MOBILE telecoms providers have long been keen to boost revenues through the provision of more services. Online video is the obvious way to do this but it requires much faster download speeds. With the physical infrastructure now being put in place, in some markets at least, online video is on the verge of taking off.

Download speeds over most of the continent are too slow to allow for the growth of video on demand (VOD) services. There is no universally recommended download speed threshold for streaming, partly because the type of technology used at every stage of the process has an impact.

However, Netflix recommends a speed of at least 1.5 megabits per second (Mbps) for streaming; 3.0 Mbps for DVD quality video; 5.0 Mbps for HD video and 12 Mbps for 3D video. There is currently nowhere in Africa that would achieve the last of these. However, even connections that fail to achieve these thresholds may allow users to download content rather than stream it.

Data costs are still too high. Using figures from 2016, a World Bank report on the subject revealed that a gigabyte of data was an expensive $14,10 in South Africa, compared to just $2,10 in Cameroon, which offers the cheapest data of the 17 African countries considered by the report. The average African consumer currently has less disposable income but faces higher data costs than their counterparts in other parts of the world. However, this is likely to change in the very near future.

The completion of a string of subsea telecoms cables is connecting Africa to the rest of the world and enabling much faster speeds. Much of the project financing has not come from the private sector but from the African Development Bank and World Bank.

Some governments are now putting terrestrial backbone fibre infrastructure in place, while South Africa and Kenya are leading the way in rolling out fibre to the home (FTTH). These last two layers of infrastructure can be compared to the transmission and distribution grids used to bring electricity to customers in the power sector.

High-speed fibre is also needed for cloud computing. Kevin South, channel manager at South Africa’s Seacom, said: “Fibre enables job creation and facilitates innovative thinking, empowering us to run a digital economy that compares to the best in the world. It’s key to our country’s participation in the global digital era – but we need a progressive mindset to take full advantage of the opportunities.” He complained that local councils were still taking too long to approve the laying of new cables.

The government of South Africa is considering the merger of two state-owned telecoms entities: satellite operator Sentech and bandwidth provider Broadband Infraco. The new parastatal would probably be used to create the planned National Broadband Network Company, so the privatisation of either company now looks unlikely.

The final decision will be taken by the cabinet in December but the move seems likely, as Pretoria seeks to boost the proportion of the population with access to mobile broadband to 80 percent by 2019.

As in almost every market, any government efforts to achieve such goals have to take into account the dominant position of private companies in the sector. The director general of the Department of Telecommunications and Postal Services, Robert Nkuna, said: “We don’t want a top-heavy company, but a company that has sharp capacity to aggregate what exists in South Africa so we don’t duplicate.”

Some analysts have suggested that there is insufficient content to justify massive infrastructural investment but there is little doubt that the content will come. VOD is rapidly becoming the mainstream method of consuming social media, television and films in the industrialised world, so there is no reason to suspect that the situation will be any different in Africa.

Free services, such as YouTube, are likely to drive consumption, while even social media platforms, such as Snapchat and Facebook, are putting more focus on the use of video content.

Content bundles

With the physical infrastructure now being put in place, new video services are being launched to attract customers. In South Africa, both Telkom and Vodacom launched new video data bundles in August that allow customers to access DStv and other over-the-top services. A variety of bundles is available, covering different services, prices and download capacities.

Customers can pay for subscriptions via their mobile phone accounts. Vodacom’s managing executive for digital services, Ashraff Paruk, said: “As video on demand services grow in popularity, we will continue to explore additional content partnerships. We have now made it even easier for customers to watch their favourite shows on Showmax and DStv Now by creating specific data bundles.”

French firm Orange has offered Netflix to its customers in France for three years and has announced that it will extend it to all other countries under the Orange brand by the end of 2018. This appears to include all the African countries within which it operates, including Cameroon and Democratic Republic of Congo, although faster download speeds enabling streaming are required.

Users need a smartphone in order to use data-intensive services, so the price of smartphones will have a big impact on their ability to access VOD. While the price of iPhones and other high-profile brands remains high, much cheaper, stripped down handsets are now becoming available.

Chinese firm Huawei, which has also financed African subsea cables, sells smartphones in Africa for just $40, while a new South African firm, Onyx Connect, has started selling its low-cost model for $30 using a version of Android, making it the first African smartphone manufacturer.

These prices are fairly typical. Kenya’s three main mobile operators all have deals with manufacturers, including Tecno and Kadudu, on smartphones retailing at between $30 to $40. While faster download speeds encourage the purchase of smartphones, so too the proliferation of smartphones puts pressure on operators to upgrade the speed of connection, making the process a virtuous circle.— African Business Magazine.

Cars now come complete with emission control devices such like diesel oxidation catalysts, diesel particulate filters etc

Jeffrey Gogo Climate Story
In a bid to reduce climate-changing carbon emissions, energy regulator ZERA has outlawed use of a more toxic version of diesel called D500, replacing it with the much cleaner diesel 50 (D50).

But the immediate result was a rise in prices.

At pump, each litre of D50 costs around $1,36, compared to D500, which retails at around $1,23.

This has always been a lingering concern, working against cleaner energies, that the change must necessarily cost more?

In the past, we have seen how investors frowned upon solar power as a viable alternative for grid electricity supply due to high installation costs of the PV solar technology.

Until recently, when prices dropped from about 18c/kWh ten years ago to just 3c/kWh, according to a 2017 report by the International Energy Agency.

A switch to diesel 50 was said by ZERA to be a cheap and quick way to reduce Zimbabwe’s carbon footprint of 26 000 gigatones.

Acting chief executive Misheck Siyakatshana expects the price to correct soon, blaming the existing disparities on shipping inefficiencies.

“There is no difference in the price of D50 from the current price of D500 when D50 is imported through the (Feruka) pipeline,” Mr Siyakatshana sort to calm nerves, in emailed responses to The Herald Business.

“Diesel 50 has been imported by road (because of the smaller quantities), which is expensive,” he added.

At a cost of 6,5 cents, the pipeline costs substantially lower to move a litre of petrol or diesel, compared to road.

But the change-over to diesel 50 is only three months away, said the ZERA acting chief, at which point all diesel shipments will go through Feruka, and with it bringing the price down.

The D500 ban took effect on November 1. The switch should be complete by next March.

Cleaner option

Diesel is a huge market in Zimbabwe, accounting for almost 60 percent of all domestic liquid fuels consumption.

Diesels produces slightly more carbon than petrol, with each litre of diesel emitting the equivalent of 2,7kg of CO2. Petrol emits 2,3kg of CO2 per litre, says University of Zimbabwe climate scientist Terrence Mushore.

And diesel generates several times more nitrogen dioxide and sulphur particles — the small items blamed by the World Health Organisation for causing an array of illness when inhaled, including heart disease, lung cancer and respiratory problems.

Now this is primarily the reason ZERA is going through with the switch — to eliminate the more harmful diesel 500 and have in its place diesel 50.

“Sulphur in diesel contributes to the formation of particulate matter in engine exhaust as well as secondary particulate matter,” said Mr Siyakatshana, the acting ZERA chief executive.

“The smaller part of particulate matter called black carbon is now thought to be the second most important climate change contributor following carbon dioxide.”

