Donald Trump

WASHINGTON. — The Federal Reserve was yesterday widely expected to raise interest rates, but, more significantly, to give its strongest hint yet on how the Trump administration’s tax overhaul could affect the U.S. economy.

Investors will pay close attention to how the central bank aims to balance a stimulus-fuelled economic boost with the ongoing weak inflation and tepid wage growth that has curbed some policymakers’ appetite for higher rates.

The Fed’s policy statement and its latest economic projections are due to be released Wednesday following the end of a two-day meeting. Fed Chair Janet Yellen is scheduled to hold a press conference half an hour later. It will be her last before her four-year term ends early next year.

Her successor, Fed Governor Jerome Powell, said at his recent confirmation hearing before a Senate panel that he had “no sense of an overheating economy,” an early signal he may not want to quicken the pace of rate increases until there is evidence of an acceleration in wage growth and inflation. The Fed has increased rates twice in 2017 and is currently expected to push through three more hikes next year.

Much of Yellen’s tenure as Fed chief has been defined by a desire to leave loose monetary policy in place as long as possible in the hope that unemployment continued to decline, workers rejoined the labour force, and wages rose. Powell, who has worked closely with Yellen, said he feels that process still has room to run.

Recent bullish data, highlighted by continued solid job gains and a jump in economic growth, has prompted some analysts to speculate that the central bank’s new projections will reflect an expectation of four rate increases next year.

There are also signs inflation may be firming after a lengthy bout of weakness, though data released by the Labour Department early on Wednesday showed some unexpected weakness in consumer prices.

Fed policymakers have been stymied at how price rises have remained persistently below the central bank’s 2 percent target despite labour market strength and a growing economy.

President Donald Trump’s proposed tax plan, including a sharp reduction in the corporate income tax, could further boost the US economy if it passes the Republican-controlled Congress, as appears likely.

In a recent note projecting four Fed rate increases next year, Paul Ashworth, US economist for Capital Economics, said “the stimulus could provide cover for the Fed to normalise interest rates at a faster pace than it otherwise would have been able to.”

What Ashworth called a “badly timed” tax cut “would be expected to raise inflation as much as it boosted real GDP growth,” he said. Reuters

Theresa May

LONDON. - Theresa May has refused to back down ahead of a possible defeat on the Brexit Bill insisting it would put a “smooth and orderly” withdrawal in jeopardy.

Giving way to Tory rebels – in a crucial vote that could give MPs the power to delay Brexit – could leave confirmation of withdrawal until “a very late stage”, the Prime Minister said.

“That could mean we cannot have the orderly and smooth exit from the European Union that we wish to have,” she told MPs.

Anna Soubry, a leading rebel, had urged Ms May to give way and grant MPs a truly “meaningful vote”, in a clash on the EU Withdrawal Bill on Wednesday evening. Amendment 7 is designed to give MPs a binding decision on the terms of Brexit — with the potential to delay withdrawal, if no satisfactory deal has been reached.

The Prime Minister has already conceded to MPs a vote on the final Brexit deal and a Bill to follow, which could be amended. However, she has insisted it will be a “take it or leave it” offer – meaning the UK would crash out of the EU without a deal in March 2019, if hers is rejected.

Ms Soubry urged Ms May to recognise that Dominic Grieve, who has tabled the amendment, is a loyal Conservative and a reluctant rebel, urging her to accept it in a “spirit of unity”.

But the Prime Minister insisted a meaningful vote is “what we will have”, insisting it would take place well before March 2019 withdrawal date. Around 20 Conservative MPs, including former Cabinet ministers Ken Clarke and Nicky Morgan, are expected to back Mr Grieve’s amendment 7.

That is more than enough to defeat the Conservatives’ working majority of just 13 — unless the rebels fold under heavy arm-twisting from Tory whips not to give Ms May “a bloody nose”.

The amendment would prevent the Government using statutory instruments to enact withdrawal, which would bypass MPs even if they reject the deal the secured.

It would stop that enactment until Parliament has voted in favour of a separate Bill, which could be amended, perhaps to keep the UK in the EU single market and customs union.

In her answer, Ms May stuck to the Government’s stance that the vote would take place on a motion – before that Bill is put forward – which is unlikely to weaken the rebels’ resolve. - The Independent.

Chipo Sabeta Senior Business Reporter
ZIMBABWE has earned $871, 2 million from 176,4 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 58,2 million kg valued at $457,2 million while South Africa bought 23,5 million kg for $75,6 million. With an estimated 350 million smokers, China has been spending over $200 million per annum on Zimbabwean tobacco.

“As at November 10, 176,4 million kg were exported to 62 countries so far, generating $871,2 million into the local economy. During the same period last year tobacco exports generated $870,4 million from 154,2 million kg. The golden leaf is presently being exported to these countries at an average price of $4, 94 a kg compared to $5, 64 (in) the same period last year.

“Belgium has so far bought 21,7 million kg worth $65,04 million (average price of $2,99/kg), followed by Indonesia, which has spent $40,5 million on 9,7 million kg, while United Arab Emirates stands at 8,6 million kg worth $16,8 million,” TIMB said in its latest weekly bulletin.

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 planted more tobacco than last season. Manicaland Province is still leading all the country’s provinces in terms of the hectarage that has been put under flue-cured tobacco, having 12 703 hectares under the cash crop out of the 42 283ha planted countrywide.

The TIMB bulletin showed that the 42 283ha of tobacco planted throughout the country is a 0, 9 percent increase from the 41 496 ha planted in the same period last year.

The bulk of the hectarage, at 27 885, is under dry land, while 14 398 is under irrigation. Mashonaland Central tobacco farmers, who usually lead the pack are in second position, having so far planted 12 014ha, followed by Mashonaland East with 10 225ha and Mashonaland West with 6 319ha.

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

Agribank has come up with a $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 37 percent to 100 723ha from 73 658ha last season, showing a high appetite of growing the golden leaf among farmers. Tobacco is the country’s highest foreign currency earner followed by gold.

Minister Chinamasa

Dr Gift Mugano
I would like to start by thanking the Minister of Finance and Economic Planning as well the Parliamentary Portfolio Committee on Budget and Finance for a job well done.

I personally participated in the National Budget consultations and I am pleased that a number of policy measures, which were submitted by the participants, were taken into account.

The National Budget statement was pregnant with a number of policy measures aimed at stimulating the economy. Major policy measures which were enunciated and could take us to Canaan include fiscal consolidation measures, dealing with corruption, amendment of the indigenisation law, policy measures aimed at the agricultural sector and parastatal reforms.

The minister was bold in proposing a number of measures to deal with the budget deficit, a disease which largely contributed to the cash crisis through expansion of liquidity not backed by hard cash, retrenchment of over 3 000 youth officers, abolishment of unnecessary foreign trips, reducing foreign missions, call for early retirement, cuts in packs to senior officials in Government and restructuring of the overall civil service in line with leaner Cabinet.

