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IDBZ refocus operations

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IDBZ-BANK-2

The bank’s total assets grew six percent due to increased long-term loans and held-to-maturity investments

THE Infrastructure Development Bank (IDBZ) has shifted its business model from the unsustainable short-term business to medium- to long-term infrastructure business, the Financial Gazettehas learnt.

Revealing this, IDBZ chief executive officer, Thomas Sakala,said although the model resulted in better margins than infrastructure, the bank suffered from significant impairment provisions due to non-performing loans.

Now, the development bank, which had since 2010 adopted a model anchored on short-term business to ensure that it survived under harsh economic environment, has drifted back to its original core mandate, which is medium- to long-term infrastructure business.

“We have drifted from (the) short-term business, which had become unviable, to focus our operations towards the medium- to long-term infrastructure business in line with our core mandate of infrastructure development in key sectors of energy, transport, water and sanitation, (Information Communication Technology) ICT and housing,” said Sakala.

He said this strategic realignment towards the bank’s mandate has, as anticipated, resulted in a temporary dip in the bank’s 2015 financial performance. This has resulted in the bank recording a loss of US$4 million.

But the benefits of such a shift are expected to be realised between 2016 and 2018, as the medium-term strategy gets fully implemented. We expect to break even with a modest profit in 2016 and remain profitable from 2017 onwards.

IDBZ’s profits had been declining since 2013 when it recorded a profit of US$2,9 million. In 2014 profit dropped to US$0,9 million and last year the bank reported a US$4 million loss as the short-term business became unviable.

IDBZ finance director, Cassius Gambinga, also revealed that the bank was exposed to about US$25 million in Treasury Bills (TBs).

Commenting on the TBs exposure,Gambinga said: “Most of the TBs we have came up as a result of loans to the Zimbabwe Asset Management Corporation. We supported the Tokwe-Mukorsi project by availing about US$6 million. These are maturing end of November this year. In terms of equity, we had US$18,7 million from government. These TBs issued this year are maturing in 2021.”

In its financial results released last week for the year to December 31 2015, the bank reported a loss of US$4 million from UIS$0, 88 million reported in comparable period in 2014.

The loss, Gambinga said was a result of retrenchment cost of US$2,3 million, fair value loses on property amounting to US$1,8 million and NPL write-offs.

Total expenses went up six percent to US$10,14 million during the period under review from US$9,5 million in 2014.

This was due to retrenchment costs incurred as part of refocusing the bank to its core business.

Total assets grew six percent due to increased long-term loans and held-to-maturity investments. IDBZ’s total assets stood at US$130,69 million as at December 31 2015 compared to US$122,79 million at the end of 2014.

Its liabilities at the end of December last year was US$102,62, while in 2014, the bank had liabilities amounting to US$90,49 million, representing a 13 percent increase. This was due to an increase in bonds and pre-sales revenue on housing stands.

Giving a trading update for the six months to June 30 2016, Gambinga said the bank recorded a profit of US$0,17 million, a 104 percent from a loss of US$3,98 million recorded during the same period in prior year  due to increased income from long term business.

Total income increased 64 percent to US$2,96 million from US$1,81 million recorded during the same period in prior year.

Gambinga said the bank expects to break even with a modest profit in 2016 and remain profitable from 2017.

See Q and A with IDBZ CEO, Thomas Sakala in the Financial Gazette on Thursday

Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

 


ZSE August turnover down 38 percent

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Investors on the troubled Zimbabwe’s Stock Exchange are losing money, as stock prices plummet due to a worsening economic situation in the country.

Investors on the troubled Zimbabwe’s Stock Exchange are losing money, as stock prices plummet due to a worsening economic situation in the country.

THE Zimbabwe Stock Exchange (ZSE)’s turnover for August dropped by 38 percent to US$7 million on the back of persistence liquidity challenges being experienced locally.

Trades on the local bourse were mainly propelled by foreigners.

ZSE market capitalisation marginally grew in August to US$2,86 billion from US$2,85 billion in July.

The industrial index edged up 0,42 points to close at 99,26 due to gains in a few heavyweights.

Among the top movers were Barclays, Padenga and Old Mutual adding 20 percent, 11,70percent and 11,19 percent, respectively.

Significant losses were recorded in National Tyre Services, African Sun and Willdale, shedding 29,41 percent, 19,33 percent and 11,76 percent in that order.

Investors on the ZSE are losing money, as stock prices plummet due to the worsening economic situation in the country.
A total 35 stocks closed in the red during the first six months of the year, with at least 27 of these falling by double digit figures. This means investors became poorer than they were during the same period last year.

Year-on-year to June 30 2016, counters such as manufacturing firm Medtech Holdings lost 50 percent of their value.
This has resulted in a crisis on the equities market, where investor sentiment has been hit by low returns, a volatile political situation and declining corporate earnings.

In August the mining index gained 2,33 points to 26,32 points, although Bindura Nickel Corporation recorded a significant 9,09 percent loss in the period.

Total volumes traded fell 26,99percent to 41,26 million shares.

Zimbabwe is still heading in a direction where risk aversion will remain key to investment decisions. As such, the market is not expecting a better performance from ZSE as long as the country fails to holistically address issues to do with policy consistency, ease of doing business, indigenisation and economic empowerment laws, attraction of Foreign Direct Investment (FDI), cost of funding and labour laws.
This outlook appears to suggest that Zimbabwe’s fiscal space will remain tight, while disposable incomes and capacity utilisation in the industrial sectors will remain low. This will further weigh down the stock market.

Commenting on ZSE’s outlook, stock brokers, Lynton-Edwards, said: “We expect economic headwinds to continue mounting in 2016, hence impacting negatively on the upside potential of the market. Economic theory stipulates that there is a strong positive correlation between stock market performance and economic growth. Our view is that there are no economic stimuli in sight which will likely improve the country’s economic fortunes in 2016.”

Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

No cash deposit, no fuel purchase says RBZ

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Reserve Bank of Zimbabwe

According to an Exchange Control circular from RBZ, the move is an interim measure.

IN a bid to ensure cash flows back into the system, the Reserve Bank of Zimbabwe (RBZ) has directed banks to apply the matching principle when processing foreign payments.  This means that bankers will process fuel and crude oil payments for cash depositing companies by matching the cash deposits with cross border transfers on a ratio of 1:1.
 According to an Exchange Control circular from RBZ, the move is an interim measure.
 
“Authorized dealers are advised, with immediate effect, to process fuel payment transactions for cash depositing fuel companies by matching, as an interim measure, the cash deposits with cross body transfers on a ratio of 1:1,” reads the exchange control circular no. 5 of 2016.
 
The same also applies to manufacturers of cooking oil.  However, some of the banks had already been doing this for most of their importing clients even for those who are not in the top priority.
 
“Furthermore, authorized dealers are encouraged to continue availing funds for fuel and edible crude oil in terms of the existing Priority List guideline for non-cash depositing companies.”
 
Both fuel and soya crude oil payments are in the Exchange Control Priority List 1.
 

The RBZ also said that banks are now required to declare all cash deposits made by fuel and crude oil importing companies.
 
Meanwhile, according to the RBZ monthly review for June, cash transactions declined 25 percent to US$534 million as people continue to use plastic money in response to the current crisis which has seen banks lower the limits on withdrawals. Most businesses have responded by installing POS machines while most fuel dealers now offer swiping facilities.
 
As at the end of June 2016, the number of POS devices in the market increased to 19,280 representing an increase of five percent from 18,330 in May. At the same time mobile payment agents stood at 34,351 as compared to 33,777 in May.  Debit, credit and prepaid cards increased to 2, million in June 2016, from 2,71 million recorded in May while bank accounts increased to 3,86 million.
 
The monthly report says that overall there was an increase of seven percent in the value of transactions processed through the National Payment System to US$6,9 billion from$6.48 in May 2016. FinX

Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

Lobel’s Bread appoints new CEO

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Lobel’s was last year acquired by Takura Capital in a deal that saw them repaying the bread-maker’s US$18 million debts to CBZ, Metbank, FBC Bank and NMB.

Lobel’s was last year acquired by Takura Capital in a deal that saw them repaying the bread-maker’s US$18 million debts to CBZ, Metbank, FBC Bank and NMB.