Mr Siyakatshana praised diesel 50 as one that “burns cleaner”, certain to effectively limit emissions of black carbon by as much as 99 percent, if diesel filters were used on compatible, new generation engines.

Most cars now come complete with emission control devices such like diesel oxidation catalysts, diesel particulate filters, selective catalysts reduction technology, and others, but diesel 500 makes them useless.

“The performance (of emission control units) in newer vehicle models is drastically inhibited by sulphur fuels such as D500,” Mr Siyakatshana told The Herald Business.

Moving target

As economies develop, countries are now looking for better ways to do so, without harming the natural environment, or depleting its finite resources such as water and clean air.

So, to do that, world governments have agreed to implement domestic programmes that prevent the emission of gases that drive climate change, a phenomenon which has spewed deadly extreme events not limited to drought, floods, tropical cyclones and others.

The goal is to limit global temperature rise, brought on by too much production of climate warming gases like CO2 and methane, to 2 degrees Celsius in this century, according to a deal signed in 2015 by nearly 200 countries, called the Paris Agreement.

But the current levels of commitment to achieving many of the Agreement’s targets don’t go far enough. And as nations dither, continuing to expand their economies by unsustainable means, the global temperature goal continues to grow, becoming a moving target.

Aiming to cut emissions by about a third, or 17,300 gigatonnes, by 2030, Zimbabwe, through ZERA, has reported some progress.

Plans to save electricity and improve energy efficiency have been executed, with additional strategies for driving investment in solar and hydropower.

In the transport industry, which accounts for just over 4,2 percent of the national emissions total, according to data from the Climate Ministry, measures are targeted at ethanol blending, and lately diesel.

By blending petrol with ethanol, a sugarcane-derived fuel, Zimbabwe hopes to avoid the equivalent of 202 gigatonnes of carbon dioxide over the next 13 years.

ZERA’s Mr Siyakatshana believes the diesel 50 initiatives dovetails with the country’s broader plans under the Paris treaty, even though the fuel’s true emissions reduction potential remains unknown.

“The use of diesel 50 is well in line with the dictates of the National Energy Policy, which stipulates the use of low sulphur and cleaner fuels as a measure to curb outdoor pollution from the transport industry,” he said.

God is faithful.

jeffgogo@gmail.com

Business Reporter
THE continued presence of staff who participated in the botched fuel deal that prejudiced the Central Equipment Mechanical Department (CMED) of $2,7 million could scare off investors willing to partner CMED, a parliamentary portfolio committee has noted.

In its submission to Parliament, the Parliamentary Portfolio Committee on Transport and Infrastructure said the engagement of the Reserve Bank and the Ministry of Finance needed to be expedited to guarantee safe investment and policy consistency to foreign investors who are keen to partner CMED in the importation of fuel.

As such, the committee wants the RBZ and the Ministry of Finance to assure potential investors of a hassle-free return on investment. It reiterated its call for the “Fuelgate Scandal” to be urgently concluded and for all the culprits to be brought to book. The committee said it would be prudent for all those fingered in the matter to be suspended from duty pending finalisation of the case.

“The committee noted with concern that the matter of the botched fuel deal was taking too long to conclude. In addition, the fact that some of the officials involved in the fuel scam were still very much an integral part of the company’s structures did not augur well for the integrity and credibility of the organisation and was likely to put off potential investors,” the committee submitted.

The parliamentary committee said that it was concerned with the inordinate delays in the conclusion of the botched fuel deal, which had cost both the organisation and the country a staggering $2,7 million in taxpayers’ funds.

There are also grave concerns that such a serious case has taken over 3 years to finalise.

The Portfolio Committee on Transport and Infrastructural Development conducted an inquiry into the turnaround strategy for CMED. The enquiry was motivated by the realisation that most State-owned enterprises in general and CMED in particular, which were created to be self-financing cash cows for Government under the Commercialisation Act of 2000, were dismally failing in this regard.

Instead of assisting the Government in raising revenue and delivering quality service, they were repeatedly turning to Government for bailouts and thus becoming heavy liabilities on the fiscus while service delivery continued to plummet. The committee remained convinced that the CMED provides a viable means of consistent revenue generation to the Government and people of Zimbabwe.

It said Government must, as much and within the limits of the prevailing resource constraints, stagger payment of the debt to CMED per quarter to ensure that it is liquid enough to fund critical operations.

“The Ministry of Transport and Infrastructural Development must grant CMED a stake, like other local firms, in major infrastructural development projects such as the dualisation of the Beitbridge-Chirundu highway.

“The proactive initiatives that have been taken by the organisation in a bid to remain viable such as Easy Go car hire and driving school, have proven to be strategic masterstrokes which must be applauded.”

However, the committee is not convinced that sufficient structural and organisational controls have been put in place to prevent recurrence of revenue leakages exemplified by the yet to be concluded fuel scam.

Mr Mutarisi

Ishemunyoro Chingwere
PAINT manufacturing giant, Nash Paints, is stepping up efforts to enter the regional and international market on the back of getting an internationally recognised ISO certification.

The company, which also distributes automotive and decorative paints, revealed this after its executive chairman Mr Tinashe Mutarisi was awarded the Outstanding Businessman of the Year Award at the Mega Fest Annual Awards which were held last Thursday in Harare.

“We are currently working on penetrating the regional and international market starting with our investment in Zambia,” said the paint manufacturer’s chief executive officer Dr Tagarira Mutenga.

“This strategy (going international) is supported by our recent investment in enhanced production capacity and our recent certification to ISO 9001 quality management system,” he said.

Accepting the award, Mr Mutarisi said it is further testimony that his team at Nash Paints is hardworking and adhering to best industrial standards in their quest to meet consumer satisfaction and the award is proof of their service to the consumer.

“My speech will not be long but our paint will definitely last longer,” Mutarisi said as he accepted the prestigious award.

“It is an honour for us at Nash Paints to get such a prestigious award from Megafest and it obviously makes us proud as an organisation.

“It is such recognition that keeps us on the deck and as a company we will continue striving to meet the needs of our consumers,” he said.

The award came on the same night that the company was nominated among the best top 100 retailers at the Confederation of Zimbabwe Retailers (CZR) 2017 awards.

The firm is riding on a crest after it also attained the internationally recognised ISO 9000: 2008 certification in October which was described as a pedestal for an assault on the international market by the Minister of Industry, Commerce and Enterprise Development Dr Mike Bimha.

“This is a great day in the history of Nash Paints since the attainment of ISO 9000: 2008 certification is a momentous achievement in the organisation’s commitment to demonstrating your ability to consistently provide products that meet customer and applicable statutory and regulatory requirements,” said Minister Bimha of the certification.

“They (certification) also level the playing field for developing countries and facilitate free and fair global trade through benchmarking against international best practices,” he said.

The Old Mutual’s Eastgate Metro Centre for Small and Medium Enterprises under construction in Harare

Taurai Mangudhla
Prevailing cash shortages that have given rise to a five-tier pricing system are causing havoc in the construction industry with growth slowing down as projects have become expensive, an industry lobby group has said.

Construction Industry Federation of Zimbabwe (Cifoz) has said the industry’s growth has been subdued over the years due to funding challenges.

