Business Reporter

THE African Development Bank has approved the group’s Industrialisation Strategy for Africa 2016-2025 and has mobilised up to $56 billion as part of efforts to scale up Africa’s economic transformation. The strategy signifies a roadmap for implementing priority programmes to increase the industrial revolution of Africa. The strategy was approved on the 14th of this month.The bank will support African countries by championing six flagship programmes namely fostering successful industrial policies, catalysing funding in infrastructure and industrial projects, growing liquid and effective capital markets, promoting and driving enterprise development, promoting strategic partnerships and developing efficient industry clusters.

In a statement, AfDB said the strategy addresses key issues such as why Africa needs to industrialise, what it will take to industrialise Africa and how AfDB will help to industrialise Africa.

“Africa’s industrialisation agenda, one of the bank group’s top priorities for the continent’s economic transformation, received a boost this week with the approval of the bank group’s Industrialisation strategy for Africa 2016-2025.

“In designing the strategy, the bank underscored the vital roles that industrialisation plays in development as it leverages all the value chains of economic activity ranging from raw materials to finished products.

“It catalyses productivity by introducing new equipment and new techniques, increases the capabilities of the workforce, and diffuses these improvements into the wider economy. It generates formal employment, which in turn creates social stability. It improves the balance of trade by creating goods for export and replacing imports,” read the statement.

The group added that the strategy aims to develop industrial sectors and policy framework, enhance trade and integrate Africa into the regional and international value chains and boost competitiveness and value creation by expanding supply of business services to maximise impact on the performance of industries and vice-versa.

“To achieve these goals, the strategy would rely on five enablers which the bank will mainstream into flagship programmes. These are: supportive policy, legislation and institutions; Conducive economic environment and infrastructure; access to capital; Access to markets; and competitive talents, capabilities, and entrepreneurship,” reads the statement.

The bank said it would increase its level of funding and crowding-in third party resources.

“It would also increase its level of funding and crowding-in third party resources to the tune of $35 to $56 billion over the next decade. The Bank will also leverage additional resources through partnership with other DFIs, relevant UN agencies, AUC, RECs, and special purpose vehicles providing seed funds. In addition, substantial amounts will be mobilised through syndication and co-financing in support of phased programs that would be specific to local contexts and in line with the countries’ development goals.

“Industrialise Africa” will build on synergies across the other H5’s — Light up and power Africa, Feed Africa, Integrate Africa, and Improve the quality of life for the people of Africa — by virtue of its cross-cutting agenda.

“Prepared in consultation with the relevant UN organisations such as UNIDO, UNECA as well as internal multi sectoral and external consultations, the African Industrialisation agenda is grounded on the SDGs which recognise that industrialisation is the right path to accelerate growth the Action Plan for Accelerated Industrial Development of Africa (AIDA) Regional Economic Communities (RECs) industrial policies,” AfDB said.

Sub-Saharan Africa remains one of the fastest growing regions in the world, and Africa is one of only two regions globally achieving growth in Foreign Direct Investment (FDI) levels in 2015. This is according to EY’s 2016 Africa attractiveness survey, Staying the course, which has found that in 2015, FDI project numbers increased by 7 percent.EY explains that although the capital value of projects was down year-on-year — from $88,5 billion in 2014 to $71,3 billion in 2015 — this was still higher than the 2010–2014 average of $68 billion.

Similarly, jobs created were down year-on-year, but, again ahead of the average for 2010–2014.

Ajen Sita, Africa Chief Executive Officer at EY, comments, “Over the past year, global markets have experienced unprecedented volatility.

We’ve witnessed the collapse of commodity prices and a number of currencies across Africa, and with reference to the two largest markets, starting with South Africa, we saw GDP growth decline sharply to below one percent and the country averting a credit ratings downgrade; in Nigeria, the slowdown in that economy was impacted further by the decline in the oil price and currency devaluation pressure.”

Sita adds, “The reality is that economic growth across the region is likely to remain slower in coming years than it has been over the past 10 to 15 years, and the main reasons for a relative slowdown are not unique to Africa. In fact, Africa was one of the only two regions in the world in which there was growth in FDI project levels over the past year.”

East Africa closes the FDI gap

According to EY in 2015, East Africa recorded its highest share of FDI across Africa, achieving 26,3 percent of total projects.

Southern Africa remained the largest investment region on the continent, although projects were down 11,6 percent from 2014 levels. The West Africa region saw a rebound in FDI projects by 16,2 percent, and interestingly in 2015, the region became the leading recipient of capital investment on the continent, outpacing Southern Africa.

North Africa experienced 8,5 percent year-on-year growth in FDI projects. Furthermore, while projects are increasing in North Africa, they are increasing at a much faster rate in Sub-Saharan Africa, the report adds.

Michael Lalor, EY’s Africa Business Centre leader, says, “In a context of heightened concerns about economic and political risk across the continent, FDI flows remain robust, and in line with levels we have seen over the past five years. A key factor here is the structural shift in FDI — from a high concentration of source countries and destination markets and sectors, to a far more diverse FDI landscape. As a result, risks and opportunities are being spread much wider, and there is no longer an over-dependence on a limited group of investors or sectors to drive FDI performance.”

According to EY’s data the US retained its position in 2015, as the largest investor in the continent, with 96 investment projects valued at $6,9 billion. During 2015, traditional investors such as the UK and France, as well as the UAE and India, also showed renewed interest in Africa.

“Over the past decade, there has been a shift in sector focus in FDI from extractive to consumer-facing industries. Mining and metals, coal, oil and natural gas, which were previously the key sectors attracting major FDI flows, have given way to consumer products and retail (CPR), financial services and technology, media and telecommunications (TMT), accounting for 44,7 percent of FDI projects in 2015. In 2015, further evidence of sector diversification came through, with business services, automotive, cleantech and life sciences all rising in significance and becoming the likely “next wave” for investors,” the report continues.

Sita concludes, “Given the growth potential in and relative underdevelopment of many African markets, the primary focus for many companies over the past few years has been on entering new markets, capturing market share and driving revenue growth.

A combination of factors — including tightening economic conditions, increasingly well-informed consumers and citizens, intensifying competition, a heightened sense of global geopolitical uncertainty, and shifting priorities from global or regional Headquarters — is now driving a change in focus toward striking a greater balance between growth, profitability and risk management.”

Brexit impact

In a recent blog post regarding the impact of Brexit on economies, John-David Lovelock, Research vice president at Gartner predicted that business discretionary IT investments will probably suffer in the short term, and new, larger and long-term strategic projects are likely to be put on hold.

“Amongst all the uncertainty, corporations have to take certain actions. CIO clients must determine their risk, how they are exposed for data, location . . . and for technology services clients, we say ‘your goal here is to try to throw a little more in the way of certainty into the market’,” said Mr Lovelock. — ITWeb.

