The National Social Security Authority (NSSA) has split its investment policy into three strategic areas to ensure that future investments provide significant returns, a senior company official has said.

The authority has widely been criticized for repeatedly failing to put contributors’ funds to good use by making sound investment decisions, instead pouring millions of dollars into a spate of bad investments over the years.

NSSA board chairman Robin Vela said NSSA’s investment policy would be split into three strategic areas, namely; property, money market and strategic assets.

“We have started to look at our investment policy, but the real detailed work requires the presence of the executive which we now have in place,” he said following the appointment of a substantive management team for the authority.

“We have actually scheduled to take a strategic time out as a management team and a board in the next month or so where we will try to dissect all operations of NSSA not just the investment policy. So we are to dissect and re-look all aspects to ensure that at the end of the day the service delivery that we give to our pensioners and our contributors is what is paramount.” Mr Vela said NSSA was going to sweat out some strategic assets such as the National Building Society to ensure that it delivers significant investment income return per annum.

“We are also going to lean on them (strategic assets) in terms of what we should be doing better in terms of delivering on our mandate,” he said.

NSSA is one of the economy’s biggest institutional investors and is a major player on the Zimbabwe Stock Exchange.

Last month, the authority reported a major net profit slump to $32,3 million for the full year ended December 2015 from $104 million in 2014 on the back of revaluation losses.

In the period NSSA saw its income decline to $331,2 million from $335,2 million the previous year as collections fell while investment earnings also dropped to $22,8 million from $35 million. – New Ziana.

The US dollar is overvalued by 12 percent in Zimbabwe according to the KFC index.

Market intelligence firm Sagaci Research recently published a quarterly update of its “KFC Index”. By analysing the prices of the Original Chicken Bucket from fast-food chain KFC, the index provides insight into African currency valuations and consumer purchasing ability relative to the US, and selected European countries. KFC has a presence in 18 African countries.

The second quarter of 2016 saw average costs of the Original Chicken Bucket vary greatly from country to country, indicating a disparity in real versus implied currency exchange rates.

The highest prices in comparison to US-based prices are found in Angola, Zimbabwe and Morocco, whose currencies are estimated to be overvalued by +28 percent, +12 percent and +6 percent, respectively, a decrease from +72 percent in Angola in the first quarter of 2016.

On the other hand, the lowest prices are found in the southern African countries of Lesotho and South Africa, whose currencies are both undervalued by 55 percent.

According to Sagaci, a 15-piece chicken bucket costs $31,90 in Angola, $26,44 in Zimbabwe while in South Africa it will set you back $11,30.

The index further reveals that the Nigerian naira has moved from being overvalued by +8 percent in the first quarter to being undervalued by -27 percent in the second quarter, with its currency devaluating by 42 percent over the same period. The Mozambican metical suffered a decrease of its value, plunging to -38 percent in the second quarter, as opposed to an overvaluation of 4 percent in the first quarter.

Moreover, the report shows that in the past three months, currencies have further depreciated on the black market in Egypt and Angola by 33 percent and 32 percent, respectively, creating an index of -64 percent for Angola compared to a +28 percent using official rates.

The KFC Index is a strong fact-based indicator of the financial turmoil affecting African countries, whether driven by rapidly decreasing global oil prices or other factors. — Wires.

According to the new 99-year lease document, farmers would now be able to use the land tenure titles to obtain loans from banks to finance their activities

CORPORATE bodies other than statutory bodies, churches and educational institutions will be able to hold the Government’s 99-year lease albeit with conditions attached to it while farmers will be subjected to annual rent and to purchase improvements on the leasehold.

According to a draft 99-year lease document which will soon be presented before Cabinet, Government will give out leases to Zimbabwe Stock Exchange listed companies; companies licensed under section 26 of the Companies Act; and private companies whose controlling interest is held by Zimbabweans and those

who do not have shareholders which hold an offer letter or a lease in his or her own right or a controlling interest in the private

company.

The draft also says the land subject of the leasehold consists predominantly (not less than 50 percent of the arable land) of plantation or forest land or land subject to intensive agribusiness.

Recently, Lands and and Rural Resettlement minister Dr Doug Mombeshora said once the relevant processes are completed, farmers would now be able to use the land tenure titles to obtain loans from banks to finance their activities.

The re-drafted document was done in consultation with the Ministry of Finance and Economic Development, Ministry of Agriculture, Mechanisation and Irrigation Development and the Bankers’ Association of Zimbabwe.

Government will also require interested farmers to submit a development plan covering a period of at least five years as a condition for signing the lease.

Farmers will be required to initiate minimum developments on the leasehold such as development of a permanent homestead and water supply adequate for the primary human and animal needs of the leasehold, within the boundaries of the leasehold; provision of access roads suitably sited, constructed and protected against erosion as approved by the Designated Officer; erection of adequate decent employees’ accommodation with access to water and sanitation facilities for workers employed on the leasehold; in the case of a leasehold which is to be developed primarily for cropping purposes, clearance and protection not less than 30 percent of the assessed arable hectarage per year; in the case of a leasehold which is or is to be developed as forest land or as a plantation, clearance and protection not less than 50 percent of the arable or exploitable land for the purposes of forestry or for plantation purposes, as the case may be.

The draft lease allows farmers to sublet infrastructure such as agro-processing infrastructure, dip tanks and tobacco barns but they may not cede, assign, hypothecate or otherwise alienate or sublet in whole or in part, or donate or dispose of his or her lease or any of his or her rights, interests or obligations under this lease, or place any other person in possession of the leasehold; or enter into a partnership for the working of the leasehold.

It also wants farmers to make one-time payments for capital improvements such as dams, barns, roads and buildings

Government will give at least six months’ notice if it wants to retake the land for public purposes.

According to a Zim-Asset progress report on security of tenure under the Food and Nutrition cluster, three 99-year leases have been issued already. — Wires.

Ndubuisi Ekekwe

The old banking order is failing in Africa and central banks are losing their powers with all the disintermediation. Africa has to innovate — for example by building new credit models — to expand their businesses and make them more appealing Across Africa, banking is being redesigned. Technology has emerged as a competitive weapon in driving operational excellence and superior service quality. While the banks compete among themselves, they face existential threats from amalgam of entities, not necessarily possessing bank licenses.

For example, from telecommunication companies to fintech entrepreneurs, African banking fees and commissions are under tremendous presure. M-PESA offers services that are dislocating the banking architecture of Kenya, and not even global banking giants have been spared. Nigeria’s Interswitch, a fintech, has been rumored to have a valuation of $1 billion, easily eclipsing most banks in the country. Through Paypal, Nigerians spent $610 million via their mobile phones on international shopping in 2015, depriving local banks forex fees. California-based Stripe has unveiled a solution to enable online entrepreneurs to run U.S. companies and bank accounts while living outside U.S., and African entrepreneurs are excited.

As most African economies continue to shrink due to commodities bust, the reliable public funds which provide the core deposit base for banks are disappearing.

To mitigate the lost revenue, banks are redoubling efforts in retail and corporate banking. But banks cannot control the rules of engagement as they have in the past, since customers now have more choices and are more fragmented, and disintermediation by fintech is making it harder to earn fees.

Legacy infrastructures, like banking branches, are doing lesser activities and continue to depress margins because customers have moved to new channels.

Indeed, the challenges ahead of African banks are enormous. To remain relevant, the banks must internally mutate, disrupting themselves to participate in modern banking. From my practice working with bank clients in the continent, here are a few suggestions to make that happen:

Restructure staff

Nothing has changed in most African banks in terms of structure, despite the avalanche of transformations in the market. Most still put marketing managers in nice cars to look for clients. While that is still relevant, the emerging digital economy has provided new channels to reach customers at better cost models. Banks need to close branches, cut manpower, and transition some employees into digital banking.

Within a decade, 80 percent of staff should be able to automate activities like customer onboarding, sales, support, and investment management. Because banking has since become a technology business, the future is for entities that offer top-grade personalised banking services to customers, largely driven by low-cost automation.

Increasingly, executing that capability will be dependent on a new species of talent with deep technical skills to integrate local realities into products.

Besides, it is not always necessary for banks to sell their products with bankers; they can move some staff to wholly-owned new technology marketing ventures, repackage the products, and present them to the public with the vibes of dynamic technology start-ups. Such realignments could be catalytic in fending up the challenges from fintech competitors.

Data consolidation

In countries where governments rarely know their citizens because there are few trusted identification systems, most African banks built their businesses on top of shaky data infrastructures. As competition heats up and provision of personalized services becomes critical, banks need to consolidate disparate data sets scattered over decades of their operations.

Most banks still require their customers to have multiple accounts to access different products in their channels — different accounts for mortgages, loans, savings, and more.

