ZIMBABWE

INDEPENDENT
Established 1996

DECEMBER 11 TO 17, 2020     ZW$260

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Zimbabwe Stock Exchange Highlights December 10, 2020
Market gainers Market losers Major currencies exchange rates

Markets Name Price (ZW$) % Change Name Price (ZW$) % Change Symbol Price Change %Change
PHL 19.8476 +19.93 WILD 0.2463 -5.27 RTGS$/US$ 80.6293 (Bid)83.0851(Ask) 81.8572(Av)
ZIMP 0.8500 +8.97 FMP 2.1012 -4.39 Euro/US$ 1.2123 +0.0042 +0.35
HIPO 35.1991 +7.97 ZIMR 2.6002 -4.14 US$/GBP 1.3282 -0.0117 -0.87
FBC 14.5003 +7.41 AFDS 21.5000 -2.71 ZAR/US$ 15.0312 +0.0632 +0.42

Chiwenga’s dramatic
U-turn on top bosses
J2 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020
 Zimbabwe
Independent
Established 1996

december 11 to 17, 2020 the leading business weekly ZW$260

Follow us on: Twitter-@Zimindependent | Facebook -The Zimbabwe Independent | WhatsApp - 0772 929 196 www.theindependent.co.zw
Zimbabwe Stock Exchange Highlights December 10, 2020
Market gainers Market losers Major currencies exchange rates

Markets Name Price (ZW$) % Change Name Price (ZW$) % Change Symbol Price Change %Change
PHL 19.8476 +19.93 WILD 0.2463 -5.27 RTGS$/US$ 80.6293 (Bid) 83.0851(Ask) 81.8572(Av)
ZIMP 0.8500 +8.97 FMP 2.1012 -4.39 Euro/US$ 1.2123 +0.0042 +0.35
HIPO 35.1991 +7.97 ZIMR 2.6002 -4.14 US$/GBP 1.3282 -0.0117 -0.87
FBC 14.5003 +7.41 AFDS 21.5000 -2.71 ZAR/US$ 15.0312 +0.0632 +0.42

Chiwenga’s dramatic
U-turn on top bosses
. . . agrees to reinstate fired
Health ministry directors
Tinashe Kairiza pended and acting officials.
The restructuring exercise climaxed
VICE-President and Health minister when the directors were sent on forced
Constantino Chiwenga has agreed to rein- leave to pave way for investigations into the
state dozens of ministry directors he uni- abuse of funds when former Health minis-
laterally fired two months ago, making a ter Obadiah Moyo was still at the helm.
dramatic U-turn after mounting pressure Moyo is standing trial on allegations of
and the threat of a costly lawsuit, it has awarding a company called Drax Inter-
emerged. national a US$60 million tender for the
Chiwenga, who flew to China for medical procurement of Personal Protective Equip-
attention last week despite having, ironi- ment (PPE) in the fight against Covid-19.
cally, earlier banned such trips, sent 27 At the same time, seven senior officials at
ministry directors on forced leave in Octo- the national drug supplier Natpharm were
ber claiming to be undertaking a systemic fired.
restructuring exercise. Health Services Board (HSB) com-
The exercise became the subject of in- munications manager Tryfine Dzukutu
tense controversy, after it emerged the confirmed that some of the directors were
government was forking out millions of already back at work, saying two of them
dollars since their suspension in July to were reinstated last week.
simultaneously remunerate both the sus- To Page 2 Vice-President Constantino Chiwenga

Ministers fingered in corruption scandal

LOCAL Government minister July Moyo He allegedly bought a top-of-the-range including issuing verbal instructions to of- Tendai Kwenda and other council execu-
and Harare Metropolitan Provincial min- car with the money. He appeared before ficials from the Special Anti-Corruption tives on separate abuse of office allegations,
ister Oliver Chidawu have been implicat- Harare regional magistrate Marehwanazvo Unit (Sacu) housed in President Emmerson in a matter that has reportedly caught the
ed in the ongoing City of Harare corruption Gofa on Tuesday, charged with criminal Mnangagwa’s office, which was investigat- attention of the Zimbabwe Anti-Corrup-
scandal, after they allegedly tried to un- abuse of office and was remanded in cus- ing him. tion Commission (Zacc).
procedurally secure the release of the local tody to December 21. Sacu is also understood to be considering Sources allege that Chingombe was re-
authority’s human capital director Cainos Chingombe was initially released from pressing charges of attempting to defeat the instated to his position in October at the
Chingombe. remand on December 4 and tasted freedom course of justice against the two ministers, behest of Moyo and Chidawu, report-
Chingombe is facing corruption allega- for barely 24 hours, before he was arrested according to sources. edly working with the chairperson of the
tions at the Harare Magistrates Court, in again on December 5. In addition to that, municipal sources council’s human resources committee and
a case in which he allegedly transferred Government and council sources allege said Moyo and Chidawu also allegedly fa- Harare Mayor Jacob Mafume, who is him-
US$130 000 meant for the provision of wa- that during his brief release, Moyo and cilitated the clandestine reinstatement of self also facing corruption charges.
ter, sanitation, education and recreational Chidawu made strenuous efforts to get Chingombe, who was serving a suspension The Zimbabwe Independent was informed
services into his personal bank account. the charges against Chingombe dropped, along with City of Harare’s finance director To Page 2
2 Zimbabwe independent december 11 to 17, 2020

LOCAL NEWS

Mine accidents: MPs grill Chitando

Taurai Mangudhla Emotionally charged committee mem- wise be saved. crash victims to be retrieved.
bers demanded immediate action to the Portfolio committee chair Edmond Mkaratigwa also demanded a commit-
MINES minister Winston Chitando on effect of exhuming people who are feared Mkaratigwa (Zanu PF, Shurugwi South MP) ment for feedback, which Chitando prom-
Wednesday came under fire from legis- dead after the mines collapsed, to bring demanded clear answers on what govern- ised to give next week on Monday.
lators demanding answers on what his closure to their families and in line with ment was doing to prevent mine accidents. “We have witnessed a number of ac-
ministry was doing to prevent fatal mine African culture. He also insisted the remains of victims be cidents which have taken place in the
accidents. This came after a mine collapsed in Bind- retrieved for a decent burial. country. They are from a mixture of people
Legislators from the Parliamentary Port- ura on November 28, trapping dozens of “One of the chiefs in Chegutu cried and undertaking mining legally and illegally.
folio Committee on Mines and Energy also people with six escaping. The Bindura ca- knelt; he said two of his sons were trapped Illegally, by people mining in concessions
piled pressure on Chitando over his minis- tastrophe came weeks after another mine and he begged us to make sure they are dug which do not belong to them and in some
try’s sluggish approach to addressing mine collapse claimed six lives in Esigodini, out. It was touching and painful to watch. cases the people will not be aware that
disasters, as it has failed to rescue dozens of Matabeleland South. Yet a signature from your engineer stopped mining is taking place,” Chitando said.
people still trapped in three separate mines Another mine collapse also claimed lives the rescue mission,” Mkaratigwa said. To prevent accidents, he said as a general
that collapsed. in Chegutu. Some victims of these acci- He said a visit to Chegutu exposed how thrust there is a need to increase the vis-
Chitando had to give an update on the dents are still trapped underground at a inspectors never went into the shafts. ibility of the inspectors.
Mines and Minerals (Amendment) Bill and depth of as much as 70 metres and no ef- Committee members alleged attempts Chitando said the inspectors were sup-
progress on the US$12 billion mining econ- forts, at least officially, are currently being were made for a rescue in Bindura and not posed to have a close interface with mining
omy by 2023. made to retrieve their remains. Esigodini because of tribalism. operations, but the resources were limited.
It was the mine accidents that took the This brings into sharp focus the coun- Members also said groups of artisanal There was a shortage of human resources
greater part of the oral evidence session try’s disaster preparedness and accident miners had rescued their counterparts who and vehicles, for instance, each province
with members of the committee taking response systems and comes after Cyclone were trapped underground hence the need only had two vehicles.
turns to grill the minister, demanding that Idai of early 2019 claimed hundreds of lives for a more organised approach to retrieve “In the last few years there has been a
he pushes to rescind a directive made by in Manicaland. bodies. huge increase in mining concessions and
the government not to exhume bodies Bureaucracy, a lack of funding and tech- Chitando promised to convene a meeting mining operations in the country without a
trapped in two mines, a move largely de- nical knowhow has been cited as among with ministry officials on the matter after corresponding increase in the resources for
scribed by the committee as tantamount to the reasons Zimbabwe is late to respond to the committee demanded solutions that the role of mining inspectors to effectively
declaring the accident scenes grave sites. such disasters, costing lives that can other- could possibly allow the bodies of the mine carry out their work,” he added.

Ministers fingered in Chiwenga makes

dramatic U-turn on
corruption scandal fired health bosses
From Page 1
that the two ministers allegedly last week frantically
tried to block the arrest of Chingombe by giving ver- From Page 1 tory. The human resources director,
bal instructions to Sacu chairperson Thabani Mpofu But sources close to the restruc- deputy human resources director,
saying Chingombe’s reinstatement was a political turing exercise, which is ostensibly chief engineer and hospital manage-
decision made “by the powers that be”. being rolled out to “achieve greater ment services directors were also
Information obtained from City of Harare officials efficiency as envisaged in the Na- placed on paid leave.
indicates that Chingombe, following his unprocedural tional Health Strategy” told the Zim- Operations directors and procure-
reinstatement, is now being primed to take over as babwe Independent that the number of ment officers at the country’s cen-
Harare Town Clerk with the incumbent Hosiah Chi- recalled staffers was high, as fears tral hospitals were also sent on paid
sango facing corruption allegations. of attracting legal action mount. A leave. In the aftermath of sending the
A well-placed source alleged this week that fol- source in the Ministry of Health and top officials on indefinite leave, the
lowing the initial arrest of Chingombe, Moyo and Child Care said the manner in which ministry, which is mired in a web of
Chidawu tried to have him released, but Mpofu re- the restructuring exercise was being scandals relating to the management
fused to buckle to political pressure insisting he was done, in particular putting staffers on of Covid-19 funds, subsequently el-
in possession of evidence allegedly linking the direc- indefinite paid leave, presented grave evated new staffers to assume those
tor to massive looting that has been playing out at legal ramifications, if they are chal- positions in an acting capacity, but
the beleaguered municipality. lenged in the courts. The source re- enjoying improved perks.
“The two Ministers played a critical role in the vealed that the exercise was also gob- Though investigations by the Inde-
comeback of the human capital director in close bling substantial amounts of money. pendent showed that the restructur-
collaboration with the council committee on human In the correspondence under- ing exercise was bleeding the fiscus
resources and the mayor. This was seen as a politi- signed by HSB chairperson Paulinas millions of dollars as the government
cal move to consolidate power in the City of Harare. Sikhosana, seen by this newspaper, paid double salaries to the work-
There are strong indications that Chingombe was dated July 10 advising the workers ers placed on indefinite leave and
now having meetings with Minister Moyo as he was to go on indefinite paid leave, the those elevated to act in their position,
now tipped to take over as acting Town Clerk,” an institution did not give any specific Dzukutu said the process had trans-
official source alleged. charges or reasons for the move. formed the ministry into a trans-
Allegations are that Mafume, chairing a full council In written responses to questions parent structure. A salary sched-
meeting and having received instructions from the sent by the Independent, Dzukutu said: ule within the ministry seen by this
two ministers, enabled the re-appointment of Chin- “The recalled members are two dep- newspaper in October showed that
gombe despite the existence of a tribunal report that uty directors recalled from indefinite the monthly net salary of a medical
implicated Chingombe in allegations of milking the leave namely (a pharmacy and lab director stood at ZW$25 000 (US305)
city council of millions. scientist) to facilitate service delivery while that of a non-medical director
There are also allegations that when the team Local Government minister July Moyo within the ministry. These two mem- varied between ZW$16 000 (US$195)
from Sacu arrested councillors who were to move bers were recalled on December 2, and ZW$18 000 (US$220).They both
a motion on the reinstatement of Chingombe, Chi- ferring the amount to the executive payroll account, 2020 in their existing capacities.” receive a weekly 40 litres fuel alloca-
dawu also called Mpofu pleading for the release of the finance director was allegedly barred from veri- However, Dzukutu could not ex- tion and the US$75 Covid monthly
the councillors. The appointment of Chingombe went fying or inspecting the net amount transferred to plain the nature of advice HSB had allowance. She said:
ahead despite reservations raised by a section of each employee’s account. received from the Attorney General “The objectives of the restructur-
councillors on the existing disciplinary issues against The executive payroll and executive salaries dur- nor the reasons why the officials had ing exercise that were achieved by
Chingombe, sources further revealed. ing Chingombe’s time as human capital director were been placed on indefinite leave say- sending some members on indefinite
“The re-appointment of Chingombe had the back- neither audited nor reconciled and approval of the ing it was an “in-house and confi- leave include, to structure the minis-
ing of Mafume who chaired the full council meeting amounts transferred to individuals rested with Chin- dential issue.” try into an efficient, transparent, ef-
which readmitted him in October. This appointment gombe or Ncube. She said the restructuring was fective and tightly integrated health
was despite the existence of some disciplinary is- Efforts to get comments from July Moyo were fruit- merely meant to improve efficiency. agency of the Republic of Zimbabwe;
sues around Chingombe,” the source said. less as his two cell phone numbers were unreachable A “new ministry structure”, Dzu- (and) to configure the ministry into a
A tribunal report dated May 24, 2018 containing while text messages were not responded to. kutu said, was one of the intended nationally integrated health agency
allegations against Chingombe has since been sub- Chidawu denied playing a role in the reinstate- objectives of the ongoing restructur- that is disciplined, efficient, trans-
mitted to Sacu and Zacc. Chingombe was at the time ment of Chingombe. ing exercise. parent and effective.”
arrested on allegations of double dipping, awarding “I don’t know about that. I was not involved in any “The new approved ministry struc- Though sources told this newspa-
monstrous retrenchment packages and awarding top way,” he claimed. He also denied trying to facilitate ture has not been implemented as per this week that some of the work-
executives unjustified allowances. the withdrawal of charges against Chingombe say- yet, so their (reinstated staffers) posi- ers who had been on indefinite leave
The tribunal report also implicates former acting ing: “I didn’t do any such thing.” tions will only be determined after its had since been retired, Dzukutu said
town clerk Josephine Ncube. Mpofu said he could not comment on the issue implementation,” she said. “for cadres earmarked for early re-
The tribunal according to the report noted that, the since it was now before the courts. As reported by this newspaper in tirement, the process has not been
former finance director, one Mandizvidza was fund- Mafume said: “The issue is that we acted on a October, the staffers sent on paid finalised.”
ing the executive payroll on verbal communication recommendation by the human resources commit- leave include director and deputy Health and Child Care public re-
of the amount due which varied every month from tee and I then chaired the full council meeting which director laboratory services, director lations manager Donald Mujiri did
Chingombe’s. unanimously approved of his reinstatement. As the and deputy director pharmacy ser- not respond to questions on the cost
Such funding was made without any request for law requires, we then submitted it to the ministry vices, director procurement and ad- of the restructuring exercise and the
documentary justification by Chingombe for the which did not object to our decision.” — Andrew ministration services, deputy direc- specific reasons why the workers
amount transferred. Information is that after trans- Kunambura/ Own Correspondent tor administration and logistics and sent on indefinite leave in July were
chief scientist Microbiology Labora- recalled to work this month.
 Zimbabwe independent DECEMBER 11 to 17 , 2020 3

LOCAL NEWS

Anti-graft crusade: NPA scales up tempo

Taurai Mangudhla The first responded, however, denied in- Chikowero, in arriving at the ruling, said
structing Mudimu, adding he had no such the NPA had successfully proved that the
THE National Prosecution Authority (NPA) authority. He also denies having any interest house was acquired through proceeds of
is scaling up efforts to seize assets acquired in Silksilver and being a hidden beneficiary corruption.
through the proceeds of corruption as part at the time of the transaction. “I have traced the first respondent’s hid-
of efforts to fight graft. Further facts show that the house was pur- den hand beginning with the corrupt place-
It will from next week be bringing to chased in February 2017 for a price shown as ment of the order to procure medical sutures
court high profile cases involving former US$24 000. The first and second respondents from Silksilver. His link with Silksilver, its
cabinet ministers Ignatius Chombo, Prisca denied allegations that instalments for the decision-making structures, control of its fi-
Mupfumira and Walter Mzembi to obtain stand were their kickback Mwenye says the nances and the property in question became
an order to seize their properties locally and Silksilver was repaying him for forex which manifest once the PHG had terminated his
abroad. he had supplied from his relative in the dias- contract of employment. Throughout this
Prosecutor general Kumbirai Hodzi con- pora. His wife said Silksilver was paying for Prosecutor general Kumbirai Hodzi episode, his wife occupied the position of
firmed the development saying there was no US$15 000 provided as hard cash. administration officer of Silksilver,” Justice
turning back on its plans to seize corruptly The Zimbabwe Anti-Corruption Commis- The court was therefore asked to find that Chikowero said.
acquired assets. sion carried out its investigations and results the applicant has proved, on a balance of “In the result, the following order shall
The NPA is working with the Zimbabwe were that criminal abuse of duty as public probabilities that house number 31843 Ma- be issued: Stand number 13843 Mabvazuva
Anti-Corruption Commission (Zacc) to officer and money laundering were pre- bvazuva Township, Ruwa, constituted per- Township Ruwa, otherwise known as House
seize the assets estimated at US$7 billion. ferred against the first respondent. sonal property that was acquired through number 31843 Mabvazuva Township, be and
“We are pushing for cases to be set down. The Prosecutor General contends that proceeds of corruption or was tainted is hereby forfeited by the state,” the judge
We argued two cases and judgements have Mwenye was always a beneficiary of property to which the response was in the ruled. The NPA was represented by Chris
been reserved but last week, we won one Silksilver. positive. High Court judge Justice Benjamin Mutangadura.
case,” Hodzi said.
“So starting next week, we are bringing
in the high profile cases you have heard and
written of,” he added.
The NPA is buoyed by its first success-
ful effort, which saw the High Court on
Wednesday granting an order for the forfei-
ture of a Ruwa house belonging to a former
Parirenyatwa Group of Hospitals worker,
Russell Tatenda Mwenye worth US$86 000.
A senior NPA official said: “This is only
the beginning. Many more cases are com-
ing and we are confident of bagging more
successful forfeitures.” Assets forfeiture is
in accordance with provisions of the Money
Laundering and Proceeds of Crime Act and
deals with tainted properties or terrorist
properties.
Civil forfeiture is a developing area of law
and a critical area in the fight against graft.
Its intention is to suppress money launder-
ing by making it easier for the Prosecutor
General, acting for the State, to follow the
proceeds of serious crime and recover the
same. Court documents show that the Pros-
ecutor General’s office successfully argued
a case to seize Mwenye’s Ruwa house be-
lieved to have been acquired from US$86
381,88 being proceeds of a tender scam.
Rutendo Vera, spouse to Mwenye (the
first respondent), and the registrar of deeds
were the second and third respondents in
the matter. Details of the case are that Mwe-
nye was employed by Parirenyatwa Group
of Hospitals (PGH), a public entity, as a
pharmacy stores controller between Febru-
ary 2015 and August 2017. His duties among
others included management of pharma-
ceutical stocks movements, planning and
monitoring, restocking of pharmaceutical
stores in consultation with section heads as
well as developing efficient stock control
systems.
In March 2016, Parirenyatwa flighted ten-
der requesting bids for the supply and deliv-
ery of medical sutures.
Its tender committee carried out due pro-
cess and awarded the tender to Flancon In-
vestments (Pvt) Ltd on the basis that it was
the cheapest bidder to specifications, charg-
ing US$37 844,60
Order forms were raised and it is alleged
the first respondent deliberately omitted to
act on it in order to create a crisis.
“The latter waited until the medical stock
was critically low, thus creating an unnec-
essary shortage and emergency. In so doing,
first respondent acted in a manner incon-
sistent with his duty,” reads part of the court
documents.
The Prosecutor General proved that Mwe-
nye then assigned his subordinate, Yvonne
Mudimu, who was the section head of med-
ical surgical and sundries, to make a direct
purchase of the medical sutures from Silk-
silver, a company wherein he was a hidden
beneficiary.
Silksilver employed Mwenye’s wife as an
administration officer since January 2016.
When Mwenye’s contract of employment
with Parirenyatwa was terminated, he be-
came Silksilver’s managing director for pro-
curing supplies outside tender processes.
Thereafter the couple became signatories
to Silksilver’s CABS bank account in ques-
tion. The US$86 381,88 was transferred by
Parirenyatwa into Silksilver’s CABS bank
account. The cost of the supplies was more
than double that of the winning bidder.
4 Zimbabwe independent december 11 TO 17, 2020

LOCAL NEWS

Hopeless situation for civil servants

Tatira Zwinoira long-term imperatives. These investments
should go towards optimum utilisation of
THE strife within the civil service will re- farms, reliable power and fuel supply, ade-
main commonplace, as wages continue to quate domestic and irrigation water and cli-
be significantly eroded by the country’s mate change-resilient crops and livestock,”
high inflation. he said.
Critical social services such as health “We need bigger dams for irrigation and
and education have been derailed as a re- every farmer in the field. The livestock
sult of frequent strikes over poor working herd needs to be robustly multiplied. The
conditions. budget is still inadequate in this respect.
The reason behind the industrial action More should be done to ensure the country
is the mismatch between wages, which are regains its status as the food basket of the
denominated in the Zimbabwean dollar and region.
the price of goods and services, which are “The UN and government estimate that
indexed against the United States dollar. over half of our population needs emer-
While the government at times has re- gency food assistance. This requires billions
sponded to the strikes by increasing sala- of dollars. In this regard, more resources
ries, the latest increase was a 40% rise last should have been channelled towards the
month, whereby the least-paid civil serv- Ministry of Public Service and Social Wel-
ant would earn ZW$14 528 (US$179). How- fare to save lives from debilitating hunger.
ever, these efforts continue to lag behind We need more resources there.”
inflation, which is the second highest in the Consumer Council of Zimbabwe chair-
world, only behind Venezuela. person Phillip Bvumbe said unless the new
“The social protection focus of this par- presumptive taxes targeting the informal
ticular discussion and I think what the pub- sector bear fruit, consumers will remain
lic is really interested to know is: has this Strikes over poor working conditions continue to derail critical social services such as health. food-insecure.
budget made adequate provision for the “There will be a need for more social se-
salaries to be sorted out within these two to ZW$172,63 billion (US$2,131 billion) in US$3,44 per person. curity because people are suffering,” he
sectors (health and education)?” Zimbabwe 2021. “Just like the previous budgets, it lacked said.
Economics Society (ZES) president Nigel Although the annual inflation rate has precision to the pertinent issues like job Ncube placed several new presumptive
Chanakira inquired at a webinar organised been on a decline to 401,66% for November creation and food security. There’s no guar- taxes to target the informal sector that pro-
by ZES and the United Nations Children’s from 471,25 % for October, 659% in Sep- antee that this time line ministries would vides between 60% and 70% of all econom-
Fund (Unicef), in partnership with the Zim- tember, 761% in August, and 836% in July, be disciplined and live within their budget ic activity in the country.
babwe Independent, titled: 2021 Budget: Towards workers are still struggling to make ends votes,” Zimbabwe Congress of Trade Unions These new taxes were placed on transport
Effective Social Service Delivery. meet. secretary-general Japhet Moyo said in an operators, hairdressers, informal traders,
In response, Finance minister Mthuli For example, last month’s salary in- interview with the Independent. cross-border traders, restaurants operators
Ncube said the government was obligated to creases, where the least-paid civil serv- “It is not about whether; the ZW$30,4 and bottle-stores and the cottage industry.
address the needs of the entire civil service ant would earn ZW$14 528 (about US$179) billion is enough, but only if it would be Labour and Economic Development Re-
and not just the two ministries. and a teacher ZW$18 237 (about US$225) made available at the appropriate time. Pre- search Institute of Zimbabwe founding di-
“Yes. We think we have provided a de- a month, comparatively, is lower than the viously we had instances where the vote rector Godfrey Kanyenze, who was also
cent amount in terms of salaries for these cost of living for a family of five that stood at is announced, but disappears in opaque present at the webinar, queried the ration-
two sectors (health and education). But, ZW$18 750 (about US$231) a month. circumstances.” ale behind the failure to peg social protec-
you see, as a government, we have to har- The need for corresponding wage growth He said food-insecure people were at tion needs against the levels that are paid to
monise right across the civil service; it’s not against inflation comes as food insecurity the mercy of a prevailing toxic political a basket of basic needs such as education,
just from the two sectors of education and continues to increase, caused by poor mac- environment. healthcare and food, in line with, for exam-
health which are very critical,” Ncube said. ro-economic conditions, a below-average “Workers lost big time when the gov- ple, ILO Convention 212 on minimum social
“So, whenever we do adjustments for the 2020 harvest and cereal availability and ernment introduced the mono-currency protection flow.
sector, we have to bring the other sectors Covid-19 restriction measures. regime and the subsequent previous budg- He said this was to avoid the scenario
along as well, so that no one is left behind, Added to this, rising unemployment and ets have not assisted workers. From the where households that are actually in dis-
otherwise we will have serious disparities shrinking job space, are eroding salaries, US$350-US$400 that the majority of work- tress are just receiving a paltry ZW$300
that can cause other problems. But, again, thus depressing disposable incomes and ers were earning as at August 2018, none (US$3,66) in monthly government social
we think that we have done justice in terms consumer spending. has been restored to the same levels,” Moyo protection cash pay-outs.
of salary budgets. We continue to allow for With nearly nine million people fac- said. Heading into the 2021 National Budget, it
salary adjustments upwards like we did this ing food insecurity and with international National Consumer Rights Association was already underfunded by about ZW$679
year. Again, next year, there will be some weather forecasts not pointing to any “sig- coordinator Effie Ncube said of urgent con- billion (US$8,3 billion), as the total budget
salary adjustments. I don’t know when, but nificant” improvements conducive for crop cern was the immediate and pressing needs requests were ZW$1,1 trillion (US$13,44 bil-
there is at least one that comes to mind.” growth in the short term, ZW$30,4 billion of millions of food and nutritionally inse- lion), which is equal to the size of the econ-
Looking at the Treasury’s expenditure (US$371,32 million) has been allocated to cure Zimbabweans. omy, according to Ncube.
plan for next year, in terms of percent- food and nutrition security. “To assure the food and nutritional secu- Yet, only ZW$421,61 billion (US$5,14 bil-
ages, the government plans to only in- Broken down, this translates to rity of the country, the government must lion) was allocated for the 2021 National
crease its employment expenses by 1,5% ZW$284,48 in monthly allocations or invest in an array of short-, medium- and Budget.

Privatisation in limbo as govt

Melody Chikono

EXPERTS say governments’ decision to

centralise control of State firms will de-

moves to control state firms

stroy prospects of privatisation and might
not be the panacea to challenges facing
parastatals.
State-owned entities (SOEs) in Zimba-
bwe have been facing a plethora of chal-
lenges, including recapitalisation, anti- tend that governance inconsistencies and “It seems to me that it’s a move that
quated machinery, investor flight and ministerial interferences can be optimally is entirely unnecessary and it is against
acute shortages of foreign currency. addressed separately without necessarily government’s intention to privatise some
In his 2021 budget, Finance minister widening government bureaucracy. parastatals. I think it is an attempt to ruin
Mthuli Ncube announced that the govern- An investment analyst, Enock Rukwar- privatisation. The fact that the government
ment would adopt a centralised owner- wa told businessdigest that while the current assumes control might scare away future
ship model for SOEs to eliminate incon- decentralised SOEs governance model has investors. Maybe that is wrong but there
sistencies in governance and ministerial failed to galvanise necessary efficiency, is no way of telling what government will
interferences. the centralised ownership model might then do but the intention to remain share-
Under the centralised ownership model, not be the panacea to government para- holders jeopardises future privatisation
a single government institution carries out statal challenges. plans for such entities,” he said.
the role as shareholder in all companies “Economic systems have two extremes According to Ncube, the other support-
controlled by the State. which are; perfect competition and gov- ive 2021 SEPs Policy Priorities that would
Zimbabwe has a decentralised State En- ernment control; migration from the cur- be implemented simultaneously with
terprises and Parastatals (SEPs) ownership rent governance model to centralised the transformation of the SEPs owner-
model, where the government sharehold- ownership is only an intense case of the ship model would entail privatisation of 11
er function is spread across different line same government-controlled system. SEPs, six Industrial Development Corpo-
ministries and the model has been associ- Governance inconsistencies and minis- ration and 17 Zimbabwe Mining Develop-
ated with a number of challenges, includ- terial interferences can be optimally ad- ment Corporation subsidiaries.
ing inconsistencies in governance practic- dressed separately without necessarily It would also entail merging of the re-
es, ministerial interferences, delays and/ widening government bureaucracy. Since maining five entities, completing the
or reversals of government approved SEPs the model will be applied for selected dissolution of all subsidiary boards for
reforms due to vested interests within State-owned enterprises that are not ear- Finance minister Mthuli Ncube Zimbabwe Electricity Supply Authority
some line ministries, and generally weak marked for privatisation, the initiative is Holdings and allowing Zimbabwe Power
and passive oversight function, among worthwhile for a trial run,” he said. shareholder in state firms. Company to engage strategic partners for
others. Economic analyst John Robertson said Robertson said the government should its power generation projects, as well as
While the centralisation model is ex- the model was unnecessary and was pos- be adopting mechanisms that promote recapitalisation of the newly established
pected to eliminate the challenges associ- ing a threat to privatisation given that the privatisation in most government entities Silo Foods through strategic partnerships
ated with the current model, analysts con- government is keen on remaining a major to make them viable. is also on the cards.
 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 5

LOCAL NEWS

MOSES MATENGA

THE United States has warned that the

terrorist attacks in Mozambique are be-
Mozambique terror spilling into
neighbouring countries: US govt
ginning to spill over into neighbouring
countries, hence the need for a concert-
ed regional effort to put down the deadly
insurgency.
The terrorist attacks linked to the Islam-
ic State took over Mocímboa da Praia in
August in one of a series of brazen attacks
this year in Mozambique’s northern-most
Cabo Delgado province.
The Islamic militants have killed over
2 000 people in grisly fashion in the past
three years, although they have par-
ticularly scaled up attacks in the past six
months.
An estimated half a million people have
been displaced.
Speaking in a teleconference from
Washington after his recent visit to the
Southern Africa region US Ambassador-
at-large Nathan Sales, Co-ordinator for
Counterterrorism and Special Presiden-
tial Envoy to the Global Coalition to Defeat
ISIS, said the US was committed to assist-
ing in fighting insurgency in the neigh-
bouring countries. Mozambique’s northern-most Cabo Delgado province has experienced terrorist attacks linked to the Islamic State.
“We are already starting to see a bit of
spill over from the violence in Cabo Delga-
do into neighbouring countries,” he said.
“And so as much as we want to work on
a bilateral basis with countries that are af- BINDURA NICKEL CORPORATION LIMITED
fected, it’s also important to have multi-
stakeholder conversations so that coun-
Trojan Mine Road, Bindura, Zimbabwe
tries that are affected by this violence can P.O. Box 35, Bindura
coordinate their efforts and make sure that Telephone: +263 (0) 772185650/1/2/3/4
we’re bringing to bear the full suite of our Email: [email protected]
respective capabilities and resources to Company Registration number: 552/1966
address the problem set.”
“It raises an important point which is
that transnational and regional solutions
really are essential to getting terrorists ANNOUNCEMENT TO THE SHAREHOLDERS OF BINDURA NICKEL CORPORATION LIMITED REGARDING THE
threats under control,” he added. DISPOSAL AND ACQUISITION OF AN AGGREGATE 74.73% OF THE ISSUED SHARE CAPITAL OF BINDURA NICKEL
He said in his trip to Mozambique and CORPORATION LIMITED (‘BNC’ OR ‘THE COMPANY’)
South Africa, he engaged government of- __________________________________________________________________
ficials to garner support for increased co- 1. Background
operation on counterterrorism issues.
“I think this raises an important point, 1.1 This announcement is being made to the shareholders of the Company in terms of the provisions of the Securities and Exchange (Zimbabwe Stock Exchange Listings
which is that transnational and regional Requirements) Rules, 2019, Statutory Instrument 134/209 (“Listings Rules”).
solutions really are essential to getting
terrorist threats under control and to de- 1.2 On 29 July 2019 Asa Resource Group Plc (In Administration) and its associates (‘Asa or ‘the Seller’) represented by its Administrators Mark Skelton, Trevor Birch and
grading and defeating terrorist networks,” Richard Fleming entered into a Sale of Shares Agreement (‘the Agreement’) with Sotic International Limited and its associates (‘the Purchaser’ or ‘Sotic’) in terms of which
the Seller disposed of its shareholding in Mwana Africa (Proprietary) Limied (‘Mwana’), Asa Gold Limited (‘Asa Gold’) and Zimnick Limited (‘Zimnick’).
Sales said.
The US, he added, was committed to 1.3 Mwana, Zimnick and Asa Gold hold a combined 74.73% of the entire issued share capital of the Company (‘the Transfer Shares’). Consequently, the Purchaser is now the
fighting terrorism in the region and be- indirect holder of such shares.
yond as they have always done in several
other countries. 2. Notification of the Transaction
“The fact that I travelled to southern Af- A cautionary statement to shareholders was published on 29 October 2019 in respect of the transaction. The shareholders were subsequently notified of the consummation of the
rica under the circumstances is an indi- transaction when the Company published its financial results and notified its shareholders of the change of directors as appointed by the Purchaser.
cation of how seriously the United States
takes the terror situation on that part of 3. Transfer of Shares
the continent as well as how seriously we
3.1 In terms of the Agreement, Sotic or any of its nominated associates would receive transfer of shares from Zimnick, Mwana and Asa Gold. Sotic and its associates nominated
take our commitment to work with part- Kuvimba Mining House (Private) Limited as the entity receiving the shares.
ner nations to address this threat,” Sales
said. 3.2 On 22 September 2020 the shares were, in terms of the Agreement, transferred to Kuvimba Mining House (Private) Limited, a limited liability company duly incorporated in
“The US and the government of Mozam- accordance with the laws of Zimbabwe.
bique have a shared interest in peace and
stability. We have seen ongoing violence 4. Value of the Transaction
in the Northern Province and we are con- Based on the market value of the shares of the Company on 22 September 2020, the purchase consideration for the shares transferred from Zimnick, Mwana and Asa Gold to
Kuvimba Mining House (Private) Limited was ZWL3 486 344 584.17 (Three Billion Four Hundred and Eighty Six Million Three Hundred and Forty Four Thousand Five Hundred
cerned this violence threatens the security
and Eighty Four Zimbabwean Dollars and Seventeen Cents).
of Mozambican citizens and threatens de-
velopment and has potential to undermine 5. Waiver
livelihoods of Mozambican people.”
He said the terror attacks have caused a The Company applied for a waiver to make an offer to its minority shareholders and the waiver was granted by the Zimbabwe Stock Exchange.
severe humanitarian crisis in the southern
African country. 6. Directors’ Responsibility Statement
“Here in the United States our key prior-
ity is counter terrorism with security sup- The Directors of the Company, whose names appear below, individually and collectively, accept
port while protecting the civilian popula- full responsibility for the accuracy of the information pertaining to Bindura Nickel Corporation
tion by providing the humanitarian assis- Limited contained in this announcement and certify that, to the best of their knowledge and
tance to those who have been displaced by
violence.” belief, the information contained in this announcement is true, correct and not misleading.
“The US wants to be Mozambique’s se- Full name Position Signature
curity partner of choice in strengthening
Muchadeyi Ashton Masunda Non-Executive Chairman
border security and in strengthening its
capacity to counter terrorist activity.” Jozef Clifford Behr Non-Executive Director
Sales’ statements come at a time the
Sadc organ on politics, defence and secu- David Hugh Brown Non-Executive Director
rity last week announced it was consider- Obey Chimuka Non-Executive Director
ing a joint military effort in Mozambique.
The Extraordinary Organ Troika Summit Craig Gerald Meerholz Non-Executive Director
directed the finalisation of a comprehen- Thomas Lusiyano Managing Director
sive regional response and support to Mo-
zambique to be considered urgently by the
Summit, the Organ said in a communique. 7. Approval of Publication of Notice
Sadc is due to hold an extraordinary
The Company sought and was granted approval by the Zimbabwe Stock Exchange on 13 November 2020 to publish this notice to its shareholders and the investing public.
heads of state and government summit of
all the 16 member states in March 2021 in
Maputo, Mozambique. By Order of the Board
The Sadc Parliamentary Forum, dur-
ing its virtual meeting at the weekend,
unanimously adopted a motion moved by
Speaker of the National Assembly Jacob Conrad Fungai Mukanganga
Company Secretary
Mudenda to urgently intervene and save
8 December 2020
Mozambique.
6 Zimbabwe independent december 11 TO 17, 2020
 Zimbabwe independent DECEMBER 11 TO 17, 2020 7

LOCAL NEWS

‘Tap into resources to ward off crippling debt’

Tinashe Kairiza The diplomat, who has met
Mnangagwa several times since
ZIMBABWE should leverage on his arrival in the country, also
its vast resource endowment to said tackling corruption and
extinguish its US$8,2 billion debt quantifying Zimbabwe’s natural
stock that has crippled the coun- resources, particularly minerals,
try from accessing fresh lines of was also part of the mix to resolve
credit from multilateral lenders, the debilitating economic crisis.
a top diplomat has said. “It is also important to devel-
The southern African coun- op the value of the assessment
try, mired in an intractable eco- of natural resources in the right
nomic crisis that has seen indus- way, to avoid smuggling chan-
trial output stagnate markedly nels and to invest in education
and spiking inflation hovering and training in the fields of tech-
around 400% has been shut out nology,” he said.
from unlocking fresh credit from Notably, Musan highlighted
International Finance Institu- that Zimbabwe could also di-
tions for non-payment. rectly market its diamonds to the
A reengagement drive trading hub of Israel instead of
launched by President Emm- relying on merchants.
erson Mnangagwa’s adminis- “The problem in this field as I
tration, tailored to settle Zim- see it, is an incorrect assessment
babwe’s huge external debt, is of the value of diamonds whose
now dead in the water after the results enrich a limited num-
government failed to roll out key ber of diamond merchants, who
reforms. come to buy and sell Zimbabwe’s
Notably, Zimbabwe has missed diamonds abroad in much higher
key targets of the International amounts but leave local reserves
Monetary Fund Staff Monitored in deficit,” he said.
Programme. “Diamond dealers can certain-
In an interview with this ly make money, no one works for
newspaper this week, Zimba- President Emmerson Mnangagwa a free. But there is a huge differ-
bwe’s Honourary Consul in Israel ence between making money and
Ronny Levi Musan said it was Musan said: “The first thing Because there is proper crisis sources. It has fertile ground that milking Zimbabwe’s resources. I
imperative for the country to also is not to be so shocked by the management. even if you plant a broomstick get a lot of inquiries from inter-
guarantee property rights under number (US$8,2 billion debts). “Crisis management is not un- you will get a fruit tree. You have national diamond traders who
a raft of measures needed to set- It is important to work on reha- dertaken in one day. There is no to manage the crisis properly, trade with Israel, because Israel
tle its debt. bilitation plans instead of pan- magic formula in state recovery. promote agricultural develop- is undoubtedly a diamond trad-
With investors preferring other icking. Do you know that before It is a process that President Em- ment and export agricultural ing power probably now because
relatively stable investment des- the beginning of Covid-19, the merson Mnangagwa is leading in products that can feed European of the peace agreements with the
tinations, Musan said, Zimbabwe national debt of the State of Is- promoting important reforms in countries, give investors the se- Emirates,” he said.
could also transform its agricul- rael was US$250 billion? And Zimbabwe that will undoubtedly curity they need in order for Zimbabwe is working towards
ture sector to serve the European today it is higher and still Israel's save it from this “big debt”. them to invest foreign currency establishing fully fledged diplo-
export market. credit rating is not falling. Why? “Zimbabwe has natural re- here,” he added. matic relations with Tel-Aviv.
8 Zimbabwe independent DECEMBER 11 TO 17, 2020

EDITORIAL & OPINION

Zimbabwe
Independent
DECEMBER 11 TO 17, 2020

Give cotton farmers

what belongs to them

W
HEN he was Finance minister before the 2017
coup, Zanu PF bigwig Patrick Chinamasa
popularised the phrase: “We must not kill the
goose that lays the eggs”.
Simply put, businesses need government
Shortage of urban housing
H
support to grow and unlock more opportunities for people.
EART-WRENCHING cause housing cooperatives re-
A case in point is the disaster that is unfolding in the cotton
farming subsector. Rains started falling two weeks ago but over
videos of illegal struc-
tures being demol-
Editor’s fused to pay bribes to council town
planners.
ZW$3 billion (US$36,6 million) has not been paid to farmers
who delivered their produce many months ago. There is a clique
ished have been cir-
culating on social me-
Memo Going forward
of crooks calling itself “cotton merchants” who have operated as dia in the past month. This week it faith zaba Both central government and
they pleased in the past decade. The State-run Cottco also operates was distressing to watch women councils are blaming each other
wailing, particularly a mother of for the demolitions and this must
in this space. There is every reason to suspect that these so-called
a two-month old baby, who has stop. The Zimbabwe Anti-Corrup-
“merchants” are assets of powerful and untouchable bigwigs be- now been rendered homeless after tion Commission and police need
[email protected]
cause they have been left to cream off farmers of their hard earned her house was torn down. to investigate these allegations
money without consequence. “Zimbabwe is for everyone,” around allocation of stands.
This year they made the unilateral decision to give farmers gro- she screamed. “When people do corruption, and not genuine desire Known land barons, corrupt
this to others, what is that? Am I to have proper town planning”. politicians, councillors and man-
ceries to cool off the tempers while they played games with the
living in Botswana? I am in Zim- The question that everyone is agers must be arrested, prosecuted
farmers’ money. But these farmers are not kids. They are in busi- babwe (my home country) and asking is why the local authorities and given deterrent sentences. As-
ness too. They want to buy inputs in time to return to work. It is you demolish my home. I am go- did not stop construction at foun- sets acquired from the proceeds of
annoying that there has been no word from the government in the ing to be sleeping in the open with dation level. For more than two their land corruption must be for-
wake of this clear manipulation and gamesmanship, which affects a two-month old baby because of decades, unplanned settlements feited to the Council.
you — A two-month old baby is have been allowed to mushroom, Local authorities need to devel-
the economy.
going to be sleeping outside in the with no effort to stop them. op an electronic housing waiting
By the time the ZW$3 billion is released, it will not have the open,” she wept. Zimbabwe faces an acute short- list such that there is very minimal
same value as it had in August when farmers were shipping their Furniture was scattered around age of urban housing. Local au- contact between home seekers
cotton. It will be pocket money for the looters, given damaging in- in the mud. Some tried to stand thorities are not servicing land for and council officials. An electronic
flation and rocketing prices. In the end, it is the small-scale farmer defiantly in front of bulldozers in housing developments. Desper- housing waiting list will promote
a desperate attempt to stop them ate home-seekers have become transparency and accountability.
who loses.
from demolishing their properties, prey to corrupt councillors, local The local authorities also need
Surely, this should be a deliberate tactic to force them to accept but to no avail. authorities’ management, land to document land they own, in-
inputs from the same merchants who are exploiting them. Yet it About 190 illegal houses were barons and central government formation that only seems to be
is known that inputs from these contractors come with punitive demolished by Harare City Coun- officials, especially from the Min- known by a few individuals in the
demands and conditions that turn farmers into perpetual beggars. cil in Budiriro five this week. The istry of Local Government and town planning and valuation de-
police arrested Caleb Kadye, an Public Works. What has emerged partments. It seems there is no po-
They cannot return to the fields because they cannot buy inputs.
alleged land baron, on charges of is that the corruption starts with litical will to put order at the mu-
They cannot buy Christmas goods for their families because they parcelling out stands on Tembwe the local authority’s manage- nicipalities as the chaos is breed-
are simple peasants who will accept anything. The sad thing is, this Housing Cooperative. ment, who have access to council ing corruption.
is how Zimbabwe has killed enterprise. The demolitions were conduct- documents, site plans, area maps, Municipalities should identify
This same wickedness has played out in the whole cotton value ed as rain poured down on the council resolutions and commit- land for proper housing delivery
furniture. It was difficult to watch tees' minutes. Cartels working for all the victims of corruption.
chain, with disastrous consequences. Cotton output has plum-
the women and children crying, with officials at the councils use The victims must also play their
meted by over half in a decade, and it is likely to decline further. as they watched their homes being fake site plans. Desperate home part and reveal how they were
Where is the giant David Whitehead Textiles Limited today, turned to rubble. seekers are shown the fake papers duped, and produce the fake doc-
which employed 3 000 people? Cone Textiles, once the pride and Thousands of residents in Harare to convince them that everything uments that they used to acquire
joy of Zimbabwe that employed over 5 000 went belly up. Just a and surrounding areas are facing is above board. the land through corruption.
evictions as local authorities em- In some cases, councillors and This issue is a double-edged
few years back 300 workers lost their jobs when Cottco went bust.
bark on an operation to demolish management sell the land, even on sword. The local authorities must
The list of failing enterprises is endless. illegal structures. wetlands, before starting the legal also not be seen to be condoning
Cotton farmers hold the key to the survival of many fragile in- While we do not condone illegal processes in terms of the Regional, corruption by regularising the ille-
dustries. The clothing and textile industry once employed 35 000 parcelling out of stands, the dem- Town and Country Planning Act gal sales. One way to do this would
people; the headcount could be just 2 000 now. olitions have been ill-timed and (Chapter 29.12). Processes to regu- be for the victims to pay penalties
with the onset of the rains means larise the sale is done and back- and all planning fees before regu-
The temptation is to blame imported fabric for this carnage. But
there will be more suffering. dated to suit the plan. lalisation. Councils should first
no, there is so much that the government and the so-called mer- Harare Residents Trust direc- There has also been times, un- identify alternative land, properly
chants have messed up to leave this economy in the crisis that it tor and founder Precious Shumba fortunately, when houses have allocate it, and use the electron-
faces today. describes the demolitions as “vin- been declared illegal and orders ic housing waiting list as earlier
dictive, insensitive and driven by to demolish secured mainly be- highlighted.