Minister Chikwinya

Melody Mashaire : Business Reporter

Government will soon launch a women’s bank that will provide financial support to small and medium enterprises run by women, a Cabinet minister has said. The Ministry of Women’s Affairs, Gender and Community Development in partnership with the International Trade Centre has started collecting data of women business associations and collective enterprises that exist in Zimbabwe with the exercise scheduled to end on August 20.The exercise is being undertaken as part of the European Union trade and private sector development programme assistance being implemented in Zimbabwe.

Minister of Woman Affairs, Gender and Community Development Nyasha Chikwinya said the bank would be opened after the establishment of the database of SMEs operated by women.

“What is even more exiting about this database is we will soon be opening the first women’s bank in Zimbabwe, we will then know who is doing what, not through a project proposal, but through a data base so that we do not have people that will tell us stories that I’m doing this and that .

“This is our fall-back position to identify woman in business and who is going to be assisted with funding.

“We are going to rope in several other partners and the International Trade Centre is going to lead the process,” she said.

She added that women owned and women managed enterprises and associations make a key contribution to Zimbabwe’s economy.

“In order to enable women’s enterprises to grow, become more competitive and fulfil their potential, greater financial and organisational support is needed,” she said.

Minister Chikwinya said the creation of a database is aimed at identifying existing business women’s associations, especially their number, geographic location, sectors they represent, objectives of their associations and key business constrains.

“The Ministry of Women Affairs, Gender and Community Development needs the collaboration of line Government ministries, intermediary organisations and development organisations in availing their valid databases of existing business women associations in Zimbabwe for collaboration into one comprehensive national data base,” she said.

Sanderson Abel

One of the contentious issues in the banking sector is the need for potential bank clients to produce documentary evidence of where they stay or where they do their business. From a banks perspective this information is important as it allows the bank to understand whether the customer has a fixed place of residence or they are just mobile of no fixed abode.In a study undertaken by the Bankers Association of Zimbabwe and Zimbabwe Economic Policy Analysis and Research Unit in 2014, it was established that the majority of the informal sector players (around 73 percent) were operating from designated places while others operated from undesignated places.

For banks, it is very important for them to ascertain the where individuals work from and also have the knowledge where their clients stay.

This information is important for the banks as there are supposed to do due diligent on their clients before they can open accounts for them.

The study revealed that the majority of the clients do not have adequate documentation to prove that there are officially operating at the designated premises or produce their proof of residence.

What is the objective of KYC?

It is important to understand that Banks at law are supposed to follow the know Your Customer (KYC) norms.

The main objectives of these norms is to prevent criminal elements from using the bank channels for money laundering activities and or financing of terrorism related activities.

Apart from checking money laundering, KYC is also important tool for checking frauds that sometimes unscrupulous and criminal elements try to perpetrate both on banks and unsuspecting members of public.

In order to prevent such activities, it has become necessary to know about the true identity of customer, nature of customers business, source of funds etc.

It assists the banks to know and understand the customers and their financial dealings better to monitor their transactions for identification and prevention of suspicious transactions.

Why KYC?

KYC is meant to establish the identity of the client.

This means identifying the customer and verifying his/ her identity by using reliable, independent source documents, data or information.

For individuals, bank will obtain identification data to verify the identity of the customer, his address/ location and also his recent photograph.

This will be done for the joint holders and mandate holders as well.

For non-individuals, bank will obtain identification data to: verify the legal status of the legal person/ entity; verify identity of the authorised signatories and verify identity of the beneficial owners/ controllers of the account.

To ensure that sufficient information is obtained on the nature of employment/ business that the customer does / expects to undertake and the purpose of the account.

Banks with inadequate KYC risk management programme may be subject to significant risks, especially legal and reputational ones.

Sound KYC policies and procedures not only contribute to a bank’s overall safety and soundness, they also protect the integrity of the banking system by reducing the likelihood of banks becoming vehicles for money laundering, terrorist financing and other unlawful activities.

The legal and reputation risks are global in nature and as such, it is essential that each bank develops a global risk management programme supported by policies that incorporate KYC standards.

It is important that the adoption of customer acceptance policy and its implementation should not become too restrictive and must not result in denial of banking services to general public, especially to those, who are financially or socially disadvantaged.

What can be used for tracing clients?

Letter from a recognised public authority or public servant verifying the identity and residence of the customer to the satisfaction of the bank

Telephone bill

Bank account statement

Letter from any recognised public authority

Electricity bill

Letter from employer (subject to satisfaction of the branch

Banks cannot only confine to documents mentioned in indicative list only. If the customer provides any other document, which establishes proof of identity and proof of current address to the satisfaction of the bank, the same may be accepted.

It also important that banks should inform their customers that in the event of change in address due to relocation / any other reason, they should intimate the new address to the bank within reasonable time period of such a change.

Bank clients should note that the information supplied to the bank by its clients at the time of opening the account or any other time, are kept confidential and are not disclosed to any person, except when required under the provisions of the applicable laws and regulations of the country.

Sanderson Abel is an Economist. He writes in his capacity as Senior Economist for the Bankers Association of Zimbabwe. For your valuable feedback and comments related to this article, he can be contacted on abel@baz.org.zw or on numbers 04-744686 and 0772463008

Enacy Mapakame : Business Reporter

CIGARETTE manufacturer British American Tobacco Zimbabwe (BAT) yesterday reported a 53 percent slump in profit after tax to $3,6 million for the half-year ended June 30, 2016 compared to $7,6 million in the prior year on weak consumer demand. Revenue for the period was 23 percent weaker to $16,8 million from $21,7 million recorded in the same period last year.Sales volumes also declined 20 percent from previous year due to a 21 percent reduction in local brands sales volumes as consumers shift demand to more basic goods and services.

However, its global drive brand, Dunhill grew 10 percent compared to same period last year driven by a small but growing consumer base.

BAT acknowledged that the challenging operating environment had a knock on effect on local cigarette sales.

“The trading environment remained

constrained during the period, characterised by weak consumer demand and an accelerated liquidity crunch, driven by the generally weak macro-economic performance,” said BAT chairman Mr Lovemore Manatsa.

Operating profit for the period was 47 percent weaker at $5,1 million while net profit attributable to shareholders fell to $3,6 million from $7 million recorded in the comparable period.

This resulted in a 51 percent reduction in earnings per share to 18 cents from 37 cents.

The group embarked on a staff rationalisation programme which contributed to a 36 percent increase administrative expenses for the period under review.

Cash generated from operations declined 25 percent to $8 million from $10 million achieved in the comparative period

due to a profit decrease offset by improved collections and a decrease on stock holding.

Management at BAT is, however, upbeat that the group will remain profitable, despite the current pressure on earnings due to a tight operating environment.

“We are happy we are still able to report a profit and can still reward our shareholders with a dividend in this economic environment,” said BAT managing director Mrs Clara Mlambo.

