Photographer - Consultant (Zimbabwe)

Design Manager - Consultant (Zimbabwe)

Content Manager - Consultant (Zimbabwe)

Marketing Manager - Consultant (Zimbabwe)

Graduate Trainee Programme 2024

Human Resource Officer (Industrial Relations)

Nurse/ Phlebotomist

Temporary Full-Time Lecturer: Department of Chemical Sciences

General Hand x2

Civil Engineer: Contract (Hwange)

Attachee: Sales and Marketing (Harare)

Planning Officer (Bulawayo)

Semi-Skilled Cook (Chipinge)

IT Officer

Human Resources Officer

Stores Assistant

Project Coordinator

Graduate Trainee: Agronomy (Chisumbanje)

Estimator – Auto Body Centre Harare

Apprenticeship Trainee- Millwright

Sales Agents x50

Library Technical Assistant

Assistant Binder

Broadcast Technician

Research, Innovation and Industry Linkage Officer (RIILO)

Safety, Health and Environmental (SHE) Officer

Procurement Officer

Intellectual Property Management Officer

Research Officers x2

Business Development Officers x2

Innovation Lead (Engineering)

Innovation Lead (Arts & Creative Industries)

Innovation Manager

Director General (Harare)

The African Development Bank (AfDB) has granted Zimbabwe $5.32 million to improve the governance and accountability of State-owned entities. The grant is part of the Institutional Support for State Enterprises Reform (Isser) project, which aims to strengthen the governance and management of public entities, reduce fiscal risks, and facilitate economic recovery. The project began in August 2022 and will run until September 2026. AfDB said, in its procurement notice released last Thursday:
<blockquote>
The government of Zimbabwe has received a grant, an amount of UA4 million (US$5,3 million) from the African Development Fund, to finance the Institutional Support for State Enterprise Reform project.
This project aims to strengthen good governance and enhancing accountability through supporting interventions regarding public administration, improved service delivery and financial management (PFM). The project will enhance Zimbabwe’s capacity to effectively translate into action and implement the existing corporate governance and PFM provisions.
</blockquote>
The grant comes from AfDB’s African Development Fund, which supports economic and social development in 38 least-developed African countries through concessional funding for projects and technical assistance, <a href="https://www.newsday.co.zw/business/article/200021468/zim-govt-receives-afdbs-us53m-grant">NewsDay</a> reported. The funds will be used to enhance accountability, improve public administration, service delivery, and financial management. The project will also support the implementation of the hybrid ownership model for State enterprises and parastatals.
Zimbabwe requires State enterprise reforms as over 100 State-owned entities are technically insolvent. Weak corporate governance, corruption, poor financial performance, and ineffective monitoring and evaluation have limited their ability to deliver services. The challenges facing these entities include outdated technology, inadequate working capital, and huge debt overhang. The AfDB grant aims to address these issues and support the recapitalisation of State entities.
The government of Zimbabwe is also considering the partial or full privatisation of State-owned enterprises as part of the reform process. The AfDB grant will contribute to strengthening governance and management practices, reducing fiscal risks, and promoting economic recovery in Zimbabwe.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Zimbabwe Receives US$5.32 Million Grant From AfDB For SOE Recapitalisation

Zimbabwe experienced a sharp increase in food inflation in December, with prices of basic commodities soaring before the festive season. The cost of living has become increasingly challenging for Zimbabweans, <a href="https://www.newsday.co.zw/local-news/article/200021478/food-inflation-hits-consumers">NewsDay</a> reported citing a report by the Zimbabwe National Statistics Agency (ZimStat).
ZimStat’s latest report reveals that the month-on-month inflation rate for December rose to 4.7%, a 0.2 percentage point increase from November’s rate of 4.5%. The year-on-year inflation rate also climbed to 26.5% in December, up from 21.6% the previous month.
The report states that the minimum needs basket cost ZWL$106,696.52 (about US$18 per official exchange rate) per person in December, a substantial 21.6% increase compared to November’s figure of ZWL$87,756.38. This represents a significant burden for the average Zimbabwean trying to afford basic necessities.
The Total Consumption Poverty Line, which includes essential items beyond food, also witnessed a significant jump, reaching ZWL$140,252.59 (US$23) in December, compared to ZWL$115,090 in November.
ZimStat highlighted that non-alcoholic beverages had the highest contribution to the month-on-month change index, with a 2.7% increase, followed by housing, water, electricity, gas, and other fuels, which contributed 1.6% to the inflation rate.
The volatility of food prices has been a major concern, with staples such as bread, cooking oil, and sugar becoming increasingly expensive. The depreciation of the local currency against foreign currencies has further exacerbated the situation, making it even more difficult for Zimbabweans to afford basic necessities.
As Zimbabwe enters 2024, there are concerns that the economic challenges could intensify, posing a greater burden on the population. The government and relevant authorities need to address the root causes of inflation and take measures to stabilize prices and improve the affordability of essential goods for the people.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Zimbabwe Experienced A Sharp Increase In Food Inflation In December

Botswana’s Ministry of Finance has issued a pre-release statement regarding the Pula exchange rate for the year 2024. To ensure a stable and competitive real effective exchange rate of the Pula, the Ministry of Finance, in collaboration with the Bank of Botswana, regularly reviews the Pula basket of currencies and their weights. This is done to maintain stability in the country’s currency and to ensure it remains competitive in the global market.
The Pula basket of currencies currently consists of the South African rand and the International Monetary Fund’s Special Drawing Rights (SDR). The SDR is a composite currency made up of the US dollar, Japanese yen, Chinese renminbi, euro, and British pound.
In a statement seen by Pindula News, the Ministry of Finance said the Pula remains strong compared to the South African rand, as it is weighted at 45%. Additionally, the Pula is gaining power on a global scale, as it is weighted at 55% against a basket of currencies known as the Special Drawing Rights (SDR), which includes the US dollar, Japanese yen, Chinese renminbi, euro, and British pound. Read the statement:
<blockquote>
The Ministry of Finance, in conjunction with Bank of Botswana, regularly reviews the Pula basket of currencies and their weigh., with a view to maintaining a stable and competitive real effective exchange rate of the Pula. The Pula basket of currencies comprises of the South African rand and the International Monetary Fund, Special Drawing Rights (SDR) — consisting of the US Dollar, Japanese Yen, Chinese Renminbi, Euro, and British Pound.
Following the latest review of the Pula basket of currencies undertaken in December 2023, His Excellency the President approved maintenance of the Pula basket weigh at 45 percent South African rand and 55 percent SDR, and also the downward rate of crawl of 1.51 percent per annum, during 2024, in view of the favourable inflation differentials in favour of Botswana.
</blockquote>
The exchange rate of the Pula, the currency of Botswana, is determined in accordance with Section 21 of the Bank of Botswana Act. According to this act, the President of Botswana, upon the recommendation of the Minister of Finance and after consultation with the Bank of Botswana, has the authority to determine the external value of the Pula.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Botswana Announces Pula Exchange Rate For The Year 2024

Employees at Prospect Lithium Zimbabwe (PLZ) in Goromonzi are facing salary delays due to the freezing of the company’s bank accounts by the Reserve Bank of Zimbabwe (RBZ). The Chinese-run lithium mining company has been unable to remunerate its workers for their services in December. The company has promised that salaries may be paid between December 27th and 29th, but there is uncertainty regarding these dates.
Previously, employees received their salaries between the 20th and 25th of each month, along with hampers worth US$50 every three months, <a href="https://www.newzimbabwe.com/rbz-freezes-lithium-giants-bank-accounts-employees-to-go-for-the-festivities-without-salaries/">NewZimbabwe</a> reported. However, the freezing of the accounts has also affected the hampers, leaving employees without food for their families during the festive season. This has caused discontent among the workers, who are now unsure if they will be able to celebrate the holidays properly.
PLZ spokesperson, Rugare Dobbie, confirmed that there are issues but did not provide further details. The situation is even more challenging for the employees as over 100 of them have been informed that their contracts will not be renewed in 2024 due to the company’s financial losses. The decline in lithium prices on the global market has resulted in the company operating at a loss, forcing it to reduce the labour force by approximately 164 employees from January 2024.
The fear of contract non-renewal has created a sense of vulnerability among the workers, making them hesitant to express their discontent or protest against the delayed salaries. They are concerned that any form of protest may further jeopardize their chances of contract renewal.
PLZ, a subsidiary of Prospect Resources, operates the Arcadia Mine, which holds one of the world’s largest hard-rock lithium reserves. The mine was acquired by Chinese company Zhejiang Huayou Cobalt Co Ltd for US$422 million in 2022, with an additional investment of US$300 million to build a lithium concentrate plant. The plant began exporting concentrates in April 2023. During the construction phase, PLZ employed around 1000 workers, with plans to hire more as production reaches full scale.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