These measures will go a long way in reducing Government expenditure. In terms of dealing with corruption, the Minister of Finance tackled corruption from two angles. First, he emphasised the need to enforce the ultimatum given to economic agents and individuals, who externalised monies and must return it in the stipulated 100 days or face the full wrath of law.

This measure together with the same ultimatum given to cash barons to deposit the monies within 100 days will help us in dealing with the cash crisis once and fall. In my view, if this measure is successful, which is most likely, it will result in the three-tier system collapsing within the coming three months.

Secondly, the minister went on to announce measures aimed at capacitating institutions dealing with corruption such as judiciary, anti-corruption commission and the Ministry of Home Affairs.

This move is excellent considering the fact that we need to deal with corruption in all its forms ranging from bribes, money laundering, transfer pricing, tax evasion and theft of public monies or assets to mention just a few.

The capacity of these institutions together with the political will to deal with corruption, which I am convinced that under this new dispensation is there, means that Zimbabwe is now committed to the need to eradicate corruption.

On indigenisation, the minister did will when he proposed to amend the law in line with President Mnangagwa’s inaugural speech on the need to guarantee the safety of foreign investments. The indigenisation policy was one policy which seemed like a framework aimed at expropriation of foreign companies thereby dishonouring the country’s commitments to bilateral investment agreements.

Now the policy will apply to platinum and diamond sectors and reserve sectors but with flexibility on the later. For the rest of the sectors, indigenisation will no longer apply. This is sweet music. We must actually have a memorial service for the changes to the indigenisation policy.

This policy was quite significant in starving us foreign direct investment and associated jobs which come with it. However, going forward I see scope for the review of the policy on platinum sector. Hopefully Government can consider the sector’s support to local content policy and value addition and beneficiation as form of indigenisation but in the diamond sector it must stay like that.

On measures aimed at supporting the all important agricultural sector, the minister announced measures such as the local content policy, command agriculture, financial support to soya bean production and cotton and dealing with security of tenure in agriculture.

In terms of support for soya beans, the minister set aside $52,7 million aimed at growing soya beans on 60 000 hectares of land. If one takes average yield of 5 tonnes per hectare as minimum it would mean that this country will produce 300 000 tonnes of soya beans.

This is before we take into account the fact that soya beans is also on Command Agriculture and also individual farmers and contract farming efforts. What it therefore means is that by next year we will move our national output from 21 000 tonnes to national requirements of 600 000 and save about $250 million we were spending on soya imports.

In terms of the local content policy, Government has already started on it under the Ministry of Industry and Enterprise Development. This policy will come up with policy measures aimed at rewarding companies supporting local production, small and medium enterprises development and value chain development through tax incentives.

The Minister of Finance, in the 2018 Budget, undertook to provide these tax incentives. International experience has shown that local content policy is a panacea to trade deficits if well instituted. Clearly, we have an opportunity to deal with trade deficits and we can do it!

On security of tenure, the old regime used land as a political tool hence its lack of commitment to offer security of tenure. This was retrogressive and counterproductive. The move to offer security will help farmers unlock finance. Right now, our land is dead capital because you can’t use it to secure funding. In the same vein, contentious on land such as compensation, productivity issues and multiple ownership of land must be addressed.

On Command Agriculture, I do not want to further elaborate here because we have seen how Command Agriculture has helped us to move from food insecurity to self-sufficiency and considering the fact that Honourable Perrance Shiri who was commanding Command Agriculture is now the Minister of Agriculture we are certain that we are in big business here.

On parastatals reforms, the budget statement was crystal clear that the state owned enterprises must be reformed, commercialised or privatised depending on the circumstances. Some of the parastatals which are beyond redemption will be done away with.

This is an excellent move considering that, based on reports, out of 107 SOE or parastatals few are commercially viable currently. The majority of them are failing to meet wages and salaries late alone service delivery. These state-owned enterprises contributed significantly to budget deficits as they relied on the fiscus.

Against this background, addressing the sticking issues around these parastatals is of paramount importance. As I round up this discussion, I call on Zimbabweans to remain focused and committed in solving our problems as one regardless of our political affiliation.

While it is true that the National Budget cannot make everyone happy regardless of how much resources one has, this budget statement is the best this country got since Independence. Schools of thought who are downplaying this budget are either ignorant or have no clue of basic economic reasoning.

• Dr Mugano is an Author and Expert in Trade and Development. He is the Registrar of Zimbabwe Ezekiel Guti University and Research Associate at Nelson Mandela Metropolitan University and Feedback: Email: gmugano@gmail.com, Cell: +263 772 541 209.

Dr Matibiri

Martin Kadzere Senior Business Reporter
Zimbabwe’s tobacco auction companies have been given the green light to decentralise their operations during the next marketing season starting in March next year in a move that will reduce costs incurred by farmers on transporting the commodity to the market.

Tobacco and Industry Marketing Board chief executive Andrew Matibiri told The Herald Business that all three auction floors —Boka Tobacco Floors, Tobacco Sales Floor and Premier have been granted licences to set up tobacco auction facilities outside Harare.

“Boka will operate from Rusape, TSF from Karoi and Premier from Mvurwi,” said Dr Matibiri.

The programme will also help decongest the existing facilities. However, with the falling volumes of tobacco sold though auction, concerns had been raised whether it would be feasible for auction floors to set up facilities outside Harare.

This year, Zimbabwe produced about 180 million kg of tobacco of which 20 percent was sold through the auction system. The Federation of Farmers’ Union welcomed the move, but urged authorities to ensure there would enough buyers at the new buying centres “to ensure enough competition”.

“This is good for the convenience of the farmer and it will reduce congestion at existing auction centres but we would want to see all buyers represented at the new centres to increase competition,” FoFU chairman Mr Wonder Chabikwa said in an interview.

Zimbabwe, the world’s fourth largest tobacco producer, has a dual marketing system where the produce is sold through auction and contract systems. Some industry players said the gradual decline of the auction system could cause price manipulation in favour of the contractors, which would drive farmers away from growing the crop.

Meanwhile, Dr Matibiri said distribution of tobacco inputs under the Reserve Bank’s $28 million facility to support small-scale farmers has begun. He said the regulatory board had so far distributed inputs to cover 1 500 hectares.

“The total facility can cater for about 22 000ha and we are hoping the target will be achieved,” said Dr Matibiri.

The central bank came up with a $28,5 million facility to support the small-scale farmers to prop up the tobacco auction marketing system. This followed serious concerns raised by some industry players that the collapse of the auction system would lead to massive price manipulation through contract sales.

Zimbabwe’s tobacco auction system used to be the marketing model of tobacco in the world, but tobacco volumes have shrunk as farmers, mostly those who benefited under the land reform joined contract schemes as they did not have money to finance production.

