
has been able to settle all outstanding
trades executed on the ZSE before the
suspension in accordance with the CSD
Business Processes and the normal set-
tlement cycle,” he said.
The bull run that started in the month
of May continued into the month of June,
with ZSE equities market capitalisation
growing by 49,77% to ZW$228,5 billion
from ZW$152,6 billion as at the end of
May 2020.
Market value of the securities placed
on the CSD also recorded a significant
increase of 49,26% to ZW$106,56 billion
from ZW$71,39 billion as at May 31, 2020.
On the other hand, dematerialised
securities accounted for 46,67% of the
ZSE equities market capitalisation as at
June 30, 2020 with the average demate-
rialisation penetration ratio (demat ratio)
across all counters remaining at 45% as
at June 30, 2020.
The ZSE equities market turnover
recorded another substantial increase
to ZW$1,894 billion for June 2020 from
ZW$569,25 million achieved in May
2020. This saw the cumulative number
of trades processed in 2020 closing the
month at 23 795. — Staff Writer.
 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
Victor
Bhoroma
analyst
THE government directive to suspend the
Zimbabwe Stock Exchange (ZSE) opera-
tions on the June 26 and the recent political
threats to eject Old Mutual Zimbabwe from
the financial system all but ends the “Zim-
babwe is open for business” mantra.
The June 26 directive also compelled mo-
bile money operators (MMOs) to suspend
operations even though the regulator, the
Reserve Bank of Zimbabwe (RBZ), later
clarified the position by banning only mo-
bile money agents, merchant-to-merchant
transfers and merchant-to-individual
transactions in a move presumably meant
to curb illicit financial flows (IFFs).
ZSE operations date back to 1894, even
though the current trading format started in
1993 when the stock exchange was opened
to foreign investment. The stock exchange
market operations are supervised by the
Securities and Exchange Commission of
Zimbabwe (SECZ) under the purview of the
Ministry of Finance.
As of the date of suspension, the mar-
ket capitalisation for the 57 entities trading
on the ZSE was ZW$228,58 billion, which
translates to US$3,47 billion if the auction
rate is used and US$2,54 billion if the paral-
lel market rate is used.
The recent knee-jerk announcements
add to threats of farm grabs around the
country where a number of proper-
ties owned by white commercial farmers
have been targeted around Marondera and
Macheke in Mashonaland East.
The recent threats and ultimatums to es-
tablished farmers follow an announcement
by the government that farm sizes are going
to be resized in all the country’s agro-eco-
logical regions in line with the recommen-
dations of the Lands Commission, which is
auditing all farmland. According to the new
regulations gazetted on February 14, 2020,
under Section 21 of the Land Commis-
sion Act of Zimbabwe (Chapter 20:21), all
farms in Natural Region 1 should be below
250 hectares while those in Region Two
must below 500 hectares. Natural Region
Three farms should be below 700 hectares
whereas those in Region Four must be un-
der 1 000 hectares and those in Region Five
below 2 000 hectares.
The key concern on the recent assault
on property rights is that the government
of Zimbabwe is acting unilaterally with-
out consulting the responsible authorities
such as the SECZ, ZSE and RBZ, who are
then supposed to institute investigations
into unlawful or suspicious business ac-
tivities and then inform the affected parties
through proper channels so as to instill in-
stitutional integrity.
Institutional integrity is key to uphold-
ing property rights in any country, without
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
business & investment forum
Assault on property rights
closes Zim to business
Reserve Bank of Zimbabwe building in Harare
greenfield investments.
Persistent challenges to lure FDI
Foreign direct investment (FDI) inflows into
Zimbabwe plummeted from US$717 million
in 2018 to US$259 million in 2019, high-
lighting the country’s renewed challenges
in attracting long-term investment despite
the abundance of opportunities in the local
market.
Short-term investments as represent-
ed by portfolio investments (investments
in local financial securities and equities)
plunged by more than 93% to US$3,7 mil-
lion in the same period, indicating a sharp
deterioration in the investment climate
within the last 12 months.
In the first quarter of 2020, foreign inves-
tors bought a monthly average of just above
US$1 million worth of shares on the local
bourse, down from a monthly average peak
of US$26 million in 2013. As such, it is fair to
say most investors had adopted a wait-and-
see attitude on the “Zimbabwe is open for
business” mantra and the unfolding events
are vindicating their fears.