“The current liquidity challenges have impacted negatively on operations of most businesses who are failing to interface their operations with the global world,” Cifoz CEO Martin Chingaira has said.

“This has resulted in the economy adopting a five-tier pricing model ((real time gross settlement) RTGS, (point of sale) swipe, EcoCash (mobile money), bond notes and United States dollars) which is not sustainable.

Construction projects are going to be very expensive because prices of building materials are no longer determined in advance by the Built Environment Professionals. Government’s efforts to build low-cost houses is defeated,” Chingaira added.

Mr Chingaira said Government’s foreign debt is also hindering the possibility of businesses accessing funds from foreign banks. Zimbabwe’s external debt and arrears breached the $11,2 billion mark in October last year. This includes arrears to International financial institutions including the World Bank and the African Development Bank. Government has committed to clearing arrears to IFI’s of about $1,8 billion in order to unlock new funding under the Lima Plan.

Cifoz is a non-profit contractors’ association formed in 1915. It has approximately 600 members in a diversity of building, civil engineering and specialist contractor trades. Mr Chingaira’s remarks come as Zimbabwe’s property development firms are faced with a pricing crisis as the prevailing exchange rate challenges complicate their business. Companies that are yet to unveil residential projects to the market are now either considering selling the stands for cash or reducing the payment terms to a maximum of two years as opposed to the prevailing terms of deposits and clearance of balance over five to 10 years.

“Right now we have a new project which is on the market and we are selling low, medium and high density stands on flexible terms of deposits plus balance staggered over five years,” an executive with a to property development firm who requested not to be named said.

“This project has taken time to reach fruition and now the challenge is the exchange rate crisis because swipe and RTGS is no longer equivalent to the US dollar yet we have to import some equipment like graders and spares as well as pipes for water and sewer systems, steel and so on. As a result we are now just taking deposits and allocating the stands to individuals, but we have indicated the final cost is an estimate which will soon be finalised while the balance is now being considered to be repaid over a maximum of two years instead of five,” added the executive.

Rates for buying US dollars with electronic transfers or bond noes have fallen at lest 20 percent afer recent political developments from the high of 85 percent, with bond note premiums almost halving.

This has resulted in a five-tier pricing system particularly in smaller establishments.

Auckland. — The lending regulations introduced by the last government and the Reserve Bank of New Zealand over the past year have combined to adversely affect the very sector of the market that we’re trying to protect.

The outer Auckland suburbs and provincial cities, which were traditionally the domain of entry-level to middle-value homes, are where first home-buyers have borne the brunt of these new regulations through fewer listings and sales.

With a proportion of first home-buyers re-entering the market now that the new government has been finalised, and with investor-activity remaining in a flat-line state, it appears that the LVR restrictions have achieved their short-term goal of reigning in the rampant growth of a runaway housing market.

Lower mortgage lending rates over the past seven years have been a boon for those home-owners and investors who have bought during that period and have been one of the factors sustaining a huge period of growth in values.

Looking ahead to the first quarter of 2018, it’s safe to say that the four main drivers of the residential property market — desire, debt, death and divorce — will still be in play, no matter what stage of the residential property cycle. For vendors looking at selling their residential property, yes, they have missed the peak.

But there is opportunity to sell in the second-best residential property market New Zealand has seen this generation. Hold out until later next year and they may well be selling their home in the third best market seen in this generation.

CEO, Harcourts

The average house price in Auckland was $963 359 in October, an increase of 4,73 percent when compared to the same period in 2016. Meanwhile, sales dropped by 17,4 percent in October when compared to October last year, and new listings were down 1,21 percent. What that all says to me is that the market still has plenty of buyers who are prepared to spend on the right property.

It’s fair to say it has been a quiet winter, much more so than we’ve been used to over the past couple of years, but the figures for October are giving us strong signs that the spring wake-up is finally here.

It may be smaller and later than usual but there are clearly buyers out there returning good results for vendors. I think a particularly volatile election campaign and a change in Government have been at least partly responsible for some of the market fluctuations we’ve seen over the past quarter.

Now, as both buyers and sellers have processed that election result, people are easing back into the market. Finally, we have also seen a drop in the number of auctions in Auckland in October by 33,1 percent year on year. That happens because so many people believe auctions are most effective as a sales method when the market is strong.

In fact, no matter what the market is doing, an auction will always give you the best reflection of exactly where the market is and what your property is worth.

Head of Agency Operations, Ray White NZ

The third and fourth quarters of 2017 have seen a change in the real estate market, with a strong sense of caution from both buyers and sellers given the traditional election slowdown period.

In the lead-up to the election, numbers slowed across New Zealand, particularly in Auckland, with sellers electing to stay out of the market during this time.

This resulted in longer days on market for current sellers and price stabilisation in the majority of areas. Looking ahead, we will see an increase in listings. This will allow buyers to better assess pricing levels and become more active.

Current lending criteria is still restraining the first home buyer and investment market; however, we see more property being available for these purchasers, particularly outside the Auckland region.

The new government’s position on real estate is not clear; however, the current policy will restrict some foreign buyers from being able to purchase property in New Zealand. The full make-up of this policy is unknown, but it will have some effect, as will any pronounced change in the immigration level.

Wellington has a low level of stock and remains a strong sellers’ market. Canterbury is more balanced, with numbers easing back and inventory levels increasing. In the buyer’s favour, we expect no change in interest rates until late 2018.

Rental yield is holding firm and is expected to lift, which is a positive for the investment market. New compliance for rental properties may affect yield, but it is good for tenants that properties will have more liveable conditions.

Managing director, Barfoot & Thompson

The coalition government has made it clear it sees maintaining house price stability as important, and nothing it has implemented or talked about doing since the election contradicts this position.

Against this background, market conditions that have existed since this year’s second quarter — stable prices and moderate sales numbers — are unlikely to change through to the first quarter of 2018.

Auckland prices have remained stable despite the number of properties coming to market increasing, and sales numbers being lower than for the previous two years.

This combination of lower sales numbers and greater choice would normally result in falling prices, but these factors are being countered by mortgage lending rates being forecast to remain around current levels through most of 2018, and the population continuing to grow.

This growth is coming not only through external immigration but also from natural growth and the movement to Auckland from other centres. The new environment has changed the way properties are selling at auction. Far fewer now sell under the hammer with a significant number of those that are passed in selling within a week post-auction.

Bank lending restrictions are a factor in this new development, as many potential buyers are forced into being conditional buyers, entering the process only post-auction. A big plus for auctions for vendors remains the shorter sales process timeline.

I see a positive outlook for housing in 2018: sales numbers will increase while prices will show little movement. Auckland the City of Sails is becoming the City of Snails, with motorways, schools and hospitals overflowing. Many families are endeavouring to get on the housing ladder with others just managing to stay on it. The reason is the rising cost of living, with increased rates, insurance and a proposed 10c/litre petrol tax.

More listings will be generated as the cost of living tightens. Some Aucklanders will head to the regions for a more affordable lifestyle and to be debt-free. Auckland is now a buyers’ market with properties taking longer to sell and more stock available with a lack of urgency from potential buyers. LVR restrictions are still having a slowing effect, especially for first home buyers and investors.

The banks are also tightening their criteria, focusing on quality lending to reduce their exposure to risk. Some investors may choose to sell one or two or all of their rental property portfolio as changes to the Residential Tenancies Amendment Act come into effect in 2018.