Minister Chinamasa

Livingstone Marufu Business Reporter
GOVERNMENT is targeting 350 000 tonnes of wheat in the next three years to guarantee sufficient domestic wheat supplies and to reduce reliance on imports. Zimbabwe needs about 400 000 tonnes of wheat annually but produced only 65 000 tonnes last year.

Finance and Economic Planning Minister Patrick Chinamasa said the country will save as much as $200 million on wheat imports if it was to meet the target. The targeted output would be the highest mark ever to be produced in this country and would surpass the highest output of 325 000 in 2001. High yields expected in the next three seasons will be driven by highly organised supply of all inputs and electricity.

“The country is targeting 350 000 tonnes of wheat output by 2020 in a bid to save much needed foreign currency into the economy. We expect this year’s output to be around 160 000 tonnes and 200 000 tonnes by next year. In 2019 we anticipate the target to improve by 50 000 tonnes to 250 000 tonnes and this shows a growing economy,” he said.

Zimbabwe had initially projected 200 000 tonnes of wheat but due to the top dressing fertiliser and other small technicalities the output is now expected to be 160 000 tonnes. Farmers with the early planted crop had encountered quelea birds, but Government has committed some funds to deal against those post-harvest losses.

The Command Agriculture programme which started this season with maize production was expanded to include winter wheat, with thousands of farmers now using irrigation facilities to augment rain-fed agriculture. Farmers were provided with all the inputs, as was the case with maize. Stop order will be used under all Command programmes, wheat included.

Upon harvesting, farmers will be expected to deliver an agreed tonnage to the Grain Marketing Board as repayment for the loan advanced to them in the form of inputs such as wheat seed, fertilisers, chemicals and tillage services.

Various farmers with irrigation infrastructure have in the past failed to grow wheat because of lack of financial resources to buy the inputs, a gap that Government has bridged through the Command winter wheat programme.

The private sector invested $100 million for this year’s wheat crop. Sakunda, National Foods, Northern Farming Company, Stay Well Company and CBZ Bank have committed to supporting cultivation of winter wheat.

LONDON. — Central banks in Europe showed continued caution about the region’s economic recovery on Thursday, signalling that they are in no rush to follow the Federal Reserve in steadily raising interest rates despite a rare synchronised expansion across the world economy. The European Central Bank left its interest rates unchanged, even as its new economic projections forecast strong growth for the 19-nation eurozone through 2020.

“The incoming information indicates a strong pace of economic expansion and a significant improvement in the growth outlook,” said Mario Draghi, the ECB’s president, in a news conference.

The ECB’s economists now expect the eurozone’s economy will grow by 2,3 percent in 2018, a big increase from the 1,8 percent growth projected as recently as September. They continue to expect this year to be the currency area’s best since 2007.

However, Mr Draghi said interest rates would “remain at their present levels for an extended period of time” and confirmed the ECB’s plan to continue buying government bonds and other assets until September 2018, but at the reduced monthly rate of €30 billion ($35,5 billion).

The reason for his continued caution is that the pickup in growth has yet to significantly change the outlook for inflation. The ECB’s economists raised their inflation forecast for next year, but still see it staying below the target of just under 2 percent in both 2018 and 2019.

“The news on inflation remains somewhat muted,” Mr. Draghi said.

Like the ECB, the central banks of Switzerland and Norway left their key interest rates unchanged, and indicated that a first move to lift them back to levels that were considered normal before the global financial crisis is some way off. Because much of Switzerland’s exports are destined for the eurozone, the SNB’s monetary policy is heavily dependent on what the ECB does.

“To be very clear, it’s too early to talk about normalisation in the case of the Swiss National Bank,” said Thomas Jordan, who heads the institution.

But there are signs that some of Europe’s central banks are contemplating an earlier start to normalization than previously indicated. Norway’s central bank said it now expects a first rate increase in the autumn of 2018, having previously expected to move in 2019.

Central Banks Timeline

The Bank of England also left its benchmark interest rate unchanged, although it is ahead of most of its European peers, having last month raised borrowing costs in the UK for the first time in a decade.

That is because it faces a unique challenge. Officials fret the country’s planned withdrawal from the European Union in early 2019 is holding back investment, and squeezing the economy’s capacity to produce goods and services.

The BOE’s Monetary Policy Committee said in a statement that it expects to further increase its benchmark rate over the next three years to bring annual inflation, which hit 3,1 percent in November, back to its 2 percent target. Future rate rises are expected to be gradual and limited, it said.

The decisions by European central banks are likely to underline a persistent policy divergence between the world’s major central banks a decade after the onset of the global financial crisis. While the Fed has been gradually nudging up interest rates for the past two years, the ECB isn’t expected to start raising rates until late 2019.

“The stage at which the economic recovery is in the U.S. is more advanced, especially so when we look at the wages behaviour,” Mr Draghi said.

That divergence helps to support a European economic recovery that is at an earlier stage than that in the US—not least by holding down European currencies against the dollar and supporting the region’s exports.

ECB officials are eager to keep their options open amid ongoing economic risks: While the US economy is expected to receive a boost next year from planned corporate-tax cuts, European policy makers are navigating major elections and Britain’s possibly messy departure from the European Union.

The Fed voted Wednesday to raise short-term interest rates for the third time this year, and signalled it would stay on a similar path next year amid a leadership transition.

Hours after the Fed’s move, the People’s Bank of China followed suit, increasing the rates it charges in open-market operations and on its medium-term lending facility. On both sides of the Atlantic, policy makers are wrestling with weak inflation, which has yet to rebound strongly despite strengthening economic growth and employment.

Recent data suggest the eurozone’s economic recovery continues to strengthen and is reassuringly broad. A survey of 5 000 manufacturers and service providers released Thursday suggests the eurozone economy ended the year on a strong note, as eurozone factories had their strongest month since the measure began in 1997.

“The eurozone economy is picking up further momentum as the year comes to a close,” said Chris Williamson, chief business economist at IHS Markit, the data firm that compiles the surveys.

Europe’s caution raises concerns that lingering central-bank stimulus policies could fuel encourage excessive risk-taking by investors or the misallocation of capital to weak firms.

Lena Komileva, chief economist at G+ Economics in London, warns of a “growing risk that this cycle will end in another financial event unless central banks get ahead of the curve.”

In a report published last month, the ECB said it sees the potential for large corrections in global asset prices as investors load up on risky investments even as major central banks dial down their post crisis stimulus policies.

Corrections & Amplifications

Norway’s central bank expects a first rate increase in the autumn of 2018. An earlier version of this article incorrectly said the first increase would be in the autumn of 2019.

Cape Town. — New research has found that inequality in SA has increased with wealth becoming ever more concentrated among the rich. According to the World Inequality Lab, SA is one of the world’s most unequal countries, with 10% of earners capturing 66 percent of the national income.

