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Xmas party for Aspindale stand holders

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Africa Moyo Property Reporter
ASPINDALE Park held a Christmas party for its housing stand holders last Saturday as part of efforts to bring them together for the first time and potentially make them familiarise with each other. Held under the theme, “Meet your neighbours this Christmas”, the party attracted several beneficiaries under the housing project.

A raffle conducted later in the day saw a stand holder, Kennedy Mudavanhu, winning a 200 square metre stand, as part of Aspindale’s corporate social responsibility programme. Head of marketing, Lucy Tandi, told Herald Property yesterday that: “This was a ‘Meet your neighbour Christmas party’ where we wanted Aspindale Park residents to formally meet for the first time as one big happy community, as we seek to build ‘a community like no other.

“We chose to give a stand to a stand holder as part of our corporate social responsibility programme. Charity begins at home, so giving back to our residents was our initiative towards our CSR. We have more CSR programmes to come.” Aspindale Park has already won a CSR award from the Harare Metropolitan Province business desk in recognition of its efforts towards building better communities in the country.

The award was handed over on December 8. The Aspindale Park aspires to be the best scheme in the country. It has so far obtained a certificate of compliance from the City of Harare, paving the way for the allocation of title deeds to beneficiaries of residential stands under Phase One. Aspindale Park has also entered into an agreement with five banks — the National Building Society (NBS), FBC, Cabs, ZB Bank and Stanbic — which are now set to assist beneficiaries of stands with mortgages.

Phase One is now ready to build and at the moment, they are working on sewer, water and culverts for each residential stand while a security fence is also being erected. Phase One has 382 stands, while servicing of stands under Phase II — which has 400 stands — is also underway. Ms Tandi said Aspindale Park is expected to start servicing stands under Phase III of the project next year.

The whole project has 1 200 stands, and uptake of the stands is expected to rise significantly in the next few months driven by mortgage facilities that the company has organised with five banks. The mortgages vary but run up to 25 years. Aspindale Park has completed its show house — a three bedroom, two bathroom house on a 200 square metre stand.

The show house is aimed at showing customers what their future homes would look like. Other stands will measure 360 square metres. The Aspindale Park project is already setting a new standard for development in the country. It is located in a prime area just 8km from Harare’s Central Business District.

The stands are serviced to the highest quality including tarred roads, sewer, water and Zesa connections as well as additional luxury items such as security fence around the development, solar street lights, and planting of trees. Aspindale Park says it is determined to make its housing project one of the best developments in Zimbabwe and rival any such projects elsewhere in the world.

Apart from mortgages, there are a number of payment plans ranging from one to five years, which potential customers can consider. The Aspindale Park project is a 56 hectare development that will have two schools, churches, a clinic, retail space. City of Harare has already approved the development plan.


Peri-urban challenges require scientific solutions

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Ugandan and Australian Researchers have called for supported research on urbanisation challenges in order to come up with scientific solutions

Ugandan and Australian Researchers have called for supported research on urbanisation challenges in order to come up with scientific solutions

KAMPALA — Ugandan and Australian Researchers have called for supported research on urbanisation challenges in order to come up with scientific solutions. Currently, they are researching on urban and peri urban issues linked to food security, sanitation, rural immigration and all other challenges related to rapid population growth in Uganda and Africa in general.

On Monday, while speaking during an International conference on urbanisation and its impact on Peri-urban water and food security in Africa, Prof. Elly Sabiiti the lead convener, said Makerere University is collaborating with several universities in Australia to see how best the challenges can be addressed.

The conference under the theme: Developing research collaboration and capacity building, the Urbanisation and its impact on Peri-urban Water and Food Security in Africa, was intended to share learning experiences from Australia and Africa on peri-urban water management and food production. Other objectives were to encourage an open dialogue on ways to strengthen institutional capacity and framework for effective management of peri-urban landscapes and identify areas for research collaboration and develop a joint research proposal for a longer term research collaboration.

“We have a lot of slums coming up; we have the issue of limited food for the increasing population of Kampala. People were farming in Kampala and this culture has remained, but we need to look at it in a modern way to make sure that it is not replaced by huge buildings,“ Sabiiti said. He observed that people who are born in urbanising areas and they are still around have a challenge of infrastructure coming up which is displacing and pushing them away from the city.

“We cannot avoid urbanisation because we need cities, roads and good drainage. But now, when it rains here, the water floods the city. This is caused by agricultural waste and polythene thrown into the drainage system,“ he added. He said such challenges require scientific solutions.

“Kampala is expanding, but there is a limit of how much it will expand. In the end, you have to deal with a huge population co-existing with farmers, industrialists, and businesses people,” Sabiiti said. The collaboration will contribute knowledge through research and can be used to make good policies for better planning. Prof. Basant Mahenshwari from Western Sydney University, said: “This collaboration with Makerere will help to share experiences from Australia and Africa and come up with ideas and learn from each other and identify what can be done to further capacity building and research“.

“In western Sidney University, we have designed a natural water line for food production and if this can be done in Africa, it will help keep the environment clean and hold the ecosystem much more sustainably. When you don’t manage waste it can pollute the soil, ground water, rivers and lakes which can have very devastating effects but, if we can manage all this, it can be used in peri-urban areas for food production and its sustainability,” he added. — NewVision

NSSA records $165m profit

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Africa Moyo Business Reporter
The National Social Security Authority (NSSA) is expected to cap a stellar year with a profit of over $165 million for the period to December 31, 2017. The profit is driven by the organisation’s thrust on delivering value for pensioners through various strategies including realigning the labour-force. The profit will be $65 million – representing 59 percent – more than the $98 million recorded last year.

NSSA board chairman Robin Vela, told The Herald Business yesterday that a culture of hard work and the restructuring exercise, which saw the staff head count coming down to 120, contributed to the organisation’s good performance this year.

“Profit for the year to 2017 will be in excess of $165 million compared to $98 million for the year to 2016. More importantly, the assets of NSSA are up from $1,2 billion in the year to December 31, 2016 to $1,4 billion in the year to December 31, 2017. Investment income is also up to $77 million in the year to December 31, 2017 from $20 million in the year to December 2016.

“All this was achieved due to the new philosophy of focusing on delivery by all involved in NSSA. The restructuring exercise is starting to bear fruit,” said Mr Vela. The new NSSA board members – who took office in 2015 – embarked on a massive restructuring, which saw the sacking of five top executives headlined by the then general manager James Matiza.