THE country’s oldest bread maker, Lobel’s Bread Holdings, has appointed Socky Kaphia as its new chief executive officer.

Kaphia, who was the company’s manager for procurement, takes over from SindisoMasuku whose contract was not renewed after it expired on June 30 this year.

The move to replace Masuku was part of private equity firm Takura Capital’s strategy to find “the right person” to maintain the turnaround strategy that Lobel’s embarked on last year. The company which was once on the brink of collapse now controlled a significant share of the market.

Lobel’s was last year acquired by Takura Capital in a deal that saw them repaying the bread-maker’s US$18 million debts to CBZ, Metbank, FBC Bank and NMB.

The development meant that the four banks, which temporarily converted their debt into equity under a five-year plan to resuscitate Lobel’s, exited to concentrate on their core business.

The Takura Capital transaction signalled a turnaround for Lobel’s, which in 2008 was struggling with creditors besieging the business.

Contacted for comment, Masuku who took over from Ngoni Mazango in May last year confirmed that he had left the organisation.

“When Takura venture took over I was the FD (finance director) and (I was then) upgraded to CEO. I had a fixed contract for one year from May 2015- June 2016. It was not extended after that time frame and I left,” said Masuku.

Makusu said he has since pursued other interests outside the bread-making sector. He said he was not fired, but appreciated the direction the company was taking and that they felt he was not the right person for the job, to have his contract renewed.

“My departure was mutual; we understood each other,” he said.

During his tenure he had his fair share of clashes with the company’s workers and Barking Industry Workers Union (BIWU).

In April this year Lobel’s was embroiled in a retrenchment furore with its employees after the latter argued that the bread-maker had not followed proper procedures stipulated under the Labour Act in laying them off.
The company had short-listed several employees for compulsory retrenchment and offered them a package in the form of three months’ notice pay and one month salary for every two years served. It also undertook to settle their leave pay as well as paying for medical aid for three months up to June

In its letters to the affected workers, Lobel’s alleged that the retrenchment packages followed negotiations with the works’ council conducted on April 1.The letters bore the signature of the company’s human resources manager.
But a number of workers refused to sign the retrenchment letters saying minutes of the purported works council meeting were manipulated and did not reflect their views on the retrenchment plan.
The employees’ legal representative, Gift Maoneka, said the retrenchment process contradicted the law, which was why BIWU challenged the process.

Takura Capital, a private equity house established in 1997, introduced new retail outlets selling bread and confectionary across Harare as part of its growth strategy forLobel’s.

Lobel’s was previously owned by Ceuvost Services – a consortium comprising former FBC Holdings Limited chief executive officer,  Livingstone Gwata; the then banking group’s chairperson Herbert Nkala, FCM Motors; chairman Freddy Mtanda; and Brigadier-General (Retired) David Chiweza.The four held about 25 percent shareholding each in the company.

Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

 

Bill Cosby to return to court for evidence dispute in sex assault case

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Bill Cosby

The Cosby Show star is hoping to get earlier damaging testimony excluded from his sexual assault trial.

BILL Cosby will appear in court later as his lawyers fight to keep key evidence out of his upcoming sexual assault trial.

The 79-year-old is accused of drugging and molesting a woman he mentored at Temple University in 2004.

In 2005, complainant Andrea Constand filed a lawsuit regarding the matter.

He had been a university trustee and she had managed the university’s women’s basketball team at the time.

In the deposition, Cosby had admitted having extra-marital affairs and giving women drugs and alcohol before what he described as romantic “rendezvous”.

Bill Cosby is helped into the court in July when his lawyers failed to get the case against him thrown out

Cosby is helped into the court in July

With regard to Ms Constand, he told the deposition he had gone “into the area that is somewhere between permission and rejection (and) I am not stopped”.

He said he had given her several pills, which he later said were Benadryl, before what he described as a consensual encounter.

Ms Constand said she had thought the pills were herbal products and that she was later floating in and out of consciousness.

Cosby’s lawyers say that he was told he would not be charged as a result of what he had said but this year a judge ruled that he had never been granted immunity from prosecution.

As well as hoping to exclude the deposition evidence, Cosby’s lawyers want to prevent any trial jury from hearing a tape of a conversation between Cosby and Ms Constand’s mother.

The secretly-recorded phone conversation took place a year after the alleged sexual assault and was described by Cosby in the 2005 deposition as “I’m apologising because I’m thinking this is a dirty old man with a young girl”.

District Attorney Kevin Steele, however, will fight to include both pieces of evidence during the hearing, which will take place in Philadelphia.

A date for the trial may also be decided at the hearing.

Cosby was the star of The Cosby Show, which told the story of a fictional black family during its 1984 to 1992 run. – news.sky.com

 

Zimbabwe’s legal system is being digitised with virtual sittings & electronic processing – here’s how it will affect justice delivery

Women in IT jobs, why gender imbalance is still an issue in developing countries

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By Batsirai Chikadaya

image credit: soapboxscience I recently stumbled on a report on Women in IT jobs by Deloitte. The report predicts that by the end of 2016, less than 25% of IT jobs in developing countries will be held by women. The report explained the following factors are contributing to gender inequality in IT jobs: Poor Education […]

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Econet attempts to improve customer services with interactive voice response (IVR) information centre

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By Nigel Gambanga

Are you looking for information on Econet products and have been put on hold by customer care? The folks at Econet Wireless have decided to make it easier for you to get that information by introducing an interactive voice response (IVR) information centre. It’s called the Econet Information Centre and it’s accessed through a tool free number […]

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Econet attempts to improve customer services with interactive voice response (IVR) information centre

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Hunger ravages Manicaland

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MANDI-CHIMENE

Mandi Chimene is the Manicaland Provincial Affairs minister and Makoni South member of parliament.

MUTARE — Nearly half of the people of Manicaland are fighting hunger following a poor 2015/16 agricultural season.
Manicaland has a population of about 1,8 million people.

Statistics released by Manicaland provincial administrator (PA), Fungai Mbetsa, indicate that a total of 729 100 people in the region are currently receiving food aid from government and World Vision International, an evangelical Christian humanitarian aid, development and advocacy organisation.
On its own, World Vision is taking care of 60 000 households, which translates to about 300 000 people.
Government has 85 820 households on its food relief programme, which is about 429 100 people.
The assumption here is that each household has five family members.
Government is distributing 50 kilogrammes of grain to each household while World Vision is availing US$6 per each individual on a monthly basis, plus grain.
Monthly, government is distributing 4 291 tonnes. 
Since the commencement of the programme, government has distributed 34 138 tonnes.
Buhera district has emerged as the hardest hit with 150 000 beneficiaries (30 000 households) under government assistance and an additional 133 000 individuals being assisted by World Vision.
Chipinge comes second with 81 210 individuals (16 242 households) supported by government plus another 100 000 benefiting from World Vision.
A total of 100 000 individuals are receiving aid in Chimanimani from both government and World Vision, while 51 280 are being assisted in Makoni. 
A further 42 000 (8 400 households) and 37 110 (7 422 households) are receiving food aid in Mutare and Nyanga respectively.
Mutasa district has the lowest number of beneficiaries standing at 29 900 (5 980).
Mbetsa said the number of beneficiaries has been on the rise, with statistics putting the current figure at 85 820 households in all the seven districts of Manicaland. 
“This figure is huge since we were using a ratio of five family members per each household. We also have an additional number of beneficiaries in Buhera, Chipinge and Chimanimani. Here, we have another list of beneficiaries being supported by World Vision. This is an additional list to that of those supported by government in the very same districts. In Buhera there are 133 000 individuals, 100 000 in Chipinge and slightly less in Chimanimani,” he said.
“Government is on top of the situation; it has secured enough grain to support the beneficiaries,” he added.
Legislators and lobby groups within the affected areas said the food situation was dire.
Chipinge South legislator, Enock Porusingazi, said his constituency was the hardest hit in the district.
“My constituency is the hardest hit. It’s under (natural ecological) region Five; we received very little rain. So if we are talking of drought, we are talking of Chipinge South. We had no harvests here and we rely on food handouts from a few partners working with government. Normally people are supposed to have three meals a day but now they are missing one. If we don’t see any other interventions from more partners, people will be going for days without a meal. This is the situation that we are heading towards. 
“Water is also becoming a problem, our rivers are all dry and we are depending on boreholes. 
“But the challenge is that the boreholes are also drying up. 
“People can now only get water from them during the morning and night,” said Porusingazi.
A Chipinge-based lobby group — Platform for Youth Development (PYD) — said livestock have not been spared from the drought.
“The food situation is dire and pathetic in Chipinge. 
“Already we have cases of families even failing to have one meal a day which has become the trend. Only in the highlands of Chipinge East and Central families still have a bit of food, but the distribution is being politicised,” said PYD founder and director, Claris Madhuku.
The Member of Parliament for Musikavanhu constituency, Prosper Mutseyami, said food distribution for the vulnerable members of the community should be prioritised.  
Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

Mutanga loses another property wrangle

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Bernard Mutanga

Bernard Mahara Mutanga

CONTROVERSIAL Harare businessman, Bernard Mahara Mutanga, has been stopped from grabbing a 140 hectare piece of land belonging to a Harare couple after he fraudulently changed ownership of the company through which they owned the land.