“We are positive as board and management, we still command 80 percent of local market share and this works to our advantage,” she said.

Equities analysts have warned 2016 earnings will be reflective of the strained economic performance as both bottom and top lines continue to shrink.

BAT declared an interim dividend of 18 cents a share.

The cigarette maker, which is valued at $252 million, is the second largest company on the local bourse by market capitalisation after beverages giant Delta which is valued at $811 million.

In yesterday’s trading, the stock maintained previous price levels of $12,20.

Business Reporter

THE African Development Bank has approved the group’s Industrialisation Strategy for Africa 2016-2025 and has mobilised up to $56 billion as part of efforts to scale up Africa’s economic transformation. The strategy signifies a roadmap for implementing priority programmes to increase the industrial revolution of Africa. The strategy was approved on the 14th of this month.The bank will support African countries by championing six flagship programmes namely fostering successful industrial policies, catalysing funding in infrastructure and industrial projects, growing liquid and effective capital markets, promoting and driving enterprise development, promoting strategic partnerships and developing efficient industry clusters.

In a statement, AfDB said the strategy addresses key issues such as why Africa needs to industrialise, what it will take to industrialise Africa and how AfDB will help to industrialise Africa.

“Africa’s industrialisation agenda, one of the bank group’s top priorities for the continent’s economic transformation, received a boost this week with the approval of the bank group’s Industrialisation strategy for Africa 2016-2025.

“In designing the strategy, the bank underscored the vital roles that industrialisation plays in development as it leverages all the value chains of economic activity ranging from raw materials to finished products.

“It catalyses productivity by introducing new equipment and new techniques, increases the capabilities of the workforce, and diffuses these improvements into the wider economy. It generates formal employment, which in turn creates social stability. It improves the balance of trade by creating goods for export and replacing imports,” read the statement.

The group added that the strategy aims to develop industrial sectors and policy framework, enhance trade and integrate Africa into the regional and international value chains and boost competitiveness and value creation by expanding supply of business services to maximise impact on the performance of industries and vice-versa.

“To achieve these goals, the strategy would rely on five enablers which the bank will mainstream into flagship programmes. These are: supportive policy, legislation and institutions; Conducive economic environment and infrastructure; access to capital; Access to markets; and competitive talents, capabilities, and entrepreneurship,” reads the statement.

The bank said it would increase its level of funding and crowding-in third party resources.

“It would also increase its level of funding and crowding-in third party resources to the tune of $35 to $56 billion over the next decade. The Bank will also leverage additional resources through partnership with other DFIs, relevant UN agencies, AUC, RECs, and special purpose vehicles providing seed funds. In addition, substantial amounts will be mobilised through syndication and co-financing in support of phased programs that would be specific to local contexts and in line with the countries’ development goals.

“Industrialise Africa” will build on synergies across the other H5’s — Light up and power Africa, Feed Africa, Integrate Africa, and Improve the quality of life for the people of Africa — by virtue of its cross-cutting agenda.

“Prepared in consultation with the relevant UN organisations such as UNIDO, UNECA as well as internal multi sectoral and external consultations, the African Industrialisation agenda is grounded on the SDGs which recognise that industrialisation is the right path to accelerate growth the Action Plan for Accelerated Industrial Development of Africa (AIDA) Regional Economic Communities (RECs) industrial policies,” AfDB said.

Enacy Mapakame : Business Reporter

GOVERNMENT has not done enough to enforce corporate governance in state enterprises, which creates a fertile ground for corruption, a senior official has said. This comes in the wake of numerous expose’ by the auditor general of misappropriation of resources by state enterprises.Speaking at a public sector audit conference yesterday, Secretary for Corporate Governance State Enterprise, and Delivery Unit in the Office of the President and Cabinet, Ambassador Stuart Comberbach said despite assurances by line ministries on imminent action against anomalies and deficiencies in public sector nothing much has been done.

He said Government has not been tough enough to deal with the reported anomalies in the public sectors that have been exposed by the auditor general.

“The bottom line of course is that as a collective, Government is just not doing enough, nor holding accountable those who, by commission or omission, contribute to the serial failings set out in such depressing detail in the auditor general’s reports.

“Year after year, our tireless auditor general is obliged to draw Government’s attention to the same failings, very often the same line Ministry and or by the same state entities which fall under its administrative umbrella,” he said.

Ambassador Comberbach added it may be challenging to achieve sound corporate governance in public sector entities overnight.

However, it is a necessary process that will result in improved performance, sustainable utilisation of resources and better service delivery.

This will also help root out corruption.

“The strict enforcement of corporate governance and financial management related legislation will certainly have a positive effect on performance and service delivery.

“It will strengthen Government’s hand in its determination to more effectively address corruption and abuse of office,” he said.

Last April, Government launched the National Code of Corporate Governance which is being translated into a Public Entities Corporate Governance Bill.

This, together with amends to Public Finance Act, the Audit Office Act, the Banking Act and the Public Procurement Act are all aimed at enforcing greater accountability and transparency.

The inaugural public sector conference seeks to interrogate institutional and professional challenges faced by public sector organisations, management, internal auditors and all employees.

The two-day conference is also expected to come up with practical and applicable solutions to poor corporate governance problem while also recognising public sector entities that have made distinguishable efforts to achieve financial prudence.

Bengaluru. — Coca-Cola Company reported lower-than-expected quarterly revenue due to weakness in China and certain Latin American economies, and the company warned of no improvement in those markets for the rest of the year. Shares of the world’s largest beverage maker, which also cut its full-year organic revenue growth forecast, fell 3,63 percent to a more than three-month low of $43,25 yesterday.Sales in China are being pressured as wholesalers bring down inventory levels in response to weakening consumer environment in the country, chief operating officer James Quincey said on a post-earnings conference call.

China’s economy grew 6,7 percent in the second quarter from a year earlier, the slowest pace since the global financial crisis.

Coke said it was working to combat changing consumer tastes in China, such as the growing demand for premium water and the falling popularity of its juices, by introducing more premium offerings and expanding in second-tier and rural areas with more affordable products.

The company, like several other multinational companies, is also struggling with high levels of inflation in some Latin American economies, including Brazil, Venezuela and Argentina.

Quincey said recent steps taken by Argentina to improve its economy caused a near-term contraction that accelerated in the second quarter, impacting the company’s business there.

Latin America accounted for 9 percent of Coca-Cola’s total revenue in 2015. Coke reduced its forecast for organic revenue growth to 3 percent in 2016 from 4-5 percent growth estimated earlier.

Organic revenue excludes the impact of currency movements, acquisitions and divestitures. Revenue from North America, the company’s largest market, rose 2 percent in the second quarter ended July 1, while revenue fell in all other regions.