Gloomy picture for VFEX
The government announced that it will
soon launch the Victoria Falls Securities Ex-
change (VFEX) as part of a broader plan to
turn the renowned resort town into an off-
shore international financial centre (IFC).
The VFEX will be managed by the ZSE and
liberalised to trade in foreign currency only.
The ultimatum to suspend the local
bourse all but taints such plans as investor
confidence cannot be built through abuse
of property rights or decisions shrouded
in secrecy from the same government that
seeks to quote global investment.
‘Open for business’ assessment
Even though Zimbabwe climbed 15 plac-
es on the ease of doing business rankings
to 140 out of 190 ranked countries and
amended its Indigenisation and Empower-
ment Act which stipulated 51% local own-
ership, not much has been done to protect
investor property rights. The same applies
to the much-needed governance and insti-
tutional reforms that could usher economic
stability in the country.
The government itself has been at the
forefront of violating court orders while
property rights violations by politically
connected citizens have not be condemned
or punished. Government agencies still
maintain a regime of redundant and cum-
bersome procedures for setting up busi-
ness operations, exporting or importing
commodities into the country. Investing
in agriculture and mining are of particu-
lar concern to potential investors as they
are shrouded in secrecy and often require
political favour. This has provided fertile
ground for high-level corruption.
The recent command-style directives
paint a very bad picture on Zimbabwe as
an unsafe investment destination where
even the national bourse can be shut down
without consultation of the regulator or
proper explanation to the hundreds of in-
vestors that have potentially been impacted
by such directives.
The selective application of the law and
outright disregard for guarantees to prop-
erty rights have no place in a country
which parades itself as open for business or
competes with its neighbors for the same
foreign investment. Investors envisage
an investment environment where their
property is protected by law (independent
judiciary) and not by political interests as
those can shift overnight.
Secure property rights vastly improve
economic productivity as evidenced by a
recent declaration of Mauritius as the only
“high-income country” in Africa by the
World Bank. Therefore, there is a heavy
economic cost to the recent assault on
property rights and the recent ultimatums
by the government. The cost is lack of eco-
nomic development and investment (for-
eign or local).
Local investors actually feel safe to stash
their investments in other countries while
generating such proceeds from the local
economy. Private investors are not willing
to commit their capital to the local econo-
my in public-private partnerships (PPPs),
joint ventures, greenfield investments, buy
struggling state entities or invest in other
giveaway deals from the Zimbabwean gov-
ernment largely because of the country’s
tainted respect for property rights. It is fair
to point that the government overpromised
potential investors with its “Zimbabwe is
open for business” mantra and is struggling
to live up to it.
Bhoroma is a marketer by profession, freelance
economic analyst and holds an MBA from the
University of Zimbabwe. — vbhoroma@gmail.
com or Twitter: @VictorBhoroma1.
 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
Most people cope with Covid-19 at home
COVID-19 is a virus that is dead-
ly for some, unpleasant but not
fatal for others and displaying no
symptoms at all in others. There
are millions of people worldwide
infected with the virus, only a
small percentage of whom have
died from it.
Nevertheless, although less
than 7% of those confirmed as
infected die from the virus, there
are hundreds of thousands of
infected people who have died,
which is why it is important to
do everything that can be done
to avoid it.
The fact that symptoms take
from two to 14 days after infec-
tion to appear and that some
people may never display any
symptoms, despite being in-
fected, makes it a difficult virus
to combat.
There have been cases even
in Zimbabwe of people infect-
ed with the virus who are only
discovered to have it when they
are tested because they have be-
come very ill and been admitted
to hospital.
Most people infected only dis-
play mild, if any, symptoms and
will recover on their own. Be-
HEALTH PAGE
cause of the highly contagious
nature of the virus, people are
not encouraged to go to their
doctor but rather make contact
with a medical professional ini-
tially over the phone, if they are
concerned they may have the
virus. It can be difficult to know
whether or not you have the vi-
rus, unless you have been tested
for it. However, leaving it too late
to seek medical help can prove
fatal.
Symptoms
Two of the major symptoms of
Covid-19 are a cough, particu-
larly a dry cough, and shortness
of breath or difficulty breathing.
In addition, there are gener-
ally at least two other symptoms,
which include a fever, chills, re-
peated shaking as a result of the
chills, muscle pain, a headache,
a sore throat and loss of taste or
smell.
If you suspect you may have
been exposed to Covid-19 you
should contact your healthcare
provider.
Unless the symptoms are se-
vere, you will probably be ad-
vised what you can do at home to
relieve the symptoms.