Statutory Instrument 281 radiates a stink

Z
IMBABWE on Wednesday this “In this case we have the Fukushima dis- the Radiation Protection Act, 5/2004 (14) a:
week woke up to read about Stat-
utory Instrument (SI) 281 of 2020:
aster that occurred in Japan in 2011. Most
Zimbabwe vehicle imports come from Ja-
Candid the Rpaz’s regulatory functions should be
“effectively independent of other functions
the Radiation Protection (Safety
and Security of Radiation Sourc-
pan. So, we are now operationalising that
legal instrument at Beitbridge, which will
Comment if that body is involved in both the man-
agement of radioactive sources and in their
es) (Amendment) Regulations, 2020 (No. be our pilot port of entry. This will be rolled nevanji madanhiire regulation”.
5) which seems aimed to stop car imports out to all borders in due course,” Rpaz [email protected] What this means is that the Rpaz cannot
from Japan but in reality could be another spokesperman Chamunorwa Murava said. set up camp at border posts to do the test-
feeding trough for the elites in government As is well known, when the Fukushima ing and the decontamination. The reason
and in the agency that administers the Ra- nuclear disaster happened in 2011 and in What has prompted the government to for this provision in the Act is to avert cor-
diation Protection Act. 2012, the government, together with the change heart nearly a decade later? ruption. The Rpaz could just simply declare
The SI had gone unnoticed for more Japanese embassy, assured Zimbabweans Of course it is the money! The Rpaz is set every car, or most of the cars, contaminat-
than a week because it seemed innocuous that car imports from Japan were safe. The to make about US$3 000 daily just test- ed, and get away with the malfeasance.
enough and was not exactly new until its official Herald newspaper carried a report ing the 200 vehicles that reach port daily: Studies elsewhere have shown Japanese
purpose became clear on December 8. on March 15, 2012 which said: that is a whopping US$1,1 million dollars a cars are safe and the Japanese have assured
Gazetted on November 27 it sets new “The Japanese government has allayed year and if, which is very likely, every car the world that their vehicle exports are safe
rules for vehicle imports. All cars imported fears that vehicles being imported from that is to be decontaminated at US$50 each that before distribution. They would be stupid
will have to be tested for radiation and if country into Zimbabwe could have been would rake in more than US$5,475 million. not to do so!
contaminated, cleansed; both processes at a contaminated by radioactive material fol- That was too low a hanging fruit for the Rpaz will not get any sufficiently con-
charge administered by the Radiation Pro- lowing the Fukushima nuclear disaster in government to ignore. taminated vehicle at Beitbridge – just the
tection Authority of Zimbabwe (RPAZ). March last year.” But there is a huge problem. According to money!
 Zimbabwe independent DECEMBER 11 TO 17, 2020 9

ECONOMY & FINANCE REVIEW

Africa Continental Free Trade Banks leverage on IT for

branch rationalisation
Area a Frankenstein monster? IN an economy with sound
economic fundamen-
Ceteris
Zimbabwe's development agenda ex- ly in terms of fertiliser and cement. tals, interest income is the Paribus
The Brett pressed as the National Development
Plans (1&2), the two national devel-
Dangote's new fertiliser factory is
going into operation in March 2021.
conventional way banks
generate most of their rev- eben mabunda
Chulu opment strategies underpinning Vi- Dangote Fertiliser will be Africa's enue. In Zimbabwe’s “casino

Column sion 2030 , seeking to transform Zim-

babwe into an upper-middle-income
largest fertiliser manufacturer.
Zimbabwe's fertiliser value-chain
economy” that is not the case as sub-optimal interest rates
determined by the central bank, in the face of unbridled infla-
country. strategy outlined in the NDS1 does tion, has forced local banks onto an unconventional revenue
There are several salient points that not factor in the Dangote factor — generation path, with most of their revenue coming from non-
THE Africa Continental Free Trade surface. This article will focus on four. Dangote enterprises ruthlessly de- funded income.
Area (AfCTA) came into effect on May First, the recently launched National ploy economies of scale to achieve Meanwhile, significant IT developments have provided cut-
30, 2019, launching the first phase of Development Plan One (NDS1, 2021- competitiveness. ting-edge solutions to the banking fraternity on a global scale,
its implementation roadmap. 2025) that starts on the same date as Dangote is ready — we are still whose results have also cascaded to sub-Saharan Africa and
The AfCTA is a continental trade the phase II of AfCTA, hardly speaks to planning to start - if we drop tariffs penultimate Zimbabwe. Over the past couple of years, Zim-
liberalisation agenda that envisages the AfCTA. This is extremely concern- we open up the country to ruthless babwean banks have collectively spent over US$100 million
the removal of all trade barriers in the ing to learn that our national develop- competitors such as Dangote. The on upgrading their core systems, cementing their online bank-
form of both economic and non-tar- ment strategy seems to have not delib- story of Dangote Cement in Zam- ing services, launching mobile applications and even offering
iff barriers. Economic trade barriers erately factored in an extremely con- bia is instructive; its entry caused Whatsapp bot interactive services.
would include trade restrictions such sequential economic development. cement prices to fall. Dangote Ce- While the idea is to bring convenience and ease of bank-
tariffs and quotas. Non-tariff barriers Treasury had ample time to study the ment from its Zambian manu- ing, IT is proving to be a double-edged sword, which also
would include infrastructure (physical implications of phase I of AfCTA that facturing plant will likely find its allows for branch rationalisation. A tough operating environ-
and digital), corruption at the borders, came into effect in May 2019 in readi- way into Zimbabwe aided by an ment, compounded by the economic effects of the Covid-19
inefficient border operations and lack ness for the NDS1 and its supporting existing good transport infrastruc- pandemic, has necessitated cost-cutting initiatives in order to
of support for vulnerable trade groups national budgets. ture links between Zimbabwe and keep the financial institutions afloat. In the same bracket, the
such as women and the youth. The 2021 National Budget is com- Zambia. novel coronavirus has disrupted normalcy of business, placing a
The first phase focuses on agree- pletely silent on the trade liberalisa- Third, if Zimbabwe decides to high demand on robust digital systems as telecommuting gains
ments on trade in goods and services. tion commitments — we expected a delay implementing the tariff re- traction.
The second phase is expected to go into clear statement on how as a country duction commitments as per Af- Tech developments have provided a solution which allows
operation on January 1, 2021. The sec- we were planning to meet our yearly CTA, the country will lose out on banks to trim down their operations with a migration from brick
ond phase is about putting in place na- commitments to reduce tariffs. Could its strategic investment to facili- and mortar structures onto their digital foray. Over the past 18
tional investment plans, competition this strategic miss reflect that AfCTA is tate movement of goods from the months several local banks have closed and “merged” some
policy and intellectual property rights. just a mere talk show or is a reflection South African seaport and its man- of their branches on the pledge of “efficient” digital services.
The bigger picture underlying the of our own national incompetence? Is ufacturing hubs to countries to the In August, RSA-headquartered financial institution Nedbank
AfCTA is the establishment of an Af- Zimbabwe adopting a wait-and-see north of Zimbabwe. closed its Kwekwe branch, “merging” it with the Gweru branch.
rican Single Market, African Monetary attitude, waiting for other countries to The new bridge linking Botswa- In effect, should Kwekwe clients encounter challenges with their
Union and an African Political Union. make the first announcements? na, Namibia and Zambia would di- bank they would need to seek assistance from Gweru — 70
This bigger picture is often lost in the However, it is inexcusable for Treas- vert transit traffic away from Zim- km away.
discussions on the AfCTA. ury to at least make a statement on babwe through Botswana. Standard Chartered Bank, one of the oldest banks in Zimba-
The African Union's Agenda 2063 its assessment of the likely impact of Fourth, since Africa's current bwe in 2018 launched the Standard Chartered App as part of a
sets 2023 as the timeframe for the es- AfCTA in terms of both opportunities trade is overwhelmingly dominat- broader group digitisation exercise. In the last quarter of 2019,
tablishment of an African Monetary and down risks. Are we afraid that we ed by agricultural produce, Zim- StanChart streamlined nine of its national branch network to
Union. It is not yet clear if that 2023 could have sheepishly agreed to create babwe stands very little chance of just three centres; two in Harare and one in Bulawayo.
target will be met. However, it should a Frankenstein monster? We cannot competing in that space as several Elsewhere, the StanChart group opened branchless banking
be clear in our minds that the AfCTA act as if we are in denial — AfCTA is countries farm more efficiently. operations in Ivory Coast in 2018 as part of the group’s digitisa-
agenda is the first step in a broader here. This is the reason this writer has tion programme. Bill Winters, StanChart Group CEO is on record
agenda that seeks to establish a su- Second, AfCTA , in the immediate, been advocating for our agricul- saying the group intends to maintain its presence in Zimbabwe.
pranational economic and political presents a serious threat to the NDS1 ture strategy to go beyond food In an exclusive with Equity Axis, ZB CEO Ron Mutandangayi
authority. and in the long-term the attainment self-sufficiency goals but to aim disclosed that the group’s advances on the IT front, would also
Zimbabwe has ratified the AfCTA of Vision 2030. South Africa, with towards achieving leaps in pro- allow for the “rationalisation” of the group’s banking operations
phase I. It negotiated for a special dis- the continent's most advanced and ductivity to ensure we produce with branch closures on the cards
pensation in terms of implementing competitive manufacturing sector is surpluses that can compete in the Regionally, Standard Bank in South Africa closed about a
the first phase. It was placed in a group poised to benefit in a skewed manner. export market. hundred branches between 2019 and 2020 in a migration to-
of seven countries that include Dji- With tariffs present, South Africa ac- If we do not address the agricul- ward digital banking. In the same country, a fully digital bank,
bouti, Ethiopia, Mozambique, Malawi, counts for 30% of Africa's intra-con- ture productivity imperative, Af- TymeBank was licensed in 2017 and hit a million users by the end
Saharawi and Zambia and labelled the tinental exports. South Africa is Zim- CTA will open the way for cheaper of 2019. TymeBank does not have any physical bank branches
Demmszz. The countries asked for a babwe's single largest trading partner, agriculture imports to flood Zim- and relies on an Android banking App, an internet banking site
phased reduction of economic tariffs accounting for about 60% of Zimba- babwe. The barriers to agricultural and a partnership with two retail chains, Pick n Pay and Boxer.
across a range of goods and services. bwe's trade. productivity such as insecure land Standard Bank’s Zimbabwean subsidiary; Stanbic this De-
The Demmszz were granted permis- Our phased linear tariff reduction tenure, if not removed expedi- cember announced plans to terminate physical operations at
sion to fully liberalise trade (complete will stifle our own re-industrialisation tiously, will birth an existential its Hwange and Westgate branches effective December 31,
removal of tariffs) on non-sensitive agenda as more competitive goods crisis for Zimbabwe as AfCTA un- 2020 as it embraces digital banking solutions. This move fol-
goods and services in two steps; 85% and services will flood Zimbabwe be- leashes the forces of liberalisation. lows a similar closure of Chitungwiza and Beitbridge branches
liberalisation over 10 years and the re- fore our own manufacturing industry If as a nation we do not get our last year. The two imminent closures will leave the Standard
maining 15% over 15 years. On sensi- recovers. strategy ducks in a row, the AfCTA Bank group subsidiary with 15 branches nationwide, down from
tive goods and services, the Demmszz With Zimbabwe still facing a drought we co-created with other African 19 last year.
are expected to fully liberalise in 13 of foreign investment and other capital nations will turn into a Franken- However, while the closure of branches significantly reduces
years. The rate of liberalisation will be flows due to the huge debt overhang stein monster that will devour us. administrative costs it comes with its negatives. This translates
linear, meaning tariffs will be reduced owed the Bretton Woods Institutions, With further analysis, our NDS1 is to retrenchment of many employees as most of the banks’ vir-
in equal quantum over the timeframe the African Development Bank, the not robust enough to reduce the tual activities become automated.
until tariffs are zero European Investment Bank and the threats brought about by AfCTA. Technical glitches are also a part of the basket, inadvertently.
By ratifying the AfCTA, Zimbabwe Paris Club, the country will not get Forewarned is forearmed. Fact is, while tech developments bring ease and convenience,
has participated in the creation of a enough money to modernise our sec- in this part of the world where technological ecosystems lag
significant economic institution. The ondary industry and replace ineffi- Chulu is a management consultant and behind those of the first world, branch closures leave clients at
question is: Has Zimbabwe helped cre- cient machinery. a classic grounded theory researcher the mercy of flawed digital systems which still need perfection.
ate a Frankeinstein monster that will Our secondary industry will be out- who has published research in an ac-
one day turn on its creator? competed, not only by South Africa but ademic peer-reviewed international Mabunda is an analyst and TV anchor at Equity Axis, a leading
In attempting to answer this ques- by other countries. A major threat out- journal. — brettchuluconsultant@ financial research firm in Zimbabwe. — ebenm@equityaxis.
tion, the AfCTA will be assessed against side South Africa is Nigeria, specifical- gmail.com. net.

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10 Zimbabwe independent december 11 to 17, 2020

INTERACTIVE FEEDBACK

The forgotten case of Mr Yuchang

Alex
Magaisa
lawyer

„„ON March 8, 2016, Li Yuchang, a Chinese

national, walked into Harare International
Airport, as it was then called. He was on his
way home. He was booked on the Emirates
flight to Dubai and onward to China. Things
did not go according to plan.
As he was negotiating his way past the
airport procedures, Yuchang hit a snag.
He was stopped by detectives attached to
the Minerals and Border Control Unit. They
had him under surveillance, although he
was blissfully unaware of big brother’s eye.
The detectives had received a tip-off that
Yuchang was up to no good.
Upon searching his person and posses-
sions, the detectives found several things
that stretched legal boundaries.
He had the following items:
l  Three buffalo skin belts;
l  One crocodile skin handbag;
l  Three crocodile skin purses;
l  Two elephant skin belts; The justice system in Zimbabwe can be inept, but the handling of some cases by the courts is questionable.
l  Three elephant skin purses; and
l  Three hippopotamus skin belts. The High Court has the power to review to a superior court believing that he had the case of an attempt to smuggle gold out
It is not clear whether he had declared to judgments from the magistrates’ court. It committed a gross irregularity! Although he of Harare to Dubai. It is very easy to for-
the Zimbabwe Revenue Authority, the tax can set aside a magistrate’s judgment on the was impressed by Yuchang’s explanations, get because, in these days of great flows of
authority. In any event, these items did not ground of gross irregularities in the han- the judge still found that there was no gross information and scandals, the public’s at-
seem to concern the authorities. dling of the matter. The magistrate thought irregularity. tention span is very short.
It was the cash they found on him that he had mishandled the matter, which is In the judge’s view, the magistrate’s deci- One day people will gasp and wonder
drew their attention and caused him why he referred it to the judge. sion should have been challenged on appeal how the accused persons got away with
a lot of trouble. Yuchang had a total of Upon reading the papers, the judge ex- on the ground that he had misdirected him- it. Because there is a good chance of those
US$32 000 in cash. Of this amount, US$10 pressed doubt that Yuchang was not aware self. So why was there no appeal? If the cases going Yuchang’s way. And everyone
000 was secured under his belt strapped of the law or the language as he had claimed. magistrate thought he had made a gross will be left asking: how did they get away
around his waist. US$20 000 was stashed Yuchang had a business in Harare, where he error warranting a review, surely the pros- with it?
inside his hand luggage, which had been ran a bookshop at Borrowdale Brooke, an ecutors must have felt aggrieved on behalf
shrink-wrapped. The remaining US$2 000 eminently affluent location in Zimbabwe’s of the state and noted an appeal? Magaisa is a Zimbabwean lawyer and academic
was in his wallet. At the time, Zimbabwe’s capital. Surprisingly, according to the judge, “The at the University of Kent, where he teaches pub-
exchange control laws imposed a maxi- Before this, he had been employed as prosecution does not appear to have been lic law and governance. He was chief of staff in
mum limit of US$5 000 for money taken out a consultant by the Zimbabwe Defence concerned with the findings of the trial the Prime Minister’s Office during the inclusive
of the country at any given time. Yuchang Industries (ZDI), a private entity of the court and the resultant sentence”. government (2012-13). The article first appeared
exceeded this limit by US$27 000. He was country’s military. Like many other foreign Perhaps Yuchang must count himself on his blog Big Saturday Read. Twitter: @wama-
therefore arrested. nationals who come to work in Harare, he fortunate that he was not a member of the gaisa, email: [email protected]
When he appeared in court, Yuchang had found comfort and opportunity, which opposition party. The absence of appe-
claimed ignorance of the law. He also plead- prevented him from leaving. The apparent tite on the prosecutors’ leaves unanswered
ed a language handicap: he said he struggled face of Yuchang’s opportunity was selling questions. For his part, the judge felt that

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with the English language. books. It must have been very profitable. he was constrained by the law and that he
This is what his lawyer told the court as After analysing the way Yuchang had could not do much to change what had hap-
a special circumstance to be considered in carefully hidden his money, the judge ex- pened at the magistrates’ court.
sentencing. To his credit, Yuchang did not pressed doubt at the claim of ignorance. This is how the matter ended. Yuchang
waste the court’s time by trying to deny “This does not appear to be the act of a had only suffered a minor inconvenience.
the alleged offence. After all, he had been person who was unaware of the financial More significantly, he got all his money

Send your feedback to the Zimbabwe

caught red-handed and he probably re- regulations,” the judge wrote. back. It is easy to forget, but in those days,
alised the futility of denying it. He chose “The very fact of hiding cash under the foreign currency was extremely scarce in
refuge under the guise of ignorance of the belt was a well-calculated act”. Zimbabwe.
law and language.
It was the sentencing that raised eye-
brows. Yuchang was sentenced to pay a fine
The judge also doubted the plea that Yu-
chang did not understand English given his
history in Zimbabwe, where he had worked
This meant that US$32 000 cash was a
considerable amount of money to be found
on one person. At the time, the government
Independent.
of US$200. If he defaulted, he would have to
spend 30 days in prison. One might say the
for the ZDI and operated a bookshop.
“If these issues had been ventilated, it is
and monetary authorities were making a
lot of noise about the so-called externalisa- Comments should be short and concise.
Send letters to: [email protected]
sentence was lenient given its dispropor- doubtful that a finding of special circum- tion of foreign currency. What Yuchang had
tionate character with the amount at stake: stances would have been arrived at [by the done was more than an abomination. And
US$32 000. And this is where the eyebrows magistrate],” the judge said. yet, he got off very lightly, a little more than

WhatsApp: 0772 929 196
went even higher. Still, despite these findings and expres- a slap on the wrist.
The magistrate ordered that the sions of incredulity, the judge concluded It is four years since this matter was con-
US$32 000 which had been confiscated by that the magistrate’s decision did not con- cluded. Yuchang is probably back home in
the law enforcement authorities would be
returned to Yuchang. While he had a legal
bill to his lawyer, one must wonder whether
stitute a gross irregularity warranting a
review.
“Notwithstanding the above observa-
China. He must have heaved a sigh of relief
after his lucky escape. But was it the doing
of Lady Fortuna alone? Or was it the hand
You can also comment on our website:
his freedom was as cheap as the judgment
suggested.
tions”, the judge said, “it is doubtful that the
decision of the court might be characterised
of humankind?
The justice system in Zimbabwe can be http://www.theindependent.co.zw and our
Facebook and Twitter pages Zimbabwe
Interestingly, the prosecution did not as amounting to gross irregularity warrant- inept, but it is hard to believe that the inept-
seem concerned by the dubious nature of ing review as opposed to a misdirection itude, in this case, was merely by accident.
the sentence. It was the magistrate who meriting appeal by the prosecution”. The prosecution’s lack of appetite in the
sensed that he had made an error. He sub-
mitted the case for review at the High Court,
where the matter was handled by Justice Jo-
Therefore, for the judge, there was no gross
irregularity. The irony is that the magistrate
who had passed the ridiculously lenient
face of such gross errors makes one won-
der what might have happened behind the
scenes. But there is another reason: there
Independent.
seph Musakwa. sentence had effectively reported himself is currently before the magistrates’ court
 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 11

COLUMN

I
NFORMATION secretary Nick
Mnagwana was gloating on
Twitter this week over the report
Chamisa in WhatsApp ban shocker, (The
Nick’s case of the kettle by being too personal. He spews
his bitterness almost on a daily ba-
sis accusing the ruling party and its
leaders of crimes he himself was a
Herald, December 9, 2020). The
report said the MDC-Alliance led
by Nelson Chamisa had barred its
members from discussing party
calling the pot pitch black part to or which he was involved
in by omission and commission.
Gukurahundi is one of his fa-
vourite themes in his endless
matters on social media platforms. struggle to pull down Mnangagwa.
In the grossly one-sided article, the police threat to arrest people nalise his opponents and has used In this struggle he seems to want to
analysts were quoted denouncing for expressing their feelings not that criminalisation to cover up his absolve Robert Mugabe, who was
the move communicated to the worth denouncing means he is a and his family's corruption as cap- Prime Minister and commander-
MDC-A rank and file by party sec- hypocrite. tured in the ‘Zaks Dossier’! in-chief of the armed forces. The
retary-general Charlton Hwende “The facts and the implica- 5 Brigade, which supposedly un-
in a memo. Captured police tions of the WhatsApp chats be- dertook the atrocities, reported to

M
“Political analysts who spoke EANWHILE, the ZRP tween Mohamed Zakariya Patel him personally but Jonso wants
to The Herald described the deci- should be told point blank and Ishmaiel Moosa Lunat speak the world to believe otherwise
sion by Mr Chamisa to muzzle free they have no business in- for themselves; exposing seri- and point the finger solely at
expression and debate in the trou- terfering with people’s freedoms ous crimes. The people must hold Mnangagwa.
bled MDC-A as a reflection of the by threatening to arrest them for Mnangagwa and his wife Auxil-
party leader’s aversion to freedom expressing themselves. Politi- lia to account, without fear or fa- More tweets

I
of speech and expression, tenets cians and government officials are vour. State House is now a looting N another tweet this week, he
the party claims to uphold but had not super humans and are always haven!” said a new documentary The
since discarded.”
On his part, Mangawana went
open to public scrutiny. It is not
the role of the ZRP to police what
Everyone knows Moyo has a
long-standing feud with the First MUCKRAKER Gukurahundi Effect: A Documentary
on the Impact of the Gukurahundi Mas-
on Twitter and wrote a list of things people say to their leaders. Family; after all he is in exile due sacres in Zimbabwe Today, would be
he said the MDC-A move violated: Most importantly this police ac- to their ascendancy to power. As Twitter: @MuckrakerZim released soon. The documentary
“They don’t believe in the free- tion raises eyebrows on the sin- an interested part therefore his would “mark 33 years of the failed
dom of expression; not in the rule cerity of government to imple- work cannot be taken hook, line ‘Unity Accord’ between Zanu
of law; not in allowing the winner ment media reforms. Many in the and sinker. Should Moyo be be-
“The facts and the and Zapu signed on 22 December
of elections to govern peaceful- media fraternity and in the legal lieved? The answer is simple: only implications of the 1987”. He describes it as a “criti-
ly. They are just NOT democrats. field familiar with media reform the Zimbabwe Anti-Corruption cally engaging documentary on
Simple.” have always expressed their doubt Commission (Zacc) can go to the
WhatsApp chats between how Zimbabwe has become a full
A few hundred metres from at the government’s sincerity in bottom of this. Mohamed Zakariya Patel blown Gukurahundi State”.
Nick’s office at the police head- that regard. Why Zacc? Because it has a The teaser is accompanied by a
quarters, PGHQ, had also been point to prove to the nation and the
and Ishmaiel Moosa poster of five people led by Mnan-
busy on Twitter writing: “The ZRP Jonso’s mortal combat world at large; and the point is that Lunat speak for gagwa; the other people in it are

E
warns individuals and groups XILED Professor Jonathan it is not a captured institution. Re- four generals who include Con-
from committing crime through Moyo has been busy burn- cently aspersions have been cast at
themselves; exposing stantino Chiwenga, Valerio Siban-
cyber bullying of government of- ing the midnight candle. This it regarding the deputy Minister of serious crimes. The people da and the late Perrance Shiri.
ficials who will be performing week he ran a long Twitter thread Health and Child Care, John Man- Criticism was quick. One
their constitutional and lawful ob- that purportedly exposed with gwiro, who stands accused of in-
must hold Mnangagwa Lashias Ncube wrote: “A poster
ligations in terms of service deliv- raw evidence the first family, that fluencing NatPharm to give a US$6 and his wife Auxillia to of Gukurahundi architects sans
ery to Zimbabweans.” is, President ED Mnangagwa and million tender to a company he Mugabe, the chief architect,
A second tweet said: “The Po- his wife Auxillia as the barons and has an interest in. it merged Zacc
account, without fear or stretches credibility. Nay, it’s re-
lice is aware that a certain group beneficiaries of money laundering has not acted as quickly as it did in favour. State House is visionist and seeks to absolve
of suspects who know that their and gold smuggling by one Mo- similar cases particularly the one Mugabe. It’s rubbish.”
arrest is imminent is fingered hamed Zakariya Patel. He said the involving former Health minister
now a looting haven!” Tendai Matengambishi con-
and issuing threats and harass- evidence covered the period from Obadiah Moyo who was quickly curred: “Thank you Lashias, I
ing some officials @tmuguti @ May 24, 2018 to January 14, 2019! arrested, brought before the courts can it let such serious allegations think @ProfJNMoyo personally
nickmangwana.” In the 21-frame thread, Moyo and relieved of his duties. It turned against the head of state just go owes Mugabe not in monetary
The fact that @nickmangwana concludes: “What emerges is that out Mangwiro could be getting uninvestigated? What would Zim- terms, but in ways he can’t go
was tagged in the tweets means a Mnangagwa’s so-called anti-cor- protection from someone power- babweans, let alone the world, public about, that’s blinded his
great deal. Reports later said the ruption campaign is fake. Mnan- ful, believed to be none other than think about the corruption inves- judgment, sad for a man who lost
police were reacting to the bul- gagwa has weaponised corrup- one of the VPs. tigation body’s usefulness? his own dad to Mugabe deployed
lying of Mangwana himself and tion, not to fight it, but to crimi- Zacc now has a lot on its plate: But Jonso compromises himself soldiers.”
others such as Provincial Devel-
opment Co-ordinator for Harare
Metropolitian Tafadzwa Muguti SHORT AND SWEET ...
on social media particularly on
Twitter.
Mangwana, as far as is known,
did not react to the police tweet.
To be or not to be vaccinated is the question
That presents problems: What

A
Hwende did with his memo to his FTER an 81-year-old named William it. It will be a precaution.” Shakespeare received his shot after
party faithful is exactly what the Shakespeare became the second per- “Is this a needle which I see before me?” one 90-year-old grandmother Margaret Keenan,
police have done to Zimbabweans son in the West to receive the Pfizer- Twitter user wrote, recalling the words spo- who said she felt “privileged” to be the first
who feel they should talk directly BioNTech coronavirus vaccine in Britain out- ken by Macbeth — or as some joked, Vacbeth person in the West to be vaccinated against
through social media to politicians side clinical trials on Tuesday, social media — in one of Shakespeare’s bloodiest tragedies. the coronavirus. The virus has ravaged Britain,
and public officials. Mangwana erupted with joy, puns and many quotes from British tabloids also pounced on the fact that plunging the country into two lockdowns and
should have come out defend- the great British playwright, writes Washington the Shakespeare inoculated on Tuesday, who claiming at least 61 000 lives.
ing all those people who have had Post’s Jennifer Hassan. lives in Warwickshire in England, shares not Both Shakespeare and Keenan found in-
the guts to speak truth to power “They really are prioritising the elderly: this just the same name as the poet but also a home stant fame Tuesday as footage of them receiv-
through cyberspace. That he did guy is 456,” wrote one user, while the term county. The playwright is also referred to as ing the vaccine was widely watched at home
not show he himself does not be- Two Gentlemen of Corona, a play on The Two Gen- the “Bard of Avon,” with bard being a syno- and abroad.
lieve in any of the things that he tlemen of Verona, swiftly became a top trend in nym for “poet,” and Stratford-upon-Avon be- “All’s well that ends well,” read one tweet.
accused the MDC-A of not believ- Britain. Others quipped that the first batch of ing his birthplace in 1564. “A plague on neither of their houses,” read
ing in. In other words, he and the inoculations, part of the first mass coronavirus “I’m surprised they let William Shakespeare another.
outfit he speaks for “are just NOT immunisation campaign in the West, marked have the vaccine. I thought he was Bard,” For many in Britain, the day marked a his-
Democrats. Simple”. the “Taming of the Flu”. read one tweet, while another user called for toric and emotional step in the country’s —
Mangwana should be at the The man, also known as Bill, told “Good “Shakespeare puns to be bard.” and the world’s — fight against the pandemic,
forefront of defending freedom of Morning Britain” that the moment was While many on social media celebrated the which has infected more than 67 million peo-
expression; that is what his min- “groundbreaking,” adding: “It could make a vaccine rollout, some users claimed the reac- ple globally since the first outbreak was re-
istry purports to do through push- difference to our lives from now on, couldn’t tion was “much ado about nothing”. ported in Wuhan, China, late last year.
ing for media reform. That he finds

www.thezimbabweindependent.co.zw
12 Zimbabwe independent december 11 to 17, 2020

IN-DEPTH INTERVIEW

Challenges an opportunity for

THE Zimbabwean economy has been
going through a number of challenges
affecting various spheres of the

acquisitions — Ruparanganda
industry including competition. This
week our senior business reporter
Melody Chikono (MC) interviewed
Competition and Tariff Commission
director Ellen Ruparanganda (ER) on
various issues around competition that have led you not to approve some management choose to conduct big in-
mergers and acquisitions. Below are deals over the years? vestments when the economy is strong.
the excerpts of the interview: ER: The commission, in accordance However, it is also important to note
with the provisions in the Competition Act that even when the economy is weak, ac-
MC: What can you say about the state of [ Chapter 14:28], disapproves the merger quirers see the potential of higher returns,
competition of Zimbabwean companies in transactions that have the effect of sub- as they target failing firms having lower
relation to economic challenges and the stantially lessening competition and or valuations.
way they conduct business? creation of monopoly situations that are Mergers and acquisitions in Zimbabwe
ER: Promoting and maintaining compe- contrary to public interest, which sub- tend to be present in all economic cycles
tition in all sectors of the economy of Zim- stantially lessen competition and create a and tend to be affected more with what’s
babwe is at the heart of the Competition monopoly. happening in a specific industry or sector
and Tariff Commission’s mission. Howev- In such instances, such deals lead to a at a particular time, whether commodi-
er, understanding the state of competition highly concentrated market post-merg- ties in that sector are in demand. There are
of Zimbabwean companies in relation to er, as the merged entities acquire market also instances where acquiring parties tar-
economic challenges is limited. power detrimental to both competitors get export oriented companies which may
While the commission collects valuable and customers. highlight the company’s desire to grow
information on competition, in particular MC: What can you say about the state foreign cash inflows.
markets through merger examinations, of corporate governance in some of these MC: The country has been going through
restrictive business practices investiga- deals? a number of challenges. How has it affect-
tions and market assessments, there is ER: Given that some of the deals handled ed operations of companies and their bids
no agreed way to measure and monitor involve firms listed on the stock exchange to merge or acquire some entities?
the state of competition across the whole this promotes good corporate governance, ER: The challenges that companies are
economy. as companies have to comply with certain facing affect firms’ production levels, as
However, it suffices to note that the standards. they will be operating at low capacity
Study of the Monopolies and Competition Policy in However, in some of the mergers, there levels. In addition to that, low incomes
Zimbabwe in 1992, which culminated in the are instances of interlocking directorship among the general citizenry affect the
adoption of competition law in Zimbabwe — a type of multi-firm conduct, which, demand for firms’ products and services.
established that the manufacturing sector though, not anti-competitive in itself, It is vital to note that the challenges have
was highly concentrated, with half of the gives rise to the potential for collusion or encouraged some big companies to pursue
over 7 000 products in the economy then, coordination through exchange of com- their growth strategies through acquiring
being produced by one producer, and ap- petitively sensitive information through struggling firms.
proximately 80% of all industrial produc- the common director. Common directors Competition and Tariff Commission director The challenges also present an opportu-
tion being produced by only three firms or sitting on high levels of the ownership Ellen Ruparanganda nity for foreign firms to acquire cheap as-
less. chain have a possibility of coordinative ef- sets in Zimbabwe through mergers and ac-
While there are limitations in access- fect over a vast number of markets. rencies and how it affects mergers and quisitions. Recently, the commission has
ing data to assess the current status, it can MC: How has the change in curren- acquisitions in Zimbabwe. Change in cur- also seen some local companies acquiring
be argued that there has not been much cies affected mergers and acquisitions in rencies is linked to the state of the macro- export-oriented businesses, which can be
significant improvement in this position, Zimbabwe? economic environment. viewed as a strategy to boast foreign cur-
given that the economy has undergone a ER: There is limited evidence to really An economic upturn is viewed to boost rency inflows and tape into the huge ex-
period of deindustrialisation and a num- ascertain the link between change in cur- deal volumes, as boards and company port market.
ber of economic challenges, which saw
many firms exiting the market, with fewer Case Primary Acquiring Primary target firm Sector Decision
firms entering the market. Resultantly, No. Firm
economic challenges that the country has
faced also seem to have favoured large 1 Hail and Cotton Boost Africa Traders (Pvt) Ltd Agriculture, Forestry & Unconditional
companies. International Group Fishing Approval
MC: Last year you probed pricing car-
tels, raising fears over a possibility of some 2 Echotel International Dandemutande Investments (Pvt) Ltd Information & Unconditional
producers colluding to increase the cost Proprietary Limited Communication Technology approval
of goods and services under the disguise
of setting recommended price ranges. 2nd Quarter
What could be promoting these cartels in
Zimbabwe? 3 Mimosa Mining Southridge Limited Mining & Quarrying Unconditional
ER: Trade associations have various Company approval
benefits to their members, but the com-
mission has also realised that such asso- 4 Rendevere Yellowcob Enterprise Pvt Ltd Wholesale & Retail Trade Unconditional
Investment Pvt Ltd approval
ciations have become a fertile ground and
a conduit for sensitive information sharing 5 Padenga Holdings Dallaglio Investments (Pvt) Ltd Mining & Quarrying Unconditional
and price fixing arrangements in violation Limited approval
of competition law.
Economic theory postulates that the 6 Investors in Africa- Manica Boards And Doors (Pvt) Ltd Manufacturing Unconditional
main reason why firms engage into price Takura Ventures approval
fixing arrangements is to maximise their (Pvt) Ltd
profits.
MC: What was the outcome of the probe? 7 Myristica Ronquil Enterprises (Pvt) Ltd Mining and Quarrying Unconditional
ER: The commission has referred the Investments (Pvt) Ltd approval
cases to the Zimbabwe Republic Police for
it to initiate the prosecution process for 8 Mabentu Trade and Intertoll Zimbabwe Proprietary Ltd Construction Unconditional
engaging in collusive practices. Details of Consulting approval
the cases will be shared in due course. Proprietary Ltd
MC: May I have an update on the merg-
9 Ashram Investments Profeeds (Pvt) Limited and Produtrade Manufacturing Disapproved
ers and acquisitions that you approved
(Pvt) Limited (Pvt) Limited
and rejected in the year 2020?
ER: The commission approved 12 merg-
ers which were found not to lessen com- 3rd Quarter
petition and disapproved two mergers,
which were found to lessen competition 10 Annunaki Innscor Appliances Manufacturing t/a Manufacturing Disapproved
in the relevant markets. Investments (Pvt) Capri
MC: What has been the value of mergers Limited
and acquisitions that you approved in the
last two years and how have they brought 11 Giant Tree (Pvt) At The Ready Wholesalers (Pvt) Limited Retailing Unconditional
value to the economy? Limited Approval
ER: It is difficult to quantify the value
of mergers and acquisition since in many 12 Sub-Sahara Tourism Shearwater, Legends of Africa, Zambezi Arts, Entertainment and Unconditional
Investment Tourism Investment Recreation approval
instances the purchase consideration val-
ue does not reflect the actual value of the
company being acquired. 13 Investors in Africa – Caulicle Investments (Pvt) Ltd Manufacturing Unconditional
However, the commission carries out Takura Ventures Approval
impact assessments of its operations in the (Pvt) Ltd & Takura III
economy. The latest impact assessment on (Pvt) Ltd
mergers and acquisitions covering the pe-
riod 2009-2018, established that mergers 14 National Foods Gain Cash and Carry (Pvt) Ltd Wholesale and Retail Trade Approved with
were found to have recapitalised compa- Limited Conditions
nies, created new markets, resulted in job
creation and saved job losses, as potential-
ly failing firms were rescued. The Competition and Tariff Commission approved 12 mergers which were found not to lessen competition and disapproved two mergers, which were
MC: What have been the major issues found to lessen competition in the relevant markets.
 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 13

ANALYSIS

Nothing to cheer about

KUDZAI KUWAZA

THE reduction of annualised inflation from

659,40% in September to 471,25% in Octo-
ber should have been a cause for celebra-

even as inflation falls

tion, but very few are popping up the cham-
pagne as it has not translated to improved
livelihoods.
Shortly after the announcement by the
official statistical body Zimstat that infla-
tion had gone down, it revealed that the
total consumption poverty line (TCPL) for Bvumbe said there is a need for dialogue
a family of five had shot up to ZW$18 750 among stakeholders to find ways of en-
(US$229). For Matabeleland North, the suring sustainability and affordability for
TCPL increased even further to ZW$20 679 consumers.
(US$252). This has had an adverse impact on Former Employers’ Confederation of Zim-
the general public most who earn far below babwe executive director and labour market
these figures. analyst John Mufukare said the increases by
The situation has been made worse by state enterprises such as Zesa will fuel the
the increase of electricity tariffs which has increase in inflation.
had a domino effect on the prices of goods “The economy is like an ecosystem. lf
and services. The 50% increments in Octo- one part is disturbed, then the whole eco-
ber and November, has negated the reduced system is disrupted. The increases by state
inflation, which is as a result of recent gains parastatals will mean that everything in the
of the local currency against the greenback whole chain will go up and therefore in-
continuing to reflect on its strength. crease inflation,” Mufukare said.
The drop in inflation rate is largely due to Though there has been a drop in inflation
the foreign currency auction introduced in figures, it still remains very high and is the
June this year and held weekly by the Re- second largest in the world after Venezuela.
serve Bank of Zimbabwe. The auction has
helped stabilise the Zimbabwean dollar,
which now hovers around US$1:81,8. This
has also resulted in the increased avail-
ability of forex, which has slowed down the
rate on the parallel market, which is around
US$1:ZW$120.
The drop in the inflation rate is also due to
measures taken by the Treasury and central
bank to curb illicit activities on the parallel
forex market. However, the drop in inflation
is barely felt by the man on the street.
The stability and the reduced inflation re-
mains a mirage for most workers according
to the Zimbabwe Congress of Trade Unions
secretary-general Japhet Moyo.

FINAL DIVIDEND NOTICE

“The majority of workers cannot feel the
stability,” Moyo said. “Most of the work-
ers’ wages have not gone up in line with the
prices of goods. That is what is being experi- Notice is hereby given that the Board of Directors of Mashonaland Holdings
enced on the ground which is different from
what is being said by the government which Limited declared a final dividend of ZWL1.34 cents per share on 1,859,073,947
ordinary shares in issue, in respect of the year ended 30 September 2020.
is not factual.”
He said that retail outlets have brazenly
flouted Statutory Instrument 185 of 2020
which obliges them to display the prices of
goods in both local and foreign currency.
“Businesses have refused to display prices The dividend is payable to shareholders registered in the books of the company
of goods in both foreign currency and RTGS
and this is because they are using an ex- at the close of business on 8 January 2021. The last day to trade cum-dividend
is 5 January 2021 and the dividend ex-date is 6 January 2021.
change rate which is higher than the official
one. Government has done nothing about
it. It is probably because some ministers
are shareholders in those businesses. So the
workers are on their own. The consumers
are on their own. Businesses and govern- The dividend will be paid to shareholders on or about the 15th of January 2021.
ment are birds of the same feather,” he said.
With incomes ravaged by inflation, work-
ers have become restive as evidenced by the
strike by nurses and teachers this year. Shareholders are requested to submit their banking details to our Transfer
It is a situation that concerns the consum-
er watchdog, Consumer Council of Zimba- Secretaries, ZB Transfer Secretaries, First Floor, 21 Natal Road, Avondale, and
bwe (CCZ).
“I was buying a 5kg of chicken for P.O. Box 2540, Harare.
ZW$1 100 or US$11 (at parallel market rate
and US$13,44 at official rate), but now that

E-mail addresses: [email protected]

same 5kg of chicken is now going for more
than ZW$1 500 (US$15 at parallel market

[email protected]
rate and US$18,33 at official rate). This shows
an increase in the US dollar price,” CCZ na-

Telephone numbers: 0242 781361-4 / 08677002001

tional chairperson Philip Bvumbe said. “Re-
tail outlets were selling goods at the rate of
ZW$100:US$1 but they have reduced to the
auction rate of ZW$81,8:US$1. This means
the price of the goods in US terms goes up
showing the upsurge caused by the distor- Alternatively, shareholders may submit their banking details at ANY ZB BANK
tion. The market is not reacting quickly.
You would have expected the market would BRANCH.
have adjusted by now but they have not.”
Bvumbe notes that the distortions have
been aggravated by the informalisation of
business which stands at over 75%. This, he
said, has resulted in informalised shops sell-
By order of the Board
ing products at cheaper prices than the tra-
ditional retail outlets.
Honey & Blanckenberg
The CCZ chairperson said the increase in
prices has an adverse impact on the gen-
Represented by Batanai Peresuh
eral public with some sectors still earning a
minimum of ZW$5 000 (US$61), which is
Company Secretary
less than a third of the TCPL. Bvumbe said
the increase in electricity tariffs by Zesa has
increased misery for the consumer.
“The increase in Zesa tariffs was supposed
11 December 2020
to be piecemeal and when it was discussed
then, it made sense but now it is taking a
huge portion of the basket. We need a win-
win situation where we have electricity but
are not overcharged,” he said.
14 Zimbabwe independent DECEMBER 11 TO 17, 2020

OPINION

Revamping Zim’s success story II

Fay
Chung
EDUCATIONIST

ZIMBABWE was reasonably successful in

the first twenty years after Independence,
but looking back on this period, it is appar-
ent that Zimbabwe’s success was based on
improved social welfare, especially educa-
tion, health and a clean water supply, but
the economic aspects of development were
inadequately addressed.
As a result the spectacular achievements
of the 1980s and 1990s have been under-
mined because of the very limited eco-
nomic growth. This article examines these
successes and suggests recommendations,
which can revive these successes. It is part
of a fuller study that will focus on the sys-
tems and strategies which need to be ad-
dressed to improve the country as a whole.
A number of important achievements
marked the first two decades of Independ-
ence. These were supported by seven poli-
cies and the seven recommendations cov-
ered below.
Re-establish a stable currency
Great care should be taken to ensure that
the value of the currency is stable. Unstable
currency began with the 1998 War Veter-
ans Rebellion against the fraudulent award
of huge sums of money taken from the War
Veterans Pension Fund to the political elite.
To solve this problem Government began
printing money, bringing about hyperinfla-
tion. Hyperinflation has continued up until
now.
The fluctuating exchange rate caused by
the dominance of the street forex market
makes it difficult if not impossible for the
market to work efficiently as speculation
rather than investment dominates. Yet the
street market is useful both to citizens and
to the Government.
For citizens who receive diaspora money
or who are paid in USD, it is useful to ex-
change in the street market at a very much
higher exchange rate. It appears that the
Government was also utilising the street
market to exchange USD for Zimbabwean
dollars (Zimdollars) according to an influ-
ential Africa Confidential Report in October
2019.
The urgent action required by Govern-
ment and the Reserve Bank of Zimba- Government should assist in providing a clean water supply throughout the country and farming inputs .
bwe (RBZ) is to confine money expansion
whether by printing or by Treasury Bills Re-establish health care for all my did not expand. As a result bureaucrats bumper harvests.
(TBS) by at most 10% per annum of the Government, again through partnership are seriously underpaid. Also there was Construction of low cost housing
GDP, the lower the better in terms of con- with provincial and local governments, lack of in-service training, transport, ma- This ambitious and high quality programme
trolling the inflation rate. Accepting the and communities, established for the first terials and equipment. As a result many enabled tens of thousands of urban dwell-
World Bank estimate that Zimbabwe’s GDP time government and local government officers could not receive adequate training ers to construct houses. This programme
is US$17,5 billion, it would mean expand- clinics and hospitals in rural areas, which and supervision compared to the earlier needs to be revived by the State to enable
ing by US$1,75 billion a year. RBZ and Gov- had subsidised medicines for all. period. It is absolutely essential to improve those who wish to own housing and flats to
ernment restraint and action are critically Presently government and district clinics the bureaucracy. be able to do this.
fundamental without which it will remain and hospitals lack drugs and their equip- This applies both to the civil and security These achievements were substantial and
difficult to control the street market. ment has not been well maintained. It is services. It is also important to provide a measurable, and gave the Government a
In addition, it is essential that this in- important to make medicines available to system of voluntary options for State per- sound and popular reputation for being
creased money supply is spent on econom- the whole population: the fact that Zim- sonnel to opt to join other Job Creation an excellent government. These are the
ic investment rather than only on political babwe has more than six national pharma- programmes, including utilising the State’s traditional and well established roles of
criteria. ceutical companies offers a great opportu- enormous agricultural land holdings as an government.
Re-establish education for all nity for State and private enterprise part- incentive. Conclusion
Primary education for All was achieved nership to allow these companies to have Ensure fertiliser is affordable It is very important to strengthen the seven
within the first three years of Independ- increased capacities to produce generic The Grain Marketing Board (GMB) extend- policies and achievements cited above as
ence through a partnership between Gov- drugs, which can be partially subsidised for ed its services and loans to African farmers they provide the actual foundation of fu-
ernment; provincial Governments; district rural and high density clinics and hospitals. after Independence, including to peasant ture development, particularly economic
councils and municipalities; schools and Re-establish clean water supply farmers, by providing them with seeds and development. Economic development re-
communities. Enrolment trebled within Again through partnership it was possi- fertiliser, which would be paid for through quires stable social welfare and political
three years. ble for Government to assist in providing a their harvests. But in 1996 this facility was policies, such as those that were dominant
Government’s contribution was the policy clean water supply throughout the country. removed. Most Communal farmers did not in the first two decades of independence.
of “Free Primary Education”, although par- Clean water is an essential human right, have sufficient resources to purchase seeds Neglect of social welfare and the policies
ents were able to charge themselves rea- and the State can play an important role and fertilisers. They were also denied mar- that were initially established hinders the
sonable fees through the School Develop- in ensuring that every local authority can keting facilities that used to be provided by possibility of successful future develop-
ment Committees (SDCs) established after provide it cost effectively and efficiently. the GMB. At present the cost of fertilizer is ment, particularly socio-economic devel-
Independence. This wonderful partnership This requires not only subsidisation but also too expensive for all farmers, but particu- opment, which must have a stable and sat-
enabled the number of primary and sec- planning and close supervision. larly for the poor (70% of the population isfied local population.
ondary schools to flourish. Universal Pri- Re-establish bureaucratic efficiency is estimated to be poor by the Government
mary Education was established, and 65% The civil and security services doubled at itself). The poor can only rely on the presi- Chung was a secondary school teacher in the
of the relevant age group were at secondary Independence, to enable Government to dential gift of seed and fertiliser to enable townships (1963-1968); lecturer in in polytech-
school. serve Africans and African areas better, them to survive, but this has enabled peas- nics and university (1967-1975); teacher trainer in
But in the new millennium these admira- these were generally neglected before In- ant agriculture to deteriorate into only sur- the liberation struggle (1976-1979); civil servant
ble achievements have deteriorated. These dependence. Zimbabwe was recognised vival farming. (1980-1987); former Education minister (1988-
challenges are relatively simple and straight by the international community for its It is essential for the State to support 1993); UN civil servant (1994-2003). This opinion
forward to resolve, but requires both the bureaucratic efficiency. However, this ef- Zimbabwean fertiliser companies to pro- piece is coordinated by Lovemore Kadenge an
State and the electorate to insist on it. It is ficiency deteriorated as a result of the ex- duce fertiliser for all at affordable prices. Independent Consultant and past president of
not a high cost item, and the coalition be- pansion of the civil and security services A State subsidy of US$100 million such as the Zimbabwe Economics Society (ZES) Email
tween the State and communities will en- occurred due to political and security prob- was done by neighbours Malawi and Zam- – [email protected] and Mobile +263 772
sure that the success story is renewed. lems during these periods, but the econo- bia made fertiliser affordable and led to 382 852
 Zimbabwe independent december 11 to 17, 2020 15

OPINION

Tafara
Mtutu Zim’s inequality: The rich get
richer and the poor get poorer
Investment analyst

ACCORDING to the latest poverty report

by ZimStat and the World Bank, Zim-
babwe has become poorer over the last
three years.
Extreme poverty rose to 38% in 2019,
while general poverty went up eight
percentage points to 51%. To note is the
country’s latest Gini coefficient of 50,4%,
which is up from 44,7% in 2017. The Gini
coefficient is a measure of income or
wealth distribution in a country.
A Gini coefficient that is close to 0%
implies that there is perfect or equal dis-
tribution of wealth. The other end of the
spectrum — a Gini coefficient of 100%
—indicates gross inequality, where only
one person earns all the income.
Various developed countries have a
Gini coefficient ranging between 27% and
45%, while developing countries range
higher than that.
Southern African countries boast some
of the highest Gini coefficients in the
world.
South Africa has the highest level of in-
equality in the region and the world, at a
Gini coefficient of 65%.
Other countries in the region have Gini
coefficients of 59,1% (Namibia), 57,1%
(Zambia), 54,2% (Lesotho), 54% (Mo-
zambique), 53,3% (Botswana), and 51,5%
(Eswatini).
The unequal distribution of income in
these countries compromises the effi-
ciency of policies that use averages such
as gross domestic product (GDP) per
capita (GDP divided by population figure) Source: UN Human Development Report 2019
to map a way forward or to measure the
population’s well-being. relevant skills in addressing inequality, the lack of access to external capital. Zimbabwe currently uses a progressive
For example, country A and country B and paving way for a developed and equal Zimbabwe’s external debt stood at tax regime to redistribute wealth from the
could have the same GDP per capita of Zimbabwe. about US$8 billion at the end of last year rich to the poor, but the country is exten-
US$10, but if country A’s income is signif- Inequality in Zimbabwe has also been and 74% of this debt is in arrears. The in- sively porous given that it has evolved
icantly skewed towards the top percentile perpetuated by the lack of access to in- ternational lending community made it into the second largest shadow economy
of income earners relative to country B, ternational capital and a concentration of clear that it will not support Zimbabwe in the world after Bolivia.
the policy on income tax could be differ- remittances among the few wealthy indi- until it clears its arrears. FDI inflows into Further measures to support the pro-
ent between the two countries. Country viduals in the country. Zimbabwe by private equity investors ductive minds in the country with no ac-
A is better served by a progressive tax re- Zimbabwe’s remittances are largely have also waned, and 2020 was marked cess to capital, such as a SME stock ex-
gime compared to country B. skewed towards the wealthy few in the by international investor exodus through change and allocation efficiencies in the
A nation’s prospects also hinge on the country. Wealthy families have some fungible stocks on the Zimbabwe Stock distribution of arable land and other re-
distribution of income. Inequality in hu- members who are in the Diaspora. These Exchange and the interbank auction sources, remain ever critical in address-
man development is often a function of members subsequently afforded them- system. ing the inequality gap and dismal eco-
the inequality of income distribution. selves a better life and they regularly The decreased appetite of international nomic growth over the last two years.
Data from the United Nations Educa- send money back home. investors for Zimbabwean investments These issues, if not addressed, could re-
tional, Scientific and Cultural Organisa- Over time, the wealthy individuals in and the skewed distribution of the only sult in Zimbabwe’s current economic sit-
tion (Unesco) and the United Nations De- Zimbabwe perpetually and exclusively other significant source of internation- uation worsening after the African Con-
partment of Economic and Social Affairs take advantage of opportunities available al capital (remittances) mean that one tinental Free Trade Agreement (AfCFTA)
(UN Desa) shows that more children born because they have access to a stream of single eventuality emerges; the rich get becomes effective in 2021. The prospect of
in 2000 in very high human development international capital that the rest of the richer and the poor get poorer. opening our borders without the capacity
countries will move into higher education country cannot tap into. So strong are Diaspora remittances to export more than we import holds dis-
compared to children of the same age that The opportunities often entail massive that, while global FDI is expected to fall comforting implications for the country.
were born in low development countries. capital outlays that over 80% of Zimba- by 40% in 2020, Diaspora remittances
This can be linked to economic growth bweans cannot raise without external into Zimbabwe surged by 45% in the nine Mtutu is an investment analyst with Morgan &
through empirical evidence that shows support, and therein comes the issue of months of 2020. Co. He writes in his personal capacity
that a country’s economic growth is most
positively affected by investments in
post-secondary education compared to
similar investments in primary and sec-
ondary education.
This is largely because an economy’s
innovation and growth are driven by
strides in post-secondary institutions
such as universities.
Developed countries have made sig-
nificant investments in post-secondary
education and their institutions consis-
tently dominate top spots in global uni-
versity rankings.
Universities in developing countries,
on the other hand, are hardly in the top
100. The best university in southern Af-
rica (and on the continent) is the Univer-
sity of Cape Town in South Africa which
is ranked 220th by the QS World Univer-
sity Rankings.
Egypt’s American University of Cairo
also features on the rankings at 411, eight
positions above South Africa’s University
of Witswatersrand. The top spots, how-
ever, are dominated by institutions in de-
veloped countries that include the United
States, United Kingdom, Switzerland and
Singapore.
Zimbabwe’s top institution, the Uni-
versity of Zimbabwe, is ranked 1 451 by
the Centre for World University Rank-
ings. The inverse relationship between
post-secondary education development
and income inequality serves to cement
the importance of quality education and The year 2020 was marked by international investor exodus through fungible stocks on the Zimbabwe Stock Exchange.
16 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

