U.S. stock futures pointed to a higher opening for Wall Street on Friday, helped by gains for global stock markets after Britain secured EU agreement to move on from the first-round of Brexit negotiations.

Any trace of concerns of a federal government shutdown was erased for the moment after the U.S. Congress sent a short-term funding bill to President Donald Trump but left fights over budget priorities and a range of other controversial issues for the coming weeks.

White House legislative affairs director Marc Short said in an interview to Reuters that Trump wanted a corporate tax rate of 20 percent in the rate cut package being debated in Congress despite the president saying recently that it could end up higher.

Oil prices edged up, helped by rising Chinese crude demand and threats of a strike in Africa’s largest oil exporter. O/R The main monthly reading of the U.S. labor market’s health is expected to show job growth increased at a strong clip in November and wages rebounded as the distortions from this year’s hurricanes faded.

Nonfarm payrolls are predicted to have increased by 200 000 jobs in November after surging 261 000 in October, while the unemployment rate is expected to stay at 4,1 percent. The report is due at 8:30 a.m. ET (1330 GMT). Expectations for another rise in Federal Reserve interest rates on Dec. 13 are now set firm, but the numbers will help shape the debate on monetary policy next year.

U.S.-listed shares of European banks Credit Suisse , Deutcshe Bank , ING GroepI and Banco Santander were all also up by between 2 percent and 4 percent after a long-sought revision to Basel III regulatory norms was published. Shares of American Outdoor Brands slumped about 19 percent after Smith & Wesson fire arms maker provided a disappointing earnings forecast.

Alexion Pharmaceuticals rose 5 percent in thin trading after the New York Times reported hedge fund Elliott Management is urging the company to take more action to boost its stock price, including exploring a sale. Dow e-minis 1YMc1 were up 30 points, or 0,12 percent, with 12,609 contracts changing hands.

S&P 500 e-minis ESc1 were up 4,5 points, or 0,17 percent, with 91,439 contracts traded. Nasdaq 100 e-minis NQc1 were up 25,75 points, or 0,41 percent, on volume of 17,971 contracts.

LONDON – European stocks rallied to a week’s high on Friday as Britain and the European Union announced a breakthrough in Brexit negotiations and new global banking regulations appeared kinder to European banks than had been expected.

The European Commission said enough progress had been made after it worked through the night with the UK to end an impasse over the status of the Irish border, which had scuppered an earlier attempt to clinch a deal on Monday.

Financials lifted the pan-European Stoxx 600 0,8 percent by 0923 GMT, with the banking index .SX7P up 2,6 percent at a five-week high. Among the top gainers were ABN Amro, up 5,7 percent; Lloyds, up 4,5 percent and Danske Bank, up 4,4 percent.

Policymakers announced a compromise late on Thursday on rules forcing banks to hold more capital and cash, capping a decade of efforts to make banks more resilient and avoid a repeat of the 2008 financial crash. The rules will only come into full force by the start of 2027, and local supervisors will have the power to mitigate the impact of the new measures during the phase-in period.

“This appears to be a far better outcome than we and the market had feared,” wrote Citi analyst Simon Nellis, keeping his “overweight” rating on European banks.

“This is a big positive for all European banks, which should now be able to quantify excess capital and M&A budgets in due course, with Benelux, French and Nordic banks best placed to benefit from this announcement.” Britain’s export-oriented FTSE lagged its continental peers, up just 0.2 percent, as the pound rose on the Brexit breakthrough.

The more dramatic European share moves came again from accounting scandal-hit furniture retailer Steinhoff, which plunged another 41 percent after Moody’s downgraded it to junk before bouncing back to trade 5,7 percent higher, still down 81 percent on the week.

“The shares are a pure gamble now,” said one Frankfurt-based trader. “Nobody knows what’s going on at Steinhoff at the moment.” UK builder Berkeley Group was the top European gainer, up 8,5 percent after it raised its profit guidance for the next five years. Reuters

Zimasco, has started making efforts towards liquidating debt owed to various creditors while a scheme of arrangement is in the pipeline

Munyaradzi Musiiwa Midlands Bureau
KWEKWE based chrome smelting company, Zimbabwe Mining and Smelting Company (Zimasco), has agreed on a scheme of arrangement with its creditors and is set to be removed from judicial management next month. This comes after Zimasco made a turnover of more than $ 158 million within the past 16 months.

A scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors. It may affect mergers and amalgamations and may alter shareholder or creditor rights. In an interview, Zimasco Judicial Manager, Mr Reggie Saruchera of Grant Thornton International, said once the largest ferrochrome producer in the country and a force to reckon with in Africa would be weaned next month after being incubated for close to two years under judicial management.

Zimasco last week invited creditors to deliberate on the scheme of arrangement, which was then passed unanimously. The scheme of arrangement is expected to reschedule the debt and free up some space for capital and recurrent expenditure.

“We recently had a meeting with Zimasco creditors to discuss the scheme of arrangement. They voted in favour of it. The company will be standing alone by end of next month and will no longer be under judicial management. We are just waiting for a handover take over,” he said.

Mr Saruchera said Zimasco had posted a profit of more than $ 45 million over a period of 16 months. Since the beginning of the year Zimasco has contributed more than $ 103 million of the country’s total chrome proceeds.

“We are happy to announce that we have managed to turn around Zimasco during the first 16 months of judicial management. Zimasco has made a turnover of more than $ 158 million and a profit of more than $ 45 million,” said Mr Saruchera.

Zimasco, which is rising from a debt overhang that had buried the group for years and currently under judicial management, has started making efforts towards liquidating debt owed to various creditors while a scheme of arrangement is in the pipeline.

Zimaso owed a total of $144 936 691 to creditors including $21 780 307 to Sinosteel Singapore (in liquidation), $11 350 142 to Sinosteel International and $3 309 850 to the National Social Security Authority, pension funds and NEC. Zimasco owes $34 738 364 to financial institutions, $7 295 513 for retrenchment packages, $2 787 316 towards salaries and wages arrears (three months), among other creditors.

For some debts the company considered rescheduling and repaying over 6,5 years with some over 18 months. These negotiations have been going on and the company expects that a scheme of arrangement could be in place later this month. Zimasco, an integrated ferrochrome producer with chromite mining locations in Shurugwi, Guinea Fowl, Lalapanzi, Mutorashanga and tributor operations along the Great Dyke, has been in the doldrums for the past decade bedevilled but is seeing a turn of fortunes.

More than $85 million has been allocated for the three sectors – environment, water and climate – next year, up from $40 million in 2017, he said

Climate Story Jeffrey Gogo
FINANCE Minister Patrick Chinamasa has doubled public spending for the environment, water and climate sectors, in a key move aimed at tackling the expanding, dangerous impacts of climate change.

The Ministry of Environment, Water and Climate will next year spend 114 percent more than it did this year, Mr Chinamasa said in the 2018 Budget Statement, after seeing a series of devastating extreme events that until this year’s bumper harvest, had cut food production badly.