RBZ Freezes Prospect Lithium Zimbabwe (PLZ)'s Bank Accounts

The economy of Zimbabwe contracted in the second quarter of the year. Gross domestic product (GDP) at market prices nearly halved to US$3.28 billion from the previous period, mainly due to the depreciation of the local currency. In the first quarter, GDP at market prices was ZWL$6.65 trillion or US$7.15 billion, <a href="https://www.newsday.co.zw/business/article/200021191/bloodbath-in-q2-as-zimdollar-depreciates">NewsDay</a> reported citing the latest data by ZimStat. However, GDP rebounded in the third quarter to ZWL$41.35 trillion or US$7.56 billion, following measures implemented by fiscal and monetary authorities to halt the currency depreciation.
During the presentation of the third-quarter GDP estimates, Tapiwa Gumbo, the national accounts and analysis manager at ZimStat, mentioned that the International Monetary Fund (IMF) had inspected their methodology and agreed with the findings. Gumbo said:
<blockquote>
People sometimes have what they think is normal and should be done, which probably ideally is not what is provided in the manual. So, we try to follow the manual so that our statistics are accurate, are comparable with other countries. So, this is what we try to do and publish because we were presenting a national GDP.  
So, what we do here is publish the quarterly annual GDP numbers. So, they (IMF) are checking on our methodology, and data, are we following the systems of national accounts? They scrutinised, provided a second eye to the statistics and reviewed the methodology. We showed them the system, the national accounts database system that we normally use and we agreed.
</blockquote>
However, just two days earlier, the IMF had expressed concern over the competencies and methodology used by ZimStat in determining key economic metrics.
Concerns have been raised by the British-based economic researcher, World Economics, and the World Bank regarding the government’s data collection methods to determine key economic metrics.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

ZIMSTAT Says The Economy Of Zimbabwe Contracted In 2nd Quarter

Stanbic Bank has donated US$20 000 to the Cancer Association of Zimbabwe (CAZ) towards the purchasing of chemotherapy drugs for its members.
This year is the 10th consecutive year in which the Standard Bank Group subsidiary has assisted with the acquisition of drugs for CAZ as the institution demonstrates that it values not only financial success but the well-being of the communities it serves.
Stanbic Bank Manager, Brand and Advertising, Tariro Memo said the leading financial services institution is privileged to support the CAZ in its relentless fight against cancer. Said Memo:
<blockquote>
Our commitment to this cause goes beyond mere philanthropy; it is a testament to our dedication to the health and welfare of the people of Zimbabwe.
This contribution is a tangible expression of our solidarity with those battling cancer and a reaffirmation of our belief in the importance of healthcare initiatives.
</blockquote>
She said CAZ has been an unwavering force in the face of this formidable challenge, and Stanbic Bank is proud to stand by them as they make a difference in the lives of countless individuals.
Memo emphasized that Stanbic Bank’s support extended beyond financial donations adding that it reflected a shared vision of a healthier, more resilient society hence the 10 years of partnership, collaboration and shared determination with CAZ. Said Memo:
<blockquote>
CAZ’s work is a beacon of hope, and Stanbic is honoured to contribute to its cause. As we hand over these chemotherapy drugs, let it symbolize not just a material donation but a collective commitment to combating and fostering future wellness.
</blockquote>
She noted that Zimbabwean Cancer patients continue to face several challenges such as the breakdown of machinery at public cancer treatment centres, the high cost of medication and cancer services, centralization of cancer services which results in some patients having to travel long distances to visit the treatment centres.
CAZ general manager, Junior Mavu, said the 10-year-long partnership with Stanbic Bank served as a source of inspiration for the association to keep going despite the prevailing harsh operating environment.
Mavu said the donation plays a pivotal role in sustaining the lives of over 150 cancer patients who have undergone up to eight sessions of cancer treatment each with its course of drugs. Said Mavu:
<blockquote>
The Chemo Fund by Stanbic Bank has assisted 151 cancer patients made up of 127 women and 24 men to purchase drugs before and after chemotherapy.
We are proud to be associated with Stanbic Bank and are pleased to have this decade-long journey which has also seen the institution refurbish our Home for Cancer patients at Sally Mugabe Hospital – Tariro Hostel.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Stanbic Bank Donates US$20 000 To Cancer Association Of Zimbabwe

The government of Zimbabwe has once again issued a warning to businesses regarding price hikes during the festive season. The Ministry of Industry and Commerce has assured the public that retailers have enough stock to meet the demands of the entire country, <a href="https://www.newsday.co.zw/local-news/article/200021103/govt-in-umpteenth-warning-on-price-hikes">NewsDay</a> reported.
In a statement, Industry and Commerce Minister Sithembiso Nyoni emphasised the need to maintain economic stability to promote consumer welfare. She said:
<blockquote>
We have witnessed and enjoyed price stability for a very long time now, ever since the Treasury and the Reserve Bank of Zimbabwe instituted a tight monetary control regime and this must be maintained to promote consumer welfare.
Let me assure the nation that industry has enough stocks of basic commodities and that business will immediately work on modalities to ensure that there will not be any sharp price increases.
</blockquote>
To ensure that there are no shortages or sharp price increases, the government held a meeting with business member organizations to discuss pricing and the market supply situation of basic commodities ahead of the festive season. As a result of this meeting, an agreement was reached between the government and businesses that fair trading practices would be upheld, and both profiteering and the creation of artificial shortages would be avoided.

<ul>
<li><a href="https://www.pindula.co.zw/2023/12/16/prices-of-commodities-in-zimbabwe-have-surged-during-the-festive-season-survey/">Prices Of Commodities In Zimbabwe Have Surged During The Festive Season – Survey</a></li>
</ul>
However, despite these efforts, there have been recent price increases in some basic commodities. For instance, laundry soap prices increased by 16%, cooking oil by 13%, bread by 12%, and mealie-meal by 9%. The government had previously extended the use of the United States dollar as legal tender until 2030, which helped to maintain relatively constant wholesale and retail prices.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Zimbabwean Govt Has Once Again Warned Businesses Over Price Hikes During The Festive Season

Prices of commodities in Zimbabwe have surged during the festive season, adding to the burden faced by citizens already struggling to make ends meet. Basic goods such as mealie-meal, sugar, cooking oil, rice, and soap have experienced significant price hikes, even when sold in United States dollars. Retailers have increased the cost of a 2-litre bottle of cooking oil from US$3 to US$4.50, while a 2kg pack of rice now costs US$3.50, up from US$2 according to a snap survey conducted by <a href="https://www.newsday.co.zw/local-news/article/200020952/prices-go-haywire-during-festive-season">NewsDay.</a> Other items such as Mazoe Crush fruit drink and washing soap have also seen price increases. In addition to this, some schools have announced plans to raise fees by up to 100% in the coming year.
The government has stated that it will not impose price controls but instead engage in dialogue with businesses to understand the reasons behind these price hikes. Industry and Commerce Minister Sithembiso Nyoni clarified that the government’s role is not to control prices but to investigate the factors leading to these increases. She told NewsDay:
<blockquote>
Government does not tame prices.
What we do is we discuss with the business and try to understand why they are hiking prices.
So, I will set up an office to look into that and then we will take the necessary dialogue steps to look into that.
</blockquote>
Retailers, however, have warned that further price hikes may be on the horizon.
Price increases during the festive season are not unique to Zimbabwe. In many countries, including Zimbabwe, shop owners often take advantage of the increased shopping activity during this time to maximize their profits. The demand for goods and services tends to rise as people purchase items to celebrate and spend time with their families and friends.
However, what makes the current situation in Zimbabwe particularly challenging is the fact that these price increases are happening at a time when the majority of the population is already facing financial difficulties. The struggling economy, stagnant wages, and high unemployment rates have created a situation where many people are finding it increasingly difficult to make ends meet. The additional burden of inflated prices for essential commodities further exacerbates their financial strain.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Prices Of Commodities In Zimbabwe Have Surged During The Festive Season - Survey