The company’s net operating revenue fell 5,1 percent to $11,54 billion, the fifth straight quarter of decline. Coke and rival PepsiCo Inc have been struggling as consumers increasingly turn health-conscious and cut back on fizzy drinks and opt for teas, fruit juices and smoothies.

Coke has responded by building its non-carbonated drinks portfolio, expanding beyond North America and cutting costs by re-franchising its bottling operations.

Net income attributable to shareholders rose 11 percent to $3,45 billion, or 79 cents per share, in the quarter. Excluding items, the company earned 60 cents per share.

Analysts on average had expected earnings of 58 cents per share on revenue of $11,63 billion, according to Thomson Reuters.

Coca-Cola also said yesterday it signed letters of intent with two US bottlers to expand distribution areas in two states. — Reuters.

FRANKFURT. — Lending growth to eurozone companies and households accelerated last month while a broader measure of money circulating rose, data from the European Central Bank (ECB) showed yesterday, indicating that the slow but steady recovery in lending was continuing. Hoping to revive borrowing and spending, the ECB has been easing policy for years, cutting rates deep into negative territory, offering ultra cheap loans and buying assets worth €80bn a month.The cheap cash has been slowly making its way into the real economy, increasing borrowing and investment.

But it has yet to revive consumer price growth, the ECB’s ultimate goal, with inflation hovering either side of zero for more than a year, well short of the bank’s target of close to but below 2 percent.

Lending to companies increased 1,7 percent year on year in June, up from a revised 1,6 percent reading a month earlier.

The readings for household lending were the same, up 1,7 percent, against the previous month’s 1,6 percent.

The ECB said its time series for corporate lending had been revised because of a change in the calculation of net lending and deposits within the various subsidiaries of a single group.

The annual growth rate of the M3 measure of money circulating in the eurozone — often an indicator of future economic activity — picked up to 5 percent from 4,9 percent a month ago, in line with expectations for a 5 percent reading.

Growth in M3, which includes items such as deposits with longer maturities, holdings in money market funds and some debt securities, peaked at 5,4 percent in April 2015 and has flatlined or slightly eased since then.

The ECB cut interest rates and expanded its asset-purchase programme in March to spur lending and inflation but has kept a steady course since, despite low inflation readings. – Reuters.

SINGAPORE. — Oil prices dipped in Asian trading yesterday as plentiful supplies and slowing economic growth weighed on markets, although some analysts said that the current downtrend would be modest and expect a recovery later this year.International Brent crude oil futures were trading at $44,81 at 1.48am GMT, down 6c from their previous close. US West Texas Intermediate (WTI) crude was trading at $42,87, down 5c.

Brent hit $44,14 the previous day, the lowest since May, and the contract has shed more than 15 percent in value since peaking in June as a refined product glut as well as slowing economic growth dent the demand outlook for crude oil.

Analysts said they expected more price declines in the short term as oversupply continued while demand growth stuttered.

“My view is that oil prices will find a low between $39 and $42 a barrel over the coming weeks due to headwinds,” said Ric Spooner, chief market analyst at CMC Markets in Sydney, Australia.

“After that, however, we are coming closer to seeing a balanced market again,” he added, saying that $50-$60 a barrel would represent such a supply and demand balance.

Oil markets have been dogged by oversupply in the past two years, which pulled down prices by as much as 70 percentbetween 2014 and early 2016, when Brent hit a more than a decade low of about $27 a barrel. – Reuters.

Exported products become competitive when they land at lower costs. This can be achieved if goods are exported under a trade agreement. The trade agreement will result in the goods being accorded preferential treatment on entry into the importing country. Preferential treatment means that your products will pay less or no customs duties in the importing country.What trade agreements are there?

Zimbabwe is part to the following trade agreements:

COMESA Trade Protocol for exports to all COMESA member states

SADC Trade Protocol for exports to all SADC member states

Zimbabwe/Malawi trade agreement for exports to Malawi

Zimbabwe/Botswana trade agreement for exports to Botswana

Zimbabwe/Namibia trade agreement for exports to Namibia

Zimbabwe/Mozambique trade agreement for exports to Mozambique

The Generalised System of Preferences for exports to European Union countries

How do you register under a trade agreement?

You approach the nearest Zimbabwe Revenue Authority (ZIMRA) office and obtain information on a particular trade agreement(s) that you want to register under.

Manufacturer or exporter makes an application in writing to ZIMRA to export under the particular trade agreement. The application should be supported by evidence that the goods originate in Zimbabwe.

What type of goods qualify?

The following are some of the goods that may qualify for preferential treatment:

Wholly grown products such as agricultural products

Animals originating in Zimbabwe

Mineral products

Manufactured products meeting set out qualifying criteria, amongst other goods

Can I export goods if I am not the manufacturer of the product?

Yes, you can. You need to be registered with ZIMRA to export the particular manufactured product.

What documents are required by the importing country for the goods to enjoy preferential

treatment?

A certificate of origin duly completed and signed by the manufacturer or exporter and authenticated by ZIMRA.

Maximising on the benefits of trade agreements

You are free to find out which trade agreement gives you maximum benefit for the product you intend to export.

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

Report corrupt activities anonymously by calling:

Toll Free Econet Line 0808 190

Toll Free Telecel Line 0732 880 880

WhatsApp 0772 135 690

E-Mail: zimraanticorruption@gmail.com

Please note that the toll free hotline is managed by an independent service provider.

Melody Mashaire : Business Reporter

Government is working on different strategies including the development of a Rural and Agriculture Financing Policy to tackle challenges faced by tobacco farmers in producing the golden leaf.In a speech read on behalf of the Minister of Agriculture, Mechanisation and Irrigation Development Dr Joseph Made at the graduation of tobacco growers and Agritex officers at Kutsaga Research Station yesterday, permanent secretary in the ministry Mr Ringson Chitsiko said tobacco farmers are still facing a lot of challenges.

“Despite the success of the tobacco sector, the tobacco grower is faced with a myriad of challenges in his attempts to sustainably produce a quality crop that will find market. The question of grower viability is thus a critical issue on the Zimbabwean landscape. The issue of production costs, not only in tobacco remains a thorny one.

“The costs of inputs such as fertiliser, chemicals, water, electricity, and labour is very high.

“Different arms of Government are already looking at different strategies in order to tackle some of these difficulties. For example Government is considering the development of a Rural and Agriculture Financing Policy, the establishment of a revolving fund at affordable interest rates, with assistance of international development financial institutions and is talking to banks to increase their support of agriculture with affordable loans in order to reduce the burden of farming in Zimbabwe,” he said.

He added that factors such as poor infrastructure need to be addressed urgently. “Other factors such as poor infrastructure which increases transportation costs for farmers and the absence of affordable long-term funding for construction of dams and irrigation facilities also militate against grower success and need to be urgently addressed,” Mr Chitsiko said.