The executives were fired over a raft of allegations including plunging the authority into questionable investment deals such as the NSSA Beitbridge Hotel and the purchase of Celestial Park in Harare, where property experts say it will take several years for NSSA to recoup its investment. However, as the benefits of the restructuring exercise start to kick in, the NSSA board resolved to effect a 33,33 percent minimum pension pay out increase, which saw the pension shooting to $80 from $60.

The minimum pension increase was with effect from October. The board also decided to award a bonus to all pensioners, employees and management on the back of further improved performance of the Authority for the year ending December 31, 2017. A pensioners’ representative board, the Pensioners Union Trust of Zimbabwe (PUTZ) general secretary Amatus Rwazemba, has since written to the NSSA board praising them for the decision to award pensioners’ a bonus.

“. . . membership received with great joy and sense of appreciation to the NSSA board’s decision to pay its pensioners the 2017 13th cheque . . . As one of the largest national organisations representing pensioners, PUTZ would like to congratulate you further for managing to grow funds under your portfolio and, by extension, its profits which grew by more than $100 million,” said Mr Rwazemba in a letter to Mr Vela dated December 6, 2017 seen by The Herald Business. NSSA is one of the few best performing parastatals which post regular profits and publish audited annual results in line with Government expectations that State entities’ operations must observe good corporate governance principles.

In the year under review, NSSA consolidated its insurance investments, with all conditions precedent in relation to the First Mutual Holdings Limited’s acquisition of control of NicozDiamond Insurance being met. NSSA also snapped up majority shareholding in, and reconstituted the Rainbow Tourism Group board as part of efforts to ensure profitability of the firm going forward.

Mr Vela said NSSA remains on course to transforming itself into a customer-centric organisation in line with its new mantra, “NSSA by choice, not by statute”. In his 2018 Budget Statement, Finance and Economic Planning Minister Patrick Chinamasa said Government is suspending generous financial support to underperforming parastatals until they come up with bankable projects, and show commitment to transform the entities’ operations.

Last year’s financial audits show that 38 out of 93 SEPs incurred a combined $270 million loss attributed to questionable corporate governance practices and ineffective control mechanisms. Audits also showed that 70 percent of the 93 SEPs are technically insolvent owing to gross mismanagement. Government has 107 SEPs, implying that 14 of them did not submit last year’s audited results.

Mutare assigns land for diamond centre

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Dr Mpofu

Dr Mpofu

Property Reporter
MUTARE City Council has availed 55 hectares of land in Fern Hill for the construction of a multi-million dollar diamond centre or Gemology Park as efforts to accrue maximum benefits from diamonds value chain gather pace. The centre, modelled along the same lines with the School of Mines in Bulawayo, will be constructed in two phases with $18 million having been set aside for the first phase planned to kick start early next year.

State mining entity, the Zimbabwe Consolidated Diamond Company (Pvt) Ltd, will spearhead the establishment of the centre. The diamond miner will be partnered by other stakeholders among them the Ministry of Mines and Mining Development and the Ministry of Industry and Commerce in the project. The School of Mines, Diamond Beneficiating Association of Zimbabwe (DBAZ), Minerals Marketing Corporation of Zimbabwe (MMCZ), Reserve Bank of Zimbabwe and Kenako Diamond Processing Company are also part of the stakeholders committee.

The Gemology will be subdivided into four sections namely the School of Gemology, which will offer training courses across the value chain, Diamond Manufacturing and Lapidary, which will house cutting and polishing companies, Jewellery Blacksmith and Manufacturing for Blacksmith and Manufacturers as well as Ancillary Services that will house all supporting businesses.

ZCDC chief executive officer Dr Moris Mpofu, confirmed the development that he said will help Zimbabwe spread its wings from the extractive sector to the downstream sector that constitute a larger chuck of the world’s $252 billion global diamond industry.

“The 2018 diamond value addition and beneficiation cluster targets set in Government’s Zim-Asset blueprint are to have at least 1,2 million carats of polished gem diamonds produced, 1 000 jobs created in downstream businesses and establishment of value addition industries in industrial diamond products,” said Dr Mpofu.

“The target also extends to developing a strong skills base and industrial capacity in downstream processes in the diamond value chain. ZCDC is spearheading downstream industries capacitation programmes, which include the establishment of a Gemology Park in Mutare that will accommodate businesses across the entire diamond value chain.

“Mutare City Council, which is excited about this investment coming to town, has already availed 55 hectares of land in Fern Hill in Mutare for the construction of the Zimbabwe Gemology Park,” he said. The ZCDC boss added that his company expects the facility to boost the economy through employment creation, value addition and industry growth, which will be good for both the local Manicaland community and the country at large.

Architectural drawings for the first phase of the Gemology Park, which is the school, Dr Mpofu said, have already been produced and the first phase is expected to cost $18 million. The mining entity is also engaging with Government to afford the Park with Special Economic Zone status to encourage investment and Finance and Economic Development Minister Patrick Chinamasa confirmed this in his 2018 national budget presentation.

“Already Treasury, has received requests for funding the development of such infrastructure at Sunway City and Victoria Falls amounting to US$16,7 million, and is considering submissions on the Diamond Cutting and Polishing Special Economic Zone in Mutare,” said Minister Chinamasa.

Inflation rises 0,73pc in November

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Business Reporter
ZIMBABWE’S year on year inflation rate for November as measured by the all items consumer price index (CPI) stood at 2,97 percent, gaining 0,73 percent from the October figures driven by a surge in food and non-alcoholic beverages. In October, the year on year inflation rate was 2,24 percent.

This means prices as measured by the all items CPI increased by an average of 2,97 percent between November last year and this year. The rise in year on year inflation thrusts the country on a firm footing to end the year with inflation of slightly above 3 percent, as predicted by market watchers. This comes at a time when retailers have exponentially increased prices of basic goods particularly since last Saturday. Government is engaging retailers and wholesalers with a view to reducing the prices.

Bread makers have already agreed to revert to between 90c and $1. Statistics from the Zimbabwe National Statistics Agency (Zimstat) show that year on year food and non-alcoholic beverages inflation, which is prone to transitory shocks, stood at 5,65 percent whilst the non-food inflation rate was 1,74 percent. The month on month inflation rate in November 2017 was 0,74 percent, shedding 0,80 percentage points on the October 2017 rate of 1,54 percent. This means that prices as measured by the all items CPI increased at an average rate of 0.74 percent from October 2017 to November 2017.