Statement by the Minister of Industry and Commerce Sithembiso Nyoni after her meeting with business member organisations (BMOs) to discuss basic commodities prices and the market supply situation during the upcoming festive season: 15 December 2023.
<blockquote>
1. I have just concluded a meeting with the relevant Business Member Organizations (BMOs) to discuss the prices and market supply situation of basic commodities, ahead of the upcoming festive season.
2. As we all know, traditionally the holiday season is a period with hyper activities where businesses world over stock up with various goods, in anticipation of increased spending as consumers buy various gifts for their loved ones.
3. In attendance at the meeting were:
<ul>
<li>The Grain Millers Association of Zimbabwe;</li>
<li>The National Bakers Association;</li>
<li>The Oil Expressors Association of Zimbabwe;</li>
<li>The Zimbabwe Retailers Association;</li>
<li>The Confederation of Zimbabwe Retailers;</li>
<li>Zimbabwe Sugar Sales; and</li>
<li>The Zimbabwe Sugar Association.</li>
</ul>
4. As a Ministry, we had observed an emerging trend, of increases in the prices of basic commodities during this week, wherein laundry soap has gone up 16%; cooking oil by 13%; bread by 12%; and mealie-meal by 9%. It was pleasing to note that the price of sugar has remained constant.
5. As the ministry responsible for commerce and Industry, we have the onus to get to the bottom of this and nip any negative developments in the bud. We have witnessed and enjoyed price stability for a very long time now, ever since the Treasury and the Reserve Bank of Zimbabwe instituted a tight Monetary Control Regime and this must be maintained, to promote consumer welfare.
6. By the same token, we also witnessed and enjoyed a normal supply of basic commodities on the market, with no shortages and crises, as previously happened in yesteryear. We are grateful to the business players that have joined hands with the ministry to ensure that we do not allow any price increases, particularly at this point, when families will be celebrating Christmas and the New Year, indeed a time when basic commodities should be not be found wanting on the market!
7. We also agreed that the business community should trade fairly and desist from profiteering and from creating artificial shortages.
8. I am very happy to report that I had a very fruitful dialogue with the BMOs’, to whom I am grateful for their quick response. Ever since I took office as Minister of Industry and Commerce, I have enjoyed a very good and progressive working relationship with the respective BMOs in both the industry and commerce sectors.
9. Let me assure the nation that industry has enough stocks of basic commodities and that business will immediately work on modalities to ensure that there will not be any sharp price increases.
Let me take this opportunity to wish the nation of Zimbabwe a Merry Christmas and a Prosperous 2024.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Industry And Commerce Minister Meets Business Member Organisations

Some shops have hiked prices on basic grocery items, making the festive season increasingly gloomy for most citizens already struggling to make ends meet.
According to a survey conducted by <a href="https://www.newsday.co.zw/local-news/article/200020952/prices-go-haywire-during-festive-season">NewsDay</a>, shops have increased the prices of mealie-meal, sugar, cooking oil, rice and sugar, among others, even in United States dollars.
In some retail shops, a 2-litre bottle of cooking oil, which was selling at US$3, now costs US$4.50, while the price of a 2kg pack of rice rose to US$3.50 from US$2.
The price of a 2-litre bottle of Mazoe Crush rose to US$4,50 from $3, while a bar of washing soap now costs US$1.50 from US$1.
However, the Minister of Industry and Commerce Sithembiso Nyoni told NewsDay on Thursday that the Government will not impose price controls, but engage business over the price increases. She said:
<blockquote>
Government does not tame prices. What we do is we discuss with the business and try to understand why they are hiking prices.
So, I will set up an office to look into that and then we will take the necessary dialogue steps to look into that.
</blockquote>
Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu warned of further price hikes.
He blamed the price increases on proposals to increase taxes by Finance, Economic Development and Investment Promotion Minister Mthuli Ncube in the 2024 budget. Said Mutashu:
<blockquote>
There is a huge expectation of more price hikes before year-end and this has been triggered by the barrage of taxes on basic commodities contained in the 2024 budget.
The proposal to increase VAT [value-added tax] on basic commodities shocked the market because, since 1980, we have not had a hike on VAT on basic commodities.
The 1% wealth tax proposal has also resulted in property owners raising their rental fees.
So, business owners who rent property will increase the prices of the services and commodities.
</blockquote>
He said the daily power cuts have increased the cost of running business as businesses are forced to rely on generators as alternative power sources. Mutashu said:
<blockquote>
Big businesses are running on generators as a power source and it is not sustainable. It is not cost-effective, so all these cost drivers have piled pressure.
If there is no reversal of VAT on basic commodities and VAT on school fees, it is going to be a disaster because already schools have increased fees to cushion themselves from the VAT proposal.
</blockquote>
Some schools have reportedly announced intentions to increase fees by up to 100% next term.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Shops Hike Prices Ahead Of Christmas, Blame Mthuli Ncube's Tax Proposals

The Zimbabwe National Chamber of Commerce (ZNCC) has implored the Government to ensure that there is policy consistency and the creation of an environment that is conducive to business.
Speaking to <a href="https://businesstimes.co.zw/zncc-calls-for-policy-consistency/">Business Times</a> on the sidelines of the ZNCC business conference held in Harare last week, ZNCC president, Mike Kamungeremu, said:
<blockquote>
They (Government) must simply create an enabling environment. In terms of service provision and infrastructure development, we want good roads, among many others. Those are the things that businesses want.
They want an enabling environment in which they will be able to do their business without fear and then they can sell their products and make money and pay taxes to the government at the end of the day.
</blockquote>
He said the majority of businesses were also having trouble obtaining bank loans over the uncertainty of the tenure of the multicurrency system. Said Kamungeremu:
<blockquote>
There was uncertainty about that. The (tenure) of the multicurrency was extended from 2025 to 2030 and this is a one key policy because you will find all banks not lending beyond 2025.
It was very difficult for businesses to get capital. Now that the extension has been granted, we have not received feedback as yet but we expect banks to start lending until that time.
</blockquote>
Kamungeremu also pleaded with the Government to refrain from competing with businesses. He said:
<blockquote>
Critically businesses want the government to be a regulator and they should play the role of regulator in everything that we are doing, not for them to also compete with business.
We gave an example of the insurance sector, where there are insurance companies that are making a lot of money from third-party insurance.
So if the government takes it away, it is more like they are being crowded out of the space so businesses feel that the government must not get in there.
</blockquote>
Presenting the 2024 National Budget on 30 November, Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube said that the Government plans to take over the running of third-party motor vehicle insurance with effect from April 2024.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZNCC Pleads For Policy Consistency

The Bankers Association of Zimbabwe (BAZ) has defended current bank charges, saying the fees were being increased by the Treasury’s Intermediated Money Transfer Tax (IMTT).
Local banks have been accused of fleecing depositors through astronomical bank fees coupled with meagre interest rates on deposits.
Even though almost every other industry in Zimbabwe is struggling due to a weak economy, banks have been thriving as a result of the new focus on non-funded income rather than the core business of lending more.
Banks have hiked withdrawal fees to about 3% of the amount being withdrawn from the 1% charged a few months ago.
Depositors are also being charged about 2.5% for withdrawals done on Automated Teller Machines.
The permanent secretary of the Ministry of Finance, Economic Development and Investment Promotion, George Guvamatanga, said that banks should slash their charges and desist from “robbing” depositors.
However, Fanuel Mutogo, the CEO of the Bankers Association of Zimbabwe, told <a href="https://businesstimes.co.zw/banks-fleece-depositors/">Business Times</a> that bank charges reflect IMTT. He said:
<blockquote>
We have competitive charges but the problem is that with this IMTT from the Treasury, the charges going higher and the blame is on banks. We are not responsible for IMTT.
</blockquote>
According to ZIMRA, IMTT is tax-chargeable on financial transactions which happen through transfers such as direct debits, online transfers, mobile money transfers, supplier payments and interbank transfers subject to specified exemptions.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Banks Blame Money Transfer Tax For "Exorbitant" Fees

