President Emmerson Mnangagwa is expected to officially open this year’s edition on Friday.

By Letwin Nyambayo

THE 59th edition of the Zimbabwe International Trade Fair (ZITF) kicks off today here with focus on sustainable Industrial development.

This year’s edition of the ZITF, which is running under the theme “Sustainable Industrial Development – Inclusive. Competitive. Collaborative,” is expected to be officially opened by President Emmerson Mnangagwa.

ZITF board chairperson Ruth Ncube said the main focus is to buttress government’s resolve to pursue industrialisation as the cornerstone of the nation’s economic growth and development

She said this positions trade fair as the bridge between local industry players with viable, bankable projects and potential investors keen to partner with them in mutually beneficial enterprises

“We have seen an increase in the number of new local exhibitors as 25 percent of the 454 direct exhibitors who have confirmed participation will be participation for the first time, this to us is pleasing because it is indicative of an improved trading environment and renewed impetus to compete in the global market place.

“The main reason for this upward growth trajectory is that ZITF 2018 is taking place against a unique and exciting backdrop, coming at a time when Zimbabwe has made concerted efforts to reengage with the international community and position itself for an economic rebirth.

“The show will provide the necessary platform to showcase home-grown industrial solutions to achieve this,” Ncube said.

Space uptake by foreigners has also been good with 18 foreign nations being represented at the annual business festival.

“To date we have confirmed national exhibits from Botswana, Ethiopia, Indonesia, Japan , Kenya, Malawi, Mozambique, Nigeria, South Africa  and Zambia, while China and Cyprus will be represented by individual companies from those countries,” Ncube said.

A range of products and services including agricultural implements and equipment, automotive product, building and construction , civic representation, clothing and textiles, education and training, energy products and equipment, clothing and textiles , education and training, food products manufacturing and processing, business tourism products and services, information communication and technology, medical health related products, mining equipment, pharmaceuticals and chemicals will be showcased at the ZITF.

Highlights of the five day event include the ZITF International Business Conference on April 25, the charity golf course to be held on April 26 and the Bulawayo agricultural show.

Ministry of Foreign Affairs and International Relations’ roadmap for the first 100 days, Minister Sibusiso Moyo

ZIMBABWE expects to reap diplomatic and economic rewards from re-joining the Commonwealth, with its bid boosted by the backing of its return to the club it left in 2003 by Britain as President Emerson Mnangagwa continues with his international re-engagement thrust to boost trade and investment ties with global forces.

The country had become alienated under former leader Robert Mugabe who embarked on a land expropriation without compensation exercise in 2000. He was also accused of rights abuses and together with poor economic policies, this saw the international community severe ties with Zimbabwe.

Mnangagwa is now pursuing a different foreign policy thrust, pivoted around the new government’s “Zimbabwe is open for business” and international re-engagement exercise, which have seen him travel as far afield as China, across Africa and now the Commonwealth.

Expectations are high that Zimbabwe’s economy, for long retarded from growth owing to declining foreign direct investment inflows, will benefit from this.

“The Commonwealth is a club, more of a community whose ties will now even be stronger because of Brexit. Zimbabwe stands to benefit from enhanced ties within the grouping of British and its former colonies from trade deals, export quotas and other such measures and even the country’s athletes will compete at the Commonwealth games, which are a major event,” said economist Jeffrey Kasirori.

This comes after Boris Johnson, the British Secretary of State for Foreign and Commonwealth Affairs, said on Friday that he had met with Zimbabwe’s Foreign Affairs Minister, Sibusiso Moyo and other Commonwealth Ministers.

The meeting centred on “talks with Minister Sibusiso Moyo on how Britain, the Commonwealth & the wider international community will do everything it can in supporting Zimbabwe on its path of reform,” Johnson tweeted on Friday.

The British Foreign Office had earlier said: “The UK would strongly support Zimbabwe’s re-entry and a new Zimbabwe that is committed to political and economic reform that works for all its people.”

Zimbabwe’s bid to re-join the Commonwealth is being supported back home, with commentator, Innocent Chikoore saying Zimbabwe cannot continue to go it alone.

