Thursday 25 May 2017
(New Zimbabwe 05/24/17)
Zimbabwe has run out of potatoes for making potato crisps, prompting a company in Southerton industrial area to approach government seeking an urgent import permit to buy potatoes from South Africa, as heavy rainfall affected local supply. Hanawa Super Foods, a potato chips company, made the appeal to the Industry and Commerce ministry on Monday, as it seeks to step up efforts to fill in gaps created by Statutory Instrument (SI) 64 of June 2016, which banned foreign made potato crisps. The company’s managing director, Simbarashe Zhou, told NewsDay after a tour of their facilities on Monday in Harare that they invested about $3 million into their business and as such desperately needed to import...
(Xinhuanet 05/24/17)
Entrepreneurs from East Africa on Tuesday called for increased investments in the power generation so as to develop a strong value-added manufacturing base in the region. Delegates participating in the second high-level East African Manufacturing Business Summit and Exhibition (EAMBS) held in Rwanda's capital city Kigali, said that heavy investments by both private and the public in the energy sector will enhance the production capacity of manufacturing industries in the region. Rwanda hosts the forum from May 23 to 25 dubbed; "Harnessing the Manufacturing Potential for Sustainable Economic Growth". It has brought together top executives in the manufacturing and agri-business sectors, policy and decision makers, as well as key financial institutions from Africa and beyond to dialogue and explore opportunities...
(News24 05/23/17)
"Massive" load-shedding could begin as early as next week in Zimbabwe - because the cash-strapped authorities still haven't settled an $80 million debt to Eskom, the Herald reports. The state-run Zimbabwe Electricity Supply Authority (Zesa) has been unable to keep up with a payment plan agreed upon with Eskom earlier this year. Now "frantic" efforts are being made to meet a May 31 payment deadline, Zesa boss Josh Chifamba was quoted as saying. Eskom's Matshela Koko has told Zesa supplies...
(Reuters (Eng) 05/22/17)
Countries in sub-Saharan Africa need to get their budgets in order, diversify their economies and look after their poorest people. If they do that, there is no reason why the region cannot have the strong growth needed to meet the aspirations of a young and growing population. That, at least, is the three-pillared prescription from the International Monetary Fund as expressed by one of its top Africa researchers, Celine Allard, in an official IMF blog post and podcast. Allard co-authored...
(Reuters (Eng) 05/19/17)
When rich countries wrote off billions of dollars of African debt in 2005, they hoped governments would think twice about borrowing again in costly foreign currencies. Over a decade later, most sub-Saharan African countries still rely on U.S. dollar-denominated debt to finance their economies. Some investors say this is sowing the seeds of future debt crises if local currencies devalue and make dollar debt repayments more expensive. Aside from South Africa and Nigeria, governments have not yet done enough to...
(News24 05/18/17)
The International Monetary Fund (IMF)is warning that excessive spending by President Robert Mugabe's government will worsen cash shortages and stoke inflation. The warning came as latest figures showed inflation rose to 0.48% in April up from 0.21% in March. "Excessive government spending, if continued, could exacerbate the cash scarcity, further jeopardise the health of the external and financial sectors, and, ultimately, fuel inflation," said Ana Lucia Coronel, who headed an IMF mission to the country this month. Hyper-inflation peaked in...
(The Herald Online 05/18/17)
Meikles Limited is set for an improved performance after reaching an agreement with Government over the Reserve Bank of Zimbabwe (RBZ) debt issue which has been outstanding for two decades. Mr Moxon told the company's annual general meeting yesterday that a resolution to the long standing dispute over the debt recorded during the Zimbabwe dollar-era had since been agreed to by both the Government and the group. "An agreement with Government has been reached following high level meetings between its...
(Bloomberg 05/18/17)
Steinhoff International Holdings NV plans to list its African assets separately as the acquisitive retailer seeks a new prize for shareholders following this year’s failed merger talks with Shoprite Holdings Ltd. The company said Wednesday it will seek to list businesses including clothing retailer Pepkor and furniture chain JD Group Ltd. on the Johannesburg Stock Exchange, about 18 months after moving its primary listing to Frankfurt from the South African commercial hub. The new business could be worth as much...
(The Herald Online 05/16/17)
Chinhoyi — Government is working on a plan to establish a gold reserve set to anchor the introduction of a local currency when the right time comes for the return to the Zimdollar, it has been learnt. This comes at a time when the country is grappling with cash shortages and economists believe the issuance of a gold backed local currency would help stimulate economic activity. Modelled around the $200 million Afreximbank facility, which is backing the current bond notes...