This act places the onus on landlords to provide rental accommodation that is warmer, drier and safer for tenants who occupy the 500 000 rental properties across New Zealand.

Under the new act, many properties will be non-compliant. From experience, I realise many investors don’t like spending money on maintenance and repairs. This might bring investment properties to the market.

This is good for availability of listings and may be helpful for first home buyers. All in all, a healthy real estate market for realistic vendors and informed purchasers.

Unlimited Potential Real Estate

Overall market activity in the areas we serve is on the increase, although at lower volumes than previous years. There is always a surge at this time of the year; the interesting thing this time is there appears to be a multi-tiered market emerging with prime property in demand, while properties with compromises and impediments to title or construction are needing to meet the market.

When the market is on fire, everything seems to go for a premium. So things appear to be changing in that regard. The price points throughout central Auckland and the Bays are proving to be case-by-case specific.

Talk of limitations on foreign buyers has not had a major effect. There is no doubt that banking restrictions around new home buyers, investors, and the use of the bright line test have influenced overall demand. Consequently, sale volumes are down.

We note a wave of activity as baby boomers, cashing in years of capital gains, are making their next move. This demographic is becoming a large part of our business and will be for many years.

We await the proposed review of the LVR mechanism and the Reserve Bank Act and the implications around both. In the meantime, our auctions are well attended and for the most part competition remains,despite buyers’ increased caution.

We don’t see dark clouds on the horizon. Yes there is much spoken about the potential downside looming. The big picture for central Auckland and the Bays in particular: history shows fortune favours those who defy the current headlines. — NZ Herald.

CFI is banking on its strategic brands which have potential for further growth and market consolidation

Enacy Mapakame Business Reporter
Agri-industrial group CFI Holdings Limited, will soon initiate a capital raise as it seeks to fully turnaround the company whose value had whittled down on alleged irregularities and corporate governance deficiencies, major shareholder Stalap Investments has said.

In a statement, Stalap Investments an investment holding company owned by Zimre Holdings and its affiliates, said management is upbeat of a full turnaround of CFI. The company said it will soon call for a rights issue to raise funds that will be used to turnaround the company.

“The medium term plan for the group is to raise capital through a rights issue. Capital raised will be placed into production, to further capacitate the great brands and grow market share. Resuscitation of CFI subsidiaries will create and promote employment in the country. CFI is destined to have a robust future,” said Stalap.

The group is also banking on its strategic brands such as Farm and City, Agrifoods, Victoria Foods, Crest Breeders and Suncrest Chickens amongst others, which have potential for further growth and market consolidation.

“The roadmap for this has already started to take shape with the company getting back onto its feet, driven by the vision that Stalap has for the business. Farm and City and Glenara Estates are at full capacity and are profitable. Agrifoods has accessed additional working capital and will increase production,” said Stalap.

According to Stalap, Victoria Foods has already entered into a six month toll milling arrangement to take the mill out of care and maintenance. Zimbabwe’s agriculture sector is on a growth trajectory spearheaded by the Command Agriculture programme, which has already boosted production in the 2016/ 17 season.

This is also expected to cascade to other downstream industries such as manufacturing sector, which relies on agriculture for the bulk of its raw materials. In line with this, CFI also seeks to capitalise on the agriculture sector for its growth.

“CFI will remain a key player in the realisation of the nation’s agriculture production aspirations. It will take advantage of the current Government thrust to promote local production and stimulate agriculture production through the Command Agriculture Programme,” said Stalap.

Minister Moyo

Ishemunyoro Chingwere Property Reporter
Success of the Ministry of Local Government, Public Works and National Housing is premised on the establishment of a functioning system that prioritises deliverables of key national infrastructure to the populace, newly appointed Minister July Moyo has said.

The department has been pegged back by a litany of drawbacks among them a ballooning housing backlog due to a growing population and rural to urban migration. Brazen corruption and general lack of capacity within local authorities among other shortcomings have seen service delivery plummeting and the housing backlog growing to over 1 million.

Government has already pledged to provide at least 300 000 housing units under Zim-Asset by 2018 and indications are that the figure is set to be surpassed. In an interview moments after taking his oath of office at State House in Harare yesterday, Minister Moyo said his first task would be to study the current system driving the ministry before instituting corrective measures in line with President Emmerson Mnangagwa’s call to grow the economy.

“The local Government system, if it functions well, services our people, contributes to the Gross Domestic Product of the country and is the Government nearest to the people,” said Minister Moyo.

“All those are functions of a system. If you don’t have good physical planning, good governance and a system of service delivery there is no point talking about housing. If you have no water, if you have no sewage system, if you have no roads (then you can’t talk about housing). So all these are delivered through the system I talked about. As the new minister, I am going to start by studying the available system. Once I study the system and understand it, we have to work on how we ought to correct things,” he said.

Although the minister could not be drawn into discussing specific areas he will devout his energy on, hope among the populace is he will put in place a system that will deal with issues like poor service delivery from local authorities. This has in turn affected key services like the provision of clean water, efficient water reticulation system and road rehabilitation in major cities and towns.

Land barons have also taken advantage of lax systems to invade and parcel out state and council land illegally resulting in unsuspecting home seekers having their properties razed to the ground when authorities then move in to restore order. The minister will also be faced with a situation where land in and around cities and towns is fast depleting and will probably be forced to encourage investors to build skyscrapers.

There is already a Government position to start building going upwards because land as a finite resource needs to be sustainably used and reserved for future generations.

Mr Michael Chideme

Property Reporter
Property owners around the Central Business District are complying with the abatement orders that are being issued by the City of Harare in relation to health and safety standards, a council official has said. An abatement order is a directive issued by the City council to property owners instructing them to correct anomalies on or around their buildings.

“The majority of the building owners have rectified the anomalies that have been pointed to them by council,” City of Harare public relations manager Michael Chideme, said in an interview with the Property Guide.

“When a building is condemned for various reasons an abatement order is issued to the owner for them to take corrective measures. A building can be condemned because it has lost its painting, it may not have fire extinguishing equipment or even because the staircase is not functional.

“Once we issue abatement orders the owners of the building rectify the anomalies and the building continues to be in use so you see its things that can be corrected and the majority of the owners have corrected the anomalies,” he said

The City of Harare in the past years launched a blitz that condemned various buildings for flouting health and fire safety standards. Council declared several high-rise buildings unsafe or unfit for human use.

Some of the buildings, which were condemned include Robin House, Dublin House, Daventry House, Stewart and Lloyds, Bush House, Roslin House, Msasa House, Mahachi Quardum Building and Winston House.

Council could, however, not give an exact figure of how many buildings had been condemned because owners were correcting anomalies frequently and buildings remain functional.

“We can’t have an exact figure because these are things that happen every day and anomalies are corrected every day. For example if you move around First Street you will see that there are a number of buildings were corrective measures are being done so you can’t really say we have condemned so many buildings.

President Filipe Nyusi

Mozambican company Cahora Bassa Hydroelectric (HCB) will use the money from the sale of part of its shares for the replacement and upgrading of equipment as well as expanding its business base, the company said on Friday.