Investment analysts in Zimbabwe say there is rising interested by regional and international investors in the country following the exit of Mugabe last November.

“This mentality that Zimbabwe can go it alone is toxic. We now live in a global village where nations need to stand together than ever before. (There is) nothing to lose by re-joining the Commonwealth,” said Chikoore.

The benefits of Zimbabwe re-joining the Commonwealth are cemented under the Commonwealth Trade Review 2018 document, which says trade among Commonwealth countries is set to jump to $700 billion by 2020.

In 2016, trade among member states surged to $600 billion, while intra Commonwealth greenfield investments are projected to have topped $700 billion.

Zimbabwe would have missed out on any of these owing to its absence since 2003 when Mugabe, facing criticism over alleged stolen elections and the farm seizures, stormed out of the grouping.

Trade blocs have started to push for protectionist measures and restrictive moves, said economists, highlighting that there was more to lose in terms of trade and investment opportunities if Zimbabwe remained outside of the Commonwealth.

Mnangagwa’s re-engagement efforts and investment policies would also have been boosted by Times Magazine which included the Zimbabwean leader in its 100 list of global leaders. – IOL

Minister of Mines Winston Chitando

ZIMBABWE will drop a requirement that mining companies must list on the local stock exchange from a new mining act, according to foreign and international trade minister Sibusiso Moyo.

Industry lobby group, the Chamber of Mines, had expressed concerns about the proposal for mining firms to list locally, warning that the exchange might not be deep and liquid enough for companies to raise capital.

“Previously there was an indication that the new mining act would have a requirement to list on the local exchange,” Moyo said, speaking in London at a Chatham House event.

“But we can assure you that this qualification will be taken out.”

The original proposal was part of efforts under the country’s new president Emmerson Mnangagwa to boost investment and local ownership of Zimbabwe’s vast mineral resources.

Moyo also said Zimbabwe is committed to clearing its debt obligations with the World Bank, African Development Bank and other financial institutions.

The country needs to clear about $1.8 billion in arrears with the World Bank and the African Development Bank before it can tap other sources of development financing.

“We are committed to engaging with these key institutions as partners for growth in Zimbabwe, committed to clearing the outstanding debt with the World Bank and the African Development Bank, among others,” said Moyo.

“We believe that we are going to be able to meet all of our obligations.”

In 2016, Zimbabwe paid off 15 years’ worth of arrears to the International Monetary Fund.

Moyo added that Zimbabwe was in the process of re-establishing its membership of the Commonwealth, to which it believed it would belong again in due course.

Zimbabwe left the organisation of 53 mostly former British colonies in 2003 after then-President Robert Mugabe, who had ruled Zimbabwe from its independence in 1980, was criticised over disputed elections and land seizures from white farmers.

Britain said on Friday it would strongly support Zimbabwe’s re-entry to the Commonwealth after Mugabe was toppled in a military coup. – Reuters

ZIMBABWEAN banks are thriving under false security because their profits do not reflect the country’s challenging and cashless macroeconomic environment, a local think-tank said.
Econometer Global Capital (Econometer) said the financial services sector, which has been recording profits for the past two years, was set for robust deposit and asset growth in 2018.
“However, rather than being signs of strength for the sector, these factors are the result of a challenging macroeconomic environment in which hard cash is scarce.

Read full story in The Financial Gazette paper

Figures from Zimstat show that South Africa remained Zimbabwe’s largest trading partner in the three months to March, with trade between the two countries at $871 million.

ZIMBABWE’S trade deficit shot up to $545 million in the first quarter of this year, from $422,81 million during the comparative period the previous year, statistics from the national statistical office, Zimstat.
The deficit could have been higher had January figures, which were not included in the statistics, been taken into account. The country imported $1,181 billion worth of goods during the review period, against exports of $635,5 million. In the previous comparative quarter, the country imported goods worth $1,27 billion and exported $848,024 million worth of commodities.

Ministry of Foreign Affairs and International Relations, Minister Sibusiso Moyo

ZIMBABWE is moving to strike off a provision in its Minerals and Mining Bill compelling foreign-owned mining companies operating in the country to list the majority of their shares on the local stock exchange, Foreign Affairs and International Trade Minister, Sibusiso Moyo, has said.
Moyo said on Monday that the Bill — presently before Parliament after undergoing two readings — was set for an overhaul, with President Emmerson Mnangagwa’s government moving to make the country an attractive destination for new investment.