If, however, you have trou-
ble breathing, persistent pain or
pressure in the chest, confusion
that you did not have before, or if
you cannot be aroused or if your
lips or face are bluish, these are
emergency warning signs. Medi-
cal assistance should be sought
immediately.
You can call the Ministry of
Health and Child Care on its Cov-
id-19 toll-free hotline number
2019 for assistance. Cimas doc-
tors on call during the Covid-19
pandemic can be reached on
08677400500.
If you think you may have the
virus and are living with other
people, you should, if possible,
keep at least two metres away
from them and wear a face mask
to protect them. If difficulties
in breathing prevent you from
wearing a face mask, then at
least make sure that if you cough
or sneeze you do so into a tis-
sue, which you then dispose of,
or into the inside of your elbow.
Thoroughly wash your hands af-
terwards. Wash them frequently
with soap and water or use a
hand sanitiser.
Do not share personal items,
such as towels, bedding and eat-
ing utensils, cups and glasses.
Treatment
There is no known cure for Cov-
id-19. However, treatment is
available for the symptoms and
for other conditions that may be
brought on by Covid-19.
Treatment to relieve the symp-
toms may include paracetamol
for pain relief, cough mixture,
drinking plenty of fluids and rest.
If you are seriously unwell, you
may need to be admitted to hos-
pital. If you are having difficulty
breathing, you may be given ox-
ygen and may be connected to a
ventilator, which is an apparatus
that helps you to breath.
Looking after Covid-19 patient
If you are looking after a per-
son who is confirmed or sus-
pected to have the virus, clean
and disinfect the bathroom and
frequently touched surfaces, in-
cluding phones, door handles,
remote controls, work surfaces,
tables and other frequently used
surfaces or objects.
Try to keep two metres away
from the infected person and
wear protective gear, if you can.
Prevention
Prevention requires strict ad-
herence to maintaining a physi-
cal distance of two metres from
other people and strict personal
hygiene through thoroughly
washing your hands frequently.
During a lockdown you need to
be strict in staying at home and
not allowing anyone to visit you.
If you go out or if you are shar-
ing accommodation with anyone
suspected of having the virus,
maintain your distance from oth-
ers and wear a mask, although
wearing the mask is chiefly to
protect others from you, should
you unknowingly have the virus.
Coping
The Covid-19 coronavirus is
frightening, because, even
though less than 7% of those
confirmed as having the virus die
from it globally. It can kill, its ex-
tent of spread is still very much
unknown and there is no known
treatment or vaccine available.
It is important to exercise pre-
cautions to protect yourself from
the virus, while at the same time
not allowing yourself to become
stressed out.
You should look after your
health by adopting healthy hab-
its, such as eating a healthy diet,
having plenty of exercise, hav-
ing enough sleep and engaging in
relaxing activities. If you live on
your own, it is important during
a lockdown to keep in touch with
friends and relatives through the
phone or social media.
The healthier you are, the more
likely you are able to fight the vi-
rus if you become infected with
it.
Do not allow fear of the virus
to cause you undue stress. At the
same time take the recommend-
ed precautions to avoid becom-
ing infected with the virus.
If you suspect you have the
virus, seek advice from a medi-
cal practitioner by phone. If
the symptoms become severe,
particularly when it comes to
breathing problems, contact a
health provider or phone the
Ministry of Health and Childcare
Covid-19 hotline which is 2019.
The information in this article is
provided as a public service by the
Cimas iGo Wellness programme,
which is designed to promote good
health. It is provided for general in-
formation only and should not be
construed as medical advice. Read-
ers should consult their doctor or
clinic on any matter related to their
health or the treatment of any health
problem. — igo@cimas.co.zw or
WhatsApp 0772 161 829 or phone
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
RODNEY
NDAMBA
ANALYST
THE Covid-19 pandemic continues to haunt
economic recovery in Africa, which has
been predicted to shrink by between -2,1
and -5,1% with Zimbabwe expected by the
World Bank to shrink by -7,4%.
It is certain that the country faces a
mammoth task in rebooting the economy
and the private sector. At the moment, it is
critical to understand the country’s future
economic model and recovery philosophy
as many nations calibrates towards “Green
Economic Recovery”. This article chroni-
cles some of the reforms once highlighted
in prior publications which remain a defin-
ing factor for convincing sustainable capital
(SC) and quality foreign direct investment
(QFDI) to Zimbabwe for sustainable eco-
nomic recovery. Post Covid-19, compe-
tition for investors will be more fierce in
Africa, which may require Zimbabwe to de-
velop its own “Blue Ocean Strategy” (Kim
and Mauborgne, 2015) by undertaking le-
gitimate and robust reforms to exit the cur-
rent “Red Ocean” economy.