“The month on month food and non-alcoholic beverages inflation rate stood at 1,74 percent in November 2017, shedding 0,53 percentage points on the October 2017 rate of 2,27 percent. The month on month non-food inflation rate stood at 0,26 percent, shedding 0,94 percentage points on the October 2017 rate of 1,20 percent,” said Zimstat. The CPI for November stood at 98,97 compared to 98,24 in October 2017 and 96,11 in November 2016.

The rise of the African megacity

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Africa  is  almost  40  percent  urban

Africa is almost 40 percent urban

AThe world is becoming increasingly urban. Countries across Asia, the Middle East and Latin America have urbanised at an unprecedented rate over the last decades. Now Africa is undergoing mass urbanisation, but is the region equipped to handle the demands of its ever-growing urban populations?

Africa is one of the least urban regions in the world. Rural areas are home to 63 percent of the continent’s population and almost 70 percent of sub-Saharan Africans work in agriculture. However, this may not be the case for much longer. In recent years, there has been a boom in urban growth across Africa. By 2050, it is estimated that over half of Africa’s population will live in cities.

Much of the urban growth is down to natural population increase as Africa’s population is on track to reach two billion people by 2040, according to the World Bank. Conflicts, environmental issues and scarcity of basic amenities or employment opportunities in rural areas also contribute to urban expansion across the continent.

Nowhere are these factors quite as apparent as in Nigeria. The US-based Population Reference Bureau predicts that Nigeria will contribute more people to the world’s population by 2050 than any other country. In recent years, violence perpetrated by the militant jihadi group Boko Haram and other armed factions have displaced more and more rural Nigerians. As a result of the conflict and economic pressures, Nigeria is now home to the largest city in Africa, Lagos.

With an estimated population of 21 million, the Nigerian megacity is one of the most populous cities in the world. As its tremendous growth rate shows no signs of slowing down, Lagos looks set to double in size over the next few decades.

As Africa’s largest economy, Nigeria’s relative wealth has allowed for ambitious urban planning in Lagos since the return to democratic rule in 1999. A process of reform widened the tax base, facilitating the restoration of basic infrastructure and expansion of public services. The plan has helped Lagos on its pathway to becoming a world megacity. Luxury beach front developments, forward-looking urban planning and hyper-modern high rise real estate projects aim to transform the city into the “Dubai of Africa”.

However, urbanisation is not synonymous with rising economic equality. Around 60% of Lagos residents live in slums or informal settlements. They lack formal housing and are prone to environmental or health hazards. The streets are congested and overcrowded with around 20 000 people per square kilometre. Urban population growth in the city is outpacing economic, social and institutional development.

“Running a city that big takes solid institutions and public officials and urban planners who really know what they’re doing,” Vernon Henderson, a professor of Economic Geography at the London School of Economics, told The World Weekly. “That’s a generic challenge across Africa.”

Unusual urbanisation
Urbanisation in Nigeria and elsewhere in Africa has occurred more quickly than in other regions and cities have evolved with little change in economic structure. As a result, the income levels across Africa are currently lower than those in other regions at similar stages of urbanisation.

Countries in the Middle East and North Africa had a GDP per capita of $1 800 when urbanisation levels reached 40 percent in 1968. At a similar stage, Latin American and Caribbean countries had a GDP of around $1 900. In the East Asia and Pacific region the GDP was higher, at $3 600 per capita with the same urban growth. Today, Africa is almost 40 percent urban. However, the region’s GDP per capita is only $1000, significantly lower than that of other regions with similar levels of urbanisation. Africa is becoming urbanised while remaining poorer.

“Urbanisation in Africa is unusual in comparison with Latin America and Asia,” Professor Henderson told TWW. “There is usually evidence of structural transformation, regions entering the world markets and selling competitively. This is not happening in Africa at all.” The continent lacks the large industrial sectors seen in many urbanising regions. A rise in industrialisation has typically coincided with the urbanisation process, especially in countries with emerging economies such as Brazil or China, “the poster child for growth through industrialisation”.

This diversion from historical trends is having a significant impact on the development of African cities and the quality of life within them. Urban areas are becoming more densely populated without the accompanying investment in physical structures and human capital. This prevents many citizens from reaping the expected economic benefits provided by modern urban living.

“A big problem is getting around the cities,” says Professor Henderson. “It is very slow-going and difficult to commute in a timely fashion. This causes jobs to be more dispersed.”

Job dispersion reduces economic productivity. In many big cities, firms cluster together to facilitate the exchange of knowledge and personnel. However, experts note that as a city grows, the primacy of the central business district declines. Modern cities are more decentralised, containing many economic sub centres.

Dispersion in African cities tends to be more profound. A study of Uganda’s capital Kampala revealed that, aside from a small central business district, no other area exhibited a high concentration of employment. Most land was used for both residential and professional purposes, reducing the potential for business clustering.

Job dispersion is not the only obstacle facing those working in Africa’s growing cities. Sharp income inequalities across the continent mean poverty reduction is limited. As the number of millionaires living in African cities increases, so too does the number of those who live on less than $1,25 a day.

The urban realities of these residents simply do not intersect with the images projected by the towering office blocks that line the waterfront in Lagos, or the bustling business centres of Nairobi, Addis Ababa and many other aspirational African cities.

Urban contradictions

In a TED talk earlier this year, Nigerian writer and activist OluTimehin Adegbeye spoke of her home city Lagos as a “highly contradictory” place. Ms Adegbeye reflected on the notion of belonging to a city, of the “difference between possibility and impossibility” in Lagos. She concluded that belonging in Lagos depended on many factors, “but most visibly and often most violently, class.”

Last year, Lagos state governor Akinwunmi Ambode announced that authorities would demolish all structures in informal settlements along the state’s waterfronts and creeks.

A recent report documented the forced evictions of more than 30 000 residents of two waterfront communities, Ilubirin and Otodo-Gbame, which resulted in at least 11 deaths. The demolitions, some have argued, go hand in hand with the state government’s pledge to transform Lagos into a modern megacity.