More than $85 million has been allocated for the three sectors next year, up from $40 million in 2017, he said. Since 2012, Mr Chinamasa has progressively cut spending across most line ministries, as public coffers ran dry.

The environment and climate portfolio has suffered some of the deepest cuts. As a percentage of total Government expenditure, spending for the portfolio has consistently declined, falling one percent this year from 2,5 percent in 2012.

However, for 2018, the figure rises to 1,5 percent. New path This is President Emmerson Mnangagwa’s first Budget as leader of Zimbabwe. Well, it was presented by his Finance Minister, but the success or failure of the economic policies enunciated therein will be credited to the President.

So, in that sense, the increased spending for a Government portfolio that only a few weeks ago had been split at the altar of political expediency is particularly encouraging.

It potentially reflects the direction that Zimbabwe, under President Mnangagwa, is likely to follow in the wide-ranging issues concerning environment – a path of change, as well rapid implementation of programmes that help people cope with climate change, arguably one of the greatest threats faced by mankind today.

His predecessor, Robert Mugabe, had already laid a solid foundation for this change to happen. Though Mugabe didn’t go far enough on execution, his administration signed Zimbabwe onto important global eco-related treaties, and at home crafting one of the most comprehensive legal frameworks on environment anywhere on the African continent.

In the Budget, Mr Chinamasa did not speak about the financial risk arising from climate change – we would have loved that he addressed this critical matter – but the fact that he recognises the problems brought on by the phenomenon is good enough, for now.

We would like that financial risks caused by climate change be included in future economic projections, either by Mr Chinamasa, or anyone else, in light of the over $500 million damage-worth to public infrastructure caused by a succession of tropical cyclones last summer, and the years before.

This will be important in understanding the financial cost of extreme events, and perhaps environmental degradation, on the fiscus.

The Finance Minister spoke about strengthening Zimbabwe’s response systems to climate impacts, which have manifested “through frequent recurrence of heat waves, droughts and floods leading to . . . poor yields and food insecurity at both the household and national levels.”

He is concerned at the scale of damage climate change could inflict on the broader economy if left unchecked. Thus, he outlined four points that he believes will be key to helping people and the economy adapt to climate change:

Scaling up adaptation capacity and strategies to build community resilience; Strengthening early warning systems to reduce incidences of climate related disasters and loss and damage to human life, biodiversity, infrastructure, property and economic losses; Strengthening the institutional framework for climate change governance; and

Enhancing the capacity of stakeholders to mainstream climate change in local development frameworks. As they are, these interventions represent nothing that is not already known. It is how Mr Chinamasa goes about implementing the plans he has lined up that concerns us.

Pragmatic
At the time of writing, we had yet managed to obtain specific data on how the $85 million allocated to the Ministry of Environment, Water and Climate is to be distributed for all the departments falling under it.

In his Budget Statement, Mr Chinamasa touched on a range of issues related to the environment, from forestry to wildlife, irrigation to energy, and others.

Whereas in the past he tended to skirt around issues that would otherwise be damaging to the environment, this time round the Finance Minister demonstrated a certain pragmatism in driving the environmental agenda in line with the wider economic trajectory. He threatened to punish invaders of land on animal sanctuaries, who go on to cut down trees senselessly.

“In order to restore our forestry resources, Government is moving in to bring a stop to this and, where necessary, reversals of some indiscriminate resettlements over both forestry and conservancies will be undertaken,” said Mr Chinamasa.

In agriculture, a key economic sector that is, nonetheless, most vulnerable to climate change, Mr Chinamasa promised to build more dams and refurbish old irrigation equipment. Water and irrigation access are seen as major interventions in climate change adaptation.

He read the riot act to corrupt officials from environment regulator the Environmental Management Agency, who, for the love of money, had been allegedly turning a blind eye to matters that are harmful to nature.

There are a number of things to take home from Mr Chinamasa’s Budget. We hope that where past promises haven’t been fulfilled, they would be this time round.

God is faithful.

jeffgogo@gmail.com

Enacy Makame Business Reporter
ZIMBABWE’s telecommunications companies registered a 19 percent growth in cumulative revenue to $292,7 million in the third quarter to September 2017, compared to $244,5 million recorded in the previous quarter driven by growth in data usage.

According to regulator, Postal and Telecommunication Regulatory Authority of Zimbabwe (POTRAZ) mobile internet data usage was up 39,1 percent to 4 129 terabytes. The country has been experiencing an increase in mobile data usage as mobile phone and internet penetration have been growing exponentially. Figures from POTRAZ show that the mobile penetration rate increased by 3,5 percentage points to 100,5 percent from 97 percent in the second quarter.

The active internet penetration rate increased by 0,9 percentage points to 49,5 percent from 48,6 percent recorded in the previous quarter of 2017. All the three mobile operators registered an increase in data usage while Econet having the highest market share of 70 percent. NetOne recorded the highest increase in data or internet consumption at 86 percent, which resulted in its market share increasing by 5,7 percentage points to 22 percent of total market share. Of the total industry revenue, mobile operators contributed $224,8 million during the quarter under review, representing a 36 percent growth.

“The increase in overall operator revenue is attributable to the growth in internet and data usage as well as mobile money services,” said POTRAZ. The industry’s aggregate revenue per user per month increased by 10,8 percent to $4,41 from $3,98 recorded in the previous quarter. Total operating costs for mobile operators declined by 6,3 percent to $123 million from $131 million the prior quarter.

POTRAZ said the decline was a result of efforts by mobile operators to cut down operating expenditure. The aggregate average cost per user per month declined by 9,3 percent to $2,72.

However, investment by mobile operators declined by 37,2 percent to $31 million. Active fixed telephone lines declined by 2,3 percent to reach 260 183 while fixed tele-density remained at 1,9 percent. Since the advent of the mobile phones, fixed network services have continued to face stiff competition resulting in declines in voice revenues as, consumers opt for the more convenient mobile phones.

According to POTRAZ, most of the fixed telephone lines in rural areas belong to local authorities as well as educational and health institutions. The national mobile voice traffic increased by 7,6 percent to record 924,7 million minutes from 859 million minutes recorded in the previous quarter. Revenue from other services such as postal and courier revenues decreased by 1 percent to $13,8. Postal services provider, Zimpost said recently that it was working on growing other services such as money transfer to offset the decline in mail postal services.

However, the firm is still upbeat of good returns from postal and courier services driven by increased online based purchases, as the purchased goods still require to be couriered to customers.

Finance and Economic Planning Minister Patrick Chinamasa

Martin Kadzere Senior Business Reporter
Finance and Economic Planning Minister Patrick Chinamasa, on Friday said the prevailing cash shortages will not disappear “overnight”, and urged people to be patient as Government starts implementing measures to address the shortage of banknotes.