Consolidating these products under one database with one account access will improve customer experience. Banks should also require customers to update their records using citizen identification numbers (where available) and email addresses and phone numbers (which did not exist in the past), in order to link services they provide them more effectively.

Elevate digital banking

While the revenue from digital banking may not be dominant at the moment, it is growing faster than branch channels. Banks must realize that this is the future of banking and the habit of seeing digital banking as a channel for young people must evolve.

In most banks, inexperienced young managers are asked to handle digital products. Time has come to put digital business under the care of senior executives who have the capacities to influence strategic decisions which will help the bank disrupt and transform internally. A director that reports directly to the CEO will be optimal.

Innovate ferociously

The old banking order is failing in Africa and central banks are losing their powers with all the disintermediation. Africa has to innovate — for example by building new credit models — to expand their businesses and make them more appealing.

The excuse is that credit system cannot work until African economies have identification architectures and the FICO-like model is a testament that African banks have not invested in local research to find alternatives based on local circumstances and possibilities.

Banks should also explore partnerships and collaborations with outside organisations, as the rate of disruption is huge for a sequestered entity to overcome.

Banks need to build capabilities in automation and analytics to ensure it can compete as algorithmic banking evolves. Building the AI models for the African consumer cannot be optimally driven by Silicon Valley vendors; rather, African universities and research institutes who understand the nuances of being an African are better positioned for this task.

This is critical because a future where blockchain usurps central banks by eliminating clearing houses and citizens do business locally but bank offshore, only innovation will guarantee survival.

Think about local needs

What works in US may not work in Africa, so getting inspiration from around the globe can lead to misses. In the West, 30 percent of payments come from mobile devices; in Africa, it is 60 percent. They talk of mobile-first; in Africa, it is largely mobile-only in electronic commerce.

Thinking local is strategic to appropriately examine competing business models. A typical African builds a house paying cash with no access to mortgage. Education loan is practically not in existence.

Most economies in Africa have no companies that offer agriculture insurance to farmers. By considering the local environments, it will become evident that what is working for Wall Street banks may not be relevant locally, and African banks must adapt accordingly.

African banks, unlike their international counterparts, are more susceptible to disruptions largely because the newer alternatives are always preferable, owing to infrastructural challenges. Anyone will prefer internet banking to avoid dreaded Nairobi traffic, just as millions of Africans leapfrogged owing computers to buying smartphones.

There is no requirement that unbanked Africans will first get bank accounts before adopting digital wallets as ecosystems converge making it possible for people to buy and sell without a bank. African banks must reinvent themselves to be part of the new banking sector.

Ndubuisi Ekekwe is a founder of the non-profit African Institution of Technology and Chairman of Fasmicro Group with interests in technology, finance, and real estate.

Business Reporter

The Common Markets for Eastern and Southern Africa Competition Commission said the year 2015 saw a record $3,8 trillion investment on mergers and acquisitions being approved. The Commission is the body responsible for enforcing merger control in the Common Market. The framework for merger control is provided under Part 4 of the Comesa Competition Regulations.Commission manager for mergers and acquisitions Willard Mwemba said mergers and acquisitions have become an essential tool for corporate growth in today’s global marketplace.

“This characterized by increasing foreign competition, new technologies, and interdependence of markets. The Regulations usually only apply where there is a cross border impact,” said Mr Mwemba.

He said consumer companies, such as pharmaceuticals and food and beverages commanded the biggest share of the spending at $1 trillion featuring mega deals such as Anheuser-Busch InBev SA’s acquisition of SABMiller Plc for about $107 billion.

Mr Mwemba said financial deals accounted for $751 billion, followed by $447 billion for purchases of industrial companies, including Warren Buffett’s Berkshire Hathaway Inc agreeing to pay more than $30 billion to acquire Precision Castparts Corp.

“The coming together of two firms is without question a significant event on the industrial landscape and the potential resulting restraint on competition has made mergers and acquisitions a key focus of antitrust scrutiny

“Most mergers are fundamentally good for consumers and for the economy as whole – potential benefits include, economies of scale by the acquisition of additional production capacity, expanded or more efficient use of existing facilities by the acquisition of new skills or technologies, costs savings through efficiencies translating into lower prices for consumers or extension of products into new markets,” said Mr Mwemba.

“However, there are instances where firms may seek to acquire their competitors to eliminate competition in the market and obtain market power. To prevent such anticompetitive mergers, most competition authorities have some form of merger review mechanism,” he said.

Mr Mwemba added that a number of high-profile merger transactions were abandoned in 2015-2016 due to Governmental review and antitrust intervention including Comcast’s $67 billion purchase of Time Warner Cable and Halliburton’s $35 billion acquisition of Baker Hughes.

He said the Halliburton/Baker Hughes merger would have involved the second and third largest companies in the oilfield services industry.

Mr Mwemba said parties failed to reach a settlement with the United States Department of Justice in identifying remedies to restore the competition lost with the elimination of Baker Hughes as a standalone company and protect consumers from anti-competitive harm.

Electrolux’s $3,3 billion purchase of General Electric’s appliance business was also turned down.

Mr Mwemba said in July 2015, the US Department of Justice challenged the proposed transactions on the grounds that the merger would substantially lessen competition.

The US Government was primarily concerned with allowing two of the leaders in cooktops and wall ovens to combine creating a duopoly between Electrolux and Whirlpool in that specific market.

The government argued that the industry was already highly concentrated and due to Electrolux’s and General Electric’s individual market power, if they were to merge the new merged company and Whirlpool would control just short of 90 percent major cooking appliance market, causing it to become even more concentrated.

“The successful enforcement of competition laws relies on an appreciation and understanding by consumers, customers, businesses, and governments of the benefits that competitive markets bring. Advocacy is a critical part of the work of competition authorities, particularly for younger agencies,” said Mr Mwemba.

Minister Nyoni

Reason Razao : Business Reporter

The Zimbabwe Chamber of Small and Medium Enterprises (ZCSME) last week launched a Biometric Database in efforts to formalise their industry at Rainbow Towers in Harare. Biometric Database is a unique system which identifies individuals and companies using different identifiers such as name, signature, fingerprint and geographical location.It is aimed at effective identification and management of Small and Medium Enterprises (SME’s).

Minister of Small and Medium Enterprises and Cooperative Development Sithembiso Nyoni applauded the ZCSME for coming up with its own database for Micro, Small and Medium Enterprises (MSME’s).

“This database will not only assist the Chamber but also police makers, researchers in academia in understanding the nature, size and scope of MSMEs in Zimbabwe,” she said.

She also said that the database will assist in giving an idea of the contribution of MSMEs to economic growth.

“My Ministry also established a database in 2012 and so far 10 000 MSMEs has been captured. Through we anticipated to have made more progress data capturing has been slow due to inadequate resources, finance, hardware and software challenges as well as the lack of incentives for MSEMs to register in the database,” said Min Nyoni.

She, however, said that the problem will soon be alleviated as the Africa Development Bank availed a three year grant to the Ministry of SMEs to upgrade the database software and installation of a Wide Area Network in all 72 districts which is expected to be operational by the end of this year.

In 2012 the Ministry of SMEs along with the World Bank did a survey which showed that 85 percent of the MSMEs are informal and that almost $7, 4 billion was circulating in this sector.

The report also revealed that there are 2,8 million business owners employing 2,9 million people and giving a total of 5,7 million people.

Minister Nyoni added that the formalisation of the informal sector should be given paramount attention by the government so that all the activities are accounted for in the National Systems and fiscus.

“In an effort to promote formalisation of the informal sector, my Ministry is in the process of coming up with a Formalisation Strategy which will promote their (MSMEs) participation in the mainstream economy.

“This database will also encourage the formalisation initiative by Government and at the same time assist in the graduation of MSMEs from micro to small, small to medium and ultimately, from medium to large enterprises,” said Minister Nyoni.

The Biometric database when fully functional will result in targeted support schemes which will facilitate in development, growth and graduation of MSMEs.

ZIMBABWE’s concessionary borrowing has declined to below 10 percent as compared to the period 2006-2009 where concessionary debt levels were 30 percent of total country’s external debt. Speaking at the launch of the United Nations Conference Trade and Development Economic Development in Africa Report 2016, Debt Dynamics and Development Finance in Africa, Africa Capacity Building foundation (ACBF) director Thomas Munthali said Zimbabwe is among the nine countries on the continent who are in serious debt distress.“Before 2006 – 2009, over 30 percent of Zimbabwe’s external debt was concessionary, but as of now cheap debt has become lesser and will aid debt distress for low income countries,” he said.

Concessionary debt refers to lending extended by creditors at terms below market terms with the aim of achieving a certain goal and with Zimbabwe’s current external debt amounting to over $9 billion, the country is not in a position to attract funding at favourable terms. The country’s debt is largely as a result of arrears to multilateral lenders such as the IMF, World Bank and African Development Bank.