Indeed, the empty land is now being developed into luxury real estate properties. A mixed-use development offering “affordable luxury” is destined for the Ilubirin land area. The Periwinkle estate will stand where the Otodo-Gbame community once lived, with plots of land selling for around $125 000 to $550 000 each.

Ms Adegbeye believes that the real problem lies not in the existence of informal settlements but in the factors which create them, such as “the entrenchment of poverty, social exclusion and state failures”. The realities of Lagos’ millions of citizens may differ, she says, but their rights do not.

In the bid to become internationally recognised “world cities”, growing African cities are in danger of becoming isolated from the reality of their inhabitants.

In Ethiopia’s capital, Addis Ababa, residents have been cleared from city-centre slums and offered apartments in new developments on the outskirts, unaffordable for most. Rwandan authorities have been accused of illegally detaining those deemed “undesirable” on the streets of capital Kigali, famed for its cleanliness. In cities across Kenya, Nigeria and the rest of the region, slum residents have faced eviction, left with nowhere to go.

However, the future of Africa’s cities should not be viewed exclusively in terms of inequality and exclusion. Many existing cities show great promise, observers say, especially if the implementation of sustainable urban planning is effective.

“These cities are not hopeless”, says Professor Henderson, “good things can be done in them.” Successful plans to reimagine urban space would accommodate the most vulnerable as well as the most wealthy and work to retain a city’s natural character.

In the words of Ms Adegbeye, “You don’t need to be the new Dubai, when you’re already Lagos.” — Wires.

Potraz surpasses revenue targets

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Taurai Mangudhla Senior Business Reporter
ZIMBABWE’S telecoms regulator Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz) has surpassed its revenue targets for the first nine months of 2017 by 9,1 percent to $22,7 million against a target of $20,8 million, the company’s first ever annual general meeting heard last week.

The growth in revenue was a result of a 6 percent increase in mobile income that was not expected while additional spectrum fees also came from operators. Actual operating expenditure for the period stood at $12,8 million against budgeted expenditure of $19,8 million Potraz director general Gift Machengete said in a presentation. This left the group with actual closing retained income of $83 762 760 against a target of $101 802 664.

He said the Universal Service Fund (USF), established with main intention of providing funding for extending communication networks beyond the borders of economic viability to reach marginalised communities in rural areas throughout Zimbabwe, brought in $11,5 million in revenues in the nine months under review against a target of $10,8 million.

In 2016, Government raised contributions for telecoms firms to the USF to 1,5 percent of gross revenues in 2016, up from 5 percent. The actual operating expenditure under the USF was only $459 282 compared to a target of $2,2 million while actual retained income was $26,1 million, double the budgeted $13,6 million.

Going forward Mr Machengete said Potraz’s strategic focus in 2018 is on the National Broadband Plan, an aggressive consumer awareness and education campaign, building more towers, promoting ICT innovation, ICT for the disabled, schools computerisation and tele-medicine. As commitment to consumer affairs, Potraz recently hired former NetOne public relations and special projects executive George Manyaya as its head of consumer affairs and publicity. Potraz board chair Ozias Bvute promised a satisfactory performance in 2018.

“ I would like to thank the whole Potraz family for this achievement indeed I’m really proud of the team . It has indeed been a challenging year but delivering a clean set of results is what our shareholder wants and we should strive to maintain this year in year out,” Mr Bvute told the AGM.

Zim introduces cotton hybrid seeds

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Business Reporter
Zimbabwe has introduced cotton hybrid seeds with potential to improve yields by as much as 45 percent when compared with the traditional varieties, an official has said. Hybrid seeds require less water and have a higher yield potential compared to non-hybrid varieties.

Studies have shown that the hybrid seeds, which are generally less water intensive, have a yield potential of between 25 percent and 45 percent higher than non-hybrid seeds. Quton, the country’s largest cotton seed company, said some hybrid cotton seeds were released to farmers in November for trials in preparation for commercial production.

In the quest to improve quality and product performance, Quton developed hybrid cotton seeds that achieve higher yields and offer superior fibre properties. The company has already introduced the hybrid seeds in Zambia and will begin commercial distribution in Malawi next year. The trials are ongoing in Ghana and Nigeria.

“We have released hybrid cotton seeds for trials so that farmers can compare them with traditional varieties,” sales and marketing manager Mrs Petronella Gwasira said.

“In the next farming season, we are hoping to start commercial distribution.” Mrs Gwasira said Quton distributed the hybrid seeds through local cotton companies enough to plant about 600 hectares. India’s leading agri-biotech company Maharashtra Hybrid Seeds Company, acquired a controlling stake in Quton in 2015 from Seed-Co in a transaction worth $10 million. The acquisition gave the Indian firm a platform to introduce hybrid seeds to Africa. The foray into African market is expected to strengthen Mahyco’s positioning in the global cotton market. Quton also has operations in Tanzania and Malawi, which predominantly use open pollinated varieties.

While Africa was a major cotton growing region, the continent was not using high yielding seeds. It said it would start introducing hybrid varieties before moving to Bt seeds. Zimbabwe’s cotton production recovered last year thanks to the Presidential Input Scheme, which saw the Government investing $42 million to support about 155 000 farmers. Cotton output rose by about 150 percent from 28 000 tonnes in 2015/16 season—the lowest output in more than two decades to about 72 000 tonnes in the last season.


Brainworks founders exit group

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Mr Manyere

Mr Manyere

Brainworks Capital founders George Manyere and Walter Kambwanji have sold their shareholding in the Johannesburg Stock Exchange listed company and have now acquired the company’s investment in Getbucks.

According to an announcement from Brainworks, the company together with GetSure Life Assurance entered into transactions with the two non-executive directors — through their respective investment vehicles — for the disposal of 163 769 298 shares constituting 14,98 percent of GetBucks. This comes after the two agreed to dispose of their Brainworks shares to the benefit of institutional investors who were yet to receive their shares following a placement in October. Brainworks placed 9 088 677 of its treasury shares with various institutional investors in Zimbabwe in October subject to receipt of approval by the Reserve Bank of Zimbabwe.

“The necessary Reserve Bank and other approvals have not yet been obtained and accordingly Brainworks has, to date, not been able to deliver the shares subscribed for to the institutional investors. However, in order to be in a position to deliver to the said institutional investors’ shares in Brainworks, certain directors of the company have agreed to dispose of their Brainworks shares to the institutional investors,” said the group in a statement.