Local banks are reportedly fleecing depositors through high bank fees and exorbitant withdrawal fees of about 3% of the amount being withdrawn from 1% charged a few months ago.
Depositors are also being charged about 2.5% for withdrawals done on Automated Teller Machines.
The government is concerned that this would discourage people from making bank deposits and has warned financial institutions against the practice.
<a href="https://businesstimes.co.zw/banks-fleece-depositors/">Business Times</a> quoted the permanent secretary in the Ministry of Finance, Economic Development and Investment Promotion, George Guvamatanga, as saying:
<blockquote>
Banks please, your charges [are exorbitant]. Someone commented that we no longer have banks in this country but we now have real estate companies masquerading as banks
Banks are collecting rent from customers every month.
[Banks now say], you have an account where you pay me a rental of U$25 every month and or US$20 every month.
When you withdraw US$100 000 for example, there is a 2% -3% commission, and other charges, you walk away from the bank with US$97 000 so the question is are we encouraging depositors to bank their money?
There is always an argument that there are different accounts, there is a deposit account, and savings account but look at ways of encouraging the depositors to have their money in those accounts which do not attract this US$25 or US$15.
</blockquote>
Guvamatanga demanded that banks slash their charges and desist from “robbing” depositors. He said:
<blockquote>
I think the other place where there is almost robbery is with your own Visa and Master cards, those foreign cards.
You deposit your money and you attract a commission for depositing your cash.
I pledge with you to sit down within the remaining two weeks of this year and when you come back in January 2024, whilst still in office so that when you come back your charges should encourage people to put their money into the bank.
Banks are the biggest problem as far as confidence is concerned because they are all focusing on this non-funded income instead of the core business that you lend and you get interest.
I was looking at the financial results [banks], and most are now at 60%/70% non-funded income.
I know they (banks) have restructured their businesses with a 70% non-funded income that’s not achievable anywhere in the world.
It shows that the cost of banking in this country is just too high. It’s something we have not spoken about. I hope banks will look at it and make adjustments.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Urges Banks To Review "Exorbitant" Fees

Stanbic Bank has been selected 2023 Bank of the Year in Zimbabwe by the world-renowned London-based magazine, The Banker.
The award for Stanbic Bank Zimbabwe also saw five other Standard Bank Group (SBG) country banks across Africa named as African leaders in the prestigious Banker magazine’s annual global awards held in London recently.
Stanbic Bank was named as the best bank in Zimbabwe and was one of those selected from a field of more than 400 global entrants to win honours in the prestigious awards. 
The other SBG operations that were named the best in their countries were: Standard Bank Angola; Standard Bank Lesotho; Standard Bank Namibia; Stanbic IBTC Nigeria; and Stanbic Bank Zambia. 
The Banker magazine is widely considered an “authoritative source of global financial analysis and data-driven intelligence.”
The Banker is renowned for having dedicated content pillars which share new banking trends as well as having expert editorial analysis, in-depth research and succinct summaries of key topics affecting the banking sector.
Stanbic Bank Chief Executive (CE), Solomon Nyanhongo, said The Banker noted that the institution weathered an increasingly challenging operating environment characterised by high inflation and shortage of foreign currency. Said Nyanhongo:
<blockquote>
The judges were impressed by the bank’s support for the all-important agricultural sector. With the foreign currency shortage set to threaten the viability of the tobacco selling season and with the support of its parent company, Standard Bank Group, Stanbic arranged offshore lines of credit worth USD385m which helped tobacco merchants fund the growing and purchasing of tobacco.
</blockquote>
He said the offshore lines of credit helped the farmers receive their sale proceeds in a timely fashion, ensuring that input costs were covered.
The tobacco-selling season commenced in March 2023 and before the auction floors had been opened, Stanbic Bank had pursued its strategic initiative of increasing its point of representation during the season for the convenience of tobacco farmers.
Nyanhongo said more than 33 000 new accounts were opened for farmers ahead of the season. Stanbic’s offshore lines of credit contributed to the improved quality and volumes of tobacco that were delivered at auction floors.
An aggregate of 296 million kgs of tobacco was produced in 2023 up from 212million that was delivered in the previous season. Said Nyanhongo:
<blockquote>
The award reflects not only the strength and depth of operations and skills but also the calibre of both our people and our clients in the jurisdictions in which we operate.
The award, therefore, is something that we can all be proud of, as we all played a part in securing it for Stanbic Bank.
</blockquote>
The award for Stanbic Bank comes hard on the heels of four other accolades won by the financial services institution last month.
Last month Stanbic Bank Zimbabwe scooped four prestigious awards – two at the Banks and Banking Survey sponsored by financial services institution, FCB and publishing company, Alpha Media Holdings, one at the Contact Centre Association of Zimbabwe (CCAZ) as well as one from ESG Network Zimbabwe.
The Standard Bank Group subsidiary won the Overall Best Performing Bank, Best Bank Customer Service, Winner in the Banking Sector – Service Excellence Awards and Outstanding Contribution to Health &amp; Education Support Award.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Stanbic Bank Named 2023 Bank Of The Year By The Banker

The Zimbabwean dollar continues to lose value against the United States dollar, as reported by the Reserve Bank of Zimbabwe (RBZ) in its recent Foreign Currency Auction. The exchange rate on Tuesday was ZW$5,903.3898 per USD, compared to ZW$5827.7972 per USD recorded on December 5, 2023.
This depreciation of the Zimbabwean dollar has been ongoing since its reintroduction in June 2019, following a period of hyperinflation that led to its abandonment for ten years. The continuous devaluation of the currency has resulted in macroeconomic instability, characterized by high inflation rates.
To address the collapse of the local currency and stabilize the macroeconomy, the government implemented various measures. One such measure was making it mandatory for certain taxes to be paid in Zimbabwean dollars, aiming to create demand for the currency and maintain its value. However, economists, like Tinashe Murapata, argued that this demand was only superficial.
Unfortunately, these measures have not yet yielded the desired results, and the economy remains unstable. There are concerns that the situation may worsen in the coming year. Nevertheless, the government assures the nation that it is taking necessary steps to prevent a further deterioration of the economy.
The continuous depreciation of the Zimbabwean dollar against the US dollar raises concerns about the purchasing power of individuals and businesses, as well as the overall economic stability. It highlights the need for effective measures and reforms to address the underlying issues and restore confidence in the local currency. The majority of workers, particularly government workers are paid in Zimbabwean dollars which means inflation will erode their incomes.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

RBZ Forex Auction: Zimbabwean Dollar Continues To Lose Value Against The United States Dollar

CEOs and senior executives in Zimbabwe have expressed a significant lack of confidence in the country’s economy, according to the latest Business Confidence Index (BCI) from the CEO Africa Roundtable. The survey, conducted before the recent budget announcement, paints a pessimistic outlook for business sentiment and prospects.
The CEO Africa Roundtable’s CEO, Kipson Gundani, stated that the majority of executives are concerned about the future. Gundani told <a href="https://www.newsday.co.zw/business/article/200020812/business-gives-economy-thumbs-down">NewsDay:</a>
<blockquote>
The confidence index was done before the budget, but nevertheless, it paints a pessimistic picture where most of the executives are pessimistic about the future. And, if you are to judge from the comments then given after the budget, I think most executives feel worried about the level and types of taxation within the budget.
They also paint a very bleak picture about the macro-economic framework that is expounded by the budget. Notable items are to do with wealth tax and the IMTT (Intermediated Money Transfer Tax) which in its design was meant to bring the informal sector into the tax bracket.
</blockquote>
The government and its partners, like the International Monetary Fund (IMF), have already predicted a difficult year for Zimbabwe in 2024. One of the reasons is the decrease in value of the Zimbabwean dollar compared to other important currencies, especially the US dollar. Another reason is the decreasing prices of minerals which Zimbabwe rely on for foreign currency. Additionally, there are worries about a possible drought and famine. This is especially concerning because the economy is already facing challenges.
Oswell Binha, the CEO Africa Roundtable chairperson, emphasized that Zimbabwe’s economy has long been fragile and unable to capitalize on global economic booms or shield itself from internal and external threats. He criticized the excessive taxes proposed in the 2024 national budget, believing they will further burden businesses and individuals amidst an already volatile economic environment.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

CEOs And Senior Executives In Zimbabwe Express Lack Of Confidence In The Eeconomy

The Permanent Secretary of Finance, Economic Development, and Investment Promotion, George Guvamatanga, has appealed to banks in Zimbabwe to reduce charges and fees to attract the unbanked population into the formal banking system. Guvamatanga highlighted the issue of low deposits in savings accounts, with the majority of deposits being transitory. The government has been advocating for lower banking fees to encourage the estimated US$2.5 billion circulating outside formal channels to be deposited in banks.
Speaking during a post-budget briefing last Wednesday, Guvamatanga encouraged the banks to initiate moves that attract people to keep their money in banks. <a href="https://www.newsday.co.zw/business/article/200020801/govt-pleads-with-banks-to-lower-charges">NewsDay</a> quotes him as saying:
<blockquote>
Now let me come to an interesting issue of confidence in the banking sector. There is a need for work on government’s part, which we are trying. On the government’s part, what we have realised on the issue of stability, the issue lies in confidence. That is why stability is the overarching issue here.
The issue is on (bank) charges. Banks please. Someone commented that we no longer have banks in this country. When I put money into your account, you pay me later. You make a cash withdrawal, you withdraw $100 000, the bank takes its 2% or 3% commission and sometimes there is no limit. When you walk away from the bank, you walk away with $97 000. So, the question is, are we encouraging the depositors to bank their money?
</blockquote>
Guvamatanga also accused banks of focusing on non-core business activities instead of lending. Guvamatanga pointed out that most banks generate around 60% to 70% of their income from non-funded sources, which is significantly higher than the norm internationally.
He specifically criticized the charges imposed on Visa and Mastercard debit cards used for foreign transactions, referring to them as “robbery.” Guvamatanga called for banks to address these issues before the end of the festive season and urged them to revise their charges to encourage people to deposit their money in banks.
In response to the high bank charges, the Bankers Association of Zimbabwe mentioned various costs that banks face, including operational and capital costs from service providers, license fees, software maintenance costs, and currency repatriation costs. The association also noted that while traditional current/demand accounts incur bank charges, there are other products such as savings accounts that do not incur charges.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Government Appeals To Banks To Reduce Charges And Fees