Mr Munthali said the gross domestic product growth rate has been growing below the debt level rate, compounded further by declining commodity prices and other economic fundamentals.

“Current account deficit levels will increase the level of debt distress,” he said.

Meanwhile, Zimbabwe has developed a debt clearance strategy for its external debt and the plan is expected to succeed before year-end.

Zimbabwe’s debt distress is worsened by a lack of diversified export base and declining terms of trade, which makes it difficult for the country to adjust to changing world demand for tradable goods and the strengthening of the US Dollar against regional currencies has worsened the country’s plight as exports have become uncompetitively priced.

The African Development Bank, estimates that the country’s GDP growth is projected at 1,6 percent at close of the year on the back of anticipated expansion in three sectors, including the financial industry.

According to the UNCTAD report, African governments need to add new revenue sources to finance their development such as remittances and public private partnerships and clamping down of illicit financial flows.

The report says Africa’s external debt ratios appear manageable, but African Governments must take action to prevent rapid debt growth.

“A decade ago of strong growth provided many countries with the opportunity to access international financial markets. This saw external debt stock growing 7.8 percent in 2009, increasing to 10 percent in 2011 to 2013 to reach $443 billion which is 22 percent of gross national income by 2013,” the report says. — Wires.

Minister Chinamasa

Business Reporters

GOVERNMENT is targeting average an economic growth rate of 6,6 percent over 2016 to 2018 driven by manufacturing and agriculture sectors. The economic growth targets are contained in the final draft of the interim poverty reduction strategy paper for the period 2016-2018, which looks at virtually all sectors of the domestic economy. The policy thrust was crafted by the Ministry of Finance and Economic Development with input from stakeholders.The strategy paper envisages near double digit growth of the economy in the final two years of its implementation, which is 2017 /18. Finance and Economic Development Minister Patrick Chinamasa had initially forecast the economy to expand by 2,7 percent this year, but revised the growth target to 1,4 percent on account of falling global commodity prices and the negative impact of the drought.

“The strategy targets an average annual growth rate of 6,6 percent during the period 2016-2018, with 2017 and 2018 projected to grow by 9,5 percent and 8,9 percent, respectively,” reads an excerpt from the poverty reduction paper dated August 1, 2016.

In terms of other macro-economic targets, the poverty reduction strategy paper is targeting annual inflation of 0,6 percent, an interest rate regime that promotes savings and fosters investment, current account deficit of not more than 10 percent of GDP.

In addition, other macroeconomic targets in the paper include reserves of at least three months import cover by 2018 and budget deficit of 1,2 percent of gross domestic product in 2017 and 2018.

In essence economic growth is envisaged to be driven by agriculture, hunting and fishing; manufacturing; electricity and water; construction; finance and insurance; real estate; distribution, hotels and restaurants; and transport and communication.

Government is still battling a multiplicity of factors militating against growth of the economy, after the post dollarisation boom that lasted only until 2012, before starting to decline sharply in 2013.

After Government introduced the multi-currency system in January 2009, Zimbabwe witnessed price stability and improved business confidence, resulting in an increase in capacity utilisation from around 10 percent during recession to around 40 percent by end 2009, and positive economic growth of 5,4 percent. This policy slowed down black market activities, eliminated arbitrage opportunities and dissipated inflation expectations and immediately killed-off hyper-inflation. Goods became available in formal markets.

The multi-currency anchored economic recovery saw real GDP growth peaking at 11,9 percent in 2011, before declining to 10,6 percent in 2012. However, the recovery remained highly fragile because of infrastructure and other macro-economic fundamentals, which remained weak, resulting in a real GDP growth of 4,5 percent in 2013.

The trend in economic growth is now around 1-2 percent per annum following the end of the multi-currency economic growth boom in 2012. Real GDP growth slowed down from 3,8 percent in 2014 to 1,5 percent in 2015 and 2016 forecast, largely due to the impact of the drought, which is taking a toll on agriculture production.

Agricultural production represents a broadly constant share of total output (12 percent in 2014), while service sectors are generally experiencing dynamic growth. However, the manufacturing and mining sectors are struggling to cope with rising capital costs, a difficult business climate and declining competitiveness. The depreciation of the South African rand against the US dollar in particular has weakened Zimbabwe’s competitiveness against its main trading partner, South Africa.

The mining sector is experiencing a structural transition, as the commodity price super-cycle ends. As a result there has been a shift in economic activity from industry to services, particularly finance, insurance, construction and information and communication technology (ICT).

This solution offers simplicity in deployment, management and use. The new platform makes use of cutting edge Wi-Fi technology like MIMO, beam-forming and interference mitigation technology. There has been a lot of developments in the ways people are accessing the internet. People are using other devices apart from traditional computers and laptops, with mobile phones, tablets and smart phones the most common of these.People these days want access to their emails and the internet as easily as they can check their voicemail, and Wi-Fi is extensively used for this.

Wireless (or Wi-Fi) hotspots are wireless access points providing network and/or Internet access to mobile devices like your laptop, tablet or smartphone, typically in public locations.

To put it simply, they are places where you can take your laptop or other mobile device and connect wirelessly to the Internet.

There has been a large increase in Wi-Fi hotspots over the last few years. Connecting to a hotspot and using its Internet connection basically works the same as other home or business wireless connection set up steps: Your wireless-equipped laptop or other device, such as an iPod or smartphone, will typically notify you when it is in range of available wireless networks.

ZOL Zimbabwe have invested heavily in replacing old Wi-Fi infrastructure with new state of the art equipment.

It partnered one of the world’s leading Wi-Fi equipment vendors to design a custom made solution that is tailor-made to suit the Zimbabwean environment.

This solution offers simplicity in deployment, management and use. The new platform makes use of cutting edge Wi-Fi technology like MIMO, beam-forming and interference mitigation technology.

ZOL’s new infrastructure has real-time monitoring and reporting built in so that issues can be fixed faster and automatically.

The access points themselves are smarter, in the event of certain problems they can self-heal and send out alerts to the administrators.

This brings about unparalleled reliability. All this technology is focused on one thing . . . a world class service to the man on the street!

The new Wi-Fi infrastructure brings far higher performance and reliability. The ZOL platform has been tried and tested having been used to provide service to densely populated events such as the Hifa 2015, ZITF, IAD summit and UNWTO.

Over the week of Hifa, ZOL had 3000+ unique devices accessing free ZOL Wi-Fi during the event which collectively accessed over 1TB of data, Yes over 1 Terabyte!!

Through the extensive preparatory work done, ZOL have designed service packages that are simply ahead of all the other services offered in the public Wi-Fi space in Zimbabwe. The packages deliver speed, reliability and about all massive bundles to suit any pocket.

There is flexible validity for bundles at 30, 60 and 90 days.

Top-ups will be super easy via a modern portal page. ZOL has brought the convenience of e-commerce to the user. All bundles and top-ups can be made via Ecocash, Pay-now and other popular mobile and online payment methods available in Zimbabwe.

For existing ZOL customers with an active Fibroniks connection, you can register devices for free unlimited access to ZOLspots nationwide.

The number of devices you can register depends on the package you are on. Call it home away from Home. This provides the registered users with automatic access to ZOLspots with the registered devices. This is done on myzol.co.zw.

The new ZOLspot solution brings higher security — it’s no secret that open Wi-Fi hotspots are not very secure in terms of privacy by nature.

Until now there hasn’t really been a solution to the problem at scale especially in the Zimbabwe market, well now there is, ZOL runs a parallel Wi-Fi SSID alongside ZOLspot called ZOLsecure.

ZOLsecure uses industry standard WPA2-Enterprise/802.1x encryption to secure the connection from the moment it leaves your laptop. Overall ZOLspot Wi-Fi will bring higher reliability, as well as better speeds.

ZOL has over 100 ZOLspots across the whole of Zimbabwe with more being added by the week.

The company continues to invest in technology and partnerships to foster growth within the IT industry.

For more information on ZOLspot, ZOLSecure or Fibroniks on the Go, contact our Sales teams on 08677 111 111 or download the myZOL app for iOS or Android. ZOL ON! You deserve to live like this.

Tomorrow’s graduates will be applying for jobs working in virtual worlds and outer space, experts claim, following the release of a new report predicting career trends for the next ten years. Research conducted by a group of leading technologists, academics and industry analysts suggests that a host of new job options will become available to those graduating in less than a decade’s time, including “ethical technology advocates”, “sustainable power innovators” and “virtual habitat designers”.Contrary to common fears that robots will render human employment worthless, the expansion of new technology will provide countless more as yet unheard of career paths, experts believe, using virtual reality environments and better connected remote office environments.

Ryan Asdourian, Microsoft’s Windows and Surface Lead said of the report: “While these jobs may seem like the realms of science fiction, in reality they are indicative of changes that we are already seeing today.”