(Bloomberg 05/16/17)
When the impoverished West African nation of Niger imposed a ban on donkey exports last year, a small community of traders just over the border in Nigeria was devastated. “Before the ban, you could see thousands of donkeys here,” said Mohammed Sani, a 45-year-old trader in the Nigerian town of Jibiya, as he wiped the sweat off his brow. “Now look at them: there’s no more than 50, crippling the business.” Donkeys are being slaughtered at an alarming pace to...
(Bloomberg 05/11/17)
Delta Corp Ltd., Zimbabwe’s biggest company by market value, said full-year revenue fell 10 percent as consumers struggling for cash turned to cheaper brands of beer and sparkling wine. Sales declined to $483 million in the year through March, while net income slumped 13 percent to $69.9 million, the Harare-based company said in a statement on Wednesday. Volumes of lager and sparkling wine fell 7 percent and 11 percent respectively, while sorghum beer declined 3 percent after heavy rains limited...
(Financial Times 05/11/17)
Tourism minister tells South Africa that Marxism has had ‘dire consequences’. A Zimbabwean cabinet minister has warned South Africa against copying Harare’s disastrous land reform agenda. Zimbabwe collapsed into economic chaos after President Robert Mugabe implemented a land reform programme in 2000 that led to the seizure of white-owned commercial farms and the eviction of 5,000 mostly white farmers and 150,000 black farm labourers. This year President Jacob Zuma called for radical land reform in South Africa, abandoning “willing buyer,...
(AfricaNews 05/11/17)
The Swedish government has warned Zimbabwe against diversion of funds after it offered a $1.35 million dollar grant to boost its Culture Fund. Sweden’s head of development cooperation in Zimbabwe, Maria Selin said on Tuesday that they want to track their money wherever it goes. “We do want to see the results and we want to be able to track our investment and we need to know where the money is going,” she was quoted by local media New Zimbabwe...
(Voice of America 05/05/17)
As Africa grapples with a severe drought, and famine threatens millions of people, experts at the World Economic Forum on Africa this week in the South African city of Durban say food security needs to be a major part of discussions on advancing the continent economically. The annual World Economic Forum in Switzerland is usually a high-powered event, but at this week’s Africa meeting of the international organization, the continent’s big players are welcoming the humble farmer, now known as...
(AFP (eng) 05/04/17)
Zimbabwean President Robert Mugabe insisted on Thursday that his country is not a failed state and accused the US of being fragile because of its economic dependence on China. Mugabe pointed to Zimbabwe's 90-percent literacy rate to support his claim that the southern African country, which has battled economic chaos in recent years, is one of the best resourced on the continent. "We are not a poor country and we can't be a fragile country, I can call America fragile,...
(The Associated Press 05/04/17)
Zimbabwe President Robert Mugabe is denying his country is in a fragile state and insists it is one of Africa’s most developed despite its plunging economy. The 93-year-old was speaking Thursday at the Africa leg of the World Economic Forum. Mugabe, whose health has been weakening, declared that the country he has ruled since 1980 is the most developed on the continent after South Africa. The once-prosperous Zimbabwe now has a cash crunch so severe that livestock in some cases...
(Independent Online 05/04/17)
Zimbabwe has secured a massive loan to repay the World Bank and African Development Bank. The loan to pay off the debts was co-ordinated by Cairo-based Afreximbank. Last week Zimbabwe weekly, The Zimbabwe Independent said the loan was secured by Geneva-based fuel and commodity trader, Trafigura. Trafigura has denied this as has Zimbabwe's central bank governor, John Mangudya. He said he can't supply names of the lenders, but said they were "co ordinated" by Afreximbank. Harare business site, The Source...
(Xinhuanet 05/04/17)
The World Economic Forum (WEF) Africa Competitiveness Report 2017 released in Durban Thursday called for urgent policy reforms if the continent intends to create more jobs for its growing young population. According to the report issued at the 27th WEF on Africa, fewer than one-quarter of the 450 million new jobs required in the next 20 years will be created if current policies remain unchanged. The report called for structural reforms in the economies to create more jobs for the...
(Bloomberg 05/02/17)
Saudi Aramco is seeking to boost its fuel-trading volume by more than a third as the world’s biggest crude exporter expands its capacity to refine oil to grab a bigger share of growing markets in Asia and Africa. Aramco, as Saudi Arabian Oil Co. is known, is building refineries in the kingdom and in Asia to help it increase sales and purchases of gasoline, diesel and other products to more than 2 million barrels a day, said Ibrahim Al-Buainain, chief...
(The Financial Gazette 04/28/17)
Politicians and their cronies are taking advantage of an import ban on selected products meant to allow local manufacturers to recover to ship into the country the banned merchandise, which sources said were also evading duty payment. The move has meant that importers, who are bringing the products into the country under government-issued licences, are making huge profits from domestic sales. Some of the products include potato crisps, perfumes, powdered milk, cereals, cooking oil, soaps, as well as hardware products...

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