Robust financial sector reforms
Firstly, the prevailing banking sector fragil-
ity evidenced by public mistrust has cre-
ated the opportunity for the “black market”
to prevail. Many people prefer to store their
United States dollars under their “mattress”
than the banks. Contemporary economics
regards central banks as pivotal in driving
economic development and political stabil-
ity in any country (Tucker, 2008). There-
fore, robust and legitimate financial sector
reforms should be a priority to build public
trust because no investor will invest their
money through institutions not trusted by
their own nationals.
The banking sector in Zimbabwe is still
to complete implementing Basel II, while
some central banks in Africa have pro-
gressed to Basel III, the Equator Principles
and newly developed Principles on Respon-
sible Banking (PRB) (2020). As such, this
makes our local banks fail to host climate
finance, green finance and positive impact
finance investments, which are critical for
sustainable development in Zimbabwe.
Therefore, Reforming the Reserve Bank
First (Ndamba, 2018) should be prioritised
to realign with central banking (regulation
and supervision) functions (Arnold, 2012).
Finally, the sector needs an ombudsman’s
DEATH NOTICE
THE LATE
Jayant Chunilal Joshi
The Joshi Family regret to announce the passing
away of Jayant Chunilal Joshi. Affectionately known
as "J C", his valiant spirit fought his last fight right to
the end and he passed away peacefully in London on
13th July 2020, with his devoted wife Daksha and
children Nita, Heena and Ketan at his side.
BUSINESS OPINION
Robust, legitimate reforms
key to economic recovery
The private sector in Zimbabwe has the opportunity to create new markets in global supply chains
disrupted by Covid-19.
office, which in South Africa has helped
strengthen their financial sector.
Strengthening institutions
In 2018, an article titled Zimbabwe must
build strong institutions called for strength-
ening of institutional governmentality.
Countries with weak institutions tend to be
associated with unprecedented corruption,
speculative tendencies, poor corporate gov-
ernance, economic paralysis, weak regula-
tory frameworks, high inflationary tenden-
cies, policy inconsistency, lack of public
accountability, inefficiencies, an approach
more academic than applied, too many
laws that are never followed and poor eco-
nomic competitiveness.
Progressive and competitive economies
are supported by strong institutions which
uphold policies, laws and regulations.
Cases can be cited in Rwanda, South Af-
rica, Botswana, Namibia, United Kingdom,
United States, Australia, New Zealand, Ja-
pan and South Korea etc. Zimbabwe needs
to take strong measures to buttress and
build its regulatory, governance and en-
forcement institutions post the pandemic
to build economic confidence.
Tery DI6509335-WT16
Sustainable economic model
In 2019, a publication titled Zimbabwe must
build a sustainable economic model called
for a model-based philosophy. The prevail-
ing economic fragility resulting from the
absence of an economic model continues to
be a stumbling block for sustainable foreign
direct investment. Emerging economies like
Vietnam, South Korea, Singapore, Mauri-
tius and Malaysia have built their strength
on well-pronounced and robust economic
models. An economic model is a construct
of designed economic variables that deliver
sustainable wealth for a nation in a pre-
dictable and integrated manner (Ndamba,
2019).
An economic model helps understand
and predict the impacts of change in eco-
nomic variables (Tucker, 2008). Obser-
vations have shown that strong emerging
economies rely on economic models.
The sustainable rebooting of the economy
of Zimbabwe cannot be achieved without
a sustainable economic model; this is dif-
ferent to relying on policies and strategies.
While the country is going through the
Covid-19 pandemic, this could be an op-
portunity for developing a robust economic
model for Zimbabwe, just like many other
emerging and developed economies. Coun-
tries like Japan, China, South Korea, Malay-
sia and Singapore provide great examples of
how economic models have contribute.
Investments management reforms
Government investments are becoming
an economic growth strategy for emerging
economies unlike heavily relying on tradi-
tional fiscal systems of taxes.
In 2019, a publication titled Zimbabwe
must develop a robust Government Invest-
ment Management Framework advocated
the establishment of the Zimbabwe In-
vestment Corporation (ZIC) which would
independently manage all government in-
vestments without political interference.