“The job market is changing at a more rapid pace than ever before, partly because of artificial intelligence.”

The report highlights that 65 percent of school students in university today will take up jobs that don’t exist yet.

Those involved in the research suggest this means it is more important than ever for graduates to develop a range of skills in order to “future proof” their careers, moving away from traditional single-skill degrees or methods of learning.

“Already today we’re seeing a huge rise in the number of students who are concerned about what their jobs will look like after university,” said Mr Asdourian.

“They’re not feeling prepared for these new bold technology advances ahead of them.”

“It’s becoming more and more important for graduates to have skills across a number of fields,” added Steve Tooze, Foresight Editor from The Future Laboratory, who co-authored the report.

“A ‘virtual habitat designer’ for example would need skills in design and editing — similar to those who design online games today.”

“But pretty soon a job like this will require the skill of an architect, plus there’s an element of psychology needed as well. What is it exactly about sitting under a tree in real life that is pleasurable? How can we replicate that in the virtual world?”

Taking into consideration the changing patterns in STEM career paths in particular, researchers from Microsoft Surface and The Future Laboratory were able to predict new trends by considering briefs that may be niche in 2016 but will eventually be considered mainstream.

(1) Virtual Habitat Designer

Required skills/qualifications: Architectural design, editing, psychology

By 2020, the total global market for VR technology will be worth $40bn, and researchers predict tens of millions of us will spend hours each day working and learning in virtual reality environments by the year 2026.

The role of a Virtual Habitat Designer will be to design these worlds, creating suitable environments for virtual meetings to take place, or VR galleries for artists to display their work.

A typical day at work could involve anything from building a hyper-realistic virtual office complex where colleagues from around the world can meet and work together, to creating a virtual replica of a premiership football stadium where gamers can “be” their favourite player, or reconstructing a World Heritage site, such as Machu Picchu, in cyberspace to cut down visitor numbers to the fragile real destination.

Deakin University in Australia has already collaborated with software developers to offer the world’s first graduate diploma of virtual and augmented reality, starting in September 2016.

(2) Ethical Technology Advocate

Required skills/qualifications: Communications, philosophy,

ethics

In the next decade, the era of robots will dawn — from personal assistants to manual labour and customer service, and it is estimated there will be an extra 55 790 new jobs in the field of robotic engineering by 2018 alone. An Ethical Technology Advocate will act as a go-between for humans, robots and AI, setting the moral and ethical rules under which the machines operate and exist.

This will become more increasingly important, says roboticist and artist Alexander Reben, who has already created the first robot that can choose whether or not to inflict pain on a human.

“I’ve proved that a harmful robot can exist,” he says.

“So we will need people who can confront our fears about AI getting out of control.”

(3) Digital Cultural Commentator

Required skills/qualifications: Art history, business studies, PR and marketing

In ten years’ time, visual communication will dominate social media. This is already apparent with Instagram set to grow by 15 per cent in 2016 compared to just 3 per cent for the wider social network sector.

Workers who can master this shared language of imagery will be much sought after as communicators to mass audiences by businesses and art institutions.

Frances Morris, director of Tate Modern, believes skilled workers such as digital culture commentators will be key to enabling art institutes such as her own to attract visitor spending power and guarantee future commercial success.

“They are the ones that will allow audiences to have a playful encounter with a museum and art gallery that doesn’t make them feel stupid, so suddenly they feel it’s a place for them,” she says.

(4) Freelance Biohacker

Required skills/qualifications: Biosciences, medical methodology, data analytics

Science has long been dominated by professional teams working in universities, corporate research and development departments — but the rise of open source software platforms will democratise this sector, say researchers.

Open-source gene editing tool CRISPR is already allowing thousands of scientists around the world to collaborate on searching for treatments for Depression, Schizophrenia, Autism and Alzheimer’s.

Freelance biohackers will work remotely on open-source software platforms along with thousands of others in virtual teams connected online.

Dr Darren Nesbeth, a synthetic biologist at UCL, predicts that biohackers will fuel major scientific breakthroughs because, unlike professionals in academic institutes, they can spend their time brainstorming and indulging in creative, blue-sky thinking rather than teaching and writing papers.

(5) IoT (Internet of Things) Data Creative

Required skills/qualifications: Engineering, problem solving, communications and entrepreneurship

The IoT is already transforming the world we live in, with devices from cars to home electrics being embedded with electronics, software and sensors that allow them to collect and exchange data.

Big data analytics and the IoT will create 182 000 new jobs in the UK and add £322 billion to the economy by 2020, research from the Centre for Economics and Business Research predicts.

IoT Data Creatives will sift through the waves of data being generated each day by devices in our clothes, our homes, our cars and our offices and find meaningful and useful ways to tell us what all that information is saying.

They will need to have three key talents: a finely honed ability to recognise patterns, a skill at asking sharp and difficult questions, and a natural flair for storytelling.

2025 and beyond

(6) Space Tour Guide

Already on the horizon thanks to the likes of Virgin Galactic, Earth orbit will become the new frontier for adventurous travellers by 2026. And a whole new category of jobs will come about to make the space journeys safe and enjoyable.

They will use their knowledge to construct visits to the more interesting parts of Earth’s orbit.

(7) Personal Content Curator

By the late 2020s, software-brain interfaces, pioneered by teams of neuroscientists, will have started to enter the mainstream, allowing mass audiences to read and capture thoughts, memories and dreams.

Personal Content Curators will help people to use these systems to increase the storage capacity of their over-stretched minds, providing services that allow them to dip in and out of treasured memories and experiences at will.

(8) Rewilding Strategist

By 2025, the planet will struggle to cope with nine billion humans and the resources they require, and traditional conservation won’t be enough. Rewilding Strategists will stitch together viable ecosystems in stressed landscapes, using patchworks of flora and fauna from all over the world, reintroducing plants and animals that have been extinct in a region for centuries in order to create resilient and vibrant landscapes

(9) Sustainable Power Innovator

By the mid-2020s, resource depletion will mean a shift to sustainable energy. The main struggle here will be storing power for the days when the wind doesn’t blow or the sun doesn’t shine. SPSs will be experts in chemistry and material science will invent new battery storage capabilities to help cope with the power demands of the ever-growing reliance on the Internet of Things.

(10) Human Body Designer

Engineering advances will extend the average healthy human life as the growth of replacement tissues and organs becomes an everyday and affordable proposition. HPDs will use bio-engineering know-how to create a huge range of customised human limbs — both fashionable and functional. — independent.co.uk

All importations into Zimbabwe have to be entered for Customs purposes in accordance with Section 39 of the Customs and Excise Act (Chapter 23:02). The airport is regarded as one of the designated ports of entry where goods may be imported into the country. How are goods imported by air cleared? All goods imported by air shall be cleared at the port of entry and at the time of arrival.This means that all goods must be declared and either:

Entered for consumption,

Released on deposit or suitable guarantee if for temporary importation,

Removed in bond,

Held temporarily at a transit shed, or

Held by ZIMRA in a State warehouse pending clearance.

Goods imported by private individuals as accompanying luggage

Individuals disembarking from aircrafts shall declare their baggage at the airport or aerodrome of first landing. What are the Green Route and the Red Route?

These routes at an airport are used for declaration purposes. Use of the green route implies that the traveller is carrying non-dutiable goods, is within his/her duty free allowance and is not in possession of any prohibited and restricted goods.

Travellers who have goods which are in excess of their travellers’ allowance or commercial goods where duty must be paid, those who have controlled goods and those who are not very sure of which route to take must opt for the red route. Note that travellers with firearms including hunting rifles must also use the red route.

Unaccompanied goods

Unaccompanied goods are placed in a transit shed pending clearance which should be done within 10 days, failure of which the goods will be taken to a State Warehouse.

How are private unaccompanied goods cleared?

Private individuals, upon being notified of the arrival of their goods by the transit shed operator, shall proceed to the port of arrival and complete a Customs Declaration (Form 47) submitting all the supporting documents to the ZIMRA officer for proper clearance and calculation of duties where due.

How are commercial importations cleared?

Merchandise imported into the country by air shall be cleared at the port of entry.

For merchandise less than $1 000 in value – Declaration on Form No. 47 shall be made to ZIMRA officials at the port of entry together with submission of supporting documents showing the cost, nature, quantity, freight and insurance charges. Physical examination may be done on the goods and duties calculated with reference to the documents submitted.

Merchandise equal to or exceeding $1 000 in value – These importations shall be cleared on a Bill of Entry Form 21. Companies including individuals who will be importing commercial goods and are not registered with ZIMRA as declarants will be required to engage the services of a ZIMRA-registered clearing agent.

How are freight and insurance costs treated?