Zimbabwe’s Finance Minister, Mthuli Ncube presented the architecture of the Zimbabwean financial sector at the 2023 Global Reputation Forum in London where he was honoured with <a href="https://www.pindula.co.zw/2023/12/10/mthuli-ncube-awarded-african-finance-minister-of-the-year-by-the-reputation-poll-international-in-uk/">an award for the country’s efforts in economic recovery and financial inclusion</a>. The award however attracted criticism from some quarters in Zimbabwe.
The financial sector in Zimbabwe encompasses various institutions such as banks, insurance companies, pension funds, capital markets, and microfinance institutions. These institutions play a crucial role in implementing financial inclusion initiatives outlined in the National Financial Inclusion Strategy.
In his speech at the event, Ncube, a former Chief Economist and Vice President of the African Development Bank, and a Professor at the University of Oxford, UK said:
<blockquote>
Since 2014, we witnessed a rise in financial inclusion, from 69% of the adult population to 83% in 2022, reducing the financial exclusion gap from 23% to 12% respectively.
This was largely driven by the increased uptake of mobile money services, sprouting with 72% of households having access to a bank, microfinance or mobile account with which to transact digitally.
</blockquote>
Digital Financial Services
Recognising the importance of digital transformation and financial inclusion, the Zimbabwean government developed and implemented its first National Financial Inclusion Strategy (NFIS I) from 2016 to 2020. The strategy aimed to provide affordable and accessible financial services to all Zimbabweans through formal and regulated entities. Building on the success of NFIS I, the country is currently implementing the second National Financial Inclusion Strategy (NFIS II) from 2022 to 2026. NFIS II focuses on increasing financial inclusion access and usage for special groups, including women, youth, micro, small, and medium enterprises (MSMEs), rural communities, smallholder farmers, people with disabilities, and pensioners.
To bring banking and financial services to the underserved and unbanked population, Zimbabwe has embraced various financial technology initiatives. Digital financial services have been introduced to provide a wide range of financial services through digital channels, including payments, credit, savings, remittances, and insurance. This includes the use of ATMs, bank cards, electronic banking, and mobile banking applications. However, in recent years, there has been a growing appetite to use cash as the economy seems to be redollarising.
National Payment System
The national payment system in Zimbabwe has also increased the use of digital payment channels, such as Real-Time Gross Settlements (RTGs), to enhance financial inclusion. Mobile financial services offered through basic feature phones have played a pivotal role in increasing the uptake and usage of financial services, making the financial sector more inclusive. Mobile banking allows individuals and businesses to access banking services, make deposits, and withdrawals, and even access microloans using just a mobile phone. This has unlocked economic opportunities for grassroots businesses and streamlined cross-border remittances.
Interoperability
Interoperability between banks and mobile network operators has accelerated instant payments and further facilitated financial inclusion. The Central Bank introduced bank and mobile money interoperability in 2020, allowing for seamless transactions between different financial service providers. Mobile network operators have had a growing impact in the digital space, and new technologies have provided opportunities for connecting businesses globally.
Credit Registry &amp; Credit Guarantee Scheme
To improve access to credit, Zimbabwe has implemented a credit registry system that enhances the credit referencing environment and allows credit service providers to better understand their customers. This promotes responsible lending practices, reduces over-indebtedness, and improves access to credit. Additionally, a credit guarantee scheme has been introduced to facilitate productive lending to small businesses, stimulate economic growth, and reduce the barriers faced by MSMEs, women, youth, and persons living with disabilities.
The introduction of a second foreign exchange auction system has catered to the foreign currency needs of MSMEs in Zimbabwe. However, some critics say the system is not adequately meeting the forex needs with others arguing that the artificial rate on the system is also a cause for concern. The system has largely created a more predictable foreign exchange market, enabling sustainable MSME development.
The country has also launched a collateral registry system to address challenges faced by women, youth, and MSMEs due to inadequate or lack of requisite collateral. This registry has facilitated access to credit for marginalized groups, with over 1,186 active registered security interests and a corresponding loan amount of ZW$4.2 trillion.
Gold Coins and Digital Tokens
To promote a savings culture and provide investment alternatives, Zimbabwe has introduced gold coins and gold-backed digital tokens. The gold coins have small denominations to allow targeted groups to adopt them as an alternative store of value. The gold-backed digital tokens, known as ZiG, are fully backed by physical gold and can be used for transactions in the economy, complementing the domestic currency.
Technology key driver to inclusive insurance
Technology has played a crucial role in improving the uptake of insurance in underserved communities in Zimbabwe. The microinsurance space has seen the implementation of a dedicated microinsurance framework, allowing for the licensing of microinsurance entities. These entities offer insurance products through technology-driven distribution channels, such as mobile phones, to reach a wider audience. Efforts are also being made to develop agricultural index-based insurance, leveraging technology for innovative risk assessment and pricing techniques, tailored to the specific needs of smallholder farmers.
Exchange Traded Funds (ETFs)
The Zimbabwe Stock Exchange has introduced new products, such as Exchange Traded Funds (ETFs), which provide individual investors with access to unitized and diversified portfolios at low transaction costs. This has improved financial inclusion in the equity markets. Additionally, Real Estate Investment Trusts (REITs) have been introduced to provide an avenue for retail investors to access the real estate market. These initiatives have broadened investment opportunities for individuals and increased participation in the capital markets.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

The Architecture Of Zimbabwean Financial Sector: Ncube At The 2023 Global Reputation Forum

Zimbabwe’s Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, has been awarded the African Finance Minister of the Year by Reputation Poll International in the United Kingdom. The award was presented at the 2023 Global Reputation Forum held in the House of Lords in Central London. Expressing his gratitude, Ncube said:
<blockquote>
Today, I was greatly honored to be awarded an accolade of the African Finance Minister of the Year by the Reputation Poll International in the United Kingdom at the 2023 Global Reputation Forum in the House of Lords in Central London.
</blockquote>
This is not the first time he has been recognised for his achievements in finance. In 2021, he was ranked among the top five Ministers of Finance in Africa by the Senegalese publication “Financial Afrik.”
However, the 2021 award received criticism from former Finance Minister, Tendai Biti who described Ncube’s celebration as disturbing and sycophantic, emphasising the poor state of Zimbabwe’s economy. Back then, Tony Hawkins, a former economics lecturer at the University of Zimbabwe’s Graduate School of Management, said with high inflation rates and unachieved targets, there was little for Ncube to celebrate.
Ncube’s post mentioned that the top 5 ministers were recognised for implementing successful economic policies. This year, criticism came from journalist Hopewell Chin’ono who said: 
  
How much did you pay Reputation Poll International for this one? The same organization that declared Chakwera one of Africa’s top leaders. You are a joke Mthuli. 
  