Read full story in The Financial Gazette paper

President Emmerson Mnangagwa

PRESIDENT Emmerson Mnangagwa’s administration could be in a spot of bother over cancellation of the tender for $1 billion Beitbridge-Chirundu highway dualisation project, with legal experts indicating that government could be sued by Austrian firm, Geiger International, for breach of contract.
Cabinet in March took a decision to terminate the contract and has already given Geiger a 60-day notice of intention to terminate the contract. According to Cabinet deliberations of March 13, 2018, Geiger International failed to provide proof of funding.

Read full story in The Financial Gazette paper

President Emmerson Mnangagwa and his Vice Presidents, Constantino Chiwenga (left) and Kembo Mohadi (right)

A NUMBER of convicted criminals and several other dodgy characters are vying to represent Zanu PF in this year’s elections, thus bringing into question President Emmerson Mnangagwa’s commitment to the fight against corruption and the ruling party’s own vetting processes of prospective candidates.
This also comes as the party readies to hold its primary elections this weekend and the new Zimbabwean leader has set out to win 2018’s harmonised plebiscite on a clean-government campaign, and economic success. While the list of those flagged for a number of commercial crimes and serious brushes with the law includes Campion Mugweni, Killer Zivhu, Energy Mutodi and Gilbert Muponda, analysts say Zanu PF risks “blunting its anti-graft crusade” if these people were allowed to compete in the national elections and the hazard of the ex-revolutionary movement being seen as “a haven for felonies”.

Read full story in The Financial Gazette paper

Econet Group founder and executive chairman, Strive Masiyiwa

THE times they are a changing. The Zimbabwe government has finally reached out to its richest and most generous citizen, Strive Masiyiwa, who lives in London, in exile, and is named as a billionaire by Forbes magazine but was seen by former president Robert Mugabe as an enemy.

Masiyiwa previously financed the Movement for Democratic Change (MDC), started an opposition newspaper, created a massive mobile phone network, Econet, and lately provides most of Zimbabwe’s cash transactions and a television network company which is challenging Multi Choice.

Masiyiwa’s massive business conglomerate was ignored by Mugabe’s administration since it began more then 30 years ago. Masiyiwa was seen almost as an enemy of the State.

But times they really are a changing: Vice president Constantino Chiwenga, a retired general, visited the Econet display stand at the International Trade Fair last week.

Masiyiwa responded warmly, tenderly, on his Facebook site…”You cannot imagine how appreciative we were of the gesture as even though we are the largest employer of our fellow citizens, it is the first time we have been publicly accepted by our own government.”

Few know the massive contribution Masiyiwa has made to the disadvantaged in Zimbabwe and he has educated thousands of Zimbabweans since he fought battles in court to establish his Econet mobile network 30 years ago.

Among the political leaders at that time, only opposition leader the late Joshua Nkomo backed him. Zanu-PF supporters believed they should not subscribe to Econet and supported the state’s mobile network, TelOne. But Econet is by far the most sophisticated, if the more expensive operator.

Via Econet, Masiyiwa and his associates launched Kwese, a network like Multi Choice, which is attracting many customers from the South African provider. Econet officials handed Chiwenga a Kwese decoder when he visited the company site at the fair in second city Bulawayo.

President Emmerson Mnangagwa’s administration, which has now cancelled indigenisation legislation except for platinun and diamonds and that would be open to negotiation, says Zimbabwe is “open for business.”

But the country faces massive cash shortages inside the country and has a chronic shortage of foreign currency for importation of goods. – IOL

NSSA, is being investigated by the Zimbabwe Anti-Corruption Commission.

THE Zimbabwe Anti-Corruption Commission (ZACC) is investigating at least two cases of corruption involving over $80 million at the National Social Security Authority (NSSA), The Financial Gazette can reveal.
This also comes amid swirling rumours that the Central Intelligence Organisation’s economic department had been mandated to review a new dossier alleging several cases of graft, including questionable investments of the pension scheme’s funds with a local bank, an allegedly incestuous commercial relationship between ousted former chairman Robin Vela and some market players, abuse of telecoms-sector monies to finance Telecel Zimbabwe activities and cronyism.