“For the first time ever, this report examines how global growth has been shared among individuals in the entire world since the 1980s, with a particular focus on emerging countries where inequality data had previously been sparse or non-existent,” said Thomas Piketty, co-ordinator of the report.

Data from organisation showed that in SA, the top 1 percent of earners held 8,8 percent of SA’s wealth in 1987, and had increased their share to 19,2 percent by 2012. The report found that wealth inequality had grown most rapidly in North America, China, India, and Russia, while remaining stable – albeit at high levels – in sub-Saharan Africa.

Average South African income

“The fact that inequality trends vary so greatly among countries, even when countries share similar levels of development, highlights the important role of national policies in shaping inequality,” said Lucas Chancel, general co-ordinator of the report.

“For instance, consider China and India since 1980: China recorded much higher growth rates with significantly lower inequality levels than India. The positive conclusion of the World Inequality Report is that policy matters, a lot,” Chancel added.

The report found that average South African income (in dollar terms) increased from $15 437 in 2000 to $18 578 in 2011, but then declined to $18 079 by 2016. The results match a recent Oxfam SA report that found just three South African billionaires had more wealth than the bottom half of the country’s earners. Those three were identified as retail tycoon Christo Wiese, Glencore CEO Ivan Glasenberg, and Aspen Pharmacare chief executive Stephen Saad.

However, the Oxfam SA figures date from January 2017, before the Steinhoff debacle wiped out a significant portion of Wiese’s wealth. The World Inequality Lab linked wealth inequality to tax avoidance by wealthy individuals.

“The establishment of a global financial registry to record the ownership of financial assets would deal severe blows to tax evasion and money laundering, and would enhance the effectiveness of progressive taxation, which is an essential tool in reducing economic inequality,” said report co-ordinator Gabriel Zucman.

Global wealth inequality looks set to continue its current trajectory if global economic policies remain in place, said the organisation.

“The combination of privatisations and increasing income inequality has fuelled the rise of wealth inequality —within countries and at the global level, private capital is increasingly concentrated among a few individuals. This rise was extreme in the US, where the share of wealth held by the top 1 percent rose from 22 percent in 1980 to 39 percent in 2014,” said Emmanuel Saez, co-ordinator of the report.

Manufacturing giant and distributor of automotive and decorative paints, Nash Paints, became the biggest winner of the just ended Megafest and National Quality Awards held in the capital this week.

Nash Paints was the second runner up for product of the year large entrepreneur with the company executive director Tinashe Mutarisi, being one of the winners for the Individual Awards for Quality.

At Megafest the company got the outstanding Top 2 organisation of the year while Mutarisi got the Outstanding Men of the Year 2017 Special recognition in entrepreneurship and leadership excellence award. Mutarisi said it was an honour to get an award for quality.

“Nash Paints is getting recognition in the country. Being one of the companies that scooped top awards at National Quality Awards as well Megafest for the second time we are humbled. For 2018, we are going to make it to our valued customers so that we continue to grow our brand,” he said.

He said they were making efforts to expand their business empire as they seek to open another plant in Zambia early next year.

“I am happy that we have managed to get top gongs during the course of this year, making us one of the biggest companies in the country. We continue to excel as a company and our target is to get into the region by next year,” he said.

Last week Mutarisi was awarded with outstanding businessman of the year at Megafest awards held at Cresta Lodge. Mutarisi said receiving awards was a sign of hard work from Nash Paints. He said they work as a team at Nash Paints and they will continue to serve their market with quality products.

“We will continue to work as a company to satisfy our market. We always thrive on excellence as well as making sure our products are up to standard,” he said.

Eng Shamu

Business Reporter
DIVERSIFIED communications firm, TelOne, recorded a 6,3 percent jump in revenue in the third quarter of 2017 largely driven by voice and Internet services, the postal and telecommunications sector performance 3rd Quarter Report shows.

The report, which is compiled by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) on a quarterly basis, indicates that voice contributed 50,8 percent to revenue followed by internet and data (36,5 percent). Other revenue heads brought in a combined 12,7 percent, with fixed monthly submissions leading with 10,8 percent; infrastructure leasing (1,7 percent) and connection charges (0,2 percent).

“TelOne registered a 6,3 percent increase in revenue in the third quarter of 2017,” reads the report.

In the previous quarter, TelOne’s revenues were $28,5 million, having come down 2,2 percent from $29,2 million in the first quarter. Revenues are declining owing to a fall in the contribution of voice to TelOne’s revenue generation, as many people have turned to Over-The-Top services (OTTs) such as WhatsApp, Facebook, Twitter and Viber, to communicate.

The Potraz report says TelOne continues to face competition from mobile phone operators – Econet Wireless Zimbabwe, NetOne and Telecel, which have a combined 13,8 million active mobile subscribers.

Total voice traffic processed by TelOne was 132,1 million minutes, representing a 1,7 percent decline from 134,4 million minutes recorded in the previous quarter. In the quarter under review, active fixed telephone lines declined by 2,3 percent to reach 260 183 from 267 034 recorded in the second quarter of this year.

Despite the decline in active fixed telephone lines, fixed teledensity remained at 1,9 percent, where it was in the second quarter. It is now expected that voice revenues might marginally increase going forward as TelOne presses ahead with its roll-out of fixed internet such as ADSL to rural institutions such as health and educational centres.

However, TelOne’s capital expenditure increased by 67,6 percent in the 3rd quarter, as it continues with investments in the broadband sector, as it remodels its business to rely on data for more revenues.

The move has been necessitated by the unrelenting slide in telecommunications voice revenues across the world due to the rise in OTTs. TelOne, which recently launched its Data Centre project, recorded a sharp voice revenue decline of 43 percent between 2013 and 2016.

Indications are that the revenue head will remain under pressure as the bulk of the population particularly youths, has adopted new media platforms given their attendant low costs.

Broadband is expected to steer the company to profitability in the next two years. TelOne is targeting to increase broadband contribution to 48 percent of total revenue by 2020, up from the current average of 20 percent.

Voice revenue would be deliberately collapsed to 43 percent from the current 51 percent and other additional revenue streams such as the Data Centre and cloud services for enterprise business, are expected to contribute 8 percent.

TelOne board chairman Engineer Charles Shamu, recently told The Herald Business that they are confident the technology transformation roadmap buttressed with new product and service offerings, supported by reliable Internet Protocol (IP) and strong human capital and customer centric skills, will bring the company back on track.

It is expected that the convergence of services and miniaturisation of systems will create a lot space in TelOne’s exchanges. The company has three Data Centres in Mazowe, Harare and Bulawayo.

The Data Centres at Harare Main Exchange and Mazowe Earth Station, come with redundant power and air-conditioning, fire detection and suppression, biometric and card access controls, 30 equipment racks and a host of cloud services capabilities.

TelOne has broadband capacity of 105 000 ADSL and fibre to the Home combined, and the figure is expected to grow by 100 percent and reach 250 000 next year.

