Business

Business agree on price stabilisation process

BY TATIRA ZWINOIRA BUSINESS organisations have agreed on a process to arrest the economic decline and stabilise prices of basic commodities. At the end of last week, the forex parallel market rates had jumped to as high as US$1:RTGS$6,5, an increase of 30% from the start of the week with businesses sourcing their monies mostly from this market. Foreign currency from the parallel market is mainly used to import raw materials and settle foreign currency obligations because the official interbank forex market is failing to meet demand. “A high-level meeting of business member organisations was held at Confederation of Zimbabwe Industries (CZI) on Friday. Business membership organisations representatives from, industry, agriculture, mining, banking and retail were present. The purpose of the m...

Investors call for more protection

by Thomas Mupfuka THE Securities and Exchange Commission of Zimbabwe (SECZ) has been challenged to come up with strong monitoring mechanisms to protect interests of the investing public. The call comes amid concerns that some directors of listed companies are not disclosing enough information to shareholders. Rob Stangroom an investor relations expert said: “Directors of listed companies have two common obligations to shareholders. The first one is to provide a market of their shares which is why they list on the stock exchange. The second one, which is not well-known is to ensure that investors get a fair price for their shares when they sell those shares. “And here, this is the core obligation that listed companies have to investors to provide information that is timely, regular and more...

Zimbabweans Sceptical After Mthuli Ncube Claims To Have Raised US$500m From International Banks For Interbank Forex Market

Finance Minister Mthuli Ncube’s announcement that the government has secured US$500 million from international banks in order to supply the interbank forex market has been with mixed reactions by Zimbabweans. Most seem sceptical and have accused the minister of playing it fast and loose with the truth. They went on to remind the minister of […] The post Zimbabweans Sceptical After Mthuli Ncube Claims To Have Raised US$500m From International Banks For Interbank Forex Market appeared first on iHarare News. iHarare

Zvadirwa Sugar?….RBZ To Pump US$500m To Revive Struggling Interbank Forex Market

  The government through the Reserve Bank of Zimbabwe will be pumping half a billion united states dollars (US$500 million) in an effort to revitalise the interbank foreign currency market. The interbank market has largely been underwhelming since it was introduced with businesses complaining about how hard it is to =[source foreign currency from there […] The post Zvadirwa Sugar?….RBZ To Pump US$500m To Revive Struggling Interbank Forex Market appeared first on iHarare News. iHarare

C-TRADE hosts inaugural investor day conference

The 15th of May 2019 will perhaps be the day that will not be forgotten easily in the local capital market as it marked the beginning of communication and dialogue between investors and capital market intermediaries. The event was held under the theme, ‘Fostering financial inclusion and stimulating economic development through exploiting investment opportunities on Zimbabwe’s capital markets.’  The C-TRADE investor day conference was meant to foster interactions on unlocking economic value through capital markets. Over 300 delegates comprising market intermediaries, regulatory bodies, high net worth investors, retail investors, potential investors and government officials converged to participate at the conference through presentations, panel discussions and question and answer sessions. N...

The role of an internal audit function in identifying and monitoring business risk

Business risk is the exposure of an organization to factor(s) that threaten its ability to meet its objectives. Business leaders face a range of complex, interconnected and fast-evolving risks. New technologies create new markets and disrupt existing business models. New tax laws could create windfalls or hamper international commerce. Weather events wreak havoc on regions and industries. Geopolitical volatility raises serious questions about global operations. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities. Business risks include: • Financial risk (price, liquidity, credit); • Operations risk (capacity, cycle time, sourcing, supply chain); • Information processing/technology risk; • Integrity risk (fraud, unauthorised use, repu...

Govt to repossess idle platinum claims

President Emmerson Mnangagwa (third from left) being briefed by one of the mine officials on the operations of the Anglo-American-owned Unki platinum mine smelter in Shurugwi, Midlands province, yesterday BY Kuda Chideme Mines minster Winston Chitando has urged holders of mining claims to use or risk forfeiting them to the State. Chitando, who was speaking at the official opening of Unki Mine’s $62 million smelter, said government had issued several platinum claims, but mining houses were taking too long to dig for minerals. “We will be pushing for clear development plans in order to extract and add value. We would like to see what we are seeing here for every platinum concession and where there is no clear path for that the ‘use it or lose it policy’ will apply,” Chitando said at a ceremo...