The High Court in Harare last month ordered Mutanga to return the title deeds of property described as number 4039/92 for Lot 9 Block S Hatfield Estate measuring 140,3 hectares to the directors of Bellepaise Estate Private Limited, whom he has been trying to dispossess of the land.
Facts of the matter are that in 2006, Mutanga, through his company, Mai Kai Real Estate, offered to buy the entire shareholding of Bellepaise Estate for US$2,2 million, but never paid anything. 
Instead, Mutanga tricked the directors of Bellepaise Estate — Sean Barry Sharman and Alison Mary Sharman — of the land’s title deed.
He claimed that he wanted to process certificates of title deeds.
Instead, Mutanga went on to fraudulently strip the Sharmans of their directorships of Bellepaise Estate.
They were replaced by himself and his wife, Tsitsi.
On this basis, Mutanga started claiming legal ownership of the land, prompting Bellepaise Estate to approach the High Court for relief.
Justice David Mangota, on August 16, ordered Mutanga to return the title deed after ruling that he was not the legal owner of the immovable property.
“All the annexures which the respondents (Mai Kai and Mutanga) attached to their papers were, in the court’s view, devoid of meaning. They were more confusing,” Justice Mangota pointed out.
“The applicant (Bellepaise Estate) described them as having been a fraud. The court could not state the same in so many words although, on a proper analysis of the annexures, their contents tended to gravitate in the stated direction,” added the judge.
Mutanga is a regular in the courts where he is always defending himself in matters involving properties. 
In June this year, he appeared in court facing fraud charges arising from the sale of residential stands on a property belonging to Crest Breeders International.
Last year, he was also in court charged with fraud after he tried to wrestle a 30 000-square metre piece of land off Gurlyn Burton A Farm in Borrowdale, from its owners, Phillip Macquire and his sister.
Mutanga had used fraudulent documents to acquire a duplicate title deed from the Deeds Office after claiming that the original one had been destroyed.
The controversial businessman has so far this year had two of his properties auctioned to settle judgment debts owed to people whom he has swindled  money.
Mutanga and his company have in the past been involved in cases of selling properties to more than one buyer.
In February this year, his posh house was also auctioned by the Sheriff of the High Court over a case in which he duped a diamond cutting firm of US$100 000. 
Mutanga, who also presents himself as the president of the Braitwood Institute of Gemmology and chief executive officer of the Zimbabwe Diamond Processing Centre, swindled a local diamond processing company, African Star Diamonds, of US$100 000 in 2011.
The money had been given to his company to buy diamonds from the Minerals Marketing Corporation of Zimbabwe.
The protracted civil dispute resulted in Mutanga’s property in Harare, known as 692 Quinnington, a 5 031-square metre piece of land with a double storey building,  being auctioned by the Sheriff.
The double storey property with an estimated open market value of US$400 000, was sold for US$150 000 after valuers sent by the Sheriff to evaluate the property were denied access, resulting in a situation where there was very limited information of the property. 
As a result, there was only one buyer interested in the property who made the US$150 000 bid.
Mutanga, who has solid political connections, has also been involved in a number of controversial cases.
He was the character behind the infamous Bernwin Development Company, which was involved in several controversial property deals from the late 1990s to the early 2000s, before he ventured into the diamond sector. 
Around the year 2000, Mutanga masterminded the arrest of two senior managers of Beverly Building Society (now part of CBZ Holdings) who had devised a way of stopping him from diverting funds from two loans that Bernwin had secured from the building society in 1999, strictly for the development of residential properties in Chadcombe suburb.
The arrests resulted in the managers successfully suing the law enforcement agents for civil damages, while Bernwin and Beverly sued and counter-sued each other.
Many home-seekers in Harare and Mutare lost money after investing in the Bernwin housing schemes.
Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

IBDZ reveals plan to boost infrastructure

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THOMAS-ZONDO-SAKALA

Thomas Sakala

FORMER African Development Bank executive, Thomas Sakala (TS), was last year appointed chief executive officer (CEO) of the Infrastructure Development Bank of Zimbabwe (IDBZ). The experienced banker sits at the centre of an institution whose mandate is difficult to achieve in a country that is estimated to require about US$20 billion to repair its ageing public infrastructure. In his first interview with a local newspaper since taking over the hot seat last year, the IDBZ CEO tells our Business Reporter, Phillimon Mhlanga (PM) that he will lead his team to deliver on the mandate given to them by the Government of Zimbabwe. Below are excerpts from the discussion.

PM: You assumed your new role as IDBZ CEO about one year ago. Would you tell us your experiences? How has it been leading the bank?
TS: I have been running away from you (the media) for almost a year now partly because I wanted to understand the business first and put systems in place. But it has been quite interesting. I mean it is a challenge. But I am enjoying it. I came into an institution that has a very clear mandate from government. And our mandate is clearly very foresighted where we have to pay adequate attention to infrastructure, which is always top of the agenda. Secondly, we have been making efforts to look at what we have been doing, what have been the short comings, and how these can be addressed in order to deliver on our mandate. What made it easy for me is that I found a team that was very able and always ready to carry out their responsibilities. The specific projects that we have been working on have the potential to assist downstream industries. It is important that we complete the projects within their set time frames. We should bring closure to projects that we are working on within the agreed period. Of course, for energy (projects), it is critical in this economy; we have been facing great challenges in this area. To some extent, rather ironically, we have been given breathing space because industry has been closing so the demand had gone down, allowing the supply to be a little bit more regular. We need to make sure that we bring greater capacity in terms of efficiency.
PM: It is estimated that US$20 billion is needed to fix the country’s infrastructure. Is this achievable and what role is IDBZ playing in making sure that infrastructure projects are financed?
TS: I think the question to have is: Do we agree that we need to put that much into the kind of infrastructure development that we want to have? Yes, we do agree with that figure if we are to realise the objectives that we have. Then the next question is: How do we realise that? To achieve that, we need greater domestic mobilisation of funds and then efficiencies in what we have. But we also need to engage local, regional and international partners.
PM: In May this year, the IDBZ was given US$20 million by government to recapitalise. How has this changed the bank and are you seeking any further help from government?
TS: We are 99 percent government owned. So (government) must always support us. Our understanding is that government will always be the major shareholder in the institution and we need to work with government and we need to understand what their priority is. The Ministry of Finance can order us to support certain projects under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset). We have to prioritise that.
PM: Let’s talk about the IDBZ’s role in infrastructure development
TS: We play a convenient role. Let us say if a ministry needs some funding for certain infrastructure projects, they can come to us for assistance. Of course, we make sure that the project document is ready to go to potential investors. We can also put our money in the project. But more importantly, IDBZ’s mandate is to mobilise funds from other sources, be it institutions which are locally based or regional institutions or international institutions. That’s how we operate. And of course, we also put in equity money. We have a very clear mandate.
PM:Are there any particular projects that you are currently involved in, which you are excited about?
"The future is bright. We have dealt with very serious legacy issues in terms of the legacy debts and non performing loans".

“The future is bright. We have dealt with very serious legacy issues in terms of the legacy debts and non performing loans”.