Manuela Rebelo

BEIRA. — The central Mozambican port of Beira has more than tripled its capacity to handle containers, reports said on Wednesday. Reports from Mozambique said Deputy Transport Minister Manuela Rebelo on Tuesday inaugurated five new access lanes to the container terminal.

The increased facility of movement to and from the terminal, and a three hectare increase in the size of the terminal will allow it to handle 700 000 containers a year, up from the current 200 000.

Dutch company Cornelder, which manages Beira port, invested $6,2 million in the new access lanes, which are intended to increase the competitiveness of the port, and its capacity to attract traffic from other countries of the Southern African Development Community region, such as Zimbabwe, Zambia, Malawi and the Democratic Republic of Congo.

Rebelo said it had always been the government’s dream to make Beira a competitive port, and to ensure a continual increase in traffic through the port. She urged Cornelder to continue its investments so as to reduce the time taken to handle cargo, and to charge “competitive tariffs”.

Speaking at the same occasion, Corndelder managing director, Jan de Vries, said the new access infrastructure would increase the terminal’s capacity to receive containers, particularly at peak periods.

Previously just one road led into the container terminal with one lane in each direction, a situation which caused congestion. De Vries said the inauguration of the new roads in the port, coincided with work to deepen the port’s access channel.

Dredging began last month and will continue until April next year. The deeper access channel will allow ships of up to 60 000 tonnes to dock at Beira at any time of day or night. — New Ziana.

Attorney-General Prince Machaya

Happiness Zengeni in BRISBANE, Australia
Zimbabwe is committed to reforms currently being introduced by the Kimberley Process that seek to improve the global diamond certification scheme. This comes as the Kimberly Process resolved to create an ad hoc Committee on Review and Reform at the just ended KPCS plenary meeting in Brisbane in Australia.

The main task of the ad hoc committee would be to review the core document of the KPCS in order to improve it both administratively and financially. This follows various past interventions from members and participants to the KP about the importance of reform in order to continue the grouping’s mission to deliver the duty of care owed to communities and consumers with respect to conflict-free diamonds.

“As Zimbabwe, we go along with the review process agreed on during this Plenary, which we believe will not cause any problems to the diamond sector in the country. Already we are not involved in conflict diamonds.

But what we can do is to improve our systems further and the challenges we are facing in the expectations that we will continue to be a compliant member in the KPCS,” said Zimbabwe’s head of delegation to the meeting Attorney General Advocate Prince Machaya.

The Committee is expected to begin its review in the first quarter of 2018. It will consider how to make the language and intent of the core document as clear and concise as possible adding greater clarity between the use of terms employed by both the scheme documents and other external documents, such as commercial or customs documents. Already the Plenary approved changes to the term “Country of Origin” will be replaced by the term “Country of Mining Origin”.

The committee, to be chaired by India and deputised by Angola, will also consider how to incorporate improved and efficient means of implementation of the Kimberley Process embodied in administrative decisions since the inception of the Process that are not reflected in the Core Document and to consider how to strengthen the scope of the Kimberley Process.

Adv Machaya also said welcomed the agreement to undertake a needs assessment for a voluntary multi-donor trust fund, with a view to making a proposal as required, to support KPCS participation from least developed countries, civil society and experts, including the scope and eligibility of such support, governance, administration and audit.

The KP meetings also resolved to the conditional admission of Gabon as a Kimberley Process participant. To be admitted, Gabon would need to enact the required legislation related to the fulfilment of the KPCS requirements and notifies the CPC chair. In addition, by March 2018, the country should have a comprehensive roadmap of detailed activities to be carried out within the 12 months, submitted to Committee on Participation and Chairmanship and Working Group on Monitoring chairs.

The Plenary also resolved to set up a dedicated Secretariat. The European Union is the next chair for the KP family for 2018 and will be deputised by India.

ZIMRA offices

Business Reporter
The Zimbabwe Revenue Authority (Zimra) has surpassed its November 2017 revenue target by 30 percent to $352,24 million from $269,83 million driven by strong performance in collections from the Value Added Tax revenue head, data from the authority reveals.

Net collections were 24,29 percent above target. Zimra corporate communications manager, Canisio Mudzimu, told The Herald Business that revenue collection enhancement measures such as systems automation, audits and anti-corruption initiatives were bearing fruit.

He said measures to improve taxpayers’ awareness of their obligations and rights under fiscal laws were paying off, as the authority continues to surpass monthly targets.

“Gross collections for the month of November amounted to $352,24 million against a target of $269,83 million, which translates to a positive variance of 30,54 percent. Net collections of $335,38 million were 24,29 percent above target. The November 2017 net collections grew by 34,21 percent from the $249,90 million that was collected during the same period last year,” said Mr Mudzimu.

While presenting the 2018 National Budget, Finance and Economic Planning Minister Patrick Chinamasa, lauded initiatives implemented by Zimra to enhance revenue collections and he acknowledged that the measures were key to the improvements in revenue performance recorded during the year.

“Tax revenue collections by Zimra have been running at levels above 2017 Budget targets, with total receipts to November 9 percent higher than envisaged . . . Tax administrative measures instituted in the recent past are also facilitating improved revenue collection in 2017,” said Minister Chinamasa.

Some of the strategies that Zimra has implemented include intensified information dissemination, automation, expansion of the tax base, fighting corruption and enhancing operational efficiencies. Tax heads that spurred November collections were Value Added Tax (VAT), Customs Duty and Excise Duty. Zimra believes the positive performance is due to improved awareness by the taxpaying public of their rights and obligations under tax laws.

Revenue performance in the first 11 months of 2017 was higher than the same period in 2016, except for April and June. Zimra’s board believes that current collections are still a tip of the iceberg and is determined to stir up management to double the current measures to ensure increased compliance.

Lifestyle audits are also expected to continue, covering Zimra officials and high-profile individuals to ensure that taxpayers account for their incomes and pay their fair share of taxes as a contribution to the national economy.

The revenue measures that are being proposed seek to consolidate the gains realised by local industry through support measures provided by Government to improve the tax administrative system, thereby enhancing tax collection, as well as provide relief to Taxpayers.

The measures also seek to facilitate formalisation of informal business operations. More so, Government has started rolling out of electronic cargo tracking system to all borders as well as harmonising container depot operations to 24 hours in line with the border post operating hours.

Zimra will also speed up the connection of mobile scanners to ASYCUDA World Server in order to enable real time entry and timely acquittal of goods and implementation of the e-customs initiative for the advance clearance and online payment of relevant charges for tourist motor vehicles.

Jeffrey Gogo Climate Story
Anna Brazier’s Climate Change in Zimbabwe: A Guide for Planners and Decision-Makers is a factual account by experts clearly explaining complicated issues on the challenges and solutions to climate change here, and elsewhere.