Read full story in The Financial Gazette paper

Finance and Economic Planning, Minister Patrick Chinamasa

A $153 million loan deal has been finalised with China for the development and upgrading of the Robert Mugabe International Airport.
Finance minister Patrick Chinamasa announced in the Government Gazette of April 27, 2018, that the loan, which carries an interest of two percent per annum, has a period of 20 years with a grace period of seven years in which no late fees will be charged, and late payment will not result in default or cancellation of the loan.

Read full story in The Financial Gazette paper

President Emmerson Mnangagwa

PRESIDENT Emmerson Mnangagwa’s government has promised to compensate displaced white commercial farmers by September this year.
The move, which is aimed at facilitating the country’s international re-engagement efforts and boost investor confidence, will see the new administration coughing up close to $9 billion for the misdeeds of former president Robert Mugabe’s regime.
Mugabe’s government dispossessed at least 4 000 white farmers under his controversial land reforms programme that was aimed at distributing farms to “landless blacks”, but  led to a massive slump in agricultural production.

Read full story in The Financial Gazette paper

Banking sector workers are demanding a 60 percent across the board increment premised on the outcome of our nationwide consultations.

BANKING sector workers are planning a demonstration in protest against the collapse of talks with employers over pay increases, The Financial Gazette has learnt.
A Zimbabwe Banks and Allied Workers Union memorandum directed to all members and signed by the union’s general secretary, Peter Mutasa, who is also the president of the Zimbabwe Congress of Trade Unions, said a deadlock at the National Employment Council for Banking had halted collective bargaining negotiations.

President Emmerson Mnangagwa

ABOUT 70 percent of State-owned companies have missed deadlines to submit operational reviews and other self-assessment plans because of bureaucracy and inefficiency, thus defying President Emmerson Mnangagwa’s order on key reforms across government, officials say.
The development also comes as the Harare administration has issued a sell-off plan for a number of loss-making firms and even drawn guidelines on how parastatal bosses are supposed to be remunerated, and conduct themselves under the recently-approved Public Entities Corporate Governance Bill.
Stuart Comberbach, the corporate governance secretary in Mnangagwa’s office, told an Institute of Internal Auditors meeting held in the capital that — out of 109 public entities — only 30 had submitted their internal review papers or discussion documents and this translates into a 28 percent return.

Read full story in The Financial Gazette paper

Hwange managing director, Thomas Makore

HWANGE Colliery Company plans to sell off Hwange Town to raise $300 million for a reboot of its operations and finally settle outstanding wages of $70 million, Parliament heard.

The miner remains in a precarious financial position after reporting a $43.84 million loss in 2017 compared to $89.91 million in 2016. Board member Ntombizodzwa Masuku, who was accompanied by chief executive Thomas Makore, told the Parliamentary Portfolio Committee on Mines and Energy on Monday that the Colliery requires $500 million to be able to operate at full capacity.

Masuku said the company has several assets in the town, including 5,000 houses occupied by workers, and former employees.

“We will approach the Ministry of Local Government to ask them to purchase the houses so that we clean our balance sheet to pay the creditors, while the workers will be given an opportunity to purchase some of the houses,” Masuku said.

“We have a plan to sell the town to the tune of $300 million and sell some of the houses because the company is in possession of 5,000 houses which we do not need and some of these houses are occupied by some of our former workers.”

Some workers would also be offered houses they were occupying in lieu of the salaries they are owed. The miner was spending $1, 8 million on salaries for its 2,045 workers every month but needs only about 1,000 employees with retrenchment a possibility, she added.

The last payment to workers was on April 25.

“Our hope is that once we reach our plant production levels we will be on the road to recovery because what we need is capital injection of $500 million and equipment.  We also owe government and we are faced with a lot of challenges in terms of maintenance of infrastructure because HCC is maintaining infrastructure like water, roads, the hospitals and others while other coal players are benefiting from the facilities but not paying anything,” said Masuku.