He also hinted that Government may consider building gold stocks to back up the local currency in the event it decides to reintroduce it. Addressing the 2018 post-budget seminar organised by the Confederation of Zimbabwe Industries, Minister Chinamasa said the shortage of cash had largely emanated from high level of expenditure of Government and widening budget deficit being funded through Treasury Bills.

The TBs had resulted in excessive “printing” of money and this had driven real money out of circulation and replaced it with bank balances, Minister Chinamasa said.

“There will be no quick fix to the cash shortages. . . it will happen but not overnight. That is why we need to increase exports and keep an eye on imports coming into the country,” said the minister. Zimbabwe has grappled with cash shortages since April last year with authorities blaming externalisation, the hoarding of cash and depressed exports and low foreign investment.

It is understood that about $3 billion was externalised from Zimbabwe since 2015 and the Government has since granted a three-month moratorium within which individuals and corporates that externalised the money and assets are expected to bring them back. The amnesty stretches from December 1 to February 28, 2018. The Government will neither ask questions nor prefer charges against those that will be repatriating the money.

In his inauguration speech on November 24, President Mnangagwa pledged to resolve the country’s cash shortages. “In the immediate, the liquidity challenges, which have bedevilled the economy must be tackled head-on and must be dealt with as a matter of urgency.”

“People must be able to access their earnings as and when they need them,” Mnangagwa said. He said the Government would expedite relations with the “countries who control the global financial markets’.

Minister Chinamasa said while it would be imperative to address economic fundamentals necessary to re-introduce the local currency, the Government may also looking at building gold reserves to back up the Zimbabwean dollar.

“That is where my mind is going. Meanwhile industry welcomed Minister Chinamasa’s budget, describing it as “business and investor friendly,” said Minister Chinamasa. While there would be some areas needing public and private sector dialogue, business leaders said the fiscal policy had positively responded to most of the challenges facing the economy. Minister Chinamasa assured policy “consistency and predictability” while challenging the business to play its part.

“We have made clear the direction the economy is going; supporting infrastructure, re-orenting the budget, supporting productive sectors and there is convergence on that. We are creating conducive environment for you the economic players and investors and the ball is on your court.”

Assistant Business Editor
The Government will mobilise $182,4 million in support of several housing development strategies that are aimed at providing low cost serviced land for housing development.

In his 2018 National Budget presentation last week, Finance and Economic Development Minister Patrick Chinamasa said Government will partner the Infrastructure Development Bank of Zimbabwe and the Urban Development Corporation in coming up with various financing strategies for housing development. Such strategies include: “Home Ownership Schemes, largely funded by beneficiaries; Loan Funded Schemes, where the Local Authority, IDBZ, and UDCORP identify suitable land and mobilise funding for servicing before selling the stands to beneficiaries.”

The strategy will also include “formalization of informal settlements, where Government and the beneficiaries meet the cost of the required off-site and on-site infrastructure.”

“During 2018, the Budget will mobilise $182,4 million in support of the above strategies,” said Minister Chinamasa. Loan Funded Schemes have an allocation of $59,5 million with $7,8 million coming from National Budget, $20 million from beneficiaries own resources and $31, 7 million being loan financing.

Some of the housing projects for the “Loan Funded Schemes” are in Tafara, where $1 million has been earmarked for the construction of flats. The others are in Budiriro, Nemamwa, Kariba, Gwanda, Masvingo and Harare among others. The IDBZ will be involved in most of these projects. A total $88,5 million is expected to be invested in Beneficiary Funded Schemes were $9,7 million has been budgeted, $67,3 will come from “own resources” , $5,5 million from beneficiary contributions and $6 million from loan financing.

Some of the projects under Beneficiary Funded Schemes will be in Chinhoyi, Gweru, Chiredzi, Makonde, Bulawayo and Harare. The Knockmaloch Housing Development project in Norton will, however, get the bulk of the funding resources amounting to $41 million. The Manresa Housing Project in Harare will also get a sizeable chunk of $18,3 million.

Urban renewal and Regularisation schemes will get funding amounting to $4,4 million with UDCORP being involved in projects in Sakubva, Highfields, Nyatsime, Hatcliffe and Caledonia.

In support of privately funded schemes in addressing the housing backlog, Government will also create the necessary synergies with banks, genuine housing co-operatives, Councils and other stakeholders, with a view of ensuring the housing backlog is reduced. Government also noted its concerns with Land Barons and some “unscrupulous Housing Co-operatives” that continue to abuse contributions by members.

“To protect genuine private investors from this, particularly within some Co-operatives, Government has since mandated UDCORP to take over the administration of those schemes, where members are demonstrating lack of capacity to develop and service land availed by the State for housing development.

“In this regard, UDCORP will administer the Co-operative Funds earmarked for land servicing, with the Co-operative receiving and managing contributions related to the administration of the Co-operative. Minister Chinamasa puts the country’s housing backlog at 1,3 million, with Harare City Council’s housing shortfall alone accounting for 500 000. Given that housing is a basic human right, said Chinamasa, Government has continued to priorities investments towards affordable housing across the country.

LONDON. — Home values in the capital are likely to fall another 2 percent in 2018 after a 1,8 percent decline this year, the real estate website operator said Monday. In December alone, prices dropped 3,7 percent in London and by 2,6 percent nationally. The month usually sees a big seasonal slump.

“Economic and political uncertainty tend to weigh more heavily on the capital,” said Miles Shipside, Rightmove director. Next year U.K. property “will continue the 2017 trend by being a real mixed bag of different price pressures both up and down, but the net result is that we forecast another year of a slowing in the pace of price rises.”

House-price growth nationally will cool further to 1 percent next year, the weakest since 2011, Rightmove predicts. That’s a consequence of the sluggish economy and a squeeze on consumers in the wake of the Brexit vote, with separate reports yesterday showing few signs of optimism regarding the outlook on either front.

The British Chambers of Commerce on Monday downgraded its three-year outlook for the economy, cutting growth expectations to 1,5 percent in 2017, 1,1 percent in 2018, and 1,3 percent in 2019. Meanwhile, Visa said its UK consumer spending index fell for a third month in November – a 0,9 percent annual drop that leaves shoppers on track for their weakest year since 2012.

Stretched buyer affordability, tighter lending criteria and increased stamp duty for second-home owners are all having an impact, Shipside said. The Bank of England has signaled that interest rates may rise further next year after the first hike in a decade last month. London’s readjustment will also weigh on the national average, as part of a broader slowdown in higher-end markets.

Nevertheless, some parts of London will do better than others, Rightmove said. The lower and middle sectors of the market will continue to outperform, with first-time buyer properties having the most price resilience, the report said. At the upper end of the market, prices are likely to drop 4 percent next year compared to 3,7 percent in 2017, according to the report.