Economy to contract by 20% in US$ terms

BY TATIRA ZWINOIRA ZIMBABWE’s economy will contract by 20% in US dollar terms to US$20 billion by year end due to worsening economic conditions, new estimates released by Treasury show. In his “State of the Economy” address presented to Parliament on Wednesday, Finance minister Mthuli Ncube said following the adoption of the RTGS dollar in February as the currency of reference, his ministry rebased the GDP value accordingly to RTGS$70,3 billion for 2019 from RTGS$40 billion last year. Using the official exchange rate from the central bank of US$1:RTGS$3,52 this translates to nearly US$20 billion down from government’s US$25 billion GDP value for Zimbabwe last year. “However, in 2019 Madam Speaker, GDP is expected to be way down due to the impact of the El-Nino-induced drought, the devastat...

Interbank not helping us: Delta

BY TATIRA ZWINOIRA Delta Corporation Limited chief executive officer Pearson Gowero says the company is struggling to access enough foreign currency from the interbank market recently introduced by the Reserve Bank of Zimbabwe. Despite struggling to meet their foreign currency requirement, the beverage manufacturer grew its profit after tax by nearly 62% to ZWL$143,23 million for the financial year-ended March 31,2019 from the comparative ZWL$88,5 million previous period. This performance was driven by increased revenue. “The biggest challenge is that we do not sell to the financial consumer, we sell to other businesses, so if the other businesses are earning foreign currency then they can pay us foreign currency… we offer some of our products in US dollars, but the bulk of what remains is...

Zim firm partners UAE-based satellite broadband company

BY MISHMA CHAKANYUKA UAE-based global satellite broadband service provider, Yahsat yesterday announced a strategic partnership with Zimbabwean operator, Zodsat. YahClick provides commercial Ka-band satellite broadband service in the Middle East, Africa, Central and South West Asia, while Zodsat, is a market-leading teleport, satellite and network operator in Zimbabwe. “The partnership is aimed at providing Zodsat’s customers in Zimbabwe with a tightly integrated offering and a tailor-made solution to accommodate changing demands and trends of the market,” Zodsat chief executive officer Arnold Chimambo said. “This addition to our portfolio builds on our strong and growing relationship with satellite operators. This further extends our infrastructure and network operations, enabling the deli...

Inflation shoots to 75%

BY Business Editor ZIMBABWE’S annual inflation rate for the month of April shot to 75,86%, up nine percentage points on the March rate of 66,8% as the country fails to tame price increases. Last month the statistics agency, Zimstat, adopted a new matrix to calculate the consumer price index, but going by the old base, the inflation rate for April would have been 175,326%. However, in a country where trust in official data is slim, the figures remain disputed with scholars suggesting that the country’s inflation is now in the region of 200%. On a month-on-month basis the inflation rate in April 2019 was 5,52% up from 4,38% in March 2019. “The month-on-month food and non-alcoholic beverages inflation rate stood at 7,85% in April 2019, gaining 2,75% points on the March 2019 rate of 5,10%. The...

Govt’s erratic payments affect procurement

BY TATIRA ZWINOIRA GOVERNMENT procurement processes are being weighed down by delays in releasing payments for goods and services, NewsDay has learnt. “The issue of arbitrage pricing mainly comes from the lack of confidence the private sector has in government. Government was a bad debtor. It was known that when you contract with government you do not know when your money is coming. So, the locals would now hedge in terms of pricing that maybe I will get my money two years later,” Procurement Regulatory Authority of Zimbabwe (Praz) chief executive officer Nyasha Chizu, told NewsDay on the sidelines of the National Public Procurement Conference. “What the Act (Public Procurement and Disposal of Public Assets Act) has provided now is that the public sector entity will not enter into contract...

  • 1
  • 2
  • 6