TS: I have been trying to avoid this but I am excited about all the projects that we have in the five sectors of the economy. In each of them, there are certain priority issues that need to be addressed. Energy is very important, water for both consumption and agriculture is also important. Transportation is equally important because if we can’t move the minerals, or raw materials, it will affect the economy. Communication, education and housing are also very important. So I am excited by all the sectors. It’s an opportunity for us to contribute towards the revival of this economy.
PM: We have seen foreign contractors undertaking most if not all of your projects. Is there an opportunity for local companies to be involved in some of the projects?
TS: Yes, why not? It is always desirable that we open up opportunities for local contractors. But they also must have the capacity to deliver in a competitive environment. I think that is one of the best ways they can be involved. Unfortunately a lot of them do not have the capacity. They just wait and say I am (a) local (contractor), so I should get the contracts.
PM: The bank’s profit had been declining since 2013. Last year, IDBZ posted a loss of US$4 million. Do you think the future is bright for IDBZ?
TS: Yes the future is bright. We have dealt with very serious legacy issues in terms of the legacy debts and non performing loans. We have drifted from (the) short-term business, which had become unviable, to focus our operations towards the medium to long-term infrastructure business in line with our core mandate of infrastructure development in key sectors of energy, transport, water and sanitation, (Information Communication Technology) ICT and housing. This strategic realignment towards the bank’s mandate has, as anticipated, resulted in a temporary dip in the bank’s 2015 financial performance. This has resulted in the bank recording a loss of US$4 million. But the benefits of such a shift are expected to be realised between 2016 and 2018, as the medium term strategy gets fully implemented. We expect to break even with a modest profit in 2016 and remain profitable from 2017 onwards.
PM: Are investors in infrastructure projects becoming more risk averse? What are you seeing? Are infrastructure projects popular to invest in?
TS: From my point of view, these infrastructure projects need to be done in order to move our economy to the next stage. What makes it difficult, although it can be done properly, is the issue of power. (We need to) identify priority areas, identify the right synergies, make sure that all the background work that needs to be done is completed and make sure that we have the best in terms of the contracts that we sign. A good example is Rwanda. If you follow how that country is managing its infrastructure projects, you will find out that there is rigour and there is commitment to say that we have a national obligation to deliver on our mandate. That’s what we need to do here to have funds flowing into our intended infrastructure projects.
PM: Is there anything that you want to add?
TS: I think, like anyone else who has had an opportunity to lead such an important institution like this, it is important that when I leave the position, I leave behind a strong focus.  IDBZ should be a top bank. But we have to earn it and I hope together with my colleagues at the bank, we will be able to deliver on our mandate.    
Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

Zimbabwe retailers petition government

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Denford Mutashu

Confederation of Zimbabwe Retailers president, Denford Mutashu.

… describe demonstrators as malcontents, societal misfits
By Nyasha Chingono
THE influential Confederation of Zimbabwe Retailers (CZR) has urged authorities to take stern action against violent demonstrations that have rocked Harare, destroying supermarkets and other retail chains, the Financial Gazette’s Companies & Markets (C&M) can report.

Supermarkets belonging to Vice President Pelekezela Mphoko’s vastly expanding retail chain, Choppies, were among the victims of the violent protests triggered by increasing hardships in Zimbabwe, where authorities have been battling to stem the deteriorating economic crisis, worsened by cash shortages in banks, escalating firm closures and job losses.
After confrontations between protesters and the police two weeks ago, edgy authorities moved to ban further demonstrations last week, after issuing a Statutory Instrument (SI) that would only be lifted on September 16.
The SI attracted sharp reaction from the Zimbabwe Congress of Trade Unions, which condemned the ban that it said infringed on civil liberties.
It urged Zimbabweans to resist the ban.
But C&M can report that a few days before the blanket ban on demonstrations in Harare’s central business district, the CZR, which represents over 80 of the country’s largest retail chains, had written to Industry and Commerce Minister, Mike Bimha, asking him to take action against “MDC-T demonstrators and the NERA (National Electoral Reforms Agenda) looters” whose actions had caused “enormous” damage, loss of “millions of dollars” and inflicted “trauma on our customers and employees”.
NERA is a grouping of opposition political parties that are fighting for electoral reforms in Zimbabwe.
During the pandemonium that rocked Harare after security forces reacted to the demonstrations by firing teargas and beating up scores of people, including elderly citizens, one of the country’s oldest chains, Nagarji & Sons, reportedly lost US$130 000 worth of merchandise.
It is still renovating the vandalised building.
Vintage Clothing Shops, Walk Tall Footwear, Adam and Sons and Sparkle Footwear, were among firms that fell victim to the violence and looting, which was also aimed at bringing political change in Zimbabwe.
“The Confederation of Zimbabwe Retailers would like to express its disappointment to various incidents of thuggery, theft, vandalism and general loss of business that happened in the three days that MDC supporters went on a rampage and vandalised retail shops during their demonstrations,” said CZR president, Denford Mutashu.
“The CZR respects the courts and constitutional rights that granted permission for the peaceful demonstrations. But when the same right interferes with honest, hardworking and law abiding retailers who are toiling day in and out to make ends meet in this difficult economic environment and even threatens investment, then we call for government protection. In addition to losing property to the MDC-T demonstrators and the NERA looters, business lost potential revenue as free movement of our customers was seriously compromised with other customers being mugged in the process,” he added.
Mutashu called upon government to halt demonstrations unless it is convinced “that demonstrators will not violate other people’s rights”.
He added that the Minister should take steps to make sure NERA compensates businesses that fell victim to the vandalism, looting and forced shutdowns.
“The Confederation of Zimbabwe Retailers is deeply saddened…and kindly requests for government intervention to protect businesses and the general public who were made to go through such a difficult time by malcontents and societal misfits,” he added.
In an interview with C&M this week, Mutashu applauded the judiciary for upholding the country’s Constitution by giving citizens the right to protest.
However, he said it appeared some people were using the right to demonstrate to achieve other agendas.
“We would like to applaud the judicial system for working in an impartial manner,” Mutashu told C&M. 
“But what we probably see is people who use the courts for other purposes. Businesses thrive in a peaceful environment and Zimbabwe is known for its peace. However, when we have a situation where political bodies impede the smooth flow of business, we don’t know whose interest they are serving. The retailers are the biggest constituency in the Zimbabwean industry. They contribute 56 percent to the country’s gross domestic product, which is a huge contribution,” he said.
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Frank Buyanga appeals to President Mugabe

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Businessman Frank Buyanga

…reminds Head of State of wedding gift
FLAMBOYANT property magnate, Frank Buyanga, has written to President Robert Mugabe requesting him to push officials to act on his appeal for intervention in a property deal that has gone sour.