In last month’s budget, Chancellor of the Exchequer Philip Hammond abolished stamp duty for first-time buyers on homes up to 300 000 pounds ($400 000). The move also applied to the initial 300 000 pounds of the purchase prices of first homes up to the value of 500 000 pounds. That’s good news for first-time buyers, Rightmove said, though it will ultimately boost prices as demand increases and buyers’ negotiating power diminishes. Nationally, prices will continue to be supported by the perpetual shortage of property for sale. — Bloomberg.

Individual or retail investors can buy and sell bonds as easily as they would shares. This model provides issuers the opportunity to raise capital on a transparent and regulated market that offers broader participation of individual investors and benefit from enhanced price discovery.

Through issuing retail bonds on FINSEC Fixed Income Bonds, issuers are able to tap into a new source of funding or diversify into a new pool of retail liquidity.

A retail bond can either be an alternative source of funding or complement existing channels such as private placement, bank lending and the wholesale debt capital market. Retail bonds are aimed at enhancing financial inclusion and a saving and investment culture to promote economic development.

Saving becomes convenient for investors as they can trade via mobile phones and online channels. Throughout Africa corporates and government are issuing retail bonds. A classic example is when the government of Kenya recently launched mobile traded retail bonds, dubbed M-Akiba.

This retail bond, the first of its kind in the world was a success and it gave ordinary citizens an opportunity to participate in the development of their country while at the same time earning interest on the mobile wallet balances.

The government of Kenya got access to cost-effective funds for infrastructure development. The technology that was at the centre of the M-Akiba Retail Bond in Kenya is the same technology that FINSEC has adopted in rolling out mobile and online issuing, trading and settlement of securities including equities and bonds.

There are several opportunities for expanding the participation of retail investors in the local capital and investments markets. UNTU Capital, a local microfinance firm, recently published its Information Memorandum for the US$5 million medium term notes to be listed on the Financial Securities Exchange (FINSEC).

A portion of this issue will be reserved for retail investors who can subscribe for these notes using a variety of payment platforms including mobile and online platform. This is the first time in Zimbabwe that investors will be subscribing for listed securities using mobile and online gadgets. The minimum investment amount for these UNTU Medium Term Notes is $50 hence demystifying the misconception that investment is complex and meant for the elite.

This investment opportunity will enable investors to have a steady source of interest income paid every six months and investors have a guaranteed exit option, that is, they can sell their bonds anytime before the maturity period. Trading can be done on the go with mobile and online facilities. Most investors buy bonds at launch, and many hold them to maturity. However, once issued, bonds, like shares, can be freely traded on FINSEC.

The bond price will move up and down according to market forces and the major determinant of this movement is interest rates prevailing or expected to prevail in the market. When interest rates are higher or expected to be higher that the coupon rate of the bonds, then the price of the bonds will go down.

This is because bonds will become less attractive as an investment options since they are paying less than market interest rates. The reverse is true. If interest rates are lower or expected to be lower than bond coupon rates, bond prices will increase because it’s more beneficial to holds bonds that are paying higher rates of interest than what is available in the market.

When investing in a bond, investors are essentially lending money to issuer of the bonds, be it a private company, a local municipality of the government. Investors should therefore make sure that they are comfortable with ability of the issuer to repay both capital and interest. In most cases, as is with UNTU Capital mentioned above, issuers also provide third party guarantee to investors as an additional security.

The Financial Securities Exchange (FINSEC) is a Zimbabwe registered securities exchange and a member of the Escrow Group. The Escrow Group has interests in the financial services and technology sectors. Corpserve Registrars and Escrow Systems are the other members of the group.

For more information contact: – 2nd Floor ZB centre, Cnr Kwame Nkrumah and 1st Street – Harare, Zimbabwe – Tel: +263 4 758193 – Email: info@finsec .co.zw – www.finsec.co.zw – Twitter: @FINSECZim

Martin Kadzere Senior Business Reporter
Zimbabwe needs to improve its investment climate to attract international capital through issuing fixed income instruments whose proceeds would be channelled towards financing climate-friendly projects such as renewable energy, pollution prevention and conservation.

Speaking at Zimbabwe’s green investment catalysts round-table in Victoria Falls last week, several speakers concurred that the country had potential to attract “green capital”, but this could only be achieved if the Government implemented the necessary reforms.

“Capital flows to stable markets and we need policy consistency with other markets,” Infrastructure Development Bank of Zimbabwe head of resource mobilisation Willing Zvirevo said.

“The major obstacles that we face is an unstable macroeconomic environment and issues to do with policy inconsistency, but we are hoping that under the new dispensation, some of these issues will be addressed immediately.” Zimbabwe is a signatory to the Paris climate change accord agreed in 2015, which seeks to reduce and hold the global average temperature below 2 degrees celsius.

At the forum, Zimbabwe submitted a conditional 33 percent energy sector per capita greenhouse gas emission reduction target. The submission was conditional on the means of implementation namely technology development and transfer, relevant training and financial support. The country needs about $90 billion to meet its climate goals. Of this, $55 billion is targeted at clean energy. Studies have shown that Zimbabwe is emitting an estimated 26 000 giga grammes of carbon dioxide, equivalent to 0,05 of the global emissions.

Launched by multilateral institutions such as the World Bank and European Investment Bank, the green bond market was originally viewed as niche. But not so now.

In the first half of 2017, about $55 billion worth of bonds labelled green notes were issued, an increase of 38 percent year-on-year from the $40 billion issued in the first six months of 2016. The Climate Bond Initiative estimates that the total amount of green bonds issued in 2017 could reach $150 billion.

Developed and developing countries face rising financial challenges from climate change and green bonds have been viewed as perfect tools to finance railways, roads, airports, buildings, energy and water infrastructure, while at the same time achieving positive returns for the environment and society. All the projects financed from green bonds have positive, climate-friendly spillovers, mitigating the downside risks of traditional fixed income instruments.

Since green bonds have a high degree of transparency, investors can also quantify the benefits of investing in them using accessible metrics. Zimbabwe Microfinance Fund operations director John Banda said the country’s “Arab spring”, which ended former President Mugabe’s 37- year rule should provide an opportunity to create an enabling and conducive environment to attract domestic and international capital.

Steward Bank chief executive Lance Mambondiani said the current environment was not enabling for purposes of raising long term to funds green projects. He also said the country’s rating was also key if Zimbabwe was going to attract takers for the green bonds.

One of the labourers work at the construction site of the new Egyptian administrative capital

CAIRO. — In Egypt’s eastern desert, roads are being carved across vast expanses of sand where the government is building a new administrative capital, a long-cherished project that has failed in the past.

The city will be complete with luxury hotels, upscale residential districts, a modern airport and a 345-metre tower, touted as Africa’s tallest. The work is being carried out about 45 kilometres east of Cairo, between roads connecting the metropolis to the canal city of Suez and the Red Sea resort town of Ain Sokhna.