MOTORING

Automakers dump diesel engines

Jeep Wrangler Hybrid

Andrew announced plans to ban new diesel and

petrol vehicles by 2040, as part of efforts
roading in a Wrangler under battery-only
momentum. He spoke of pairing EV si-
forward.
Mercedes Benz will not have diesel and
Muzamhindo to reduce pollution and carbon emissions.
Let us look at some of the manufactur-
lence with the pleasure of being in the
backcountry with the doors removed, the
petrol cars within the next 20 years. The
decision to drop internal combustion for
ANALYST ers that are ditching diesel. roof open, and the Wrangler crawling up good is part of the German car maker’s
The FCA Group will dump diesel-pow- a slick rock. To him, that would make the “Ambition2039” plans, which aim to
ered cars. They will be replaced by hybrid experience much closer to nature. Well, it transform the brand into a carbon-neu-
DIESEL cars will be no more in a few plug-in and electric vehicles. Included in does make sense if you look at it that way. tral company. The car maker will make
years time. They will become a memory, this plan are Alfa Romeo and its range of Mitsubishi will not be left behind. The the permanent switch to pure-electric
and will soon be in the same dustbin of sultry Italian cars. Fiat has been special- Japanese brand will join the crusade power.
history with cassette tapes, hard-line tel- ising in making small cars in which elec- against diesel, joining Suzuki, Toyota, Volkswagen paid more than US$15 bil-
ephones and Walkmans and fax machines tric and hybrid plug-ins are becoming a and Nissan in the list. The ban is enforced lion to settle lawsuits and regulatory fines
among others. trend. The Italian brand has announced particularly in the United Kingdom and over its falsification of emissions tests
Major manufacturers are turning their that it will halt making diesel-powered Germany, where Mitsubishi has already that were submitted to regulatory bod-
backs on this “dirty” fuel. As a consumer cars by 2022. stopped selling diesel-powered cars. ies like the U.S. Environmental Protection
it is important that you position yourself Jeep has massive plans for its models However, diesel-fed pickup trucks and Agency.
in anticipation of this process. The next 10 but diesel is not part of it. Plans are afoot light commercial vehicles are still being The Volkswagen debacle has pushed
years will see most European countries, to launch models that use only blend. sold for the time being. more manufacturers to shun diesel
push towards electric and ever-decreas- The end game will see the introduction Porsche has resolved to electrify the engines.
ing emissions tolerances. The future looks of electrified cars only from Jeep. There upcoming Taycan and Mission E Cross If you care about urban air quality,
dark for diesel. is a seven-seater Grand Cherokee on the Turismo, ultimately ditching diesel in the people with respiratory problems or chil-
The phrase “clean environment” used cards. Jeep also plans to launch 10 new process. The brand sees that the scandals dren's long-term health then it is time to
to be a buzz word. It is now reality. The models by 2022 all electrified from head brought about by dieselgate proved to move away from diesel engines. Diesel
world desires clean. And how do we to toe. tarnish the fuel type's popularity, and the cars produce higher levels of nitrogen ox-
achieve that without restricting our mo- Jeep means business. The most pow- marque is not having any of that. ides which are a significant contributor
bility? Diesel fuel has been a huge part of erful Jeep Wrangler variant is a hybrid. Nissan Leaf is the best-selling electric to pollution in cities and can cause res-
the automotive industry. Dubbed the 4xe (that is pronounced car in the world. With that, the Japa- piratory diseases. Even if the latest tech-
The performance this fuel type brings "four-by-E"), the Wrangler's latest pow- nese brand looks to bank on that prem- nologies are cleaner, they are not clean
to the table and its relative fuel econo- erplant joins the model's 285-hp 3.6-litre ise, ditching diesel in the process. It has enough, particularly if the cars are not
my made diesel a favourite among car- V-6, 270-hp turbocharged 2.0-litre four- reportedly announced that it will end well-maintained and run mainly on short
buyers, to the point that almost every cylinder, and 260-hp turbo-diesel 3.0-li- diesel engine development, with com- and cold local journeys.
brand has a diesel option in their vehicle tre V-6. mercial vehicles to use diesel power plant There is no going back on cleaner fuels.
line-up. Who would have thought Jeep was ever sourced from other brands. As Zimbabweans we need to start posi-
China, the world's biggest car market, going to go hybrid and still remain seg- Toyota will get rid of diesel engines tioning ourselves for these changes. Most
plans to ban the production and sale of ment leader performance wise? in its vehicle line-up. This is due to the of all we must start taking positions so
diesel and petrol cars and vans. China Manfred Chaniwa, the business de- fact that the demand for diesel-fed cars that when the winds of change blow, we
made 32 million cars last year, almost a velopment manager at Zimoco, the local is continually dwindling. With that, the can adjust our sails accordingly.
third of the global total. Jeep dealership voiced his excitement Japanese marque will proceed on making
Both the UK and France have already about the development. “Imagine off- petrol-powered hybrid models moving [email protected]
 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 17

COLUMN

World
View
GWYNNE DYER

“WE are putting a final end to the fossil

Salvation in a vat the problem because they still depend on
growing crops on the land and also be-
era,” Denmark’s Climate minister, Dan cause people are very conservative about
Jorgensen, said last week. What he meant diet.
was that the European Union’s biggest oil This is how to save the Amazon, where
and gas producer is officially getting out of the forest is being cut down to grow the
the petrochemical business after 80 years. soy that will feed the world’s cattle. In fact,
There is still more oil under the North this is how to take half the world’s crop-
Sea off Denmark’s west coast, but the gov- land out of production.
ernment has just cancelled its next sched- Rewild that land and we solve about six
uled auction of oil and gas licences. There problems at once. We even give ourselves a
will be no further exploration and no new chance of cutting emissions fast enough to
production platforms built. avoid driving global average temperature
It is not quite as big a deal as it sounds, above +2°C and unleashing hell on Earth.
because Europe’s three biggest oil and gas All we have to do then is to figure out
producers, Russia, Norway and the United what a billion or so farm families will do
Kingdom, are not members of the EU and for income instead. That is tomorrow’s
they are still in the business. But the latter Cultivated meat ... A burger joint that sells “cultured” chicken opened in Tel Aviv last week. problem.
two are now also discussing whether they
should leave some of their oil and gas in of the same meat. production alone account for almost 15% Dyer is a London-based independent journalist.
the ground forever, which is a step in the How fast! Think 10-15 years, It needs of greenhouse gas emissions. Vegetari- His new book is titled Growing Pains: The Future
right direction. to happen fast because meat and dairy anism and veganism alone will not solve of Democracy (and Work).
This is how progress is generally made
in the struggle to stop global heating: one
slow step at a time and maybe therefore
too little, too late. But last week saw some-
thing much more dramatic on what you
might call the Food and Climate front: the
first restaurant to serve artificial meat.
Next to burning fossil fuels, the biggest
cause of anthropogenic (human-caused)
greenhouse gas emissions is agriculture MARKETERS GOLF SOCIETY
— and more than half of all food-related
greenhouse gas emissions come from pro-
ducing meat. That is the hardest part of the
puzzle to solve, because people are very
attached to eating meat and there is no
good substitute. Until recently!
Now there is plenty. Near Tel Aviv last
Thursday a burger joint called The Chicken
opened its doors for the first time. It looks
pretty normal, except for a glass back wall
through which you can see people in lab
coats moving between big stainless steel
vats called bio-reactors. That’s where they
make the chicken.
It is “cultured” chicken: real live chicken
cells grown in a solution containing all the
necessary nutrients and doubling in vol-
ume every day. But no bacterial contami-
nation from animal waste, no hormones
and antibiotics to speed growth and slow

Designed by LIBKAZ
the spread of disease, no land used to grow
the chicken feed, no 130 million chickens
slaughtered every day.
SuperMeat, the parent company, is
sticking with ground meat for burgers for
now, but there is no technical reason why
it could not be chicken breast with the fa-
miliar texture and taste of real chickens.
And they are currently giving it away (to
invited guests only) rather than selling it,
because Israel’s regulatory authority has
not approved it for sale yet.
That will come soon, but they will prob-
ably have to go on giving it away for a while
because each burger patty costs around
US$35 to produce. But that is down from
US$300 000 for the first beef hamburger
patty in 2013, and Ido Savir, CEO of Super-
Meat, reckons that the cost of cultured or
“cultivated” meat (the terminology is still
evolving) will fall to parity with slaugh-
tered meat in six or seven years.
It is moving fast. Just the day before The
Chicken opened in Israel, an American
company called Eat Just got regulatory ap-
proval to sell its cultured “chicken bites”,
produced in a 1 200-litre bio-reactor, in a
restaurant in Singapore. And back in Israel,
Aleph Farms unveiled its first lab-grown
beef steaks last month. (They prefer the
term “bio-farmed”)
Aleph’s innovation is cultured beef that
actually comes with the shape and tex-
ture of traditional steak. (All the players
can pass the taste test, because they are all
working with real beef cells.) The process
is designed for large-scale production,
they have patented it six ways from Sun-
day and they will do a pilot launch at the
end of 2022.
This is going to happen. All the promis-
ing start-ups are attracting major invest-
ment from food giants like Cargill (Aleph’s
godfather).
We are at the start of a high-speed global
transition, at least for the mass market,
from born-fed-and-slaughtered beef,
pork and chicken to “cultivated” versions
18 Zimbabwe independent DecEMBER 11 to 17, 2020

COLUMN

Respect
Gwenzi Tight money supply and rationing
analyst
answer to Zim currency stability?
ZIMBABWE has been facing ram- the RBZ started releasing weekly
pant inflation since 2019 and cur- base money statistics. The statistics
rently has the second highest are showing sustainable growth in
inflation rate in the world after the component and this helps in
Venezuela. anchoring inflation expectations.
There have been different views Limits on mobile money transac-
on the main causes, with the gov- tion were instituted to curb exces-
ernment blaming human behav- sive parallel market liquidity. Also,
iour (speculative activities) as well an exchange rate management
as mobile money providers mainly system biased towards market
Ecocash. On the other hand, in- forces in the form of Dutch auction
dependent institutions like Equity was introduced.
Axis have attributed it to the gov- The auction was launched on
ernment itself as the chief reason June 23, and saw ZWL$ falling by
for skyrocketing prices. A Nobel 56% to settle at 57,36 to the dol-
laureate Milton Friedman, who is lar from the fixed peg of 25 to the
believed to be the father of mon- US$. In the subsequent 10 weeks,
etary economics once said, “Infla- the unit fell by 31% followed by
tion is always and everywhere a gains of 2,3% for seven weeks be-
monetary phenomenon.” What he fore falling again 0,6% for another
meant was that inflation is and can seven weeks. On the auction trade
be produced only by a more rapid of Dec 8, ZWL$ marginally gained
increase in the quantity of money 0,02% of its value. In the same pe-
than output. riod, statistics show that reserve
A review of history shows that money grew by 5,9% in Q3 (after
the 2007/8 hyperinflation was reserve targeting) from a growth
caused by massive money sup- rate of 28,7% seen in the previous
ply in the economy. Government, quarter (before reserve target-
through the Reserve Bank of Zim- ing). Monetary Policy Commit-
babwe engaged in massive quasi- tee (MPC) targets a quarterly base
fiscal activities where expenditure money growth not exceeding 15%.
activities, which should have been Reserve money targeting and
done through the national budget market based exchange rate is
(fiscal side) ended up being fi- helping ZWL$ to find its true mar-
nanced through money printing. ket value emanating in price sta-
In the end, we ended up with bility. Since August, annual infla-
too much local money circulating tion is trending downwards while
in the economy chasing few goods monthly rates are hovering below
causing a run on the exchange rate 10%. Latest statistics show that an-
thereby affecting prices. Typically, nual inflation for the month of No-
money in circulation should always vember was 401,66% down from
correspond to activity in the real 471,25%.
sector. After the local unit became Nonetheless, it is my view that
valueless and inflation reached a the exchange rate stability is still in
million percent, the economy was fragile state. It is productivity in the
officially dollarised in February real sector that determines long-
2009. During the period of this re- term value of a currency.
form, we witnessed steady prices This economy is plagued by
and at some point authorities were strong structural rigidities like
struggling with deflation. rampant corruption, pricing dis-
Price stability emanated from tortions and weak institutions
the fact that the government was among other variables. Also, the
not able to print the US$ as was the political environment is unstable
case with Zimdollar. It was forced as it is marred by disputes between
to spend within its means through ruling party and main opposition.
running sustainable deficits. All this stifles investment, par-
The situation started to sum- ticularly foreign investment.
mersault again when government The stability in prices however,
started to spend unsustainably be- is yet to be felt in the pockets as
tween 2015 and 2018. To finance the gap between salaries and cost
these huge deficits, government of living was already too wide. The
issued treasury bills (TBs) as if least paid civil servant is earning
there were cookies taking the US ZW$14 500 (US$177) while the
dollar from the private sector. The cost of living for an average family
irony of the borrowing was that it of five in November was up 3,2%
was mainly for recurrent expen- from October level of ZW$18 750
ditures instead of capital invest- (US$229). This shows that we are
ments which generate future in- a long way to go until millions are
come. This is the time when the lifted out of poverty.
country unofficially introduced a All being said, it is my view that
local currency in the bond form since the turn of the second half
of rising RTGS balances as well as of 2020, the economy is gradually
bond coins and notes. moving in the right direction.
Towards the end of 2018, aus- The reigning in on money supply
terity measures were introduced while targeting real sector through
and everything else got loose. In raw material and machinery pri-
economics, austerity is a set of oritisation on the auction market is
economic policies that aim to re- commendable.
duce government budget deficits Many companies have wit-
through spending cuts, tax in- nessed a better Q3 thanks to price
creases, or a combination of both. and exchange rate stability. If this
Faced with a limited fiscal space, is sustained, 2021 will likely be the
we witnessed the introduction Price stability emanated from the fact that the government was not able to print the US$ as was the case with best year for manufacturing sector
of electronic tax now famously Zimdollar. since the return of the Zimdollar.
known as the 2% tax among other The economy is poised for a mild
factors. The country was battered omy directly at the discretion of cal currency which was officially much ZWL$ circulating. Zimba- recovery in 2021 on the assump-
by drought, a cyclone, electricity the central bank. This component introduced in February 2019 suf- bwe has suffered two consecutive tion of normal rainfall to support
and forex shortages among other also functions more as a medium fered its worst performance. Be- recessions of a magnitude of -10% agriculture, the mainstay of the
factors. These variables shrunk of exchange as opposed to broad tween February 2019 and Feb- though government puts it at -6% economy. Also, news of successful
revenue receipts and money crea- component which is more of store ruary 2020, the ZWL$ erased and -4,1% for 2019 and 2020 Covid-19 vaccines will help pro-
tion became an option. of value. By July 2020, year-on- 86% of its value on the interbank respectively. pel commodity price recovery, the
Between December 2018 and year growth of base money was while losing 91,3% on the paral- Whatever the case maybe, the major forex revenue generator for
December 2019, broad money up at 329,71% and annual infla- lel market. This shows that it is fact is that the country is in a stag- this economy.
went up by 250,2% and base mon- tion stood at 837,5% in the same money supply growth which is flation — a period of high infla-
ey was up 169,94%. Base money month, the highest recorded since the main cause of exchange rate tion combined with a fall in GDP. Gwenzi is a financial analyst and MD of
which is also known as high pow- 2008. run. I agree that mobile money Cognisant of this, government Equity Axis, a financial media firm of-
ered money is the most price sen- It is also interesting to note that transactions were helping paral- changed its policy thrust to ad- fering business intelligence, economic
sitive component of money supply during this period of excessive lel market liquidity but it was just dress exchange rate instability. and equity research. — respect@eq-
because it is injected in an econ- money supply growth, the lo- a product of an economy with too In the second half of the year, uityaxis.net.
 Zimbabwe independent DECEMBER 11 to 17, 2020 19

SPORTS NEWS

Sports
Panorama
mike madodA

THE year 2020 has been a diffi-

For the fans is the fans’ passion and patronage
Steve Smith
revved up for
India Tests
cult one for sport, but more so for of the beautiful game that fuels STEVE Smith admitted Thursday he
the fans. The Covid-19 pandemic the commercial machine we see was pumped to play his first Test in
saw the juggernaut that is world today. Without the feet through almost a year, revealing how hard
sport lurching in unchartered the turnstiles and eyes on screens, it was to miss India's last series in
waters, buffeted by the waves of it would not be the multi-billion- Australia when he was banned for
uncertainty. dollar industry it has evolved into. ball-tampering.
Sports teams, leagues and even Fans are the reason why brands The two sides meet in a day-
the celebrated and well-heeled partner with sport — they are the night Test in Adelaide from
sports merchandise companies, most important ingredient in the December 17, the first of four
Nike and Adidas being the most marketing mix. In mature mar- clashes over a blockbuster
prominent, could do little to stem kets, an effort has been made to summer.
the tide of financial losses that understand who fans are, where It will be Smith's first red-ball
came their way. they are and what motivates them international since the final Test
TV companies too were not — all critical factors for any brand against New Zealand at the Sydney
spared as the whistle was blown that would seek to wade into the Cricket Ground in January before
on action and advertising rev- waters of sports sponsorship. Al- coronavirus caused havoc.
enue. With the world undergoing most half of the world’s popula- "Very excited, I love Test cricket,
a lockdown at the end of March, tion follows football and the digital it's my favourite form of the game
sport was deprived of its single revolution has added significantly no doubt. It challenges you in so
most important asset — the fan. Sports teams, leagues and even the celebrated and well-heeled sports to these numbers as content is many different ways," Smith, bub-
While the pandemic by in large merchandise companies, Nike and Adidas being the most prominent. readily available on a number of bling with enthusiasm, said on a
prevented the direct participa- platforms. This increased con- Zoom call from Adelaide.
tion of fans in almost every sport- the athletes, to how fans could be this reciprocal relationship is sumption is what is driving up "So excited to get back out and
ing market, solutions were found reintegrated into the matrix. And lacking in Africa. Save for, per- corporate expenditure as brands play some long-form cricket. It's
to ensure that they remained a sure enough, we are beginning to haps South Africa whose sports jostle for exposure. Zimbabwe and been close to a year since our last
central part of the story. Tradi- see a splattering of fans return- industry is closer in form and Africa must not be left behind. game. Can't wait — all the boys
tional and digital platforms were ing, not only to add colour and function to Europe than the rest of Remove the fans and what you are really keen to get out there and
exploited in this regard and the atmosphere to sporting contests, the continent, fans are seen as ex- are left with is a purely sporting play as well."
wheels of sport were kept turn- but more importantly, provide the pendable, unimportant and often contest and no theatre. Sport is Making it extra special for Smith
ing, slowly, but turning neverthe- income that drives the industry. an unwelcome distraction. now about entertainment more is that he missed India's historic
less. The importance of fans was And the fans themselves have In Zimbabwe, their importance than it is just about physical first Test series win in Australia in
not lost upon the major football missed the therapeutic benefits has often been restricted to the prowess and your ability to en- 2018-19 when he was serving his
leagues of Europe, the NBA, inter- that come with their weekly pil- value of the ticket they buy on tertain, retain attention and grow 12-month suspension.
national cricket and super rugby, grimages to their favourite cathe- matchday, with little or no con- audiences is what will sustain and "I watched bits and pieces," he
who all found new and innovative drals of action. Being a sports fan sideration given to them in other grow your team. said of the tour. "It was difficult sit-
ways to keep their followers en- is a “very psychologically healthy facets of the industry. We have re- More respect and appreciation ting on the sidelines and not being
gaged at a time when direct con- activity,” writes Professor Daniel duced fans to nothing but a num- need to be shown to the fans who able to go out there and make a
tact was prohibited by most gov- Wann, of Murray State University ber, prisoners to the whims and are in essence, the fuel for the difference.
ernments around the world. whose research program focuses caprices of sports administrators sports industry. "That was the toughest thing
After months of cancellations on the psychology of sport fans. and business executives — the hey are the central cog to the for me, knowing that I probably
due to the virus, action returned, Fandom connects us to like- Nelson Mandela’s of sport’s Rob- commercial engine that is driving could make a difference if I was out
albeit under very different condi- minded people, which satisfies ben Island. The reality is, the fans it forward. Instead of being viewed there. So that was hard. But it's an
tions. Football leagues in England, our human need for belonging, he are asked to pay the bill but are not as expendable, administrators and exciting series coming up."
Germany, Spain and Italy re- says. These relationships are sig- allowed to sit at the table. brands must embrace the fan. As England’s one-day tour against
sumed playing with crowd noise nificant: People who identify as It is high time the sports indus- we wrap up what has largely been South Africa was plunged into fresh
piped into empty stadiums, but sports fans have higher levels of try on the continent realises that a forgettable year for sports fans, doubt after Sunday’s rescheduled
even that was not enough as they self-esteem, lower levels of lone- the key to unlocking value lies especially in Zimbabwe, may 2021 series opener was abandoned
soon realised that the fan could liness and tend to be more satis- with the fans. If sport, especially present us the opportunity to do following a coronavirus scare at
not be replaced — not even by fied with their lives compared to football, on the continent is to better by the fans and honour the team hotel. The first ODI was
the best technology. Debate and those who are not interested in achieve the desired growth, stake- their importance in sport. initially postponed on Friday after
discussion soon evolved from sport. holders need to recognise that the Happy holidays everybody! a member of the Proteas squad
health and safety protocols for But sadly, an appreciation of biggest stake belongs to the fan. It Play it safe nd keep it clean. tested positive, but the boards
agreed to resume the series after

Pogba set for Juventus return

the Proteas returned a full round of
negatives on ...
Smith skippered Australia until
he was banned over the brazen at-
tempt under his watch to alter the
ball with sandpaper in Cape Town.
Paul Pogba is heading for the raised questions about Solskjaer's Part of his punishment included
Manchester United exit following decision to start him on the bench. a further year-long exile from any
heart-to-heart talks with man- But controversial comments from leadership role, which expired in
ager Ole Gunnar Solskjaer over Pogba's agent Mino Raiola on March.
his substitute role in the crushing Monday, in which he insisted the He has yet to captain the side
defeat to Red Bull Leipzig. 27-year-old must quit Old Traf- again but revealed Thursday "dis-
Juventus, the club Pogba left ford, are a strong indicator that he cussions" had taken place, with
to rejoin United in 2016, are would be open to leaving. the issue thrust back into the
emerging as a genuine option Juventus are interested in taking spotlight at the weekend when
for the World Cup winner when Pogba back to Turin, but United's Aaron Finch was ruled out of the
the transfer window opens next valuation will determine whether second Twenty20 against India.
month, amid growing uncertainty a deal is possible, particularly in Speculation was rampant that
over his future at Old Trafford. light of the financial impact of the Smith would stand in as skipper,
Pogba was left out of the start- coronavirus pandemic. but Matthew Wade instead got the
ing XI who were eliminated from United effectively have two nod.
the Champions League by a 3-2 transfer windows to prevent their "For me, I just said I am happy
defeat at Leipzig on Tuesday former youth player leaving for to do whatever is best for the team
night, and it is understood player nothing when his contract expires and that's the same going forward.
and manager have spoken con- in 2022, meaning a January exit is I do whatever I can for the team,"
structively about the decision to not ruled out. The club are keen he said.
put the midfielder on the bench to recoup most of the £89million Both teams face selection
for what was United's biggest they paid to buy Pogba back from problems ahead of Adelaide.
match of the season. Juventus, particularly given his India's opening batsman Rohit
Solskjaer said Mino Raiola commercial value. With his con- Sharma and pace bowler Ishant
needs to realise football is a team tract running down, the prospect Sharma are both injured.
sport after he said Paul Pogba of losing Pogba for nothing for a Australia will be missing open-
wants to leave. second time is a scenario the club er David Warner after he injured
The France international main- want to avoid. Meanwhile, United a groin in the recent white-ball
tains a professional relationship captain Harry Maguire says the series but young prospect Will Pu-
with Solskjaer and the conversa- players must recover quickly covski, who was heavily tipped to
tion is said to have been honest from their Champions League replace him, suffered a concussion
and forthright. Solskjaer's team setback and focus on beating ri- against India A this week.
selection did not have the desired vals Manchester City on Saturday. Various scenarios have been
effect as United slumped to a 3-0 He said: 'All the boys are so touted should Pucovski fail to
deficit inside 70 minutes. Pogba's impact raised questions about Solskjaer's decision to start him on disappointed but I've got to pick recover, from elevating Marnus
But Pogba, who was brought on the bench. them up and the gaffer has got to Labuschagne or Wade to open, to
in the 61st minute, had a major pick them up, as there's no better recalling Marcus Harris or even Us-
hand in the United's failed come- side winning a penalty that Bruno ing the team's second to set-up feeling than winning the derby at man Khawaja. — PA/AFP.
back — playing a key role in his Fernandes converted before scor- a frantic finish. Pogba's impact Old Trafford.' — MailOnline.
 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 X1

IndependentXtra
ZIMBABWE INDEPENDENT

Master KG beats Minaj Black Panther actress

criticised for sharing
. . . on Jay-Z’s Tidal playlist
THERE is just no stopping the success train that Master
vaccine doubter’s video
KG is on. The musician continues to solidify his name in-
ternationally, this time by making it onto American rapper ACTRESS Letitia Wright has become ter the backlash, adding: “If you don’t
and business mogul, Jay-Z’s Tidal 2020 playlist. embroiled in controversy after shar- conform to popular opinions, but ask
While the Covid-19 pandemic has changed how we ing a video making unsubstantiated questions and think for yourself . . .
live, 2020 has been a phenomenal year for the Jerusale- claims about the safety of Covid-19 you get cancelled.”
ma hitmaker, who has been collecting win after win each Master vaccines. Her co-star in the Marvel Cin-
week. From reeling in a whopping 143 million streams on KG The Black Panther star posted a ematic Universe, Don Cheadle, also
Spotify this year, along with winning eight prestigious link to a video, whose host said peo- became involved after Twitter users
awards, it is no surprise Jay-Z and his team were left to ple taking the vaccines would have copied him in to her tweets.
do the right thing of adding Master KG to their fire 2020 to “hope it doesn’t make extra limbs The actor said he had watched
playlist. grow”. some of the video and described its
Clearly enjoying his latest win, Master KG took to Twit- After being criticised on Twitter, content as “hot garbage”, adding that
ter and said how “amazing” it was that his international she said she was not against vac- he would raise the issue with Wright
banger, Jerusalema, had made Jay-Z’s list. cines, but it was important to “ask directly.
Last month Master KG took home top honours’ to win questions”. Arayomi’s video remains on You-
the coveted Best African Act at the 2020 MTV EMAs. The BBC has contacted Wright’s Tube. The company recently pledged
In a virtually recorded acceptance speech, the now representatives for comment. to delete misleading claims about
globally renowned superstar Master KG gave thanks to all In the video, presenter Tomi Aray- coronavirus vaccines.
his fans who have helped make his smash hit Jerusalema omi explains he is a “big sceptic of Last month, the British Labour
one of the biggest songs on the planet. needles and vaccinations in general” party called for financial and criminal
“I would love to thank my sister Nomcebo, my team and has not decided whether to take penalties for social media firms that
Open Mic Productions, and everyone who has supported a Covid vaccine. While discussing his do not remove false scare stories
Master KG, thank you so much. doubts about their safety and ef- about vaccines.
“To all my fans all over the world, without you, this fectiveness, he also admits “I don’t The BBC’s disinformation reporter
would have not been possible,” he commented. understand vaccines medically”, and Marianna Spring explained: “Baseless
The South African superstar joins the ranks of previ- does not present medical evidence. conspiracy theories about a corona-
ous MTV EMAs Best African Act winners from Burna Boy, Wright’s initial post, which has virus vaccine have been spreading on
Davido and Tiwa Savage. — iol. been retweeted more than 3 000 social media for months — and the
times, featured a link to the video latest vaccine news rekindled these
along with the prayer hands emoji. pre-existing narratives online.
SOUTH AFRICAN musician Master KG continues She then became involved in “Within hours of news breaking
his global domination and beat Nicki Minaj, Jason the globe in the past couple of weeks for Master KG. heated exchanges with users, who about the Pfizer/BioNTech vaccine,
Derulo and Dua Lipa to bring home the Song of His hit track Jerusalema, which features the sen- accused her of spreading misinfor- comments and memes suggesting it
the Year Award at the annual NRJ Music Awards in sational vocalist Nomcebo Zikode, has catapulted mation. “It is not my intention to make will deliberately harm us were pop-
France. Master KG to become an instant household name anyone upset, nor am I saying don’t ping up in local Facebook groups,
The awards are presented by a French radio sta- across the globe. take it,” she wrote. “I’m just con- parent chats and on Instagram. This
tion to honour musicians across the globe. Taking Just last week, his fans were beside themselves cerned about what’s in it that’s all. kind of disinformation is worlds away
to Twitter, Master KG said he was in disbelief over the with joy when the hitmaker’s song landed on Jay Isn’t that fair to question?” from legitimate concerns that a vac-
artists he had beaten to scoop the coveted title. Z’s Tidal 2020 playlist. The United Kingdom’s medicines cine is safe and properly tested.”
“We won a big one in France last night, Best Inter- This came just after Master KG got the news regulator has approved the first vac- Wright was recently seen in one
national Song of the Year at the NRJ music awards. I that he had managed to reel in 143 million Spotify cine, made by Pfizer and BioNTech, of Oscar-winning director Steve Mc-
keep watching these nominees again and again be- streams, that came from 18,5 million listeners from saying the process had been robust Queen’s Small Axe films on BBC One.
cause I can’t believe it! Big thanks to everyone for 92 countries. with safety considerations para- Wright has previously starred in the
making this win possible,” an excited Master KG The Jerusalema YouTube video has more than 260 mount. Regulators around the world Avengers films Infinity War and End-
tweeted. million views and people worldwide have taken part are assessing the safety of that and game, and won the rising star prize
This award follows multiple wins from all over in the Jerusalema dance challenge. — TshisaLive. other vaccines. at the Bafta Film Awards last year. —
Wright stood by her comments af- BBC Online.

DStv’s Pick of the Week

Entertainment from sunrise to sunset this holiday season

YOU might want to stock up on some snacks because For those lazy holiday afternoons when you just
DStv is bringing the whole family to the couch this fes- want to enjoy having absolutely nothing to do, we
tive season. have got a line-up just for you, including The Candi-
Said MultiChoice Zimbabwe publicity and PR man- date on December 9, every weekday at 3.05pm on Fox
ager Liz Dziva: “No matter when you like to get in your (Channel 319); Jingle Belle on December 21 at 2.35pm
TV time, with a long line-up of entertainment for all on Lifetime (Channel 131); and Location, Location, Lo-
ages showing at all times of day, there won’t be a sin- cation (Season 23) on December 7-12 on The Home
gle dull moment for you this December.” Channel at 5pm (Channel 176), among others.
Here are some the best movies and shows coming When it’s past everyone else’s bedtime, reclaim
straight to your living room from when you wake up your throne on the sofa and tune in to these shows
right until your head hits the pillow. and movies: Isono (cast pictured), which starts on De-
Some great movies for the early birds looking for a cember 7 and airs Monday to Thursday at 9pm on BET
memorable way to start their day include Ben 10 vs The (Channel 129); A Christmas Surprise on December 12 at
Universe: The Movie on December 12 at 10.10am CAT, 9pm on M-Net (Channel 102). Letitia
Cartoon Network (Channel 301); and The River Wild on You can also take control of your viewing experience Wright
December 15 at 11.15am on TNT (Channel 137), to name and livestream all of these by downloading the MyDStv
a few. app!
X2 Zimbabwe independent Xtra DECEMBER 11 TO 17, 2020

BOOK REVIEW

Zvide — The Power of Loving You

Zivai Matondo

AT less than 100 pages, this book is an

extremely quick read. It is a short and
to-the-point read that simply helps the
reader to understand the power of lov-
ing oneself. It may seem as though the
content is cut back but the principles are
shared in a clear cut manner which ena-
bles a reader of any age be it a pre-teen,
teen or adult to kickstart their journey to
self-love.
Zvide — The Power of Loving You is all about
self-love and self-confidence.
Self-love as defined throughout the
book is all about having a high regard for
your well-being and happiness, taking
care of yourself and not sacrificing your
well-being to please others, not settling
for less than deserved.
This book takes you through every step
on the journey to loving self:
•
•
The root cause of not loving self
Recovering from the pain caused
•
•
Discovering yourself
Putting your real self out to the world
•
•
The role of your mindset on this journey
Learning to love yourself
•
•
Importance of being well groomed
Bringing out the best version of you
• Further benefits of self-love and self
confidence
The author begins with her personal
experience of feeling rejected in her teens
and how that affected her as she became
an adult. This helps the reader to connect
to the author and you want to know how
one can love self, having felt rejected.
Every chapter has a principle outlined
and explained with life examples that
every reader can relate to.
For the parent reading this book — you
learn how you can support your pre-
teen and instil the discipline of valuing
themselves.
For the pre-teen reading this book –
you read about how a seven-year-old girl
who had resigned to someone else tak-
ing first place in her class got to change
the script and became number one in her
class, a position she had believed was re-
served for the one boy every term.
For the teen reading this book – life is
too short to live it in the wrong skin, live
it in yours after all it fits you better than
the next person’s skin that you may want
to attempt to put on.
For the man or woman reading this
book — there is a high price of regret
to pay for low living hence one needs
to know their standard and always aim
higher, raise the bar and see lost oppor-
tunity as university fees that was paid
indirectly.
Favourite Quotes
• regardless
“A person who is sure of themselves
of qualification or academic
achievement can surpass a qualified
person who is unsure and second guess-
es themselves.”
• “Self love requires a healthy dose of
putting you first.”
• “Loving yourself is nowhere related to
selfishness or prideful behaviour.”
“Knowing who you are and what you
want is all you need sometimes.”
• “Do not give your power away, the
power of a winning mind, the power of
a clear mind, the power of a progres-
sive mind; it is your God-given ticket to
success.”
Key questions asked
Rudo asks these thought provoking
questions in her book and if you had
never really thought about the answers to
these as you read the book you get clearer
on your responses.
Do you love yourself?

• you?
How do you want the world to know

• How do you know if you love yourself?

• most
Why do you think you would be the
appealing brand?
• stand
What is the one thing that makes you
out and contributes to defining
who you are?
• Who do you want to be and why?
My Thoughts rather than spending too much time read- I really like the chapter where the author book. Learn, unlearn and relearn then
I do love the fact that the book is short ing and not actually taking action. explains how to love yourself and gives start this journey of Zvide — The Power of
and to the point. That allows you to read There is some very useful information ten steps to doing so. Loving You.
the book, and then get on with the work, contained within its pages. For example, I highly recommend that you read this
 Zimbabwe independent XTRA december 11 to 17, 2020 X3

FOOD & TRAVEL FOOD & TRAVEL

Italy: A world of good taste

Zivisai Chagaka

Italy has always been synonymous with

“good food” — not to mention its inimi-
table haute couture — offering an unmis-
takable explosion of flavours, scents and
aromas. Besides having one of the most fa- also lend themselves to the dissemina-
mous cuisines in the world, it also proposes tion and promotion of institutional offices
an immense variety of different regional abroad,” the statement says.
dishes and recipes. “The Fifth Week of Italian Cuisine in the
In order to celebrate Italy’s food culture, World, therefore, intends to enhance the
the SAHTC hotel school in Harare last Fri- Mediterranean diet abroad as a healthy
day hosted a presentation of the fifth edi- lifestyle and balanced diet model, in the
tion of the Week of Italian Cuisine in the year that celebrates the 10th anniversary of
World. The worldwide commemorative its inclusion in the list of intangible cultur-
week was held between November 23 and al heritage of humanity by of Unesco. The
29. campaign will protect the enhancement of
The event was live-streamed in collabo- products with a protected and controlled
ration with the Italian Institute IIS Apicio- denomination.”
Colonna Gatti in Rome, under the theme In Zimbabwe, however, as in other coun-
Knowledge and Flavours of the Italian Lands, 200 tries the world over, Italian food culture
Years after the Birth of Pellegrino Artusi. continues to be enjoyed freely. It remains
The event took its cue from the bi-cente- exuberant and alive in much of the Medi-
nary of the birth of Pellegrino Artusi (1820– terranean diet, hence its nutritional model
1911), an Italian businessman and writer, and lifestyle has inspired by the habits of
best known as the author of the cookbook the European countries of the Mediterra-
La Scienza in Cucina e l’Arte di Mangiar Bene (Sci- nean basin since the 1950s.
ence in the Kitchen and the Art of Eating Well). World-renowned products such as Par-
The event saw the preparation and pres- migiano Reggiano (Parmesan) cheese, Par-
entation of an Italian dish, a tri-colour ma and San Daniele ham, Modena balsamic
fresh-stuffed pasta with basil and toma- vinegar, Genoa’s pesto, buffalo mozzarella,
to sauce, to Zimbabwean students at the Alba truffles and cured meats are just some
SAHTC hotel school. of the symbols that make Italy the land of
In turn, the local hotel school prepared good food.
a three-course lunch based on the Zimba- And how can anyone forget pasta and
bwean culinary tradition: a stimulate of ka- pizza, the embassy said, the universal
penta with lemon wedges (served with cia- synonyms for Italy? Pizza is famous and is
batta bread); main course of braised sheen widely enjoyed in Zimbabwe.
of beef served with peanut butter kale and The Italians are also connoisseurs when it
millet brown sadza; and a dessert of vanilla comes to matters of wines: “Italian wines,
panna cota with stewed rhubarb. those noble ambassadors of Italian excel-
In a statement to IndependentXtra on the lence throughout the world, cannot be ig-
role of Artusi to Italian cuisine, the Italian nored. The pleasure of tasting a fine wine
embassy said 130 years after the publica- in its native environment is unparalled — a
tion of his cookbook, “the text still repre- glass of Chianti or Brunello di Montalcino
sents a milestone for the national gastro- in Tuscany, of Barbera or Barolo from Pied-
nomic culture, capable of collecting and mont, or the Sicilian wines or the white
combining the recipes of the rich mosaic wines in Friuli and Trentino-Alto Adige, or
of our regional traditions, giving life to the the great reds of the Valtellina, to name just
idea of gastronomic Italy in the years in but a few.
which it was created — the cultural identity “The ancient Greeks used to call Italy
of our country”. ‘Enotria’, in reference to its production of
“The choice to enhance the figure of Ar- extraordinary wines. It would be impos-
tusi derives from the ability to be able to sible to list all the features of Italian wines
give dignity to home cooking and to en- sought after the world over for their variety
hance local food resources, characteristics and their quality.”
that take on increased importance in the The embassy also added that the Italian
current emergency context that has im- landscape is characterised, from north to
posed severe limitations on convivial mo- south, by wheat fields and olive groves —
ments, favouring the rediscovery of home where different types of breads and high-
cooking. The reprinting of the manual in quality olive oils are produced — which
countless editions and its translation into make the staples of the Mediterranean diet.
English, French, German, Dutch, Spanish, “Italy is a world of tastes that tempt the
Portuguese, Russian, Polish and Japanese, palate, eyes and heart!” Italian commemorative flavour … A tri-colour fresh-stuffed pasta with basil and tomato sauce.

I t ’ s a w e i r d wo r l d ,

„„COVID-19 PAGAN RITE much alive in our times,” Bosio

It is a ritual steeped in pagan mys- added.
tery, updated for the coronavirus age. “People turn to the healing tree
Sick people in northern France oc- when medicine has reached its lim-
casionally leave garments in healing its, and when science has let them
trees or “arbres à loques” in the hope of down.” — Reuters.
a cure, following a tradition that per-
sists since pre-Roman times. „„GERMAN SANTAS STILL RACE
But locals who pay attention have A small group of hardy Germans
noticed a recent change. sought to keep alive an annual tradi-
“The new development in 2020 is tion last Sunday despite coronavirus
Covid masks,” Bertrand Bosio, who restrictions as they took part in a run
runs Nord Fantastique, a Facebook dressed in Santa robes and hats.
page devoted to the region’s ancient “We think it is very sad that the run
sites and lore, said. can’t take place normally this year,”
Tied to the branches of the heal- said running club member Sebastian
ing tree in Hasnon, southeast of Lille, Stolle.
surgical masks can be clearly seen Normally up to 1 200 people take
among items of clothing that range part in the Santa Claus run in the
from socks to underwear — often eastern town of Michendorf, but this
left, Bosio said, by people suffering year participants were asked to keep
from fertility problems. their distance and post photos of
In another departure from ritual, themselves while running.
the votive masks are hung “pre- “The number of runners is limited
ventatively”, Bosio believes — or and there are different schedules to
perhaps hopes — rather than by run. There is not a starting line and
Covid-19 sufferers who ought to be time for everyone. Everyone can just
self-isolating. run at a different time and that is re-
Known as rag trees in Ireland, one ally helpful,” Grit Schmidt, one of the
of several other countries where the few dozen running Santas, said.
practice survives, the arbres à loques While Germany managed to bring
show pagan and Christian influences. the coronavirus pandemic under
Despite appearances, which can be control in March and April, it is now
disconcerting, they still bring people dealing with a more deadly second
hope, he said. wave and has closed restaurants and Mystic places hobbyist Bertrand Bosio poses next to “L’arbre à loques”, a healing tree to which people
“What’s interesting about this bars and limited public gatherings. attach cloths as a ritual for good health, according to a Celtic tradition, during this coronavirus pandemic in
place is that the ritual is still very — Reuters. Hasnon, France.
X4 ZIMBABWE INDEPENDENT XTRA DECEMBER 11 TO 17, 2020

HEALTH PAGE

Risk of prostate cancer

tor may check PSA blood levels
regularly but take no immediate
action.
Alternatively a surgeon may
carry out a prostatectomy. This

increases after age 50

involves removal of the prostate
gland using laparoscopic, open
or radiation surgery. Surgery is a
common choice if the cancer is
not thought to have spread out-
side the prostate gland.
In its advanced stage, prostate
PROSTATE cancer is one of the cells in the prostate gland start to cancer treatment may involve
commonest types of cancer in grow out of control. chemotherapy that can kill can-
men. About one in nine men are The risk of prostate cancer in- cer cells around the body or hor-
diagnosed with prostate cancer. creases after the age of 50. It is monal therapy. Hormonal thera-
Fortunately it can often be rare before the age of 45. If you py involves blocking or reducing
treated successfully if diagnosed have a close relative with a his- the main male hormones. Doing
in its early stages. tory of prostate cancer, you have so appears to stop or delay the
The prostate is a small walnut- a higher chance of developing it. growth of cancer cells.
shaped gland in males. It is about Because of the many advanc-
the size of a walnut in young
Causes es in available treatments, most
males but can be larger in older Like all types of cancers, the ex- men whose prostate cancer be-
men. It is located below the blad- act cause of prostate cancer is not comes widespread can expect to
der and in front of the rectum. Prostate cancer begins when cells in the prostate gland start growing easy to determine. In many cases live five years or more. Some men
Its function includes produc- uncontrollably and abnormally. multiple factors may be involved. with advanced prostate cancer
ing the fluid that nourishes and Cancer anywhere in the body live a normal life and only die of
transports sperm and secreting protein that helps semen retain its control. starts when cells begin to grow another cause.
prostate specific antigen (PSA), a liquid state. It also helps aid urine Prostate cancer begins when out of control. Cells in nearly any
part of the body can become can-
Effects on fertility
cer cells and can then spread to The prostate gland plays a role
other areas of the body. in sexual reproduction. Prostate
Prostate cancer begins when cancer and many of its treatments
cells in the prostate gland start affect fertility in several ways. For
growing uncontrollably and example if a man has surgery to
abnormally. These abnormal remove either the prostate gland
or cancerous cells continue to or the testicles it will affect se-

Z I M B A B W E
grow and divide until a tumour men production and fertility.
develops. Radiation therapy can affect
If you have an aggressive type prostate tissue, damage sperm

PROJECT MANAGEMENT of prostate cancer the cells may

metastasise or spread from the
original tumour site to other parts
and reduce the amount of semen
for transporting it. Hormonal
therapy can also affect fertility.

ACHIEVEMENT AWARDS of the body.

Symptoms
There are however some op-
tions for preserving these func-
tions. This includes banking

2020 Prostate cancer is usually a slow

growing cancer, often causing
no symptoms until it is in an ad-
sperm before surgery or extract-
ing sperm directly from the testi-
cles for artificial insemination.
“Celebrating Leadership in Project Excellence during the Covid 19 Times” vanced stage. If you would like to have chil-
Men who do experience symp- dren after prostate cancer discuss
GUEST OF HONOUR toms may notice difficulty start- your options with your doctor
ing and maintaining urination, when he advises you on the pro-
a frequent urge to urinate espe- posed treatment plan.
cially at night, blood in the urine Lowering your risk of prostate
or semen, painful urination, in cancer
Hon. Vice President
General Constantino
some cases pain on ejaculation, There is no sure way to prevent
Chiwenga (Rtd)
difficulty getting or maintaining prostate cancer. Many risk factors
Hon. Dr Joram Gumbo Paul Muller-
Minister of State for Certified Project Director
Eng. Themba K. Kumbula
Qualified Civil/ Structural
an erection as well as pain or dis- such as age and family history
Presidential Affairs and
Monitoring
Institute of Project Engineer comfort when sitting if the pros- cannot be controlled but there
Management
His Excellency,
Cde. E. D Mnangagwa
Implementation of Australia
Chairman - CIPMZ
tate is enlarged. are some things you can do that
The President of Zimbabwe Government Programmes
In its advanced stage prostate may lower your risk of prostate
cancer can involve bone fracture cancer.
“Celebrating Leadership in Project Excellence during the Covid 19 Times” or bone pain especially in the Some studies have found that
hips, thighs or shoulder, swell- men who are overweight or obese
17 December @ Rainbow Towers Hotel, Harare ing in the legs or feet, weight loss, have a higher risk of developing
tiredness, changes in bowel hab- advanced prostate cancer.
Dress Code: Gold Tie Time: 16:00 HRS its and back pain. To reduce your risk, maintain
Once prostate cancer begins to a healthy weight; keep physically
grow quickly or spread outside active; follow a healthy eating
BOOK YOUR SEATS NOW!!! the prostate it is dangerous. pattern, which includes a variety
of colourful fruits and vegetables
Treatment and whole grains, and avoid or
MASTERS OF CEREMONY
Treatment for prostate cancer limit red and processed meats
depends, among other factors, and highly processed foods.
Be a on the stage of the cancer. In
Partner its early stages (when it is found The information in this article is pro-
& only in the prostate gland) it can vided as a public service by the Cimas
Exhibitor!! be treated with very good chanc- iGo Wellness programme, which is
es of survival. Cancer that has designed to promote good health. It is
spread beyond the prostate such provided for general information only
McDonald Gurura Mis Rachi
as to the bones, lymph nodes and and should not be construed as medi-
For More Information Contact: Gladys or Owen Nyasha, Our Partners Our Sponsors Our Media Partners lungs is not curable but it may be cal advice. Readers should consult
Tel: +263 242 443124 controlled for many years. their doctor or clinic on any matter re-
Cell : +263 772 675 810/ +263 775 441 251/+263 778 496 036 In the early stages when the lated to their health or the treatment
Email: [email protected]
cancer is small and localised a of any health problem. — igo@cimas.
doctor may recommend watchful co.zw or WhatsApp 0772 161 829 or
waiting or monitoring. The doc- phone 024-2773 0663.
 SOCCER Pogba set for Juventus return/19

9 7 7 1 5 6 4 0 6 9 0 0 0
Independent

SPORT
ISSN 1564 - 0698

Zimbabwe independent december 11 to 19, 2020

Zim lose
another
prodigy
Nottinghamshire have announced “As soon as I walked into Trent Bridge
the signing of teenage Dane Schadendorf, for the first time, I could imagine how
a wicketkeeper who played for Zimba- special it must be to play with a full house
bwe in the 2020 Under-19 World Cup, on in here,” he said.
a two-year contract. “That first day in training with the lads
Schadendorf became a viral hit in the was just an unreal experience.
warm-up matches ahead of the tourna- "My game is probably more suited to
ment, thanks to a leg side stumping in a white-ball cricket at the moment, but I'm
fixture against New Zealand that evoked working really hard on my red-ball game,
MS Dhoni in his prime. He also made 81 and I think I'm getting better," Schaden- Zimbabwe wicketkeeper Dane Schadendorf
against eventual finalists India in a warm- dorf said. "My aims for the next year or so
up match, though he was less successful are just to get off to a good start here, score enced guidance of the likes of Matt Wood, Welch will play for Mountaineers in the
in the World Cup itself with 138 runs in as many runs as I can, and try to stake my Anton Roux and Andy Pick - we hope to see Logan Cup, Zimbabwe's major domestic
nine innings. claim for a place in the first team." him pushing for a place in our first team in competition, which started on Wednesday.
He was born in Harare, but will qualify Mick Newell, Nottinghamshire's di- the near future.” There is further representation from county
as a local player in county cricket thanks rector of cricket, said: “Dane has signifi- Schadendorf follows his compatriot Nick cricketers in the tournament in the shape
to a British passport. He had played club cant talent both with the bat and with the Welch in signing a county contract. Welch, of Shane Snater, the Essex seamer, and Ben
cricket for Caythorpe as well as for Not- gloves. a 22-year-old top-order batsman, gained Curran, the Northamptonshire opener and
tinghamshire's Under-18s and second XI “We believe there’s a high ceiling of British citizenship in September and played brother of Sam and Tom, who will both play
in the 2020 season. potential there and — under the experi- five games for Leicestershire in the T20 Blast. for Southern Rocks. — Cricinfo.