<a href="https://www.pindula.co.zw/Farai_Maguwu/">Farai Maguwu</a>, a Zimbabwean social and political commentator and the founding Director of the Centre for Natural Resource Governance (CNRG), also said:
<blockquote>
You are not even ashamed to post this? Then let be ashamed on your behalf!
</blockquote>
However, some claim that Ncube is the best Finance Minister Zimbabwe has had since the late <a href="https://www.pindula.co.zw/Bernard_Chidzero/">Bernard Chidzero</a> and <a href="https://www.pindula.co.zw/Ariston_Chambati/">Ariston Chambati</a>. Former MDC-T vice president, Obert Gutu, made this claim in 2019. Gutu praised Ncube as astute and able. Notable finance ministers after Chidzero and Chambati include Simba Makoni, Herbert Murerwa, Samuel Mumbengegwi, Chris Kuruneri, Patrick Chinamasa, Tendai Biti (during the GNU era), and Ignatius Chombo. However, Gutu’s remarks faced backlash from some of his followers, who accused him of being a government apologist.
Ncube’s unpopularity stems from the austerity measures he implemented to address the economic crisis. Many Zimbabweans argued that these measures, such as high taxes, only worsened their already burdensome situation. He has hinted on raising taxes and introducing more in 2024.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Mthuli Ncube Awarded African Finance Minister Of The Year By The Reputation Poll International In UK

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), which is a subsidiary of the Zimbabwe Electricity Supply Authority (ZESA), has announced that there will be planned power interruptions in the Eastern, Southern, and Western regions. The power utility said these interruptions are necessary for maintenance work and have been scheduled for specific hours.
The maintenance is planned for the Tokwe Bulk Supply Point on December 13, 2023, from 6:00 AM to 4:00 PM.
The affected areas include Masvingo City, Mucheke, Rujeko, Zimre Park, 4 Brigade, Clipsham, Morningside, Zimuto, Gokomere, Bikita, Nyika, Bikita Minerals, Marah Ranch, Nemamwa, Great Zimbabwe, Bushmead Water Works, Mushandike, Chivi, Mashava, Hama, Chirumhanzu, Zvishavane, Gwanda, Mberengwa, Chiredzi, Triangle Town, Triangle Mill, Hippo Valley, Rutenga, Mwenezi, Tokwe Mukosi, Beitbridge, Checheche, Chisumbanje, Zaka, Jerera, Mkwasine, Renco Mine, Mupapa, and many other locations in the region.
ZETDC advised customers in these areas to consider all circuits as live during this period, as power may be restored without prior notice.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

ZESA Power Cuts Alert: Maintenance To Affect Eastern, Southern & Western Regions

Reserve Bank of Zimbabwe (RBZ) Governor John Panonetsa Mangudya is set to leave his post at the central bank when his 10-year term of office ends in April next year.
According to a statement issued by the Chief Secretary to the President and Cabinet, Martin Rushwaya this Friday. Mangudya will become the Chief Executive Officer of the Mutapa Investment Fund when he leaves the central bank.
<a href="https://www.pindula.co.zw/John_Mushayavanhu/">John Mushayavanhu</a>, the FBC Holdings Group Chief Executive Officer, will take over from Mangudya as RBZ Governor. Read the statement:
<blockquote>
His Excellency the President has in terms of Section 8 (b) (1) of the Sovereign Wealth Fund Act [Chapter 22:20] appointed Dr. John Panonetsa Mangudya to the post of Chief Executive Officer of the Mutapa Investment Fund.
Dr. Mangudya’s 10-year term of office at the helm of the Reserve Bank of Zimbabwe ends on 30 April 2024 in terms of Section 15(3) of the Reserve Bank of Zimbabwe Act [Chapter 22:15).
Dr. Mangudya shall be succeeded by Dr. John Mushayavanhu as Governor of the Reserve Bank of Zimbabwe.
Dr. Mushayavanhu is a career banker, with over 30 years of banking experience, having worked at Standard Chartered Bank and FBC Bank in senior capacities.
Dr. Mushayavanhu holds several educational qualifications including a Master’s Degree in Business Administration and a PhD in Business Administration.
These senior appointments have been made in line with the dictates of good corporate governance on succession planning for forward guidance of the market.
</blockquote>
Journalist Hopewell Chin’ono has described Mushayavanhu as President Emmerson Mnangagwa’s “clansman”, adding that the President’s “surrogates” from Masvingo and Midlands Provinces are now in charge of key State institutions. Said Chin’ono:
<blockquote>
The appointment of President Mnangagwa’s clansman, John Mushayavanhu as the new Reserve Bank Governor is hidden in this appointment of John Mangudya.
Mnangagwa has completed the takeover of all key Zimbabwean institutions appointing his surrogates from the Midlands and Masvingo!
His “boys and girls” are now fully in charge of all key State institutions!
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Mnangagwa Appoints John Mushayavanhu As RBZ Governor

The prices of basic grocery items have increased sharply ahead of the festive season, potentially making the holidays miserable for the majority of Zimbabweans, a <a href="https://businesstimes.co.zw/prices-skyrocket-ahead-of-festive-season/">Business Times</a> report claims.
Rosemary Mpofu, executive director of the Consumer Council of Zimbabwe (CCZ), attributed the price hikes to unfavourable government policies, increased demand for goods and the depreciating value of the Zimbabwean dollar against other currencies. She said:
<blockquote>
As measured by the CCZ low-income urban earner monthly basket for a family of six, the cost of living measured in the local currency increased by 8.56% from ZWL$2 958 460.70.
Given the proposed policy measures in the recently pronounced budget statement, in particular, the increase in the corporate income tax, the restriction of procurement of goods from manufacturers and the imposition of levy on beverages, the cost of living is projected to continue to increase.
The demand for most basic products increases during the festive season and based on the previous trends, suppliers often take advantage and raise their prices during the period.
Also, it was noted that some suppliers also introduce false promotions during the festive season yet their prices would have been inflated just before the festive season.
The local currency has also been depreciating at the formal wholesale and also on the parallel market.
</blockquote>
A survey conducted this week by Business Times showed that: the price of a 10-kg bag of mealie meal has increased to ZWL$57 427.50 from ZWL$44 175.00 at the end of November, while the price of a 2-litre bottle of cooking oil has gone up to ZWL$26 505.00 from ZWL$25 935.00.
In major retail chains, a 2 kg packet of rice is now selling at ZWL$18 553.50 from ZWL$18154.00.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Shops Hike Prices Ahead Of Festive Season

Zimbabwe is reportedly seeking loans from mid-tier United Kingdom banks as it grapples with its significant debt burden. With a total debt of US$17.7 billion, the country is finding it difficult to secure funding from larger global lenders due to its poor credit record. As of September, the total public and public guaranteed debt stood at US$17.7 billion, with 72% being foreign debt and 28% local debt, Finance Minister Mthuli Ncube revealed in the 2024 National Budget proposal last week. This means that the government owes a lot of money to both international and domestic creditors.
To meet its financial obligations, the government is now in talks with Broughton Capital for a loan of US$100 million, according to <a href="https://newzwire.live/from-a-platinum-backed-loan-to-talks-with-small-uk-banks-heres-what-new-report-shows-about-zimbabwes-debt-crisis/">newZWire</a>. Broughton Capital, which claims to have arranged debt syndication of close to US$2 billion for Thailand’s infrastructure, could be a potential source of funding for Zimbabwe. Additionally, the government is also negotiating with Dinosaur Merchant Bank, another UK-based investment bank, for a loan of US$125 million.
Furthermore, Zimbabwe is expecting to receive loans from ABSA and Standard Bank in 2024. The two South African banks have raised US$193 million for the construction of hospitals and clinics in the country. The loan disbursement is set to begin with an initial amount of US$105 million. This funding will be used to compensate UK infrastructure company NMS for its work in building healthcare facilities in Zimbabwe.
Given the challenging debt situation, Zimbabwe is exploring alternative sources of funding to address its financial obligations. While larger global lenders remain sceptical, mid-tier banks and partnerships with foreign entities offer potential solutions. However, Zimbabwe must take measures to improve its credit record and long-term financial stability.
Zimbabwe has been using its mineral resources as collateral to secure loans. In February 2023, the country borrowed US$400 million from the Africa Export-Import Bank (Afreximbank) for budget support and trade-related infrastructure. To repay this loan, Zimbabwe will use 35% of the export proceeds from platinum sales, which are managed by the Reserve Bank of Zimbabwe (RBZ). This loan has a maturity period of 6 years and carries an interest rate of 10.2%. The government considers it a significant achievement, as it has been challenging for Zimbabwe to access external finance, especially for budget support, for over two decades.
In addition to platinum, Zimbabwe also uses gold and diamonds as collateral for loans. These valuable mineral resources serve as guarantees for lenders, providing them with an assurance that they will be repaid. There are concerns among some people that the minerals in Zimbabwe are being misused. The Zimbabwe Coalition on Debt and Development (ZCODD), for example, believes that the loans obtained using minerals as collateral benefit only a select few individuals, which they consider to be unfair.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Zimbabwe Seeks Loans From UK Banks As It Grapples With Significant Debt Burden