Workers are building a district to house a new presidential palace, parliament, 32 ministries and foreign embassies.
“I work more than 12 hours a day on this useless construction site,” complained one labourer, a scarf wrapped around his head to protect him from the sun. You want to be on TV? No? Then get back to work,” yelled his supervisor.

The project, seen as expensive and not a priority for Egyptians, has been hard to sell, especially given past failures. President Abdel Fattah al-Sisi in 2015 announced the project to build a new capital, expected to cost some $45 billion and to be completed by 2022, according to the authorities.

The cost has angered many in a country with a crisis-hit economy. The first phase of construction was officially launched in October, with the new capital aiming to expand to 170 square kilometres (65 square miles) and house over six million people. For the authorities, the project is a necessity due to Cairo’s gradual decay and congestion.

With its 18 million inhabitants and constant traffic gridlock, Greater Cairo is expected to see its population bulge to 40 million by 2050, according to official figures. Hesitation among investors

“We have a dream,” said Khaled el-Husseiny, contracted by the authorities to present the project to journalists. He said Egypt aspires to have a capital in the gleaming image of Abu Dhabi, the oil-rich capital of the United Arab Emirates. The ministry of defence and the ministry of housing manage the project, including its funding, Husseiny told AFP.

To carry it out, the government is currently focusing on key Egyptian private companies. Orascom Construction, owned by the billionaire Sawiris family, is responsible for many of the sites. Real estate tycoon Hisham Talaat Moustafa, who Sisi pardoned in June after he was jailed for the murder of a Lebanese pop diva in Dubai almost a decade ago, is also involved.

Moustafa, who was an associate of ousted president Hosni Mubarak, has bought two square kilometres for himself in the new capital. But amid hesitation from foreign investors, only a few Gulf companies and a Chinese partner have expressed interest in the project.

“We are very optimistic about the participation of Chinese companies in the new capital,” said Han Bing of the commercial affairs section at China’s embassy. The China State Construction Engineering Corporation (CSCEC) in October signed a $3 billion contract to build a large business centre.

“We need the Egyptian partner to promote this area to attract Egyptian and international investment,” Han said, stressing the need for political stability and a secure environment for foreign investors. — eNCA.

Minister Chinamasa

Livingstone Marufu
GOVERNMENT has set aside a cumulative budget of $139 million for rail, road and air projects to improve and rehabilitate the country’s transport network infrastructure to enhance their efficiency.

The projects, which will be funded through fiscal resources, are expected to rehabilitate and expand rail, road and air projects in 2018. During his 2018 Budget presentation last week Finance and Economic Planning Minister Patrick Chinamasa said that Government will ensure all planned projects are executed accordingly.

He said: “Given the critical role of transport infrastructure in the socio-economic development of the country, investments in transport infrastructure will be prioritised in 2018, targeting road, rail and aviation.

“Due to the state of our roads, $89,6 million and the Road Fund will target improvement in road network. This is through restoration and upgrading of damaged sections and bridges, dualisation of Harare-Beitbridge and critical sections of the network and capacitation of Road Authorities.”

Government will extend its support towards the dualisation of and upgrading of the road network, including Harare-Beitbridge Dualisation project. Furthermore, an allocation of $4,6 million will target ongoing works for dualisation of Harare-Mutare road section between Goromonzi turn-off and Jamaica Inn Toll Plaza as well as the Hare-Bulawayo road section, between Norton Service Centre and the Norton Toll Plaza.

Minister Chinamasa said Government has set aside $15 million for road authorities’ equipment. With regards to aviation infrastructure priority will be on expansion of the capacity of local and international airports.

“In this regard, a provision of $7 million will target works for the construction of J.M Nkomo Airport Control Tower. Further, negotiations on the $153 million for the Robert Mugabe International Airport upgrading are expected before end of December 2017, paving way for commencement of the works,” said Minister Chinamasa.

The targeted scope of work include the expansion of terminal building, rehabilitation of the runway, construction of aerobridges and radar system. Meanwhile a budget provision of $10 million has been set aside to cater for required emergency works on the rail network. Strategies to recapitalise National Railways of Zimbabwe provide an opportunity for restoration for restoration of the role of rail transport, an affordable mode for bulk transportation, which eases the cost of doing business and hence domestic production competitiveness.

The recapitalisation programme targets refurbishment and replacement and replacement of NRZ rolling stock, signalling, ICT and track infrastructure, among others, under a joint venture partnership model estimated to cost $408 million. This will raise NRZ’s capacity to move cargo from the current 3,8 million to its peak of 18 million tonnes per annum.

Taurai Mangudhla Senior Business Reporter
ZIMBABWE’S foreign currency shortages that culminated in a cash crisis have been worsened by growing economic activity. Finance and Economic Planning Minister Mr Patrick Chinamasa’s economic growth forecasts for 2018 are at 4, 5 percent, up from 3,7 percent in 2017, driven by growth in agriculture and mining as well as policy interventions across the board.

In his 2018 National Budget, Minister Chinamasa said economic growth is expected to be above 4, 5 percent in the outlook. As productivity and the economy grows, demand for foreign currency to support the development swells, Reserve Bank of Zimbabwe (RBZ) international banking and portfolio management deputy director Mr Ernest Matiza has said.

“I think there is more foreign exchange which we have received this year, but also what we have seen is the economy is picking, which implies that all sectors of the economy are demanding more foreign exchange in order for them to be able to operate,” Mr Matiza told a Chamber of Mines State of the Industry Survey report launch last Friday in the capital.

Matiza said the extractive industry requires a lot of foreign currency running into billions annually, with gold producers requiring about $70 million on monthly basis while platinum and chrome requirements are in the range of $100 million each month.

“If you are looking at all these sectors there is demand for electricity. If you look at it on a weekly basis we need to compliment what we are producing in terms of electricity by importing plus or minus $5 million worth of electricity (and) major demand for that electricity is from the mining sector,” he said.

“If you look at the gold sector there is also the small scale producers who are paid in cash so every week we need to import plus or minus $5 million to pay for that gold which is coming from the small producers,” Mr Matiza added. Other sectors of the economy also have their demands.

“Take your cooking oil, on average you need $5 million every week, your medicals you need $4 million every week, take your fuel which needs $50 million every month and which also goes to the mining sector.

“The suppliers on average $5 million every week so we are looking at $170 million which I receive, these are just basics (and) I have not even incorporated other sectors which come for raw materials for production as well.

This is not even enough, that is why we talk of a pronounced foreign exchange shortage but otherwise we have seen actually better,”Mr Matiza said. Between the month of August and December, foreign currency demands are exacerbated by fertilizer imports which cost the economy between $80 and $100 million, excluding agro chemicals which require an extra $25 million. If you look at the issues of foreign exchange, we have done very well as a country but also there is demand as the economy is also picking up,” he said.

Minister Chinamasa

Clive Mphambela
Well, it has come and gone. Finance and Economic Development Minister Chinamasa delivered an interesting budget which, as was expected, had its own fair share of highs and lows.