Champions League draw probabilities

Jurgen Klopp looks set to head back to only five potential pairings and so are most
Germany with Liverpool most likely to likely to meet. Real Madrid only have four.
meet Borussia Monchengladbach in Mon- In this upcoming draw there are four
day's Champions League last-16 draw. German, four Spanish, three English, three
A calculation of the probabilities of each Italian, one French and one Portuguese
pairing shows that the English trio of Liv- club in the draw.
erpool, Manchester City and Chelsea, all According to the calculations, Liverpool,
of whom won their group, are statistically who topped a group including Atalanta,
most likely to be heading to face Marco who finished second, have an 18.38 per cent
Rose's Gladbach side in the first knockout chance of facing Borussia Monchengladbach.
round. Chelsea, who edged out Sevilla to top their
German teams only have five poten- group, are even more likely to head to Borus-
tial draw options due to having two teams sia Park with a likelihood of 18.62 per cent.
seeded — Bayern Munich and Borus- Manchester City disappointingly suffered
sia Dortmund — and two not seeded - elimination in the quarter-final stage to Lyon
Monchengladbach and RB Leipzig. last season and are targeting a deep run this
Worryingly for Barcelona, who were time round. Pep Guardiola's side are least
comprehensively beaten by Juventus 3-0 likely to meet Atalanta, who beat Liverpool at
in Matchday Six to drop to second in the Anfield this season, with just a 12.4 per cent
group, they are most likely to be handed a chance of pairing with the Bergamo-based
reunion with defending champions Bayern side.
Munich. Porto finished runners-up in City's group
Bayern are most likely to face either of and are viewed as the most favourable match-
the Spanish teams - Sevilla or Barcelona - Jurgen Klopp up among the second-placed teams.
and they would likely rub their hands to- Real Madrid, who staved off the threat of
gether at the prospect of taking on Ronald The 16 teams that have made it through sible opponents for each team, their chanc- elimination to top Group B, are in line for a
Koeman's out-of-sorts side. have been divided into two pots - those es of being matched to a particular team are trip to RB Leipzig as reward for the final round
The last time the two met it was in the that finished top of their groups will be also affected by the number of clubs from salvation. But, of Porto's potential options,
Champions League bubble in Lisbon to seeded and will play a team that finished each country that have qualified and which they are also the most likely.
conclude the 2019-20 competition. second. pot they're in. The influx of Spanish sides finishing second
The quarter-final cost Quique Setien his However, at this stage of the competi- The reason the percentages are not equal mean that Zidane's players are facing only
job at Barcelona as Lionel Messi and Co tion, teams from the same country and is that some teams have the prospect of be- four options in Monday's draw: RB Leipzig,
were blown away in an 8-2 demolition job, teams that have just played in the same ing drawn against five eligible teams, others Porto, Atalanta and Lazio.
a result viewed as one of the worst in the group cannot be drawn against each other. have six or seven options, and so the values The last-16 draw takes place in Nyon, Swit-
club's history. While this immediately reduces the pos- change. Juventus and Gladbach both have zerland on Monday. — Dailymail.
 BusinessDigest
Zimbabwe INDEPENDENT

December 11 to 17, 2020 www.theindependent.co.zw

World African Markets

Name
JSE ASI
Price (US$)
59.088,04
% Change
-203,71
FTSE/JSE Indices
Name Price (US$)
S&P 100 1,679,99
% Change
0,06
Other indices
Name Price (US$)
FTSE All World (Exc US)
% Change

Markets NSE ASI 145,97 -0,62 S&P 500 3,673,83 0,03 Russell 1000 2,067,96 0,01
NGSE 34,577,26 -444 Nasdaq 100 12,398,93 0,28 Russell 2000 1,904,99 0,15
EGX 30 10,987,39 -0,28 Nasdaq 100 AHI 12 356,20 -0,07
DJIA 30,027,53 0,14

Foreign banks shut out

SHAME MAKOSHORI

SEVERAL foreign banks have spurned re-

quests by Zimbabwe’s broke state firms to
borrow millions of dollars to pay off more

debt-ridden state firms

debts and bankroll critical infrastructure
development projects, businessdigest estab-
lished this week.
Official data showed that when Africa
Export Import Bank and a string of Asian
lenders, including China Exim Bank and
India Exim Bank, slammed their doors on bwe’s mostly insolvent 107 SOEs, which
State Owned Enterprises (SOEs), govern- have burnt ZW$10,45 billion (US$127,7
ment intervened with guarantees to unlock million) in losses in the past nine years, ac-
US$266,5 million in fresh debt. cording to data contained in the pre-2021
The Annual Public Debt Bulletin 2019 Financial national budget strategy.
Year said the government had to borrow Finance minister Mthuli Ncube in Octo-
and on-lend to the SOEs in order to keep ber said parastatals’ contribution to GDP
vital projects running. had declined to only 12% this year, from a
The strategy exposes the government to record 40% during boom times in the late
the risk of accumulating more debt if the 1990s.
mostly insolvent state firms default on their However, the budget strategy paper re-
repayments to Treasury. vealed 12% was a significant understate-
The International Monetary Fund says ment to the devastation inflicted on key
Zimbabwe is already in debt distress. State assets by mismanagement.
As at December 31, 2019, domestic debt “SOEs, which used to contribute about
stood at ZW$8,88 billion (about US$110 40% to GDP, are merely adding 7,5% to
million), according to the debt bulletin. the country’s GDP,” the strategy paper
This was about 5% of the country’s gross revealed.
domestic product (GDP). Zimbabwe’s 2020 GDP is estimated at
Government acknowledges that it had ZW$209 billion (US$2,55 billion) this year.
to intervene on behalf of parastatals and “It is estimated that prior to the pandem-
agrees that there are risks to public financ- ic, the SOEs had accumulated losses worth
es associated with pumping funding into around 5% of GDP since 2011 and potential
failing SOEs. costs could be as large as 18% of GDP,” the
“Government has been borrowing to Government guaranteed a loan of US$110,4 million for Zimbabwe Electricity Transmission and 74-page strategy paper revealed.
on-lend to various public entities to sup- Distribution Company from Afreximbank for the payment of accumulated debt on imported Five percent of ZW$209 billion trans-
port key infrastructure projects, which are electricity. lates to about ZW$10 billion (US$122 mil-
critical for economic development,” the lion) the value of public funds blown out by
bulletin says. spective banks, hence none of the guaran- Transmission and Distribution Company SOEs in nine years, while 18% represents
“Due to the limited sources of external tees issued were called up. Guarantees are (ZETDC) loan amounting to US$110,4 mil- about ZW$37,6 billion (US$459,6 million).
finance for public entities, lenders have a contingent liabilities which can contribute lion from Afreximbank for the payment of Government attempted to blame blanket
preference to lend directly to the govern- to the accumulation of public debt in the accumulated debt on imported electricity lockdowns activated by the government in
ment, instead of public entities. The on- event of default by the primary borrow- (US$79,5 million) and the procurement of March to limit the spread of the Covid-19
lent facilities to public entities from 2017 to ers,” the bulletin states. prepaid smart meters (US$30,9 million). pandemic.
2019 amounted to US$266,5 million. Do- “To this end, the government has formu- During the same period, the ZETDC ser- But it also acknowledged that weak SOEs
mestic guarantees amounting to US$18,3 lated a framework for evaluating, monitor- viced its debts for electricity imports from stifle economic growth and warned that in
million and ZW$157,8 million (about US$2 ing and managing guaranteed and on-lent Eskom and Hidroeléctrica de Cahora Bas- the aftermath of excessive bleeding, 2021
million) were issued in the 2019 financial loans. The framework outlines the policy, sa of Mozambique amounting to US$87,6 macroeconomic targets were already un-
year,” the 41-page paper states. legal, institutional and operational struc- million.” der threat.
It says most of the guarantees were is- ture within which guaranteed and on-lent The report states that total external public “The pandemic may further compromise
sued to finance inputs for the 2019/20 ag- loans will be contracted, evaluated, moni- and publicly guaranteed debt amounted to the balance sheets and services delivery of
ricultural season. tored and managed.” US$8,09 billion, 84% of GDP, at the end of SOEs which may threaten the attainment
“The public entities have been honour- It further notes that: “In 2019, govern- 2019. of 2021 macroeconomic targets,” the strat-
ing their financial obligations with their re- ment guaranteed a Zimbabwe Electricity There has been a bloodbath in Zimba- egy paper noted.

How to list on FINSEC

The Financial Securities Exchange (FINSEC) renders a convenient conduct of an initial public offering (IPO) prior to the initial listing commonly known as floating, or going public, a privately held financial advisors for expert advice.
and technology driven securities market which caters for the of the company's securities on FINSEC. It applies to an application company is transformed into a public company. Initial public In some instances, though not very common in our markets, a
interests of every category of issuer and investor. FINSEC is an agile for listing of securities that are already issued or securities that will offerings can be used to raise new equity capital for the company company offers its shares through a process known as private
exchange with listing and trading rules that are designed to be issued upon listing, where no public offering will be concerned or to monetise the investments of private shareholders placement. This process involves the issue of shares, bonds or
accommodate various types of securities and yet retains robust undertaken. such as company founders or private equity investors. other securities to a few identified investors without opening up
and transparent structures for risk containment. Companies can When a company chooses to list by introduction, a pre-listing When a company initiates the IPO process, a very specific set of the offer to the general public as is the case during an IPO. While
list on the exchange through either an Initial Public Offering (IPO), statement shall be published. This pre-listing statement is not an events leading to the listing occurs. These events are usually secondary trading of such securities may be open to the public, the
listing by introduction (LBI) or listing by private placement. invitation to potential investors to subscribe for shares in the undertaken through the guidance of the company's nominated initial stockholders transact privately to determine the initial
FINSEC has introduced an intervention dubbed the GEM Portal company, but is issued for the purposes of providing information advisors who will coordinate meetings involving the various pricing and percentage holding among themselves.
that enables SMEs and High Growth Enterprises to access more to the public about the company. Investors will be able to buy parties to the listing transaction. Other parties involved may FINSEC listing rules are, by design, simple and straightforward and
diverse funding options such as debt (long and short term), listing shares in the secondary market trading of the company after the include the sponsoring broker, transfer secretary, independent are continually reviewed and updated to ensure they remain
on FINSEC, opportunities for pre - IPO funding, IPO pathfinder and listing. financial advisor and legal advisor. relevant and appropriate to the various classes of securities that
restricted offers. Prospective companies complete an online Listing by introduction on FINSEC helps to facilitate price discovery Information regarding the company is compiled, including can list and trade on our trading boards. To enjoy all these and
application for raising capital through either equity listing on the and market-value realisation, for Over-the-Counter traded and financial performance and expected future operations. This other benefits, kindly visit the FINSEC website and download the
FINSEC Exchange or through debt financing by investors. The similar securities. Through market demand and supply forces becomes part of the company prospectus, which is circulated for FINSEC Issuer Admission Rules or contact us.
interactive online form has an in-built comprehensive scoring and together with an efficient information processing mechanism, review. The company files its prospectus with the relevant The Financial Securities Exchange (FINSEC) is a Zimbabwe registered securities
rating mechanism of each input by the applicant, indicating to the buyers and sellers of securities listed on FINSEC are assured of authorities including the exchange on which it intends to list and exchange and a member of the Escrow Group. The Escrow Group has interests in
applicant how well they are doing and the prospects of their transacting at fair prices. sets a timetable from when the offer opens to when it closes and the financial services and technology sectors. Corpserve Registrars and Escrow
application. Applications that meet the predefined minimum Another method of listing is by an Initial Public Offering which can the company lists. On receipt of the prospectus, investors are Systems are the other members of the group.
score will be exposed to various providers of capital. be defined as the first sale of stock by a private company to the encouraged to go through the document in detail as it contains
For more information contact:
Moreso, companies can List by Introduction on FINSEC. Listing by public. It is generally offered by new firms that are looking for information about the company's historical as well as future
nd st
2 Floor ZB centre, Cnr Kwame Nkrumah and 1 Street
Introduction (LBI) allows a company to apply for listing without the funds to grow and expand their businesses. Through this process, prospects. Where possible, potential investors should contact their
Harare, Zimbabwe, Tel: +263 242 758193
2 Zimbabwe independent BUSINESS DIGEST december 11 to 17, 2020

LOCAL BUSINESS

MMCZ mulls fresh deal for chrome miners He said the challenges included lack of
TAURAI MANGUDHLA
government support, predatory buying
THE Minerals Marketing Corporation of and low prices.
Zimbabwe (MMCZ) is considering a raft In addition, the sector did not have a val-
of measures to improve payments to par- ue addition and beneficiation policy.
ticularly small-scale chrome producers, Chrome miners have also been affected
including making upfront payments for by lack of weighbridges, mining equip-
the mineral, to stimulate production and ment and under-capitalisation.
ensure viability of the sector, businessdigest These challenges have dampened the
reports. spirits of many miners and some of them
Currently, small-scale chrome miners have shifted to gold and gemstones mining.
are selling their produce to cartels at heav- “Government needs to put a taskforce
ily discounted prices. together to only focus on the mining of
“When small-scale miners are in the chrome.
bush, they sell their produce at even below “Its focus will be on production, pricing
half the standard price because they just and marketing.
want quick money,” MMCZ general man- “I am aware of the existence of the Min-
ager Tongai Muzenda told businessdigest this erals Marketing Corporation of Zimbabwe
week. Small-scale chrome miners are selling their produce to cartels at heavily discounted prices. (MMCZ), but I am sure they need to rise to
“We do have some ideas, but currently the occasion,” Moyo said.
we have to conclude the Chrome Policy eration said small-scale miners were los- solutions that are informed,” Muzenda He said pricing was a huge challenge.
which is being drafted. One of the ideas is ing about US$70 in potential revenue per said. Chrome miners were at the mercy of
to secure funding or sponsorship so that tonne to cartels, who are cashing in on Zimbabwe accounts for 12% of the buyers and smelters, and were calling for
we pay producers half their money on de- huge disparities between domestic and world’s chrome reserves, only second constant updates on prices to help them
livery then the balance is paid when the exports prices. to South Africa. Official statistics suggest plan.
chrome is sold. This depends on grades and Predatory buying, it emerged, is rampant only 5% of chrome reserves have been “Knowledge of markets is crucial to
everything,” Muzenda said. on the mineral-rich Great Dyke belt, where exploited. miners as it gives them local or foreign op-
“For example we might say, your chrome the cartels are taking advantage of cash Last month, an official with the Nor- tions,” he said.
can get you US$460 (per tonne) so we pay shortages and infrastructure constraints ton Miners Association warned that while “If these issues are not addressed, the
US$30 (per tonne) and stockpile then the besetting the economy to buy chrome for a Zimbabwe had set an ambition to trans- US$12 billion target will remain a pipe-
balance is paid when we sell,” Muzenda song from small-scale producers. form its mining industry into a US$12 bil- dream. We need to focus on the ease of do-
added. “Two weeks ago we reengaged small- lion sector by 2023, the vision might be ing business in mining because bureaucra-
Under the current set up, small-scale scale miners in Karoi, Gweru and Zv- hard to achieve unless the challenges con- cy is affecting business. Government needs
chrome miners have to wait for buyers to ishavane. We were encouraging them to fronting chrome miners are addressed. to commit and grow an industry one at a
collect their stockpiles after which they are come forward and get expert assistance There are a plethora of challenges facing time. If they want earnings in mining, then
paid. and information so that they are not taken the chrome mining subsector, chairperson more focus must be deployed until it starts
Last year, the Zimbabwe Miners Fed- advantage of. It also helps us come up with of the association Privilege Moyo said. bearing results, then move to the next.”

US$3bn black hole cripples tourism Old Mutual lays

SHAME MAKOSHORI
out capital
POTENTIAL revenues totalling US$3 bil-
lion are being wasted in Zimbabwe’s tour-
markets plan
ism industry annually as current arrivals TATIRA ZWINOIRA
have failed to help the sector reach full
potential, new data showed this week. OLD Mutual Zimbabwe (OMZ) has released
However, in its inaugural edition of a prospectus for its “Old Mutual Zimbabwe
the ZTA Newsletter released recently, the Stock Exchange Top-Ten Exchange Traded
Zimbabwe Tourism Authority (ZTA) says Fund Trust”, which tracks the performance
while bad for a country that has thrust its of the Zimbabwe Stock Exchange (ZSE)
leisure sector at the heart of current re- Top-10 Index.
covery efforts, the US$3 billion gap pre- The ZSE Top-10 Index represents the top
sents opportunities for investors. counters by market capitalisation on the
Zimbabwe nets about US$2 billion in main bourse.
annual tourism revenues. “This prospectus relates to information
But authorities launched multiple strat- to prospective investors of the establish-
egies to scale up revenue to about US$5 ment of an Exchange Traded Fund by Old
billion by 2025. Mutual Investment Group Zimbabwe (Pri-
Arrivals are projected to reach five mil- vate) Limited, whose objective is to give
lion in the next five years, from 2,5 million returns that track the Zimbabwe Stock Ex-
in 2018. change Top-Ten Index,” reads part of the
“There is a US$3 billion gap between the prospectus.
current market size and the anticipated “Prospective purchasers of any exchange
market size,” the newsletter says. traded funds should ensure that they un-
“The US$3 billion represents opportuni- derstand fully the nature of the exchange
ty. Looking at the anticipated market size, traded fund and the extent of their expo-
it therefore means that the Zimbabwean sure to risks and that they consider the
tourism industry is filled with opportuni- suitability of the exchange traded fund as
ties. We see this as a great opportunity to an investment in the light of their own cir-
re-organise and capacitate (investors) to cumstances and financial position.”
take up space in the tourism sector. While The ZSE Top-10 Index as of Monday in-
the Covid-19 may have ravaged dreams in cluded CBZ Holdings Limited with a mar-
the industry, it is clear that with the right ket capitalisation of ZW$22 678 645 803
mindset we can take advantage of the fu- (about US$280 million), Delta Corpora-
ture in tourism.” tion Limited at ZW$28 286 532 772 (about
The newsletter notes that decisions by US$349 million) and Cassava Smartech
governments across the world to ground Zimbabwe Limited at ZW$15 164 459 601
airlines and restrict international travel Over 60% of passenger airlines operating scheduled frequencies into Zimbabwean destinations (about US$187 million).
pushed foreign tourist arrivals into Zim- had returned since Harare lifted air travel restrictions in October. Others included Innscor Africa Lim-
babwe down by 90% this year, the biggest ited, FBC Holdings Limited, Econet Wire-
plunge in 40 years. Writing in the newsletter, Godfrey Koti, “The tourism sector is a major foreign less Zimbabwe Limited, Padenga Holdings
The sector had projected to scale up ar- head of corporate affairs at ZTA, said strict currency earner, generating just over Limited and Hippo Valley Estates.
rivals by 30%, riding on improved access compliance to World Health Organisation US$1,3 billion from 2, 5 million tourist Collectively, the ZSE Top-10 Index was
after major airport revamps and aggres- guidelines would remain in force at tour- arrivals recorded in 2018. The freezing of valued at ZW$150 416 189 363 (about US$2
sive forays into the world’s richest source ist resorts, possibly giving travellers confi- international and domestic travel has sig- billion), which makes up 14% of the gross
markets. dence about their safety. nificantly impacted tourism, destabilis- domestic product.
But the newsletter says the sector’s This week, the Civil Aviation Authority ing a forecasted 30% growth in domestic According to American financial and
darkest patch almost grounded the econ- of Zimbabwe (Caaz) said over 60% of pas- tourism by end of 2020.” economic literacy website, Investopedia,
omy after losing US$1 billion. senger airlines operating scheduled fre- During the period under review, inter- an exchange traded fund otherwise known
Industry regulator, the ZTA said the quencies into Zimbabwean destinations national tourist arrivals in Zimbabwe de- as an ETF is a type of security that involves
good news is tourism has begun the first had returned since Harare lifted air travel clined by between 30% and 90%, making a collection of securities such as stocks.
steps towards its much-awaited bounce restrictions in October, in what it noted a loss of close to US$1 billion in tourism ETFs often track an underlying index,
back. was a “good and promising restart”. receipts. although they can invest in any number of
For now, however, a stronger recovery “Zimbabwe’s tourism sector, as with However, the recovery of the key for- industry sectors or use various strategies.
may not be guaranteed as the pandemic many industries, is slowly staggering to eign currency earner has been gaining ETFs are in many ways similar to mu-
has been making fresh inroads into the a new-normal after a tumultuous few momentum with various tourism players tual funds. However, they are listed on ex-
country, with health officials reporting months of uncertainty,” Koti says, writing throughout the country reopening facili- changes and ETF shares trade throughout
upsurges in new cases recently. in the newsletter. ties from October. the day just like ordinary stock.
 Zimbabwe independent BUSINESS DIGEST deceMBER 11 TO 17, 2020 3

LOCAL BUSINESS

‘Hippo revenue to rise 640%’

SHAME MAKOSHORI

REVENUES at the Zimbabwe Stock Ex-

change-listed sugar producer, Hippo Val-
ley Estates will charge by a hefty 641%
during the year to March 31, 2021, spurred
by rampaging inflation, according to re-
searchers at IH Securities.
The report gives insights into how ex-
perts see a completely different inflation
outlook compared to figures released by
government in the 2021 national budget
two weeks ago, as IH sees rocketing pric-
es, which may further exert pressures on
the economy and trigger a further erosion
of the domestic currency.
In his 2021 national budget, Finance
minister Mthuli Ncube projected a 336%
year-end inflation and targeted a 135%
figure for next year.
But Hippo’s projected 640% charge may
point to sustained volatilities and rocket-
ing prices during the first quarter of 2021,
given that most consumer goods have sug-
ar as a key raw material.
Analysts have already warned the mar-
kets to brace and prepare for a tougher first
half of 2021 than projected by authorities.
IH confirmed this in its paper titled “Hip-
po Valley Estates Limited; 1H21 Earnings Update: Hippo’s projected 640% charge may point to sustained volatilities and rocketing prices during the first quarter of 2021.
Inflation Induced Pricing Drives Topline”, which
tips the market for “high-priced domestic margins will begin to sharply correct to- uncompetitive. 2025.
sugar sales”. wards historical norms providing down- “To enhance exports of goods where Zimbabwean banks have generally pur-
“We anticipate the sales mix for FY21 side risk to current levels of profitability. sugar is a main ingredient, the govern- sued a cautious lending strategy in the
(financial year 2021) will be skewed in fa- Work on Project Kilimanjaro has seen a ment will issue import licences for affect- wake of steep inflationary hikes at the be-
vour of higher-priced domestic sales,” IH total of 2 700 hectares of virgin land being ed manufacturers which may marginally ginning of the year, as well as exchange
said. bush cleared and ripped and 588 hectares weaken local demand for Hippo’s prod- volatilities.
“We forecast a revenue increase from planted to sugarcane,” IH said. uct,” IH said. “Project works have been slowed down
ZW$1,68 billion (US$,5 million) in FY20 “We expect the project to gain traction “SI 85 of 2020 allowing the use of free on account of delays in obtaining the req-
to ZW$12,48 billion (US$152 million) in as the local currency stabilises and the funds in the trading of local goods as well uisite funding from financial institutions at
FY21, being a y/y increase of 641% driven banking industry takes a less cautious ap- as a stable local currency following the the back of adverse economic conditions,”
by inflationary price increments in 1H21,” proach to landing. In order to encourage introduction of the foreign currency auc- Hippo said.
the report said. consumption of locally produced sugar, tion system, will lead to less distortions On completion the Project Kilimanjaro
The report projects Hippo’s Earnings Be- the government excluded the commodity in local and international pricing of the is expected to contribute significantly to
fore Income, Tax, Depreciation and Amor- from importation under the Open General commodity.” the industry effort to fully utilise its in-
tisation (EBITDA) margins to soften to 70% Import Licence.” In its financial statements for the half stalled milling capacity of 600 000 tonnes
during the year to March 2021 from 95% It, however, said the price of locally year ended September 30, 2020, Hippo of sugar by 2024/25.
this year “as cost lags begin to narrow es- produced sugar was 50% above the land- said adverse economic conditions had This was projected to position Zimbabwe
pecially after the rise in utility costs”. ed price, which has rendered exports stalled progress at the Project Kilimanjaro, as one of the most competitive sugar pro-
“We anticipate that thereafter EBITDA of products that have sugar as an input which was expected to be completed in ducers in the region.

PPC turns to solar energy Great Dyke

Kudzai Kuwaza

LISTED cement manufacturer PPC Zimba-

sells stake
to Fossil
bwe will next year be focusing on investing
in solar projects as it looks to address the
issue of power supply deficits.
The country was hard hit by rolling
blackouts last year that lasted up to 18 GREAT Dyke Investments, a Russian-
hours daily, which crippled the opera- backed project planning to build Zimba-
tions of industry with companies incurring bwe’s biggest platinum mine, has sold a
losses running into millions of dollars. This 4,4% stake to Fossil Mines Ltd as Covid-19
was caused by extremely low water levels disrupted fundraising for the venture.
at Kariba Power Station and the failure by Fossil, owned by Zimbabwe’s Obey
government to retire debts to South Afri- Chimuka, will invest US$30 million in the
can power utility Eskom and Mozambican Darwendale project, through a combina-
power entity Hidroeléctrica de Cahora tion of cash and services, including for
Bassa. engineering, procurement and construc-
The cement manufacturer has invested tion. That leaves tycoon Vitaliy Machitski’s
nearly US$50 million towards setting a so- PPC has invested nearly US$50 million towards setting a solar farm in Gwanda and Bulawayo. Vi Holding and Zimbabwe’s Landela Min-
lar farm in Gwanda and Bulawayo. The land ing Venture Ltd each with a 47,8% stake.
has been procured with discussion around in the New Year. These are a US$4 million reinvest, you get to a stage whereby your The sale values Great Dyke Investments at
the commencement now at an advanced investment in raw materials processing and equipment becomes highly inefficient and US$680 million.
stage. a US$1 million investment in Shamva Mine. you start having regular breakdowns,” he Great Dyke Investments Chief Executive
The cement manufacturer anticipates an However Masiyane told businessdigest that noted. Officer Alex Ivanov said the coronavirus
output of close to 32 megawatts at its Col- its expansion drive is threatened by cheap Meanwhile an update on PPC Zimba- pandemic has delayed project fundraising,
leen Bawn factory in Gwanda and 10 meg- cement imports that have flooded the mar- bwe’s performance shows that despite which was originally due to be completed
awatts in Bulawayo, which will be shared ket and warned that this could also have an challenging economic conditions and the this year. Financing of US$665 million is
with the Harare factory. adverse impact on jobs within the sector. impact of Covid-19 related lockdown re- now expected to be finalised in the first
PPC Zimbabwe managing director Keli- “We have been talking to you about ex- strictions, its cement sales for the period quarter of 2021, Ivanov said in an emailed
bone Masiyane said the company is look- pansion which is basically investment and were in line with the overall market which response to questions. The lead arranger for
ing at issues of going green to ensure that its when you invest, you expect a return. But grew 5% to 10%, supported by an increase that funding is Cairo-based Afreximbank.
operations are not hindered by power sup- with the current state of affairs you have in volumes of 35% to 40% in Q2. The Darwendale project has the potential
ply challenges as well as enhance cleanli- got imports coming in and Zimbabwe by “Revenue increased by 60% to R797 mil- to become one of the world’s biggest plati-
ness in its operations. its very nature, the costs of production is lion (US$53,3 million) supported by higher num mines and its development is central
It joins companies such as beverage quite high compared to the region. So it be- realised selling prices in US dollars. EBITDA to the Zimbabwean government’s plans
manufacturer Schweppes Zimbabwe and comes quite a challenge because its starts improved by 62% to R326 million (US$21,8 to reboot a collapsing economy. Zimba-
diversified financial institution Old Mutual to threaten the viability of local companies, million). The positive sales momentum bwe has the world’s third-largest platinum
in putting up solar systems as part of its ef- you know employment and things and like seen in Q2 was also experienced in October group metal reserves after South Africa and
forts to go green and alleviate electricity that,” Masiyane said and November but at a normalised rate,” Russia. Former president Robert Mugabe
supply challenges. He said the company will also re-in- the company revealed in an update. handed the Darwendale concession to
PPC has also poured US$5,2 million on vest in the business to ensure continued “PPC Zimbabwe continues to meet its Russian investors in 2006 after the govern-
environmental sustainability initiatives in viability. debt obligations in the country, is finan- ment repossessed land from a local unit of
2021 at its Colleen Bawn factory. Another “We always want to pour back into the cially self-sufficient, and recently declared South Africa’s Impala Platinum Holdings
two projects are expected to come on board business,” Masiyane said. “If you do not a dividend to its shareholders.” Ltd. — Bloomberg.
4 Zimbabwe independent BUSINESS DIGEST december 11 to 17, 2020

COLUMN

Zimbabwe
Economics Society

Will the new year open

up an era of opportunity?
Zimbabwe has to get its growing gold industry under control and management.

in 2021? 2018/19, very high levels of inflation have and this has created billions of jobs and
Eddie There are many, but in my mind, the substantially wiped out the accumulated raised living standards across the globe.
Cross major ones are relatively few. On the po-
litical front we have to make progress on
financial savings of many generations of
Zimbabweans.
Today global financial markets are awash
with liquidity and the main problem con-
economist re-engagement with the global community We are now largely debt free, but have fronting the banking industry is what to do
— not as supplicants, but as an independ- no cash. It costs us ZW$6 billion (US$73,3 with that liquidity — how to find profitable
ent sovereign state that is trying very hard million) a month to import all our basic and safe outlets for surplus money. Our
to find its way in the world. No easy, but I foodstuffs, it would cost us ten times that problem is the opposite. We are swamped
IT has been my view for some time that the think this is possible. to grow the crop and then double that again by new opportunities, but cannot fund
average Zimbabwean has not yet grasped Then we have to get our growing gold to buy the crop and store it for eventual sale them.
the extent to which the ground under our industry under control and management. and consumption. The Continental Free Trade Zone is going
feet has changed. We are potentially one of the largest gold We have to recognise that the task of our to exacerbate this problem because it opens
Two years ago we had a grossly over- producers in the world. Our industry is un- financial industry is very different in a rap- up access to markets on the continent for
valued currency, we were running a mas- like many others in that our gold reserves idly growing economy than a contracting countries like Zimbabwe, which are com-
sive budget deficit, even though we were are located over large areas in small or low economy. All the countries that are experi- petitive, have the skills and the resources to
already in default as a country on our debts. value deposits. encing rapid growth today, have been able exploit regional opportunities.
We were importing over 70% of our food Our people have discovered this and we to do so because they could borrow abroad When I visited Ireland in the late 1970s
and 95% of what you saw in a supermarket have probably two to three million people to finance the expansion. We cannot do so just after the UK and Ireland went into the
was imported. Even before the onset of the actively mining gold, in addition to about on our own and therefore re-engagement is European Union, I found a country plagued
Covid-19 crisis our gross domestic product 600 formal mines. not just an option, it is essential. by rural poverty and conflict. Most farms
(GDP) was declining. Only a small proportion of this output I was reminded this past week by the did not have clean water or modern facili-
Correcting those problems required pain- is marketed here — in 2020, probably less Minister of Foreign Affairs that on January 1, ties; they were almost peasants. Today Ire-
ful and extensive surgery — not palliatives. than 20 tonnes worth US$1,4 billion. The Britain leaves the European Union and Af- land has one of the fastest growing econo-
We have not yet arrived at the point where rest is smuggled abroad and the proceeds rica goes into a new continental free trade mies in the world, with a first world eco-
we can say we are back to normal, but just either banked abroad or spent elsewhere. zone. nomic infrastructure and industries.
look around you today. There is no doubt, The local industry is plagued by crimi- I am afraid and I think that Britain is in Zimbabwe stands on the threshold of new
that unlike our neighbours to the south and nal elements and armed gangs. This cannot for a hard Brexit and will suffer the conse- opportunities today — we are slowly getting
the western world, the Zimbabwe economy go on. If we did we would enter a new era quences for some years to come. The ques- our act together, our economy is expanding,
is now recovering fast. where we would have the resources to deal tion is what about Zimbabwe in a continen- our local currency stable and undervalued
By the end of December, I have no doubt with our international debts, and resume tal market of over 1,2 billion people and a and our productive sector starting to appre-
in my own mind that our GDP will have normal relations with the global financial GDP approaching US$2 trillion, and grow- ciate that we can sell into regional markets.
largely recovered to earlier levels of activ- community. My own estimate is that we are ing rapidly. In fact, even now, our industrial exports
ity. Our inflation rate has been below 45, losing US$2 billion a year. We must recognise the main lessons from have doubled in the past year and our farm
month-on-month, for the past four months The third challenge is to fix agriculture. I the past 50 years in global business. This is exports are growing strongly. Global com-
and I see little chance that it will again spiral think we all know the industry is broken, a period of historically unparalleled expan- modity prices are recovering and if we can
out of control in 2021. but what we fail to appreciate is what it is sion and in the reduction in the global in- get our mining industry growing, the op-
We have no shortages of any kind in the going to cost us to get our farmers back to cidence of absolute poverty. Fifty years ago portunities are enormous.
market, our exchange rate has corrected the work. Although the record is muddled, pro- China, South Korea and many others were The challenge is how to fix our infra-
imbalances that existed in 2018 and is now gress has been made on the ground. poorer than Zimbabwe. Today they are all structure so that we can supply a growing
stable. Our balance of payments is in sur- In the past winter season, we could middle to upper income countries and the economy with clean water, electricity at a
plus and we have foreign exchange savings have produced close to 300 000 tonnes of main driver has been access to global mar- reasonable price and transport goods to and
in our bank accounts. Whenever can any wheat and barley had we had the mon- kets for goods and services. from our main markets at a competitive
of us remember a time like this? We have ey to finance our farmers. We grew over The combined borrowings of the Asian cost. All challenges, but also opportunities.
had a rough ride in the past 100 years — let 200 000 tonnes and this is double what we Tiger economies, including the two biggest
alone the past two decades. did in 2019, but we are struggling to pay for economies in the world — Japan and China, Cross is an industrialist, economist and former
In my view, for the first time we have the it. Still it shows progress. are equal to two and half times their GDP. MP for Bulawayo South. These weekly New Per-
internal capacity to settle our outstanding In fact, my feeling is that the biggest im- By contrast, African States, including Zim- spectives articles are co-ordinated by Lovemore
debts and once again resume a more nor- pediment to the recovery and growth of our babwe, are significantly under borrowed. Kadenge, immediate past president of the Zim-
mal relationship with the rest of the world. economy in 2021 is going to be financial. World markets have grown consistently babwe Economics Society . — kadenge.zes@
What are going to be the major challenges We have to recognise that in 2001/8 and in over the same period by 15% per annum gmail.com or mobile +263 772 382 852.
 Zimbabwe independent BUSINESS DIGEST December 11 TO 17, 2020 5

Business Nerve
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big plans?
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working world.
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Human Capital – Post Covid-19

impact on the Workforce
Flexibility and People Management
Covid-19 dispersed everyone from the traditional
workplace and introduced them to a novel world of
flexibility and remote working. Employees found
themselves entrusted to self-manage and empowered
to determine how they work, when they work and
what they work on whilst producing the deliverables.
With less control imposed upon them, employees
have been obligated to display trustworthiness, to
show innovation, creativity and even thrive. In the
post Covid-19 era some businesses will make a choice
to either return to the traditional workplace, or to
continue remote working a while longer.

Either way, managers need to learn to be

accommodating of these changes that the employees
have been introduced to. For some management
that leans on micromanaging and closely monitoring
people, remote working has asked them to rethink
their approach. How managers, the right-hand man
of the employer, will manage their people now and
beyond Covid-19 has an impact on the employer’s
- virtual has become the new order of the day. ability to inspire trust and motivate the workforce
“The world is on the brink of a technological revolution
These digital technologies, automation and Artificial towards achieving the organisation’s vision and goals
that will fundamentally change the way we live, work
Intelligence will continue post Covid-19. Where does in the future. Covid-19 has created uncertainty in the
and relate to one another.” Klaus Schwab, Founder and
this leave the employee? hearts and minds of employees, and employees need
CEO of the world Economic Forum wrote this in 2016.
supportive leaders that can help them navigate these
He anticipated that the scale, scope and complexity
uncertainties. Managers will play an important role in
transformation would be something mankind had Workforce Upskilling
the successful re-engagement of the workforce and
never experienced before. In 2020 the world woke Organisations have to put in place comprehensive
will be crucial in influencing the understanding of the
up to the COVID-19 pandemic. His words are more learning and development plans to ensure that they
organisation’s revised strategy and goals to the rest
important than ever. As we continue to navigate have people that have the appropriate digital skills
of the teams in the post Covid-19 era.
through this global pandemic, the world of work has sets and capacities in the post Covid-19 era. Attracting
not been spared, and rapid digital transformation of new talent with the required skills, though unavoidable
a magnitude like never before has swept through. at times, comes at a premium. Organisations have a Workforce Wellness
responsibility to provide support for their employees It is anticipated that post Covid-19 mental health
The only option COVID-19 has left is to adapt or die. to upskill themselves. This can be through programs issues will be on the rise amongst the populace
Without a vaccine to conclusively deal with the virus to develop talent internally so that they have the due to the pyschosocial and economic impact of
discovered as yet, it can only be expected that the relevant skills and capabilities to be productive,and the pandemic. It is prudent that every organisation
Covid-19 threat is going to be here a while longer. give them a competitive edge in the new age. maintains or builds up on the existent wellness
Despite the lack of a definite end in sight, business Upskilling existing employees comes with the added programs to cater for the psychological and physical
needs to continue. bonus that more loyalty is created as they are more well-being of the workforce, the only exclusive asset
willing to support the new work priorities and evolving that gives it an unrivaled competitive advantage.
Whether a business chooses to continue working processes because they have a deeper understanding
remotely or go back to the workplace, the fact of the mission, vision and goals of the organisation.
of the matter is there are implications for the
human capital. As Charles Darwin put it, natural Unleashing Human Potential
selection favours flexibility. It is not the strongest The introduction of technology such as artificial
that survive but those that are flexible enough to intelligence and robotics – the digital workers, though
adapt that make it. The world of work will never be commonly viewed as a threat to job security – can be
the same, there is a new normal which all human harnessed by the workforce to its advantage. Digital
capital within a business have to adjust and fit into. workers are vital to business continuity in the new
norm just as the human resources are. The digital
Accelerated Digitilisation workers can take over the routine and repetitive tasks,
For years, the fourth industrial revolution and the which humans have done for years, whose monotony
virtual workplace have been academic discussions and stifles human imagination, creativity and innovation.
not a reality in the near future. Enter Covid-19 and the The human resources have an opportunity to focus Anne Madara
business world went into a tailspin as a technological their creative energy on other tasks that robots cannot
revolution rapidly swept across the world. There do which drive productivity, help create solutions To find out more contact Anne Madara, Talent Assistant
Manager on:
was almost a hasty adoption of automation and that enhance customer satisfaction, and think Email: [email protected] or [email protected]
digitilisation of work which the workforce had never strategically in reaction to new situations as they arise. Address: Angwa City Building, Corner Julius Nyerere Way/
Kwame Nkrumah Avenue. P O Box 62, Harare, Zimbabwe.
prepared for. The virtual workspace, and flexible Tel: +263 4 750905/ 750979
working, which were totally unfamiliar, became the Redesign for Business Purpose
This article was compiled by EY as a source of general information
new norm overnight. Post Covid-19 many businesses will have to evaluate and notification and should not be construed as a formal
themselves and their workforce and possibly redesign professional/legal opinion. Although reasonable skill and care
is taken when providing information, EY offer no warranties or
In the last couple of months there has seen an their structures to be fit for purpose in the new normal. representations as to the information’s accuracy. The information
accelerated uptake of emergent technologies, Some roles and skills that will have been overtaken by provided is not intended to replace the need for an expert/ legal
opinion on interpretation, application and consequences of the
artificial intelligence and robotics, and a total embrace changes will have to be made redundant. It is the give relevant legal, technical or regulatory provisions. E Y does not
of virtual working, virtual teaming, virtual meetings, and take of change management. accept responsibility for any loss or damage you or any third
party may suffer as a result of utilising the information provided.
virtual onboarding, virtual learning, virtual wellness
6 ZIMBABWE INDEPENDENT BUSINESS DIGEST DECEMBER 11 TO 17, 2020

INTERVIEW

Govt must liberalise gold sector

WITH Zimbabwe coming under the and FPR to pay gold miners in US dollars at
spotlight for losing an estimated the world price (minus taxes and reason-
US$1,5 billion through gold smuggling, able administrative costs), and improve
dispute resolution in the mining sector.
senior reporter Tinashe Kairiza (TK) This implies Mnangagwa should set aside
this week spoke to the International any political-strategic interests, or, if he
Crisis Group (ICG) official Anouk does not have any, act to avoid any appear-
Rigterink (AR, pictured) who spoke ance of having such. For example, Mnan-
about the need to match gold producer gagwa was late to condemn gold-related
violence by armed gangs — the so-called
prices paid by Fidelity Printers and Mashurugwi — and late to propose action
Refiners with the prevailing prices on to tackle this violence. This has led opposi-
the international market. ICG recently tion MPs to call Mnangagwa the “Archbish-
published a report focusing on gold op of MaShurugwi” and to speculation that
smuggling titled Turmoil in the Gold the MaShurugwi are a pawn in a political
powerplay. Zanu PF officials deny this.
Sector. Below are excerpts of the Regardless of the truth of this case, arti-
interview: sanal and small-scale miners are numer-
ous in Zimbabwe, and thus an important
TK: From your principal findings, you constituency. Our report shows that, since
highlight what Mnangagwa's government artisanal miners have little standing un-
must do to curb illicit gold financial flows. der the law and are often unlicensed, they
Did this trend only start in 2017? are vulnerable to being manipulated in the
AR: Indeed, one of our recommenda- interest of politicians. This may take vari-
tions is that the Mnangagwa government ous forms: from artisanal miners beefing
curbs illicit gold flows by working with the up numbers at political rallies to artisanal
Reserve Bank of Zimbabwe (RBZ) and Fi- miners being encouraged to violently in-
delity Printers and Refiners (FPR) to pay vade industrial mining sites. Instead of run-
gold miners fully in US dollars, at the in- ning the risk of being manipulated, artisa-
ternational gold price minus taxes and rea- nal miners should be allowed to contribute
sonable administrative costs. to Zimbabwe’s economy and be given legal
Illicit financial gold flows are not new status.
to Zimbabwe or 2017, but illicit flows are TK: You highlight that Sibusiso Moyo is
larger when the gap between the official maneuvering to control the gold sector,
gold price miners receive from RBZ and law reflect this. Although there are a large share of all smuggling that takes place. how exactly is he doing this?
the world gold price is larger. The larger number of artisanal miners in Zimbabwe, TK: You single out Zanu PF as a force per- AR: Our report does not suggest this. We
this gap, the more can be earned by sell- our reading of the Mines and Minerals Act is petuating gold smuggling, how exactly is suggest Sibusiso Moyo might be a chal-
ing gold illicitly rather than through official that it does not recognise them as a separate the political party fueling gold smuggling? lenger to Mnangagwa for the role of Zanu
channels. class of miners, or make provisions for co- AR: As highlighted above, the main driv- PF leader in the 2023 elections.
We have seen this prior to 2017. For ex- operatives of artisanal miners to hold min- er of gold smuggling is the gap between TK: Your report focuses on three mines
ample, in 2004 the RBZ briefly brought gold ing licenses. the gold price FPR pays and the world gold namely Gaika, Jumbo and Giant. Why did
prices close to the world price, and an extra As part of our research, we spoke to sev- price. As the FPR gold price is set under the you limit the research to those mines?
nine tonnes of gold were sold through of- eral artisanal miners. This included arti- Zanu PF government, it perpetuates smug- AR: Our report focuses on Gaika, Jum-
ficial channels that year. We see the reverse sanal miners who mine without holding a gling in this sense. bo and Giant mine. We chose these three
happening in 2018 in Zimbabwe: the gap license, and artisanal miners who mined There are also media reports that im- mines because they have experienced dif-
between the FPR gold price and the world under a tribute arrangement in an area plicate individual Zanu PF politicians in ferent levels of violence around gold min-
gold price widens, the amount of gold sold covered by a license of an industrial mining smuggling, although such rumours are of- ing: Gaika and Jumbo have been hotspots
through official channels decreases, and il- company. The latter arrangement is allowed ten not investigated so cannot be verified. of violence at times, with large numbers of
licit gold exports increase. under the Mines and Minerals act, and one As the latest example, President Emmer- casualties, whereas Giant has not. We draw
With regard to illicit exports, we can get a of the prime ways for industrial and artisa- son Mnangagwa’s wife’s name has come lessons from this difference: what was dif-
sense of the scale of this by comparing the nal miners to work together. up in the investigation into the Rushwaya ferent at Giant that promoted less violence?
gap between official Zimbabwe exports of TK: South Africa features prominently case mentioned above, although she de- The three mines also illustrate different
gold to the UAE and official UAE imports of in your report as a preferred destination nies to have had any illegal dealings with drivers of turmoil in the Zimbabwe mining
gold from Zimbabwe. of smuggled gold, how much does Zimba- Rushwaya. sector.
In 2018, over US$200 million worth of bwe lose to South Africa through illicit gold TK: Is gold smuggling only limited to in- In short, Jumbo illustrates how inopera-
gold left Zimbabwe undeclared, but was flows? formal mining, are big corporates involved tive industrial mines in Zimbabwe can be-
declared by UAE. And this is just the tip of AR: Given existing infrastructure, a logi- in the crime, if so, how? come an attractive place for artisanal min-
the iceberg when it comes to undeclared cal smuggling route over land would be AR: The Deputy Minister of Mines (Fred ers to mine, contributing to a local patron-
gold exports from Zimbabwe. from Zimbabwe to South Africa, although Moyo) suggested in 2018 that large mining age economy and spike in violence. Gaika
This history is exactly why we recom- South Africa is not necessarily the final des- companies may be involved in gold smug- illustrates how manipulation of artisanal
mend that Mnangagwa’s government work tination of smuggled gold. It might be trans- gling. It is possible that large mining com- miners by local politicians can contribute
with RBZ and FPR to pay gold miners at the ported elsewhere via South Africa. Another panies under-declare their production, not to violence. Giant illustrates that it is pos-
international gold price (minus taxes and smuggling route is via air to Dubai, as il- sell their entire production volume to FPR, sible for artisanal miners to operate peace-
reasonable administrative costs). Experi- lustrated by the recent arrest of Henrietta and export the remainder through unof- fully and in accordance with the law, while
ence has taught that this can decrease illicit Rushwaya, who attempted to board a flight ficial channels. However, whether such cooperating with industrial mining compa-
gold exports and raise official gold deliver- to Dubai while carrying gold. Rushwaya de- under-declaring takes place, or the full ex- nies. However, political interference may
ies. This strategy will likely pay off, in the nies involvement in any illegal transactions. tent of such under-declaring has not been spoil such arrangements.
sense that it leads to more government gold Since smuggling is by definition illegal established. TK: Why do you think gold marketing
revenue overall. and unregistered, it is difficult to assess ex- TK: You highlight in your report that must be liberalised, considering the strate-
TK: You suggest that artisanal miners actly how much gold is smuggled. Some es- whoever “controls the gold will control and gic value of the mineral?
must be subjected to regulatory authority timates in the media of smuggling to South rule Zimbabwe”, how exactly is President AR: As highlighted above, Zimbabwe
to mine. As part of your research did you Africa range up to US$1,5 billion per year, Mnangagwa controlling the gold sector? can make more of this strategic mineral, in
try to identify these unregulated artisanal but we have no clear way to verify this. AR: We suggest that President Mnangag- terms of government revenue, if FPR pays
miners? As highlighted above, our own compari- wa and his government reform the min- gold miners commensurate with the world
AR: Our report suggests that artisanal son of official Zimbabwe exports of gold to ing sector, as it is one of the few ways they price. A gap between the FPR gold price
miners be given rights and obligations un- the UAE and official UAE imports of gold can make good on their promise to revive and the world gold price makes smuggling
der Zimbabwe law. Artisanal mining is a from Zimbabwe, suggests there was a gap Zimbabwe’s economy. This includes giving more lucrative, leading to increased smug-
non-violent way to make a living for many of over US$200 million between the two artisanal miners legal standing under the gling and loss of revenue for the Zimbabwe
Zimbabweans, and we suggest that the in 2018. We expect this to be only a small Mines and Minerals Act, working with RBZ state coffers.

Contact:
 Zimbabwe independent BUSINESS DIGEST December 11 TO 17, 2020 7

PROPERTY NEWS

An artist’s impression of the Pomona Gate

Real estate in turbulent environment

CHRISTINE CHIBAGE

REAL estate is property consisting of land

or building. Although most sectors were
ravaged by the effects of Covid-19, the
increase in property investment is set to
drive a surge in the real estate industry.
The pandemic struck and put a lot of
pressure on the property business as there
has been a decrease in sales due to several
challenges such as foreign currency short-
ages, high inflation rates and low dispos-
able and rental incomes.
However, despite all the challeng-
es faced, hopes of peaking and driving
economic growth through property in-
vestment sector are not far from being
achievable.
In the recent years Zimbabwe has ex-
perienced a housing backlog and property
development companies have often times
had to fill in the gaps and curb the backlog
through developing bulk infrastructure
services to facilitate development in the
country and come to correct terms with
what the country need in line with vision
2030.
West Prop Zimbabwe is working to-
wards Zimbabwe’s bright future in line
with the same vision 2030.
We are encouraging potential home-
owners to invest with us and start building
their dream homes.
In so doing their investment not only
affordably secures their future legacy but
also allows job creation and poverty alle-
viation which is at our hearts core whilst
putting them first as per our customer
centric vision.
At West Prop Zimbabwe, our primary
motivation in our multiple projects is de-
rived from the rapid population growth,
thus our sole purpose is to focus on how
to create a sustainable environment for
our communities by implementing estate
development techniques in the current
environment, creating career and busi-
ness opportunities and safe and affordable
houses.
As a company we are working towards
driving long-term project investments
into the market, focusing on innovative
construction technologies with a view to
consciously develop its projects in an en-
vironmentally sustainable manner for the
Zimbabwe tomorrow.
The shortages in houses in Zimbabwe
remain a major challenge and real estate
experts need to work closely with the
Government to achieve innovative fund-
ing, design, and construction models for
housing.
A major expansion of investment in
modern, clean, and efficient infrastructure
will be essential to attaining the growth
and sustainable development objectives
that the world is setting. West Prop is fo-
cusing on developing Zimbabwe environ-
mentally, consciously, and innovatively.
Projects underway at West Prop inter-
act with the environment to avoid deple-
tion of natural resources and these pro-
jects allow for long-term environmental
sustainability.