HCB indicated its intended use of the proceeds of its share sell-off at a press conference on the details of the placing of 7.5 percent of the Mozambican state’s shares in the venture, announced on Monday by Mozambican President Filipe Nyusi.

President Nyusi announced last Monday that the Mozambican state would sell 7.5 percent of its 92.5 percent Cahora Bassa stake on the Mozambican stock market (BVM), in order to allow Mozambicans to enter the venture. The sale will leave the Mozambican state owning 85 percent of the dam, with Portugal’s Redes Energéticas Nacionais (REN) continuing to hold 7.5 percent.

“The amount raised by the shares’ sale will be put to several uses, the immediate priority being the replacement and modernisation of the existing generators,” HCB financial manager Manuel Gameiro said.

Some HCB equipment has been in use for 40 years and needs replacement or refurbishment, he said. HCB is expected to place 7.5 percent of its shares on the Mozambique Stock Exchange (BVM) within four to five months, and anticipates strong demand for the securities because of its robustness, Gamerio said.

“There are legal, economic and market requirements that make it difficult or premature at this stage to pinpoint an exact date, but what we are estimating, based on similar processes, is that it takes about four to five months,” he said.

Addressing expected demand, Gameiro said: “HCB is currently a unique company in the energy sector, with a strong balance sheet and positive financial returns year after year. It is also virtually free of debt.”

He would not however be drawn on an expected share price.

“At this moment, we are in the first stage of this process, which is the structuring of the operation, where we will determine the prices and the conditions of allocation of shares,” said Gamerio. — New Ziana.

Simba Chikore

Business Reporter
NATIONAL airliner, Air Zimbabwe (Private) Limited, is hunting for a new chief operating officer (COO) to replace Simba Chikore, who resigned from November 1.

Mr Chikore, who joined Air Zimbabwe on October 5, 2016, left the parastatal to negotiate the coming in of Zimbabwe Airways. Zimbabwe Airways is a new airline owned largely by Zimbabweans in the Diaspora through an investment vehicle called Zimbabwe Aviation Leasing Company.

Once the negotiations to bring in the new airline succeed, Zimbabwe Airways can recruit Mr Chikore, if it believes he can help the company attain its objectives and fulfill its vision. Yesterday, Air Zimbabwe said it was looking for a new COO, and the candidate should possess “aviation industry professional qualifications”.

The person to replace Mr Chikore should also have “10 years recent and direct relevant experience in the airline industry” and “conversant with Caaz (Civil Aviation Authority of Zimbabwe) and ESA regulatory framework”.

Other requisites for the job include a “proven record of five years successful operational management experience in one or more of these specific areas: flight operations, commercial planning, regulatory compliance, ground”.

Transport and Infrastructure Development Minister Dr Jorum Gumbo, told The Herald Business last week that Mr Chikore left Air Zimbabwe amicably after giving three months’ notice.

“(Mr) Simba (Chikore) resigned in September and the fact that he has been working up to November is because he had given three months’ notice. Effectively, he resigned from November 1 because by that time, his involvement in negotiating the Zimbabwe Airways deal was affecting his functions at Air Zimbabwe,” said Dr Gumbo.

He added that Mr Chikore became part of the negotiations for the Zimbabwe Airways project since it was initiated by the Transport ministry.

“It is not only (Mr) Simba (Chikore) who was part of the negotiations, but there are other Air Zimbabwe employees such as engineers and others who have also been assisting from Caaz (Civil Aviation Authority of Zimbabwe), and so forth. But I had made him the chief negotiator because of his expertise in the aviation industry.

“I then agreed that since he was having problems assisting Zimbabwe Aviation Leasing Company to negotiate and also with Air Zimbabwe, he should focus on one thing. So he resigned well in time, and what is wrong with that? I actually asked him to assist Zimbabwe Aviation Leasing Company and they can make their own considerations to give him a job when everything is set,” said Dr Gumbo.

Apart from the COO, Air Zimbabwe is also looking to employ a captain, communications officer, programmer, systems analyst and database administrator. Applications to fill in the vacancies are wanted by December 8. It could not be established when the airline would replace its CEO, Captain Ripton Muzenda, who was sacked recently.

Cpt Muzenda was sacked for allegedly failing to implement programmes proposed by the Air Zimbabwe board such as retrenching almost 300 employees to reduce operating costs. Dr Gumbo said there was nothing amiss in having employees sacked for poor performance, adding that Air Zimbabwe will soon replace Cpt Muzenda.

With the new Estate law in place every trust account will be administered by registered people only

Livingstone Marufu
All trust accounts are now subjected to yearly audits under the newly gazetted Estate Administrators Act of November 21, 2017. This was done to ensure depositors’ money is not misused or abused by the trustees.

A trust account is an account in which a bank or trust company (acting as an authorised custodian) holds funds for specific purposes such as to pay property taxes and/or insurance premiums associated with a mortgaged property.

Over the years, though the trust accounts were run and maintained by registered persons, it was only in principle as some unregistered people also executed the duties. However, with the new law in place every trust account can be administered by registered people only.

Part of the Estate Administration Act reads; “A registered person shall, at least once in every year, cause his trust account and books of that account kept in terms of paragraph (b) of section thirty-three to be examined by an auditor who is registered in terms of the Public Accountants and Auditors Act [Chapter 27:12].

“And shall at such time or times as may be prescribed submit to the Council a report from such auditor in the prescribed form relating to his trust account.”

A trustee, which is always a registered person, is expected to open and keep a separate trust account at a bank registered in terms of the Banking Act [Chapter 24:01] in which he shall, within six days of receiving them, deposit all moneys held or received by him on account of any person in the course of his business as an estate administrator.

Failure to do so he or she may be investigated into. Provided that, in addition to any trust account a registered person may open and keep a trust account bearing interest at a bank or building society or with an institution approved by the Council for the purposes of this proviso in which he may, unless otherwise instructed by the person.

Proper books of account containing particulars and information as to moneys received, held or paid by him for or on account of any person and as to any interest earned by moneys in an account, which are payable to any such person.

The Council may at its own expense appoint an auditor registered in terms of the Public Accountants and Auditors Act [Chapter 27:12] to inspect, at any time it thinks fit, the books of account of any registered person in order to ascertain that the requirements of this Part and any relevant rules are being observed.

Such auditor shall report to the Council in such general terms as not to disclose confidential information entrusted to the person whose books of account he has inspected.

If it is found from an inspection by an auditor appointed in terms of this subsection that the registered person has not complied with any provision of any relevant rules, the Council shall be entitled to recover the cost of the inspection from that person. Under the law trust account moneys are excluded from insolvency or attachment.

An amount standing to the credit of a trust account kept by a registered person in terms of this shall not be regarded as forming part of his assets on his death or insolvency or on the assignment of his estate.

On control of operation of trust account, upon application made by the Council and upon good cause being shown, the High Court or a judge in chambers may prohibit a registered person from operating in any way on his trust account and may appoint a curator bonis to control and administer the trust account with such rights, duties and powers in relation thereto as the High Court or judge, as the case may be, may think fit.

Upon the death or insolvency of a registered person the Master of the High Court may, upon application made by the Council or by any person having an interest in the trust account of such person, appoint a curator bonis to control and administer such trust.