He added that tobacco farmers are projected to sell around 185 million kg by the end of the season. It is likely that when tobacco sales close this season we will have witnessed around 185 million kg being sold through both the auction and contrast system.

“This remarkable growth has not come about by chance but is a result of planned and purposeful efforts by Government supported by various players in TIMB and Tobacco Research Board. Through the TIPS programme alone, TRB has been able to interact with close to 45 000 mostly small scale growers. This has enabled our people to become real and vital participants in the economy of the country,” he said.

Chairperson of TRB, Dr Millicent Mombeshora said there is a knowledge gap amongst tobacco growers as they lack training.

“What is evident is that there is a knowledge gap amongst our growers. Many of them have taken up tobacco production without undergoing any training in best practices so as to produce top quality tobacco and obtain the highest possible yield,” she said.

Dr Gift Mugano

Commodity exchange by broader definition is an organised market where future delivery contracts for graded commodities such as grains, cotton, sugar and coffee are bought and sold. Zimbabwe in February 2011 launched the Zimbabwe Commodity Exchange which never saw the light of the day.For Zimbabwe, the need to establish a commodity exchange is inevitable considering the importance in unlocking agricultural finance and market access. Against this background, this week’s discussion focuses on three approaches on institutional structures of commodity exchanges and deduct best practices. There are three approaches which are frequently used. These are producer driven, trader driven and Government driven.

Producer or stakeholder driven

There are two strategies that this exchange approach can use to get volumes and become sustainable.

(i) Organise a significant percentage of producers and get them to sell their produce through the exchange, indirectly “forcing” buyers to use the exchange and promote transparency.

This is generally extremely hard to organise for two reasons:

Firstly,markets are so generally fragmented and very poorly organised, and to reach enough farmers to get a critical mass of produce is a daunting task.

Structures, infrastructure and storage are lacking, making it very hard for most farmers to safely keep their produce; often making selling right after harvest being the only real option. It is predominantly a buyer’s market and this structure is very hard for the producers to untie.

Secondly, many buyers thrive on the lack of transparency that provides considerable margins, generating good money, even on fairly low volumes. They are reluctant to buy through the exchange as it would inevitably erode these big margins; and

(ii) Align with a pull factor, such as a buyer of large quantities(like national food agencies, donor agencies such as World Food Programme (WFP) and large traders/processors).

The pull will support the exchange structures and the exchange; generate the interest needed and bring more parties to participate in an open system.

There is more willingness for the market to open up when large buyers insist on using commodity exchanges. Market participants make strategies and implement structures that add value for all, which is what develops the markets and gives the structures long-term sustainability. It is responsible business.

Trader driven

A trader driven exchange exists on the basis of trade concluded within a group of large traders and, quite naturally, the exchange will seek to service the interests of this group. If this group sees benefits in using the exchange, then it will, as a result, have good volumes traded across the exchange floor.

However, this cannot normally be an ideal model as it exists to serve the interests of a relatively small group of individuals and will not get the necessary buy-in from other potential stakeholders.

Government driven

A good example is the Ethiopian Commodity Exchange (ECX), which is established as a demutualised corporate entity with a clear separation of Ownership, Membership, and Management.

Thus,owners cannot have a trading stake, members cannot have any ownership stake, and the management can be neither drawn from the owners nor from the members. ECX is designed as a public-private partnership enterprise, in a unique institutional innovation for Ethiopia.

The corporate governance of ECX maintains a healthy balance of owner and member interests. There are obvious advantages to an exchange set-up and operated with a large stake and interest from the government, including the volumes of trade conducted across the exchange and the “price discovery that goes with that.

However, there are also some disadvantages, including the question of price discovery as, where you have a single marketing channel, which it is compulsory to use; one has to ask if this constitutes the best price opportunity or not, as the market has not really been tested.

To leave market participants with no freedom of choice really just replaces previous single channel marketing systems with a new one.

Transparency is compromised, true market values are probably not realised by producers and quality issues are likely to arise, as has happened in Ethiopia. Volumes are likely to be high,as there are no alternatives, but neither is there likely to be much incentive to increase production if there is only one market to sell through.

Best practices

There continues to be much debate about commodity exchanges in Africa, not only regarding their need, but also their ability to make a difference in the markets in which they operate.

Whilst this debate continues, a number of initiatives have been started, some of which have been more successful than others.

However, it is crucial to understand the need for certain fundamentals to be existing to enhance the chances of a new commodity exchange succeeding.

These include:

A Clear Objective: The need to know what you want to set up and why. This is necessary for potential participants and for the general view (inside & outside); a business plan (prospectus) is a good way to start; and, for a future exchange, the need to provide a price risk management facility.

Enabling Policy Environments and Good Infrastructure: The building blocks are important. Enabling and consistent legislation must be in place: In agricultural policy; in financial policy; in trade policy; and in legal policy; and, all these need to be complimentary. Infrastructure (storage and transport)is also important.

Market Support (Buy In):The best organization, people, systems, contracts might help, but without market support, it will be difficult to sustain an exchange.

A mutual structure with monetary commitment has helped a number of exchanges. The commitment from the financial sector (banks) is very important. Market support is a function of value-added.

Applicable and Good Trading System: In particular,an efficient and sound clearing system (usually Futures Exchanges) is needed. The trading system must be requirement driven, robust, and flexible and allow for growth in all aspects. The clearing system must be reliable and efficient and ensure confidence in the trading arena.

Clear Rules and Consistent Surveillance: To maintain integrity. Primary role of government is regulating the exchange (where there is the capacity). An exchange requires clear and balanced rules that are consistently applied. It also requires ongoing surveillance. Integrity is paramount and governments should act decisively to ensure it.

The Correct Contracts (Products): The product traded must reflect the reality. It should be developed in consultation and conjunction with the market balance between market initiatives and exchange initiatives.

Constant Education: Education should be a big part of marketing, and it should be ongoing. Education should aim at market participants, potential market participants, media, government officials, and educational institutions.

Committed Staff: Exchange staff should not only be knowledgeable and good, but should also be committed and believe in the benefits of the exchange.

Adaptability and Relevance: An exchange serves the market and must constantly re-evaluate whether it is in touch with reality. An exchange will make mistakes,but it should learn from them and adapt accordingly. However, it should not change for the sake of change!

Value Addition: The basic areas where an exchange can add value is in transparent price discovery,guaranteed settlement and price risk management. If value can be added more efficiently in the absence of an exchange, it will (without an exchange). If an exchange does not add value it will not be sustainable.

Dr Mugano is an Economic Advisor, Author and Expert in Trade and Competitiveness. He is a Research Associate of Nelson Mandela Metropolitan University. Feedback: +263 772 541 209 or gmugano@gmail.com

Minister Bimha

Conrad Mwanawashe : Business Reporter

Government may consider revisiting the Distressed Industries and Marginalised Areas Fund to make it bigger and more accessible to more companies. Informed by the increased capacity at companies that benefited from the $40 million pot, Industry and Commerce Minister Mike Bimha said with recapitalisation companies can make a difference.“We would want to revisit Dimaf in terms of making it bigger and more accessible. I am sure when we do that we have companies accessing more funding and making a difference,” said Minister Bimha.