This article is sponsored by West Property Zim-

babwe.
8 Zimbabwe independent BUSINESS DIGEST December 11 to 17, 2020

DATA AS AT 10.12.20
ZSE INDICES TOP 5 RISERS WEEKLY TURNOVER
LEVEL W.O.W M.T.D Y.T.D COUNTER PRICE ZWL $c % Total $m
All Share index 1,948.23 16.69% 22.10% 746.76% BAT 40,775.0 17,175.00 73% CBZ
INNSCO
ZSE Top10 index 1,269.93 19.74% 26.84% 526.57% HIPPO 3,519.9 1,252.93 55% CSZL
R
27%
17%
ZSE Top15 index 1,499.94 19.81% 25.94% 631.75% ARTZDR 350.0 104.00 42% 12%

RioZim 1,076.1 303.46 39%

DELTA
Small Cap index 9,538.16 8.82% 18.53% 1407.22% CBZ 4,520.5 1,150.11 34% 21% ECONET
23%
Medium Cap index 3,847.56 8.82% 14.59% 1236.93%
ZSE Financials index 6,019.95 12.04% 16.37% 1311.25% TOP 5 FALLERS WEEKLY
ZSE Consumer Discretionary index 3,392.00 18.82% 17.14% 732.21% COUNTER PRICE ZWL $c % VOLUME
ZSE Consumers Staples index 2,046.40 18.82% 30.53% 792.26% ZIMPLOW 400.31 (87.69) -18% Total $m
ZSE Industrials Index (new) 2,683.92 10.96% 13.84% 523.11% BINDURA 302.27 (37.73) -11% OK
AXIA
ZSE ICT Index 1,561.85 19.98% 26.21% 280.80% ZHL 260.02 (22.48) -8% 11%
9%
CSZL
ZSE Materials Index 2,190.70 3.14% 5.29% 735.83% ZBFH 2,294.44 (105.11) -4% 31%
ZSE Real Estate Index 2,863.61 19.75% 0.72% 941.84% FMP 210.12 (7.92) -4% MEDTEC
- H
23%
ECONET
FOREIGN TRADING STATISTICS Value $m W.O.W FOREX MARKET LEVEL W.O.W 26%

Total Buys 0.31 -97% INTERBANK 81.86 0.0240%

Total Sales 5.05 27%
Net Foreign Buy -4.74
Regional Equities LEVEL W.O.W M.T.D Y.T.D
ZSE Weekly Commentary
ZSE ASI 1,948.23 16.69% 22.10% 746.76% After trading sideways at the beginning of the week, the stock market took a
LUSE 3855.85 2.07% 1.99% -9.58% defined path in the positive in the last 3 sessions of the week, resultantly driving
BSE 6883.24 0.18% 0.24% -8.16%
JSE 59282.77 1.72% 3.84% 3.85%
the benchmark indices up. By the end of the week, stocks were up 16.69% which
NSE 146.59 0.25% 0.96% -7.18% added momentum to prior week gains. Investors are slowly returning to risk
aversion on weakening exchange rate and emerging economic destabilisation. In
Commodities LEVEL W.O.W M.T.D Y.T.D the week under review, the Zimdollar pared by the widest margin in 7 weeks
Gold 1,833.25 -0.37% -1.75% 19.88% against the greenback, only to marginally recover in this week's auction by
Platinum 1,019.92 -0.30% 17.86% 5.88% 0.024%. The minister of finance, last week, however, hinted on increased demand
Nickel 16,647.00 4.39% 4.97% 19.33% for forex which may cause further and sharper depreciation to the currency over
Copper 3.57 2.44% 14.26% 26.74%
the next few weeks. The average exchange rate on the parallel market has since
Oil 47.13 4.55% 13.80% -22.92%
responded and is trading at an increased premium. Fuel availability has
diminished while some prices now reflect higher increases compared to the past
Currencies LEVEL W.O.W M.T.D Y.T.D
2 months. We expect stocks to close the year in gains, but the rate of
USD/ZAR 15.02 -1.48% -3.74% 7.35%
appreciation is likely to remain stable throughout the remainder of the year.
USD/CNY 6.54 0.06% -1.19% -6.02%
GBP/USD 1.33 -1.13% 0.70% 1.25%
USD/ZMK 21.04 0.13% 0.90% 49.63%
USD/NGN 380.50 -0.05% 0% 24.35%
 Zimbabwe independent BUSINESS DIGEST December 11 TO 17, 2020 9

COLUMN

Piggy’s Trading
& Investing Tips What is your biggest asset?
Batanai Matsika
particularly on the currency-front.
For example, the official exchange rate
ONE of the first steps in the financial plan- has moved from 1:1 against the US$1 to
ning process involves coming up with a I:81,8 on the official front. This movement
position of net worth, which involves list- alone suggests that market capitalisation
ing all assets against liabilities and com- has declined in US dollar terms.
ing up with a net position. While most Another phenomenon is that liquidity
people would consider amassing more constraints on the local market have led to
assets as the best strategy, a key question sessions of limited buying activity. Foreign
would be: “What is your biggest asset? Is it investors have also been exiting the market
your car, house, or some form of financial given a plethora of risks (political, foreign
investment?” exchange, consumer sentiment and repa-
Piggy maintains that your “future earn- triation risk).
ings capacity” is your biggest asset. In fact, Piggy notes that the ZSE market capitali-
this is the main reason why insurance is sation has average US$3,8 billion over the
important. You cannot leave this asset past eight years since 2010. This implies
uninsured against injuries, sickness and that the market has halved to US$1,9 bil-
disability. lion. In other words, this suggests a perfect
Managing your finances tightly and to buy into distressed companies, special
starting to save is all very well but what situations, and under-priced stocks.
happens if your biggest asset (i.e. you and Piggy recently attended a National
your ability to earn an income) is put out of Budget Breakfast Forum that was meant to
action? There are risks involved in today’s discuss implications of the 2021 National
lifestyle and it is critically important that Budget. From the forum, Piggy noted that
you analyse your individual circumstances the monetary authorities were upbeat that
and risks and get protection against the the new currency reforms would bring
very real possibility of you not being able about a level of stability. Here are some
to generate an income. of the expected outcomes that were high-
There is a fine balance in ensuring you lighted by the officials;
do not have too much cover or too much of
the incorrect product and then also having
• More foreign currency is expected to be
sold through formal banking channels;
some money over to keep a savings plan on
track. In the same way that most individu-
• A reduction in the trade of foreign cur-
rency on the parallel market given that
als self-diagnose and self-medicate, there there is a stronger demand for local
is need to carry out a regular assessment of currency;
your risks and protection.
Piggy recommends individuals and
• Improved monetary policy effective-
ness; and
households to do the following:
• Secure or protect income and any future
• A restoration of confidence as new poli-
cies yields positive results.
earnings; Of course, there are still lots of uncer-
• Create a freedom or emergency fund;
and
tainties in the broader political and eco-
nomic environment in Zimbabwe. As a
• Start saving for retirement as early as
possible.
result, Piggy maintains a strong view that
the stock market offers a feasible option to
Piggy notes that Zimbabwe Stock Ex- hedge against value destruction.
change (ZSE)-Direct and C-Trade pro- Stocks on the ZSE are looking cheap,
vide a perfect platform to create a per- especially after the movement in the ex-
sonal Freedom or Emergency Fund that change rate. Timing is everything on the
can cover households and individuals on stock market and now could be the best
unplanned spending such as medical and time to buy.
dental emergencies, car repairs and insur- In his book Stock Market Intelligence, Invest-
ance excesses. ing Made Easy, Jeff Luke proposes the PALMS
Filtering System as a technique for stock
Case study: Successful retail investor picking.
One of the most interesting stories when it According to Luke, investors should an-
comes to investing as a retail player on the swer the following questions before buying
ZSE relates to the case study of Roy Turner. a stock:
He died in 2019 at the age 86 and was an
astute investor on the local market who
•
•
Profitable: Is the company profitable?
Adaptable: Is the company adapting to
held a significant portfolio on the ZSE giv- changing technology?
en that he appeared on many top 20 share-
holder lists for ZSE companies.
• Loyal Customers: Are customers devoted
to the company’s brand?
Some of his holdings were in Mashold-
ings, Masimba Holdings, Proplastics and
• Moat: Does the company possess a dura-
ble competitive advantage?
African Sun. We note that in September
2005, SCAIFLOW Investments (Turner’s
• Sensible Price: Is the stock selling at a
price that makes sense?
company) became one of the leading in- The PALMS technique is useful for iden-
vestment vehicles on the ZSE, spreading its tifying good stocks to buy. Remember the
interests across 24 listed companies out of key is buying low and selling hHigh. On the
the 80 counters. ZSE, Piggy likes companies with regional
While Roy Turner was very conserva- operations that are well managed or are
tive, never married and used a bicycle as net exporters as they provide value pres-
his mode of transport, a lot of ideas can be ervation opportunities to investors with a
learnt from him regarding investing on the long-term perspective.
stock market. Some folks have cited that Overall, one of the most powerful tools
it is difficult to start investing given the that can be used to enhance your ability to
minimum investment thresholds that have create future earnings is an investment in
been set by local brokerage firms. How- financial education.
ever, both C-Trade and ZSE-Direct en- An investment in financial knowledge
able one to start with as little at ZW$1 000 enhances your capacity to create earnings.
(US$12,22). This also enables one to employ consistent
and bankable investment strategies on the
The time is stock o’clock market.
Piggy has been consistent in his commen-
taries that the stock market in Zimbabwe Matsika is the head of research at Morgan
has been looking cheap for some time. It is & Co and founder of piggybankadvisor.com.
worth noting that there has been a signifi- — [email protected]/ batanai@pig-
cant change in economic fundamentals, gybankadvisor.com or +263 783 584 745.
10 Zimbabwe independent BUSINESS DIGEST december 11 to 17, 2020

Profit-linked productivity
measurement: Case study
ing data (quantities or prices) for some terised by a massive price over recov-
resources or inconsistencies within the ery and huge productivity losses.
data submitted.
Most of the information used in this
• There was a slight decrease in rev-
enue generated by the organisation, a
analysis was extracted from the organi- decrease in costs and a slight increase
sation’s management accounts. in gross profit during the two peri-
ods under review. The profits realised
Key findings
We encourage organisations to record resource usage and acquisition in terms of the actual by the organisation were as a result
quantities consumed, the price of each item as well as the total cost of the resources. • financial
We established that the organisation’s
position was not stable in the
of price recovery which implies that
the organisation leveraged on price
tion’s resources and products in their long run and the profits realised are not movements.
•
Memory Nguwi
rightful quantities, prices and values. The sustainable in the long run. The over- The organisation was inefficient in re-
l Continued from last week data collection process took five times as all change in profitability between the source usage as pointed out by produc-
We collected data on all the organisa- much as anticipated times due to miss- two periods under review was charac- tivity losses in all the major resource
categories i.e. labour, capital, energy.
The organisation’s services rendered
between the two periods declined at
a rate faster than that of resource vol-

VACANCY
umes resulting in productivity losses.
• Product prices increased at a rate faster
than that of resource prices resulting in
a price over-recovery thereby short-
changing the consumer and passing all
the value to the shareholders.
• Productivity measurement for the
company’s labour was done using job
grades (employment categories). We
established that productivity losses
were relatively significant for low-
level employees.
Our recommendations
• and
Productivity levels were very low
the profit realised was due to high
price over recovery. From a pricing
perspective, this is an uncompetitive
position as high product margins are
likely to invite competition or prompt
consumers to seek cheaper alterna-
tives. Organisations in this position are
encouraged to reduce prices slightly
so that they strengthen their competi-
tive position which in turn increases
their market share and pushes more
Applications are invited from willing and experienced real estate Development Management volumes.
Companies (DMC) to deliver a turnkey mixed-use property development project. • From a managerial perspective, it is
sensible to target productivity gains
for resources that are experiencing
The ideal candidate shall be required to plan and manage all aspects during the property development productivity losses. We recommend
lifecycle and to use their skills to do research, design and implement solutions on the project. that less of these resources be used but
in the case where quantities cannot be
This includes, strategic planning, coordination between the technical, marketing and financial reduced, cheaper alternatives should
management areas of the project. The DMC shall also be expected to assist in determining the built be sourced or negotiate for price cuts
from suppliers.
scope based on the site, its attributes, the market, the customers and advise on potential financing
options.
• Since labour had the highest produc-
tivity losses for this organisation, we
recommended that an in-depth analy-
sis be carried out to determine wheth-
In their application, the DMC will have to adequately address or demonstrate their abilities on the er these productivity losses were as a
result of incorrect staffing levels or as
following: a result of skills deficits.

1. Prove their experience in the technical delivery of commercial property projects.

• Total factor productivity measurement
is not a very popular model since or-
ganisations that use these models keep
2. Undertake project initiation and brief with a view to assessing the viability of current plans and to them as proprietary information. As
propose changes if necessary. such, productivity measurement ex-
ercises are normally ridden with the
3. Regional and/or international experience in delivering retail sector projects. unavailability of the required data.
4. Traceable references in the management of similar projects. Inconsistencies within collected data
that also pose a challenge for accu-
5. Proposed remuneration structure. For pre-qualification purposes, applications (six copies) are rate data analysis. We encourage or-
also to be accompanied by a comprehensive company profile and are to be addressed and hand ganisations to record resource usage
delivered to: and acquisition in terms of the actual
quantities consumed, the price of each
item as well as the total cost of the
The Chairman resources.
REF: CHISIPITE DMC • Productivity Measurement and Anal-
ysis should be done regularly so that
National Railways of Zimbabwe Contributory Pension Fund the organisation can be able to track
its efficiencies and work on any issues
No. 113 Mezzanine Floor raised before it’s too late, hence being
Parkade Centre proactive rather than reactive.
Fife Street & 9th Avenue Nguwi is an occupational psychologist, data
Bulawayo scientist, speaker and managing consultant
at Industrial Psychology Consultants (Pvt)
Ltd, a management and HR consulting firm.
By 1200hrs (CAT) on 15 January 2021. https://www.linkedin.com/in/memorynguwi/
Phone +263 24 248 1 946-48/ 2290 0276,
cell number +263 772 356 361 or e-mail:
[email protected] or visit ipcco-
nsultants.com.
 ZIMBABWE INDEPENDENT BUSINESS DIGEST DECEMBER 11 TO 17, 2020 11

NEW HORIZON

Tariro
Chivige
ECONOMIST
Mining sector: Analysis of
THE recently announced 2021 National
Budget statement calls for enhanced rev-
enue collection through taxes, including
the 2021 National Budget
customs duty and the 2% intermediary
money transfer tax (IMTT).
This will be achieved through improved
production and performance of key mac-
roeconomic sectors.
This budget comes after the presenta-
tion of the National Development Strategy
1 (NDS1) covering the period 2021-2025,
which is part of the blueprints expected
to lead Zimbabwe into a middle-income
country by 2020.
Zimbabwe is an agro-based economy
but it also seems to be banking on the min-
ing sector for improved economic growth.
Zimbabwe is endowed with immense
natural resources in the form of minerals
which are contributing to the national out-
put through mining activities.
However, as noted in the 2021 Budget
Strategy Paper, the country has not been
deriving the optimal returns from mining
activities to significantly change the lives
of Zimbabweans.
It is worth noting that, this sector con-
tributes about 60% of the country’s export
earnings, about 8% of the gross domestic
product (GDP) and also acts as a source
of employment for an estimated half a
million artisanal gold small-scale miners
(ASGM) spread across the country.
Recognising the potential of the min-
ing sector to transform the economy, the
government unveiled an ambitious policy
document outlining how the country plans
to turn the mining sector into a US$12 bil-
lion industry by 2023.
Just like any other sector of the econo- Zimbabwe’s mining sector was greatly affected by negative economic shocks caused by Covid-19.
my, the mining sector was greatly affect-
ed by negative economic shocks mainly
caused by the Covid-19 pandemic through
reduced investment flows, lost produc-
tion hours as well as broken supply chains
among others.
Regardless of these setbacks, there were
certain positives accrued to the sector. The
US$4,2 billion Great Dyke Investments
Platinum Mine is now under construction.
It is also encouraging to note that new
coal mines have been opened and the Overall mining growth trend. — Source: Author’s computations (*estimate)
US$25 million Invictus Energy Oil and Gas
Project in Muzarabani is expected to start the past, but it is still puzzling as to why the l  Capitalisation of the Mining Industry sector. The benefit of this is that those in
drilling in October 2021. industry has not yet achieved the desired Loan Fund through supporting small-scale the mining industry can now benefit from
These positives if maintained have the value chain status. miners; the rebate of duty on goods for incorpora-
potential of greatly turning around the Though most commodity prices except l  Mining Cadastre System: its creation tion in the construction of approved pro-
mining industry, as well as hugely impact- that of gold have fallen amid weaker global brings about the much-needed transpar- jects which will greatly reduce the capital
ing other related sectors such as the energy demand caused by the Covid-19 pandem- ency in the mining sector, as well as rid- costs of setting up mineral production sites.
sector. It is prudent to note that despite the ic, exports in the country increased by 11% ding the sector of corruption; All in all, these rebate concessions are
unfavourable economic challenges expe- from ZW$3,2 billion (US$39,1 million) in l  Undertaking exploration activities to pivotal in ensuring the attractiveness of in-
rienced in the Zimbabwean economy, the 2019 to ZW$3,5 billion (US$42,7 million) discover new mineral resources as well as vestors into the sector.
mining sector is making strides in achiev- in 2020 in the first nine months of 2020 ascertaining the quantum of mineral re- However, there is still a need for massive
ing some of its set targets. and these exports were largely driven by serves in the country; education regarding these concessions.
Despite the challenges that have been gains in platinum group metal exports. l  Mines Legislative Agenda: Government Small players in the industry do not have
faced in the economy, the mining industry Further, expected improvement in the is prioritising the completion of amending the necessary knowledge about how these
is expected to perform better in 2020 and availability of power supply and foreign the Mines and Minerals Act to align it with concessions can benefit them and also how
also in the coming years as compared to currency is expected to propel produc- international best practice; they can benefit from them. There is need,
the 2019 performance. tion and capacity utilisation from the cur- l  Resuscitation of old mines; however, to commend the government for
The base minerals (chrome ore and fer- rent 61% to about 80% in 2021. This then l  Promotion of mine health and safety to ensuring that capital and operational costs
rochrome) were the most affected in terms means that the government needs to put in reduce the number of mining accidents; are contained for investors.
of both output and price compression. As place measures that promote exports and l  Improvement of the higher education Granting rebate concessions means that
a result, the sector ameliorated contraction value addition in the mineral sector in line infrastructure development supported by the state will be forgoing customs duties
to only -4,7% in 2020. with the National Reindustrialisation Poli- the construction of the Pan-African Min- for certain goods that will be imported into
The table in table in this article shows the cy, Sadc Protocol on Mining and the Africa ing University of Science and Technology- the country. There is a need then to assess
trend in the overall mining growth rate. Mining Vision. Teaching Centre; and whether the sectors afforded these conces-
These projected growths are expected to Measures such as the reduction of pay- l  Retrospectively reviewing of the tax rate sions end up contributing significantly to
greatly contribute to the anticipated eco- ment time for gold deliveries will go a long on income accruing from mining opera- national development and the attainment
nomic growth and drive the nation’s agen- way in promoting exports and also in pro- tions from the current 25% to 24% with ef- of the much-needed foreign currency.
da of creating at least 150 000 jobs in 2021. moting proper declaration of the quantities fect from January 1, 2021. Most of the steps outlined above have
This will also be supported by the re- of gold as miners will now have incentives In recent years in a bid to try and attract been on the to-do list of the government
suscitation of Ziscosteel and some closed to declare their gold the proper way. both local and international investors, the for quite a number of years now. If these
mines such as the Shabanie mine, which The closing of the loopholes that enable government rolled out a number of rebate circumstances make the ordinary citizen
the government is expecting to resuscitate the illegal externalisation of gold can also concessions that sought to cushion inves- question whether or not such goals can be
in 2021. From the statement, the govern- act as a strong way of improving exports tors in the industry. achieved, what then of an investor who is
ment highlights ways in which the mining as gold leakages still remain very high and The existing rebate concessions that ap- expected to inject his money.
industry is set to be improved and if these this can be achieved by strengthening the ply to the mining sector are: As the government also alluded to, the
are followed to the dot in a timely manner Gold Mobilisation and Surveillance Com- l  Rebate of duty on goods for the mining mining projections contained in the na-
then improvements in the sector can start mittee, as well as the Minerals and Border industry; tional budget statement are prone to sev-
to be noticed. Control Unit so as to enable them to exe- l  Rebate of duty on goods for the pros- eral economic risks and challenges which
The restoration of synergies among cer- cute their mandate. pecting and search for mineral deposits; may make the attainment of such pro-
tain sectors via the strengthening of value The following are some of the steps that l  Rebate of duty on goods imported in jections quite difficult and as such there
chains that uses local raw materials is one are going to be taken by the government to terms of an agreement entered into pursu- should be proper structures in place which
way the government seeks to develop and increase and achieve desired growth: ant to a special mining lease; and will enable the absorption of these risk
support the productive value chains. l  Capacitation of the Ministry of Mines l  Suspension of duty on goods imported shocks in order to facilitate the attainment
The issue of strengthening the value and Mineral Development for planning, for specific mine development operations. of the set goals.
chain in the mining sector has been talked promotion of exploration, data capturing, In addition to these, the approved pro-
about in almost every budget statement in and automation etc; ject status was also extended to the mining Chivige is a Harare-based economist.
12 ZIMBABWE INDEPENDENT BUSINESS DIGEST DECEMBER DECEMBER 11 TO 17, 2020

COLUMN

Robert Mandeya
Talent identification
vital in organisations
PEOPLE
MANAGEMENT ISSUES

JUST recently at a function I was chair-

ing at a local hotel, a young man from of a company usually does not have time the organisation which delivers the num-
one of the participating organisations, ap- for much else other than the bigger picture bers. If you have the right set of people,
proached me at tea break and asked, “Mko- and the bottom lines. Numbers and figures adequately motivated and under a man-
ma (brother), our directors have asked us conversions, revenues, turnovers, profits, ager whose leadership skills can effective-
to come up with some ideas that would etc are of paramount importance to every ly channel the collective energies of the
promote workplace interactivity and crea- business organisation; indeed, the very group, the numbers will happen. Which
tive thinking.” reason for its existence. Indeed no business brings me to the operative phrase in this
The young man asked if I could come up entity can survive if the required numbers, scenario: “the right set of people.”
with a proposal for that programme, which especially profits and revenue, are not up Even exceptional leadership qualities
can be initiated at their organisation. It got to the mark. would go down the drain without a team
me thinking that the directors at this com- Thus, in this maze of business demands, with specific talents that complement each
pany wanted a programme that would help leaders often lose sight of the bigger pic- other. That does not mean that leadership
them identify and nurture talent amongst ture and miss out on some important in- and the talent being managed are inde-
some of their young workforce — what a tervention strategies that would help them pendent of each other or that any leader
brilliant idea! grow their business and even double their Leadership in identifying talent has to make do with the talent he sees in
Many a time the top echelon leadership profits. It is no secret it is the human element of a given team. To the contrary, spotting
and managing talent effectively are two
abilities that a good leader must have in his
skill-set.
As your role in a given organisation
grows to a point where you lead a team,
there is a certain shift in focus. When we
talk of being in charge of a group, we have
already established that they have a com-
INSTITUTE OF CORPORATE DIRECTORS ZIMBABWE mon objective that somehow is a vital part
Better Corporate Directors, Better Boards, Better Business of the larger picture of what the organisa-
tion does. Your team has a collective target
nd
to meet, which means that all individuals
must do their bit, while you ensure that
KEYNOTE SPEAKER GUEST SPEAKERS everything flows smoothly.
Human side to business leadership

DIRECTORS Effectively, your target is to ensure that the

right persons get assigned to the right tasks
such that the needful is done most effec-
tively in the least possible time. Getting

2020
the right talent is only half the job: people
are not equipment. They must be nurtured
and groomed to perform and grow in their
Herbert Nkala Dr. Debra Brown - Dr. Ashraf Gamal El Din roles for the organisation so they may per-
ICDZ- Board Chairperson of the Dmin, MDiv, Pro.Dir. Chief Executive Officer
President & CEO Institute for Corporate
form to the fullest potential of their talents.
Year - 2019,
Group Chairman Governance Solutions and Governance You, the leader, must get to know every
Professional Director, (Dubai)
FBC Holdings Limited Canada
team member as far as possible and try to
(Zimbabwe) gauge what makes each one tick.
16 December @ Rainbow Towers Hotel, Harare
You do not want your best team mem-
bers coming down with a bad case of work-
place blues just due to lack of motivation.
Good leaders are also a great talent master
“Honoring Leadership Excellence in Challenging Times - COVID 19 ” because they can determine a person’s
abilities more precisely simply because
CATEGORIES they are great at observing and listening.
Once they institutionalise these skills, they
help shape an organisational doctrine that
1. Board Chairperson of the Year Overall 10. Innovative / Turnaround Strategist Corporate translates into good employee practices,
Director of the Year enriching the company culture.
2. Board Chairperson of the Year -Large & Listed Going further up, developing talent is a
Companies 11. Equality, Diversity & Inclusion- Corporate Director continuous process for the organisation at
of the Year large, and this process must be a part of the
3. Board Chairperson of the Year- Public Enterprises / organisational culture; this has to be be-
Parastatals 12. Social Value and Sustainability Impact- lieved and made a priority from top down,
Corporate Director of the Year starting right from the CEO.
4. Board Chairperson of the Year Tertiary Institutions It is not just about short-term goals. Any
13. Non Prot Marking Organisation -Corporate business organisation that is looking at
5. Board Chairperson of the Year-SMEs
Director of the Year the future must also plan to get the people
6. Most Innovative Board of the Year with the talent to get it there. Talent mas-
14. Young Corporate Director of the Year- aged 40 ters spend at least a quarter of their time
7. Board Secretary / Company Secretary Of the Year: and below years spotting and grooming leadership potential
Ÿ Large & Listed Companies in others; it is closer to 40% in fortune 500
15. CEO/ MD / GM/ COO of the Year companies.
Ÿ Parastatals
Ÿ Large & Listed Companies
There are some guiding principles that
leadership can follow in order to effectively
8. Women Corporate Director of the Year Ÿ Parastatals
and successfully implement a talent iden-
Ÿ Urban Councils & Rural District Council tification and management programme in
9. Family Business Corporate Director of the Year their organisations.
16. Special Lifetime Achievement Award We are in difficult times right now, but
teams that possess that magical something
Endorsed & Supported by the: will survive the trial. They will emerge
stronger than they were before.
-Canada -Canada What will your team do in this econo-
my? Will you play not to lose? Will you let
events dictate what happens to you? Will
you sit back? Will panic set in? Or will you
look each other confidently in the eye, take
control, count on your leaders, work hard
together, trust each other, and snatch vic-
The awards covers activities for the period of 1 October 2019 - 1 October 2020. tory from the jaws of defeat? This decision
cannot be postponed.
For More Information Contact Gracious or Marshall Ofcial Media Partners
Mandeya is a certified executive leadership
coach, corporate education trainer and man-
Tel: +263 242 443124 Cell : +263 773237914/ +263 772 812 678 agement consultant and founder of Leadership
Email: [email protected] Institute of Research and Development (LiRD).
— [email protected]/ or [email protected], Face-
book: @lirdzim and Mobile/WhatsApp: +263 719
466 925..
 Zimbabwe independent BUSINESS DIGEST deceMBER 11 TO 17, 2020 13

FOREIGN NEWS

Back to better, not normal

Rabah Arezki/Adeleke Salami turned to international financial institutions
(IFIs), including the African Development
AFRICAN researchers meeting this week Bank, as lenders of last resort. IFI credit has
must devise ways the continent’s economy supported health financing and sustained
can do even better than before the coronavi- livelihoods during the pandemic.
rus pandemic hit. Looking ahead, these partners must con-
Since the World Health Organisation de- tinue to work creatively with African gov-
clared Covid-19 a global pandemic in March ernments, particularly the most fragile states,
2020, countries, societies, and individuals to find ways to revive economic growth and
have struggled to respond to the pandemic’s lessen debt burdens on development.
devastation of health systems, economies, During the 2020 African Economic Con-
trade, and human wellbeing. While Africa ference we look forward to discussing with
has been spared the pandemic’s harshest The economic crisis caused by the pandemic has demonstrated the need to rethink Africa’s researchers and policymakers those innova-
health impacts, it has absorbed a heavy eco- development model. tive solutions and ideas that will bring Africa
nomic burden. back even better than before.
The economic crisis caused by the pan- lutions are also on the horizon, touching on veloped economies have been able to pour
demic has demonstrated the need to rethink the green economy, digital disruption, and resources into fiscal stimulus packages to Dr Arezki is African Development Back chief
Africa’s development model, as the world social contracts. mitigate the health and economic impacts of economist and vice-president, economic gov-
contemplates emerging from the pandemic Even prior to the pandemic, many African the crisis while African countries have not. ernance and knowledge management, and Dr
and aims to build back economies quickly countries were fiscally constrained and car- Given their tight budgetary constraints Salami is AfDB principal macro-economist, mac-
following the current shock — and ensure rying high debt burdens, with public debt- and limited access to finance from for- ro-economic policy, forecasting and research
resilience against future ones. to-GDP ratios of over 60%. As a result, de- eign markets, many African countries have department.
Africa must do more than get back to nor-
mal: it must build back even better, an idea
captured in the theme of Africa Economic
Conference 2020, Africa beyond Covid-19:
Acceleration towards inclusive and sustain-
able development.
The conference, held on December 8-10
and jointly organised by the United Nations
Economic Commission for Africa, the Af-
rican Development Bank and the United
Nations Development Programme, pro-
vided a platform for established and up-
and-coming academics to present solu-
tion-oriented research to policymakers and
decision-makers.
(Participants discussed strategies to fast
track economic transformation, including
export diversification, digital innovation,
and investment in health, water, energy,
transport, information, and communica-
tions infrastructure).
Before the onset of the pandemic, Africa
enjoyed robust and rising economic growth:
3,4% in 2019 and a projected 3,9% in 2020.
Now, the Bank anticipates recession: Af-
rica’s growth is forecast to decline by more
than 3%, costing Africa up to US$237 billion
through 2021.
However, there is variation among Afri-
can countries. Most resource-intensive and
tourism-dependent economies are expected
to experience a drop in growth, while non-
resource-intensive economies will likely re-
main steady. This divergence offers a hint as
to the way forward after the pandemic: Afri-
ca must diversify its trade exports away from
natural resources and commodities, which
are vulnerable to price fluctuations, and to-
ward value-added and processed products,
and also diversify its trading partners to
enhance resilience against demand shocks
from commodity importing countries.
To this end, the African Continental Free
Trade Area Agreement (AfCFTA) has begun
reducing trade barriers between African
countries and helped increase the value of
intracontinental trade. To fulfil the goals of
the AfCFTA, African countries should imple-
ment export-friendly policies and strategies,
as well as find new opportunities for diver-
sification, industrialisation, and value-chain
development that will make trade more in-
clusive. The private sector and development
partners have roles to play too.
A key vulnerability of African economies
is the dominance of their informal sectors
which, pre-pandemic, accounted for 67%
of economic output in North Africa and 89%
in sub-Saharan Africa. As most informal
jobs cannot be performed from home and
do not provide social safety nets, lockdowns
have driven poverty and inequality sharply
higher.
A critical part of the recovery will be to
figure out how policymakers, the private
sector, and development partners can help
formalise informal businesses and make the
sector more resilient to future shocks.
As we focus on Africa’s post-pandemic
recovery, progress toward the United Na-
tions Sustainable Development Goals and
the African Union’s Agenda 2063 must be
guiding stars. Potential tools to achieve this
should include: innovative financing for re-
covery and initiatives to manage emerging
risk; putting in place social safety nets and
other measures aimed at the most vulner-
able; and partnerships to galvanise public
and private investments. Other creative so-
14 ZIMBABWE INDEPENDENT BUSINESS DIGEST DECEMBER DECEMBER 11 TO 17, 2020

ABRIDGED REVIEWED

Starafrica/036721
FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020

Page 1 / 3
SALIENT FEATURES FOR THE SIX MONTHS PERIOD INTERIM ABRIDGED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
for the six months ended 30 September 2020
INFLATION ADJUSTED HISTORICAL INFLATION ADJUSTED HISTORICAL
REVIEWED RESTATED UNREVIEWED UNREVIEWED
Revenue 24%↑ 915%↑ Period ended Period ended Notes Period ended Period ended
30 Sep 2020 30 Sep 2019 30 Sep 2020 30 Sep 2019
EBITDA 34%↑ 1018%↑ ZWL$ ZWL$ ZWL$ ZWL$

Profit/(Loss) for the year (53,758,699) 153,265,735 245,104,530 12,444,775

↑
Other comprehensive income (net of tax) 238,775,830 609,886,417 546,949,419 123,807,345
CHAIRMAN’S STATEMENT Exchange differences on translating foreign operations 142,869,422 193,280,625 142,869,422 25,451,656
Revaluation of property, plant and equipment net of tax 95,906,408 416,605,792 404,079,997 98,355,689
OVERVIEW
I am pleased to present the results for the half year ended 30 September 2020, which are in Zimbabwean Dollars. Total comprehensive income for the period 185,017,131 763,152,152 792,053,949 136,252,120

The period under review presented both challenges and opportunities for the business. The operating environment was negatively affected by the advent of Covid-19 Total comprehensive income for the period attributable to:
which has affected the conduct of business and way of social living. While the company was able to operate during the Covid-19 induced national lockdown, being an Non controlling interest 4,876,257 - 20,925,038 -
essential service, it was not spared the adverse impact of the pandemic which cost it significant production time as it handled a pandemic related incident in July 2020. Equity holders of the parent 180,140,874 763,152,152 771,128,911 136,252,120
Coupled with the destruction of the raw sugar warehouse by fire in the sugar refining plant, this cost the company a month’s lost production. A combination of stringent 185,017,131 763,152,152 792,053,949 136,252,120
cost containment and prudent product mix models, however, enabled the company to mitigate the adverse impact of these challenges on its operations and preserve
its Balance Sheet. The period under review also saw the company continue to develop sugar export markets in the region. The introduction of the Reserve Bank of
Zimbabwe (RBZ) foreign exchange auction rate was a welcome development which has seen the rate stabilising at around ZWL81.7:USD1. This is expected to impact INTERIM ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
positively on operating costs going forward. As at 30 September 2020

GROUP RESULTS INFLATION ADJUSTED HISTORICAL

The financial results of the Group have been Inflation Adjusted in compliance with the requirements of IAS 29 and the historical numbers have been disclosed as REVIEWED RESTATED UNREVIEWED UNREVIEWED
supplementary information. Total turnover increased by 24% to ZWL$1.875 billion compared with ZWL$1.508 billion realised in the prior year comparative period. As at As at As at As at
Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 34% to ZWL$318 million relative to ZWL$238 million that was achieved last year as a 30 Sep 2020 31 Mar 2020 Notes 30 Sep 2020 31 Mar 2020
result of cost management strategies. The profitable performance was mainly hampered by foreign exchange losses and finance costs on foreign borrowings following ZWL$ ZWL$ ZWL$ ZWL$
the introduction of the RBZ foreign exchange auction system. As a result, the Group incurred a loss after tax of ZWL$ 54 million.
ASSETS
In historical terms, revenue increased by 915% to ZWL$1.341 billion from ZWL$132 million recorded in the prior year comparative period, while EBITDA increased by
1018% to ZWL$216 million from ZWL$19 million. Non current assets 1,647,249,703 1,437,682,928 1,434,109,586 459,686,251
Property, plant and equipment 981,590,538 874,145,770 7 768,450,421 252,592,746
The Group’s net working capital increased to ZWL$391 million from ZWL$138 million. Investment property 512,782,551 428,045,928 4 512,782,551 157,302,017
Investment in associate 152,876,613 135,491,230 152,876,614 49,791,488
OPERATIONS
Current assets 846,241,960 755,512,457 823,437,340 260,488,810
Goldstar Sugars Harare (GSSH)
GSSH sold 26 959 tonnes against 30 469 tonnes sold in the comparative period last year. The 11.5% decrease in sales volumes was attributable to Covid - 19 related Total assets 2,493,491,663 2,193,195,385 2,257,546,926 720,175,061
challenges, associated transport restrictions, maintenance shutdown in August 2020 and disruptions to the operations due to a fire that destroyed the raw sugar
warehouse. The rehabilitation of the burnt warehouse is in progress and is projected to be complete within six months. Alternative arrangements have been put in EQUITY AND LIABILITIES
place to ensure adequate feed stock (raw sugar) to the plant. Power supply to the plant was stable due to an improvement in hydro power generation at Kariba Dam,
as the water level increased. Water supply to the plant was adversely affected by supply side constraints from City of Harare. Water storage tanks were installed and Equity 1,266,957,899 1,061,661,107 1,133,861,950 321,009,682
an alternative supply source was put in place in an effort to secure water supply to the factory, into the future. Two new centrifugal machines were installed, one in the Attributable to equity holders of the parent 1,026,908,211 874,818,828 1,032,070,969 288,971,055
Affination Station and the other in the Secondary Plant with a view to boosting production capacity and improving manufacturing efficiencies. Equity component of compound financial instruments 185,581,403 137,250,251 70,395,260 21,567,944
Non controlling interest 54,468,285 49,592,028 31,395,721 10,470,683
The plant continued to be certified by The Coca Cola Company (“TCCC”) as well as Food Safety certification under the FSSC 22000 series. The certifications enable the
Group to supply products to TCCC franchisees in the Southern Africa region and beyond. Non current liabilities 770,808,338 513,657,830 667,959,551 172,102,802
Loans and borrowings 491,406,227 300,236,166 8 491,406,227 110,333,381
Country Choice Foods (CCF) Deferred tax liability 279,402,111 213,421,664 176,553,324 61,769,421
CCF products continued to dominate the market. Volumes, however, were down by 11% due to low disposable incomes and depressed business activity experienced by
this operational unit’s major industrial customers. Current liabilities 455,725,426 617,876,448 455,725,425 227,062,577
Loans and borowings 51,436,289 152,667,548 8 51,436,289 56,103,590
Properties Business Trade and other payables 404,289,137 465,208,900 404,289,136 170,958,987
This business recorded a 53% increase in turnover from ZW$5.3 million recorded in prior half year to ZWL$ 8.2 million. The increase came as a result of an improved
occupancy level. Total liabilities 1,226,533,764 1,131,534,278 1,123,684,976 399,165,379

Tongaat Hulett Botswana Total equity and liabilities 2,493,491,663 2,193,195,385 2,257,546,926 720,175,061
THB continued to be the major player in the Botswana sugar market. The associate recorded a profit after tax of ZWL$ 99.95 million, of which the company’s share was
ZWL$ 33.32 million after converting the earnings into Zimbabwean Dollars at the RBZ auction exchange rate prevailing on 30 September 2020.

SCHEME OF ARRANGEMENT
The Scheme of arrangement, whose tenure expires in 2022, remains in place with 97.95% of creditors having been settled. Post the reporting period, discussions
INTERIM ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
between the company and foreign scheme creditors regarding settlement of the outstanding amounts had reached a stage which may result in the debts being
for the six months ended 30 September 2020
extinguished by 31 March 2021. Shareholders will be advised of the outcome thereof in due course.

Equity Equity
DIVIDEND
holders component of Non controlling Total
In light of the company’s existing Scheme related obligations, the uncertainties prevailing in the current economic environment and the desire to ensure adequate
of the parent compound interest
working capital is maintained the Board has deemed it fit not to declare a dividend for the six months ended 30 September 2020.
financial
instruments
OUTLOOK
INFLATION ADJUSTED ZWL$ ZWL$ ZWL$ ZWL$
The Board remains confident that the company will catch up on lost production and achieve its set production and sales targets by the end of the financial year. The
profitable trajectory will continue on the strength of increased production and improved efficiencies. The RBZ interbank foreign exchange auction rate is expected
to remain stable as long as foreign currency continues to be made available for the auction. This, in turn, is expected to impact positively on prices of goods and
Balance as at 31 March 2020 (RESTATED) 874,818,828 137,250,251 49,592,028 1,061,661,107
services. The company continues to monitor the Covid -19 situation in the country, where a second wave appears to be developing. The business remains hopeful that
the efforts and measures being pursued internally and by our Government and the world at large will mitigate the impact of this pandemic. On its part, the company
Total comprehensive income 180,140,874 - 4,876,257 185,017,131
continues to observe and implement the recommendations by the World Health Organisation (WHO) and the Ministry of Health and Child Care. For the ensuing six
Profit for the period (58,634,956) - 4,876,257 (53,758,699)
months and beyond, the company will focus on growing its export markets in the region and expects to double the volumes achieved in the period under review. The
Other comprehensive income 238,775,830 - - 238,775,830
phased refurbishment of the Secondary Plant is ongoing and outstanding refurbishments are expected to be completed by the end of the financial year, thus enabling
Reversal of revaluation on warehouse in impairment loss (28,051,491) - - (28,051,491)
the company to meet forecast local and export demand. The company is working on several strategies for sustainable growth and profitability into the future, hinged on
Settlement of compound financial instruments - (987,875) - (987,875)
exports and increasing market share in the household direct consumption space.
Exchange difference on foreign denominated
compound financial instruments - 49,319,027 - 49,319,027
CONCLUSION
I wish to thank the company’s various stakeholders, my fellow board members, management and staff for their contribution to the company’s performance and look
Balance as at 30 September 2020 (REVIEWED) 1,026,908,211 185,581,403 54,468,285 1,266,957,899
forward to the same support for the remainder of the year and beyond.
HISTORICAL

Balance as at 31 March 2020 (UNREVIEWED) 288,971,055 21,567,944 10,470,683 321,009,682

J.S Mutizwa
Chairman
Total comprehensive income 771,128,911 - 20,925,038 792,053,949
9 DECEMBER 2020
Profit for the period 224,179,492 - 20,925,038 245,104,530
Other comprehensive income 546,949,419 - - 546,949,419
INTERIM ABRIDGED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Reversal of revaluation on warehouse in impairment loss (28,028,997) - - (28,028,997)
for the six months ended 30 September 2020 Settlement of compound financial instruments - (491,710) - (491,710)
INFLATION ADJUSTED HISTORICAL Exchange difference on foreign denominated
compound financial instruments - 49,319,026 - 49,319,026
REVIEWED RESTATED UNREVIEWED UNREVIEWED
Period ended Period ended Notes Period ended Period ended
Balance as at 30 September 2020 (UNREVIEWED) 1,032,070,969 70,395,260 31,395,721 1,133,861,950
30 Sep 2020 30 Sep 2019 30 Sep 2020 30 Sep 2019
ZWL$ ZWL$ ZWL$ ZWL$
INTERIM ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Revenue 1,875,552,686 1,508,316,931 1,341,200,856 132,075,917 for the six months ended 30 September 2019
Earnings before Interest ,Tax,Depreciation Equity Equity
& Amortisation (EBITDA) 318,114,590 238,077,813 216,291,254 19,354,268 holders component of Non controlling Total
of the parent compound interest
Depreciation (14,670,944) (14,542,287) (2,836,284) (716,166) financial
instruments
Earnings before Interest & Tax 303,443,646 223,535,526 213,454,970 18,638,102 ZWL$ ZWL$ ZWL$ ZWL$
INFLATION ADJUSTED
Monetary Gain/(Loss) (37,067,405) 301,156,475 1.2 - -
Impairment loss (33,883,660) - 3 (33,883,660) - Balance as at 31 March 2019 (UNREVIEWED) 619,208,611 93,997,152 52,578,612 765,784,375
Fair value adjustment on investment property 84,736,625 377,433,778 4 355,480,535 89,029,229
Exchange loss (250,691,158) (641,545,917) (250,617,761) (84,546,443) Total comprehensive income 763,152,152 - - 763,152,152
Finance costs (21,726,750) (40,335,145) (15,751,432) (3,610,797) Profit for the period 153,265,735 - - 153,265,735
Share of profit of an associate 33,316,290 28,267,280 33,316,290 3,722,303 Other comprehensive income 609,886,417 - - 609,886,417
Settlement of compound financial instruments - (8,663,744) - (8,663,744)
Profit before taxation 78,127,588 248,511,997 301,998,942 23,232,394 Exchange difference on foreign denominated
compound financial instruments - 80,567,417 - 80,567,417
Income tax expense (131,886,287) (95,246,262) 5 (56,894,412) (10,787,619)
Balance as at 30 September 2019 (UNREVIEWED) 1,382,360,763 165,900,825 52,578,612 1,600,840,200
Profit/(Loss) for the period (53,758,699) 153,265,735 245,104,530 12,444,775
HISTORICAL
Profit/(Loss) for the period attributable to:
Non controlling interest 4,876,257 - 20,925,038 -
Balance as at 31 March 2019 (UNREVIEWED) 29,308,957 4,449,161 2,488,700 36,246,818
Equity holders of the parent (58,634,956) 153,265,735 224,179,492 12,444,775
(53,758,699) 153,265,735 245,104,530 12,444,775
Total comprehensive income 136,252,120 - - 136,252,120
Earnings/(Loss) per share (cents) Profit for the period 12,444,775 - - 12,444,775
Basic (1.22) 3.19 6 4.66 0.26 Other comprehensive income 123,807,345 - - 123,807,345
Diluted (1.22) 3.19 6 4.66 0.26 Settlement of compound financial instruments - (1,140,863) - (1,140,863)
Headline 1.38 7.27 6 3.02 0.19 Exchange difference on foreign denominated
Weighted average number of shares 4,808,662,335 4,808,662,335 4,808,662,335 4,808,662,335 compound financial instruments - 10,609,311 - 10,609,311
Number of shares for diluted earnings 4,808,662,335 4,808,662,335 4,808,662,335 4,808,662,335
Adjusted earnings for headline EPS (ZWL) 66,171,557 349,573,612 145,157,494 9,143,251 Balance as at 30 September 2019 (UNREVIEWED) 165,561,077 13,917,609 2,488,700 181,967,386

Directors: J. S. Mutizwa (Chairman), R. J. Mbire (Deputy Chairman), *R. V. Mutyiri (Chief Executive), J. M.Chikura *E. Machaka Madziva, S. Mahuni, *A. J. Musemburi, B. L. Nkomo, V. Nyemba (Mrs), M. Sibanda - (*Executive)
 ZIMBABWE INDEPENDENT BUSINESS DIGEST DECEMBER 11 TO 17, 2020 15

Starafrica/036721
ABRIDGED REVIEWED
FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020

Page 2 /3
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS Plant capacity enhancements
for the six months ended 30 September 2020 Power supply to the plant was stable due to an improvement in hydro power generation at Kariba Dam, as the water level increased. Water supply to the
INFLATION ADJUSTED HISTORICAL plant was adversely affected by supply side constraints from City of Harare. Water storage tanks were installed and an alternative supply source was put
in place in an effort to secure water supply to the factory, into the future. Two new centrifugal machines were installed, one in the Affination Station and
REVIEWED RESTATED UNREVIEWED UNREVIEWED
Period ended Period ended Notes Period ended Period ended the other in the Secondary Plant with a view to boosting production capacity and improving manufacturing efficiencies.
30 Sep 2020 30 Sep 2019 30 Sep 2020 30 Sep 2019
ZWL$ ZWL$ ZWL$ ZWL$ The plant continued to be certified by The Coca Cola Company (“TCCC”) as well as Food Safety certification under the FSSC 22000 series. The certifications
enable the Group to supply products to TCCC franchisees in the Southern Africa region and beyond.
Cash flows generated from operations 313,949,901 174,090,038 81,708,537 12,562,698
Management is confident that the notable changes to the financial position and the positive economic outlook will be maintained and enhanced through
Taxation paid (25,888,218) (4,809,236) (20,595,695) (633,292) product and markets development for both local and export requirements to meet the forecast volumes for the second half of the year and beyond.

Net Finance costs paid (652,521) (8,299,820) (458,859) (1,092,940)

The interim financial statements are prepared on the basis that the Group will continue to be a going concern. This basis of preparation is on the
Net cash flows from operating activities 287,409,162 160,980,982 60,653,983 10,836,466
assumption that the forecast production and sales will be achieved, the Group will quickly return to profitability in the second half thus realising its assets
Net cash flows received from investing activities 47,418,399 19,396,899 53,368,225 2,554,230 and discharging its liabilities in the ordinary course of business.

Net cash flows (used) in financing activities (16,820,553) (10,763,734) (10,788,879) (1,417,394) 3. Impairment Loss
The Group recognised an impairment loss on its plant and equipment following an incident of fire the 30th of August 2020. The fire destroyed the raw sugar
Net increase in cash and cash equivalents 318,007,008 169,614,147 103,233,329 11,973,302
Net foreign exchange difference (128,058,805) (22,903,909) 170,903,367 7,345,854 handling facility as well as some raw sugar that was stored in the facility. The impairment loss recognised in the statement of profit and loss is split as
Effect of change in functional currency - - - - follows;
Cash and cash equivalents at 1 April 133,101,947 65,366,241 48,913,454 8,607,583
Cash and cash equivalents at 31 March 323,050,150 212,076,479 323,050,150 27,926,739 Impairment loss written off attributable to the statement of profit and loss:

ZWL$
SUPPLEMENTARY INFORMATION
for the six months ended 30 September 2020 Damage of property, plant and equipment 394 347
INFLATION ADJUSTED HISTORICAL
Damage to raw sugar inventory 33 489 313
REVIEWED RESTATED UNREVIEWED UNREVIEWED
As at As at As at As at Total impairment loss written off to profit and loss 33 883 660
30 Sep 2020 31 Mar 2020 30 Sep 2020 31 Mar 2020

Number of shares in issue 4,808,662,335 4,808,662,335 4,808,662,335 4,808,662,335

Capital expenditure (27,116,727) (16,906,186) (19,732,362) (2,226,247)
Total refined sugar sales (tonnes) 26,959 30,469 26,959 30,469
4. Investment Property
Inventory (current assets) 299,355,303 329,177,705 285,027,405 112,503,613
INFLATION ADJUSTED HISTORICAL
Trade and other receivables (current assets) 165,028,429 201,736,742 165,028,429 74,135,957
Trade and other payables (current liabilities) 336,439,372 403,093,994 336,439,372 148,132,465 REVIEWED RESTATED UNREVIEWED UNREVIEWED
Property pledged as security - 124,381,569 - 45,708,814 Sep-20 Mar-20 Sep-20 Mar-20
Plant and equipment pledged as security - 241,504,062 - 88,750,000 ZWL$ ZWL$ ZWL$ ZWL$
Interest bearing borrowings 542,842,516 452,903,714 542,842,516 166,436,971
Short term loans 51,436,289 152,667,548 51,436,289 56,103,590
Balance at 1 April 428,045,926 466,248,858 157,302,017 22,068,924
Long term loans 491,406,227 300,236,166 491,406,227 110,333,381 Transfer from property , plant and equipment - - - -
Average cost of interest bearing borrowings 8% 8% 8% 8% Disposals - - - -
Functional currency adjustment - - - -
The historical amounts are shown as supplimentary information. This information does not comply with International Financial Reporting Standards in that it has not Valuation gain on investment property 84,736,625 (38,202,930) 355,480,534 135,233,093
taken into account the requirements of International Accounting Standard 29 - Financial Reporting for Hyperinflationary Economies. As a result the Auditor has not Closing Balance 512,782,551 428,045,928 512,782,551 157,302,017
expressed a review conclusion on the historical financial information.