Brainworks CEO Bretts Child told FinX he hoped the transaction would increase the percentage shareholding held by the public and “accordingly we hope it will improve liquidity.” He said since listing, volumes traded have been low (just over 31 000 shares), but that’s mainly because the Zimbabwean-based shareholders were unable to trade as they do not have broker accounts in South Africa.

“The shares they hold are not in dematerialised form, being the JSE preferred way to hold shares in order to facilitate trading. As such, it is difficult to trade.” The company’s strategy is to focus on its core asset base, being hospitality, real estate and related investments.

“Accordingly, it is re-organising its investments in financial services and part of its strategy is to exit its investment in GetBucks.” The group said the funds raised pursuant to the transaction will be applied towards the restructuring of the balance sheet in order to position it for growth going forward. — Wires.

Govt to pay $840 million to grain farmers

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Minister Chinamasa

Minister Chinamasa

Business Reporter
TREASURY is expected to pay farmers $840,45 million by year end for a record 2,15 million tonnes of grain delivered to the Grain Marketing Board, Finance and Economic Planning Minister Patrick Chinamasa has said.

This is Zimbabwe’s biggest harvest since 2000. Of the $840 million, Government has so far paid $600 million to farmers after delivering 1,6 million tonnes of maize to GMB. This comes after Treasury increased weekly disbursements to GMB to about $40 million to boost their planning in the current summer cropping season. Previously, farmers would go for months without getting payment. Minister Chinamasa recently told The Herald Business in a post budget interview that the country expects to deliver over 2,1 million grain to GMB and a sum of $840 million will be paid to make sure farmers’ plans remain on track.

“By year end we expect the GMB to receive around 2,15 million tonnes and a total of $840,45 million will be paid to that effect. As treasury, we have already paid an amount close to $600 million to cater for the deliveries that were made by farmers. We are paying farmers on time (five days after delivery) to ensure they have time to buy inputs and cater for their needs during the festive season,” said Minister Chinamasa.

He expects maize production to be around 2,2 million in 2017-2018 season and 2,5 million and 2,55 million in 2019 and 2020 respectively. Zimbabwe Commercial Farmers’ Union (ZCFU) president, Wonder Chabikwa said; “We commend the Government for timely paying the farmers but there is still a lot of work to be done as far as distribution of inputs is concerned especially the Command Inputs as some farmers under the programme are still to get basal fertiliser late alone top dressing fertiliser.

“We hope the authorities will move to catch the December 25 deadline.” GMB has also extended its payment to soya beans and other small grain crops like sorghum, rapoko, cowpeas, sunflower and groundnuts. The small grain farmers and soya bean farmers have been paid around $18 million and $15 million.

Government in 2015 pegged the maize price at $390 per tonne against the private buyers’ price of $360. Experts suggest that the country has saved over $200 million on its grain import bill due to success of the Command Agriculture programme. Some farmers are realising a good return per hectare due to favourable rains and availability of resources. There are some small-scale farmers getting seven tonnes per hectare which is a good sign to the Government and financiers of the programme. Given the $1,1 billion pledged by the banks this summer, the 2017-18 season may prove to be a good year again.

ART posts 43 percent profit

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Enacy Mapakame Business Reporter
Paper and packaging group, Amalgamated Regional Trading (ART)’s profit for year ending September 30. 2017, jumped 43 percent to $2,75 million on the back of a strong performance by its battery unit.

Revenue for the period also rose 13 percent to $33,5 million on the back of strong demand and product availability. The batteries division contributed 66 percent to total revenue while plantations, Eversharp and paper unit contributed 4 percent, 15 percent and 15 percent respectively. Chief executive Milton Macheka told analysts at the group’s financial results presentation that the financial year 2017 has been a volatile year and most challenging due to cash shortages and foreign currency deficiencies that affected ability to access raw materials and other services.

However, an operating profit of $5 million was achieved, which is 36 percent above prior year. In turn, operating expenses increased 22 percent on the back of increased marketing and promotional activities as well as rebranding of some units. The group invested $2,1 million in new import substitution machinery for battery division at Chloride, while efforts are being made to reduce working capital gap. Resultantly, the gap reduced by 30 percent to $4,8 million.

The battery division achieved an operating profit of $3,8 million on the back of a 25 percent increase in factory sales volumes and 41 percent increase in sales volumes at Exide Express as the units realised the benefits of the new plant commissioned in 2016.

“The division also benefited from the impact of Statutory 20 of 2016 and the foreign currency challenges, which limited battery imports,” said Mr Macheka. Eversharp division posted $4,8 million in revenue and an operating profit of $916 000 compared to $763 000 posted in the prior year due to growth in export volumes.

“This is the business with strong export potential with dominance even on the local market,” said Mr Macheka adding the division is looking at introducing an exercise book making machine. The unit has been operating at 78 percent capacity compared to 72 percent in the prior year. The paper division achieved an improved performance recording a consolidated operating profit of $229 000 compared to a loss of $227 000 in the prior year due to improved sales volumes.

The Zambia business recorded an operating loss of $67 000 due to low market uptake in 2017. In the outlook, the group is expecting to retool its Kadoma Paper Mills to enhance productivity and efficiency, which should push revenue growth. The group projects revenue for financial year 2018 to reach $39 million.

Air Zim seeks new CEO

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Dr Gumbo

Dr Gumbo

Business Reporter
Troubled national airline, Air Zimbabwe, is hunting for a new CEO to replace former boss, Captain Ripton Muzenda. The firm has been battling to rediscover itself after years of poor performance allegedly due to bad corporate management.

Cpt Muzenda was fired by the Professor Chipo Dyanda-led Air Zimbabwe board last month on allegations of declining to implement a staff rationalisation exercise that was designed to save the firm up to $2,4 million. In a statement, Air Zimbabwe said it is “looking for an experienced and strategic thinking executive to oversee the organisation’s core operations and systems”.

“This is an aviation specialised command job requiring an overall operational responsibility for all airline’s core operations.” The ideal candidate is expected to providing strategic direction to the organisation; implement the airline’s vision, mission and objectives; coordinate its business activities and provide strong leadership that ensures the business is run professionally and profitably.

The new CEO is also expected to grow “the business through forging strategic links and partnerships, (and) establishing strong corporate governance culture within the organisation”. Air Zimbabwe is looking forward to recruiting a holder of a relevant first degree, aviation industry professional qualifications, at least 10 years managerial experience of which five years must have been at senior management level in the airline industry.