A bank at which a person keeps a trust account in terms of section thirty-three shall not, by reason only of the name or style by which the account is distinguished, be deemed to have knowledge that that person is not entitled absolutely to all moneys paid or credited to the said account.

Any person who shall be guilty of an offence of misusing the trust accounts are liable to a fine or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.

Farmers have started planting for the upcoming season

Livingstone Marufu
Zimbabwe has earned $827,4 million from 166,6 million kilogrammes of tobacco exported mainly to South Africa and China since the beginning of 2017. Statistics from the Tobacco Industry Marketing Board’s latest weekly bulletin show that China accounted for over 56,3 million kg valued at $440,9 million while South Africa bought 20,9 million kg for $64,1 million.

With an estimated 350 million smokers, China has been spending over $200 million yearly on Zimbabwean tobacco. Part of the TIMB weekly bulletin reads: “As of October 27, 166,6 million kg were exported to 62 countries so far, generating $827,4 million into the local economy.

“During the same period last year tobacco exports generated $771,8 million from 136,8 million kg. The golden leaf is presently being exported to these countries at an average price of $4,96 a kg compared to $5,57 (in) the same period last year.”

Belgium has so far bought 19,8 million kg worth $59,97 million (average price of $3,02/kg), followed by Indonesia, which has spent $37,8 million on 9,04 million kg, while United Arab Emirates stands at 7,6 million kg worth $14,8 million. Other buyers include Russia, Bulgaria, Vietnam, Hong Kong, France, Netherlands, Germany, Holland, Sudan, Spain and Tanzania.

Last year tobacco exports topped $933 million, which was a marginal surge from $855 million from the previous season. During the 2017 marketing season, farmers sold 189 million kilogrammes of flue-cured tobacco, with contract farmers contributing most of the deliveries at 158 million kg, while self-financed farmers weighed in with 31 million kg.

Meanwhile, farmers have already started planting for the upcoming season. Manicaland Province is now the leading province in terms of the hectarage that has been put under flue-cured tobacco, having 10 227 hectares under the cash crop out of the 30 719 ha planted countrywide.

The TIMB bulletin showed that the 30 719ha of tobacco planted throughout the country is a 0,9 percent increase from the 29 701 ha planted in the same period last year. Given that the rains have fallen, more dry land tobacco farmers have planted and some are still planting.

Many tobacco farmers are under contract farming where beneficiaries often access inputs such as fertilisers and chemicals timely. Some contracts even cover labour costs.

Government has put in place $28 million tobacco kitty, which will ensure that the tobacco auction system remains in place as the domination of the contract system will entirely affect the tobacco sector through manipulation of the system as what happened to the cotton sector.

Tobacco registrations for the 2017 /8 season rose 36 percent to 99 448 from 73 340 last season. This shows a high appetite of growing the golden leaf among farmers. Tobacco is the country’s highest foreign currency earner followed by gold.

The central bank is considering opening the auctions floors early in a bid to ease foreign currency pressure Zimbabwe is experiencing. The Reserve Bank of Zimbabwe (RBZ) also introduced 12 percent export incentive to promote export oriented production.

President Mnangagwa

Ishemunyoro Chingwere and Michael Tome
The need to grow the economy which is one of President Emmerson Mnangagwa’s major thrust, has cascaded down to members of the Cabinet with ministers appointed to economic ministries yesterday saying they will strive to achieve growth in their respective portfolios.

From his inauguration speech, President Mnangagwa has been consistent that the need to revive the economy will drive his presidency and in a brief chat with journalists after swearing in ministers yesterday morning, the president reiterated the need to focus on the economy.

“It has been hectic, but I believe that my team will stand the challenge,” said the President when asked about his first few days in office. I want them (Zimbabweans) united (and) we must grow our economy,” he said.

His message has rubbed onto his ministers with those appointed to economic portfolios all speaking the language of growth. Tourism and Hospitality Industry Minister Priscah Mupfumira, said she will work to promote brand Zimbabwe and boost arrivals. The largely perception driven industry last year earned the country $890 million after registering 2, 1 million tourist up from 2, 06 million in 2015.

Minister Mupfumira

“Tourism is a key contributor to the economy,” said Minister Mupfumira, “So for me the first thing is about brand Zimbabwe, marketing the brand, making sure that we attract as many tourists as possible and grow the sector’s contribution to Government revenue.”

Lands, Agriculture, and Rural Resettlement Minister Air Marshal Perrance Shiri, who last year led the technical implementation team for the hugely successful Special Maize Import Substitution Programme or Command Agriculture programme, said he will champion productivity on the farms.

“In terms of Agriculture, we have to ensure there is production, all land has to be fully utilised and apart from fully utilising the land, we want productivity to be increased really. We realise that we contribute a lot towards the GDP (Gross Domestic Product) of the country, wealthy creation in the country and foreign currency earning and we just have to leave up to the expectation of the nation,” said Minister Shiri.

Finance and Economic Development Deputy Minister Terrence Mukupe, said key to growth will be cutting Government expenditure.

“It’s clear when you talk to everyone on the streets the very first thing we really have to do as government is to live within our means, time for extravagancy is over. We have been spending most of our money on recurrent expenditure (and) we really need to take a good look at that recurrent expenditure and go through all the expense lines item by item to make sure that there is no wastage,” said the Deputy Minister.

Minister Mukupe

Mines and Mining Development Minister Winston Chitando, who has vast mining experience in the private sector, said while he is not in a position to spell out his strategy as yet, he will however, be guided by the need to grow the sector’s contribution to the economy.

The mining industry last year managed $2 billion exports and Government has this year set a $3 billion target for the sector. However, there have been concerns with a lack of upstream investment with business largely concentrated in the extractive sector.

“I haven’t been even to the office but all I can say is I look forward to being part of the process of growing our mining industry for the benefit of the economy,” said Minister Chitando.

Having served in relatively the same portfolio in former President Mugabe’s Government, Industry, Commerce and Enterprise Development Minister Dr Mike Bimha, said he will now need to make sure his thrust is in sync with President Mnangagwa’s.

“We need to revisit our strategy as a ministry in line with the thrust that has been given by His Excellency the President. In his inauguration speech he had a number of areas that he would want us to focus on,” said Minister Bimha.

“The issue of job creation, the issue of resuscitating industry and developing new industries these are areas we will continue, as we move forward, (to focus on) to drive the industrialisation agenda,” he said.

Transport and Infrastructural Development Minister Joram Gumbo, Gieger International Chairman Mr Erik Geiger (left) and China Harbour Engineering Company Ltd representative Mr Vincent Wang sign a framework agreement for the rehabilitation and dualisation of the Beitbridge-Harare –Chirundu highway in August last year

Taurai Mangudhla
The Parliamentary Portfolio Committee on Transport and Infrastructure Development has launched a probe into delays by Austrian firm, Geiger International, to start work on the Harare – Beitbridge Highway dualisation project, six months after a ground-breaking ceremony was held.

Committee chairman Mr Dexter Nduna, yesterday said they have demanded to be furnished with agreements between the contractor and Government, as part of a fact finding mission ahead of recommendations that are expected to guide the implementation of the key infrastructure project.