“The biggest factor to de-industrialisation has been funding in the sense that companies were unable to source finance from financial institutions. Even those financial institutions that had funding, it was short-term money which is not best suited for recapitalization and retooling.

‘‘That short-term funding came with punitive interest rates. But here we have companies that benefited from Dimaf and have improved.”

He was speaking after tour a number of companies in Bulawayo that benefited from some of Government’s measures, both in the form of policy initiatives and funding. The tour of companies marked the start of the Confederation of Zimbabwe Industries annual congress underway in Bulawayo.

The policy measures and capital assistance for retooling released by Government to distressed companies have had a positive impact on industry in Bulawayo with some of the beneficiary companies now in increased production capacity.

And for that industry says it is indebted to Government and will reciprocate by increasing production, the Minister of Industry and Commerce Mike Bimha heard yesterday.

Following a period of de-industrialisation as a result of failure to access affordable finance for retooling and the influx of cheap raw materials, Government implemented a number of policy interventions aimed at capacitating and improving industry competitiveness.

In a bid to help companies industrialise, Government introduced the $40 million Dimaf five years ago, supported by other policy measures which minimised imports of locally available goods.

Among the policy measures hailed by industry is Statutory Instrument 126 of 2014 which imposed restrictions on importation of tubes, pipes, conveyor belts and rubber hoses, among other products.

Also the recently promulgated SI64 of 2016 which removed several basic products, including food and non-food items from the Open General Import Licence, limiting imports to products not readily available locally.

This, industrialists said has helped them increase capacity.

“Without the Dimaf loan we wouldn’t have been able to achieve this last leg. We have also been to South Africa to meet potential partners to bring in some investment into the business,” Refrigeration and Air managing director Clive Paul Oxden-Willows said during a tour of his company. Refrigeration and Airconditioning manufactures cold rooms, panels and accessories.

Mr Oxden-Willow said apart from other challenges industry is facing, the company is able to meet local demand and even to boost its exports.

That was the same sentiment aired by General Beltings general manager Joseph Gunda.

At Mealie Brand, a subsidiary of Zimbabwe Stock Exchange listed Zimplow, Minister Bimha heard that the measures by Government have helped the company to rebound.

Zimplow focuses on agriculture, construction and mining and infrastructure development offering mechanisation solutions within the economic sectors it is involved in.

Although Mealie Brand benefited from Dimaf, the company is facing stiff competition from cheap Chinese and Indian imports of mostly counterfeit products.

Because of the cheap imports, Mealie Brand has not been running the plant and this means that it has made only 7 000 implements in 2016, down from about 31 000 last year. In 2012, Mealie Brand produced about 66 000 implements and this has sharply declined as more cheap imports flow into the country.

Producing a plough locally costs about $58 compared to imports landing at $35, while producing a plough share costs $2,32 compared to imported landing cost of $1,50.

That price differential has seen turnover for Mealie Brand forcing the company to lay off three quarters of its 350 member workforce.

As such, Mealie Brand managing director Walter Chigwada beseeched Government to include ploughs and accessories on SI 64.

“Our major challenge is that we have lost market share due to competition. Our products unfortunately are not on SI 64 yet. If things come right this year, we will be in a position to return to the 300-350 staff complement.

‘‘Not only are the Chinese imports affecting Mealie Brand in terms of pricing and production but are also infringing on the company’s patent rights.

“They just came and copied our designs. They have been violating our patent rights by bringing the same products into our market. We are spending a lot of money per year in protecting our brand and to do raids in certain markets. Both exports and local sales have gone down.

‘‘The impact on ploughs alone, which gives about 70 percent of our turnover, we did about 57 000 in 2012 but in 2015 we did about half that. By this time of the year we should have done about 26 000 by this time of the year,” said Mr Chigwada.

Business Reporter

ZIMBABWE imported $2,51 billion worth of goods between January and June this year, representing a 13,3 percent decline on 2015. The decline in the value of imports comes after Government recently introduced legislation to restrict the importation of certain products. Latest trade statistics show that Zimbabwe imported a total of $2,51 billion worth of goods in the first half of the year compared to $2,95 billion imported last year.The value of exports over the same period also declined in the first half of this year to $1,126 billion from the $1,233 billion the prior year.

Trade balance, the statistics show, stood at a negative $1,403 billion in the half year against a negative $1,684 billion in the same period last year.

The country imported goods worth about $6 billion last year while it exported only $3,5 million, leaving it with an unsustainable negative trade balance.

Zimbabwe relies on imported products for the bulk of goods consumed in the country at a time local industrial capacity is at low ebb.

The domestic industry is finding it difficult to raise production or where production is happening, to compete with cheaper foreign products.

This is because the equipment and machinery used by local firms and manufacturing industry is either too old or outdated, making them highly inefficient, resulting in high cost of production or product prices.

According to the Confederation of Zimbabwe Industries 2015 manufacturing survey report, average capacity utilisation is at a lowly 34 percent.

The production challenges being faced by industry, compounded by high cost of and unreliable supply of electricity, high cost of labour, utilities and a litany of statutory payments has resulted in an influx of imports.

It is against this background that Government came up with Statutory Instrument 64 of 2016, only last month, to curb the imports.

This is meant to temporarily give the domestic manufacturers time and space to invest in new technology and machinery to improve efficiencies in order to be able to compete with the low priced imports.

Goods that have been removed from the Open General Import Licence and now require a permit to be brought into the country are coffee creamers, camphor creams, white petroleum jellies and body creams.

The list also includes furniture, baked beans, potato crisps, cereals, bottled water, mayonnaise, salad cream, peanut butter, jams, maheu, canned fruits and vegetables, pizza base, yoghurts, flavoured milks, dairy juice blends, ice-creams, cultured milk and cheese.

Also making the list are goods categorised as builders’ ware like wheelbarrows (flat pan and concrete pan wheelbarrows), structures and parts of structures of iron or steel (bridges and bridges sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors, windows and their frames and threshold for doors, shutters, balustrade, pillars and columns) and plates, rods, angles, shapes sections and tubes prepared for use in structures of iron and steel ware, were also on the list of the restricted products.

Higher and Tertiary Education, Science and Technology Minister Professor Jonathan Moyo (left), Finance and Economic Development Minister Patrick Chinamasa (middle) and Information, Communication Technology, Postal and Courier Services Minister Supa Mandiwanzira follow proceedings during the launch of Brainworks Capital’s newly branded mobile payment platform, GetCash on Tuesday

Business Reporter

INVESTMENT holding group, Brainworks Capital, unveiled its enhanced and rebranded integrated mobile payment platform, GetCash, at colourful ceremony on Tuesday, declaring the platform will revolutionalise the payment system.Group chief executive, George Manyere said, while there has been a litany of payment options in the market, the country still lacked a system that could aggregate these and offer real convenience at a very affordable cost to users.