Confidential documents exclusively obtained by this newspaper indicated that Buyanga has been fighting to get authorities’ support in the transaction, which resulted in him losing a mansion that was recently auctioned for US$535 000.
His decision to approach President Mugabe came after he entered the transaction with a Harare couple, which ended in a wrangle over payment.
The matter was subsequently referred for arbitration.
Buyanga claims that the couple “alleged before the arbitrator” that they had paid him in full, yet he never received the money.
He claims that the couple had also failed to produce proof of payment.
“The last time I fervently convened with you was at the 18th annual African Union conference in Addis Ababa, 2012, wherein I informed you that I had been placed on international warrant of arrest. But I did not fully communicate my issues with you as you were about to enter a session,” Buyanga said in the letter to President Mugabe.
“I have since returned to Zimbabwe and operating several businesses thanks to polices advocated under your administration. I have not only served the First Family but been an advocate for human development and employment creation in Zimbabwe.
 “As a result of my affiliation with ZAOGA, I was invited and attended your daughter’s wedding and rendered a cash gift more significant than any of the amounts read out for Cabinet Ministers,” said Buyanga.
Buyanga highlighted his family’s contribution in the liberation struggle , which he believes warrants the President’s attention.
“My father’s family was a victim of the liberation struggle. His family was tortured by the Rhodesian Special Forces when he left the country en route to Russia during the liberation struggle. He was officially in exile from Ian Smith government for several years, hence one of the reasons I was born in the United Kingdom,” Buyanga said.
State media reported last month that Buyanga had sued the Zimbabwe Republic Police (ZRP) and a retired judge who presided over the arbitration, in his bid to have the award that resulted in the auction set aside.
He said police did not act after he requested them to look into the matter, according to several documents seen by this newspaper.
Instead, he alleged, the ZRP had acted swiftly to detain him where complaints had been raised against him.
In the letter to President Mugabe dated August 1, 2016, Buyanga praised him for his track record in building a good investment climate.
He then turned to his family’s sacrifice during the liberation war, saying they had played a significant role.
The young entrepreneur, who is known for his love for fast and expensive cars, informed the President that he paid one of the biggest gifts on his daughter’s wedding day last year.
He said he has been working with the Office of the President and Cabinet, offering advice on how to deal with the economic crisis, while his investments, which include a portfolio of over 100 properties, had created jobs.
He said he had been working flat out in the fight against sanctions imposed on government officials by the European Union (EU).
The EU has, however, relaxed most of the measures.
This paper can report that in February last year, Buyanga was making frantic efforts to rope in an Israel-based advocate to advise several authorities slapped with the EU sanctions.
He says he has also been at the forefront of drumming up support for foreign direct investment.
Buyanga says he is a deacon in ZAOGA.
Buyanga indicates that in spite of his personal sacrifices for the country, he has continued to face injustice from a number of State agencies.
“I am a victim of crime and have no one to go to, including (the) National Prosecution Authority, hence my approach to you as the final ray of hope,” said Buyanga, who was named among Africa’s top 10 millionaires under the age of 40 last year.
Several documents seen by this paper this week revealed that the arbitral action invoked bitter memories for the businessman.
In one of the letters, he tells a government official that when he was placed on the Interpol’s wanted list, “high-ranking civil servants serving in the high echelons (applied pressure) for warrants of arrest to be instigated against me”.
He said in the case that led to the Interpol action, he had used foreign capital to purchase over 100 properties in Zimbabwe through the banking system.
He said in 2008, he was stung by mosquitoes in remand prison over alleged vehicle fraud, only to be proved innocent.
Documents seen by this paper revealed that on June 27, he also wrote to the police saying he had lost confidence in their ability to protect him.
He said as a result of his “perceived” wealth, he had suffered setbacks due to countless investigations against him.
He said no government agency had found incriminating evidence against him. 
The letter said his decision to write to authorities had been caused by his disappointment with police during the case of the failed property transaction.
“It is the above sequence of events that have led to my continued loss of confidence in the ZRP,” he said.
“It is startling that when a complaint is made against me, it is dealt with the uttermost serious of attention and officers speedily visit homes and offices to make arrests. You may recall that at one stage, I was listed on Interpol as a wanted person. The allegations stemmed from one of my property establishments that own a few 100 properties which were purchased by foreign capital directly imported into Zimbabwe through the traditional banking system. However, due to pressure from (people) serving in the high echelons, arrest warrants were instigated against me and my subjects due to… my refusal to compromise to their self seeking demands. This led to loss of profit and rentals spanning a period of over half a decade. This loss is totally unrecoverable together with the fact that my name was defamed beyond calculable quantum. The bottom line really is the police’s refusal to act, neglect and failure to bring to account the accused and loss of my assets,” he said.
In a display of his flamboyance, Buyanga told the Click programme on Africa Magic in 2012 that he had lost count of the fast and expensive cars that he owns.
“I don’t know how many cars I have, of course I don’t. How am I supposed to know? It’s not like I wake up in the morning and start counting how many cars I have everywhere,” he said.
Last year, Buyanga was listed among Africa’s top 10 millionaires under the age of 40.
At that time, his personal fortune was estimated at about US$20 million.  
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Zimbabwe police brutality under the spotlight

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Images of gratuitous police violence against protesting citizens have projected the picture of a country in turmoil.

By Jacob Rukweza
A SHOCKING video clip showing Zimbabwe Republic Police (ZRP) anti-riot officers throwing teargas into a moving commuter omnibus full of passengers in Harare’s central business district has gone viral on the internet, drawing condemnation from people across the world.

Another equally horrifying scene that escaped the smartphone video lenses was that of a teargas canister that landed inside a private car along the capital’s Harare Street. 
The driver and passenger had to jump out of the moving vehicle, movie-style, to avoid suffocating, endangering other motorists and bystanders in the process.
Pictures of truncheon wielding police officers savagely attacking an elderly woman at the Harare Magistrates Court have also triggered a social media up-roar with many people variously describing the police action as sadistic, barbaric and over the top.
Similar video footage and photographs capturing unprovoked police brutality against peaceful protesters have made international news headlines, attracting the attention of the global community in the process.
These images of gratuitous police violence against protesting citizens have projected the picture of a country in turmoil — a police State where law enforcement agents have suspended the rule of law in order to clampdown on the rights of citizens.
Rights activists have raised questions about the legality and implications of this violent conduct by ZRP officers.
Two weeks ago, uniformed soldiers also joined the fray on a Friday night, invading Harare night clubs and ruthlessly bludgeoning revellers after police triggered violent protests in the capital earlier in the day, as the government moved to suppress a demonstration by opposition parties.
Eighteen opposition parties including former ZANU-PF stalwart Joice Mujuru’s Zimbabwe People First and the Movement for Democratic Change (MDC-T) led by Morgan Tsvangirai had obtained a High Court order barring the police from interfering with their intended demonstration.
Opposition parties, converging under the National Electoral Reform Agenda (NERA) banner, wanted to protest against unfair electoral processes, but were violently dispersed by anti-riot police, minutes after the High Court had authorised the demonstration.
The situation turned violent and for more than six hours the police were engaged in running battles with protesters in central Harare. 
But as it appeared the police were losing ground, the military took over and spent the rest of the night patrolling the city centre and surrounding areas where they indiscriminately attacked people on the streets, including commercial sex workers. 
There seems to be a connection between this unrestrained police brutality and recent warnings by the ZANU-PF government.
A fortnight ago, Home Affairs Minister, Ignatius Chombo, addressed a media conference where government threatened to unleash terror on demonstrators.
Recently, Information, Media and Broadcasting Services permanent secretary and presidential spokesman, George Charamba, also warned that government would not tolerate protests. Speaking on State television, Charamba threatened that government would ruthlessly crush any future demonstrations.
“Let them test the authority of the State and then they will realise that until and unless if you keep within the confines of the law, the full might of the State will visit you,” Charamba said
A shadowy, but authoritative State media columnist, Nathaniel Manheru, has also recently insinuated that government could declare a state of emergency in order to contain protesters.
A Zimbabwean police officer fires a warning shot as the riot gathers pace

A Zimbabwean police officer fires a warning shot as the riot gathers pace.