The much anticipated budget dealt some good measure as it highlighted issues needing attention in order to put Zimbabwe’s economic train back on the rails. However, his efforts still missed some critical elements, required to actually power the economy forward.

To his credit, Minister Chinamasa’s delivery was brilliantly honest in terms of its underlying assumptions. He demonstrated Government’s acute understanding of the critical state of the economy. He acknowledged at length the failure of government over recent years to adhere to fiscal order and discipline. He agreed with the common view that excessive indiscipline by the Government right across its breadth and depth has bled the economy and led us to where we are. This level of candour inspires some confidence. In order to start resolving a problem, the very first step is to first identify the problem and then honestly accept the realities engendered by the problem. Hats off to him!

Secondly, Minister Chinamasa did a good job in aligning the Budget statement to the new vision outlined by President Emmerson Mnangagwa. The constant reference to the President’s speech right through his statement showed that there is already a high level of buy-in, not just by his own ministry, but right across the entire Government. Minister Chinamasa touched on critical elements of the New Economic Order’, articulating how various sectors of the economy will be impacted. He clearly understands that the Ministry of Finance and Economic development will play a key coordinative function in this new dispensation. That is the reason his budget touched on the need to review the indigenisation act through amendments to be pushed through as soon as possible. This will be quite reassuring to foreign investors.

Minister Chinamsasa cemented the need to tell the world that “Zimbabwe is now open for business” highlighting strongly that Government is seized with putting in place supportive measures that seek to rebuild confidence and compete for investment. Hence, re-engagement with the global community takes centre stage in his address, as does the need to establish new relationships and strengthen existing relationships with international funders. Minister Chinamasa also recognizes the critical role of the Zimbabwean diaspora in the economic recovery agenda of the country, stating that “the diaspora plays an active role in the broader economy, particularly through investments in the domestic economy, as well as knowledge and technology transfer”, further calling for the creation of conditions for an investment-led economic recovery that is underpinned by the active participation of the diaspora in the “broad economic calculus”. This position of the government is certain to enthuse the diaspora and rekindle strong feelings of loyalty to their country. Fortunately, Hon Chinamasa is the custodian of the diaspora policy, and pledges that Government will, therefore, be strengthening platforms for engaging the Zimbabwean diaspora with a view to coming up with a policy framework that provides incentives and guaranteed security for diaspora investments. In view of the mega deals such as the NRZ-DIDG-Transnet transaction, Government must urgently follow through on this commitment.

To his further credit, Minister Chinamasa dealt at length with measures meant to address the problems in Agriculture, outlined plausible solutions to the problems.

The lengths to which he went to address Issues to do with tenure security for farmers, unlocking the capital value of agricultural land, working on weaknesses in the current financing mechanisms under the special agriculture programmes, marketing challenges and the need to improve the sustainability of small holder farming through special schemes such as the strategic partnerships with Anchor Farmers.

The Anchor Farmer concept integrates commercial farming and smallholder farmer outreach, providing farmers with access to inputs, agronomic advice, and markets. He proposed a massive 150 percent allowable deduction on expenditure related to technical and support services availed to smallholder farmers by anchor farmers which in my view is a substantial incentive for established farmers to want to work with and assist in integrating upcoming farmers into mainstream agriculture.

The budget was also very solid on civil service reform proposals; the need to revamp and revitalise state owned enterprises; transform the public finance management system; addressing inefficiencies caused by rent seeking by government officials and accelerating the ease and cost of doing business reforms.

There are indeed many other positives in the budget but this column notes some glaring shortcomings.

On employment creation, the budget seems to make only sweeping references to the need for jobs but lacks comprehensive strategies specifically aimed at creating new jobs.

Whilst the minister acknowledges the negative consequences of excessive money supply growth caused by excessive government borrowing, which has caused dislocations in the monetary system, he does not seem to provide any solutions to the problem. Indeed he spoke of the need to curb the fiscal deficits, reduce the need for government to rely on inflationary Treasury bills and RBZ overdraft financing, improve foreign currency inflows, but he did not attend to the need to re-look at the additional instability and damage that has been inflicted on the economy by Bond Notes. It is as clear as daylight that this monetary based export incentive is inflationary and is inflaming key variables such as the exchange rate.

This is impacting the cost structures in the economy. Minister Chinamasa only proposes cosmetic solutions to the problem, namely prioritising foreign currency allocations to producers of essential goods and services; exercising flexibility in the issuance of import licences to those with “free funds”, in order to avert shortages of essential goods not produced locally. These solutions ignore an obvious critical fact, that the “free funds” that the Minister refers to are being sourced from the informal market, and this is what is making the problems worse. Minister Chimasasa in this respect completely misses the point that we need to remove bond notes from the system so that the foreign exchange starts to return to the banking system, otherwise we remain doomed. The parallel market will continue to thrive unless we return to the system where some 30 percent or so of transactions in the economy were in US Dollar notes, which were in continuous circulation. There are no concrete proposals aimed at restoring and maintaining the integrity of the multicurrency system by revising the export incentive scheme. This I identify as a major weakness.

The Minister of Finance was however, quite correct to observe that his policy prescriptions merely address the symptoms, and require to be buttressed by additional efforts aimed at fundamental issues related to fiscal imbalances and low production.

As things stand the economy is facing unprecedented challenges from many fronts, with inflation and monetary instability posing as major risk factors. I saw very little by way concrete proposals to deal with these risks. The economy is facing acute foreign currency position, despite significant projected growth in export receipts. The import bill is still projected to rise further from $6,4 billion last year to $6,8 billion this year. The country’s external position will therefore remain precarious and the dislocations in the financial system, the foreign exchange markets and the real goods market (multiple tier pricing ) are likely to continue.

Did Minister Chinamasa deliver a JOBS BUDGET?

Finally perhaps more importantly I need to state that Ministers Chinamasa budget was only going to be relevant to the ordinary man if all his policy measures were keenly focused on CREATING NEW AND SUSTAINABLE JOBS IN THE ECONOMY. If truth be told, he did not do too well on this front. Perhaps he assumed that employment creation is an implicit objective. My view however, is that the citizens are desperate for JOBS and therefore employment creation must necessarily have been an explicit objective in the budget. Minister Chinamasa’s effort therefore falls short of heeding the loud calls by His Excellency that “we need JOBS!, JOBS!, JOBS!!!!” Let us now wait and see how he follows through on this ambitious but very interesting plan.

The writer is an economist. The views expressed in this article are his personal opinions and should in no way be interpreted to represent the views of any organizations that the he is associated or connected with.