INFLATION ADJUSTED HISTORICAL

Revenue and expenses relating to investment property
REVIEWED RESTATED UNREVIEWED UNREVIEWED
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
Sep-20 Sep-19 Sep-20 Sep-19
ZWL$ ZWL$ ZWL$ ZWL$
1. Basis of preparation
The interim condensed consolidated financial statements for the six months ended 30 September have been prepared in accordance with IAS 34 Interim Financial
Rental income 8,189,645 5,343,984 6,574,967 445,800
Reporting as well as the requirements of the Companies and Other Business Entities Act (Chapter 24:31). These interim abridged consolidated financial results Operating costs ( 2,400,790) ( 1 948 744) (1,915,228) ( 256 615)
were extracted from the full set of the interim condensed consolidated financial statements of Starafrica Corporation Limited which were prepared in accordance
with International Financial Reporting Standards (IFRS) except for non-compliance with IAS 21 “Effects of Changes in Foreign Exchange Rates”, the requirements Fair Value Hierarchy
The following table shows an analysis of the fair values of investment property recognised in the statement of financial position by level of the fair value hierarchy.
of the Companies Act (Chapter 24.03) and the requirements of the Zimbabwe Stock Exchange. The Group’s presentation currency is the Zimbabwean Dollar (ZWL$)
rounded off to the nearest dollar, which is the functional currency of the Group’s operations in Zimbabwe. Fair value measurement using
The Group Financial Statements have been prepared in line with IAS 29. Total Quoted prices Significant Significant
in active observable unobservable
markets inputs inputs
1.1 Functional Currency (Level 1) (Level 2) (Level 3)
The Group had been using the United States Dollar (US$) as its functional and reporting currency since 2009. In 2016 the monetary authorities introduced the
Bond note which was at par with the US$. On the 1st of October 2018 an Exchange Control Directive RT120/2018 was promulgated directing all banks to separate
Industrial 259 973 835 - - 259 973 835
domestic and Nostro currency accounts. On the 22nd of February 2019 Statutory Instrument 33 of 2019 was issued as an amendment to the Reserve Bank of Warehouse 240 258 255 - - 240 258 255
Zimbabwe Act and it introduced a new currency called the RTGS Dollar. Another Exchange Control Directive RU 28 of 2019 was issued at the same time and it Residential 12 550 461 - - 12 550 461
introduced an interbank market for the RTGS Dollar and the USD as well as other currencies in the multi-currency regime. On June 24 2019 the government gazetted Vacant Commercial Stands (Land) - - - -
Total 512 782 551 - - 512 782 551
Statutory Instrument 142 of 2019 which outlawed the use of multi-currencies and compelled that local transactions be done in local currency (ZWL$). The Group
followed the legal instruments and changed the functional currency on the 22nd of February 2019 and adopted the stipulated rate of US$1:ZWL$2.5. Subsequent 5. Income Tax Expense
to this, the interbank midrate has been used as a legal source of exchange rates in translating all foreign currency balances. The adherence to Statutory Instrument INFLATION ADJUSTED HISTORICAL
33 (SI 33) of 2019 created inconsistencies with IAS 21 as well as the principles embedded in the IFRS Conceptual Framework.
REVIEWED RESTATED UNREVIEWED UNREVIEWED
Sep-20 Sep-19 Sep-20 Sep-19
On 26 March 2020, the Reserve Bank of Zimbabwe in a press statement announced various interventions in response to the financial vulnerabilities caused by the ZWL$ ZWL$ ZWL$ ZWL$
COVID-19 pandemic. One of the measures announced therein was the authorization of the use of free-funds in paying for goods and services, in terms of Statutory
Income taxes
Instrument (SI) 85 of 2020. On 24 July 2020, the Government of Zimbabwe issued Statutory Instrument (SI) 185 of 2020, which granted permission to display,
Current year 50 998 814 338 086 50 998 814 33 984
quote or offer prices for all goods and services in both Zimbabwe dollars and foreign currency at the interbank exchange rate. On 23 June 2020, the Reserve Bank Tax on foreign dividends 14 907 025 7 135 679 14 620 118 939 643
of Zimbabwe introduced the Foreign Exchange Auction System, effectively abandoning the fixed foreign currency exchange rate regime which had been prevailing Deferred tax 65 980 448 87 772 497 ( 8 724 520) 9 813 992
for the greater part of 2020. Significant trades have been recorded on the platform and significant movements in the exchange rate have been resultantly recorded. 131 886 287 95 246 262 56 894 412 10 787 619
Given the context of the environment, the directors assessed if there has been a change in the functional currency used by the Group. This assessment included
consideration of whether the use of free funds in paying for goods and services may represent a change in functional currency. 6. Earnings/ (Loss) per share
The option for some of the remaining Secondary Scheme creditors to convert their debts to ordinary shares gives rise to potentially dilutive ordinary shares as at
In light of the developments summarised above, the directors concluded that the Group’s functional currency remains the Zimbabwe dollar (ZWL) as presented in year end.
the financial statements as at 31 March 2020.
The authorised new share capital levels are as follows:
1.2 Hyperinflation • Ordinary Shares 7 billion at a nominal price of $ 0.01 each
The interim condensed consolidated financial statements for the six months ended 30 September have been prepared in accordance with IAS 34 Interim Financial • Preference Cumulative Shares 3 billion at a nominal price of $ 0.01 each
Reporting as well as the requirements of the Companies and Other Business Entities Act (Chapter 24:31).
As at 30 September the actual shares in issue were 4 808 662 335 and these were used for calculation of loss per share as no shares where subscribed during the
These interim condensed consolidated financial statements are presented in Zimbabwean dollars. They have been prepared under the inflation adjusted accounting year.
basis in line with the provisions of International Accounting Standard (IAS) 29 - Financial Reporting in Hyperinflationary Economies. The Public Accountants and
Auditors Board (PAAB) pronounced on 11 October 2019 that the Zimbabwean economy was trading under hyperinflationary conditions. The Directors have applied Shares used for computation of diluted earnings per share were the same as those for basic earnings per share because the incremental impact of a potential 443
the guidelines provided by the PAAB and accounting bodies and applied the hyperinflation accounting principles. Inflation adjusted financial statements have been 514 182 shares from outstanding Scheme creditors who have conversion rights is anti-dilutive. The test for dilutive effect was done using the “if converted” method
drawn up using the conversion factors derived from the consumer price index(CPI) prepared by the Zimbabwe Central Statistical Office. which compared the impact of conversion (assuming it took place on 1 April 2020) on earnings (net of tax) (ZWL$ 337 642 760) against the potential ordinary
shares there from (443 514 182 shares).The result was anti-dilutive as the incremental earnings per share was higher than the basic earnings per share. The Group
The conversion factors used to restate the financial statements are as follows: then had to disregard the potential ordinary shares in the computation of diluted earnings per share. In prior year potentially dilutive shares were also disregarded
as they had an anti-dilutive effect on the profit per share then.
Date CPI Conversion factor
30 September 2020 2 205.2436 1.0000 There are potentially 443 514 182 shares arising from the outstanding Scheme creditors with convertible rights who are Concurrent creditors including Du Pont.
31 March 2020 810.4020 2.7212
30 September 2019 290.3918 7.5940 INFLATION ADJUSTED HISTORICAL
REVIEWED RESTATED UNREVIEWED UNREVIEWED
The carrying amounts of non-monetary assets and liabilities carried at historic cost have been restated to reflect the change in the general price index as if they Sep-20 Sep-19 Sep-20 Sep-19
had been hyperinflationary from 1 April 2019. No adjustment has been made for those non-monetary assets and liabilities measured at fair value. Impairment is ZWL$ ZWL$ ZWL$ ZWL$
recognised in the profit or loss if the measured amount of a non monetary asset exceeds the recoverable amount.
6.1 Basic earnings per share
All items recognised in the statement of profit or loss and other comprehensive income are restated by applying the average monthly general price index when the Profit attributable to equity holders of the parent (58,634,956) 153,265,735 224,179,492 12,444,775
items of income and expenses were initially earned or incurred. Weighted average number of ordinary shares in issue 4,808,662,335 4,808,662,335 4,808,662,335 4,808,662,335
Earnings per share (cents) (1.22) 3.19 4.66 0.26
Gains or losses on the net monetary position have been recognised as part of profit or loss before tax in the statement of profit or loss and other comprehensive
income. 6.2 Diluted earnings per share
Profit attributable to equity holders of the parent (58,634,956) 153,265,735 224,179,492 12,444,775
All amounts in the statement of cash flows were segregated into the respective months in which the cash flows actually occurred and the applicable monthly factor Weighted average number of ordinary shares adjusted
used to hyper-inflate the amount. Gain or losses on cash flows were included in non-cash items. for the effect of dilution 4,808,662,335 4,808,662,335 4,808,662,335 4,808,662,335
Earnings per share (cents) (1.22) 3.19 4.66 0.26
2. Going concern
Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) increased from ZWL$229 million in the prior comparative period to $318 million in the six 6.3 Headline earnings per share
months ended 30 September 2020. The balance sheet is in a strengthened position with a net asset position of ZWL$ 1.27 billion against ZWL$1.06 billion that was Headline earnings 66,171,557 349,573,612 145,157,494 9,143,251
recognised as at 31 March 2020. Weighted average number of ordinary shares in issue 4,808,662,335 4,808,662,335 4,808,662,335 4,808,662,335
Headline earnings per share (cents) 1.38 7.27 3.02 0.19
The conditions presented in the preceding paragraph indicate significant positive developments which have enhanced the Group’s ability to discharge its liabilities
through realising its assets in the normal course of business. Reconciliation of earnings used in calculating earnings per share
Profit Attributable to equity holders of the group (58,634,956) 153,265,735 224,179,492 12,444,775
Although the Group’s profitability took a dip in the six months ended 30 September 2020 from ZWL$294million posted in the comparative period to the current loss
of ZWL$68 million mainly due to the effect of the Covid-19 pandemic, the Group’s profitability, solvency and liquidity is being supported through the deliverables Adjusted for:
listed below which are expected to result in the Group being profitable for the full 2021 financial year; Insurance proceeds (164,797) - (108,000) -
Fair value gain on investment properties (84,736,625) (377,433,778) (355,480,535) (89,029,229)
Secondary Scheme Loss /(profit) on sale of property, plant and equipment - 275,573 - 36,288
The implementation of the scheme has progressed to a stage where 97.95% of creditors under the scheme have now been settled which has resulted in not only Exchange (gain) / loss 201,372,131 560,978,500 201,372,131 73,937,133
significantly reducing the interest burden but has contributed to the further strengthening of the Group’s financial position. Management continues to engage the Dilution (gains)/ Losses on equity-accounted investments 49,319,026 80,567,417 49,319,026 10,609,311
remaining creditors with a view to conversion but is also confident of meeting the eventual settlement requirements should the creditors hold out to the end of the Adjusted earnings 107,154,780 417,653,447 119,208,718 7,998,278
Scheme in 2021. Total tax effect on adjustments (40,983,223) (68,079,836) 25,948,776 1,144,973
Headline earnings 66,171,557 349,573,611 145,157,493 9,143,251

Directors: J. S. Mutizwa (Chairman), R. J. Mbire (Deputy Chairman), *R. V. Mutyiri (Chief Executive), J. M.Chikura *E. Machaka Madziva, S. Mahuni, *A. J. Musemburi, B. L. Nkomo, V. Nyemba (Mrs), M. Sibanda - (*Executive)
16 ZIMBABWE INDEPENDENT BUSINESS DIGEST DECEMBER 11 TO 17, 2020

WORLD BUSINESS NEWS

SA Business Group urges

reforms to boost economy

Starafrica/036721
ABRIDGED REVIEWED
FINANCIAL RESULTS

Page 3/3
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020

7. Property, Plant & Equipment

The group carries land and buildings at fair value less accumulated depreciation and impairment, and the rest of property plant and equipment is carried
at cost less accumulated depreciation and impairment. A revaluation of land and buildings was carried on the 30th of September 2020. Fair value of the

properties was determined by valuing the Property, Plant and Equipment using exchange rates prevailing at the end of September 2020. The revalued property
consists of commercial stands, warehouses, residential and industrial buildings in Zimbabwe. The difference between the carrying amount as at 31 March

2020 and the fair value as at 30 September 2020 was deemed to be the revaluation in ZWL terms and was classified under other comprehensive income for
property, plant and equipment and in the Statement of Profit or Loss for investment properties.

Property, plant and equipment The virus and lockdowns wrought havoc with already tight government
finances.
Land Plant Commercial Passenger Furniture Total
and buildings & Machinery vehicles vehicles & equipment
ZWL$ ZWL$ ZWL$ ZWL$ ZWL$ ZWL$ A SOUTH African business group included allocating new broad-
HISTORICAL
urged the government to speed band spectrum and changing visa
Cost
Balance at 1 April 2020 236,500,000 25,435,064 3,376 26,770 1,287,147 263,252,357
up reforms and policy changes to regulations to boost tourism and
Additions - 17,970,100 - 362,500 1,399,761 19,732,361 strengthen confidence and boost attract skilled migrants. The virus
Revaluation of property 496,649,097 - - - - 496,649,097
an economy that was in a reces- and lockdowns wrought havoc
Balance at 30 September 2020 733,149,097 43,405,164 3,376 389,270 2,686,908 779,633,815
sion even before the Covid-19 with already tight government
Accumulated depreciation pandemic hit the country. finances, and the National Treas-
Balance at 1 April 2020 - 10,305,746 3,376 23,113 327,376 10,659,611
The South African Chamber of ury is now urgently trying to trim
Depreciation charge for the period 2,312,500 418,997 - 7,208 97,578 2,836,283
Depreciation reversal on revaluation (2,312,500) - - - - (2,312,500) Commerce and Industry’s (Sac- the public-sector wage bill to rein
Balance at 30 September 2020 - 10,724,743 3,376 30,321 424,954 11,183,394 ci) business-confidence index in the budget deficit and govern-
Net book value -
rose to 93,4 in November from ment debt.
30 September 2020 (UNREVIEWED) 733,149,097 32,680,421 - 358,949 2,261,954 768,450,421 92 the previous month, it said Even though confidence ticked
in an email. It released both the up, the index “still reflects a busi-
Net book value -
31 March 2020 (UNREVIEWED) 236,500,000 15,129,318 - 3,657 959,771 252,592,746
October and November data on ness climate that is plagued by
Wednesday. The BCI is still below poor economic performance,
its average of 102,5 in the decade recessionary conditions, high
Land Plant Commercial Passenger Furniture Total
preceding the latest figures. unemployment and fiscal unsus-
and buildings & Machinery vehicles vehicles & equipment The gauge plunged to 70,1 at the tainability,” the chamber said,
ZWL$ ZWL$ ZWL$ ZWL$ ZWL$ ZWL$ height of lockdown restrictions describing general mood among
INFLATION ADJUSTED
in May, the lowest level since business owners as “fragile.”
Cost its inception. Limitations on the South Africa fell deeper into
Balance at 1 April 2020 643,557,304 433,391,567 71,333 565,568 17,495,077 1,095,080,849 movement of goods and people junk territory last month after
Additions - 24,983,936 - 553,138 1,579,652 27,116,726
Revaluation of property 90,240,128 - - - - 90,240,128
helped drag the economy into its Moody’s Investors Service and
longest recession in almost three Fitch Ratings lowered the coun-
Balance at 30 September 2020 733,797,432 458,375,503 71,333 1,118,706 19,074,729 1,212,437,703 decades. While gross domes- try’s credit ratings on expecta-
Accumulated depreciation
Balance at 1 April 2020 - 214,682,415 71,333 507,354 5,673,977 220,935,079
tic product returned to annual- tions that the country’s fiscal
Depreciation charge for the period 4,758,858 8,628,205 - 111,871 1,172,010 14,670,944 ized growth in the third quarter, situation will deteriorate further
Depreciation reversal on revaluation (4,758,858) - - - - (4,758,858) output is still down from a year and that GDP will remain below
Balance at 30 September 2020 - 223,310,620 71,333 619,225 6,845,987 230,847,165
earlier. 2019 levels for at least the next
Net book value - “It has become clear that two years.
30 September 2020 (REVIEWED) 733,797,432 235,064,883 - 499,481 12,228,742 981,590,538 structural reform is necessary,” To lift business confidence “to
Net book value -
Sacci said in an emailed state- appropriate levels calls for de-
31 March 2020 (RESTATED) 643,557,304 218,709,152 - 58,214 11,821,100 874,145,770 ment. “Finding solutions to the cisive and bold steps to beat the
health and economic effect of challenges of the fiscal cliff, re-
Covid-19 call for expedited cred- gain investor confidence, move
8. Loans and Borrowings
ible economic policy changes to beyond the junk investment
enhance economic performance status of credit-rating agencies,
Changes in interest-bearing loans and borrowings arising from Financing activities and place economic growth on a and create and improve an eco-
INFLATION ADJUSTED HISTORICAL new trajectory.” nomic growth momentum led
REVIEWED RESTATED UNREVIEWED UNREVIEWED Before the pandemic, some of by the private sector,” Sacci said.
Sep-20 Mar-20 Sep-20 Mar-20 the reforms that were called for — Bloomberg.
ZWL$ ZWL$ ZWL$ ZWL$

Balances at 1 April 452,903,715 691,235,072 166,436,974 32,718,181

UK GDP growth slows to six-month

Interest charged 21,483,766 64,701,415 15,460,309 10,309,469
Loans paid (16,820,553) (47,163,841) (10,788,879) (10,623,674)
Interest paid (409,537) (22,947,019) (177,050) (1,666,137)

low as Covid hit hospitality

Loans restructuring - (27,156,447) - (5,594,959)
Effect of exchange rates on foreign creditors 371,911,162 384,485,603 371,911,162 141,294,091
Monetary gain (286,226,037) (590,251,069) - -
Closing balance 542,842,516 452,903,714 542,842,516 166,436,971
BRITAIN’s economic recovery almost the economy is in for a difficult few
The loans and borrowings are distributed as: ground to a halt in October as a surge months yet,” Ruth Gregory, econo-
Long term borrowings 491,406,227 300,236,166 491,406,227 110,333,381
Short term borrowings 51,436,289 152,667,548 51,436,289 56,103,590
in coronavirus cases dealt a blow to mist at Capital Economics said.
542,842,516 452,903,714 542,842,516 166,436,971 the hospitality sector, official figures Although the economy picked up
showed yesterday. rapidly after the initial shock of the
9. Effect of Covid-19 on the Group’s operations
The Government of Zimbabwe declared a national lockdown effected from the 30th March 2020 in response to World Health Organisation declaration of the
Gross domestic product rose 0,4% lockdown, it lost momentum as Covid
COVID – 19 outbreak as a pandemic. on the month after expanding 1,1% cases started to rise again in Septem-
in September, the Office for National ber and accelerated in October.
The Company continued to operate during the lockdown as a result of it being in the essential services sector. A shut down was however announced in July
2020 as a preventative measure following positive cases of COVID -19 having been detected. As a way of managing the prevailing risk, the Group has engaged Statistics(ONS) said, the weakest Government restrictions on social-
all its service providers and continues to minimise personal interface. Communication and interaction has been over the distance, on line, in memos, notices growth since output collapsed in April ising in much of the United Kingdom,
on notice boards, use of telephones, mobile phones etc.
during the first lockdown. as well as greater caution from some
The extent, duration and impact of the pandemic remain uncertain and depend on future developments that cannot be accurately predicted at this stage. The Britain has Europe’s highest death of the public, led to a 14,4% fall in
supply of raw materials to the sugar refining plant was generally stable during the period under review except for packaging materials sourced from South toll from Covid-19, with more than output across the accommodation
Africa, whose cartage was slowed down by the lockdown in that country.
62,000 fatalities, and also suffered and restaurant sector.
The Group reviewed stocking levels upwards to ensure business continuity. It also pre-ordered sufficient supplies and materials including those consumables the biggest economic hit of any ma- Business surveys in October had
required to maintain a healthy environment (tissues, hand sanitizers, soap, masks etc.) and will continually review the impact of short term changes to the jor economy after GDP shrank by an already shown a slowdown in growth,
supply chain and logistics models to avoid disruption. Pro-active cash management measures have been put in place to ensure that the Group has sufficient
liquidity to weather the storm.
unprecedented 19,8% in the second and most economists think output fell
quarter of this year. outright in November, when the gov-
The Group has had to bear costs of creating a safer working environment. The business solvency position has not been affected as it has renegotiated trade Output in October was 7,9% lower ernment imposed a four-week partial
terms with both suppliers and customers to take into account the new COVID-19 operating environment.
than it was in February, before the lockdown in England, which closed
Management is hopeful that measures being pursued by Government and the world at large will smother the full impact of this pandemic. The company pandemic struck Britain’s economy, non-essential shops and most hospi-
remains resilient as local demand for its products continues to be strong. Efforts to increase our share of the exports market have been enhanced. There have the ONS said, and 8,2% weaker than tality venues.
not been any major constraints in the supply of major raw inputs. The Board remains confident that the company will continue on its upward trajectory despite
the current challenges emanating from COVID-19.
in October 2019. However, the decline is expected
Government forecasters do not to be much more limited than in the
expect the economy to regain its first lockdown, when restrictions were
10. Auditor’s Statement
The Group’s inflation adjusted interim financial statements from which these abridged results have been extracted have been reviewed by the Group’s external
pre-Covid size until the end of 2022 tighter and businesses had less time
auditors, Ernst & Young Chartered Accountants (Zimbabwe), who have issued an adverse review conclusion as a result of the impact of the following prior year and the Organisation for Economic to adapt.
matters: non-compliance with International Accounting Standard 21, “The Effects of Changes in Foreign Exchange Rates” and International Accounting Standard Co-operation and Development pre- The end of a post-Brexit transi-
8, “Accounting Polices, Changes in Accounting Estimates and Errors”; the consequential impact on the inflation-adjusted amounts determined in terms of IAS 29,
valuation of investment properties, due to lack of market evidence to support property valuation inputs and accounting for foreign denominated equity component
dicted that Britain’s recovery would be tion period will also pose a challenge
of compound financial instruments. The auditor’s review conclusion on the Group’s inflation adjusted interim financial statements is available for inspection at the weaker than anywhere bar Argentina. for many businesses from Jan. 1,
Company’s registered office. The engagement partner for this review is Mr Fungai Kuipa (PAAB Practicing Certificate Number 335). “The economy continued to grow when exporters will face new border
in October, but at a snail’s pace. And checks for goods they want to sell in
with the Covid-19 restrictions likely the EU, and potentially tariffs as well.
Directors: J. S. Mutizwa (Chairman), R. J. Mbire (Deputy Chairman), *R. V. Mutyiri (Chief Executive), to remain in place for some time, — Reuters.
J. M.Chikura *E. Machaka Madziva, S. Mahuni, *A. J. Musemburi, B. L. Nkomo, V. Nyemba (Mrs), M. Sibanda - (*Executive)
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 B1

Zacc, IoDZ join forces Meet Woman

against corruption Director of
JOTHAM GUTSA ers to be able to detect such offences, ex-
the Year
change of information on best practices and
THE Zimbabwe Anti-Corruption Commis- strategies in tackling such issues,” she said. FOUNDER and managing director of Surdax
sion (Zacc) recently forged an alliance with “I also applaud the effort by IoDZ in curb- Investment Roselyn Musarurwa Charehwa
Institute of Directors Zimbabwe (IoDZ) ing corruption through training, research, walked away with the 2020 Woman director of
through signing a Memorandum of Under- development and various events that foster the year gong at the Director of the Year (DOYA)
standing (MOU) to advocate for the fight corporate governance practices, systems award ceremony.
against corruption through corporate gov- and processes. As Zacc we take pride in A holder of an MBA from University of Roe-
ernance platforms. collaborative approaches to mitigating cor- hampton (UK), she also has Diplomas in Ex-
The MOU signing ceremony coincided ruption through creation of strategic part- ecutive business leadership with Zimbabwe
with the Institute of Directors Zimbabwe nerships,” she added. Institute of Management, Transformational
(IoDZ )’s Director of the Year (DOYA) award Meanwhile, BancABC managing direc- Leadership with the Global Women Leader-
ceremony which saw six directors being tor and CEO Lance Mambondiani came out ship Network (USA), Talent Identification with
recognised and awarded for their business tops with two awards as he scooped the Brilliant Entrepreneurs (The Netherlands), Hive
efforts during the year. 2020 Chief Executive Officer of the Year and Women's Leadership Programme — Facilita-
In her keynote address, Zacc chairper- overall director of the year. tor Training (USA), AWEC Leadership and Busi-
son Justice Loice Matanda-Moyo said the Other winners included Compulink Sys- ness Management Capacity Building Program,
agreement would ensure that they joined tems managing director Simon Nyamuda, Strategic Business Management (Jaskorg/SIPU/
forces to fight corruption in the private who bagged the 2019 Director of the Year SIDA— Sweden).
sector. accolade in the Young Director of the Year She is married with four children, two boys
“We must fight corruption as board category. and two girls. As Managing Director of SURDAX
members because we are the corporate Sapienta Bachi of TBWA scooped the a company that employs over 300 people she
governance champions and we are man- small-and-medium-sized Enterprise Di- provides hygienic services and products.
dated to play an oversight role on policy rector of the Year. She is a member of Global Women Leader-
formulation and implementation. This MoU OK Zimbabwe's commercial director Al- ship Network (GWLN), The African Women En-
comes at a very opportune time where we bert Katsande won the 2020 chairperson of trepreneurship Cooperative (AWEC), Zimbabwe
can partner with IoDZ in training our offic- the Year at the same event. Zacc chairperson Justice Loice Matanda-Moyo To B5
B2 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

DOYA

Government tackles corruption

CORRUPTION has created a negative impact rency, unlawful and illegitimate deals and trans- grammes, among others. “Transitional Stabilization Programme (TSP) Re-
on all sectors of the country, including the eco- actions and under-ground foreign exchange “ZACC was created to combat all forms of forms Agenda” which is currently running from
nomic sector, resulting in the increase on the transactions, among other corrupt conducts.” corruption both the public and private sector. October 2018 to December 2020. The TSP's task
cost of doing business. Matanda-Moyo explained. The Commission has two operational depart- was centered on macro and fiscal stabilization
The scourge also results in loss of revenue, Alive to its obligation to revive the economy, ments the investigation department and the and laying a foundation for the overall goal of
reduced foreign direct investment, subdued the new dispensation came up with a wide prevention department. The prevention depart- a strong, sustainable and shared growth,” she
domestic investment, externalization of foreign range of economic blue prints aimed at improv- ment is there to look at systems and policies in explained.
currency, closure of industry and deterioration ing economic governance in a bid to promote all institutions to ensure transparency and ac- The TSP introduced institutional reforms in
of public services among others. sustainable economic growth and alleviate countability and it is also responsible for edu- budget expenditure, public service, public sec-
Addressing delegates at the recently held poverty. cating the public on the ills of corruption. tor, operationalization of the Public Entities Cor-
Director of the year (Doya) awards Zimbabwe The government has pronounced a “Zero Tol- Given such a mandate you will all agree with porate Governance Act. The TSP also contained
Anti-Corruption Commission (ZACC)’s chair- erance” to all forms of corruption and the need me that the fight against corruption is not only specific measures to uproot entrenched indis-
person Justice Loice Matanda-Moyo said the to deal with corruption decisively. the duty of ZACC alone. This fight requires co- cipline, corruption, including nipping in the bud
government had therefore addressed policy in- Zimbabwe's aspirations of Vision 2030 of operation from all institutions in the country in- all opportunities for rent seeking. In addition, the
consistencies, entrenched weaknesses and in- a prosperous and empowered upper middle- cluding the private sector,“she said. TSP introduced the Results Based Management
discipline in the management of public finances income society are anchored on improved Matanda-Moyo challenged every director, approach, using the 100 Days Rapid Results Ini-
and ushered in measures that addressed Public governance and the rule of law, an aggressive leader and most importantly every Zimbabwean tiative (RRI) methodologies.
Enterprises and Local Authorities reform. fight against all forms of corruption, creation of to ensure that the country’s vision is realised. The TSP will be superseded by the NDS 1 run-
“As a matter of high priority, the govern- a competitive and friendly business environ- “Thus by 2030, we are building “Towards a ning from January 2021-2025. ZACC falls under
ment also introduced measures that address ment, respect for human rights and property Prosperous and Empowered Upper Middle In- the Governance pillar.
combating all forms of corruption, smuggling, rights, attainment of responsive public institu- come Society with Job Opportunities and High The government adopted a comprehensive
tax evasion, money laundering practices, illicit tions, broad based citizenry participation in na- Quality of Life for its Citizens”. legal framework to promote good corporate
financial flows, externalization of foreign cur- tional and socio-economic development pro- “As a country we have policies such as the governance, transparency, accountability and
prevent conflict of interest in the public sec-
tor. Such legislation includes the Constitution
of Zimbabwe which addresses issues pertaining

Makorokoto Samanyanga! to basic values and principles governing public

administration, responsibilities of public officers
and principles of leadership.

Congratulations on this achievement. Section 3 of the Constitution of Zimbabwe

provides for the founding values and principles
of Zimbabwe and among the values is good
We are proud to be associated with excellence. governance. The principles of good govern-
ance, which bind the State and all institutions
and agencies of government at every level, in-
clude transparency, justice, accountability and
responsiveness.
The Government is now obliged through Sec-
tion 9 to adopt and implement policies and
legislation to develop efficiency, competence,
accountability, transparency, personal integrity
and financial probity in all institutions and agen-
cies of government.
The Public Entities Corporate Governance Ac
of 2019 and the Public Entities Corporate Gov-
ernance (General) Regulations 2018 enhance
transparency and accountability in the public
sector.
The Zimbabwe Code of Corporate Governance
(Zimcode) although it has been enacted through
PECOG, it also applies to the private sector. The
code speaks of ownership and control issues of
a business entity and proper conduct of those
who own or control business enterprises; the
role and function of the Board of Directors; con-
flict prevention and resolution; compliance and
enforcement including stakeholder relations
which are key in combating corruption.
Compliance to such policies as the ZIM-
CODE should not come with effort but naturally
amongst those holding leadership positions.
The government has also launched the Na-
tional AntiCorruption Strategy 2020-2024,
a document that now allows Zimbabwe to
have a national consensus in the fight against
corruption.
This NACS has six objectives which include
increasing public demand for transparency,
and accountability and rejection of corruption
in government, SMEs, public institutions and the
private sector.
ZACC said Matanda-Moyo has a vision of
making a citizenry and institutions that uphold
integrity, good governance for a corruption free
Zimbabwe.
“Achieving this dream requires a culture
that is anchored on integrity, transparency and
accountability.
Such mindsets are fostered through sustain-
able partnerships with institutions that help the
breeding of practices of good corporate govern-
ance such as the IODZ,” she said.

Albert Rufaro Katsande

In its preventative strategy, ZACC has been
concentrating more on public institutions. “How-
ever, this does not mean that in the private sec-
tor there is no corruption. Corruption that takes
place in the private sector has a huge impact on
the economy as it results in illicit financial flows.
For instance trade mis-invoicing where compa-
nies do not declare the true values or quantities
of goods exported.”
The Zacc chairperson said this is done to en-
able companies to move capital from Zimbabwe
to another country. There ia also importation of
machinery where values are overpriced to allow
Beverley Corner, 11 Selous Avenue, Harare companies to retain a certain amount outside
Tel: +263 242 250113-22/24-29 Fax: +263 242 764015, the country.
Email: [email protected] Explaining procurement corruption Matanda-
www.wintertons.co.zw Moyo said it is usually companies that bribe
public officials to be awarded tenders corruptly.
To B4
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 B3

DOYA

Katsande raises high OK flag About IoDZ

OK Zimbabwe’s commercial direc- Katsande joined the company promoted to his current post. Zimbabwe. Katsande has vast expe-
tor Albert Katsande won the 2020 in 1989 and through hard work and He holds a Bachelor of Science rience in marketing having worked THE Institute of Directors Zimbabwe is a
chairperson of the year accolade at sheer resilience rose to the positions Economics (Honours) degree and a for Lever Brothers, Dairiboard Zim- non-profit membership-based associa-
the recently held Director of the year of marketing director and managing Master of Business Administration babwe Limited and CAPS Holdings tion for professional leaders which has a
awards. director respectively before he was degree, both from the University of Limited before joining OK Zimbabwe. mandate is to support businesses and
the people who run them. The IODZ does
this mainly through training.
History
The Institute of Directors (IoD) was
founded in the United Kingdom (UK) in
1903 and was granted a Royal Charter in
1906. Unlike many Chartered Institutes, it
is not, at least at present, an examining
body but first and foremost considers it-
self a training institute.
It was not until 1958 that the IoD es-
tablished its first branch outside UK and
had its inaugural meeting in Harare, Zim-
babwe, in March 1958. Following this de-
velopment, the IoD spread its wings rap-
idly throughout the Commonwealth and
elsewhere and today there are divisions
or associated institutions in over 100
countries including Canada, Hong Kong,
Kenya, Jamaica, Malta, New Zealand,
Nigeria, The Republic of Ireland, South
Africa, Zambia, Zimbabwe, Malawi, Mo-
zambique and Mauritius.
At the end of 1993, the Institute
adopted an Affiliate status to the IoD UK
and became known as ’The Institute of
Directors Zimbabwe’ (IoDZ).
Following this change in status, the In-
stitute was re-organised with a Council,
representative of a wide cross-section
of our business and professional com-
munity, responsible for overall direction
and policy, an Executive Committee re-
sponsible for the on-going management
of the Institute’s affairs and an Executive
Albert Katsande Director as the head of the Secretariat.

A leader is best when

people barely know he
exists, when his work is
done, his aim fulfilled,
they will say: we did it
ourselves." - Lao Tzu

Congratulations
Makorokoto, Amhlophe!
Mr. A. R. Katsande,
Commercial Director of OK Zimbabwe Limited and
Non-Executive Chairman of
for being named winner of the

Institute of Directors Zimbabwe (IODZ)

Director Of the Year Awards (DOYA)
2020 Chairperson of the Year

Winner: 2018
1st Runner Up: 2019
2nd Runner Up: 2020

DIRECTORS: H. Nkala (Chairman), A. E. Siyavora (Chief Executive Officer), A. R. Katsande (Commercial Director),
T. L. Gumbo, R. A. Maunze, R. Mavima, A. S. McLeod, B. A. Carter (Alternate), R. J. Moyo, K. Mtemererwa, L. Webster-Rozon
B4 advertising supplement to the Zimbabwe independent DECEMBER DECEMBER 11 TO 17, 2020

DOYA

Mambondiani dazzles at DOYA

Renowned Digital Banking thought leader
and seasoned banker Lance Shingai Mambon-
diani recently shone at the Director of the year
awards grabbing the overall prize as well as the
Chief excecutive officer of the year accolade.
CEO of BancABC Zimbabwe Mambondiani
has worked as an executive for regional and in-
ternational financial institutions over the years.
Named in the African Report Magazine’s
Top List of Who is Who in African Finance and
as 2019’s Most Innovative CEO by the CEO Af-
rica Roundtable, Mambondiani has won several
leadership awards and is a much sought-after
speaker at international conferences as a global
expert on Fintech, digitization and transforma-
tion of banks. He was recently featured in the
August 2020 Global Edition of the CEO Maga- Lance Shingai Mambondiani
zine for his contribution to bank innovation
across Africa. in Banking and Finance in 2011, analyzing Bank
He holds a Bachelor of Laws degree (LLBS. Ownership and Profitability in the Zimbabwean
Hons) from the University of Zimbabwe, an MSc Banking Sector at the same University. He is
in Development Finance (First Class) at the Uni- also a recipient of the highly prestigious Ch-
versity of Manchester and completed his PhD evening Scholarship by the British Council. From.left: Lance Mambondiani, Albert Katsande Roselyn Charehwa, Nyamuda and Sapienda Bhachi.

DOYA winners
• Director
Simon Nyamuda, has been awarded the 2019
of the Year, In the Young Director of
the Year Category
• the
Dr. Lance Mambondiani, has been awarded
2019 Chief Executive Officer of the Year,
In the Chief Executive Officer of the Year
You can now access all publications on a secure link: Category
digital.alphamedia.co.zw • Roselyn Charehwa , has been awarded
the 2019 Woman Director of the Year,In the
Woman Director of the Year Category
• Sapientia F. Bachi, has been awarded the
2019 Director of the Year, In the Director of
the Year - Small and Medium Sized Enter-
prises Category
• Dr. Lance Mambondiani, has been awarded
the 2019 Director of the Year, Overall Director
of the Year
• Albert Katsande, has been awarded the 2019
Chairperson of the Year, In the Chairperson of
the Year Category

Govt tackles
corruption
From B2
“Prices are inflated so that companies are able
username: your receiving email address | initial password: welcome (you can customise) to pay kick-backs to the corrupt government
officials. Such corruption is detrimental to the
people of Zimbabwe. For instance if there is
corruption in the Health sector it is the end user
who will be the most affected,” she said.
“We should familiarise ourselves with the
key corporate governance policies such as The
Public Entities Corporate Governance Act (PEC-
All queries and feedback on hotline GA), Zimbabwe Code of Corporate Governance
(Zimcode) and the Companies and other Busi-
Loreen Gwatidzo 0737 185 178 ness Entities Act of 2019 which criminalises the
Violet Chawasarira 0773 207 437 fraudulent, reckless or grossly negligent con-
Blessing Mandabva 0773 107 561 duct of business, falsification of records and
Alphos Chigwadhi 0773 552 910 obligates companies to maintain and file ben-
eficial ownership information.
or email: [email protected] “As directors we have fiduciary duties that we
must uphold, let us not be found at the wrong
side of the law.”
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 B5

DOYA

Meet Woman Director of the Year

From B1 team work, leading through innovation, promot-
National Chamber of Commerce (ZNCC), In- ing and encouraging among others, Surdax is
ternational Women Entrepreneurship Chal- focused on creating convenience for customers.
lenge (IWEC), Women President Organisation Surdax Investments (Pvt) Ltd is an ISO
(WPO), Confederation of Zimbabwe Industry 9001:2015 certified company which was estab-
(CZI), PROWEB and Brilliant Entrepreneurship lished in 2003 and is dully registered according
Programme. to the laws and regulations of Zimbabwe.
She sits on the National Executive Council Over the years Surdax has evolved to become
of Zimbabwe National Chamber of Commerce, one of the largest and most specialized inte-
Board Member at CSR Network Zimbabwe, grated hygiene services and products company
Trade Measures Board – Ministry of Industry and in the land.
Commerce, Deputy Chair of the Women’s Desk With extensive experience in cleaning all
ZNCC, Committee Member at the COMESA 50 types of environments, Surdax has established
Million Women Speak Programem and Board a solid foundation in theintegrated hygienic
Chairperson of the Zimbabwe Female Open services and products field and has developed
Prison Foundation (ZFOPF). operative systems that are responsive to the
Past achievements current challenges and threats faced by local
companies.
•ZNCC
2013, she won an award at the inaugural
WECA, SME category
Services
•tional IWEC
2016, — Awarded an award at Interna-
Women's Entrepreneurial Challenge in
The services include the provision of contracted
cleaning services, landscaping and grounds/
Brussels Belgium garden maintenance, labour provision, hygienic
•—2017, Corporate Social Responsibility
Facilitating
detergents, pest control, once-off specialized
cleaning, office plants supplies, tree cutting and
•of2018, PROWEB — Women Owned Company
the Year
sanitary collection services.
The company focuses on recruitment of the
Meanwhile her brainchild Surdax Investments mature, energetic and bright graduates.
(PVT) LTD is pushing the limits of its resources to Surdax Investments has also in an attempt to
provide quality outsourced services. recruit the best, developed a personality profil-
With the highest ethical standards and pure ing system that aims at understanding the indi-
dedication to excellence in all operational as- vidual in order to place them at the right place.
pects, the company aspire to exceed custom- Meanwhile Surdax has been very active in the
ers’ expectations. fight against COVID-19 and have even gone on
This is in line with their vision of being the to donate to orphanages and also hospitals like
preferred professional partner in outsourced St Anne’s.
services solutions in Southern Africa The company is also disinfecting spac-
With a mission to make sure the environment es for COVID-19 like hospitals, banks and
is safe and conducive for production, Surdax is supermarkets.
uncompromising in its dedication to this integral They also disinfect homes and offices as well
element in all its business activities. as providing protective clothing in the Covid-19
Buoyed by strict values like family,integrity, space. Winner of woman director of the year Roselyn Musarurwa Charehwa.

Stand 378 Induna Industrial Park

Simon Mazorodze, Waterfalls
E-Mail: [email protected]
Mobile: +263774492135

The Board, Management and Staff of Nortic Business Services T/A Nortic Trucking are pleased to congratulate Mr Albert
Katsande for winning the Chairperson of the Year Award at the Institute of Directors Zimbabwe IoDZ 2020 Awards Ceremony.
May the success that has come your way today lead you to a bigger achievement in the years to come.

Congratulations!
B6 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

DOYA

Young
Director
of the
Year
2020
SIMON Nyamuda the managing director of the
Compulink Systems one of Zimbabwe’s most
successful ICT companies, is the young direc- Compulink Systems MD Simon Nyamuda
tor of the year.
Appointed to his current post in 2013, Ny-
amuda has proved his worth and is no stranger
to winning awards.
Under his leadership Compulink Systems
was awarded the most outstanding ICT com-
pany of the year award at the Megafest Busi-
ness awards in 2015.
The company was also the 1st runner up
for the customer service award at the SMEAZ
(small to medium enterprises association of
Zimbabwe) Local Legends awards in the same
year.
In 2018 they bagged yet another award at
the Mashonaland Zimbabwe National Cham-
ber of Commerce (ZNCC) Micro, Small to Me-
dium Enterprise (MSME) awards.
Prior to being appointed the managing
director of Compulink Systems, Nyamuda
headed the networking and communications
business unit at Compulink. In this post he at-
tained a number of key Cisco Systems sales
certifications. In 2013 Cisco Systems awarded
him with the prestigious Cisco’s Winners Cir-
cle Award for sales acceleration in the EMEAR
(Europe, Middle East, Africa and Russia) re-
gion. Nyamuda was one out of the five repre-
sentatives from Africa to attend the event and
to receive this recognition.
In 2011 – 2012, he grew business unit’s gross
profit by over 200%. Nyamuda’s aggression
for results has set him apart as a key unique
resource in the region.
Academically he continues with his prow-
ess and has completed a Business Studies di-
ploma with Celebration College, he holds vari-
ous other certificates in Leaders Appreciation,
Project Management, Business Success 360
degrees, Strategy, 95% share marketing and
Investment in Excellence from The Pacific In-
stitute. Nyamuda has served on the executive
committee of the ICT Suppliers Association of
Zimbabwe (ICTAZ) since 2014, and he was the
chairman of the national executive committee
in 2016.
He is an active philanthropist and has a pas-
sion to see the lives of others positively im-
pacted through the use of technology.

Compulink Systems MD Simon Nyamuda

 advertising supplement to the Zimbabwe independent DECEMBER 11 TO 17, 2020 B7

DOYA

Director of the Year awards in pictures

Zacc chairperson Justice Loice Matanda-Moyo (left) and Mike Juru (IoDZ) signing the MOU to IoDZ chairperson Mike Juru (left), Zacc chairperson Justice Loice Matanda-Moyo, IoDZ vice chair
advocate for the fight against corruption. Cynthia Tapera, commissioner Mabel Hungwe and IoDZ executive director Stanlake Hove.

Director of ceremonies Valentine Mabhugu

Head of of corporate sales (Dandemutande)

Lorraine Nyahwa

Congratulations to the COO of OK Zimbabwe Mr Albert Katsande for

scooping the Chairperson of the Year Award at
Director of the Year Award Ceremony

Guest Cynthia Takura Chisenye

B8 advertising supplement to the Zimbabwe independent DECEMBER DECEMBER 11 TO 17, 2020

DOYA

DOYA in pictures

IoDZ chairperson Mike Juru (left), Zacc chaiperson Loice Matanda-Moyo and IoDZ vice chairperson
Cynthia Tapera. OK Zimbabwe COO Albert Rufaro Katsande

.AMH Marketing executives Zimbali gardens chefs

Congratula ons
The Chairman, Management and Staff of Freight World
would like to Congratulate Albert Katsande COO of OK Zimbabwe
for being awarded Chairperson Of The Year Award by
The Institute of Directors Zimbabwe (IoDZ)
Albert Katsande We are proud to be associated with you.
Makorokoto Amhlope!
HEAD OFFICE BRANCHES:-
100 KELVIN ROAD SOUTH, PLUMTREE BORDER POST
GRANITESIDE SALES OFFICE
BEITBRIDGE BORDER POST
HARARE, ZIMBABWE FORBES BOARDER POST
MUSINA
TEL: +263-4-758 766/7/8/9 BULAWAYO
263-4-755 595/9 BEIRA JOHANNESBURG
FAX: 263-4-758 770 NYAMAPANDA BORDER POST DURBAN
[email protected]
[email protected]
 AD SUPPLEMENT TO THE ZIM INDEPENDENT DECEMBER 11 TO 17, 2020 B9

DOYA 22 Faber Road, Bluff Hill, Harare

Tel: 0242 331611
Whatsapp No: 0712202761

Role, responsibilities
of a company director
WHEN you become a company director lectively as a board to bind the compa-
you take on whole new set of respon- ny. However, the articles usually entitle
sibilities. Along with your fellow board the board to delegate powers to individ-
members you will set out the strategy of ual directors as considered appropriate.
your business. Here we outline the key In practice, individual directors will nor-
duties that come with being a director. mally carry out many of the company’s
The role of the board activities.

The board of directors of a company is

Statutory duties Brian & Glynn Fraser and Staff congratulates Mr Katsande the COO of OK Zimbabwe for scooping the
Chairperson of the year award at Director Of the Year awards .Working with you has been a real honor
primarily responsible for: Directors need to be aware that they are
• Determining the company’s strategic
objectives and policies
personally subject to statutory duties in
their capacity as directors of a company.
and we value each and every transaction and deal

• Monitoring progress towards achiev-

ing the objectives and policies
In addition, the company as a separate
legal entity is subject to statutory con-
•• Appointing senior management
Accounting for the company’s ac-
trols and the directors are responsible
for ensuring that the company complies
tivities to relevant parties, eg with such statutory controls.
shareholders The Companies Act 2006 codified
• Making the first appointment
The first directors of a company are
certain common law and equitable du-
ties of directors for the first time. The act
appointed at the time of its registra- sets out the general duties of directors,
tion. On registration, the persons named which are:
will be deemed to have been appointed The statutory duties that replace the
as the first directors. Subsequent ap- fiduciary or equitable duty are inter-
pointments are governed by the com- preted in accordance with the previous
pany’s articles of association but any case law, which remains relevant. These
shareholders agreement should also be statutory duties cannot be seen in iso-
checked. Typically the articles will pro- lation because in addition a director will
vide for the board of directors to fill any be subject to a wide range of regulation
casual vacancies or to appoint addition- and legislation including the Insolvency
al directors up to the maximum number Act 1986, the Company Directors’ Dis-
specified by the articles. qualification Act 1986, the Health and
On appointment, a new director will Safety at Work etc Act 1974 and the
be asked to provide certain personal in- Corporate Manslaughter and Corporate
formation (full name, address, date of Homicide Act 2007.
birth, nationality, country of residence, The company secretary as chief ad-
former names and business occupa- ministrative officer will be responsible Our exquisite furniture can be found in hotels, lodges, safari camps, restaurants as well as homes and offices.
tion) to be included in the relevant form for the performance of many of the ad-
which the director is required to sign to ministrative duties imposed under the
signify consent to act as a director. Companies Act 2006. A private com-
It is possible for a director to file a pany is not required to appoint a com-
service address at Companies House as pany secretary and where no company
well as his or her home address. It will secretary is appointed the duties and
be the service address (which can be responsibilities of the company secre-
the registered office of the company) tary will fall on the directors.
that appears on the public record. The Directors may be liable to penalties if
director will be reminded to acquire the the company fails to carry out its statu-
share qualification (if any) specified in tory duties. However, they may have a
the articles. defence if they had reasonable grounds You can now access all publications on a secure link:
Additionally, the director will give a to believe that a competent person had digital.alphamedia.co.zw
general notice of any interests in con- been given the duty to see that the stat-
tracts involving the company. Directors utory provisions were complied with.
of quoted plcs are required to declare One of the main statutory responsi-
their interest in the company’s shares bilities falling on directors is the prepa-
under the disclosure and transparency ration of the accounts and the report of
rules. the directors. It is the responsibility of
On a practical note, the new director the directors to ensure that the compa-
should make sure that he/she receives: ny maintains full and accurate account-
a copy of the company’s memorandum ing records.
and articles of association; details of the This includes the preparation of a bal-
business and affairs of the company, eg ance sheet and a profit and loss account
recent board minutes and management for each financial period of the com-
accounts; and the statutory reports and pany, and the presentation of these to
accounts for the past two years. shareholders and, subject to various ex-
Powers directors have emptions, the filing of the accounts and
report of the directors with the Registrar
The directors are generally responsible of Companies.
for the oversight of the company and
they may exercise all the powers of the
Liabilities
company. However, the extent of their A company director can be held person-
authority may be constrained by the ally liable for losses incurred by a busi-
Companies Act 2006 and the articles ness which are proven to be the result
of association. For example, articles of board decisions, or a failure act prop-
of association often include provisions erly. For this reason Directors Liability
and restrictions on borrowing by the Insurance is an essential protection for a
company. company director. — Institute of direc-
Generally, the directors must act col- tors. com

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All queries and feedback on hotline

Loreen Gwatidzo 0737 185 178
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or email: [email protected]

Some of the delegates at the award giving ceremony.