“The line has been crossed. From now onwards, it shall be another country. This caring world can go hang. We have a country to protect. And govern. After all, we have hit the bottom. We can’t fall,” Manheru wrote in the aftermath of violent protests that rocked the capital recently.
The question that has been raised by rights activists is whether or not the violent suppression of peaceful demonstrations by the ZRP is lawful.
Opposition parties argue that their demonstrations, sanctioned by the High Court, are lawful adding that it is the police who are acting unlawfully by ignoring court orders.
On the surface, the brutal actions by the ZRP seems to contradict their mission which is: “To maintain law and order, protect and secure the lives and property of the people and to institute dynamic policing practices that engender effective prevention, investigation and detection of crime.”
Clearly, unprovoked police brutality has put the lives and property of innocent people at risk.
Legal experts have indicated that the Criminal Law (Codification and Reform) Act which the police relies on to deal with protests does not give the ZRP powers to permit or block demonstrations.
The Act only requires protesters to notify the police of their intention to demonstrate. 
Lawyers have also highlighted that blocking a march that had been allowed by the High Court was evidence that police officers were deliberately violating the law.
However, following an avalanche of protests, the ZRP has unleashed the draconian Public Order and Security Act (POSA) to suppress dissent.
Under POSA the police have powers to arrest and detain demonstrators or protesters defying a ban, despite a notice of the demonstration or protest having been issued.
Leading Harare lawyer and opposition People’s Democratic Party leader, Tendai Biti, said the behaviour by the police officers was criminal and a violation of international law.
Biti said he was planning to sue rogue ZRP officers in their personal capacities in order to stop the flagrant human rights violations.
“Attacking an unarmed civilian is a war crime. International law needs to be mobilised against these ZANU-PF thugs,” Biti said.
Lawyer and MDC-T vice president, Nelson Chamisa, has also described the police action as unlawful.
The Kuwadzana East Member of Parliament intends to move a motion in Parliament asking the August House to order the Minister of Home Affairs to launch a full investigation into cases of police brutality against protesters.
Civic society organisations have said police blockades against demonstrators are unconstitutional.
Heal Zimbabwe Trust, a civic organisation specialising in peace building, underscored that the freedom to demonstrate and petition is provided for under Section 59 of the Constitution.
In a statement the civic organisation said the increase in the cases of police brutality against protesters had been exacerbated by the lack of an independent body such as the one provided for in Section 210 of the Constitution which allows members of the public to report cases of misconduct on the part of members of the police and security services. 
Incidences of unprovoked police brutality across the country have increased over the past few months.
The police violently crushed protests in Beitbridge in July after cross-border traders demonstrated against the banning of a range of imports by government through Statutory Instrument 64 of 2016. 
They also used excessive force against commuter omnibus drivers and rank marshals in Harare after they staged a protest in June against the high number of roadblocks and the use of metal tyre spikes by police to control traffic.
In July, the police also used force to break peaceful demonstrations by Harare vendors protesting against municipal police’s heavy-handedness.
The law enforcement agents have also been accused of unlawfully detaining protesters including children in Bulawayo during another round of protests in that city.
Earlier in February, anti-riot police threw teargas canisters and used water cannons and truncheons to violently disperse members of the Zimbabwe National Liberation War Veterans Association who had gathered in Harare demanding to meet their patron, President Robert Mugabe.
riot-police-in-zimbabwe

The law enforcement agents have been accused of unlawfully detaining protesters.

Journalists have also been assaulted and routinely arrested while covering demonstrations, despite producing proof that they would be on official duty.
Political activists and some government officials are worried about the implications of the disregard of human rights and the violation of the Constitution by the police.
Images of police brutality circulating in international print, electronic and social media platforms have painted a picture of a government at war with its citizens.
Non-governmental organisations said the wanton violation of the Constitution by the ZRP would make Zimbabwe a pariah State.
A fortnight ago, Cabinet Minister and ZANU-PF Politburo member, Jonathan Moyo, condemned police brutality after pictures of a bleeding protester were splashed in the media following another violent suppression of a peaceful demonstration in Harare.
“Pictures of unlawful violence can change everything for the worst as did this 11 March 2007 Tsvangirai picture!” Moyo tweeted.
The bloodied picture of Tsvangirai after being assaulted by police officers at Machipisa Police Station in Harare was an embarrassment and helped turn the international community against the ZANU-PF government. 
University of Zimbabwe political scientist, Eldred Masunungure, said sporadic demonstrations which have rocked the country in the past months have the potential to attract international attention.
Masunungure said the public outcry triggered by the police’s brutal clampdown of peaceful demonstrations would attract direct intervention from the region and the West, which has already castigated the conduct of the Zimbabwe police.
“The Zimbabwean issue could be on the agenda when the Southern African Development Community (SADC) meets, but I see the African Union taking a leading role, extending to the United Nations,” Masunungure said. 
This comes after #ThisFlag front man, Evan Mawarire, recently announced that he was organising a demonstration at the United Nations, when the UN General Assembly meets this month, to press the international body to intervene in the Zimbabwe crisis. 
Only recently, a group of senior global statesmen known as The Elders called for an inclusive transition in Zimbabwe to restore stability and economic recovery in the midst of the country’s worst crisis since dollarisation in 2009. 
Former UN secretary general, Kofi Annan, respected cleric, Archbishop Desmond Tutu and Graça Machel — all key members of The Elders — have called on SADC leaders to support a transitional government in Zimbabwe. 
The sabre-rattling ZRP has since invoked Statutory Instrument 101 of 2016, under POSA, to ban all demonstrations within central Harare for two weeks, but unrelenting protest organisers have vowed to pile more pressure on the ZANU-PF government.
Opposition political parties operating under the aegis of NERA have challenged the ban in court arguing that the police decree is unconstitutional.
With unrelenting opposition parties promising to up the ante in their fight for electoral reforms, the acts of unbridled police brutality against demonstrators are likely to create more problems than solutions for President Mugabe and his beleaguered ZANU-PF government. 
At this rate, the way out for the cornered ZANU-PF government is to halt the mindless bloodletting by its police and urgently call for dialogue with opposition parties that are agitating for comprehensive electoral reforms.     
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ZANU-PF women to push for VP post

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Vice Presidents Emmerson Mnangagwa and Phelekezela Mphoko.

THE ZANU-PF Women’s League may not make any fresh resolutions ahead of this year’s annual conference, according to highly placed sources within the organ, who insisted they were still pressing for a return of the women’s quota in the party’s presidium.

At the Victoria Falls conference last year, the women agitated for a quota compelling the party to have a woman within the presidium, which is entirely composed of men.
It is made up of party president and first secretary, President Robert Mugabe and his two deputies, Emmerson Mnangagwa and Phelekezela Mphoko.
Secretary for administration, Ignatius Chombo, is an ex-officio member of the presidium.
The women want one of the vice presidential positions to be occupied by a member of the league. 
One source said they wanted this before the annual conference slated for December in Masvingo.
It had been expected that the party’s leadership would start implementing this resolution after the congress by making the necessary amendments to the party’s constitution.
The process is initiated by the department of legal affairs headed by Patrick Chinamasa.
However, no effort has been made to alter the party charter as yet, a development which has greatly angered the women.
Their demand — part of a factional battle between two key factions in the party — comes as the party lines up numerous meetings ahead of the potentially epoch-making December conference.
Last weekend, restless ZANU-PF youths met in Harare for a Youth League National Assembly meeting, where President Robert Mugabe pulled a shocker by promoting Kudzai Chipanga to the powerful position of secretary for youth affairs. 
Chipanga replaced Pupurai Togarepi, who was dismissed for allegedly fanning factionalism. 
Togarepi was linked to a faction called Team Lacoste, which is reportedly lobbying for Mnangagwa to succeed President Mugabe. 
The other faction, which is opposed to Mnangagwa’s ascent to power, is called Generation 40 (G40).
The President’s surprise move was received with a pinch of salt by a group of power brokers within ZANU-PF that wants Mnangagwa to succeed the incumbent, while opposing G40 members received it with joy.
G40 has vowed to thwart Mnangagwa’s presidential ambitions.
Chipanga is closely linked to G40.
The Women’s League was also set to hold its own national assembly meeting on Saturday, where members are expected not to make any fresh resolutions unless the party implements their demand for representation in the Presidium.
But by yesterday, indications were that the date for the national assembly meeting had not yet been agreed, although earlier indications were that the meeting would be held on Friday and Saturday.
Women’s League spokesperson, Thokozile Mathuthu, said the meeting would not be held on Saturday.
“There is no assembly meeting on Saturday. We are going to have it, but not this Saturday,” she said.
Mathuthu professed ignorance over a planned deal to maintain last year’s resolution on representation in the Presidium.
“Where did they make that agreement? I don’t know about it,” she said.
The women’s quota clause was struck off the ZANU-PF constitution in 2014 as a measure to deal with former vice president, Joice Mujuru.
But sources insisted yesterday that the women had indeed agreed to press for the same resolutions they placed before the December 2015 conference.
“The women don’t want to make fresh resolutions for this year’s conference because their previous resolutions have not been implemented,” said a member of the Women’s League who declined to be named.
Eunice Sandi-Moyo, the deputy Women’s League boss; Hurungwe East legislator and the league’s national secretary for finance, Sarah Mahoka; Senate president, Edna Madzongwe; and Gweru businesswoman, Simeli Dube, a members of the organ, are believed to be among those pushing for the idea. 
The Financial Gazette understands that there are a few of Mnangagwa’s backers in the league who are not comfortable with the Women’s League position. 
These include secretary for security, Shuvai Mahofa, deputy speaker of the National Assembly, Marble Chinomona and Mashonaland West provincial Women’s League chairperson, Angeline Muchemenye.
Sandi-Moyo — who presented the league’s resolutions at Victoria Falls — has already been tasked to inform President Mugabe on the Women’s League position once the national assembly meeting is held.
A source suggested Mnangagwa’s allies will not have any chance to influence the Women’s League.
“While they might be against the idea which seems to be giving more pressure on their preferred faction, they are likely not to have any chance to raise their concerns. They have already fallen behind. Everything will, however, depend on the President, who has the final say,” added the source.
The ZANU-PF ship has been rocked by factional tides that have failed to subside after the sacking of Mujuru in 2014.
The former vice president was accused of leading a faction that was allegedly plotting to unconstitutionally remove President Mugabe from power.
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Zambia mulls tit for tat

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Minister of Industry and Trade Mike Bimha

ZAMBIAN exporters are piling up pressure on their government to come up with retaliatory measures to block imports from Zimbabwe, in what could be a big blow to Harare, which counts Zambia among its biggest export destinations.