In Japan, government assets are managed
through the Japan Investment Corp (JIC).
In South Africa, it is the Public Investment
Corporation (PIC); Singapore — Singapore
Investment Corporation (SIC); South Ko-
rea — Korea Investment Corporation (KIC);
and China — China Investment Corpora-
tion (CIC), to name but a few. Should this
prevail, it will be a turning point for corpo-
rate governance in parastatals, state-owned
enterprises (SOE) and private companies
controlled by the government in addition
to an option of listing them on the stock
exchange.
Fiscal systems reforms
The fiscal economics remain traditional
hence requiring rethinking towards de-
velopmental and responsible taxation to
enable Zimbabwe to meet the Sustain-
able Development Goals (SDG). Zimbabwe
was ranked 126 out of 166 countries on the
SDG Performance (Sustainable Develop-
ment Report 2020). The economics of taxa-
tion in Zimbabwe requires transparency
and responsible tax behaviours (James and
Nobes, 1983; CSR Europe and PWC, 2016).
Recently, the Global Reporting Initiatives
(GRI) launched a first global Tax Standard
(GRI207) requiring country-by-country
tax payment disclosures.
Nigeria Stock Exchange just hosted an
event to support the standard, while in
Zimbabwe this standard is covered under
Statutory Instrument 134 of 2019. As such, it
is incumbent upon the Zimbabwe Revenue
Authority (Zimra) and Ministry of Finance
and Economic Development to use the
standard for driving responsible and trans-
parent tax behaviours to enhance domestic
resource mobilisation.
Public infrastructure development
Water and energy are emerging as the great-
est challenge Zimbabwe faces which could
deter investors. The ability to consistently
supply energy such as electricity, petrol and
diesel continues to make the business envi-
ronment difficult. However, these utilities
are being provided on a high cost structure
which makes local products uncompetitive
in regional and international markets. It is
important to acknowledge the great work
being done by the government on the Beit-
bridge-Harare Road. However, attention is
still required on dams, roads, rail network,
public health and service delivery.
Private sector
The private sector in Zimbabwe has the op-
portunity to create new markets in global
supply chains disrupted by Covid-19.
However, these markets have high
screening standards for suppliers based
on environmental, social and governance
(ESG) considerations which many compa-
nies do not take seriously. High value and
competitive global supply chains have high
sustainability or ESG standards (Spence and
Rinaldi (2010). Recent research at Oxford
University’s School of Sustainable Finance
showed evidence that there are effects of
firm-level ESG practices on macro-eco-
nomic performance of a country (Zhou Xi
et al,2020).
This research can be substantiated by
evidence from Singapore, South Africa, Ja-
pan and South Korea, hence private sector
development and reform are key for Zim-
babwe. However, global investors have
adopted an ESG investing stance during the
pandemic (UNPRI, 2020, Blackrock, 2020,
Deloitte US, 2020), which becomes a bar-
rier for many companies in Zimbabwe. Fi-
nally, corporate governance remains key
for sustainable investment, hence the need
for strong enforcement and monitoring
mechanisms.
Country risk profile
Lastly, we look at the publication titled
Zimbabwe must manage its country risk
profile to attract investors (Ndamba, 2020).
The recent stance by the IMF and World
Bank is a reality check of how country risk
profile can backfire if not managed. The
country should take strong measures to
deter corruption, human rights, poor cor-
porate governance, bank sector trust gap
and regulatory oversight deficiencies to im-
prove confidence.
In conclusion, the country urgently needs
a robust post-Covid-19 economic recovery
model before the economy opens.
South Africa recently published its own
document outlining its sector-by-sector
economic recovery strategy post the pan-
demic. Without convincing robust and le-
gitimate reforms, and mind-set change, the
economy may never recover or be invest-
able hence neighbouring countries gaining
competitive advantages over Zimbabwe de-
spite its vast natural resources.
Ndamba is the chief executive and founder of
the Institute for Sustainability Africa (INŚAF), an
independent think-tank and research institute
“advancing sustainability initiatives for Africa”.
These weekly New Perspectives articles are
co-ordinated by Lovemore Kadenge, immedi-
ate past president of the Zimbabwe Economics
Society. — kadenge.zes@gmail.com or mobile
+263 772 382 852.

EMMANUEL
KORO
JOURNALIST
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
against the Barack Obama Administration
imposed blanket ban on hunting trophy
imports endangered species that did not ac-
cept a case-by-case importation policy that
acknowledges that not all countries’ wild-
life populations are endangered.