The 253-page book, a revised and updated version of the first edition of 2015 published by German non-governmental Konrad-Adenauer Stiftung in partnership with the Zimbabwe Government, involves experts explaining complex climate sub-topics in simple, clear and captivating form.

Using a series of pictures, graphics, and information boxes, Brazier, a Harare-based sustainable development consultant, outlines climate change in basic, everyday language that is easy to understand, capturing the major aspects of the science, from causes to impacts, adaptation to mitigation, and climate politics to funding.

In her own words, “the book is written in English.” She light-heartedly laughed off the often cryptic nature of scientific texts, at the book launch attended by key climate interest groups, including Zimbabwe’s climate change director Washington Zhakata and German Ambassador Thorsten Hutter, in Harare on December 12.

Through case studies, supported by colour-coded text that draws attention to important messages, Brazier tells a story of the Zimbabwean experience with the cross-cutting issues of climate change, a story of struggle, devastation, resilience, but also opportunity.

She employs a method long thought redundant, in the most effective way. The beginning of each of the 8 chapters is preceded by an introductory paragraph, summarising the contents of that specific section.

Similarly, a brief appears at the bottom of each chapter, recapping the issues discussed. This is an important technique, designed to drill the message home, by all means, as well ensuring that if one missed the point at the start, they won’t miss it for a second time, at the tail.

Brazier makes attempts at making climate change look human, even though remotely at times, exploring the local and global impacts of the phenomenon while juxtaposing such with detailed discussions on the science behind climate change and its effect on human health, economies, communities and the natural environment.

For example, in the Third Chapter, the author explains how a 2ºC or 3ºC temperature increase in this Century, as is largely expected, relates directly to the individual.

She says: “A temperature change of a few degrees does not sound like much. Our bodies can hardly detect the difference between a 0,5ºC and 1ºC, so it can be hard for us to understand why a two or even three degrees would make such a difference.”

“However, the earth is very sensitive to changes in climate,” said Brazier.

The book is predominantly targeted at lawmakers and policymakers, but can be useful to all. By adopting pronouns such as “our”, “we” and “us” to describe climate issues affecting Zimbabwe, the reviewers take ownership of climate change, refraining from the trappings of turning the science into the familiar, detached “theirs” and “ours” narrative.

The terminology makes the book a truly Zimbabwean product, written by Zimbabweans for Zimbabweans, contrary to the often alienated, generic views expressed in global reports such as those produced by the UN Panel on climate change.

Minor grammatical and factual errors such as adding an ‘s’ to a word that needed it not, or referring to contributing reviewer Elisha Moyo as Elijah Moyo, or even claiming Zimbabwe generates 80 percent of its electricity from Kariba hydropower station, have potential to lose the climate change greenhorn.

But on the whole, do not overshadow the important message that the book seeks to put across.

It is a useful addition to the growing body of literature on climate change in Zimbabwe, particularly packaged with law and policymakers in mind, two constituencies that have been criticised for slowing down action on climate change due to their lack of familiarity with the science.

Moreover, it could not have been better timed.

The book comes at a time Zimbabwe is going through a unique political and economic reawakening that could have massive implications for the climate sector, moving forward.

There are promises it will be revised for the third time, and perhaps a fourth, to keep track with the fast-paced lane of climate change, where new evidence is emerging rapidly, almost on a daily basis.

Also, there are those who think it can be further simplified, or expanded to include detail on some aspects around the role of religion in climate change, which is missing from the current text, and others.

But then again, the book is only a guide, and has been endorsed by the Minister of Climate Oppah Muchinguri Kashiri.

Brazier said the book could never have been exhaustive and will require continuous revisions and updates.

The author expects that “climate change will test the resilience of the Zimbabwean people”, and warned that “those in rural areas, especially children, women, and the disabled among the rural poor, will bear the brunt of the changes.”

The latest version was read and reviewed by figures in the environmental, business, civic society and academic communities, including Mr Zhakata, the head of climate change in the Environment, Water and Climate Ministry, and professors from Chinhoyi University of Technology and the National University of Science and Technology.

God is faithful.

 jeffgogo@gmail.com.

EU leaders have ruled that sufficient progress has been made in the first phase of Brexit talks, allowing negotiations to move on to discussions about Britain’s future outside the bloc.

While some questions over the three opening issues that have so far dominated the negotiations still remain, a joint proposal from the UK and the European commission to move the talks on has been accepted.

The president of the European council, Donald Tusk, tweeted: “EU leaders agree to move on to the second phase of #Brexit talks. Congratulations PM @theresa_may.”

The leaders have also adopted a set of guidelines spelling out their terms for a transition period, and a rough timetable for the next few months.

Initially, the second phase of Brexit talks will be dominated by discussions over the transition period, under which the UK will continue to abide by EU law for roughly two years, but not have a role in any decision-making institutions.

The EU27 has agreed to move on to discussions about Britain’s future outside the bloc. Follow the latest developments

Theresa May has been given three months to get agreement within the cabinet on the UK government’s vision of a future trade deal, after which substantive talks on the future relationship will begin.

In response to the development, the prime minister tweeted: “Thank you to Presidents @JunckerEU and @donaldtusk. Today is an important step on the road to delivering a smooth and orderly Brexit and forging our deep and special future partnership.”

The Brexit secretary, David Davis, tweeted: “Today is a good day for Brexit and an important step for Britain. Thanks to hard work and determination, we have reached an important milestone and have achieved #sufficientprogress. There is still lots of work to come but we are ready for the next stage.”

In a joint statement, the leaders of the British Chambers of Commerce, Confederation of British Industry, Federation of Small Businesses, Institute of Directors and the manufacturers’ organisation EEF warned that jobs were at risk unless swift progress was made in the second phase.

“It is our collective view that the transition period must now be agreed as soon as possible, to give businesses in every region and nation of the UK time to prepare for the future relationship,” they said.

“Further delays to discussions on an EU-UK trade deal could have damaging consequences for business investment and trade, as firms in 2018 review their investment plans and strategies.”

Negotiators from the UK government and the commission have spent nine months wrangling over the opening issues in the negotiations: the rights of the 4,2 million UK and European citizens who have made lives in each other’s territories; the divorce bill; and the thorny issue of how to avoid a hard border with Ireland once the UK leaves the bloc.

Last Thursday night the German chancellor, Angela Merkel, encouraged leaders to give May a round of applause as the British prime minister ended a short address to a leaders’ dinner.

May had sketched out Britain’s hopes for the second phase including swift agreement on the terms of a transition period to give British and European businesses some certainty about the terms of trade after March 29, 2019, when the UK leaves the bloc.

Arriving at the second day of the summit in Brussels last Friday, Jean-Claude Juncker, president of the European commission, said the applause had been deserved. “Some of us thought, including me, that she did make a big effort and this has to be recognised,” he said. “The second phase will be significantly harder than the first and the first was very difficult.” -The Guardian

Africa Moyo Business Reporter
The mining sector remains the most favoured investment portfolio in the country, with 57 applications out of 153 approved in the first 11 months of the year, statistics from the Zimbabwe Investment Authority (ZIA) reveal.