“We have also requested that they bring in the agreement that they went into with the Government of Zimbabwe and the Ministry of Transport (and Infrastructure Development) in particular on the day that they appear,” Mr Nduna told journalists after Geiger snubbed an invitation to give oral evidence on the progress of the project yesterday.

He said Geiger officials had indicated to Parliament, through unofficial means, that their country representative was in Hong Kong and therefore had failed to attend the portfolio committee.

The committee has rescheduled the session to December 11. Mr Nduna said if Geiger fails to attend the session, it will be charged with contempt of Parliament. He said his committee is currently not aware of the details of the agreements entered into between the contractor and Government.

“We need the agreement so that we unpack it. In the same vein, I have asked the Ministry of Transport to give us the agreement with Group Five because we believe in the Plumtree-Harare-Mutare highway is embedded a clause that speaks to and about the equipment that was used on the highway project.

“It is the belief of the committee that something has gone dangerously wrong; the train has gone off the railway as it relates to the distribution and onward transmission of the equipment that was used. We have asked that agreement comes to Parliament so that we can now bring in Group Five so that they answer,” said Mr Nduna.

The probe by Parliament comes as work on the Beitbridge dualisation project has stalled despite initial plans to have commenced construction in April 2016.

Dates were shifted to October 2017 but nothing is yet to materialise. As reported earlier by our sister publication, Business Weekly, the project was yet to take off amid claims Government had not given tax concessions to the company through a Statutory Instrument.

However, the Ministry of Finance said all was in order as the deal had been granted national project status, giving it free duty on capital equipment and special taxes on expatriate labour.

Dr Sanderson Abel
Recent changes in technology and the push for the wider use of plastic money have made our lives much easier and better, especially with respect to using these financial technologies in our day to day commerce.

However, the increasing usage of card based and internet based e commerce systems also open up new frontiers of challenges for the consumers and banks.

Such fraud is a continuing and present danger that can catch anyone unawares. Customers must understand that the security of their bank account is placed at great risk each time one purchases goods via the internet on insecure web sites using their debit or credit card credentials.

Scamsters and tricksters continue to invent new and sophisticated ways of taking away other people’s hard earned money. There are hazards and risks that come along with new technology.

Luckily for the banking customer, these modern payment channels have many inbuilt safeguards to help customers to transact securely over the internet or via point of sale terminals.

However, tricksters will try exploit loopholes and other clever scams to get customer credentials. Security breaches thus can occur, usually after clients are unwittingly tricked into divulging certain information about their credentials to criminal.

It is therefore important that this week, that we share a few easy tips on how to avoid being scammed in this modern world of e-commerce and plastic money. The following constitute some tips to avoid Mobile (M-Commerce) Scams.

Do not follow links sent to you via e mail

You should never follow a banking link sent to you in a text message on your phone or device or via e-mail. These links could potentially lead you to “spoofed” or fake Web-sites.

Entering your information into such a site, usually means you will just have handed over your secret data to thieves. Good practice requires you to navigate to a Bank Web site directly by entering your bank’s Web address into your phone browser and bookmarking it.

This will help you avoid bogus Web sites. However, when you do this also make sure your passwords are not saved on the browser, in case your phone or computer device is stolen.

 Avoid doing banking while on public networks

Many mobile devices allow you to connect to different types of networks, including open Wi-Fi networks. Always make sure you are not connected to a shared public network before logging onto your account.

Most public connections are not very secure and some places that offer a public Wi-Fi hotspots will warn users not to share sensitive information over these networks.

It is recommended to use your official bank’s Application Interface (APP) wherever possible. In general, these apps tend to be more secure than sending information by SMS message or e-mail. Most banks go to great lengths to make sure any information sent across a network using their App is encrypted to a high level.

Be careful of what you download from the internet

Be careful when downloading unknown apps. Take precautions when updating your banks app. Do a little research before you download that next widget or game onto your phone, iPad or laptop to make sure the app developer has a good reputation. Using stolen phones or “jailbroken” smartphones or using “side-loaded” software on your phone could leave your data exposed.

Keep track of your mobile device

The reason why mobile banking is becoming so popular is because mobile devices are easy to carry around everywhere we go. But this also poses a big risk if you happen to lose it or if it gets stolen.

The device can contain everything from passwords to contact lists to your calendar appointments. Such information can be dangerous if your mobile device falls into the wrong hands.

If your device has a digital locking mechanism, you should use it. Some devices require you to trace a pattern or insert a PIN.

While it might slow you down to have to enter a PIN each time you want to use your phone, that layer of security might be enough to keep a thief from accessing your bank account before you can report your phone as missing.

Most phones can be traced when lost if you have activated a tracker on your phone.

Sign up for mobile alerts

Mobile alerts enable the bank to notify you via SMS or short email message whenever a transaction has gone through your account. It is advisable to register and make use of Mobile banking alerts as they offer the following advantages:

• You know when transactions and direct deposits or withdrawals are posted to your account
• You know about changes to your account
• You know about irregular activity on your account as soon as it happens

In the meantime, we would encourage all members of the banking public to seek the advice of their bankers, whenever they are unsure about a certain transaction or service that uses technology.

•  Dr 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.

1. What is a pension?
It is a type of insurance against old age. It is a stream of income that is paid usually when one attains retirement age, but it can also be paid to a child till they are above 18 years of age. Widows and widowers may also receive pension on the death of a spouse.

2. What is a pension scheme?

It is a type of savings plan to help you save money for post-retirement life. It is an arrangement under which persons are entitled to benefits upon retirement, death or termination of employment or upon the occurrence of such events as specified in the law or the document establishing the pension scheme .It has favourable tax treatment compared to other forms of savings.

3. Why should I contribute to a pension scheme?

The main reason for a pension scheme is to save for retirement, but as a social protection instrument a pension scheme also offers benefits when one loses employment as a result of ill health, death or just decides to take up other activities.

4. Who manages a pension scheme?

The Board of Trustees is the one responsible for the management and control function of the scheme. Trustees appoint fund managers, administrators or qualified individuals to perform the duties of a fund manager and administrator.

5. How secure are pension investments?

Trustees and their agents (fund manager and administrator) are required by law to ensure that investments are only made in secure and profitable investments. Therefore, if the trustees follow the law, pension investments are secure.

6. How do I know if my parents are in pensionable employment?

Pension schemes give their members handbooks or members’ cards, so they need to show you the card.

7. I am over 55 and still working. Can deductions still be made on my salary?

It depends with the rules of a particular fund. If the rules allow that after pensionable age deductions be made towards pension, then those rules are applied or else deductions are stopped.

8. I am over 55 and still working. Can I take money out of my pension?

It depends with the rules of a fund .If the pensionable age is 55, then you can get your pension.

9. I have worked for different companies over the years.

i. How can I track down pensions I might have?

If you are aware who the fund administrators were, you can go to them and ask about your pension. If you do not know who the fund administrator is, you can go to your former employers and inquire about the administrator.

ii. Is it possible to transfer my pension from one administrator to another?

Yes it is possible. You communicate your intention with your former administrator and it can be done and documentation of transactions is traceable for future reference.

10. I have several pensions each from different employers is it possible to put all the accumulations into one pool?

Yes it’s possible.

You communicate your intentions with the fund administrators involved so that transactions can be done and all documents involved in the transactions are traceable for future reference.