Zambia is one of the biggest export destinations for locally manufactured products, with 31,9 percent of Zimbabwean exports destined for Lusaka, according to the Confederation of Zimbabwe Industries’ 2015 Manufacturing Sector Survey.
The retaliatory move being proposed in Lusaka comes three months after Zimbabwe imposed a blanket ban on the importation of 42 product lines that are also manufactured by local companies. 
The ban was effected to protect struggling domestic producers.
Statutory Instruments (SI) 64 of 2016 imposed the controversial bans that have also been condemned by informal traders in Zimbabwe.
Last week, the Zambia National Farmers Union (ZNFU) reported on its website that Zambia was toying around with the idea of restricting importation of key products from Zimbabwe in response to the imports ban.
“The Ministry of Commerce Trade and Industry convened a stakeholders meeting on Thursday, 25th August 2016, to consult on possible options for government to counter the banning of Zambian exports into Zimbabwe,” said the ZNFU. 
“The meeting was as a result of the different measures implemented by the Zimbabwean authorities to ban Zambian exports into their country. Some of the exports from Zambia that are banned in Zimbabwe include soya cake, and other manufactured products.”  
“Going forward, government of the Republic of Zambia will implement measures to retaliate against the banning of Zambian exports by Zimbabwe,” the ZNFU reported.
Zambia Association of Manufacturers executive director, Maybin Nsupila, told the Financial Gazette this week that after Zimbabwe’s moves, their country might have no option but to retaliate.
“Zimbabwe’s actions have led to several manufacturers losing millions of (United States) dollars in lost business opportunities. Our association has been trying to get this issue addressed, but we have leant, however, that the authorities in Zimbabwe have shown no interest or commitment to stopping their actions which are against the spirit of regional integration,” Nsupila said.
With Zimbabwe now heavily dependent on maize imports from Zambia, a ban by the Zambians would adversely affect Zimbabwe’s food security.
“Clearly for us in the association the way out, the last option, if a trading partner is not acting in accordance with provisions of regional trade treaties, the only option is to retaliate,” Nsupila added.
Other business stakeholders in Zambia said the prevailing sentiments in the country were that government should retaliate and ban Zimbabwe’s exports into the country, a reaction that may result in the isolation of Zimbabwe.
SI 64 of 2016 has already sparked the ire of South African manufacturers who supply about 70 percent of the good imported into Zimbabwe.
The South African government has asked Zimbabwe to reduce tariffs on 112 products South Africa ships across the Limpopo River into Zimbabwe.
Harare’s SI has seen Zimbabwe being accused of violating a number of regional trade agreements, which makes free trade possible in the region.
Among the violated trade protocols is the Southern African Development Community Protocol on Trade, which allows free trade within the regional bloc.
Zimbabwe is also signatory to the Common Markets for Eastern and Southern Africa trade protocols, the Cotonou Agreement between the European Union and African Caribbean Pacific countries and the World Trade Organisation. 
The trade protocols eliminate import duties and all other restrictions in internationally traded goods.
The Financial Gazette can report that in Zambia, exporters have been enraged.
If their proposals are implemented by government, there could be a backlash against Zimbabwean products destined for that country.
Zimbabwe implemented the trade restrictions, arguing that it was necessary to support the development of its local industries, which have endured close to two decades of economic turbulences.
According to a press statement issued by Zimbabwean Minister of Industry and Commerce Mike Bimha in June, the aim of SI 64 was not to ban the importation of the goods in question, but rather to regulate them. 
“Further, the main purpose of SI 64 is to promote the revival of our local industries and the support so provided to the relevant local producers is not to be open-ended but time-bound and sector-specific,” said the statement.
The local industry is supposed to use the protection from imports to “retool and bring in new technology and address production inefficiencies”.
Economist John Robertson said the country relied heavily on imports that it had banned and could not afford a unilateral ban on imports.
“The real problem is that we still need most of the imports being banned because the country has reduced our ability to make most of the products now being banned, and the ones we can make are usually of insufficient quantity and at too high a price, so we still need to import some of them. Prohibiting those imports will cause scarcities, reduced sales and reduced company profits and government will therefore lose revenue from VAT and company profits taxes and many Zimbabweans will lose their jobs, so pay as you earn tax revenue will go down too,” Robertson said.
Under the SI, government banned the importation of products such as cosmetics, milk products, canned beans, vegetables and fruits, potato crisps, cereals, bottled water, among others.
“Zimbabwe is causing its own isolation from the rest of the region through these measures and through others as well. The country is now even a hindrance to traffic in transit through Zimbabwe to other countries. Dozens of police road blocks and dozens of permits and licences have caused a lot of the traffic to sideline Zimbabwe by taking routes through Botswana at Kazungula. A bridge is under construction there and it will be finished by early 2017. Then traffic between South Africa, Zambia, the Congo and Malawi will bypass Zimbabwe.
“Zimbabwe deserves the aggressive treatment it is receiving from the region right now. To deserve better treatment, we have to deserve it by sticking to agreements, attracting investors and repairing years of economic damage,” Robertson added.
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Sugar industry heads for crisis

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Lake, Mutirikwi, receding to dangerously low levels.

ZIMBABWE’S sugar industry is heading for a major crisis as water at the country’s largest inland lake, Mutirikwi, recedes to dangerously low levels.