Zimbabwe has known reserves for 66 minerals including gold, diamonds, platinum, chrome and asbestos, among others, making the mining sector key attraction for investors particularly foreigners.

From January to November 30, 2017, ZIA approved investment proposals worth $1,5 billion, which is slightly below what was achieved in the same period last year.

The decline is largely attributable to the huge energy investment worth $1,4 billion for the expansion of Hwange Thermal Power Station.

ZIA therefore says it is unfair to compare the value of investments approved this year and last year in the first 11 months. Of the approvals processed this year, the mining sector had 57, with a combined value of $576 million.

Investors that have expressed interest in the country’s mining sector are from 13 countries including Bulgaria ($156,6 million); China ($163,6 million); the St Kitts & Nelvis ($5,6 million); Sudan ($800 000); United States of America ($13,2 million); United Kingdom ($80,4 million); Singapore ($52,5 million) and South Africa ($4,7 million).

The mining sector is Zimbabwe’s biggest foreign currency earner, raking in $1,7 billion in 2016. The Chamber of Mines of Zimbabwe mining sector report says $400 million is required next year for the sector to fund capital projects.

Apart from the mining sector, more investors are interested in the manufacturing sector, in which 48 approvals worth $480 million were also made. Investment projects worth $152,4 million were also approved for the services sector.

Other sectors that drew the attention of investors were construction (six); agriculture (six); energy (two); transport (one).

Approvals in the manufacturing sector are worth $480 million; agriculture ($12,8 million); construction ($106 million); services ($152,4 million); tourism ($16,8 million) and transport ($300 000). But despite recording two approvals, the energy sector’s projects are worth $162,5 million, indicating that the sector is capital intensive, and therefore not a favourite for many given the challenges associated with obtaining funds in most parts of the world.

ZIA chief executive officer Mr Richard Mbaiwa, told The Herald Business last week that: “From January to November 30, 2017, so far we have accepted 153 investment proposals with a total value of US$1,5 billion. For us it is quite a significant amount . . . manufacturing has many projects but their value doesn’t compare with energy.”

Investor appetite is expected to grow in the country driven by a deliberate attempt by Government to improve the ease of doing business. So far, eight laws out of 14 — including the Public Procurement and Disposal of Public Assets Act and the Movable Property Securities Interests Act — have been gazetted as part of addressing the doing business environment. President Emmerson Mnangagwa said foreign direct investment would be key, together with agriculture, in turning around the fortunes of the economy.

LONDON — The US stock market sustained its upward march last Wednesday as investors played down fears that the Republican loss of a Senate seat in Alabama may reduce the chance of passing key legislative proposals, including tax reform.

The S&P 500 rose 0,2 percent to 2 668 in morning trading in New York, led by a 0,6 percent gain for industrial stocks and a 0,5 percent rise for the healthcare sector. The Dow Jones Industrial Average moved 0,6 percent higher to 24 643 and the tech-heavy Nasdaq Composite gained 0,3 percent to 6 879.

Roy Moore lost to democrat Doug Jones in Alabama last Tuesday night, cutting the Republican’s Senate majority to 51 seats to the 49 for the Democrats, as efforts to pass sweeping tax reform proposals enter the final stages. However, investors brushed off the result, arguing instead that it should prove a catalyst to pass tax reform before the year is out and the Mr Jones takes his seat.

“If anything it rushes the tax reform through this year before the seat officially changes hands,” said Peter Tchir, chief macro strategist at Academy Securities.

“It creates more impetus to get things done quickly.”

Tax reform is seen as a boon for stock markets, lowering the statutory tax rate and allowing companies to repatriate overseas cash more cheaply.

The placid stock market reaction to a significant political event is typical of 2017.

After surging during the market ructions during the 2008-09 financial crisis, volatility has remained muted this year and by some measures has dipped to its lowest level on record.

The average difference between the intraday high and low for US stocks hit a new low this year, according to research from Howard Silverblatt, a senior analyst at S&P Dow Jones Indices. The high-low spread sank to 0,1457 percent on November 24 — the lowest for any day since Mr Silverblatt’s records begin in 1962..

The development is set to increase the size of land under irrigation with farmers producing crops all year round

Livingstone Marufu
Government has earmarked $52 million for development and rehabilitation of irrigation infrastructure to improve productivity on farms all year round. The development is set to increase the size of land under irrigation with farmers producing crops all year round.

A senior official in the Ministry of Lands, Agriculture and Rural Resettlement who spoke on condition of anonymity told The Herald Business that both small scale and large scale farmers will benefit from the $52 million resource envelope.

Zimbabwe wants to set up more irrigation schemes to consolidate food security gains achieved by Special Maize Production Programme known as the Command Agriculture.

“In the 2018 budget we have been allocated $52,1 million for irrigation rehabilitation and development, targeting at least 200 hectares per district to be implemented annually over the next 10 years.

“This should create the necessary resilience to rainfall variability, critical for food self-sufficiency and to improve on cooperation and coordination within the various spheres of Government.

“A Project Steering Committee will be set up, comprising key stakeholders, to oversee the overall implementation of the programme,” said the official.

Zhove Irrigation Project that will be funded by the Kuwait Fund for Arab Economic Development, will also get its chunk from the investment.

In addition, development partners are also supporting rehabilitation and development of a number of irrigation projects under the following facilities : The Smallholder Irrigation Revitalisation Project, co- funded by the International Fund for Agricultural Development (IFAD), OFID and Government will disburse $6,9 million towards the revitalisation and expansion of Musikavanhu, Sebasa, Chikwalakwala, Exchange and Rupangwana irrigation schemes.

The Food and Agriculture Organisation (FAO), with support from the European Union, will disburse $2 million for ongoing works at 20 irrigation schemes in Matabeleland South and Manicaland provinces.

An amount of $3, 3 million will be disbursed by the Japanese International Cooperation Agency (JICA), for ongoing works at Nyakomba Irrigation Project Block A. Through the Swiss Agency for Development Cooperation, FAO will also disburse $3,4 million towards 14 irrigation schemes in Masvingo province.

Government also undertook Public Sector Investment Programme (PSIP) Projects in areas such as Chiduku – Tikwiri in Manicaland, Chitora in Mash East and Fuwe Panganayi in Masvingo to shield farmers from drought.

The reasoning behind these low cost irrigation schemes is to help old resettlement, communal and A1 farmers to grow crops all year round.

Government is pushing to move the current irrigable land of around 150 000 hectares to 300 000 hectares under irrigation in the next three years.

Of the irrigable land 50 000 ha is under sugar estates and the remaining 100 000 ha comprises of: A1 and A2 farming sectors, small holder and communal sectors, large private sectors and Arda estates.