Transport and Infrastructure Development Minister Joram Gumbo, recently confirmed that Cpt Muzenda had been sacked by the Air Zimbabwe board after a fallout over issues to do with turning around the organisation.

“There is nothing wrong about people losing their jobs if there is a problem. I know very well about what happened with Ripton Muzenda, but I don’t want to talk about someone’s life in public because he still has some dignity to maintain. What I know is that he had his own problems about the turnaround and the timelines, which he had been given by which to do certain things . . .

“So there were talks between him and the board until such a time that they censured him and then they agreed to part ways with him amicably because there were issues on the targets the board wanted him to meet,” said Dr Gumbo. Cpt Muzenda took over the reins at Air Zimbabwe in August last year, and ran the firm for just over 15 months.

He had taken over from Edmund Makona, who was acting CEO since 2013. Mr Makona had also taken over from Mr Innocent Mavhunga who had replaced Dr Peter Chikumba, whose contract was not renewed in 2011. This makes the Air Zimbabwe CEO’s job a volatile one, which requires someone with physical and mental stamina to withstand the pressures associated with it.

Air Zimbabwe is also in the hunt for a chief operating officer to replace Mr Simba Chikore. Mr Chikore resigned in November after giving a three notice. Dr Gumbo told The Herald Business recently that Mr Chikore — who is son-in-law of former President Mugabe — left the parastatal reportedly to negotiate the coming in of another airline, Zimbabwe Airways. Zimbabwe Airways is owned largely by Zimbabweans in the Diaspora through an investment vehicle called Zimbabwe Aviation Leasing Company.

Cultivating a savings culture in children

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Dr Sanderson Abel
As parents, sometimes we are tempted to think that money issues are too complicated for our kids to comprehend or appreciate. This view is wrong. Psychologically, it is never too early to educate your child about money.

Sadly, according to many studies, parents are more likely to talk to their children about having good manners, getting good grades at school, or religious values than they will discuss good savings habits.

It would be interesting in Zimbabwe to ask parents how often, if at all they talk about financial matters to their children. However, financial literacy for your child is about the best gift you can give to your child, especially if you start at an early age. Most parents, however sadly feel that they know enough about money and finances to teach their children about saving. So how financially fit is your child? Are you teaching your child about saving? It is however, a little simpler than we think. And it can be fun too. Here are a few tips.

Lead by example
One of the best and simplest ways to introduce the concept of money to your children is to lead by example and to use practical or hands on approaches. For instance, the next time you plan to make a deposit or withdrawal at the bank, bring your child along with you and explain what you are doing and why you are doing it. Fortunately some of our banks in Zimbabwe already have child friendly banking halls and children’s savings products.

However, more importantly, in addition to explaining why you need to save money. It is crucial that we embed in our children, the ideals of hard work, earning ones’ living and saving part of our income for the future. This should be done at an early age.

Espouse the values of hard work.
It is important to instil in the child’s psyche, the notion that money doesn’t grow on trees, it must be earned. And interest on savings is just one neat way of earning money.

Teach your children about the various sources of income that adults have. However, remind them that as a parent you don’t get paid for nothing, you earn your money by making a useful contribution to your employer or to society if you are a business person. Take the opportunity to remind your children of this every time you give them their regular allowance. In as much as you ask them how much of their allowance they give as a tithe offering at church, also ask them regularly how much of the allowance you give them is being saved.

Kids can save at home in piggy banks and mini safes and so forth but this is less desirable. Get your kids to save in a proper bank account. If your bank has account facilities for children, take advantage of these and help your kids to open their savings accounts. It is a lot more pleasurable for your twelve year old son to have their own savings account ATM card, rather than a piggy bank at home, which they can raid at any time. Your child will enjoy once every so often to take a trip to the bank.

Also use virtual training tools
In addition to practical lessons in savings alluded to above, there are also many virtual tools parents and children can use to educate about money and help develop savings habits very early on. Games like ‘Monopoly” teach children basic business skills, saving and investment being one of them.

Play on the children’s desires
Your child really wants a new bicycle or the latest play-station gadget or game-boy. Do not give the child the money all at once, even if you have the money. If the item costs for example, US$200,00 get them to save for it from their allowance over a few months. When they have saved a substantial or the entire purchase price, allow them to buy the item, and then replenish part or all of their savings. Allowing your kids to build savings towards a goal not only teaches them patience and other good habits but also makes the experience all the more enjoyable when they get a sense of achievement at the end.

Reward kids for saving money
Reward the little savers. Regularly assess how much each of your children has saved and award them bonuses. They may be non cash incentives but you can also reward your child for saving by increasing their allowance from year to year. In other words the more they save and earn interest, the higher their income. It’s a bit like mum and dad paying a little interest for big rewards.

Always remember though that children must earn their allowances in the first place. The allowances should not just be freebies. Tie them to child friendly domestic chores, and getting good grades at school or getting selected for the school soccer team. That way, the children will place a greater value on their savings. One cannot therefore underestimate the role that you as a parent should play in educating your child at various stages of his/her development into adulthood about saving, budgeting, recognising needs and wants, and how interest makes money grow and to encourage them to open youth savings accounts to help them better prepare for their future.

Our nation’s economic future depends on the financial well-being of our youth. It is crucial that children begin learning about finances at a young age so they are better prepared to make sound financial decisions in the future.

Teaching the basics of money management can assist your child in developing good financial habits that will benefit them for the rest of their lives while having fun in the process. The country is in dire need to increase savings. Savings are the backbone of investment and economists have already proven that the rate of savings in the economy influences directly the rate of investment. In simple terms for the Zimbabwean economy to grow, we need to grow the national savings base from the current low levels. If we all teach our children to save, we may just be saving the future of our country.

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

Botswana Express Train resumes Francistown-Byo service

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Bulawayo Correspondent
THE Botswana Express Train has announced plans to resume the Francistown-Bulawayo route service on trial basis as it evaluates the business viability of the business.

The train is expected to arrive from Francistown at about 7am today departing from Bulawayo at 2pm. Today’s passenger trial run follows a successful one that was conducted by officials from Botswana Express Train and National Railways of Zimbabwe (NRZ) on Monday. NRZ public relations manager Nyasha Maravanyika yesterday confirmed the move saying both parties were confident the trial run would yield positive results after the operators stopped services in the early 2000s.