“Therefore, this landmark court decision
is sweet and hard fought victory not only for
the SCI, but also the African countries that
benefiting from the hunting industry,” SCI
Conservation manager Joseph Goergen said.
An exclusive statement released by SCI
lawyers says that the California State Bill SB
1175 aimed at prohibiting possession what
the state considers to be endangered wild-
life trophies “is illegal with respect to spe-
cies listed under the US Endangered Species
Act (ESA).”
“The ESA does not allow US States to pro-
hibit activities that are permitted by the
federal government under the ESA; the legal
term is that State actions are “preempted”
under US federal law,” the SCI lawyers, Re-
gina Lennox and Jeremy Claire, said.
“The US Fish and Wildlife Service already
regulates the importation of elephant, leop-
ard, lion, and rhino among other species
covered by this bill. California will be sued
if the bill [SB 1175] becomes law, and ulti-
mately, SCI believes that a court will find
that this law cannot apply to ESA-listed
species.”
However, the SCI lawyers said six months,
maybe more, would “likely pass before the
court could declare the law illegal with re-
spect to these species.” In the interim, Cali-
fornia residents would not be able to pos-
sess these species in California. Meanwhile,
the SCI CE, Laird Hamberlin said “the real
victory from this ruling [DC Circuit Court
ruling] belongs to the hunters who will now
encounter a more factually driven importa-
tion process as part of their crucial role in
African conservation. SCI deeply appreci-
ates the DC Circuit Court’s wise decision”.
California SB 1175 Bill status
This bill is not yet law. It must be passed
by both houses of the California legislature
and signed by the governor to become law.
It passed the California State Senate on June
26, 2020. It now goes to the California As-
sembly for consideration. If the bill passes
the California Assembly, it will go to Gov-
ernor Gavin Newsom, who will need to de-
cide whether to sign it into law or to veto or
reject it. In 2018, a similar bill was vetoed by
then-governor Brown. However, the cur-
rent governor’s willingness to enact or veto
this bill is unknown.
California SB 1175 Bill support
The bill is strongly supported by animal
rights groups, including a California organi-
sation called “Social Compassion in Legisla-
tion” and the Centre for Biological Diversity.
The SB 1175 Bill claims that the prohibition
of wildlife trophies in the state of California
is needed because across Africa elephant
populations have declined 30% since 2007;
ZIMBABWE INDEPENDENT BUSINESS DIGEST JULY 17 TO 23, 2020 11
ENVIRONMENT NEWS
California warned against banning
trophy hunting and ivory imports
lion populations have declined
43% since 1993; and black rhi-
no have declined 97.6% since
1960. “In order to address
these diminishing numbers,”
the bill seeks to “reduce the
demand for new trophies” of
the covered species.
Contrary to these claims,
Sadc countries from where
most of the prohibited trophies
come do not have endangered
elephant populations. They are
elephant overpopulated with
Botswana’s elephant popula-
tion currently dying in hun-
dreds in what most veterinar-
ians and ecologists worldwide
widely believe to be caused
by elephant overpopulation.
The UN Convention on Inter-
national Trade in Wild Spe-
cies of Fauna and Flora (Cites)
country-by-country case el-
ephant population assessment
method called split listing. Ac-
cording to this method, most
Sadc countries are elephant
over-populated and have. The
Sadc countries’ giraffe, plains
zebra, hippo, baboon and hy-
enas are also not endangered.
Bill opposition
Many hunting organisations
oppose the bill, including SCI.
SCI has been and remains
strongly engaged at every step
to try and defeat this bill. SCI
has submitted numerous let-
ters in opposition to the Bill
and engaged its members to
contact their State representa-
tives to oppose the Bill.
“The governments or wild-
life authorities of Mozam-
bique (Anac), Namibia (MET),
Tanzania (Tawa), Zambia
(DNPW), and Zimbabwe
(ZimParks) have sent letters
opposing this bill [SB 1175
Bill], as well as the Campfire
programme in Zimbabwe and
the Namibian Association of
CBNRM Support Organisa-
tions,” the exclusive SCI law-
yers statement.
“The permanent secretary
of Zimbabwe’s Ministry of
Environment, Climate, Hos-
pitality and Tourism Industry
testified during a public hear-
ing on this bill before the Cali-
fornia Committee on Natural
Resources and Water.”
Koro is a Johannesburg-based
international award-winning envi-
ronmental journalist with 27 years’
experience in environment and
development reporting.
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