Having secured $6 million from Spain, the country is negotiating for a further $60 million facility to procure more and bigger irrigation equipment from other European countries.

Low cost irrigation equipment continued to be supported through cordial relations that Zimbabwe has with China, Russia, India, Spain, Brazil and Belarus.

Irrigation facilities will be extended to every strategic crop and livestock as part of efforts to achieve the desired results in all areas of supply chain.

Of the More Food for Africa Programme, Brazil irrigation scheme has a $98 million facility and Government has already mounted $69 million irrigation schemes across the country.

The programme is mainly benefiting A1 and communal farmers to enhance their tonnage per hectare.

Zimbabwe has extended the Brazil More Food for Africa $98 million irrigation scheme to mission schools, churches and prisons, among other institutions under Phase Two of the programme as the food security net is cast wider.

Further, disbursements under the facility are conditional upon utilisation and repayments by benefiting farmers.

Government is still negotiating for agriculture equipment suppliers to provide $30 million worth of implements to kick start various irrigation projects in the last quarter of the year.

Dr Gono

Business Reporters
BULAWAYO has set up a committee to drive implementation of Special Economic Zones (SEZs) model in the city as part of efforts to lure investors and revive ailing industries.

The city has already been designated as a manufacturing SEZ by Government alongside other sister zones in the country that include Sunway City in Harare, Victoria Falls and Tokwe Mukorsi in Masvingo.

The new committee is made up of officials from different ministries, the Bulawayo City Council and captains of industry and commerce. Bulawayo Town Clerk, Mr Christopher Dube and United Refineries Limited chief executive officer, Mr Busisa Moyo, have already been appointed as members of the Special Economic Zones Authority (SEZA) board, which is led by former RBZ Governor, Dr Gideon Gono.

Association for Business in Zimbabwe (Abuz) chief executive officer Mr Victor Nyoni has called on businesses in Bulawayo to embrace the SEZs initiative.

“In his 2018 budget Finance and Economic Development Minister Patrick Chinamasa talked about Bulawayo being designated a Special Economic Zone (SEZ) area. A SEZ committee has already been put in place and Abuz is part of this committee,” said Mr Nyoni.

“Through these committees there is need for a serious conversation on how the city can attract both local and foreign investment. Part of the issue is to seriously talk about is the role played by the Reserve Bank of Zimbabwe (RBZ) and all other banks in the city.”

Confederation of Zimbabwe Industries (CZI) Matabeleland Chapter president, Mr Joseph Gunda, has also confirmed formation of the local SEZs committee to which the industry body is a member.

The Bulawayo City Council has already come up with a proposal incentive package that includes tax holidays for investors under SEZs. It has also identified five areas, including serviced stands, where SEZs operators may operate from.

According to statistics from the World Bank, there are more than 3 000 projects taking place in SEZs in 135 countries worldwide creating more than 68 million jobs and generating $500 billion worth of trade.

The implementation of SEZs took centre stage during last week’s 2018 National Budget review dialogue organised by The Chronicle Business. In his address at the event The Chronicle acting general manager Mr Shadrack Chikamhi challenged businesses in the city to work together to reverse de-industrialisation and help restore Bulawayo to its former glory.

Bulawayo Central House of Assembly Member Ms Dorcas Sibanda who also attended the event said industry revival in the city would not come on a silver platter unless business associations aggressively lobbied Government to craft policies they desire.

“Policies are man-made by you. According to the Constitution, you have the mandate and right, we are here for you. Policies can be played around with to suit your needs,” said Ms Sibanda.

“You need to mention to policy makers, you need to tell them what you want.

“You say this is what we want to grow our cake. Growing that cake is everyone’s job, if we sit back and say this is not our duty but that of a certain political party.”

The legislator urged businesses to read the budget statement thoroughly and make further recommendations before the document was voted into law by Parliament.

Cotton production in the country increased by more than 150 percent

Business Reporter
ZIMBABWE’s cotton exports rebounded sharply last year, buoyed by the Presidential Inputs Scheme, which saw production of the crop increasing by more than 150 percent.

Cotton used to be one of the country’s largest foreign currency earners before production slumped due to viability challenges resulting from inadequate funding and poor prices.

The Cotton Company of Zimbabwe, which is administering the three-year Presidential Inputs Scheme said foreign exchange receipts from lint rose 344 percent to $20 million from $4,5 million realised in the previous year.

National cotton output increased to 72 000 tonnes, up from 28 000 tonnes produced this year, according to the Agriculture and Marketing Authority. Production of the “white gold” slumped to about 28 000 tonnes last year, the lowest since 1992.

Last year, Cottco produced 75 percent of the total output with 155 000 farmers having participated.

“We generated about $20 million from lint exports and we are looking forward to another better season,” Cottco managing director Mr Pious Manamike told The Herald Business last week.

Zimbabwe is on a drive to boost exports through diversification and the cotton is among key commodities with high potential of generating the much needed foreign exchange.

Some export incentives have been put in place by the Government, through the Reserve Bank of Zimbabwe to encourage production of goods that can be exported.

Meanwhile, Mr Manamike said the 2017/18 season had progressed well in terms of inputs distribution.

“The season underway will be bigger than last season. The inputs package covers 400 000ha with each farmer getting a package for one hectare,” said Mr Manamike.

This year’s package is made up of 8 000 tonnes of seed, 40 000 tonnes of basal fertiliser and 20 000 tonnes of top dressing. The first tranche of inputs being planting seed and Compound L fertilisers have been disbursed to 90 percent of the targeted 400 000 farmers.

Top dressing fertiliser has been delivered to the distribution points and is awaiting disbursement. Disbursements would commence once crop establishment has been validated.

“Crop establishment is ongoing as the respective catchment areas start receiving meaningful rainfall. All things being equal, our cotton output will grow,” said Mr Manamike.

The first consignment of conventional chemicals required during the early stages of the cotton plant have been received and dispatched to the distribution points, he added.

Some farmers who spoke to The Herald Business during recent visits to Sanyati, Gokwe and Chiredzi expressed satisfaction with the progress on inputs distribution, saying they were looking forward to a much better season.

“We received all critical inputs on time and we have managed to plant. The programme is moving on well and we are hoping for a much better season,” said Bernard Masara of Gokwe.

Mr Solomon Mutasa of Sanyati said while some farmers were yet to plant because their areas had not yet received the rains, most of them had received inputs.

“We are only for the rains, but we have received most of the inputs that we need at this point of time,” he said.

A farmer in Pathway, Mr Noah said the programme had managed to lure back many farmers who had abandoned the crop due to exploitative credit schemes by private companies.

In the Lowveld, farmers applauded the Government for the programme, saying it had improved livelihoods of many villagers.

“Cottco has played its part (in terms of timely distribution of inputs) and we are very happy.

“It is now up to us to deliver and we are just hoping we will receive good rains as we did last season,” said Tapera Chakwesha of Magumire village in Chiredzi.