On commercial and unaccompanied private importations, freight and insurance provided on the invoice or airway bill shall be compared with 15 percent of the Free on Board value and the lower shall be applied in computing the Value for Duty Purposes (VDP).

What rates of duty are used?

The rates of duty applicable are the ones prevailing on the date of importation. For private importations, flat rates of duty are applied, unless a request is made to the use of proper tariff rates prior to the calculation of duty. Proper tariff rates apply for all commercial importations.

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 Line 0772 135 690

E-Mail: zimraanticorruption@gmail.com

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

TelOne has unveiled an exciting feature to the voice service. TelOne landline home users can now make free unlimited calls to other TelOne landlines between 6pm and 6am on Mondays through to Friday. This service will only be available to fully paid-up clients. Through this offer, TelOne clients can now enjoy over 300 hours of free talk time every month. What an amazing offer!Unpacking the TelOne voice sevice

TelOne has been connecting Zimbabwe for generations and will continue doing so at the most affordable rates.

For as littles as 6 cents per minute TelOne clients can talk for hours to their loved ones or conclude business deals at the following voice rates:

The landline offers so much more features which include call conferencing, call diversion, call waiting, among others.

These enhanced services known as Value Added Services (VAS) are free of charge to all TelOne clients. The features are explained below:

Toll-Free

The Toll Free Service is ideal for corporates or small to medium enterprises for orders, enquiries or reporting.

With a TelOne Toll Free number a caller does not pay for the call, instead the called party pays for the call.

For example Company X provides a toll free number that customers can call to, from any location nationally and they reach Company X’s nearest customer service centre, without the customer incurring charges.

Company X is the responsible for payment of the charges for the use of its Toll Free number by customers.

Conference calling

One does not need to travel all the way to another Region or town for a one hour meeting. Save time, money and reduce travel by having a conference call. This involves two or more people having a conversation on just one call.

How to use:

1. Dial to obtain the first number.

2. Flash receiver hook pressing the flash button on your telephone keypad and dial the second number.

3. Flash receiver hook again to enable 3 way conversations.

4. To clear replace the receiver.

Call diversion

If you are expecting an important call you do not have to miss it or wait around for it. Call diversion allows you to transfer a call to another landline or cell phone number. This function does not affect outgoing calls.

The facility increases efficiency as one has the ability to answer all calls while they are away from their telephone. Security is enhanced because callers do not know you are away from the office.

How to use:

1. To register dial *21* selected number #.

2. To cancel, dial #20#.

Call forwarding

Allows a call to be automatically transferred to a selected number if the customer does not answer an incoming call within a specified period.

Call waiting

This service enables a customer to put a call in progress on hold, answer another incoming call on the same line and switch back to the first call. The Call Waiting feature notifies you if someone is trying to call you, while you are on another call. It allows you to choose or to ignore the call, terminate the call you are on, accept the new call or put the original call on hold while you take the new one.

How to use:

1. To register dial *44#. An engaged customer will hear a call waiting indication. The customer has these options:

Ignore the incoming call.

Clear the current call by replacing the receiver thus allowing incoming calls through.

Hold current call and end incoming call:

To accept the incoming call -tap hook on the receiver once

To revert to previous call-tap hook on the receiver again

To cancel, dial #43#

Call transfer

Allows a customer to forward all incoming calls when the line is busy.

Code Division Multiple Access (CDMA)

This is a wireless landline connection which gives voice users more flexibility and mobility. The facility is currently available in Harare, Ruwa and Chitungwiza.

Advantages of using a CDMA Line

No cables or wire connection required.

You can see the Caller ID.

Has conference calling facility.

Operates within a 20km radius from TelOne CDMA base station.

Contact TelOne today for all your voice, internet and data services: Contact Centre Numbers Tel: (04) 700950, Whatsapp: 0718 700 950, Email: clientservices@telone.co.zw, Web: www.telone.co.zw

Dr Gift Mugano

Zimbabwe is in dire need of foreign direct investment (FDI) if it is going to address liquidity challenges, retool and generate exports. We are using the multiple currency regimes which the United States Dollar dominating the currency basket. Our getaway to getting cash injection is mainly through exports, aid, remittances and FDI. I found it fit to look at the trends of global FDI so that as a country we can see the state of affairs in the FDI flows on the global arena.Global FDI flows jumped by 38 per cent to $1,76 trillion, their highest level since the global economic and financial crisis of 2008-2009. A surge in cross-border mergers and acquisitions (M&As) to $721 billion, from $432 billion in 2014, was the principal factor behind the global rebound. Inward FDI flows to developed economies almost doubled to $962 billion. As a result, developed economies tipped the balance back in their favour with 55 percent of global FDI, up from 41 percent in 2014. Strong growth in inflows was reported in Europe. In the United States FDI almost quadrupled, albeit from a historically low level in 2014.

Developing economies saw their FDI inflows reach a new high of $765 billion, 9 percent higher than in 2014. Developing Asia, with FDI inflows surpassing half a trillion dollars, remained the largest FDI recipient region in the world. Flows to Africa and Latin America and the Caribbean faltered.

Outward FDI flows from developed economies jumped by 33 per cent to $1.1 trillion. The increase notwithstanding, their outward FDI remained 40 per cent short of its 2007 peak.

With flows of $576 billion, Europe became the world’s largest investing region. FDI by MNCs from North America stayed close to their 2014 levels.

Looking ahead, the United Nations Conference for Trade and Development (UNCTAD) notes that FDI flows are expected to decline by 10-15 per cent in 2016, reflecting the fragility of the global economy, persistent weakness of aggregate demand, sluggish growth in some commodity exporting countries, effective policy measures to curb tax inversion deals and a slump in Multi-National Corporations (MNCs) profits. Over the medium term, global FDI flows are projected to resume growth in 2017 and to surpass $1,8 trillion in 2018, reflecting an expected pick up in global growth.

Regional investment trends

FDI flows to Africa fell to $54 billion in 2015, a decrease of 7 percent over the previous year. An upturn in FDI into North Africa was more than offset by decreasing flows into Sub-Saharan Africa, especially to West and Central Africa.

Low commodity prices depressed FDI inflows in natural-resource-based economies. FDI inflows to Africa are expected to increase moderately in 2016 due to liberalisation measures and planned privatisations of state-owned enterprises.

Developing Asia saw FDI inflows increase by 16 percent to $541 billion – a new record. The significant growth was driven by the strong performance of East and South Asian economies. FDI inflows are expected to slow down in 2016 and revert to their 2014 level. Outflows from the region dropped by about 17 percent to $332 billion – the first decline since 2012.

FDI flows to Latin America and the Caribbean – excluding offshore financial centres – remained flat in 2015 at $168 billion.

Slowing domestic demand and worsening terms of trade caused by falling commodity prices hampered FDI mainly in South America.

In contrast, flows to Central America made gains in 2015 due to FDI in manufacturing. FDI flows to the region may slow down in 2016 as challenging macroeconomic conditions persist.

FDI flows to transition economies declined further, to levels last seen almost 10 years ago, owing to a combination of low commodity prices, weakening domestic markets and the impact of restrictive measures/geopolitical tensions.

Outward FDI from the region also slowed down, hindered by the reduced access to international capital markets. After the slump of 2015, FDI flows to transition economies are expected to increase modestly.

After three successive years of contraction, FDI inflows to developed countries bounced back sharply to the highest level since 2007. Exceptionally high cross-border M&A values among developed economies were the principal factor. Outward FDI from the group jumped.

FDI flows to structurally weak and vulnerable economies as a group increased moderately by 2 percent to $56 billion. Developing economies are now major sources of investments in all of these groupings.

Flows to least developed countries (LDCs) jumped by one third to $35 billion; landlocked developing countries (LLDCs) and small island developing States (SIDS) saw a decrease in their FDI inflows of 18 percent and 32 percent, respectively.

Divergent trends are also reflected in their FDI prospects for 2016. While LLDCs are expected to see increased inflows, overall FDI prospects for LDCs and SIDS are subdued.

Investment policy trends

Most new investment policy measures continue to be geared towards investment liberalisation and promotion. In 2015, 85 percent of measures were favourable to investors.

Emerging economies in Asia were most active in investment liberalisation, across a broad range of industries. Where new investment restrictions or regulations were introduced, these mainly reflected concerns about foreign ownership in strategic industries. A noteworthy feature in new measures was also the adoption or revision of investment laws, mainly in some African countries.

UNCTAD noted that national security considerations are an increasingly important factor in investment policies. Countries use different concepts of national security, allowing them to take into account key economic interests in the investment screening process. Governments’ space for applying national security regulations needs to be balanced with investors’ need for transparent and predictable procedures.