CBZ Holdings Limited, a financial services company in Zimbabwe, has announced the retirement of its Chairman, Marc Holtzman, and Group Chief Executive Officer, Blessing Mudavanhu. Marc Holtzman’s retirement will be effective from December 31, 2023, while Blessing Mudavanhu’s retirement will also take effect on the same date.
In statements seen by Pindula News, the company expressed gratitude to Marc Holtzman for his service and leadership during his tenure. Said the company:
<blockquote>
The Board of Directors (“the Board) of CBZ Holdings Limited (“the Company”) announces that Mr. Marc Holtzman, a Non-Executive Director of the Company, has tendered notice of his retirement as a Director of the Company and from the position of Chairman of the Board of Directors with effect from 31 December 2023. A transitional arrangement has been put in place and this has allowed Mr Holtzman to proceed to take leave from 1 December 2023.
</blockquote>
Luxon Zembe has been appointed as the Acting Chairman, effective from December 1, 2023. Luxon Zembe brings extensive experience in business management consulting and corporate governance. Said the company:
<blockquote>
Luxon is a highly experienced business management consultant with over 30 years of expertise in Corporate Governance and Strategic Planning across various sectors. His financial sector experience includes serving on the Reserve Bank of Zimbabwe Advisory Board and Monetary Policy Committees, as well as holding executive positions at Standard Chartered Bank. Luxon has also held senior roles in manufacturing, mining, and retail sectors. He currently runs a management consulting business.
Luxon holds an MBA degree from Henley International Business School and is a Chartered Fellow of the Chartered Institute of Personnel Development (CIPD) (UK), among other qualifications. In addition to his professional roles, he is involved in academic and consultancy work, serving as an adjunct lecturer at Solusi University and Zimbabwe Defense University, and as a senior consultant, mentor, and trainer for the Zimbabwe Institute of Directors. With his vast corporate experience, Luxon is adequately positioned to provide leadership in driving to completion the corporate actions currently underway in the Company.
</blockquote>
On Mudavanhu’s retirement, CBZ said:
<blockquote>
The Board of Directors of CBZ Holdings Limited (“the Company”) wish to announce that after five years of distinguished service, Dr. Blessing Mudavanhu will be retiring from his position as Group Chief Executive Officer for the Company with the effect from 31 December 2023. A transitional arrangement has been put in place and this has allowed Dr Mudavanhu to proceed to take leave from 1 December 2023.
With over 20 years of experience in regional and intemational financial services organizations, Blessing was key in driving the Company’s growth strategy headlined by the successful acquisition of a significant shareholding in a leading, publicly listed insurance group. His leadership was instrumental in restoring the Company’s brand and reputation, the momentum of which will no doubt continue into the future.
</blockquote>
The company has since appointed Lawrence Nyazema, the current Managing Director of CBZ Bank Limited, as the Acting Group Chief Executive Officer starting from December 1, 2023. The company said:
<blockquote>
The Board wishes to advise of the appointment of Mr. Lawrence Nyazema to the position of Acting Group Chief Executive Officer of CBZ Holdings Limited with effect from 1 December 2023. Lawrence is currently the Managing Director of CBZ Bank Limited, a position he took up on 1 January 2022 having joined CBZ Bank as Executive Director – Wholesale Banking in January 2020.
Prior to that he spent 19 years with Barclays Bank (now First Capital Bank) in various capacities including being Commercial Director from 1 April 2011 to January 2020 when he joined CBZ Bank. He also spent 10 years at ZB Financial Holdings.
The Board and Management congratulate Lawrence on his appointment and wish him all the best in his new role.
</blockquote>
Holtzman and Mudavanhu’s departure comes shortly after CBZ expanded with a recent acquisition of First Mutual Holdings Limited (FML) and the planned takeover of ZB. Under the deal, the National Social Security Authority (NSSA) sold part of its 66% stake in FML to CBZ in exchange for cash and 9% of CBZ stock. 
The NSSA holds the highest ownership stake in CBZ, with a share of 24.91%. Akribos Wealth Managers Nominees is the second-largest shareholder, owning 23.10% of the company. The Government of Zimbabwe is the third-largest shareholder, with a stake of 19.34%. These shareholders play a significant role in the governance and decision-making of CBZ Holdings.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

CBZ Announces Departure Of Chair Marc Holtzman And CEO Blessing Mudavanhu

The Zimbabwe Energy Regulatory Authority (ZERA) has reduced diesel and petrol prices in both United States dollars (USD) and in Zimbabwean dollars with effect from 4 December 2023. In a statement published by Pindula News, ZERA said the new prices are as follows: 
Diesel 50 (ZWL/litre) 9 732.61;
Diesel 50 (US$/litre) 1.68;
Blend – E20 (ZWL/litre) 8 999.06;
Blend – E20 (US$/litre) 1.55
ZERA announced that the fuel prices will be effective until 4th January 2024. The regulator set the blending ratio at E20. According to ZERA, operators have the option to sell petroleum products below the prescribed prices if they have trading advantages. Operators must display the prices prominently as per the fuel pricing regulations. Stakeholders are advised to verify the petroleum price releases on the official ZERA website, Facebook, or Twitter.
<h3>Fuel Prices Trend:</h3>
November 2023:
Diesel 50: ZWL$9 971.19/litre
Diesel 50: US$1.74/litre
Blend – E20: ZWL$8 957.19/litre
Blend – E20: US$ 1.56/litre
October 2023:
Diesel 50: ZWL$10,032.51/litre
Diesel 50: US$1.79/litre
Blend – E20: ZWL$9,247.71/litre
Blend – E20: US$1.65/litre
<a href="https://www.pindula.co.zw/2023/09/07/zera-raises-fuel-prices-in-usd-reduces-in-zimbabwean-dollars-7-september-2023/">September 2023</a>:
<div class="in_article"><ins class="adsbygoogle" data-ad-client="ca-pub-2833808250787996" data-ad-format="fluid" data-ad-layout="in-article" data-ad-slot="5016871731" data-ad-status="filled" data-adsbygoogle-status="done"></ins>
<div>
Diesel 50: ZWL8 160.44/litre
Diesel 50: US$1.76/litre
Blend – E20: ZWL$7 648.14/litre
Blend – E20: US$1.65/litre
<a href="https://www.pindula.co.zw/2023/08/09/zera-raise-fuel-in-usd-reduce-in-zimbabwean-dollars-8-august-2023/">August </a>2023:
Diesel 50: ZWL7,492.63
Diesel 50: US$1.65,
Blend – E20: ZWL7,300.72
Blend – E20: US$1.61
July 2023:
<div class="in_article">
Diesel 50: ZWL9,200.03
Diesel 50: US$1.58;
Blend – E20: ZWL9,113.66
Blend – E20: US$1.57.
More Pindula News
</div>
</div>
</div>

ZERA Reduces Fuel Prices With Effect From 4 December 2023

Chalton Hwende, a Member of Parliament for Kuwadzana East constituency, has expressed concern that implementing a <a href="https://www.pindula.co.zw/2023/12/01/zimbabwe-2024-national-budget-passport-vehicle-registration-toll-fees-raised-tax-for-soft-drinks/">tax on soft drinks</a> would lead to increased smuggling. The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, recently proposed introducing this tax in the 2024 National Budget. He said the aim is to generate revenue and discourage the consumption of high-sugar beverages.
However, Hwende who is also a member of the Citizens Coalition for Change (CCC), believes that due to the country’s porous borders, traders will turn to informal imports from countries like South Africa. As these imported products would be cheaper than locally produced ones, it may harm local businesses. He said:
<blockquote>
A levy on the sugar content of beverages is going to lead to many job losses from Manufacturers to sugar cane farmers. Consumers will also be affected as most companies are likely to pass the burden to the already overtaxed citizens The proposed levy is US$0.02 per gram of sugar in beverages, excluding water.
If we don’t fight it next week during the budget debate the levy will take effect from January 1, 2024. As a country do not have an obesity issue but malnutrition is our biggest problem with many families struggling to have two meals. The tax level of US2c\g is very heavy. It will affect the current sales volumes of Beverages manufacturing companies. Using the 300ml Coca-Cola bottle as an example (which has 35g of sugar content) the proposed tax levy will lead to a total tax of US 70c – a ridiculous level of tax for a product selling for US25c, implying the consumer will pay US95-US110c per 300ml bottle after factoring VAT and retail margins.
Traders will resort to informal import from countries like SA given the porous borders because such products will be cheaper than the local produce, pushing out local businesses. Sugar companies will be forced to scale down threatening thousands of jobs and even sugarcane farmers. Producers will most likely move to artificial sweeteners in place of sugar.
</blockquote>
The budget has received criticism, especially for the higher taxes and new taxes that have been introduced. Some experts, like Professor Gideon Zhou from the University of Zimbabwe, who specializes in Governance and Public Management, have expressed concerns that the budget could have significant negative effects. He said:
<blockquote>
Indeed, a very extractive budget informed by the canons of austerity. However, extracting revenue from an already over-taxed and poverty-ridden citizenry looks like a recipe for far-reaching worse-off livelihood future scenarios. We are at risk of compromising the concerns of Vision 2030 which envisages not only a HEALTHY ECONOMY but a HEALTHY SOCIETY as well. The 2024 Budget seems to be leaving society behind in its efforts to steer the economy towards a middle-income ranking.
</blockquote>
The public has been urging Members of Parliament to reject the Budget, but some senior government officials have publicly supported it. Dr. John Mangudya, the governor of the Reserve Bank of Zimbabwe, has stated that raising revenue through taxes is necessary because Zimbabwe’s access to credit from international institutions is decreasing. He believes that this is the only viable option for the country to fulfil its financial responsibilities.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Tax On Soft Drinks Will Worsen Smuggling - Hwende