“These are still trial runs from Francis Town to Bulawayo Railways Station. On Monday the railway trial run was just for NRZ and Botswana officials. The initiative is for Botswana Rails although working with the NRZ. They will start the passenger trial run tomorrow (today) but they say it will go for a couple of weeks or a month in trying to see how the train will be running,” said Mr Maravanyika.

He said NRZ was set to benefit from the partnership with Botswana as it will confirm to investors the capabilities of the parastatal to work with other partners. Mr Maravanyika said NRZ will also benefit from the partnership through sharing of expertise between the two parties.

“In terms of benefits, the NRZ are coming as a partner and the most important benefit that we have at the moment is gaining investor confidence that we are able to attract another train from another country. We are also looking at a situation where out teams benefit in terms of the partnership as they are going to gain expertise and competence,” he said. Mr Maravanyika said if the trial run is successful, the public especially cross border traders will benefit from the Francis Town- Bulawayo rail connectivity.

“It is going to help in terms of tourism as some people will come to Francis Town and connect to Bulawayo and Victoria Falls. They can use the railway network as NRZ already has a running train connecting the areas. It will also be convenient for small and medium enterprises businesses or the cross border traders as they can use the train for convenience purposes especially at the Plumtree Border Post,” said Mr Maravanyika.

Buyanga high court case still pending

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 BUYANGA

FRANK BUYANGA

Business Reporter
A High Court case in which flamboyant Zimbabwean businessman Frank Buyanga, stands accused of failing to transfer 4 047 square meters of land to his client upon full payment 10 years ago stands unopposed.

The botched land deal (HC 4305/17) is on this week’s unopposed court roll. According to court documents in our possession, Mr Buyanga in November 2007, sold a piece of land being Lot 8 of 205 Greendale Township held under Deed of Transfer No. 7586/2006 measuring 4047 square meters, which property he was obliged to transfer to his buyer Collin Rose in terms of an agreement of sale .

Mr Rose paid the full purchase price of Z$51 000 000 following which Mr Buyanga was supposed to effect transfer of the property The registrar of deeds is cited as the second defendant in the case in his official capacity as the authority responsible for transfer of title deeds. According to the plaintiff’s affidavit of evidence, he entered into an agreement of sale for a certain piece of land, being Lot 8 of 205 Greendale Township held under Deed of Transfers Number 7586/2006 measuring 4047 square meters with Mr Buyanga.

The material terms of the agreement was that Mr Buyanga would sell the piece of land to Mr Rose for a purchase price Z$51 000 000. Mr Buyanga would give the plaintiff occupation and vacant possession of the property moreover that all risk and profit would pass from him to Mr Rose. As part of the agreement the seller would tender transfer of the property as soon as reasonably possible after occupation date and in any event within 14 days of the payment of the purchase price.

“In breach of the material terms of the agreement, the first defendant has, however, failed to tender transfer of the property to me as he is obliged to do in terms of the agreement between the parties,” Mr Rose said in the affidavit.

In May 2017, Mr Rose caused summons to be issued out of the High Court wherein he claimed specific performance in terms of the agreement of sale failing which the Sheriff of the High court would sign all the necessary papers to pass transfer. The summons and declaration were served upon the two defendants. The defendants have also, despite service of court process, refused, failed or neglected to enter appearance in Court.


New Govt boosts business confidence: CZI

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Mr Jabangwe

Mr Jabangwe

Business Reporter
THE country’s manufacturing sector’s business Expectation Diffusion Index (EDI) remains low but there are high expectations from industry that this will grow in 2018 driven by the new political dispensation.

This is outlined in the third quarter results of a survey conducted by the Confederation of Zimbabwe Industries (CZI). Quarter on quarter, the business EDI is still negative at -21, 4 but year-on-year, it has risen to 34,4 points as businesses expect a boom in the coming year.

EDI is a measure of the present financial situation compared to the future prospects.

CZI says managers of sampled manufacturing firms, although still holding a negative perception of the operating environment, reported positive future business prospects largely due to President Emmerson Mnangagwa’s inauguration speech which was conciliatory and aimed at attracting foreign investors.

Similarly, Finance and Economic Planning Minister Patrick Chinamasa’s proposals in the 2018 National Budget statement, particularly on amending the Indigenisation and Economic Empowerment Act, have also sparked optimism among local and foreign investors. Despite the quarter-on-quarter results being pegged at -21,4, CZI believes a positive sentiment is in the offing if the business confidence boosting measures announced by Government are implemented quickly.

While the EDI has risen, the Situation Diffusion Index (SDI) remained low as business does not expect the measures announced by the new Government to have any bearing on business in the remainder of the year. Quarter-on-quarter SDI was -37,5 while year-on-year it was even lower at -45,5.

“. . . it is exciting to note that the economic outlook by the manufacturing sector has changed as a result of the new political dispensation,” said CZI president Sifelani Jabangwe while addressing journalists in Harare yesterday.

Mr Jabangwe said the measures that have created the positive perception include a commitment to avail foreign currency to productive sectors, servicing external debt, civil service reform and rationalisation, zero tolerance to corruption, curbing externalisation and mining sector development.

“The Business Confidence Index (BCI) reflects that business confidence (was) low for the third quarter performance in 2017 while expectations for the third quarter in 2018 are that business condition would have improved thereby creating an expectation of better business and economic performance.

“Expectations for the fourth quarter of 2017 are that there would be little or no change from the third quarter. This should be read with understanding that whatever pronouncements were made by the President and pronouncements in the budget statement presented by the Minister of Finance would not yet have taken effect,” said Mr Jabangwe.

As a way to keep Government and the private sector on the same page and avoid situations that can damage the economy, CZI has requested and gotten acceptance for a quarterly policy, business and economic performance review meeting between economic sector ministers and the private sector.

In the meantime, the sector has also requested a high level meeting with President Mnangagwa to discuss a raft of measures introduced by Government. Going forward, the meeting will be held periodically to keep all parties well appraised of any new developments, and give interventions where necessary.

Fastjet launches additional festive flights

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Chipo Sabeta
Low cost carrier, Fastjet, will introduce additional flights on the Harare- Victoria Falls route in response to demand during the festive season. The airline will offer two daily return flights on the route on December 26 and 27.