UNCTAD noted that governments need to work around investment facilitation from a policy perspective. According to UNCTAD, promoting and facilitating investment is crucial for the post-2015 development agenda. At the national level, UNCTAD observed that many countries have set up schemes to promote and facilitate investment, but most efforts relate to promotion (marketing a location and providing incentives) rather than facilitation (making it easier to invest).

To this end, UNCTAD produced a Global Action Menu for Investment Facilitation which provides policy options to improve transparency and information available to investors, ensure efficient and effective administrative procedures, and enhance predictability of the policy environment, among others.

Take away for Zimbabwe

For starters, Africa as a whole is receiving a paltry of global investments. To be quite specific, in 2015, Africa received 3 percent of the total global investments. What it means is that Zimbabwe has to compete with rest of the African states for the share of $54 billion coming to our continent. Already, Zimbabwe is receiving around 10 percent of the total FDI which other countries like Mozambique, Angola and Nigeria are receiving.

It means that we have to work hard to match with our peers with respect to the provision of necessary incentives and environment if we are to attract the same levels of FDI. Then, we have to provide a better business environment, better than our peers, if we are going to exceed them in attracting more FDI.

We are underutilising of assets in attracting FDI. We have a dollarised environment which should work to our advantage in attracting FDI since it is a stable currency. We have favourable geography in terms of location, mineral resources and climatic conditions which must work to our advantage. We have a rich human capital. I can go on and on. We must work on these areas of strength.

However, there are certain challenges we need to deal with head on like the need to develop credible polices, addressing corruption and the general political environment. What we need to keep in mind when we think of FDI is that capital is coward. It goes where it feels safe.

◆ 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

Business Reporter

Associated Foods Zimbabwe, producer of peanut butter and jam spreads, is eyeing the export market after successfully installing a state-of-the-art production line. The production line was financed by a $2 million investment from the Norwegian Investment Fund for Developing Countries, Norfund. The peanut butter production line is similar to machines used by leading international food processing companies such of as Hersheys in the US and other producers in South Africa.Capacity has trebled and the company is now operating at about 80 percent running 12 hours a day.

“We now have the ability to look into export avenues because we did not have that capacity before we acquired the new production line,” said AFZ director and majority shareholder Simba Nyabadza.

Production is consolidated at AFZ’s Vumba factory at Border Stream Farm from where all of the company’s products are being produced.

The company also produces mangoes, tomatoes, macadamia nuts among other farm produce.

“The new state-of-the-art production line is all computerised with human hands only at the packing stage. More importantly, the quality of our products has vastly improved . . . it’s now world class,” said Mr Nyabadza.

AFZ, Zimbabwe’s leading producer of peanut butter, jam spreads, as well as canned tomatoes and fruits, and nut savouries, is a result of a merger between Honeywood Enterprises (Pvt) Ltd, Zimbabwe’s leading producer of jams, mainly under the “Farm Gold” brand, and Spread Valley (Pvt) Ltd, Zimbabwe’s leading producer of peanut butter, mainly under the “Mama’s” brand.

The merger was also part-financed under the Norfund investment package.

“By combining the manufacturing strengths of Honeywood Enterprises with the sales, marketing and distribution strengths of Spread Valley, we aim to create the economies of scale and synergies in order to generate significant added value and efficiencies for all stakeholders, including customers.

“We are pleased to have found in Norfund a first-class partner with a deep understanding of the food and agribusiness sector, strong track-record and a well-rounded international netwok,” said Mr Nyabadza.

“This investment is in line with Norfund’s strategy to support profitable and sustainable, local enterprises in developing countries. Agriculture is a priority sector for Norfund, as it employs approximately half of Africa’s workforce and plays an important role for economic growth and development.

“We look forward to being an active, strategic minority investor in AFZ with a long term perspective,” added Chishamiso Mawoyo, an investment manager in Norfund’s Food and Agribusiness department.

Zimbabwe’s mobile telecommunication services providers saw their revenues for the first quarter of this year decline 12 percent, latest Postal and Telecommunication Regulatory Authority of Zimbabwe (Potraz) figures show. During the quarter, Econet, NetOne and Telecel all posted declines in their revenues.The telcos generated a total of $167, 7 million during the first quarter of 2016, which is a 12,3 percent decline from the $191,1 million recorded in the prior comparable period.

The regulatory body attributed the decline to the increased utilisation of over-the-top (OTT) services by users, as well as a generally challenging economy that has constrained spending power.

“Mobile revenues have been declining due to the substitution of traditional mobile services with Over-the-Top services as well as the general economic environment,” said Potraz.

“OTT voice applications such as Viber, Skype and WhatsApp calling have become popular alternatives for international calling as they are significantly cheaper; this has resulted in falling international voice traffic and in turn falling revenue from international voice services.”

The increasing impact of OTT services is indicated in an analysis which shows that during the period under review, national voice traffic declined by 15,3 percent to record 1 billion minutes from 1,2 billion minutes recorded in the previous quarter.

At the same time, international incoming and outgoing traffic declined by 16,5 percent and 13,8 percent, respectively.

And due to the impact of OTT services, Potraz noted a jump in mobile data utilisation by 25,5 percent during the period to 1 510 379 839MB from 1 203 378 839MB in the quarter ended December 31, 2015.

The statistics show that although Econet lost 1 percent market share during the quarter, it still held the majority at 53,3 percent, followed by NetOne with 32,1 percent and Telecel with 14,6 percent.

NetOne was the only operator to gain market share of base stations as they commissioned the highest number of base stations.

Notwithstanding the ongoing debate about infrastructure sharing, Potraz says the total number of base stations in the country increased by 6,5 percent to 6 720 from 6 311 in the prior quarter.

“The total number of LTE eNodeBs (eNBs) (‘base stations’) in the country increased from 312 to 326 as NetOne commissioned 14 new LTE eNBs in the quarter under review,” noted the regulator.

Further analysis shows that the total number of base stations in urban areas stood at 1 940 versus 4 780 base stations in urban areas. And a comparison with the fourth quarter figures shows that base stations in rural areas increased by 11 percent from 1 748 to reach 1 940 base stations (although the increase was mostly in 2G technology). — BH24.

Gold bars

Business Reporter

An outstanding performance by How Mine in the second quarter of 2016 saw Zimbabwe’s biggest gold producer Metallon Corporation record a nine percent jump in gold production to 22,565 ounces from 20,673 produced in the first quarter. Metallon Corporation, a gold mining group owned by South African businessman Mzi Khumalo boasts of five gold mining assets; How Mine (the flagship asset), Shamva Mine, Mazowe Mine, Redwing Mine and Acturus Mine.“Metallon delivered a positive performance in the second quarter. Production increased almost 10 percent and AISC reduced by 16 percent quarter on quarter, with the operations at How Mine especially achieving strong results.

The appointment of contract miners at Shamva Mine and ramp up at Redwing Mine will also provide increased production in the second half of the year,” Metallon Corporation chief executive Ken Mekani said.

“We look forward to the continued expansion across the group and reaffirm our production target of 120 000 ounces in 2016,” he said.

Mr Mekani said the capital expenditure programme aimed at its mines over the next few years will considerably increase production and generate future revenue.

He said although the initial on set of liquidity challenges impacted mining activities due to delays in paying for imported products, the group is encouraged that the Reserve Bank of Zimbabwe is prioritising payments within the mining sector.

“Metallon continues to work closely with the Chamber of Mines and we are engaging regularly with the Ministry of Finance and Economic Development and the Ministry of Mines and Mining Development,” said Mr Mekani.

In a group production update yesterday, Metallon Corporation said power interruptions continued to affect operations during the quarter under review. Metallon lost 112 hours of production in the quarter which equates to approximately 1 700 ounces.

“Metallon is working on possible solutions for supplementing grid power supply. The second quarter C1 costs were $764 per ounce and all in sustaining costs were $971 per ounce.

“This is an improvement of 14 percent and 16 percent compared to first quarter of 2016. This improvement was the result of increased production and cost savings from overtime control and central procurement,” said Metallon Corporation.

“As production and cost efficiencies improve throughout the year with new equipment and increased capacity, Metallon expects these costs to reduce further.”

On expansion, How Mine How Mine commenced the deepening of the 16N7 Shaft in order to increase ore supply. The shaft deepening from 28L to 34L is to access ore below 28 Level which will increase future production and commissioning of the deepened shaft is expected in 2018.

On Shamva Mine the new Tailing Storage Facilities will be commissioned in the fourth quarter while plans are scheduled to refurbish the processing plant to 70 000 tonnes per month capacity, which would increase production in 2017.

During the quarter under review, management appointed contract miners at Shamva Mine. Contract miners commenced on August 01, 2016 and management is confident that positive results will be generated in the third quarter.

“Dependant on performance, management may consider use of contract miners across the group,” said the mining group.

Construction on the new Processing Plant and TSF at Mazowe Mine is currently at 80 percent and commissioning is expected in the fourth quarter of 2016.