Buy Zimbabwe is currently in discussions with the Procurement Regulatory Authority of Zimbabwe (PRAZ) to prioritise goods and services produced within the country. This initiative aims to ensure that a majority of the products available for sale are locally made. PRAZ is responsible for regulating procurement processes within the government and State enterprises.
In an interview with <a href="https://www.newsday.co.zw/business/article/200020486/buy-zimbabwe-wants-praz-to-prioritise-local-goods">NewsDay Business</a>, Munyaradzi Hwengwere, the CEO of Buy Zimbabwe, stated that they focus on prioritising locally manufactured goods in the public procurement sector. He said:
<blockquote>
Our focus areas have really been to make sure that on the public procurement sector we prioritise locally produced goods and services. Right now, our discussion with the Procurement Regulator Authority of Zimbabwe is to make sure that the provision that prefers locals in terms of public procurement is tightened so that it focuses on the goods.
While the provision is there, it is too open-ended and it does not speak of locally-produced goods and services. And it has created loopholes so that’s the first strategy that we can speak about. 
</blockquote>
The discussions with PRAZ are of great significance because the public sector is the largest buyer of goods and services in Zimbabwe. For instance, between January and September of this year, an estimated ZWL$4.45 trillion was spent on goods and services, which provides a substantial market for local manufacturers and service providers.
Hwengwere said that the Buy Zimbabwe campaign has already resulted in a decrease in imports. He referred to the trade data from October, released by ZimStats, to support this claim. However, he stressed the need to focus on value-added exports to increase the value of Zimbabwe’s exports. At present, the majority of Zimbabwe’s exports are commodities, which have a relatively lower value compared to finished goods that are imported.
Hwengwere acknowledged that Zimbabwe heavily relies on imported products like petroleum, but mentioned that there has been a significant preference for Zimbabwean products in the food sector. He emphasized the importance of private sector engagement and creating a national database to understand better and connect locally generated products and services to the domestic market.
Hwengwere said Buy Zimbabwe does not advocate for complete isolation from international trade. He said while there are areas where other countries have a comparative advantage, it is crucial to focus on promoting local production and supporting locally-made goods and services.
Locally made products are more expensive than imported goods because the cost of production is high. As a result, people have been choosing to buy imported goods and services instead. This has been a concern for the local industry, and they are calling on the government to step in and protect them. Economists have always argued that it is important to ensure that the operating environment is conducive for businesses to thrive because that would help create jobs, boost the economy, and ensure the sustainability of local businesses. 
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Buy Zimbabwe Urges PRAZ To Prioritise Goods And Services Produced Locally

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), which is a subordinate of the Zimbabwe Electricity Supply Authority (ZESA), has announced that there will be planned power interruptions in the Mt Hampden area of Harare. These interruptions are scheduled for specific hours and are necessary for maintenance work.
On Wednesday, 6th December 2023, from 8:00 AM to 6:00 PM, the following areas will be affected: Willdale Bricks, Predon Bricks, Solar Farming, Billinski Farm, Gwebi College, Madzorera Farm, and the surrounding areas.
On Thursday, 7th December 2023, there will be power interruptions in Cyber City, Obrim Bricks, Prawell Bricks, Glenara Farm, GoodHope, Anortt Farm, Goodhope Farm, and the surrounding areas.
In a statement seen by Pindula News, the power utility said during this time, customers are advised to treat all circuits as Low Voltage Electricity (LVE) because power may be restored without prior notice.
<h3>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h3>

ZESA Announces Planned Power Interruptions In Mt Hampden Harare Region

Zimplats last week handed over two classroom blocks and ablution facilities to authorities at Turf Primary School in Mhondoro Ngezi District, Mashonaland West Province.
The platinum miner reportedly spent US$380 000 building the facilities in an attempt to relieve congestion at the elementary school.
The Minister of Mashonaland West Provincial Affairs and Devolution, Marian Chombo, formally handed them over to the Mhondoro Ngezi Rural District Council. <a href="https://businesstimes.co.zw/zimplats-hands-over-classroom-blocks/">Business Times</a> quoted Chombo as saying:
<blockquote>
Behind this metamorphosis is largely Zimplats, which has been implementing life-changing projects in this town.
As with any population growth, the educational facilities in Turf Town are struggling to cope with demand.
Turf Primary School has been no exception despite the best efforts of the local authority, represented here by its chairman and chief executive.
</blockquote>
About 3 000 learners are enrolled at the school.
Zimplats’ Head of Corporate Affairs, Busi Chindove who spoke on behalf of CEO Alex Mhembere, said:
<blockquote>
The purpose of our existence is to create a better future for our stakeholders, who include the communities within our footprint.
In doing so, we are guided by our values of respect, care and delivery. For us at Zimplats, creating social impact among our stakeholders is integral to how we do business.
We focus on four main pillars namely: Education and skills development, community well-being, local enterprise development and infrastructure development.
This will go a long way in improving the teacher-to-student ratio from an average of 1:55 to 1:40 which could also enhance the learning environment and pass rates.
</blockquote>
Projects started by Zimplats over the years have also benefited several schools in the Mhondoro-Ngezi and Chegutu districts among them St Michaels, David Guzuzu, Rutara Primary, Saruwe Primary, Marshal Hartley, Saruwe Secondary, Wanganui Primary and Wanganui Secondary.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimplats Hands Over US$380 000 Classroom Blocks

Economist Professor Gift Mugano says the proposal by the Minister of Finance, Economic Development, and Investment Promotion Mthuli Ncube to allow only traders registered for VAT purposes and in possession of valid Tax Clearance Certificates to procure goods from manufacturers is aimed at saving established supermarkets from collapse.
Mugano said if the proposal is adopted by Parliament, more than six million people who are making livelihoods from buying and selling will be negatively affected.
In his 2024 National Budget presentation on Thursday, Ncube said:
<blockquote>
To restore the supply chain from the manufacturer, wholesaler to retailer, I propose that only licensed and Tax Compliant Operators procure goods from manufacturers and wholesalers.
In addition, I, therefore, propose that only traders registered for VAT purposes and in possession of valid Tax Clearance Certificates be eligible to procure goods from manufacturers.
I, further, propose to review downwards, the VAT registration threshold to US$25 000, or local currency equivalent, with effect from 1 January 2024.
Enterprises that meet the above threshold should, thus, register and account for VAT, failure of which applicable penalties will be invoked.
</blockquote>
Responding to the Permanent Secretary in the Ministry of Information, Publicity and Broadcasting Services Ndavaningi Mangwana, who had said small-scale retailers should either “formalise or fold up”, Mugano said:
<blockquote>
In my view, this proposed policy aims to save established supermarkets from collapse at the expense of 6 million people who are making livelihoods from buying and selling.
In your view, you are convinced that a trader without a VAT certificate is informal? Most of the traders buying from manufacturers are already formalized – securing a VAT is not the only ticket to formalization.
Are you aware that these traders make sales amounting to US$500 per month which makes it difficult for them to hit US$25 000 required for them to get VAT certificate?
Again, in your view, do you think that when you shut them out of the local manufacturing sector they will fold their hands and die?
There are high chances that they will smuggle goods into the country whilst our own manufacturing companies will be closing down as sales take a drastic fall. Is this what you want to achieve as a government?
Have you ever put a thought on how products like beer, bread and ice cream are sold? Sales of these commodities are moved by traders who can’t qualify for VAT certificates, not supermarkets.
So, what is going to happen to both traders and manufacturers of these commodities?
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Business News (4)

Latest Jobs