Fastjet spokesperson Faith Chaitezvi, said they increased the flights between Harare and Victoria Falls in response to strong passenger demand who preferred to use their airline.

“Due to popular demand Fastjet has added two more flights between Harare and Victoria Falls this festive season. It is a way of providing flexibility to clients on their diaries during the festive season. It is a special arrangement for our clients during the festive season who will be going on holiday.

“It is peak period and we are offering flexibility for our clients to manage their diaries and still have a holiday getaway if they had not planned one. We are also concerned about regular business travellers who use this route frequently. By offering more flights this

festive season, we are eager to be taking people places and offering passengers more convenient travel options, whether for business or leisure at affordable fares,” Ms Chaitezvi said.

Zimbabweans take advantage of Fastjet’s low fares to book flights online or call on 086 77 00 6060. Tickets for the additional flights to and from Victoria Falls cost US$100, including taxes and airport charges. Fastjet requires customers to book 21 days in advance .

UK house prices fall

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London. — UK house prices will stagnate next year, according to the Royal Institution of Chartered Surveyors. Overall growth will come to a halt as the number of transactions falls slightly, RICS said in a report yesterday, with a continued dearth of supply preventing outright declines.

Some regions are set to see gains, offsetting slumps in London and the southeast. Political and economic uncertainty, tax changes, a lack of stock, stretched affordability and the Bank of England’s rate hike in November are all influencing factors, according to the report.

“With several forces currently weighing on activity set to persist over the near term, it’s difficult to envisage a material step-up in impetus during the next 12 months,” said Tarrant Parsons, RICS economist. Price growth may fade to produce a virtually flat out-turn for 2018.”

The report adds to evidence that the property market will continue to have a tough time next year. Real-estate website operator Rightmove said this month that home values in London are likely to fall 2 percent in 2018, and that they will cool to a gain of 1 percent nationally.

Changes in fresh demand and supply have “become virtually aligned”, the RICS report said, “curbing downward pressure on prices”.

Most parts of the UK will see prices edge higher, apart from East Anglia, the northeast and the southeast, RICS said. The strongest gains will likely come from Northern Ireland, Scotland, Wales and the northwest of England, according to the report. — RICS.

Massive strikes loom for Shoprite, Checkers

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The planned one-day nationwide strike will include marches and protests across the country

The planned one-day nationwide strike will include marches and protests across the country

Johannesburg. — Retailers Shoprite and Checkers are due to be hit by nationwide strikes on one of the busiest shopping days before Christmas.

The South African Commercial‚ Catering and Allied Workers’ Union (Saccawu) and trade union Cosatu announced on Tuesday that 30 000 workers were planning to down tools at the supermarkets on Friday. Saccawu is part of Cosatu.

Checkers is part of Shoprite Holdings. The planned one-day nationwide strike will include marches and protests across the country, said Cosatu spokesperson Sizwe Pamla. The strike was protected, Cosatu added.

The workers are demanding a reversal of changes to working hours‚ the reinstatement of Sandton Checkers employees who were apparently dismissed for protesting these changes‚ safe transport for workers who work night shifts and a guaranteed number of minimum working hours for part-time workers.

“The federation calls for solidarity action from other workers and shoppers on the day of the strike,” Pamla said, adding that the supermarkets were treating its workers like slaves.

Fin24 has approached Shoprite Checkers for comment. — Fin24.

Comesa avails $2,6m for leather, clothing sectors

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The leather industry is operating at below 50 percent capacity due to a plethora of challenges, chief among them being cash shortages, resulting in waning demand for leather products

The leather industry is operating at below 50 percent capacity due to a plethora of challenges, chief among them being cash shortages, resulting in waning demand for leather products

Africa Moyo Business Reporter
AS confidence in the country’s new administration continues to rise, Government has sealed a $2,6 million grant with Comesa to support the leather and clothing sectors. The sectors have been clamouring for huge cash injections to turnaround their operations, which have been in the doldrums for a long time.

Although the terms and conditions of the grant could not be immediately established, Deputy Minister of Finance and Economic Planning Terrence Mukupe, yesterday said the $2,6 million will go a long way in bailing out the leather and clothing sectors.

“Last week I was sent to Zambia to sit down with Comesa because there is a grant that we were applying (for) from Comesa and we were actually successful in getting the grant. The grant is going to facilitate the hides-to-leather value chain where we want to set up about three to four hubs and it’s also going to facilitate the cotton-to-clothing as well,” said Deputy Minister Mukupe.

This comes as the leather industry is operating at below 50 percent capacity due to a plethora of challenges, chief among them being cash shortages, resulting in waning demand for leather products. Raw material shortages are throttling the leather industry.

The Abattoirs Association of Zimbabwe says the leather sector has not recovered since Government introduced a levy on exports of raw hides to encourage value addition in 2014. In the 2014 National Budget, Government announced a 75c levy tax on the exportation of raw hides as part of measures to promote beneficiation in the leather sector.

Statistics from ZimTrade recently suggested that since 2012, the country’s exports of leather products have been plunging. In 2014, Zimbabwe exported leather products worth $374 000, down from $591 000 in 2012.

Government has crafted the Zimbabwe Leather Sector Development Strategy, which runs from 2012 to this year, which seeks to ensure the sector generates $116 million revenue by 2017 compared to $82 million in 2011.

Similarly, the clothing sector has potential to push up employment levels to 25 000 from the current 7 000 if all sectors of the economy procure locally. At the moment, several private and publicly owned companies are importing corporate wear, prejudicing local firms.

Zimbabwe Clothing Manufacturers’ Association (ZCMA) chairman Jeremy Youmans, this week said the clothing industry presents a great opportunity for the country to create more jobs, especially from value addition. Currently, Zimbabwe exports 98 percent of its cotton lint, with most of the cotton yarn exported to South Africa.

Youmans believes a market-driven approach would develop the whole value chain, including the production of edible oils and animal feed as by-products of the cotton seed. ZCMA says the largest bottleneck in the growth of the clothing sector is a lack of access to competitive raw materials, mainly fabric.

The clothing sector is also being negatively impacted on by massive imports of new finished clothes and second hand clothes, putting the local sector on the brink. Government and players in the sector have agreed to create the Association of Cotton Value Adders of Zimbabwe (ACVAZ) in order to coordinate the cotton-to-clothing strategy (2014-2019).

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