The new Mazowe Processing Plant is expected to increase capacity at the mine to 70 000 tonnes per month. Exploration drilling has also commenced at Mazowe Mine with drill results to be published in the third quarter.

Redwing Mine continues to increase production following the resumption of operations in November 2015.

Production is expected to increase to 22 000 tonnes per month by the fourth quarter of 2016. Plans are also underway to increase production to 50 000 tonnes per month in 2017.

In 2016, Metallon will be focused to upgrading the Inferred section of its resource into the Measured and Indicated category. This exploration programme across Metallon’s mines is positioning the company for increased production over the next five years.

Seed Co Holdings group chief executive Morgan Nzwere (left), outgoing group chairman Pat Rooney (centre) and group finance director John Matorofa pose for a photo at the company’s annual general meeting yesterday

Tinashe Makichi : Business Reporter

Listed seed producer, Seed Co Holdings Limited experienced a 27 percent decrease in sales of winter cereals across the main markets of Zimbabwe and Zambia. Seed Co group chief executive Morgan Nzwere told the company’s annual general meeting yesterday that the decline in sales in the first quarter was due to low water levels for irrigation due to El Niño effects from last season and general power shortage particularly in Zambia.He said maize sales are still to commence in earnest and stocks have been sent to the market earlier than normal in view of expected demand.

“Indications are that there will be significant input programmes to alleviate hunger following the El Niño conditions of last season in Zimbabwe, Zambia and Malawi

“NGO activity is expected to increase due to the hunger prevailing across Southern Africa,” said Mr Nzwere.

He said overheads are in line with budget and six percent lower than prior year while the group’s debt collection is progressing well with slightly over $13 million having been collected since year end.

Mr Nzwere said despite the progress made in debt collection, redemption of vouchers in Tanzania is, however, slow with $1,1 million still outstanding while Government attention in Zambia has been distracted by the ongoing campaigning for the elections and $3 million remains outstanding.

On production, Mr Nzwere said a total of 41 800 tonnes is expected to be delivered for the production season just ended.

On expansion, he said work in Nigeria is ongoing with the major focus being on establishing a proper production base and some learning curve effects are beginning to show in some targeted areas.

Ethiopia remains work in progress while activities in the Democratic Republic of Congo have been being slowed down by the uncertain political environment. He said the Zambian kwacha devaluation has been encouraging DRC seed traders to cross borders.

The seed company is also working on replicating Prime Seeds into Zambia, Kenya, Tanzania and Malawi under the brand prime –Seed Co.

Going forward, he said early weather forecasts indicate a La Niña pattern with above normal rains which may lead to flooding in some areas.

Mr Nzwere said there is increased demand for seed across all markets to address the grain deficit and the hunger prevailing at household level.

“Inputs are expected to be prioritised by most Governments while increased NGO activity in the form of agricultural inputs is expected in view of the poor harvest last season.

“Continued growth in East Africa with further gains in market share in Tanzania and Kenyan highlands is expected,” said Mr Nzwere.

On research, Mr Nzwere said several white and yellow maize hybrids were advanced for release in West, East and Southern Africa, and as far afield as Pakistan and India.

He said these products are in the early to medium maturity series (300-600). The new white hybrids SC301 and SC419 demonstrated outstanding performance under drought, heat and normal production conditions qualifying them as climate smart.

Cotton

Business Reporter

FARMERS have delivered 16 million kilogrammes of cotton since the start of the selling season, official figures show. Seed cotton intake as at July 29 showed 15,9 million kg of the crop had been delivered, down from 36,5 million kg during the same period last year, the Agriculture Marketing Authority said. Eight companies were licenced to buy the crop this year.Most companies are paying an average price of 36c per kilogramme. While Cottco is paying 35c per kilogramme on the spot, the company is issuing promissory receipts to farmers indicating that it will adjust the price to 45c kg.

Cottco, which is buying the crop on behalf of the Government has bought about 6 million kg, followed by Olam (3,1 million kg), Grafax (2 million kg and Alliance Ginners at 1,5 million kilogrammes.

Cotton output is expected to decline this year due to a combination of factors including poor rains.

While farmers received some free inputs under Government’s input support programme, the yields will not match the seed volumes taken up by farmers due to poor rains.

There was also a marked decline of cotton growers this season after many farmers abandoned the crop citing viability issues. Farmer organisations have estimated the crop size may decline to around 75 000 tonnes compared to just above 100 000 tonnes produced last year. In the 2013 /14 season, cotton output was 135 000 tonnes.

The fundamental challenges in Zimbabwe’s cotton industry are poor grower viability, side marketing and poor vertical integration.

The approaches that have been tried since the privatisation of the Cotton Marketing Board in 1994 include liberalisation of the sector and the entry of new players as well as the promulgation of a new legal framework to control side-marketing.

According to some analysts, there is need to revert to a state controlled monopoly, the Cotton Marketing Board whose mandate extends beyond primary cotton production to value addition. The board can then contract a competent operator, to run the cotton industry on its behalf.

This has some key advantages. There will be an improvement of grower yields due to the supply of the correct inputs package and agronomy support.

Yield growth will drive grower viability, improved debt repayment and the recovery of cotton production. This growth can be achieved without resorting to risky GMO technology.

The reinstatement of the seasonal pool price and quality bonus payments will improve crop quality and sector viability, enabling the nation to regain its reputation for top quality. Higher yields and higher crop volumes will result in improved operational efficiencies and competitiveness, thereby allowing higher producer prices.

JOHANNESBURG. – FINANCIAL institutions must embrace digital transformation to survive intense competition in the sector and remain relevant in the digital economy, an expert warns. Astrid Stolbrink, divisional head of financial service at SAP Europe, Middle East Africa (EMEA) and Africa, says banks need to be faster and more dynamic, with as deep and complete an understanding of its customers as possible and the ability to respond instantly.“To survive in this changing environment, banking institutions need to evolve,” stressed Ms Stolbrink.

She added the requirements are changing and today’s banking consumer demands instant service, with round-the-clock availability via channels of his choice.

The expert pointed out that recent years have also seen a host of new market entrants, all able to offer consumers a variety of banking and financial services, with PayPal and its ease of intercontinental money transfers a prime example.

“Banks need to be faster and more dynamic, with as deep and complete an understanding of its customers as possible and the ability to respond instantly.”

She recommended SAP S/4HANA, heralded as the fastest growing product ever in SAP’s 44-year history.

Built on the SAP HANA platform, SAP’s in-memory column store business platform, provides immediate insight, intelligence beyond automation and complete integration between organisational divisions and the world at large, including third party financial technology (FinTech) providers.

“This is of particular significance in the African market,” said Ms Stolbrink.

“While a huge percentage of Africans don’t actually have bank accounts, the proliferation of smartphones is well known. The SAP Banking offering is perfect for mobile transactions.”

Citing South Africa as a highly innovative marketplace, Ms Stolbrink is upbeat about the readiness of local industry. – CAJ News.

Despite the drought and other challenges, the Zimbabwe Herd Book 2016 National Bull and Heifer Sale attracted the best yielding yet of pedigree cattle and sheep at the national breed stock sale. The stock on offer at Mount Hampden Sale Pens on July 29, were the cream of the crop entered, selected by inspection to offer the best animals across the breeds – the shop window of top livestock genetics in Zimbabwe.Opening the premier event on the livestock auction calendar, the Deputy Minister, Crops in the Ministry of Agriculture, Mechanisation and Irrigation Development, the Honourable Davis Marapira commended ZHB and breeders for putting on such a fine show despite the severe drought and other challenges facing livestock producers. He underscored the importance of using strong, resilient livestock genetics to meet the growing challenge of climate change.

There was a fine array of registered pedigree cattle at the 48th National Breed Sale. Brahman predominated and there were also Holstein, Blond d’Aquitaine, Simmental, Santa Gertrudis, Boran, Beefmaster, Simbrah as well as registered animals from Zimbabwe’s own indigenous cattle breeds the Mashona and Tuli. Dorper sheep also went under the hammer, regrettably Kalahari Red goats entered in the national sale for the first time had to be withdrawn at the last minute due to movement restrictions.

“It is remarkable that breeders have produced such a fine show with Foot and Mouth Disease in the country and in the drought,” said ZHB chairman Keith Swales.

“The resilience of people, especially farmers, is commendable with the hardships and constraints, and we have a full yielding of animals. The only cattle breeds missing here are Aberdeen Angus and Hereford as we no longer have registered breeders today.”

“The best yielding yet,” was how Dr Mario Beffa, general manager of Zimbabwe Herd Book, described the 48th National Breed Sale. “This is exciting because it shows that livestock breeders in Zimbabwe are achieving genetic progress – breeding better animals – which is what livestock breeding is all about.”