Payment solutions that existed prior to launch of GetCash, Mr Manyere said were isolated and fell short of combined functionalities that guaranteed economies of scale and at the same time stimulate economic activity and growth in Zimbabwe.

As such, he said they had looked at options that would bring about benefits to mobile networks, merchants and banks, in providing their range of products or services to customers. Transacting on GetCash will not attract any costs.

“So in the last couple of months, we started to challenge ourselves actively to say how can we come up with something that can bring all these initiatives or services under one roof for the convenience of consumers in a manner that will significantly impact our economy,” Mr Manyere said.

The highly convenient mobile-based payment system, rebranded from NetCash, will operate across all mobile phone networks and is already connected to all local banks.

Certainly, GetCash will pose unrivalled completion to Econet’s EcoCash, Telecel’s TeleCash and NetOne’s One Wallet.

GetCash launch was attended by several high profile guests, including three Cabinet Ministers (Patrick Chinamasa, Jonathan Moyo, Supa Mandiwanzira) and several bank and non-bank chief executives of local companies.

The platform enables users to pay bills for utilities, pay school fees, pay TelOne, buy airtime, pay merchants, pay for toll gate fees and access bank accounts, among other critical uses.

Finance Minister Patrick Chinamasa, who attended the launch on Tuesday, urged banks to embrace the mobile payment system and flow with it rather than regard it as competition. He warned banks to take a reality check of their position.

Finance and Economic Development Minister Patrick Chinamasa said that since Government has built a sound financial system to drive the potential for economic growth, there is now need to shift focus to another critical phase of development, which is financial inclusion.

“The last FinScope survey showed 23 percent of Zimbabwe’s adult population was financially excluded. Only 30 percent made use of banking services while only 14 percent of MSME owners were banked, 43 percent did not use financial products or services and only 1 percent of the adult population has access to capital,” the minister said.

This is despite the fact that Zimbabwe has high literacy rates, the finance minister said, adding that “empirical evidence, meanwhile, indicates that across the world, financial exclusion is one of the biggest barriers to development.”

Information Communication Technology, Postal and Courier Services Minister Supa Mandiwanzira said GetCash is an ICT driven payment system at the heart of his ministry’s mandate, which is in line with objectives of Zim-Asset.

“As you are well aware, under Zim-Asset, the objective is to expand the accessibility and utilisation of ICTs, to improve service delivery and accelerate economic growth,” he said.

He said ICT development is integral to rehabilitation of infrastructural assets and recovery of utility services in Zimbabwe and is one of key drivers for growth and employment creation in Zimbabwe as well as the acceleration of development through value addition processes.

He applauded Brainworks’ mobile payment platform saying it will play an important role in easing the cash crisis and also promote Government’s thrust on financial inclusion.

Higher and Tertiary Education, Science and Technology Minister Jonathan Moyo hailed the GetCash initiative, as an innovation that will bring convenience to users, create jobs, generate revenue for fiscus and improve livelihoods of people.

“The launch of GetCash product is a shining example of the success that can be achieved as a country when business, policy and academia collaborate to produce a systems solution that enables the ease of doing business,” he said.

“It is notable and gratifying that the cohort of the team behind the GetCash solution whose launch we are witnessing is made up of stemitised, young Zimbabweans software engineers from UZ, MSU and HIT,” the minister added.

Minister Moyo said this is evidence Zimbabwe’s institutions of higher learning are developing and training some of the best software engineers in the world.

“The innovation presents a new and viable technological solution which is as good as if not better than cash in an environment under the vagaries of cash shortages.”

Tinashe Makichi in LIVINGSTONE, Zambia

Common Market for Eastern and Southern Africa Competition Commission chief executive George Lipimile said recently introduced import restrictions in Zimbabwe under Statutory Instrument 64 of 2016 have no effect on the common market. Government recently introduced import controls on selected products including Nestle’s cremora, maheu and baked beans on a bid to provide space for local industry to retool and increase capacity utilisation.“I have heard that the Zimbabwean Government recently introduced import restrictions. I strongly believe that the move is more to do with trade and it is an internal issue that will not have a direct effect on competition in the Common Market.

“Competition laws are there to promote and protect the process of trade. They are not meant to punish large companies on account of their size or commercial success,” said Mr Lipimile.

Article 55 of the Treaty establishing the Common Market for Eastern and Southern Africa sets out the foundation for the development of competition policy in the Common Market.

Article 55(1) specifically requires member states to prescribe conduct that has the effect of negating free and liberalised trade within the Common Market, which is the principal objective of the regional competition policy.

To realise this objective, the COMESA Treaty provides in Article 55(3) that the “Council shall make regulations to regulate competition within the Member States”.

In compliance with this Article, COMESA has adopted a regional competition policy through the publication of the COMESA Competition Regulations which are supplemented by the COMESA Competition Rules.

“With the increasingly transnational character of competition cases, a holistic regional competition regime is essential to overcome the enforcement gap of the traditionally territorial scope of national competition laws.

“National authorities are increasingly being called upon to protect consumers from anti-competitive conduct originating outside their jurisdiction. Consumers on the market are a largely unorganised group, with little bargaining power, poor knowledge of their rights and the avenues for enforcing these rights are even more challenging in the context of an open market economy,” said Mr Lipimile.

In this context, the necessity for effective regional competition policy and more importantly, regional cooperation on competition policy, cannot therefore be wished away.

Mr Lipimile commenting on the notion that competition authorities are the stumbling block on business transactions, said competition authorities have a role to play in facilitating business transactions rather than frustrating them.

He said before a business transaction is approved the Commission undergoes a massive consultative programme to ascertain the intricate details of any transaction.

“Competition authorities are not there to injure business transactions but it is our duty to make sure business transactions sail through in a competitive manner. Remember the COMESA is also working together with member States in trying to improve investment levels in the economic bloc.

“Governments have been the biggest drivers of uncompetitive business environments across the region .Rather they are the ones who are at the forefront of stifling competition ,said Mr Lipimile.

“Competition has been stifled by Governments mostly due to imposition of bans on certain products, excessive licences required to start a business and the amounts required for someone to start a business.”

LONDON — Oil prices fell to three-month lows yesterday as producers continued to pump more than needed, filling inventories, and economic growth prospects darkened. Brent crude oil was down 50 cents at $42,97 a barrel by 10.10am, after touching $42,88, its lowest since April 20. US light crude was down 20 cents at $41,72.US government data on Wednesday revealed a surprise rise in crude and gasoline inventories. The build added to an already huge global refined product glut, just as slowing economic growth dents the demand outlook.