Kanyemba is a border village situated on the banks of the Zambezi River in the extreme north-eastern parts of Zimbabwe, forming a boundary corner with Zambia and Mozambique

Michael Tome Property Reporter
The Mbire Rural District Council has intensified efforts to develop and modernise the Kanyemba border area in line with its vision of a town status by 2023. A total of 3 000 hectares spanning 15 kilometres along the shores of Zambezi River have been set aside for a range of properties. Civil works including construction of a bituminous road that links Zimbabwe and Zambia have already begun, marking the beginning of a journey towards town status.

Kanyemba is a border village situated on the banks of the Zambezi River in the extreme north-eastern parts of Zimbabwe, forming a boundary corner with Zambia and Mozambique. The upper reaches of Lake Cabora Bassa, the Zambezi’s second-biggest hydro-electricity generation facility, lie just a few kilometers downstream from Kanyemba Rest Camp. According to District Chief Executive officer Claudius Majaya, the 3000 hectares have been earmarked for residential, commercial stands and recreational facilities. Part of the land is meant for construction of properties such as warehouses, banks and hospitals.

“Mbire Rural District Council has packaged the 3 000 hectare land along Zambezi river into 2-5 hectare spaces for residential, commercial stands and recreational facilities. The land available is also meant for services like banks, hospitals and warehouses as we are anticipating rapid growth in the border area.

“Our intention as MRDC is to modernize the border area as it links Zimbabwe to Zambia into central Africa, so we want to improve standards to match those of a (typical) border town by 2023,” Mr Majaya said.

The move is meant to unlock value in Kanyemba area, which shares borders with Mozambique on the east and Zambia on the northern side. The area which is located on the Zambezi river floodplain is currently dominated by lodges, fisheries and a little number of holiday homes.

Speaking at the investment conference held on Friday in Kanyemba, Mashonaland Central Provincial Administrator Cosmas Chiringa said the achievement of town status by Kanyemba required hard work from all stakeholders and Government.

“I challenge the Government and all the concerned stakeholders to have a united and collaborative endeavour in surpassing the current growth point status to the proposed town status by 2023,” Mr Chiringa said.

Golden Sibanda Senior Business Reporter
GOVERNMENT has slashed the rate of royalty for all platinum group mining companies to 2,5 percent from 10 percent, a move the Chamber of Mines of Zimbabwe says will go a long way in enhancing viability at a time prices are depressed.

This also comes as Government indicated it had deferred the 15 percent levy on raw platinum exports cognisant of progress towards implementation of an agreed road map to construct value addition plants. The levy has been deferred further for raw and semi-beneficiated platinum until January 1, 2019.

The decision to cut the platinum royalty was taken as part of measures to ensure equity and fairness in the taxation of PGM miners, with or special leases or special mining title. The royalty is charged on gross annual revenue.

The new framework is with effect from April 1, 2017, Finance and Economic Planning Minister Patrick Chinamasa announced in his 2018 National Budget last week. He said the provision will last until August 2019. Effectively, the development will enable all platinum group companies to reserve significant amounts of capital for reinvestment, since royalty charges are calculated on the mining companies’ gross annual revenues.

Government entered into Special Mining Lease Agreements with some platinum group mining companies, which provide for a specific royalty rate of 2,5 percent, but mining companies who do not have special mining leases continued to be levied at 10 percent. PGM mining is strategic to the domestic economy since platinum is Zimbabwe’s second biggest foreign currency earning mineral, after gold, and together the two minerals generate more than half the receipts from mining.

According to the 2018 National Budget, Zimbabwe projects 3,7 billion in export earnings next year from mining, from 3,4 billion in 2017.
“In line with the principles of equity and fairness in the taxation system, Government committed, in April 2017, to align the royalty rates to 2,5 percent as part of the 2018 Budget measures. The 2018 Budget, therefore, proposes to regularise royalty rates for platinum on all platinum group mining companies with effect from April 1, 2017, until August 2019,” Minister Chinamasa said last week.

Zimbabwe has three producing platinum mines, Zimplats, Unki and Mimosa Mining Company. Chamber of Mines of Zimbabwe chief executive Isaac Kwesu said the reduction of the rate of royalty was taken in the spirit of equity and fairness for all PGM mining firms, which must be treated in the same way.

“It (reduction) ensures fairness and equity. All platinum miners are faced with depressed prices; platinum prices are low. All miners are struggling for viability, so the cost are the same whether one holds a SML or not, all the companies need to survive,” Mr Kwesu said.

In Zimbabwe, SMLs are normally given to an investor who hold adjoined or contiguous mining claims they intend to develop and may result in investment of over $100 million. Zimbabwe’s platinum mining companies have in the past few years been battling to secure more favourable fiscal taxation regime amid claims the current framework means they lose half the revenue to taxes.

Most recently, they have been fighting to have the proposed 15 percent levy on unbeneficiated platinum exports, arguing the tax would render their operations unviable. The producers have already started on the beneficiation projects. However, only Zimplats is now smelting and exporting PGMs in matte form.

Unki expects to complete its smelter for matte in August next year while Mimosa Mining Company is on feasibility studies. According to Minister Chinamasa’s budget, all three still have base metal and precious metal refineries outstanding. Government had eventually agreed to suspend the levy this year, until January next year, on condition the miners demonstrated commitment to building beneficiation facilities to optimise returns from PGMs.

However, the tax was reduced through the 2018 Budget from a blanket 15 percent to 5 percent for concentrate exports, 2,5 percent for white matte, 1 percent for PGM and base metal stage and 0 percent for precious metal refinery.

While the Government noted the investment being put into beneficiation facilities, Minister Chinamasa said there was concern over the slow progress towards the agreed targets, which perpetuates export of raw and semi-processed PGMs.

Zimbabwe also has the world’s second biggest known platinum deposits after its neighbour South Africa. The southern African nation is the world’s third largest producer behind South Africa and Russia.

Minister Bimha

Livingstone Marufu
Government will reduce the issuance of import permits after the festive season as demand of some basic commodities is expected to have declined.

This comes after Government allowed shops and individuals with free funds to import basic commodities during the festive season to avert potential shortages. Industry and Commerce Minister Dr Mike Bimha, expects the demand for basics to significantly decline after the festive season.

“We expect to reduce import permits around January after the demand for essentials has gone down a bit to allow growth of local industry. During this time of the year, demand for the basic commodities is always high and foreign currency remains a problem hence the need to allow those with free funds to import basic goods during the Christmas period. We do not want shortages around Christmas, we want people to enjoy their holidays without any disturbances or shortages,” said Dr Bimha.

There were fears that price increases, especially of basic commodities, could rob citizens of a good Christmas holiday that people are expecting due to a new dispensation brought about by the inauguration of pro-active and business minded President, Emmerson Mnangagwa. Manufacturers and retailers recently hiked prices citing shortage of foreign currency, which the new Government promised to solve.

Government has come up with a cocktail of measures to avert potential food shortages during the festive season and early next year. Government has also set up a special task force and an inter-ministerial committee to investigate retail shops and to ensure the country has sufficient supply of basic commodities at reasonable prices.