Dr Beffa attributes this to the dedication of the country’s livestock breeders, strict adherence to the breed standards set by breed societies, ZHB’s pedigree livestock registration system of authentic and up to date breed records; and the fact that Zimbabwe keeps abreast of the latest global developments in animal breeding.

The National Breed Sale is a barometer of the continual breed improvement achieved by Zimbabwe’s livestock breeders. Only the best of the pedigree stock entered are selected by inspectors for the National Sale every year.

“We aim to have a good balance of breeds in the hundred or so cattle chosen every year,” said Dr Japie Jackson, senior ZHB inspector. “We look for conformation, how well the breed characteristics are expressed; and of course, breeding soundness.”

Another ZHB inspector, John Crawford points out that inspection is critical as the worth of a breeding animal cannot be judged simply on how magnificent the animal looks.

“Prices for the quality of animals on offer were comparable to last year,” observed auctioneer Mark Hayter, director of CC Sales. This has been contrary to the low prices across the cattle auction market in 2016. Emergency de-stocking of cattle earlier in the year produced an oversupply of beef, which together with reduced consumer buying power has kept the price of beef low.

The annual National Sale organised by ZHB plays an important role in bringing pedigree livestock genetics to the market, for both the breeder and commercial cattle producer. Some of the animals bought on the sale will be used in cross-breeding programmes, where the genetic gain in crossing is ultimately determined by the purity and genetic strength of the parent stock. Over the years, the country has built up one of the strongest gene pools of livestock genetics in Africa – both indigenous and exotic breeds.

A Stock-man’s Academy is established

In a visionary initiative, a Stock-man’s Academy has been established in Zimbabwe to empower small-scale farmers to turn their cattle into a commercial beef enterprise and transform their livelihoods.

CC Sales has partnered with Nurture Education Trust in the Stock-man’s Academy training programme to equip smallholder farmers who traditionally keep cattle for many purposes, with the management skills to realise a commercial return on their primary asset, cattle.

Two hundred cattle farmers, drawn from every district of the country have been awarded places on the inaugural Stock-man’s Academy course this year. Selection of candidates is carried out by the Department of Livestock Production and Development which allocates an equal number of places to men and women, as specified by the Trust.

“The concept of Nurture Education Trust is to tap knowledge from retired farmers and other livestock experts and capture this in a form that today’s cattle farmers can benefit from,” explains NET trustee and CC Sales, director, Mark Hayter.

Nurture Education Trust has consolidated this knowledge into the Stock-man’s Academy training programme, and together with CC Sales is facilitating Stock-man’s Academy training at five venues around the country.

The first training session was conducted at Gwebi Agricultural College in June and the programme got underway at Mlezu Agricultural Institute on July 11, 2016. Annual Stock-man’s Academy courses will also be held at Esigodini Training Institute for farmers in Matabeleland and at Makoholi Research Station for participants from Masvingo and Manicaland.

The Stock-man’s Academy programme is designed to empower small farmers to profitably and productively manage their cattle and utilise them for beef production. Held over five intensive sessions, the comprehensive course comprises five key components to successful commercial cattle production – breeding and genetics; nutrition; animal health; cattle handling; and cattle farming as a business. These are the basic building blocks to efficient and productive commercial cattle farming.

This initiative recognises the key role that smallholder cattle keepers must play in boosting beef production in Zimbabwe. With the bulk of the national herd now concentrated in communal areas, the 15 percent increase in beef off take targeted by Government must come from the smallholder cattle sector.

Nurture Education Trust was established this year to tap the wide expertise and farmer experience on commercial cattle production in Zimbabwe, and the willingness to impart this to smallholder farmers.

Training is conducted by recognised experts and cattlemen committed to the long term success of commercial cattle production in Zimbabwe.

The Stock-man’s Academy fills an important training gap in agriculture today. It recognizes that cattle, the primary asset in many rural communities and source of livelihood for millions of Zimbabweans, are an underutilised asset that can be used to generate a commercial return for farmers.

Whilst millions of Zimbabweans traditionally keep cattle, most do not farm them commercially. Through the Stock-man’s Academy, NET and CC Sales are empowering farmers with the cattle management skills to build strong, productive beef herds. In rural communities where cattle traditionally play an integral role in the socio-economic life of the people, strengthening cattle productivity improves livelihoods at many levels.

At a time when more farmers in Zimbabwe are looking to realize a commercial return on their cattle, the establishment of the Stockman’s Academy is a welcome development.

Fish Producers’ Association Ready to Grow Aquaculture in Zimbabwe

The newly constituted Zimbabwe Fish Producers’ Association (ZFPA) is ready to build fish farming into a fully-fledged agricultural industry. With a constitution now in place and an elected council to represent the growing number of fish producers, ZFPA is ready to drive fish farming as Zimbabwe sets its sights on reaping the benefits of aquaculture, which is now the fastest growing food industry in the world.

More than a hundred established and prospective large and small scale fish farmers convened at Exhibition Park on July 22, 2016, for the inaugural Annual General Meeting of ZFPA and an informative day on aquaculture to give prospective fish farmers an overview of what is involved in aquaculture production and to create an interactive platform for discussion on the way forward for the new fish farming industry.

“Going forward, we will partner with Government and NGOs interested in fish farming, to grow the industry. We must build on the momentum achieved so far,” explains newly elected ZFPA chairman Paul Mwera, technical services manager at Lake Harvest. “ZFPA will provide fish farmers with the information they need, coordinate training and create an enabling environment for aquaculture. Our role will also be to engage government on issues pertinent to the development of a thriving aquaculture industry in Zimbabwe, to ensure that we build sustainable livelihoods for fish farmers, improve nutrition for communities and help to meet the goals of Zim-Asset at national level.”

Opening the event, on behalf of Deputy Minister, Livestock in the Ministry of Agriculture, Mechanisation and Irrigation Development, Dr Unesu Ushewokunze-Obatolu noted that Veterinary Services plays a key role in fish health in Zimbabwe.

“Fish farming is an important area for growth that must be tapped to expand Zimbabwe’s food base,” she said. “We need to develop the fish value chain, create jobs and make protein food available at an affordable cost.”

Noting that the country has many success stories in aquaculture and the recent development of a strong fish feeds industry, she said the fish industry has a solid base to build on.

“Government is developing a dedicated livestock policy recognising fish as a livestock sub-sector and to optimize the use of land; generate nutritional benefits and for integrated production systems.”

Fish farming can also be incorporated in the management of ecosystems and resilience building under climate change.

Zimbabwe is one of the few countries in Africa that does not yet have a policy framework on aquaculture and ZFPA will work with Government to craft this. What is required is a policy on fish farming clearly defining it as part of agriculture, regulated by MoAMID; separate from capture fishing which falls under the purview of the Ministry of Environment and Climate regulated by the Parks and Wildlife Management Authority. In Zimbabwe, as well as globally, production from fish farming is fast catching up with capture tonnages of wild fish. Zimbabwe’s annual fish production now stands at 20 000mt; with 45 percent of this now coming from aquaculture, and the remaining 55 percent from wild capture.

One of ZFPA’s focus areas is to ensure that prospective fish farmers can access proper training at minimum cost, so that farmers engaging in fish farming are properly equipped for the task. The ZFPA fish day at Exhibition Park on July 22 included talks on key aspects of fish farming – fish feed, fish health, pond construction, a viability assessment of different types of aquaculture and cage farming.

The presentation on fish health by Mwera provided an overview of the rigorous biosecurity implemented at the Lake Harvest, Kariba operation, the largest fish farm in Africa. In another of Zimbabwe’s aquaculture success stories, small-scale producer Sokonia Kaitano shared his experience on cage farming and how he has built a thriving tilapia operation on Munandi Dam, which supplies the surrounding community and Karoi’s Spar supermarket with nutritious fish.

It was evident from the exhibitor stands at the ZFPA event, that fish farming is spawning the growth of other industry in Zimbabwe.

The country is now producing its own fish feed, in a specialised industry, with one new manufacturer now offering ten different lines of feed to maximize fish growth at each stage of development, through from fingerling to fully grown fish. Fish nets and pond liners too are produced locally. Good quality fish seed stock is also produced at hatcheries in Zimbabwe and farmers should seek guidance from ZFPA on where to obtain fingerling.

With over 10 000 dams in the country and Africa’s second largest water body, Lake Kariba, there is enormous scope to grow aquaculture in Zimbabwe. Even though the country boasts the largest fish farm in Africa, aquaculture production is relatively undeveloped in comparison to many other African countries.

The new Zimbabwe Fish Producers’ Association is expected to play a key role in driving the development of aquaculture as Zimbabwe sets its sights on reaping the benefits of aquaculture, the fastest growing food production industry in the world. Fish is fast becoming a popular dish in Zimbabwe as people become more aware of the health benefits of this tasty and nutritious food.