The lake could be de-commissioned around mid November.
Statistics availed by the Zimbabwe National Water Authority (ZIMWA) paint a grim picture.
As of Sunday, the lake held only 79 980 mega litres of water out of its total capacity of 1 378 082 mega litres.
This represents a frightening 87,4 percent drop in water levels, which means the lake is now left with less that 12,96 percent of its water capacity.
According to management at ZINWA’s Runde Catchment Area, the rate of water loss, now between 0,07 and 0,10 per day, is expected to rise significantly as the country enters the peak dry summer season (October and November), which is the hottest period in Zimbabwe.
The consequences of the country’s principal inland, man-made reservoir drying up could spell doom for sugar cane farmers downstream at Chiredzi’s sugar estates.
Water demand in the Lowveld peaks between the hot four months that precede the rain season, which now starts very late in December.
Ever since the construction of Lake Mutirikwi was completed in 1960, the 56-year-old dam has only been decommissioned once, during the devastating drought of 1992. 
The lake’s waters retreated to just 0,3percent at the time.
The lake was also nearly decommissioned in November 2013 when water levels dropped to four percent, but was saved by timely rains.
Chiredzi cane famers at Tongaat Hullet’s Triangle and Hippo Valley Estates and thousands other individuals depending on Lake Mutirikwi’s water are already feeling the pitch.
So ominous has the situation become that ZINWA — the custodian of national water resources — has been forced to monitor the water levels around the clock.
Zimbabweans consume around 400 000 tonnes of sugar every year and production of the commodity could be drastically cut due to poor quality of the sugarcane crop, owing to poor water supplies.
Any shortage of sugar can easily impact on downstream industries.
It might also force government to lift its ban on sugar imports to augment local supplies.
ZINWA’s Runde Catchment Area operations manager, Jonathan Juma, said they have already been forced to introduce a stringent irrigation water rationing regime due to the dire situation.
ZINWA is currently releasing just 10,1 cubic metres per second downstream, compared to the 32 cubic metres per second it releases when water levels in the lake are normal.
“The sugar industry is actually being affected as we speak. The farmers have reduced their raw water consumption to 43 percent of what they normally require. All the other small dams are nearly empty,” he said.
Bangala and Muzhwi dams that supplement Mutirikwi, have already been decommissioned after they ran out of water in March, while Manjirenji dam, off Chiredzi River, is virtually empty.
Manjirenji irrigates more than 4 000 hectares of sugarcane plantations in Mkwasine, which is dominated by individual farmers who sell their crop to Tongaat Hullet after harvesting.
“If it continues at this rate, there is a very big possibility that we can come to a point where we can no longer release water to the Loweveld for irrigation,” Juma said.
Standing on the dam wall, one can clearly see the substantial depletion of the water. 
Outcrops that were once completely covered by the massive lake are now cleary visible.
In addition to irrigating sugarcane plantations, the City of Masvingo also solely relies on the lake for its domestic water, while several other small scale irrigation schemes littered along Mutirikwi River downstream also face collapse.
Juma allayed fears that Masvingo City and Chiredzi town would face serious water shortages. 
He said if the worst happens, they would stop all irrigation activities and redirect all the remaining water to domestic use. We will be forced to stop releasing water for irrigation just to accommodate the people downstream and for domestic use in Triangle and Chiredzi. 
“If we do this, the remaining water can service these areas until March next year when we expect the situation to have improved,” he said.
Zimbabwe Sugarcane Farmers Development Association, Admore Veterai, said farmers are already using improvised water saving mechanisms working hand in hand with ZINWA as they battle to stay on the field.
“It’s a catch 22 situation, but we are fighting to beat it. Given the climate change phenomenon, it’s not surprising that we are experiencing this shortage of water and it’s not going to improve unless we think up strategies to contain the situation. 
“As farmers, we are already using water conservation techniques because we know that if rains do not come early, we could be in serious trouble. 
“For example, we are now irrigating at 70 percent and jumping some lines so that water only goes where it is required,” said Veterai, a former police chief.
Meanwhile, the completion of Tokwe-Mukorsi dam, with capacity to irrigate at least 25 000 hectares of farmland and expected to replace Mutirikwi as Zimbabwe’s largest inland lake, has for long been touted as the single biggest solution to water woes in the Loweveld.
Government has, however, been struggling to complete the dam, currently at 95 percent complete and requiring US$20 million, owing to shortage of funds. Construction work at the site has since stalled.
Besides Tokwe-Mukorsi, whose construction was first mooted in 1955, but only started in 1998, there are several other dams which are still just pipe dreams. 
Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

ZANU-PF bigwigs fall sick

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ZANU-PF national spokesman, Simon Khaya Moyo

ZANU-PF national spokesman, Simon Khaya Moyo

….Simon Khaya-Moyo seeks treatment in SA 
THE intense infighting in the ruling party is putting unbearable strain on ZANU-PF bigwigs’ health as it emerged this week that Simon Khaya-Moyo, the Minister of Policy Coordination and Promotion of Socio-Economic Ventures in the President’s Office, is among top chefs that have been in and out of hospital, fighting hypertension-related illnesses.

Khaya-Moyo, the ruling party’s secretary for information and publicity, has not been reporting for duty for the past three months and has also been conspicuous by his absence at many government and ZANU-PF functions.
Most notably, the 71-year-old politician has been unable to attend the last four Politburo meetings, resulting in Ignatius Chombo, the party’s secretary for administration, assuming some of his responsibilities, including making important public announcements.
He has also missed important national events such as the Heroes and Defence Forces days, amid reports that he is spending much of his time in a South African hospital, although he often flies back home.
Speculation is rife that Khaya-Moyo could have succumbed to the energy-supping hard politics playing out in ZANU-PF.
His political fortunes took a knock in 2014 after he was accused of being part of a faction led by Joice Mujuru, who was President Robert Mugabe’s deputy back then.
At the time, he was being linked to a vice presidential slot that had been left vacant following the death of John Nkomo in January 2013.
Khaya-Moyo only survived the chop after abandoning Mujuru and her allies, having realised that the odds were heavily stacked against the former vice president, who was being accused of plotting to unseat her boss unconstitutionally.
Despite switching allegiances ahead of the 2014 congress held in the capital city, that could not prevent his demotion from being the party’s national chairman to the position of secretary for information and publicity – seven ranks down the pecking order.
In government, he was moved to the obscure Ministry of Policy Coordination and Promotion of Socio-Economic Ventures in the President’s Office which, despite being a mouthful, duplicates the functions of other ministries.
That in itself creates friction between the ministry and other government organs that should operate autonomously.
Efforts to get a comment from Khaya-Moyo were fruitless.
Presidential spokesman, George Charamba, declined to shed light on the minister’s whereabouts, saying he would not publicly discuss someone’s health issues.
“I am not competent to talk about someone’s personal health issue,” said Charamba.
Close family sources, however, told the Financial Gazette that the former ZANU-PF national chairman has been making frequent flights to South Africa for treatment.
A family source said: “He spent about three weeks in a South African hospital last month and came back at the end of the month. He flew back to South Africa last week as his condition deteriorated. As of now, I am not sure if he is back in the country. He is battling hypertension”.
Meanwhile, former justice, legal and parliamentary affairs deputy minister, Fortune Chasi, and former home affairs deputy minister, Ziyambi Ziyambi, have spent the last six days each at the same private hospital in Harare, suffering from hypertension.
The two legislators were admitted separately on Friday last week.
Fortune-Chasi-1

Fortune Chasi

The Financial Gazette managed to talk to Chasi after paying him a visit on Tuesday evening, but could not get access to Ziyambi, who was admitted in the adjoining room.
“I have been here since Friday. It’s hypertension, but I am recovering now,” Chasi said.
Asked about Ziyambi, he said: “He is (in the room) next door, but we haven’t seen each other though.”
Chasi was also fingered as a member of the Mujuru cabal, and received brickbats from militant ZANU-PF youths who wanted him ousted from the party after he was accused of attempting to block First Lady, Grace Mugabe from expanding her projects in Mazowe South.
He miraculously survived the purging spree that came after the 2014 congress.
Ziyambi too has not had it easy in ZANU-PF.
He lost his position as Mashonaland West provincial chairman and his ministerial job in October last year after being accused of fanning factionalism in the party.
He was linked to Team Lacoste, a faction rooting for Vice President Emmerson Mnangagwa to take over as President when the incumbent exits the political arena.
After playing an instrumental role in the demise of maverick former ZANU-PF Mashonaland West provincial chairman, Temba Mliswa, ahead of the December 2014 congress, Ziyambi assumed the chair in the interim.
The Zvimba East legislator reigned in the province for nine months before he was booted out of the position in September last year after he was handed a two-year suspension from ZANU-PF.
The following month, he was fired from government, although he retained his seat in Parliament.
Several ZANU-PF officials have had their health impacted on negatively by the political twists and turns in the ruling party.
After being suspended from the party, former Harare provincial chairman, Amos Midzi, was founded dead inside his vehicle at his farm, in what appeared to have been an act of suicide.
Another victim of the purges that targeted Mujuru’s followers, Acquillina Katsande, died at the age of 55, with family members disclosing that she had been devastated by the events that changed her political fortunes in ZANU-PF for the worst. A ZANU-PF proportional representative MP, Joan Tsogorani, also died last year after a hypertension attack following a public fall out with other party functionaries.  
Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

What are people watching locally? – here are 8 DStv alternatives in Zimbabwe

Airline bans passengers from charging Samsung Galaxy Note 7s, recall and replacement process could prove tricky

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By Batsirai Chikadaya

Australian international airline Qantas has ordered owners of the Samsung’s Galaxy Note 7 against charging their phones aboard the plane. This follows an incident in Perth, Australia, where a burnt Samsung Galaxy Note 7 caused $1,800 worth of damage in a hotel room after it scorched the bed and carpet. image credit: reddit:crushradar According to […]

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Airline bans passengers from charging Samsung Galaxy Note 7s, recall and replacement process could prove tricky

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