“US commercial stocks are a good reflection of the oversupplied nature of the global oil market,” said analyst at London brokerage PVM Oil Associates Tamás Varga.

Oil markets have been dogged by oversupply for the last two years and fell by as much as 70 percent between 2014 and early 2016, when Brent hit the lowest in more than a decade at around $27 per barrel.

Markets have since recovered some ground but oil remains very weak and low refining margins are hurting energy companies.

Energy major Royal Dutch Shell reported a more than 70 percent fall in quarterly profit on Thursday, well below analysts’ estimates, as weak oil and gas prices further ate into revenue.

Shell’s net income came in at $1bn in the second quarter, compared with expectations of $2,2bn and $3,8bn achieved in the same period last year.

“Lower oil prices continue to be a significant challenge across the business, particularly in the upstream (operations),” said chief executive Ben van Beurden.

Mihir Kapadia, CEO at wealth management firm Sun Global Investments, said oil was still being depressed by concerns over a supply glut and waning demand from key international markets.

In China, rail freight volume fell 7,5 percent in the first half of 2016 from the same period a year earlier to 1,58-billion tonnes, the country’s top economic planner said on Thursday.

PVM’s Varga said record-high stocks and oversupply could drive crude prices down into the mid $30 per barrel area before a significant rally.

“The trend is still down and the bears seem to be in control,” Varga said, “but we could see an upside correction before driving lower again.”-Reuters

The Zimbabwe National Water Authority strives to be a customer centric organisation and will endeavour to give its clients the best services in its bid to ensure guaranteed water security for all citizens. The Authority believes and appreciates that clients are the very fuel that drives any organisation hence the need to give them the best customer experience that is second to none.To that end ZINWA commits itself to the fulfilment of its client service charter which puts the client at the centre of the organisation’s operations and drive.

Service commitments and

standards

In terms of our client service charter ZINWA commits itself to the following standards:

All clients who call at its offices, banking halls and any other ZINWA premises will be attended to within 10 minutes of arrival

Our staff will clearly identify themselves and treat clients with courtesy and respect

ZINWA will be fair and reasonable at all times

Resolution of complaints/ queries and decisions communicated within 14 days from date of receipt of the letter of complaint

Acknowledgement of all mail correspondence within three days of receipt

Reacting to water supply breakdowns within 48 hours of notification

Our obligations to clients

In the execution of mandate, ZINWA:

Is accountable to the nation for equitable water distribution

Shall conduct its business in accordance with the laws of Zimbabwe

Does not tolerate corruption, favouritism and discrimination

Welcomes feedback which is highly valued because it is used as an indicator of our performance against our service standards

Shall carry out duties professionally, diligently and courteously

Clients have the right to speak to the next senior staff member or head of section they are dealing with

Is committed to providing proactive client information which includes making relevant information available to clients, orally, in print/ electronic media by means of pamphlets, posters and other relevant materials

Client obligations

For clients to receive cutting edge service, ZINWA expects clients:

To pay their bills when they fall due

To use water in a sustainable manner

To have the relevant documents pertaining to water use and to make payments due within the required time

To be open and honest in providing any additional information that may be requested as this helps to ensure they get quality service

To be honest and cooperative in all business dealings with ZINWA

To refrain from any corrupt tendencies in all dealings with ZINWA staff. It is in the clients’ best interest to report corrupt activities by staff and any member of the public

To treat ZINWA staff with courtesy and respect

To ensure that all written communication, i.e. complaints and applications are accompanied by the relevant documentation and evidence

To give ZINWA details of changes in the status of their accounts as soon as they occur.

These minimum standards should always guide the interaction between clients and ZINWA.

Clients should always strive to give us feedback on their service experience and help us improve our service to them.

Feedback can also be given through our Call Centre numbers (04) 850 261, 850 066 and 008677004339

POS Machines

In our quest to improve convenience to the clients, ZINWA has installed Point of Sale Machines at its Catchment Offices countrywide while the roll out programme is underway for the instalment of the machines at all major water supply stations.

For more information you can contact the Zinwa Corporate Communications and Marketing Department on pr@zinwa.co.zw or visit www.zinwa.co.zw. You can also like the Zimbabwe National Water Authority Facebook Page or follow us on our Twitter handle @zinwawater.

Conrad Mwanawashe in BULAWAYO

Government is cleaning the Ziscosteel balance sheet to make the faded iron and steel giant attractive to interested investors. Officially opening the Confederation of Zimbabwe Industries 2016 annual congress on Wednesday, Industry and Commerce Minister Mike Bimha said Ziscosteel’s revival strategy involves expanding the iron and steel sector so that it can contribute significantly to economic development.“The Ministry of Finance and Economic Development is currently in the process of cleaning the balance sheet of Ziscosteel so that any potential investor can take over without carrying the burden of the old company.

‘‘We want to resuscitate Zisco,” said Minister Bimha.

A number of potential investors are currently angling for Zisco following the collapse of the short-lived marriage with Indian based Essar Holdings.

“We are engaging a number of aspiring investors to resuscitate Zisco and to explore other iron and steel initiatives,” he said without disclosing the identities of the investors.

We should look at an expanded iron and steel sector because we want to venture into other products Zisco was not able to produce. He said the bickering between ministries during the four-year inclusive Government had a negative impact on the Essar deal and that mistake should not be repeated going forward as Zisco is central to economic development.

“One of the lessons from the Zisco fiasco is that we should never go into an inclusive government because we spent time bickering while the investor was waiting for us to conclude the deal.

“By the time we wanted the investor to move in, the investor had spent his money elsewhere. Commodity prices also had gone down,” said Minister Bimha.

The CZI congress, which is running until tomorrow, is running under the theme “Strengthening Value Chains for Sustainable Industrialisation and Economic Development”.

Minister Bimha said globally value chains have been applied as developmental tools for economic growth.

“The importance placed on the need for the development of value chains regionally and globally calls for Zimbabweans to up their game and move with the rest of the world. At this point in time, I fervently call upon players in the private sector to domesticate the global and regional industralisation strategies through taking ownership and leading the implementation processes of these strategies,” said Minister Bimha.

CZI president Busisa Moyo said the business representative body earlier this year identified 18 value chains and will be continuing to expand the list as a guide to research based on players who are operating in low-scale output or broken value chains.

The CZI chief however said the Zimbabwe economy is at a crossroads.

“We have seen a dramatic collapse in both business and consumer confidence over the past few months. Among other things based on formal and informal responses we are seeing delays in foreign payments, reduced consumer spending due to cash shortages, the perceived or actual imbalance between Real Time Gross Settlement Account vs the underlying inventory of Dollars and Nostro balances backing the account, the subsequent panic withdrawals, dissaving and combative mode adopted by the general public,” said Mr Moyo.