B10 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

DOYA

ZimCode unpacked...
THE Zimbabwe corporate governance code •• Corporate
Board chairman limits such as the USA and India use the ‘comply or
(ZIMCODE 2014) was introduced in April 2015 in power should not be concentrated else’ approach to corporate governance. The
an effort to incorporate corporate governance in one person European Union, the UK, Kenya and other coun-
in Zimbabwe and improve the performance of
organisations.
••Confl
The overarching role of the board of directors
ict of interest
tries use the ‘comply or explain’ approach whilst
Zimbabwe uses the ‘apply or explain’ approach
It has nine chapters and each chapter has a
preamble, principles and recommendations. The
••Corporateremuneration
Executive
disclosure
to corporate governance codes. However, there
is a general concern from the public over the
preamble summarizes key legal issues relevant
to the governance element whilst principles
• Conflict prevention
The ZimCode is driven by the desire to em-
feasibility of the ‘apply or explain’ approach
considering the Zimbabwean context. They want
ensure that the country is attractive for both brace good corporate governance practices in to know if the ZimCode has any ‘teeth’ or if it is
local and foreign direct investment. There are Zimbabwe. It takes into account the Zimba- another ‘toothless bulldog’. In order to address
also recommendations that are derived from bwe’s unique socio-economic and political en- these concerns there is need to analyse the var-
the principles. ZimCode recognizes law as the vironment and recognizes that, ‘one size does ious corporate governance codes in detail.
foundational source of corporate governance on not fit all’. The ‘comply or else’ is a mandatory approach
which voluntary codes are built. The ZimCode The ZimCode aims to minimise corporate col- to corporate governance. It is often described
is applied to all business entities. Sectors that lapses and instil discipline within the business as a ‘one-size fits-all’ approach since ‘uniform penalised by the regulator. Penalties could be in
require specific codes on corporate governance sector by establishing minimum standards for standards’ are prescribed for all companies. the form of fines levied on the corporation or its
should make sure that such codes derive their corporate leadership. It raises the bar on corpo- Regulators prescribe a set of rules which all directors as well as imprisonment of its officers.
main principles from the ZimCode. rate governance above legal stipulations on the companies are required to comply with. The harsh penalties and mandatory compli-
Notable highlights of the ZimCode include the concept. These rules are generally introduced through ance system is what encourages many people
following: There are various approaches to corporate legal statutes. If a company does not comply to quickly conclude that this approach is what
• Multiple directorship is discouraged governance codes in the world. Some countries with the rules then that company is liable to be Zimbabwe needs.
Nevertheless, the ‘comply or else’ approach
does not necessarily promote good corporate
culture as evidenced by research which shows
that most mandatory systems often lead to
‘box ticking’ behaviour. Companies pretend
to embrace good corporate governance when
they fear penalties but their behaviour does not
cultivate a genuine adherence to good corpo-
rate practices. They also tend to go back to their
‘comfort zones’ once they feel that regulators
are not in sight. In the long run no one takes
ownership and responsibility of corporate gov-
ernance and that becomes the entity’s culture.
In addition, reality has also shown that one size
does not always fit all and considering the di-
versities in our economic sector, it leaves a lot
to be desired.
The shortfalls of mandatory regulations made
it necessary for ZimCode to opt for a more re-
warding approach to corporate governance. The
‘apply or explain’ approach is a reformulated
version of the ‘comply or explain’ approach. It
is a soft regulation which encourages individu-
als and corporates to take responsibility and
ownership of corporate governance. Entities are
!Subscribe now and enjoy amazing rates! given a set of standards to follow, but they’re
not mandated to comply with everything. They
have the liberty to choose principles that apply
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However, they are expected to explain and be
Duration Daily 1 month 3 months 6 months 12 months able to justify the reasons behind their choic-
es. This gives flexibility to companies to apply
NewsDay 0.50 9.00 25.00 46.00 85.00 corporate governance principles without being
compelled to do so. Under this ‘apply or explain’
Zimbabwe Independent 1.00 5.00 14.00 25.50 50.00 approach, explaining is equal to compliance
as entities are required to provide satisfactory
The Standard 0.50 3.00 7.00 13.00 25.00 explanations on what has actually been done
to implement the principles of the ‘ZimCode’
Combo 15.00 40.00 75.00 140.00 and to give adequate reasons for not apply-
ing. Therefore this approach is equal to indirect
cohesion.
USD Hard copy subscription rates It is more practical to go with the ‘apply or
explain’ approach because of its flexibility. The
Duration Daily 1 month 3 months 6 months 12 months ZimCode recognises that gradual change could
yield better results than radical approaches that
NewsDay 1.00 26.00 78.00 156.00 312.00 can face much resistance which also promotes
‘box ticking’ practices. The ‘apply or explain’
Zimbabwe Independent 2.00 8.00 26.00 52.00 104.00 approach has ‘teeth’ since companies have to
provide adequate explanations for not imple-
The Standard 1.00 4.00 13.00 26.00 52.00 menting certain principles; therefore it’s not just
about giving any explanation.
Combo 38.00 114.00 228.00 456.00
Corporate governance has gained so much
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the government such that companies that do
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higher.
Harare: It is therefore important for every company
The Subscription Manager, P.O. Box 10460 Harare to do a reality check. That means looking at
No. 1 Union Avenue Building, 1 Kwame Nkrumah Avenue, 3rd Block 1st Floor what the company has against what ZimCode
Tel: (024) 755373/4, 773930-8 Cell: 0773 207437 / 0737 185178 proposes i.e. the size and depth of the gaps.
Email:[email protected] Once the data is at hand, a practical programme
should be put in place to fill the gaps. This then
Bulawayo: enables each entity to provide a satisfactory
1st Floor Amtec Building, Cnr 12th Avenue & R. Mugabe Way, Bulawayo | Tel: (029) 883184/9 explanation on what they have done to fill the
gap as well as their future plans. Since ZimCode
Here are the places where you can pay to activate your subscription! NOSTRO accounts: is not prescriptive, companies can start from
Account No: 9140001034765 - FCA Domestic where they are until they reach the desired goal.
Account No: 9140001034757 - FCA Export Ownership and Control issues have led to
disagreements in many companies. It has been
noted that concentration of power in one person
often leads to corporate failures. The ZimCode
proposes a balance of power among the three
tripod of corporate governance — shareholders,
management and board of directors.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 B11

DOYA

Women in leadership roles

SINCE 2015 the number of women in senior much lower than France or Norway, where the greatest challenge preventing the eco- themselves overtaken and left behind.
leadership in business has grown and diversity businesses average more than 40% female nomic gender gap from closing is women’s This is when women’s ability to empathise
in leadership is good for business; representation on a board of directors. under-representation in emerging roles. In and seek compromise becomes a powerful
Beyond business, female leaders from Diversity in leadership is good for business. cloud computing, just 12% of professionals asset. If technology is supposed to service the
across generations are working together For example, a Harvard Business School report are women; in engineering and Data and AI, whole of humanity, the big decisions need to
to find new solutions to the world's biggest on the male-dominated venture capital indus- the numbers are 15% and 26% respectively. be taken from a balanced perspective.
problems; try found that “the more similar the invest- Unless the sector can balance the ledger by
The tech sector must attract more women ment partners, the lower their investments’ making roles attractive to women, then we The power of politics
to unlock the potential of the Fourth Industrial performance”. In fact, firms that increased risk missing out on the full potential of the More women are now being elected to legisla-
Revolution and ensure technology is devel- their proportion of female partner hires by Fourth Industrial Revolution. tures across the world: women hold 25.2% of
oped from a balanced perspective. 10% saw, on average, a 1.5% spike in over- Organisations need to ensure there are parliamentary lower-house seats and 21.2%
In an ideal world, it shouldn’t matter all fund returns each year and had 9.7% more sufficient rungs on the ladder to help women of ministerial positions, compared to 24.1%
whether there’s a woman running the IMF, profitable exits. climb into management positions. We need and 19% respectively last year. While there is
Microsoft or the Democratic Party. Does an Evolving job needs are empowering women to be open-minded enough to bring in female a long way to go, improving political empow-
SME owner or tech start-up care that it’s a and levelling the playing field. The new service leaders from other industries, who don’t have erment for women typically corresponds with
woman who makes finance more accessible? economy doesn’t rely on physical strength but a tech background. We need to work closely increased numbers of women in senior roles in
If a miner, factory worker or fisherman gets a skills that come easily to women, such as de- with schools and universities to win the argu- the labour market.
better share of the profits and can send his or termination, attention to detail and measured ment that tech isn’t just a male career path. We are seeing women from other fields,
her children to school, are they bothered that thinking. The female brain is naturally wired Technology also has a role to play — and such as ex-Olympic athletes, joining the po-
a woman made it possible? for long-term strategic vision and community responsibility — in promoting diversity in the litical arena. Yet, for those countries and politi-
Bush fires, burst riverbanks, melting ice- building. workplace, given its ability to change work- cal parties — and corporations for that mat-
caps, fatbergs, plastic islands and species The emergence of female leaders can be- ing relationships, encourage transparency and ter —which have never appointed a woman to
extinction: none of these considers the sex of come a centrifugal force for good in the world. connect people around the world. In a period the top position, the suspicion that the system
the perpetrators or decision-makers. Yet, en- For the first time, we’re seeing examples of of constant flux, organisations that prioritise isn’t fair and that the glass ceilings are un-
couraging more women into leadership posi- female leaders emerging from across the gen- a diverse and inclusive culture will be better breakable grows with every election.
tions remains critical in our era and given the erations to cross-weave their knowledge and placed to solve the problems of the future. The survival of the planet requires new
fast-approaching challenges of the future. drive for change. Importantly, there are now Research by Deloitte suggests companies thinking and strategies. We are in a pitched
ambitious and capable women running influ- with an inclusive culture are six times more battle between the present array of resources
Change is coming slowly ential organisations who can activate physical likely to be innovative. By staying ahead of and attitudes and the future struggling to be
The overall number of women in top business change through technology and policy. The re- changes, they are twice as likely to hit or bet- born. Women get it; young people get it. They
roles is still painfully low — only 5% of CEOs cent progress with the circular economy and ter financial targets are creating a whole different mindset.
of major corporations in the US are women – blockchain is a prime example. . This means providing female mentors and Ultimately, the problems we face are not
but there are reasons for optimism. Since 2015 role models, demonstrating trust (rather than technological, but human — the human sys-
the number of women in senior leadership has Tech can lead the way talking about it), creating an environment that tem is broken. People should always be ap-
grown, particularly in the C-suite where the There’s nothing inherently masculine about encourages collaboration, using technology to pointed on merit and the electorate must de-
representation of women has increased from blockchain, artificial intelligence (AI) or ma- break barriers and sourcing innovation openly. cide, but more still needs to be done to give
17% to 21%. chine learning; computers are androgynous Women can lead our sector forward too. all women the best possible chance of rising
Today, 44% of companies have three or more by nature. That said, the tech sector remains Now that technology is all-pervasive, the to the top. If that happens, then I’ll be the first
women in their C-suite, up from 29% of com- heavily dominated by men. traditional sector lines have become blurred. to say that who’s in charge doesn’t matter a
panies in 2015. Corporate America scores According to the World Economic Forum, Brands that cling to the old structures will find jot.— www.weforum.org
B12 advertising supplement to the Zimbabwe independent DECEMBER 11 TO 17, 2020

DOYA

‘Adapt and
redefine’
The current generation of directors, has to
adapt to an evolving business environment
that is characterised by radical changes in
political, social, technological and economic
factors, the chairperson of the Institute of di-
rectors of Zimbabwe (Iodz) Mike Juru has said.
Addressing delegates at the recently held
Director of the Year (DOYA) award ceremony,
Juru said the current COVID-19 pandemic,
which has practically become a part of life,
is shaping a new business environment, an-
chored on technology advancement.
“Clearly, directors have the onerous task
of reviewing how their businesses operate
because, unlike before, crowds are now a big
risk, and, as such, businesses now have to re-
define how they can make money without the
crowds. That’s the ‘new normal’ the current
crop of directors must contend with,” he said.
IoDZ chair Mike Juru (right) with Zacc’s Loice Matanda Moyo after signing the MOU on corporate governance. Juru noted that amidst the current changes,
businesses have to operate mindful of the im-
portance of continuity, underpinned by sus-
tainable business strategies meant to support
and drive companies as going concerns for the
long-term.
“That is why this prestigious event is run-
ning under the theme: “We support the sus-
tainable development goals”.
The seventeen sustainable development
goals (SDGs) are geared towards the protec-
tion of the ecosystem as a whole as well as
ensuring that future generations benefit from
the environment in the same way as the cur-
rent generation.
“It therefore becomes crucial to take a
holistic approach in working towards the
achievement of the SDGs through compre-
hensive governance systems,” said Juru.
IoDZ said it recognises the importance of
the current generation in shaping the future
through leadership that is responsive to the
evolving environment.
“As we can see from the current scenario,
the old adage holds true: ‘Leaders make or
break organisations.’
“For this reason, we are prioritising
strengthening the capacity of current and as-
piring directors. We are aware of the challeng-
es gripping our country which demand that we
equip our old and new generation of directors
with a mindset that upholds the principles of
good corporate governance,” he said.
Juru told delegates that they were witness-
ing far-reaching changes as a result of globali-
sation, the advent of information technology
as well as the development of a knowledge-
based economy.
“IoDZ is aware of these changes and places
value in championing change through corpo-
rate governance training, research and devel-
opment. We have also adopted a solutions-
based approach to solve corporate govern-
ance challenges being faced by directors in
various organisations and institutions,” he
explained.
To reflect on this, IoDZ has various direc-
tor development programmes that set out
the knowledge, skills and mindset required for
effective board and leadership performance.
The programmes are unique in that they
are guided by The IoD Director Competency
Framework, which is designed to promote and
champion the highest standards of profes-
The Herald sional competence.
The framework serves as a guiding measure
for the critical components of a 360 degree
assessment of directors across sectors.
“Mindful of the aforesaid, those who will
receive accolades should take pride in their
achievements as they have exuded the
key leadership elements prescribed by the
framework.”
As an institute, IoDZ takes the initiative of
championing development of sustainable in-
stitutions in Zimbabwe through the imple-
mentation of corporate governance principles.
Meanwhile DOYA have been one of IoDZ’s
flagship events since 1996 .
Byron Chigiji “Since IoDZ is all about instilling a sound
directorship culture in corporates, and state-
owned enterprises, it is important for us to
recognise those who stood out in our board-
rooms: The epitomes of corporate governance
excellence,” explained Juru.
This year nominations came from five award
categories and the judging process was thor-
ough and undertaken by recognised and re-
spected industry leaders.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C1

FBC unveils new vision

and mission statement FBC Holdings Limited (FBCH) is an Investment formation and innovation journey which goes
holding company listed on the Zimbabwe Stock beyond a mere shift of transactions from the
Exchange and whose principal activities are in traditional brick-and-mortar channels to digital
Zimbabwe. platforms. It describes a firm commitment to
The Group offers diverse financial services the digitalisation of the FBCH Group’s end-to-
through subsidiaries that span commercial end value chain processes which are crucial for
banking, mortgage financing, short-term insur- maximising efficiency gains and delivering im-
ance, re-insurance, securities trading and mi- proved customer experience,” Nkala said.
cro-financing. All in all, the FBC Holdings Group “Resultantly, the group has made significant
comprises FBC Bank, FBC Building Society, FBC business adjustments, invested in world-class
Reinsurance, FBC Securities, MicroPlan and systems, embarked on group-wide training and
FBC Insurance. change management, established a digital core
As the global marketplace rapidly and dy- team which is mainly focused on driving the
namically changes, businesses around the digital transformation agenda, amongst a con-
world must evolve in order to adapt to a new siderable number of transformation initiatives.
way of existence and to survive. FBC Holdings “In line with the new digital thrust of the
as a group is no exception. In order to position Group, FBC modelled a new Vision, Mission,
itself as a leading diversified financial services and promise. This venture is a key driver in be-
entity, the FBC group has seen it fit and timely ginning the communication exercise for posi-
to re-calibrate its identity as part of its digitali- tioning the FBC Brand of the Future.”
sation and innovation thrust.
The group has introduced a bold future-fo-
New FBC vision, mission and promise
cused, stakeholder-driven, unique and appeal- Vision
ing Vision, Mission Statement and Promise to Nurture sustainable solutions that enable the
clearly articulate this new direction. financial well-being of the communities we
Speaking to this publication, Hebert Nkala, serve
FBCH Board Chairperson said the introduction Mission statement
of a new vision, mission, payoff line and busi- Deliver a unique customer experience through
ness principles mark the commencement of value adding relationships, simplified processes
the FBC Group’s repositioning exercise which and relevant technologies.
aims to ensure that the organisation is future- Our promise
fit and well aligned to the current and future “You Matter Most.”
customer aspirations. The group’s renewed identity revolves around
“Over the years, FBC Holdings has evolved the customer, who is at the core of the busi-
significantly in size, focus, and strategic direc- ness’ existence.
tion. In 2017, we embarked on a digital trans- Regardless of background or social standing,
formation journey which set the beginning of a that customer must know that their satisfac-
whole new strategic focus for the organisation. tion and happiness is what is the most impor-
FBCH Board Chairperson Hebert Nkala We commenced a group-wide digital trans- tant to us.
C2 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020
 advertising supplement to the Zimbabwe independent DECEMBER 11 TO 17, 2020 C3

FBC HOLDINGS

Trading update
for the third
quarter 2020
Tichaona Mabeza

It is my pleasure to present to you the third quar-

ter trading update for FBC Holdings Limited un- Deputy Group CE head Trynos Kufazvinei FBCH Company secretary Tichaona Mabeza
der the Covid-19 induced challenging operating
environment.

Operating environment
During the period under review, economic activity
remained generally constrained due in part to the
Covid-19 pandemic, which has not abated, while its
adverse impact continues to negatively affect busi-
ness activity. Consequently, this has also negatively
impacted on the volume of transactions the group
has processed during the quarter under review. Key financial highlights
Although hyperinflationary conditions continue
to weigh heavily on the Zimbabwean economy,
we have witnessed a marked reduction in both the
year-on-year inflation, as well as the month-on-
month inflation.
On a year-on-year basis, average consumer pric-
es increased by 659,40% in September 2020, com-
ing down from 761,02% in August 2020, and 838%
recorded in July 2020. On a month-on-month ba-
sis, average consumer prices increased by 3,83% in
September 2020, down from 8,44% and 35,53% in
August 2020 and July 2020 respectively.
From July 1, 2020 to September 30, 2020, the local
currency (ZWL) depreciated by approximately 28%
against the United States dollar.
However, in the last two months of the third quar-
ter of 2020, the ZWL started appreciating, gaining
9% in August and a further 2% in September, clos-
ing the month of September at ZWL81,43 to the US
dollar.
The Reserve Bank of Zimbabwe in its mid-term
monetary policy statement extended by one year
the compliance date for the minimum capital re-
quirements set by the Monetary Policy Committee
on the January 17, 2020.
In making this extension, the Reserve Bank of
Zimbabwe noted the impact of the prevailing chal-
lenging environment worsened by the negative im-
pact of the Covid-19 pandemic.

Performance review: Inflation adjusted

Despite the challenging operating environment, FBC
Holdings Limited recorded a 59% growth in total
income to ZWL6,3 billion, compared to same pe-
riod last year. The income was mainly driven by a
strong growth in net trading income and net interest
income.
Administrative expenses for the period were up
33% to ZWL3,2 billion on the back of a devalua-
tion of the local currency. Group profit before tax
increased eightfold to ZWL2,7 billion.
The Group’s statement of financial position as at
September 30, 2020 increased by 19% to ZWL29,5
billion from the December 31, 2019 position of
ZWL24,8 billion. Equity attributable to shareholders
of the parent company increased by 52% to ZWL6,1
billion from ZWL4 billion as at December 31, 2019,
supported by improved retained revenue reserves.

Group digital transformation

The group’s commitment to enhancing customer
experience gathered momentum in the period under
review with a number of exciting digital onboarding
capabilities introduced in our targeted niche markets.
The group launched Noku, a smart Digital As-
sistant equipped with the capabilities to assist cli-
ents in accessing banking and insurance services on
WhatsApp at any time of the day.
FBCH also introduced a WhatsApp capability on
YAKO, our digital insurance onboarding product
which allows vehicle owners to purchase Third Party
Motor Insurance instantly using a mobile device.
Over the three months period, the above innova-
tions resulted in our banking and insurance subsidi-
aries improving the pace of customer acquisition.

Outlook
The emergence of a second wave of Covid-19 pan-
demic in countries which are our major trading part-
ners and source of tourists for the tourism sector will
no doubt impact negatively on the recovery pros-
pects for our economy.
We nevertheless remain cautiously optimistic that
normalcy will return, as we continue to activate,
review and strengthen our business continuity and
disaster recovery plans.
By order of the board, September 2020.

Mabeza is the company secretary

C4 advertising supplement to the Zimbabwe independent DECEMBER 11 TO 17, 2020

FBC HOLDINGS

Bold innovations,
offerings at FBC
Excerpts of a one-on-one interview JM: You are absolutely correct. FBC Holdings ance in the comfort, safety and privacy of their
with FBC group Chief Executive John has been on a focused digital transformation homes 24/7. Over and above just buying insur-
Mushayavanhu (JM, pictured) on the path, we are very deliberate in our intent on the ance, they can also purchase Zinara licence disks
same. This comes out of the realisation that our and these come with a free hospital cash plan
exciting developments and innovations. customers are changing with the evolution in cover and delivery service right to the customer’s
trends. door step. ing established all these solutions and capabili-
Question: Welcome John and thank you for al- Across the group and units, we have innovated FBC Bank introduced a digital account-open- ties, we are rationalising our branch network as
lowing me to talk to you around our product offering introducing novel ing solution which allows our customer to open we migrate our customers to digital platforms
JM: You are most welcome it is my pleasure to solutions tailor-made to the needs of our cus- the full set of personal accounts without ever whilst eliminating paper–based processes.
be talking to you, I hope I find you well. tomers and their uniqueness. From the insurance having to visit the branch or even use paper. Q: The route you have taken requires solid
Q: The group has been on a serious digitali- side we launched the popular yakO! product Our partnerships with other industry payment information technology back up, how are you
sation and innovation trust. Please share with us which allows customers to buy vehicle insurance partners and platforms has seen us being one managing the technological support to drive all
this change and how it is being demonstrated in and licences using their mobile phone. of the first banks to hook up on the Zipit Smart these offerings?
your businesses. The Zimbabwean market can now buy insur- platform and the Send-to-Cell capabilties. Hav- JM: We have invested significantly in technolo-
gy and our systems over the last couple of years.
We have upgraded our core banking system
Flexicube to the latest version on the market,to
ensure that our customers are well served
through a minimum turnaround and downtime.
Our IT structures and systems are geared to
support the ongoing digitalisation programme.
Quite a lot of capital investment has been chan-
nelled towards ensuring that our hardware and
software are capacitated to meet the demand
emanating from the increased number of cus-
tomers and transactions coming through digital
platforms.
Q: It is impressive to note that the number
of customers is increasing through these smart
solutions. How do you ensure the customers are
also well serviced given that 24/7 is fast becom-
ing a standard?
JM: One of our business principles we have
adopted as we give the FBC Branch revitalised
position is customer obsession. Everything we
do is centred on the customer. The digital solu-
tions we have introduced have created a new
type of customer, the “digital customer”.
To support these customers, we have estab-
lished a fully-fledged Customer Experience di-
vision that houses a state-of-the-art Contact
Centre which operates 24 -hours a day. This
set-up allows us to promptly attend to customer
service issues in real-time through a wide range
of platforms. “You Matter Most” is our new credo
and our overall goal is to continuously delight the
customer by creating value through simplified,
convenient and low-cost products and services.
Q: The transition from the traditional way of
doing business to the new normal is obviously
not an overnight event. How are you implement-
ing this transition?
JM: The Group embraced e-commerce way
back in 2010, setting itself on the path to lever-
age technology and innovation in its approach to
business to improve operations, customer ser-
vice and competitiveness.
In 2017, FBC embarked on a digital transfor-
mation journey which set the beginning of a
whole new strategic focus for the organisation.
This was supported by a wholesome stakeholder
involvement to ensure buy-in and cooperation.
The new Vision, Mission and Promise introduced
to you today was a culmination of that interac-
tion with staff members so we intend to take
everyone along with us on this exciting journey.
Change management is an integral component
which will help drive the requisite change needed
to adapt to the new normal.
For our customers we have adopted a sus-
tained marketing communication designed
to educate them of the key changes coming
through product and brand adverts in an inte-
grated marketing manner. These exercises are to
be sustained into the future to ensure optimum
appreciation and buy-in of these key changes
that are taking place within the FBC Group.
Q: The group continues to grow in size. Tell us a
little more about the latest additions to the FBC
family?
JM: It is the commitment that we have to the
needs of the communities we operate in that
give us the drive to continue offering more cus-
tomer driven solutions. We now have FBC Ven-
ture Capital as part of the FBC group to offer
innovative financing solutions for entrepreneurs
and SMEs. As part of our regional expansion
drive, we have expanded into Botswana under
the FBC Reinsurance arm of the business.
We are also looking at other opportunities
further north on the continent, leveraging on our
proven competencies and strategies.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C5

FBC HOLDINGS

FBC readies for new vision

our everyday business. This role is to deliver a sibilities and having a positive impact on the fi- in recent months, including the Group Chief Ex-
unique customer experience through value add- nancial aspirations of our customers. We are ful- ecutive John Mushayavanhu.
ing relationships, simplified processes and rel- filling this through the creation of partnerships to Apart from our competent and professional
evant technologies. satisfy the ambitions of our stakeholders. management teams, our boards across all com-
We have come up with bespoke market so- The brand in this regard has continued to grow panies are manned by women and men of high
lutions that drive financial inclusion through low from strength to strength and we look forward to repute. Our people development strategy is de-
cost, customer focused products and services maintaining this trajectory. Our profitability has signed to encourage continuous acquisition and
that create unique value to our customers. also been consistent and our market share con- application of knowledge amongst our people.
We note the rapid changes occurring in the tinues to grow. We anticipate a significant in- Q: Covid-19 crisis hit the market unexpected,
operating environment and these have redefined crease in the market share we command on the businesses were not prepared for it, how did
the customer journeys. It, it is thus imperative back of the digital transformation that we have you respond to the pandemic and how has your
that our business be aligned to the new devel- embarked on. business been affected?
opments so that we also remain relevant and Q: Lifelong learning and entrepreneurship is HN: Yes indeed Covid-19 hit the world by
profitable as a business. one of your business values, has this been em- storm and we are no exception. Covid-19 has
Q: How is the FBC brand performing in the braced in across the business? adversely affected our day-to-day operations
market? HN: Our people are continuously developing and disrupted the way we conduct business.
HN: From where I sit, the brand is trailblaz- through continuous acquisition of knowledge, While all sectors of the economy were af-
ing and very consistent in its performance in this made FBC one of the financial institution fected by the Covid-19 pandemic, there is
all business facets. We maintain a network of with the most professionally accomplished variation in terms of severity, with sectors
over 50 branches group-wide that are strategi- workforce. such as tourism, non-food manufacturing,
AS FBC transitions and embraces cally placed within a number of cities across the The leaders in the organisation have led by mining, financial services, transport and dis-
digitilisation, FBC Group Chairperson length and breadth of the country. example in that aspect, we have four executive tribution and education adversely affected.
Hebert Nkala (HN, pictured above) We strongly believe in creating endless pos- personnel who have attained doctoral degrees To C10
unpacks the process and the new
vision.
Question: You have been at the helm of the
FBC Group for twenty three years now and you
have seen it grow into what it has become to-
day: a force to be reckoned with in the financial
services industry. It seems the organisation is
undergoing some changes … Tell us a little about
this.
HN: Over the years, FBC Holdings has evolved
significantly in size, focus, and strategic direc-
tion. The Group embraced e-commerce in 2010,
setting itself on the path to leverage technol-
ogy and innovation in its approach to business
to improve operations, customer service and
competitiveness.
In 2017, FBC embarked on a digital transfor-
mation journey which set the beginning of a
whole new strategic focus for the organisation.
The FBC Holdings Group commenced a digitali-
sation and innovation journey which would see
us taking a long hard look at ways to remain rel-
evant and profitable in a rapidly evolving global
marketplace. It encapsulates a firm commitment
to the transformation of the FBCH Group’s op-
erating business model and DNA, end-to-end
business processes which are crucial for en-
hancing productivity, lowering costs, maximis-
ing efficiency and delivering improved customer
experience. The group established an industry-
vision horizon with all key stakeholders and in
particular staff members.
Q: The FBC group has introduced a new vision,
mission and pay off line, what is the rationale
behind this development?
HN: The launch of the vision mission and pay
off line new is in line with our brand repositioning
exercise anchored on our digitalisation and in-
novation thrust. The new strategic statements
are an affirmation of our drive to recalibrate our
business making it future focused, stakeholder-
driven, unique and appealing to the markets we
serve whilst also creating resonance with the
new digital transformation thrust that the group
is embarking on.
The FBCH Group’s repositioning will thus be
driven by the new vision, mission and customer
promise which is pivoted around the most cen-
tral stakeholder in our business and that is the
current and future FBC Customer. Our commit-
ment to our valued customers has always been
at the core of the entire group’s business opera-
tions but this move serves to amplify the role of
the customer, particularly as the world at large
drifts towards a virtual environment.
Let me take this opportunity to unpack the
new Vision, Mission Statement and Payoff Line
for you:
Vision
“To nurture sustainable solutions that enable
the financial well-being of the communities we
serve”.
Mission statement
“To deliver unique customer experience through
value adding relationships, simplified processes
and relevant technologies”.
Pay-off line
“You Matter Most”
Q: Being at the helm of a financial power-
house, what role do you see FBC playing in the
economy?
HN: Our role is very clear as expounded in our
mission statement which defines what we do in
C6 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

Banks and Banking Survey 2020:

identifying systems and processes where digi-
tal integration will deliver operational benefits
for the FBC Group and our valued stakeholders.
Our overarching goal is to keep pace with global

FBC Bank crowned overall winner

trends in the marketplace and become a fully-
fledged digital and social bank that adapts to the
current and future operating environment.
With the advent of new technology, it is ap-
parent that the rulebook for financial institutions
FBC Bank Limited, the commercial ment for the bank. I wish to acknowledge and across the globe must align with these changes.
banking unit of FBC Holding was dedicate this award to our valued customers We have introduced into the market, revolution-
recently crowned the 2020 overall because “they matter most”. This award is also ary and trailblazing solutions that maximise cus-
a recognition of the effort of our employees at tomer convenience and enhance our customer
winner of the prestigious Zimbabwe FBC Bank. experience offering.
Independent Banks and Banking The women and men at FBC have been re- We have introduced a virtual account open-
Survey awards in recognition of the warded for their hard work and commitment to ing platform which allows individuals to open
sterling business effort demonstrated the brand. It is also a demonstration that as a bank accounts via the FBC Mobile Banking
by the bank. Speaking in an interview bank we have remained focused on our strategic Application,USSD (*220#) and Whatsapp plat-
goals and it has paid off. The innovation and non- forms within 2-5 minutes. With the outbreak
after the virtual award ceremony funded income generation has seen us reigning of Covid-19, the need to go digital has become
held under the theme “Re-imagining above the set bar and emerging as the overall even more important to stem the spread of the
Banking: Beyond Survival”, Webster winner. It is indeed a milestone achievement for virus.
Rusere (pictured), the Managing us. The FBC digital on boarding is a fully-fledged
Director of FBC Bank shared a a few Q: Talking of innovation, we have seen in digital banking platform which allows anyone to
recent time some exciting products being enjoy the convenience of opening five (5) classes
thoughts on the recent developments launched. What is the motivation behind all this? of personal bank accounts remotely at any time
at FBC Bank winner of the 2020 Banks and banking awards. WR: FBC is on a digital revolution path. From of the day remotely. The account opening pro-
What does this mean to the bank? the year 2017, we have been pursuing and im- cess is seamless, as it allows clients to be on-
Q: The bank has been crowned the overall WR: This is a very commendable achieve- plementing incremental innovations aimed at boarded instantly and be able to transact imme-
diately after successfully opening an account(s)
digitally
Our customers can now open any of the fol-
lowing account(s) remotely from wherever they
are, as long as there is mobile phone network
connectivity at any time of the day 24/7 without
any need for paper:
•• Mobile Wallet
Instant Card Account
••Savings Account
Current Account
•FCA Account
We also introduced Noku, a smart Digital As-
sistant who has been equipped with the capa-
bility of assisting clients with executing banking
and insurance services on Whatsapp at any time
of the day…24/7. Noku also allows anyone to
open an FBC Instant Account or Mobile Moola
wallet on WhatsApp without visiting a physical
branch.
Q: What has been your role is driving financial
inclusion?
WR: We have put in place a robust frame-
work that will allow us to provide financial ser-
vices to all citizens regardless of their economic
demography. Our financial inclusion strategy is
anchored on innovation, financial literacy and
consumer education, prioritising under-served
markets.
We have introduced the FBC Mobile Moola in-
stant card, a low-cost card-based account with
minimum know-your-customer (KYC) require-
ments. The card based account has no month-
ly service fees and is linked to the FBC Mobile
Banking platform Mobile Moola.
The card can also be linked to any mobile wal-
let (EcoCash, One Money and Telecash). This has
allowed us to extend affordable banking to the
lower income segments.
We are also extending our banking services
distribution network for the convenience of cus-
tomers via partnerships with strategic agents,
through our Agency Banking arrangement.
Q: The bank has the best international card in
the market, the FBC Mastercard prepaid card.
How does this product work?
WR: Let me first highlight that FBC Bank
championed the return of the mastercard brand
into Zimbabwe in 2010. The product is FBC’s
most popular over-the-counter card for both
existing and new clients. Just bring your ID, proof
of residence, pay slip, passport size photo and
a $15 initial deposit to secure your chip and PIN
prepaid card instantly.
You can also access cash from the ATM, swipe
at the point-of-sale or shop securely online.
We have a personal as well as a business card
to meet the needs of business travellers. In the
near future our customers will soon be able to
digitally open a FBC Mastercard prepaid account.
Q: What can the market expect from FBC
bank in the future?
WR: We will continue to provide innovative
products supported by seamless service to our
customers as we consolidate the digitalisation
trajectory that the business has embraced. I as-
sure the market that FBC will continue to seek
future-fit solutions in sync with the new normal
as well as strengthen relationships with our cus-
tomers for mutual benefit.
Q: Any parting words to your customers?
WR: Certainly……To our customers “Thank
you for the support during the year 2020, we
have experienced unprecedented developments
in the environment but you remained loyal. Let
us be extra vigilant of COVID 19 protocol as we
enter the festive season. I say “Happy Holidays
to you all and all the best for a prosperous 2021.
 advertising supplement to the Zimbabwe independent December 11 TO 17, 2020 C7

FBC HOLDINGS

FBC Bank wins prestigious digital award

FBC Bank has been awarded the Best Digital Africa (DBA). cation celebrates organisations from across and development as well as the use of pio-
Bank and Best Mobile Banking Awards 2021 by DBA is a prominent publication focusing on Africa that have stood out from their peers neering technology to support their business
leading pan-African publication Digital Banker digital banking in Africa. Each year the publi- with outstanding innovation, infrastructure To C12

... as group sets up digitalisation, innovation unit

FBC Holdings has embarked on a digital transformation journey which entails repositioning the group as a digital and innovation oriented entity. As part of this process, FBC has set up a Digital Value
Office (DVO) within its structures to drive the digital transformation of FBC. The DVO has now evolved into a fintech company to provide services to FBC as well as the market at large, as a neutral
standalone company. From left to right: Agrippa Mugwagwa, Programme Lead Digital Value Office; Priscilla Sadomba, Change Management, Digital Value Office; and Clever Haparari, Technical Lead
, Digital Value Office.
C8 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

FBC launches ground-breaking DIGITAL commerce is taking centre stage, as the

ultimate response to the hazards ushered in by the
Covid-19 pandemic.
Having always been ahead of the curve in inno-

digital banking, insurance products vation and technology adoption, FBC has been on
an accelerated transformation path over the last
two years, culminating in the launch of its electronic
know-your-customer solution in March this year.
The eKYC platform enables FBC customers to sign
up various products from the financial services group
such as insurance and banking products.
The group launched a digital insurance product
yakO in March as the Covid-19 lockdown started.
The product allows a customer to buy insurance and
license their vehicle on their mobile phone using ei-
ther the US dollar code *220#, the Mobile Moola app
or Noku the digital assistant on 0776670211.
In early August this year, FBC enabled new and
existing customers to open different types of ac-
counts using their mobile phone.
One can open a wallet using *220# in less than two
minutes and start transacting immediately receiving
and sending money, buying airtime and paying bills
without visiting the bank.
To open a full banking account one can download
the FBC Mobile Moola app from Google Playstore or
Apple Store, then go through a few easy steps to up-
FBC has been on an accelerated transformation path over the last two years. load their details and documents.
The full range of personal accounts such as sav-
ings, current and foreign currency account are avail-
able on the platform and one can transact immedi-
ately upon completion, a process that is ordinarily
less than five minutes.
This makes FBC the first bank to enable custom-
ers to open a full banking account digitally without
submitting papers at the branch in Zimbabwe, and all
this in less than five minutes.
The innovation could not have come at a more
appropriate time in light of the Covid-19 pandemic,
which has seen an upsurge in the demand for digi-
tal and electronic commerce solutions to limit the
spread of the Corona virus.
The banking group is utilising a number of leading
edge technologies such as facial recognition, optical
character recognition and concurrent real-time ap-
plication programming interfaces to extend unparal-
leled convenience to the customer.
Apart from providing a safe way of accessing
banking services from anywhere 24X7, FBC has
radically lowered the cost for the customer. By ena-
bling everyone with access to banking services from
anywhere, FBC is contributing to financial inclusion.
— FBCH

FBCH Digital Marketing manager Tamuka Zowa

 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C9

FBC HOLDINGS

Vehicle
insurance
made
easier
with
yakO! yakO product team on a sales blitz in Mutare.

YAKO! is a revolutionary digital insurance ser-

vice which allows anyone to purchase third party
motor insurance instantly using a mobile device
such as smart phone, tablet or feature phone
(kambudzi). In a bold move, FBC Insurance has
repackaged yakO!, introducing new and exciting
features.
Commenting on the new product, Patrice
Chikuyo Head of Business Development said the
revamped yakO offering has been exceptionaly
designed to provide relevant solutions to cus-
tomer needs in the current environment.
The novel service will enhance FBC Insurance
Company’s competitiveness in the third party
motor Insurance space and across the entire
motor vehicle insurance sector.
"YakO! was initially launched on January 27
2020 as the first major group digitalisation ini-
tiative just before the commencement of the
Covid-19 lockdown. The innovative service has
been enhanced with new value-added services.
yakO! now allows our customers to pay for
Zinara Licence discs and they have different lo-
cal payment options for their convenience.’ The
issuing of licences is also now complemented
with free delivery of the licence disc to custom-
ers, bringing more convenience to the insuring
public. Upon purchasing of their insurance and
Zinara Licence, a client is now able to receive
their Zinara Licence disc at their selected deliv-
ery address. He also added that the enhanced
digital insurance service now offers hospital cash
back benefits for clients if they get hospitalised.
"In the event that a registered policy holder
is involved in an accident with a registered and
insured vehicle. yakO! will pay daily cash ben-
efits to the policy holder should they spend
more than 48hrs in hospital due to a bodily injury
caused by the motor accident. The Hospital cash
plan is aimed at covering incidental expenses in-
curred during hospitalisation which are normally
not covered under health insurance, " he added.
All registered owners of private cars, com-
mercial vehicles, buses, motorcycles, trailers
and caravans can buy third-party vehicle insur-
ance and Zinara licence disk using yakO!
Anyone can access the newly enhanced digi-
tal insurance service by dialling *220# wherein
they have an option to choose between Banking
Services and Insurance Services. Clients must
enter Option two i.e. Insurance Services to ac-
cess the Insurance platform. They must select
the Third Party option and proceed with the in-
structions. Other insurance options appearing on
the menu are not yet live. One can also access
yakO through Noku the FBC digital assistant on
0776 670 211 via the WhatsApp platform.
Vehicles that qualify for this platform are
those registered in Zimbabwe which are not ex-
empt from paying third party insurance. It cov-
ers motor vehicles for a minimum period of four
months or one term. All in all, yakO! comes with
customer-driven benefits which are not avail-
able on traditional insurance services offered by
traditional insurance players.
The motoring public can now enjoy free Zinara
licence disc delivery, free Hospital Cash Plan
Policy, convenience through purchasing instant
insurance anywhere anytime, 24 hours a day/7
days a week.
A subsidiary of the FBC Holdings Group, FBC
Insurance is the first company in Zimbabwe to
introduce usage-based insurance through My-
Drive. The insurance company continues to be
a leader in providing customer-driven and in-
novative services as part of the FBC Group's
digitalisation.
C10 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

FBC Group promotions in pictures ...

From left: Shelton Chaparapata, Mkhululi Ngwenya, FBC Bank MD Webster Rusere, Tariro Matshalaga, FBC Bank Southerton Branch clients Mr and Mrs Cephas Rundogo pose for a photo
Mumbamarwo Gonorenzou, FBC Group CE John Mushayavanhu, Dr George Danda and Masautso Chipsan. with their brand new acquisition, a brand new Datsun Go, courtesy of FBC Bank.

FBC group readies

for new vision
From C5
In view of the Covid-19 risk and the need to
manage or mitigate the spread of the pandemic,
the business has implemented solid responses
in mitigating the impact of the pandemic on FBC
Holdings employees, their families, our custom-
ers and the operations of the business as part of
our Business Continuity initiatives and risk miti-
gation measures.
We have lent a helping hand by donating
10 000 test kits and Personal Protective Equip-
ment which were distributed to hospitals as we
joined the fight in combating the spreading of
the Coronavirus. Covid-19 still remains a huge
threat to all of us. We are noting a second wave
with new cases being recorded. We absolutely
must not let our guard down.
Let us all be extra vigilant and continue to
observe the laid down precautionary measures
in order to mitigate the risk of Covid-19. Where
possible, stay home, stay safe and , save lives!!
Q: As you look into the future and the evolu-
tion that the brand is going through to future- fit
the organisation, what should your customers
expect from FBC?
HN: First and foremost, I wish to extend my
profound gratitude and appreciation of the sup-
port our customers have extended to us over the
past twenty three years.
The journey has not been easy but we thrived
under the circumstances. Going forward, our
customers should expect exciting develop-
ments. We are repositioning the FBC brand to be
agile and future-fit for the new normal.
Our deliberate intent on digital will see our
customers enjoying lower cost to accessing fi-
nancial services and an enhanced customer
experience through use of new technologies,
systems, systems and culture, which are all fo-
cussed on the customer. .
Q: Finally, any parting words to your stake-
holders, Mr Chairman?
HN: Again, I express my heartfelt gratitude
to our valued customers and all stakeholders
across all our business units. You have invested
your trust in the FBC brand and we will continue
to ride on your aspirations to provide you the
services you deserve.
Let me also take this opportunity to wish all
our customers, staff, our shareholders and all
other stakeholders a happy holiday season and
a prosperous 2021.
The confidence on the brand is reflected by
the various awards we have won recently:
• Overall Best Performer in the 2020 Banks and
Banking Survey.
• Microplan Financial Services, our microfinanc-
ing unit won the Contact Centre Association of
Zimbabwe (CCAZ) “Excellence in Microfinance
Sector” Award recently.
• FBC scooped the Most Innovative Organisa-
tion 1st Runner-Up Award at the recently held
CCAZ Service Excellence Awards.
• Overall Best Corporate Governance Disclo-
sures by a Banking Institution — First Prize.
• Best Banking Board Governance Practices —
First Prize.
Switching you onto financial flexibility.
• Best Banking Risk Management Practices —
Second Prize.
Thank you.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C11

FBC HOLDINGS

FBC Holdings’ digital path: The journey

FBC Holdings commenced operations as First ciety modernised the core banking system such as Free Zinara licence disc delivery and porting all clients that on-board virtually in
Banking Corporation Limited in 1997. First and deployed a robust, state-of-the art ver- Hospital Cash Plan as value-added services. addition to the following;
Banking Corporation Limited was one of the
first locally owned commercial Banks in Zim-
sion running on the global market.
September 2019 — The FBC Internet Bank-
August 2020 — FBC Digital Account Open-
ing Launched
•• Operational and risk management
Anti-Money Laundering(AML)
babwe with only two branches in Harare and
Zvishavane. The Bank embarked on a capital
ing Platform was upgraded. The group un-
veiled a new Oracle Banking Digital Experience
In August 2020, the digital account open-
ing service was launched. The product allows
•• Know-Your-Customer(KYC)
Business development — Cross and Up-
raising initiative through an initial public of- (OBDX) platform, which was the latest version anyone to open an FBC Personal Account selling to the digital customer
fering (IPO) and first listing on the Zimbabwe
Stock Exchange in 2001.
on the global market. The platform brought
about omni-channel functionalities and excit-
without ever having to physically visit a brick
and mortar branch or using paper. In simple
••Relationship Management
Product & Client support for clients utilizing
In 2004, First Banking Corporation Limited ing Do-it-Yourself (DIY) services for the client. terms, with digital account opening, anyone our digital platforms.
acquired Southern African Reinsurance Com- January 2020 — FBC Bank upgraded the can now digitally open any of the following Distribution of physical products to clients
pany (SARE), now FBC Reinsurance, to form Mobile Banking Application, whilst introducing FBC Account(s) remotely from wherever they who opt for delivery (e.g cards delivery & PIN
FBC Holdings Limited. As a result of the ac- a host of new features such as Biometric Au- are, as long as there is mobile network con- issuance through POS). Once a customer has
quisition, First Banking Corporation and SARE thentication on supported devices, beneficiary nectivity at any time of the day…24/7: been successfully on-boarded they will re-
were delisted from the Zimbabwe Stock Ex-
change to allow for the rebranding of the
maintenance and a Proof of Payment(POP)
January 2020 — FBC Insurance Company
•• Mobile Wallet
Instant Card Account
ceive ongoing service support from the Cus-
tomer Experience and 24 hour Contact Centre.
merged entities and subsequent listing of FBC
Holdings Limited.
the launched “yakO!”(an innovative, game-
changing and fully digital third party insurance
•• Savings Account
Current Account The FBC Virtual office is located at Ground
In the same year, SARE was rebranded to
FBC Reinsurance and First Banking Corpora-
service) which changed the face of insurance
in Zimbabwe.
• Foreign Currency Account(FCA)
August 2020 — Establishment of FBC
Floor FBC Centre, 45 Nelson Mandela Avenue,
Harare. Tel: +263-242-783 204/783 206-
tion was rebranded to FBC Bank Limited. April 2020 — FBC Insurance re-packaged Virtual 7/707 057/797 759|772 706. Email: info@fbc.
The rebranding exercise paved the way for yakO!, introducing new and exciting features FBC Virtual is the unit responsible for sup- co.zw.
the relisting of the two entities under a single
brand, FBC Holdings Limited.
In 2005, the Zimbabwe Stock Exchange
listed entity, FBC Holdings, continued to
grow in stature. In January 2005, FBC Hold-
ings acquired the Zimbabwe Building Society
(now FBC Building Society) and established a
greenfield securities and stock-broking firm
FBC Securities. FBC Securities is a a registered
securities dealer (SECZIM) and a Member of
the Zimbabwe Stock Exchange (ZSE). These
additions allowed FBC Holdings to introduce
mortgage financing and securities trading to
complement the revenue generating capacity
of the insurance businesses for FBC Holdings
Limited. Eagle Insurance was rebranded to
FBC Insurance in January 2017.
In 2010 FBC Bank launched the widely
popular Mastercard Prepaid and debit cards,
championing the return of Mastercard to the
Zimbabwean market.
In 2011, FBC Holdings established Microplan
Financial Services, the micro-finance subsidi-
ary of the Group. The decision was driven by
the need for financial inclusion and the desire
to serve the under-banked market. The sub-
sidiary was established with the mandate of
developing the informal sector through pro-
viding micro- finance products that address
the unique needs of the informal sector. FBC
Bank was also one of the first three banks to
go onto the Zipit platform which went on to be
the most used interoperable mobile banking
platform in the country.
In June 2013, FBC Holdings secured a stag-
gering US$60 million line of credit facility from
a syndicate of lenders that include INVESTEC,
Standard Chartered and Commerz Bank. The

Building an ecosystem?
facility was guaranteed by Afreximbank in a
show of confidence in the creditworthiness
and financial soundness of FBC Bank Limited.
In addition, in the same month of June 2013,

Connect the dots.