The taskforce has since resumed its duties after the new Cabinet was sworn in. The issue of the recent price hikes has since been discussed at all Government levels, which subsequently tasked the ministries of Agriculture, Industry and Commerce, Finance and Economic Planning and the Reserve Bank of Zimbabwe to look into the problem.

The country will continue to gradually roll out additional measures to reduce the country’s exposure to profiteering elements. The Ministry of Industry and Commerce said it was disturbing to note that some companies were withholding inputs under the guise of foreign currency shortages and it was unacceptable for firms to withhold goods after receiving foreign currency allocations from Government.

More so, Government, through the Ministry of Industry, Commerce and Enterprise Development, is drafting a Local Content Requirements Framework to buttress the Import Management Programme.

Promotion of locally produced goods is expected to offer transitional stimulation and development of opportunities for local industry value and supply chains, already beginning to benefit from investment into new production and product lines.

Government is working on an incentive framework that strengthens the backward and forward linkages between manufacturing and other sectors, such as agriculture.

These business linkages include contract farming for soya beans, cotton, and maize. The production of raw materials locally will help alleviate shortages of inputs being experienced industry wide, and also exerting pressure on the import bill.

ZimAlloys plant in Gweru

Munyaradzi Musiiwa Midlands Bureau
Gweru-based giant ferrochrome producer, Zimbabwe Alloys, under judicial management by Grant Thornton International, is expected to start operating in the next 18 months after its creditors approved a $100 million investment deal with Indian Investor, Balasore Alloys Group.

In an interview, ZimAlloys judicial manager Reggie Saruchera, said the company had met its creditors and unveiled the new investor after which the creditors approved the proposed deal that will see the Indian company injecting $100 million into the chrome smelting company.

Half of the amount will go towards settling the company’s debts. Mr Saruchera said they were now working towards the operationalisation of ZimAlloys, which will see the re-building of blast furnaces and construction of other washing and smelting plants.

“We unveiled the new investor to our creditors last week and we are happy to announce that the deal has been approved. The investor is now moving in and will soon resume operations at ZimAlloys.

“However, the blast furnaces are expected to be refurbished to become full operational within a period of up to 18 months. In the mean time the investor will also settle the company’s debt while at the same time setting up other small smelting plants,” he said.

Balasore has committed itself to settling ZimAlloys’ $50 million debt owed to creditors. It has also planned to revive the furnaces, refurbish smelters, construct mortal recovery plants and washing plants at ZimAlloys. Mr Saruchera said the company will re-engage its former employees.

“The company will re-engage its former employees and will also employ more people as it grows and increase production,” he said.

Balasore Alloys Group, formerly Ispat Alloys Limited, is part of the renowned Ispat group of Companies, a major business house in India, promoted by the Mittals. The group’s companies are spread across six countries including Libya, Bosnia, Philippines, Azerbaijan and Uzbekistan.

The other group of companies in India are Ispat Industries Limited, Ispat Metallics India, Ispat Profiles India, Gontermann Peipers India. ZimAlloys is working on their dump, which is inclusive of one commissioned in 2013 in a partnership with a Chinese firm, JinAn in a deal worth about $2,3 million.

Benscore, which is owned by business mogul Farai Rwodzi, acquired ZimAlloys from Anglo -American Company in 2005 before downscaling production and switching off its blast furnaces and started processing its dumps.

The former Anglo American Plc ferrochrome producer, which stopped operations in 2008 was placed under provisional judicial management on July 24, 2014. The company was then put under final judicial management in November the same year after the ferrochrome producer’s debt had risen to alarming levels.

However, bad debt-buying company, Zimbabwe Asset Management Company last year agreed to take over $21 million worth of the group’s non-performing loans, which are sitting with a number of local financial institutions in a bid to clean the company’s balance sheet.

ZimAlloys has a total of 39,175 hectares. The company together with Zimasco jointly controlled about 80 percent of Zimbabwe’s chrome ore claims, mostly found along the Great Dyke.

The revival of one of the country’s biggest ferrochrome producer Zim Alloys, has rekindled hope for the sleepy city of Gweru.

Maputo. - The Mozambique National Institute of Social Security (INSS) will carry out the process of publicising the new Mandatory Social Security Regulation across the whole country from December 11 to 22 this year.

The instrument, Decree No 51/2017 of 9 October, was approved with social partners, the target public and officials, and will enter into force on January 8 next year.

In the build-up, teams of Central Services technicians will visit all the provinces, meeting with social partners and users of the system including unions, employers and associations of self-employed workers.

Representatives of institutions such as the Provincial Labour Inspectorate, the National Employment Institute, the Labour Mediation and Arbitration Centre and the Alberto Cassimo Institute for Vocational Training and Labour Studies will also participate in the events.

Meetings with INSS provincial officials are also planned. The new regulation contains a number of innovations, including the introduction of reduced pensions for workers who do not qualify for old-age and temporary and life-long pensions.

The legal provision also provides for the prerogative of self-employed workers to make the advance payment of contributions up to a maximum of 12 months; the legal recognition of debt repayment agreements to allow employers to pay their debts in instalments, and the shortening of the period of execution of actuarial study from five to three years, with a view to regularly assessing the system’s robustness and sustainability. -New Ziana.

Dr Benedict Oramah

ABUJA. — Dr Benedict Oramah, President, African Export-Import Bank (Afreximbank) says that African countries should shift their economies away from commodity dependence, to move their people out of poverty.

Dr Oramah made the appeal in a statement by the Head of Communication and Events of the bank, Mr Obi Emekekwu, on Monday in Abuja. While speaking at a panel discussion at the Africa 2017 Forum, organised in the Egyptian resort city, Dr Oramah said that the countries should rather implement the diversification of their economies.

This, he said, should be done by engaging in production and trade in higher value goods, similar to what the Asian nations had done to move out of poverty. He warned that if Africa failed to move in that direction, the countries would fall deeper in to poverty.

“Africa should not depend on aid and grants for its development as there is no record of any country having achieved development on the basis of aid and grant. In the alternative, African countries should wean themselves from that mindset and should make sure that their development projects were bankable in order to attract the necessary capital.

“The continent needs to come together under the Continental Free Trade Area (CFTA) as continents that traded within themselves developed faster. African markets are too fragmented, hence the need for them to come together,” Dr Oramah said.

According to Dr Oramah, the continent must leverage on its strength which includes its large and youthful population, its huge resource base and the availability of abundant labour. This, he said, could be tapped by focusing on labour intensive industries and engaging in light manufacturing.

He highlighted the important role of intra-African trade in driving African economic integration, adding that Afreximbank would introduce a payment platform to support such trade by enabling cross-border payments in local currencies.

Dr Oramah also noted that globalisation, which brought about free movement of capital, placed Africa at a disadvantage, as smaller economies were likely to always come out the losers in negotiations with larger economies. — Guardian.ng.