11. If I cash out my pension pot how much tax will I pay?

The accumulation history is taken to ZIMRA and then ZIMRA gives a tax directive that determines how much is taxed from a pension.

12. What happens if my company goes bankrupt?

If a company goes bankrupt it can apply to IPEC and indicate that it is no longer able to remit towards pensions for its employees.

The Commission will request for financial statements from the fund administrator, which indicates the arrears that are due to the fund by the sponsoring employer and from these analysis statements, the Commission will pass a decision whether to dissolve the fund or not.

13. When I get retrenched,

can I claim my pension?

Yes, when one is retrenched they can claim their full pension.

The other conditions under which you can claim your pensions is:

When you have reached normal retirement age as per the rules of your pension fund;

When you have resigned or have been dismissed; (you only receive your own contributions while the employer contributions are preserved until you reach retirement age or upon your death)

When you have retired early;

When you leave employment for medical reasons; and

When the fund member has died, and you are a beneficiary.

We also have a radio programme, “Inside Insurance and Pensions” on Star FM radio station every Wednesday from 7:30pm-8:00pm.

•  For any enquiries on insurance and pensions, please contact us on the following details: 160 Rhodesville Avenue, Greendale, Harare; Tel: (04) 443358 /443361 /443322; Cell: 0772 154 281 / 2 /3 /4; WhatsApp: 0772 154 281; Email: enquiry@ipec.co.zw; Facebook: Insurance and Pensions Commission; Twitter: @IPECZW; Website: www.ipec.co.zw

Business Reporter
VIVO Energy Holding B.V. this week entered into a share transaction with Engen Holdings Limited in a transaction that should see Vivo expand to Zimbabwe and eight other African countries.

The transaction is in relation to the purchase of shares in Engen International Holdings for the exchange of shareholding in Vivo Energy, with a possible cash element and subject to regulatory approval. Vivo is currently present in 15 African countries and the transaction will have its market share increase to 24 countries.

The new markets for Vivo included in the transaction are Democratic Republic of Congo (DRC), Zimbabwe, Réunion, Zambia, Gabon, Rwanda, Mozambique, Tanzania and Malawi. Engen’s Kenya operations -where Vivo Energy already operates- are also part of this transaction.

“Upon completion of this transaction, nine new countries and over 300 Engen – branded service stations will be added to Vivo Energy’s network, taking Vivo Energy’s total presence to over 2,100 service stations, across 24 African markets,” said Vivo in a statement.

Engen Holdings Limited will retain its interest in Engen Petroleum Limited — the South African business and refinery — and Engen’s business in Mauritius, Botswana, Ghana, Namibia, Swaziland and Lesotho which are not part of the transaction.

Vivo Energy chief executive officer Christian Chamma said: “In our first six years our shareholders have invested to grow Vivo Energy, increasing our network from around 1,300 to over 1,800 service stations and adding over 400 new and refurbished shops and quick service restaurant offers.

“I am delighted with today’s agreement with Engen which, subject to regulatory approval, will add a number of new African markets to our business so that we can offer high quality products and services to significantly more customers.”

Engen managing director Yusa Hassan, said the transaction was aligned with the firm’s growth aspirations in Africa and would build on each other’s strengths from the collaboration.

With over 1 800 service stations across 15 African markets Vivo Energy sources, distribute, market and supply Shell-branded fuels and lubricants to retail and commercial customers across the continent. Vivo Energy is jointly owned by the energy and commodities company Vitol and the Africa-focused private investment firm Helios Investment Partners.

The Mozambican government has been implementing various strategies to deal with the bird flu situation

Maputo . — The southern parts of Mozambique will experience a shortage of eggs during the festive season as a result of the bird flu epidemic in South Africa, the government said on Monday. 

Domestic Trade national director Zulmira Macamo, however, said there were sufficient stocks of food and drink for that period of the year. Macamo was addressing the media on levels of availability of food and beverage products in the run-up to the festive season.

“The bird flu in South Africa has led to many laying hens being slaughtered, and production levels have fallen,” she said, adding that central and northern parts of the country would not be affected.

She said the Mozambican government had been implementing various strategies to deal with the situation.

“We have been reducing reference prices. Before, it cost R140,00, but at the moment we have reduced that to R100,00,” she said.

Buyers for chicken producers such as Moz Farms and Higest have secured sufficient stock to feed the national markets, having bought 500 and 400 tonnes of chicken respectively. At least 400 000 tonnes of potatoes, 34 000 tonnes of onions, 46 000 tonnes of tomatoes and an equal number of cabbages have been stockpiled for the festive season.

As for alcoholic beverages and soft drinks, Coca-Cola and Cervejas de Moçambique (CDM) have more than one million boxes of these products ready for delivery. Other players in the staple food production chain such as MIREC and SASSEKA also secured adequate products, including rice, horse mackerel, pasta, wheat, cornmeal and crackers, for the Christmas and New Year period. — New Ziana.

The satellite technology will allow wardens, vets and specialists in game parks to access readouts of the movements of the animals three times a day

Business Reporter
Zimbabwe’s rhino population and anti-poaching programmes will benefit from Sigfox Foundation’s initiatives, which target to attach satellite devices on 3 000 rhinos across the Southern Africa region under the “Now Rhinos Speak” project. Sigfox is working with Eutelsat, a French based satellite operator, who is providing satellite capacity to collect data in the fight against poaching of the depleting rhino population.

According to Save the Rhino, post 2010 was the region’s worst period in which the highest number of rhinos were poached. Kenya lost 59 animals or 5 percent of national rhino population. Zimbabwe lost at least 50 rhinos to poaching in 2015, which was more than double the previous year and Namibia lost 80 in 2012.

But the satellite technology used allows implementation of remote tracking solution for rhinos that uses GPS sensors fitted on the horn of each animal to send positioning data to secure on line platform via the satellite.

“All the countries in Africa are now under threat. The illegal horn market is more evaluated than cocaine market,” said Sigfox Foundation general manager Marion Moreau, via email. The technology will allow wardens, vets and specialists in game parks to access readouts of the movements of the animals three times a day.

“Having the exact positions continuously is very important and we could expect to produce an alert when the animal is taking risk, for instance moving close to the fences. It is easy to use and we are testing it,” she said.

Prior partnership, Eutelsat and Sigfox have collaborated since November 2016 on an initial operation in Southern Africa connecting approximately ten animals which improved the identification of location of areas of surveillance and refined allocation of resources for protection on the ground.

Now the two organisation are targeting 3 000 rhinos in the next three years. Research shows that in just a decade, more than 7 245 African rhinos have been lost to poaching.

“By tracking the animals, we can protect them from poachers and better understand their habits to encourage them to breed and ultimately conserve the species,” said Moreau.

According to WWF, the majority of white rhinos are in four countries, Zimbabwe, South Africa, Kenya and Namibia but the northern white rhinos and southern white rhinos are genetically distinct subspecies and are found in two different regions in Africa.

Save the Rhino estimates that there were half a million rhinos across Africa and Asia at the beginning of the 20th century, which has since dwindled to 29 000 living in the wild, according to the group.

“But we know that Zimbabwe has led very good initiatives in the past to face conflicts and protect its rhinos population. We aim to help and make our best efforts to upgrade that,” said Moreau.