Among the problems faced by the company were legacy debts, frequent breakdown of equipment, and high production costs which were causing the company to fail to break even.

Hwange operates under a scheme of arrangement with creditors agreed to in May last year but is struggling to build financial resources to recapitalise operations. The company remain engaged over possible takeover of its Coal Gasification Company Coke Oven Battery by Chinese partners. – The Source

According to the court papers, the Zinara issue and arrangements could not be looked at or concluded without consideration of the “social and economic realities that companies were only surviving on alternatives supplies of hard cash where the government had failed to provide such relief or money”.

THE High Court has described Zimbabwe National Roads Administration (Zinara) chief executive Nancy Masiyiwa-Chamisa as “a liar”, in a recent judgment with far-reaching consequences on Zimbabwean industries’ operations in a foreign currency-starved market.
In the April 26th ruling, Justice Amy Tsanga not only acquitted five senior managers, including Simon Taranhike and Precious Murove, for allegedly fleecing the parastastal of $2 million, but also cleared some companies — mainly Access Finance and two others — from which some money had been sought to pay a foreign creditor.

Read full story in The Financial Gazette paper

Commercial lawyer Farai Mutamangira

IT IS common cause that African politics is a rough and tumble affair, which may even affect one’s social and commercial activities or interests — but commercial lawyer Farai Mutamangira seems to be bucking the trend.
Whether or not the young businessman was “framed into” the opposition National Patriotic Front (NPF)’s presidential-nomination saga, one thing is for certain: This might destabilise his business interests — ranging from mining, transport, airline and advisory services — in this epic David and Goliath 2018 political contest.
This is so when one considers that a large portion of Mutangamira’s legal work — and resume — was built on quasi-government jobs, especially the Chiadzwa diamond mining cases when Obert Mpofu was still Mines minister, his close relations with other key State actors including Savior Kasukuwere and representing the likes of Zimbabwe National Roads Administration.

Read full story in The Financial Gazette paper

British tycoon, Nicholas van Hoogstraten is the majority shareholder in CFI

… says 28 ZSE counters in breach of rules

THE war pitting CFI Holdings Limited and the Zimbabwe Stock Exchange (ZSE) has taken a dramatic twist with CFI querying its suspension from the bourse when 28 other counters were in breach of the same rules.
CFI was suspended on January 2 over several allegations including breaches of the bourse’s free float requirements and corporate governance deficiencies related to the appointment of non-substantive directors including the chief executive officer (CEO).
In a letter to ZSE dated February 22 obtained by The Financial Gazette, CFI acting chairperson Itai Pasi queried why the ZSE had not raised these issues when Stalap Investments was in control until November last year.

Read full story in The Financial Gazette paper

Former minister of Mines, and Mining Development, Walter Chidhakwa

PROPERTY tycoon Nicholas van Hoogstraten offered government about $65 million two years ago to buy the State out of troubled coal miner, Hwange Colliery Company Limited (HCCL), The Financial Gazette can report.
Exclusive details of the deal show that van Hoogstraten’s proposition flopped after government made a counter offer to instead buy out his Messina Investments.
The tycoon had proposed to assume a 10-year long free reign and rebuild the debt-ridden colliery, which has posted massive losses in the past few years.
He had undertaken to return government’s shareholding in about a decade, according to minutes of a two-day meeting held in October 2016 by HCCL’s major shareholders.

Read full story in The Financial Gazette paper

President Emmerson Mnangagwa

ZIMBABWE has lost nearly $17 billion in agricultural exports and production to land invasions since 2000, independent economist John Robertson says.
This disclosure comes as President Emmerson Mnangagwa’s government has been desperate to revive the sector through a cocktail of measures, including revision of land ownership laws, expansion of productive agriculture and recalling white former commercial farmers displaced during the chaotic agrarian reforms.
“To calculate the total loss incurred by the country… the $16,9 billion worth of production lost would only be the start (and) Zimbabwe became a net importer … from 1998 as most of the food-processing companies reduced output, then closed down when commercial farming suppliers went down,” Robertson said.

Read full story in The Financial Gazette paper