Equator Capital, a private equity investor in
the United States of America (USAs) snapped
a sizeable seven percent stake in FBC Hold-
ings, setting the stage for enhanced presence
and visibility of the Group in the foreign capital
markets.
In 2014, another US-based capital manage-

Congratulations to FBC Holdings on connecting

ment company, Consilium, acquired six per-
cent of the FBC Holdings shares, further reaf-
firming foreign investor interest in Group.
In December 2016, Norsad Finance, an in-
ternational development finance and impact
the dots and winning the following awards:
investor in Africa extended a US$10 million line
of credit to FBC Bank Limited.
In 2017, the FBC Group made the critical de- Overall Winner Best Bank - Banks and Banking Survey Awards 2020
cision to go a gear up on the digital transfor-
mation journey. The Group adopted a holistic
approach to the entire digital transformation
Best Digital Bank Zimbabwe & Best Mobile Banking App – Digital
and innovation programme, with emphasis on Banker Africa
culture, business model, organisational struc-
ture, operational processes, skills set and
technology architecture.
Most Innovative Organisation - Contact Centre Association of Zimbabwe
In 2018, FBC engaged the services of a
global consultancy firm to assist the group MicroPlan Service Excellence Awards Microfinance Sector - Contact
in developing a Digital Strategy and invest-
ment case that would help it to scale up from Centre Association of Zimbabwe.
its e-commerce thrust to that of becoming
a wholesome digital business. Part of that
strategy entailed the the establishment of a
‘Digital Value Office” (DVO) to drive the trans-
formation journey for the group.
February 2019-FBC Insurance launched a
world-class, customer driven and low-cost © 2020. Deloitte & Touche. All rights reserved.
Usage Based Insurance product christened
‘MyDrive’
August 2019 — FBC Bank and Building So-
C12 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

FBC Bank
wins
prestigious
digital
award
From C7
and customers.
This award is testimony to the fact that
FBC is adapting well positioned to the rapidly
changing global market-place. The advance-
FBC Bank has been awarded the Best Digital Bank and Best Mobile Banking Awards 2021 ment of technology is changing the way that
customers bank, work and live. On demand
services are the new normal, allowing cus-
tomers to shop, make payments, review
spending and transfer money on the go.
The Digital Banker Africa Awards highlight
the organisations making this possible, driv-
ing financial inclusion as a key enabler to boost
prosperity.
FBC’s financial inclusion strategy is encap-
sulated in the new vision statement which
aspires to “nurture sustainable solutions that
Suite 501, Century House West, N. Mandela/J. Nyerere enable the financial well-being of the commu-
nities we serve”.
Harare, Zimbabwe Operating in a developing African economy
+263 242 751275, +263 242 759100, +263 772 485 419, +263 719 485 419, +263 8644 132 738 where 70% of the population is rural and low-
income, there is much work is required to up-
[email protected] lift the lives of the majority.
FBC has enabled a wallet and low-KYC ac-
count bank account on the USSD platform
which allows every Zimbabwean with a basic
Avallanche Fire and Plumbing congratulates FBC Holdings for winning the following feature phone to open a bank account re-
motely from anywhere within Zimbabwe. Zim-
awards; babwe has extensive mobile network cover-
age and the feature phone penetration is high,
covering previously marginalised sections of
society in remote rural communities.
1. FBC Bank - Overall winner (Best Bank - Banks and Banking Survey Awards 2020) Our USSD account opening platform allows
previously excluded communities to open a
2. FBC Holdings - Most Innovative Organisation (Contact Centre Association of formal bank account and transact easily and
instantly without having to use paper or travel
Zimbabwe) to urban centres.
FBC has a deliberate solutionist and data-
3. MicroPlan - Service Excellence Awards Microfinance Sector (Contact Centre driven strategy that is geared towards finan-
cially including the base-of-the pyramid be-
Association of Zimbabwe) yond payments in support of United Nations
sustainable development goals (SDGs).
4. FBC Bank - Digital bank Award (Digital Banker Africa) A collaborative ecosystem approach un-
derlies FBC’s approach in working with banks,
fintechs, vendors, regulators and other regu-
lators in creating value.
FBC has launched a digital insurance and
account opening app that allows customers
to digitally insure and licence vehicles as well
as open different types of bank accounts in-
stantly using one application.
At the same time, FBC Bank has launched a
digital assistant named Noku which supports
and interacts with clients using the WhatsApp
platform.
• FBC has developed an single app that allows
access to different products and service
from banking to insurance from one touch-
point consistent with our “Product of One”
business principle.
• The application enables end-to-end full KYC
fire extinguishers fire sprinklers
account-opening in less than five minutes
after autonomously doing four API-based
checks in the background including identity,
facial recognition and anti-money launder-
ing FBC has enabled digital account-open-
ing through three different platforms
 Unstructured Supplementary Service
Data(USSD) for KYC-lite wallet and account
PA Voice Evacuation System  WhatsApp banking for KYC-lite wallet
and account
 IOS and Google Playstore — for full KYC
account
By enabling customers to open accounts on
the different platforms FBC Bank has enabled
all segments including the base-of-the-pyra-
mid to access financial services easily, thereby
supression system fire alarm system accelerating financial inclusion.
FBC was also the first institution in the
country to implement optical character recog-
nition technology within a banking app, thus
enabling one to open a full KYC account ex-
peditiously The solution has hit the market by
fire hose reels storm.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C13

FBC HOLDINGS

Customer obsession the

credo at FBC Customer
Experience Division
THE customer experience team at FBC is the agent through the web chat
vanguard that defends the “customer obses-
sion” mantra for the group. Contact team
Established at the beginning of 2020, the The FBC Customer Experience Unit headed by
customer experience division amplifies and and Annah Gambe, is made up of the following team
defends the voice of the customer across the members:
whole FBC group.  Complaints and Queries manager: Patricia
The unit oversees the contact centre, which Mandipira — to ensure all customer complaints
provides 24/7 customer support for any FBC are handled effectively and efficiently;
customer.  Quality Assurance manager: Mary Chimham-
“The customer is our top-most priority not hiwa — to ensure standardisation and quality
just as customer experience division, but the responses are provided; and
whole group. The new promise to our custom-  Two team leaders: Wilson Mpofu and Laurinda A
ers is ‘You Matter Most’ and it is that renewed Chiguvare; and
focus on our customer that culminated in the  Contact Centre Agents. FBCH head Customer Experience Annah Gambe
setting up of a fully -fledged Customer Experi-
ence Department to cater for all FBCH custom-
ers,” FBC Head of Customer Experience Annah
Gambe says.
The emergence of the digital customer and
the coronavirus has accelerated the change in
the customer’s behaviour, as well as channel
preference.
FBC continues to invest significantly in the
technologies, processes and culture to meet
these evolving customer needs.
Customer experience is a product of interac-
tion between the customer and business during
the duration of their relationship. It encompass-
es three key aspects, which are:
 The customer journey;
 Brand touch points that the customer inter-
acts with; and
 The environment that the customer interacts
in.
The FBC Customer Experience unit has a
Congratulations
number of responsibilities, which are outlined
below: Sky Construction (Pvt) Ltd congratulates FBC Group for its outstanding
 They are the voice of the customer (external
and internal — in respect of customer experi- achievement in the Financial Services Sector.
ence issues) across the group;
 They manage the customer’s entire experi-
ence through the group’s indirect (Contact Cen-
tre) and direct touch points;
You have made us proud and best wishes on this immense success.
 They develop and implement strategies use-
ful in improving customer experience within the
group;
 They help to shape the Group Contact Centre
through digitalisation initiatives, adoption of rel-
evant technologies;
 They Iinstill a culture of superior customer
service through effective strategies, structures,
systems and controls, in collaboration with the
various SBU’s and other stakeholders;
The Customer Experience Unit works with
other SBUs, the Digital Value Office and other
functions to foster the requisite change that en-
trenches the treasured customer promise “You
Matter Most”.

FBC Group Contact Centre

FBC Group Contact Centre operates 24/7 to en-
sure all its customers across the world, includ-
ing MasterCard account holders and all who use
digital products and services, are catered for and
assisted as and when they need services.
The Group Contact Centre and Customer Ex-
perience Unit is reachable on the following con-
tact details:
 Landlines: +263 242 704481, +263 242
704482, +263 242 761198;
 Tollfree number: 220;
 WhatsApp: +263772 152 647, +263772 419 693
or +263732 152 647;
 Email: [email protected] ;
 Skype: FBCHelpCentre or chat with our live

Sky construction one stop solution for all construction related needs, supplies of all
building materials including sands gravel 3/4 stone, truck and machinery hire, civil
works: roads, building, plumbing, roof leaks, electricals, tiling, gazebos and thatching,
paving ,driveways, carpentry painting, landscaping and interior decor.

Address: Stand No 5599 Knowe, Norton.

Cell: 0773575177 / 0774260839 Email:[email protected]
FBC continues to invest in technology.
C14 advertising supplement to the Zimbabwe independent DECEMBER 11 TO 17, 2020

FBC HOLDINGS

Banking in the new normal with FBC Virtual

FBC Virtual Digital Relationship Manager Ronald Chibwe (right) and Digital Relationship Officer Tinashe Dziva (left) assist clients to open accounts digitally.

In line with the group’s digital innovation thrust,

FBC has introduced a dedicated virtual brand
which supports and services the digital cus-
tomer to access products and services through
digital channels.
With the new digital account opening service
that is now available via the Mobile Moola app,
USSD *220# or Noku 0776 670 211 FBC Virtual
ensures that the journey is smooth as well as
attend to other relationship needs that the cus-
tomer might have. The unit ensures that the
customer gets their bank cards collected or de-
livered as per their preference.
FBC Virtual as a brand signifies the group’s
commitment to serve our valued customers
digitally through the enhancement of our digital
touch-points with ground breaking digital bank-
ing features such as full real-time electronic
know-your-customer facial recognition and in-
stant account-opening.
Through the FBC Virtual platforms one can
open a bank account anytime(24/7), anywhere
by simply dialling *220# or downloading the FBC
Mobile Moola App from the Apple Store for IOS
users and Google Playstore for Android users.
NcubeBurrow (Pvt) Ltd would like to congratulate the One can also open their KYC-lite account
(Mobile Wallet or Instant Card Account) through
FBC Group for being acknowledged by the industry Noku our digital assistant via WhatsApp on
0776 670 211. The account types available
through the following awards. through FBC Virtual are:
•
•
Mobile Wallet
Instant Card Account
Overall Winner ( Best Bank) •
•
Savings Account
Current Account
Most Innovative Organisation • FCA Account
Digital insurance products are also available
through yakO on the same banking applications
Service Excellence Award (Microfinance Sector) should a customer need them.
FBC Virtual is the new way of accessing finan-
cial services that guarantees both convenience,
low cost of access as well as safety from the
scourge of Covid-19 infection.

Digital Financial Inclusion on the Go! Senior

Manager FBC Agent Banking and Business
Development Unit Denis Mundida assists a
client to open an account digitally at Gazaland
Complex in Highfield, Harare.

Structural Engineering
Project Management
Bridge Design
Airport Design
Feasibility Studies
Engineering Technology
Instant account issuance ... FBC Virtual Digital
www.ncubeburrow.com [email protected] +263 7766 43 592 Relationship Officer Tinashe Dziva (centre) issues
cards to clients instantly at Gazaland Complex.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C15

FBC HOLDINGS

FBC Health Insurance

provides bespoke
medical solutions
FBC HEALTH INSURANCE was in partnership visibly excited Matipedza said. — FBCH
with Liberty Holdings of South Africa to locally
distribute its product, known as Liberty Blue FBC Health Insurance is able
(health cover).
FBC Insurance holds the licence issued by
to facilitate treatment abroad
the Ministry of Health of Zimbabwe to distribute
health plans (that included Liberty health cover)
for complicated or specialised
and thus has a Health Insurance department surgery that may not be
that operates under it, with the mandate to run
the operations. available in Zimbabwe or is
Liberty exited the Zimbabwean market as at
June 30, 2020, citing operating challenges in the available, but too expensive.
market.
Subsequently, FBC Health Insurance came Head of Operations FBC Health Matipedza Lole
into being, developing a full array of local health
insurance products that have now been on of-
fer in the market with effect from July 1, 2020.
The FBC Health Insurance department is us-
ing the 2CANA HIP health administration system
that it successfully launched on May 1, 2020.
FBC Health Insurance, as a funder, has all
along been known as “Liberty” by default.
FBC Insurance was in partnership with Liberty
Health of South Africa, having an exclusive
right to market the Liberty Health cover plans
in Zimbabwe.
When the arrangement to stop distribution
of the Liberty Health cover plans was stopped
at the end of June 2020, FBC Health Insurance
activated its decision to offer locally-developed
plans that cater for the entire market.
“Liberty products were mainly aimed at the
upper niche market and aligned to our strategy
of financial inclusion, we took the opportunity
to develop products that cater for a large cross-
section of the market, incorporating; low, mid-
dle and upper market segments,” head of FBC
Health Mati Lole said.
FBC Health Insurance is open to Corporates,
SMEs has plans for individual members, includ-
ing beneficiaries and dependeants of those in
the Diaspora.
“FBC Health Insurance is excited to provide
exceptional locally developed medical insur-
ance packages and cover at competitive rates.
The market has so far given a thumbs up to the
current plans on offer,” he added.
Additionally, corporates also have the op-
portunity to have customised or bespoke cover
like self-managed funds.
Under this arrangement, corporates are free
to set up their own desired benefit plans and
premiums with FBC Health Insurance coming in
to offer administration services.
This process also involves the important in-
put from our highly skilled in-house actuarial
team that assesses the adequacy of cover in
relation to the premiums contributed, after tak-
ing into account the disease burden of the fund.
The clients are then guided accordingly.
This is a very smart way of providing cover,
given the rapidly escalating medical infla-
tion rate and the ensuing difficulty of always
matching premium increases required by health
funders to pay service providers accordingly.
FBC Health has a unique concept of allowing
would be members to participate in designing
the benefits that they desire at a cost that they
are comfortable with. In addition ready-made
plans on offer are affordable and provide ac-
cess to services with the least co-payments or
shortfalls for added convenience.
FBC Health will soon be combining banking
services and health cover under a new and ex-
citing offering.
There is a wide provider network for the add-
ed convenience of the members on offer, with
more key providers expected to join soon. For
members on our private plan and above, should
the need arise, FBC Health Insurance is able to
facilitate treatment abroad for complicated or
specialised surgery that may not be available
in Zimbabwe or is available, but too expensive.
Agreements with providers in South Africa,
Malawi, India and other jurisdictions are being
worked on to assist those who need to travel
for medical purposes.
“The Health team is excited about the pros-
pects of growing the ‘new kid on the block’
within the FBC Holdings family. The challenge
is gladly accepted and they are ready to serve
all their members because ‘they matter most’,”
C16 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

FBC Building Society properties have captured the attention of many customers locally and in the Diaspora.

FBC Building
25 Connaught Road,
Avondale, Harare
Society Props
[email protected] impress the
+26324 2334566/9
+263773687010/11
Diaspora market
FBC Building Society is a value-driven mortgage financ-
ing arm of FBC Holdings, involved in residential property
development for all market segments, from low to me-
dium and high-income groups.
Due to its vast experience in running property de-
velopment projects, FBC Building Society has captured
many customers locally and in the diaspora market,
resulting in many acquiring properties at different lo-
cations, which include Avondale ,Belgravia, Newlands,
Greendale,Glen Lorne, Kuwadzana, Mount Pleasant and
Philadelphia in Harare.
Nationwide, the building society has constructed
houses in many towns, including, Bulawayo, Kadoma,
Kwekwe, Zvishavane, Hwange, Marondera, Nyanga,
Rusape , Chipinge and Gweru.
Currently, FBC Building Society is offering the Dias-
pora Savings Scheme, where prospective clients in the
Diaspora can save towards their essential local needs
such as upkeep, stands, education and properties,
among others.
Customers can access their accounts through internet
banking and can apply for accounts by filling in forms on
the company website or through electronic mail.
The Diaspora Savings Scheme is exclusive to people
in the Diaspora, who will realise the following benefits:
 Value preservation;
 Clients will have total control of their funds;
 Security — the account can be used as security;
 Access to FBC Building Society housing project mort-
gages subject to terms and conditions; and
 Making dreams come true.
The following are the product requirements to open
an account:
Architectural Aluminium congratulates FBC Holdings Limited for being accorded the  Notarised copy of ID or valid passport;
 Proof of residence (utility bills);
following awards:  Two passport size photos;
 Valid work or residence permit; and
 Proof of income.
The society is proud to have stepped in to assist
(1) FBC Bank: Overall Winner Best Bank - Banks & Banking Survey Awards towards reducing the national housing backlog in the
country by constructing more than 1 000 housing units
(2) MicroPlan: Service Excellence Award Micronance Sector - CCAZ across different segments since 2009.
(3) FBC Holdings: Winner Most Innovative Organisation - CCAZ The society has also supported housing through
mortgages and personal building loans. — FBCH
(4) FBC Bank|: Best Digital Bank - Digital Banker Africa

We are proud to be associated with you.

Architectural Aluminium is the leading aluminium and glass shop

tting and joinery company in Zimbabwe. We specialise in residential
as well as commercial projects, manufacturing doors, windows, Own your dream home or additional investment. FBC
Building Society (our award-winning mortgage financing
shopfronts, curtain walls / facades amongst other products. and property development unit) is building modern and
immaculate high-density houses in Kuwadzana. Get in
touch with our team on 0771 442 166 or 0772 744 or 111 for
more information.
 advertising supplement to the Zimbabwe independent DECEMBER 11 TO 17, 2020 C17

FBC HOLDINGS

Meet FBC Building

Society’s new MD
Pius Rateiwa is the new man in charge
at FBC Building Society.
• OManaging
ctober –December 2019: Acting
Director;
He possesses a wealth of experi-
ence encompassing project manage-
• Director.
January 2020-Present: Managing

ment, property development, mort-

gage finance, credit management,
Academic
treasury management, risk manage- Qualifications
ment as well as client relationship
management.
• M(University
asters in Business Administration
of Zimbabwe);
• Iand
nstitute of Chartered Secretaries
Fact File Administrators (C.I.S. Diploma);

• JTreasury
anuary 2009-March 2011: Head of
• PPractitioner.
rince two Project Management

and Projects; “ I am excited to be part of the FBC

• ecutive Director, Projects
A pril 2011-September 2019: Ex-
and
journey which has brought us thus far
and am geared up to take the Building
Mortgages; Society to the next level.”

Pius Rateiwa MD FBC Building Society.

Denis Mundida Senior Manager, Agent Banking
and Business Development.

FBC Bank
offers agent
banking
In response to the national policy on finan-
cial inclusion, FBC Bank has implemented
various initiatives to this call. One way is of
achieving this is through the use of agents in
their network.
Agent Banking is a model for delivering fi-
nancial services whereby a Bank (Principal)
partners with an agent (retail shop or inde-
pendent business) in order to extend finan-
HOME - OFFICE - SCHOOL - KITCHEN
cial services to customers in a specific geo-
graphical location. The relationship is guided
by an Agency Agreement.
The range of services offered through
Agents includes day–to-day services which
are essential to individuals and business
owners such as account opening, cash with-
drawals, cash deposits and a range of added
services such as micro-insurance products.
Who qualifies to be an agent?
All legally registered businesses (closed
corporations; private limited companies and
public limited companies) with the respec-
tive operating licences can be considered for
an Agency relationship.
These include small microfinance institu-
tions and non-banking correspondents such
as post offices, service stations, and retail Aluminium Partitioning
shops/supermarkets/grocery stores.
How does one register for Agent Banking?
To register for Agent Banking:
• Open a corporate Account with FBC Bank/
Building Society.
• Avail a business profile for assessment
and analysis of suitability as part of appli-
cation processing.
Requirements for Account opening
• Copy of acceptable form of identity (ac-
companied by original national I.D for
verification);
• Applicable card sale fee
Benefits to agents
• from
Increased Income through commission
bank transactions they conduct on
behalf of bank(s), a non-traditional rev-
enue line.
• Increased customer traffic hence more
business to the retail outlet as some cus-
Balustrades Shopfront
tomers will visit for bank transactions and
end up also consuming in-store products/
service The Directors, Management and Staff of Dans Furniture Group would like to
Benefits to customers congratulate FBC Holdings Limited and its subsidiaries
• basic
Ease of access to financial services as
services are accessed in areas of
on winning four prestigious awards.

residence/operations;
• asFlexible hours of getting financial services
you are served outside normal banking
We are proud to be associated with you.

hours;
• associated
Cost-effectiveness. as it reduces costs
with travel to major centres of
Address: 13 Nufeld Road, Workington, Harare
economic activity where bank branches Tel: +263 4 710124 / +263 772 319 146, [email protected]
are located.
C18 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

FBC donates towards Cyclone Idai

FBC HOLDINGS donated forty (40) tonnes of groceries enta, sugar beans, cooking oil and fine salt.
for assisting people affected by Cyclone Idai in Manica- The group also donated two thousand (2000) litres of
land and Masvingo Province as part of the group’s cor- fuel in order to ease transport logistics for Cyclone Idai
porate social responsibility initiatives and a call to assist relief activities. It has also pledged to construct class-
victims during this time of a national disaster. room blocks and finance the education of children who
The groceries, which were equally distributed be- lost their parents and guardians due to the tropical
tween the two provinces, consist of mealie-meal, kap- cyclone.

Minister of State for

Manicaland Province
Ellen Gwaradzimba
(second from left)
and Chimanimani
East MP Joshua Sacco
(second from right)
are flanked by Roy
Nyakunuwa (acting
head, FBC Group FBC deputy group CE (left) Trynos Kufazvinei presents the donation to councillor
Marketing — far left) Enock Mupamawonde (Harare City representative).
and Juzeyi Olisi (FBC
Bank Mutare Branch
manager) as they FBC donates US$75 000 to assist
children affected by cholera
pose with the FBC
donation towards
Cyclone Idai.

WE are pleased to announce that FBC Holdings do-

nated US$75 000 to Harare City Council towards a
scholarship fund being created for children affected by
cholera in recent years.

334 Samora Machel Avenue

Eastlea, Harare
Insurance brokers Tel 242 744 048/79

Acting head FBC Group Marketing Roy Nyakunuwa

(centre) presents FBC staff members’ donation to Red
Cross.

FBC Group Marketing acting head Roy Nyakunuwa

(fourth from left) presents groceries for assisting Cyclone
Idai victims in Masvingo Province.

Congratulations To
o FBC Holdings for an award lled year
year.

We wish you continued success in your pursuit of

unmatched service excellence and innovation.

For your personal and business insurance

Acting head FBC Group Marketing Roy Nyakunuwa
(centre) speaks at the Charleswood Primary ground
breaking ceremony for the construction of classrooms.
 advertising supplement to the Zimbabwe independent DECEMBER 11 TO 17, 2020 C19

FBC HOLDINGS

FBC Holding’s work in the community

Roy Nyakunuwa (acting head of FBC Goup Marketing — seventh from left), Mr Mandega
(Charleswood Primary School head — seventh from right), school development committee
members and parents pose with some of the construction material donated by FBC Holdings at A parent celebrates in front of a truck laden with building material donated by FBC at Charleswood
Charleswood Primary School. Primary School in Chimanimani.

Manicaland Province Community members, parents,

invited guests, FBC representatives and learners follow
proceedings at the Charleswood Primary School ground
breaking ceremony.

Mawuya, Siyalamukela, Welcome! Charleswood Primary

School choir welcomes guests with a song.

e-learning equipment comprising 45 mini-laptops

(tablets), one teacher’s laptop, a standard projector and
an interactive whiteboard donated by FBC at Mawaba
Primary School, Bulawayo in November 2019.

A digital board and projector installed by FBC at Mawaba

Primary School in Bulawayo.
C20 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

FBC donates 10 000 Covid-19 diagnostic test kits

THE FBC Group proudly donated 10 000 Corona- of President and Cabinet, 3 000 to PSMI and the
virus test kits in the interest of public health. A to- other 2 000 equitably distributed to Sally Mugabe
tal of 5 000 test kits were allocated to the Office Central Hospital and Bulawayo City Council.

President Emmerson Mnangagwa (centre), receives 10 000 Covid-19 test kits donated by FBC
from Herbert Nkala (FBCH Group chairperson — second from right) and John Mushayavanhu (FBC
Group CE — second from left). Looking on are Shingi Mabuto (PSMI Corporate Services executive Royce Sibanda (FBC Bank Bulawayo J.Moyo Branch senior manager — left) presents the FBC-
director — far right) and Dr T.Gutu. sponsored Covid-19 test kits to Minister of State for Bulawayo Province Judith Ncube.

FBC restoring hope to Chimanimani community. A

total of 180 students per year will benefit from FBC’s
corporate social responsibility initiative after
completion of the construction of this classroom

Congratulations
block, which is now at an advanced stage.

We are proud to congratulate you of your accomplishment, and of the contributions

that your service represent. We aknowledge your personal milestone
and we are honoured to applause FBC Holdings as they continue to demonstrate a firm
commitment towards embracing world-class financial services technologies
in order to offer high quality, secure, safe and convenient services
to the transacting public. These efforts by the FBC Group have been
acknowledged by the industry through the following prestigious awards

FBC worked on improving the road infrastructure by

installing distance markers to assist motorists that
use the highways across Zimbabwe.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C21

FBC HOLDINGS

Jerusalem Dance Challenge in pictures ...

Team FBC on the dance floor, taking part in the #JerusalemDanceChallenge video. Check out our video on Facebook, Twitter and YouTube. Our handle is @FBCHoldings.

Strauss Congratulates FBC on being the

best and most innovative bank with
excellent service!
C22 advertising supplement to the Zimbabwe independent December 11 TO 17, 2020

FBC HOLDINGS

FBC digital platforms: Bank from anywhere ...

#FlatternTheCurve ... Transact from wherever you are using the FBC digital channels such as Type “Hi” on WhatsApp number 0776 670 211 to chat, bank and insure with Noku, our FBC digital
Internet Banking, Mobile Moola App or USSD (*220#) and WhatsApp(0776 670 211). assistant.

Congratulations, Makorokoto, Amhlophe!!!

#NoExcuses ... Open an FBC account via the

FBC Mobile Banking application, USSD (*220#)
or WhatsApp platforms within 2-5 mins.
Download the Mobile App on Google Play
Store and Apple App Store for free.

The Board, Management & Staff of Premier Service Medical Investments (Pvt) Ltd Hauna Excuse! Vhura FBC Instant account
kana kuti Mobile Wallet ipapo ipapo nekuchaya
would like to congratulate FBC Holdings Limited *220#. Unongoda nhamba yako yechitupa
zvoita.
for being awarded:

FBC Bank - Overall Winner (Best Bank - Banks & Banking Survey Awards 2020)
FBC Holdings - Winner Most Innovative Organisation (CCAZ)
MicroPlan - Winner Service Excellence Award Microfinance Sector (CCAZ)
FBC Bank - Best Digital Bank (Digital Banker Africa)

Keep soaring high as you continue to provide quality banking services to all. Customer is King! At FBC, we believe that the
customer is at the very centre of our existence
#YouMatterMost

Acting Head of Marketing Roy Nyakunuwa

 advertising supplement to the Zimbabwe independent December 11 TO 17, 2020 C23

FBC HOLDINGS

Digitalisation and Innovation Training in pics ...

FBC Non-Executive and Executive Directors pose for a group photo after the Digital Transformation and Innovation MasterClass Training Session held in Harare.

Deloitte team members assist FBCH Executive

and Management team members to come up
with a Digital Transformation Strategy
Blueprint.

A group of FBCH team members discuss ideas

during breakaway sessions at the Digital
Transformation and Innovation MasterClass
Training. From left: David Mukata (FBC Bank
Treasury Operations), Appolonia Mudheredhe
(Senior Human Resources Officer), Peter
Chava (Acting Head FBC Retail Banking and
e-Commerce), Patricia Nyazenga (Divisional
Director FBC Credit), Alfred Chitanda (FBC
Executive Director Finance), Tawanda
Mumbengegwi (FBC Corporate and
Institutional Banking) and Callisto Rukuni (FBC
Masvingo Branch Manager).

Donald Chinyanga (Head FBCH Project

Management Office-PMO and Digital Ninja)
goes through his paces before Team 6’s Digital
Transformation or Awareness Campaign
roadshow at 6th Floor Boardroom, FBC
Centre.
C24 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

Digitalisation and Innovation Training in pics Customers

revel in
new digital
account
opening
process
THE new digital account opening process re-
cently launched by FBC Bank has taken the
FBC Executive and Non-Executive Board Members and Management pose for a group photo after the Innovation and Digital Transformation market by storm. Through its digital and online
MasterClass for executives and line managers. presence on social media, a number of custom-
ers shared their experiences with the team:

In response to the overwhelming feedback,

Agrippa Mugwagwa, Programme Lead at the
Digital Value Office had this to say: “‘It has
been an amazing and gratifying journey thus
far, working collaboratively with multiple en-
ergised cross-functional teams and stakehold-
ers across the group to deliver outcomes that
transform our customer’s journey for the better.
Much remains to be done still.”
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C25

FBC HOLDINGS

Down memory lane: The roadshow in pictures

Microplan Guruve, Mt Darwin and Bindura Branch, FBC Group Marketing, Compliance, Legal and
Help Centre staff members enjoy the Digitalisation Roadshow held in the PMO Boardroom, FBC
Centre. Bulawayo team attend the Digitalisation Roadshow.

all
For Tamper-evident
Security Bags:

Courier Bags

Examination
Paper Bags

your
FBC Bank Centre Branch team take notes during

plastic
Digitalisation Roadshow.

packaging
Bank Note Bags

Resealable/reusable
Zip-lock Bags

requirements, think
First Brands.
Ready for positive Change! Vongai Bayiwa (far
left) and Priscilla Sadomba (Change Management Food
Agent-second from right) pose with Victoria Falls
Packaging
Branch Digital Ninjas.

Chemist & Pill Bags

The Board, Management & Staff of First Brands Zimbabwe (Pvt) Ltd congratulate FBC
Group for being acknowledged by the industry through the following awards;
FBC Building Society Leopold Takawira and
1. FBC Bank - Overall winner (Best Bank - Banks and Banking Survey Awards Black Sheeting & Bin Liners
Microplan Branch Finance, Information Security
and Projects staff members during a roadshow 2020)
held at Leopold Takawira Branch. 2. FBC Holdings - Most Innovative Organisation (Contact Centre Association of
Zimbabwe)
3. MicroPlan - Service Excellence Awards Micro nance Sector (Contact Centre
Association of Zimbabwe)
4. FBC Bank – Digital Bank Award (Digital Banker Africa)

We are proud to be associated with you.

CONGRATULATIONS! MAKOROKOTO! AMHLOPE!

First Brands Zimbabwe (Pvt) Ltd.

8 George Avenue, Msasa, Harare.
Tel:480850/486882/480460.
Z I M B A B W E( P V T )L T D Tellular: 0772 145 132-133
Front row from left: Dadirai Siwela, Rutendo, Jane
email: admin@firstbrands.co.zw
Kuimba, Poncio Chikati at Nelson Mandela Branch
Digitalisation Roadshow.
C26 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

African banking after Covid-19

Second, both consumers and regulators ex-
pect banks to be able to keep lending, and at
scale. In a recent McKinsey survey of African
consumers, Moroccan and Kenyan customers
ranked facilitated access to credit as their top
HERE is how African banks can manage the im- ety, and in some cases conduct overdue reforms. returns to shareholders but also of their broader expectation from banks during and beyond the
pact of Covid-19 — and prepare for recovery. Drawing on McKinsey’s global research, along responsibility to society. Indeed, banks will face Covid-19 crisis. In Nigeria and South Africa, it is
New analysis by McKinsey suggests that the with real-world examples from across Africa’s increasing expectations from regulators and cus- among the top five expectations from banks.
Covid-19 crisis could result in African banking banking sector, this article provides analysis and tomers in the months ahead, in two main areas. Banks’ central role in African economies can
revenues falling by 23 to 33 percent between ideas for banks’ response strategies. It seeks to First, banks are fundamental to the large — provide impetus to intensify their short-term
2019 and 2021. Over the same period, African answer three key questions: scale relief that needs to be distributed to cor- response to the crisis — and to reimagine their
banks’ return on equity (ROE) could fall by be- How can banks best manage risk and capital? porates, SMEs and individuals. As conduits of business models for the long term. Furthermore,
tween 5 and 15 percentage points, driven by How can banks best manage cost and streamline stimulus packages introduced by governments, the crisis may prompt many African banks to
rising risk costs and reduced margins. Banking resources? How can banks adapt to recent shifts banks will have to channel aid and enable loans think beyond necessary crisis-management
revenues might only return to pre-crisis levels in in consumer behaviour, especially accelerated for the economy. African countries are employing measures and about potential growth levers in
2022–24, depending on whether a rapid or slow digital adoption? a range of measures, including extending state- the medium term: the Covid-19 crisis has ac-
recovery scenario prevails. Under each of these themes, we suggest both sponsored loans and making relief payments to celerated some existing trends and is likely to
This comes at a time when Africa needs its short-term actions to help banks “restart”and individuals through bank channels. drive structural reforms that in many cases are
banks more than ever. Already they have been longer-term initiatives to drive structural reforms In Morocco, for example, laid-off workers have overdue to enable future growth. In all these re-
the primary conduit of aid during the crisis, and in the sector and secure banks’ competitiveness received compensation for salaries and benefits spects, banks will benefit from answering three
will play a central role in the recovery — for ex- and sustainability in the post-Covid-19 “next of $200 a month for those in the formal sector key questions:
ample, in enabling the credit programmes an- normal”. and $100 a month for those in the informal econ- How can African banks best manage risk and
nounced by several African governments. These actions will also be imperative in bol- omy. Similarly, South African banks are the pri- capital — both to face short-term challenges
There are bold actions that African banking stering African banks’ role in the continent’s re- mary enabler of a $30 billion stimulus-package and to grasp the longer-term opportunities
leaders can take to weather the immediate storm, silience and recovery. injection into the economy, including a $12 billion on the continent? How can African banks best
prepare for the recovery, and address several Africa needs its banks more than ever — and SME lending programme. handle costs and streamline resources — both
long-term trends that are now accelerating. For banking leaders can take bold action to drive re- In Nigeria, a $2,5 billion lending programme to navigate the crisis and to optimise cost-to-
many banks, the crisis will also be a prompt to covery. As they chart their paths to recovery, Af- has been established to support local manufac- serve? How can African banks adapt to recent
reimagine their business models and role in soci- rican banks should be cognisant not only of their turing and other key sectors. shifts in consumer behaviour, especially acceler-
ated digital adoption — to serve customers ef-
fectively, and expand financial inclusion?
These questions each reveal multiple themes
for reflection (Exhibit two), and their resolution
needs to align global best practices with specifi-
cities of the local banking environment.
How African banks can manage risk and opti-
mise capital?
For most banks, the risk function is at the
heart of Covid-19 crisis response. There are im-
mediate actions that banks can take to minimise
risk, but the crisis also allows an opportunity to
revamp the credit process for greater efficiency
and effectiveness. Banks can leverage digital and
analytics to improve both lending journeys and
credit decision making.
Restarting: short-term actions
There are five key areas where banks can take
short-term action to help manage the crisis-re-
lated spike in risk — and create capacity to face
the likely surge in irregular and non performing
clients. These are as follows:
Offer emergency support. Many banks have
already made headway and taken action on this
front, for example by adapting credit analysis and
underwriting to verify recipient eligibility for gov-
ernment support schemes. This enables them to
offer support while simultaneously handling the
initial defaults and pre-defaults emerging in the
most vulnerable client segments.
Assess damage. African banks have already
taken steps to assess the damage wrought by
the crisis on their businesses, in many cases by
translating global Covid-19 impact outlooks into
an assessment of impact on portfolios. But this
crisis is affecting different sectors of the econo-
my in quite different ways. Banks would do well
to define their new credit risk appetite at the sub
sector level. Adapt the credit-risk framework.
In contrast with previous crises, a deterioration
in creditworthiness has occurred suddenly and
with little prior notice; early-warning systems are
“drunk on new data”, which generates distortion
and noise in identification and monitoring.
In response, banks can adapt their underwrit-
ing criteria, monitoring practices, and the overall
credit value chain to reflect damage-assessment
results and the perceived resilience of borrowers
through the Covid-19 cycle. This could translate
into an expert overlay that gives more weight to
customers’ “ability to pay” (for example, their
surplus income) over their “willingness to pay”
(for example, their credit history).
Adjust the operating model. Given the signifi-
cant volume of loans that will require credit ac-
tions, it will be important for banks to create the
right flexibility in their workforce. Resources and
technology support need to be flexible and easy
to relocate between underwriting, monitoring,
delinquency management, and collections work-
out. In addition, banks can prepare by reflecting
strategically on their target set-up. Banks could
create virtual or formal structures, or both, to
carve out NPLs; options to consider include set-
ting up bad banks or partnering with specialised
restructuring operators and services.
Neutralise the impact on risk models. Banks
can adapt input ratings, risk parameters, migra-
tion matrices and delinquency triggers to isolate
the Covid-19 impact and neutralise its effect on
regulatory models and management information
systems. To mobilise on these five fronts, some
banks are moving fast to establish a risk nerve
centre made up of multi-disciplinary teams.
These teams can work iteratively, across the
five areas above, using the logic of minimum
To C27
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C27

FBC HOLDINGS
From C26
viable product (MVP). The nerve centre can con-
stantly coordinate with other areas of the bank
African banking after Covid-19 as asking customers to provide salary slips, bank
account details, certified accounts, or business
plans — allow banks to address only salaried
— such as economics, finance, and — to de- employees and mid to large-size companies
velop scenarios and the appropriate responses. markets, including South Africa, we found that banks manage higher loan volumes. with formal accounts. This leaves a large part of
penetration of digital sales for personal loans A third action would be for banks to deploy the market unserved.
Long-term transformation was slightly above 9%. next-generation “time-to-yes” processes, by In Nigeria, for example, salaried employees
Beyond this immediate response, banks could This is way below the 53% of digital sales in adopting processes that are automated, leaner account for less than nine percent of the adult
leverage digital and analytics to reform lend- lending reached by a peer group of digital leaders and simpler—for example they could simplify population. And across Africa, only 10% of SMEs
ing processes, revamping and reimagining both in developed markets. know-your-customer (KYC) processes and cli- have access to financial services.
customer journeys and risk-scoring frameworks. Three approaches could help banks in the pro- ent documentation requirements within the lim- That said, several pioneering companies are
First, banks can digitise and automate credit cess of digitising consumer and wholesale lend- its of regulation. already serving informal SMEs and nonsalaried
processes. Credit distribution is typically one of ing. First, banks could transition the interim digi- Banks could set ambitious goals for their workers successfully. One is Jumo, a platform
the most time-consuming processes in African tal SMEs loan processes created during the crisis credit processes, especially for commercial for mobile network operators and banks which
banking, for both customers and for the banks — primarily to manage government-supported loans. In developed markets, for example, best facilitates digital financial services such as credit
themselves. The waiting time for approval of a credit lines — to more permanent customer- practices require straight-through processing for and savings in emerging markets.
consumer loan is typically in weeks; business centric journeys. A second action would be for loans up to $1 million, and a maximum time-to- Jumo has an advanced data engine and runs
loans can take even longer. Banks have started banks to implement “digital credit” using high- yes of five days for companies. machine-learning algorithms on millions of
digitising this process, but for many of them performing credit engines whose risk models Second, banks can use artificial intelligence mobile-wallet, cellphone, and transaction-data
there is still a long way to go. have a GINI coefficient exceeding 70%. and advanced analytics for credit scoring. signals. It uses these to build increasingly accu-
In our benchmark conducted in developing This will help minimise cost-to-serve to help Traditional credit-scoring approaches — such rate credit profiles. — Mckinsey.

You are more than too

much you are three much!
Spidexmedia heartily congratulates FBC Holdings on winning three prestigious awards.
1. FBC Bank - Overall Winner (Best Bank - Banks & Banking Survey Awards 2020)
2. FBC Holdings - Winner Most Innovative Organisation (Contact Centre Association of Zimbabwe) 
3. MicroPlan - Winner Service Excellence Award Microfinance Sector (Contact Centre Association
of Zimbabwe)

We are proud to be associated with you, and wish you every success in all your future endeavours.

ZIMBABWE AND ZAMBIA

C28 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

FBC awards and recognitions in 2020

Microplan Financial Services, our microfinancing unit, won the Contact Centre Association of
Zimbabwe (CCAZ) Excellence in Microfinance Sector Award recently. The guest of honour, Oliver
Head, Projects Management Office, Donald Chinyanga, receives awards at Icsaz 2020 Excellence Chidawu (Harare Metropolitan Province minister, left) presents the award to Esau Gwasira
in Corporate Governance Awards: Best Banking Board Governance Practices Award and Overall (Microplan Business Development Manager, centre). Looking on is Dr. Mambondiani (CCAZ
Best Corporate Governance Disclosures by a Banking Institution Award. president).

FBC scooped the Most Innovative Organisation First

Runner-Up Award at the recently held Contact Centre
Association of Zimbabwe (CCAZ) Service Excellence
Awards. The guest of honour, Oliver Chidawu (Harare
Metropolitan Province minister, left ) and Dr.
Mambondiani (CCAZ president, right) present the
award to Annah Gambe (head, FBC Customer
Experience.

Congratulations, Makorokoto, Amhlophe

Danziger & Partners Legal Practitioners congratulates FBC Holdings Limited

FBC Bank scooped two prestigious awards at the
and its subsidiaries on winning: seventh edition of the Institute of Chartered
Secretaries and Administrators in Zimbabwe (Icsaz)
Excellence in Corporate Governance Awards: Overall
Winner for Best Governed Banking Institution and
(1) FBC Bank: Overall Winner Best Bank - Banks & Banking Survey Awards 2020 Overall Winner — Risk Management and Internal
(2) MicroPlan: Service Excellence Award Microfinance Sector - CCAZ Reporting. The guest of honour, Vice-President
Kembo Mohadi, poses for a picture with Abel
(3) FBC Holdings: Winner Most Innovative Organisation - CCAZ Magwaza (FBC Finance and Admin executive director,
far left), Tich Mabeza (FBC Company secretary,
(4) FBC Bank: Best Digital Bank - Digital Banker Africa second from right) and Mrs L Gaga(former Icsaz
president).

We are proud to be associated with you.

FBC Bank (the flagship and commercial banking unit

of FBC Holdings) scooped the Most Sustainable
Corporate Social Responsibility Programme of the
Year Award in the 2020 Banks and Banking Survey.
John Mushayavanhu (FBC Group CE, second from left)
receives the CSR Award.

Harare Bulawayo Gweru

Third Floor, Finsure House 5th Floor, First Mutual Building 159 Main Street
Cnr Sam Nujoma /Kwame Nkrumah Corner 9th Ave/Main Street P O Box 58, Gweru
P O Box 875, Harare P O Box 2484, Bulawayo Tel: 054-225051-5 Fax: 054-223815
Tel: 0242790637/252308-9 Fax: 04-799073 Tel: 09-884826-7 Fax: 09-884821 Website:www.danzigerandpartners.co.zw
Website: www.danzigerandpartners.co.zw www.danzigerandpartners.co.zw Email: [email protected] FBC Insurance’s usage-based insurance product
Email: [email protected] Email: [email protected] [email protected] (MyDrive) won the First Runner-Up Innovative
Product of the Year Award. Patrice Chikuyo, (FBC
[email protected] [email protected] Insurance head of Technical and Business
Development, centre) receives the award.
 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020 C29

FBC HOLDINGS

FBC housing projects over the years in pics ...

Ostridge Gardens in Cambridge Road,

Newlands, Harare

Greendale Housing Project

Remarkable Designs Longlasting Impressions

Alumin Structures congratulates FBC Holdings Limited for being accorded the following awards:

(1) FBC Bank: Overall Winner Best Bank - Banks & Banking Survey Awards
(2) MicroPlan: Service Excellence Award Micronance Sector - CCAZ
(3) FBC Holdings: Winner Most Innovative Organisation - CCAZ
(4) FBC Bank: Best Digital Bank - Digital Banker Africa

We are proud to be associated with you.

For all your Aluminum and Glass

Avondale West

Avondale West interior (kitchen)

Zimbabwe Zambia
1 Harrow Road, Msasa, Harare Plot 28, Chekeluka Road, Olympia, Lusaka
Tel: +263447194-5 / +263782940468 Tel: +260 975559294 / +260 764421772
Email: [email protected] Email: [email protected]
Avondale West interior (bathroom)
C30 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

World needs more female bankers

WOMEN are underrepresented at all levels of
the global financial system, from depositors
and borrowers to bank board members and
regulators.
Below a study by IMF finds that greater inclu-
sion of women as users, providers, and regu-
lators of financial services would have benefits
beyond addressing gender inequality.
Narrowing the gender gap would foster
greater stability in the banking system and en-
hance economic growth. It could also contribute
to more effective monetary and fiscal policy.
Women on average accounted for just 40
percent of bank depositors and borrowers in
2016, according to IMF survey results pubmm—
the first time such data became available. Un-
derlying these aggregate figures are large varia-
tions across regions and countries.
Growing evidence suggests that increasing
women’s access to and use of financial services
can have both economic and societal benefits.
For example, in Kenya, women merchants who
opened a basic bank account invested more in
their businesses. Female-headed households
gaps persist between the representation of men
and women in leadership positions in banks and
stability. Banks with higher shares of women
board members had higher capital buffers, a
•women
Institutions that tend to attract and select
in top positions may be better-man-
often spend more on education after opening a banking supervision agencies worldwide. lower proportion of nonperforming loans, and aged in the first place.
savings account. We found that women accounted for less greater resistance to stress. Based on evidence in our paper and related
More inclusive financial systems can mag- than 2 percent of financial institutions’ chief We found the same relationship between literature, we find that the observed higher
nify the effectiveness of fiscal and monetary executive officers and less than 20 percent of bank stability and the presence of women on stability is most likely due to the beneficial ef-
policies executive board members. The proportion of banking regulatory boards. fects of greater diversity of views on boards, as
Such benefits illustrate why economic growth women on the boards of banking-supervision There are four possible reasons why a high- well as discriminatory hiring practices that lead
increases with greater access to financial ser- agencies was also low—just 17 percent on aver- er share of women on bank and supervisory to hiring better qualified or more experienced
vices. The same benefits result from increasing age in 2015. boards may contribute to financial stability: women than men.
female users of these services. More inclusive
financial systems in turn can magnify the ef-
As with users of financial services, we found
considerable regional variation in the pres-
• Women may be better risk managers than
men;
Our findings strengthen the case for finan-
cial inclusion of women to enhance economic
fectiveness of fiscal and monetary policies by
broadening financial markets and the tax base.
ence of women in banking leadership roles.
Sub-Saharan African countries had the high-
• Discriminatory hiring practices may mean
that the few women who do make it to the
growth and foster financial stability.
We need more research and better data to
When women lead in finance est shares of female banking executives, while top are better qualified or more experienced explain how to achieve these benefits and to
What about the financial system itself? Does Latin America and the Caribbean had the low- than their male counterparts. identify the conditions that facilitate the entry
it matter whether women are represented
among bankers and their supervisors?
est. Advanced economies were in the middle.
We found that the gender gap in leadership
• More women on boards contributes to diver-
sity of thought, which leads to better deci-
of women into leadership roles in banks and su-
pervisory agencies. — Source (World Economic
In a previous paper, we showed that large does make a difference when it comes to bank sions; and Forum).

Congratulations FBC Holdings !

Herentals Group of Colleges and Schools Group CEO Dr Innocent D Benza,
Board of Directors, College Management Committee and Staff wish to
congratulate FBC Bank for winning the following accolades on its continued
firm commitment towards embracing world-class financial services
technologies in offering high quality ,secure and safe convenient services.
1. FBC Bank - Overall Winner (Best Bank - Banks & Banking Survey Awards 2020)
2. MicroPlan - Winner Service Excellence Award Microfinance Sector (CCAZ)
Our Whatsapp Numbers 3. FBC Holdings - Winner Most Innovative Organisation (CCAZ)
0785 605 192 4. FBC Bank - Best Digital Bank (Digital Banker Africa)
0771 922 025 We are happy for you beyond imagination.
or Visit Our Headofce at
No. 78 R Mugabe Way
Harare Like our FB page: herentals group of colleges
“With Herentals,you rise & rise & rise” Instagram Handle : herentals_college_2020
www.herentalscollege.ac.zw fb herentals group of colleges & schools
 SUPPLEMENT TO THE ZIM INDEPENDENT DECEMBER 11 TO 17, 2020 C31

FBC HOLDINGS

FBC Bank wins 2020

Excellence in Corporate
Governance Awards

FBC Bank Board Chairperson Taka Mutunhu

FBC Bank won three prestigious Corpo- “From a Risk Management and In-
rate Governance Awards at the 8th edi- ternal Reporting Perspective, FBC Bank
tion of the Institute of Chartered Secre- manages risk through a comprehensive
taries and Administrators in Zimbabwe framework of risk principles, organisa-
(ICSAZ) Excellence in Corporate Govern- tional structure and risk processes that
ance Awards prize presentation ceremo- are closely aligned with the activities of
ny held at a local Hotel on Wednesday 09 the FBC Holdings Group. In line with the
December 2020. Group’s risk strategy, size and complex-
The awards are listed below: ity of its activities, the FBC Bank Board
• Best Banking Board Governance
Practices,
established a risk governance structure
and set responsibilities that are adequate
• Best Banking Risk Management Prac-
tices, and
to meet the requirements of a sound risk
management framework.”
• Overall Best Corporate Governance
Disclosures by a Banking Institution
The composition of the FBC Bank
Board shows a good mix of skills, experi-
The ICSAZ 2020 Excellence in Corpo- ence as well as succession planning. The
rate Governance (ECG) Awards report bank derives tremendous benefit from
articulates that ECG winners exemplify the diverse level of skills and experience
excellence in corporate governance as of its Board of Directors which is respon-
expounded by various frameworks rec- sible for setting the direction of the bank
ognised as benchmarks for good corpo- through the establishment of strategies,
rate governance practice and reporting in objectives and key policies. It also moni-
Zimbabwe. tors the implementation of these policies
The scoring during adjudication is through a structured approach to report-
based on disclosures made in the Annual ing and accountability.
Report and other information sources Excellence in Corporate Governance
that present evidence of internationally Awards (ECGAs) were introduced in 2013
accepted best practices. with the objective of promoting good
FBC Bank is one of the leading and corporate governance practices in Zim-
best governed home-grown financial babwe. The Awards recognise efforts of
services institutions in the country. Over corporate boards for effectively leading
the years, the bank has demonstrated their organisations in a sustainable, in-
sustainable efforts towards maintaining novative and ethical way.
robust corporate governance standards Over the past years the ECG Awards
that are essential for creating long-term have become Zimbabwe’s most pres- DMH- a Band 1 Ranked Law Firm for General Business
shareholder value. tigious awards for corporate governance. by Chambers & Partners, is proud to be associated with the
Speaking on the sidelines of the Ex- The ICSAZ ECG Awards evaluate reported
cellence in Corporate Governance Prize corporate governance practices of par- FBC Holdings Limited Group and takes this opportunity to
presentation ceremony, Tich Mabeza, ticipants and the impacts of the actions congratulate the Group on its recent recognition as follows:
Company Secretary, FBCH said: “We of corporate boards in the environment
are proud of being recognised for main- and all the stakeholders.
taining top-notch corporate governance The 2020 ECG Awards paid particular
standards. attention to whether the organisation’s
“As a matter of fact, these awards corporate governance reporting provides
bear testimony to the FBC Bank Board’s concise communication about how the 1. FBC Bank Limited-Overall Winner (Best Bank- Banks
dedication towards the principles of board went about directing the organi- and Banking Survey Awards 2020) and Best Digital
openness, integrity and accountabil- sation’s strategy, governance, perfor-
ity. As a leading financial services brand, mance and prospects. Adjudication for Bank – Digital Banker Africa;
we recognise the developing nature of the awards involved an evaluation of
corporate governance and continuously reported corporate governance practices 2. FBC Holdings Limited - Most Innovative Organisation
assess our institution’s compliance with by companies listed on the Zimbabwe
local and international corporate govern- Stock Exchange(ZSE), banking institu- (Contact Centre Association of Zimbabwe); and
ance practices. tions, SEPs and insurance companies.
3. MicroPlan Service Excellence Awards Microfinance
Sector (Contact Centre Association of Zimbabwe)
4. FBC Bank - Digital bank Award (Digital Banker Africa)

DMH wishes the FBC Holdings Limited Group prosperity for

the years to come.
C32 ADVERTISING SUPPLEMENT TO THE ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020

FBC HOLDINGS

Waterfalls projects over the years

Waterfalls housing project (above)

ZIMBABWE INDEPENDENT DECEMBER 11 TO 17 , 2020 J3
J4 ZIMBABWE INDEPENDENT DECEMBER 11 TO 17, 2020