US AMERICAN R&B star Akon (pictured right) revealed he dreamed of visiting Zimbabwe “for a long, long time” as he arrived in Harare on Thursday for a weekend gig alongside Jamaican reggae star Sean Paul. They are expected to visit [...]]]> As Zimbabwe recovers from 10 years of economic and political meltdown many celebrities are visiting the country, recently popular American evangelist Joyce Meyer was in the country for some evangelistic crusades. Multi- national companies are also on the exodus to the once bread basket of Africa, last week Mcdonalds food restaraunts said they were planning to open some restaurants in Harare.

US AMERICAN R&B star Akon (pictured right) revealed he dreamed of visiting Zimbabwe “for a long, long time” as he arrived in Harare on Thursday for a weekend gig alongside Jamaican reggae star Sean Paul. They are expected to visit the amazing Victoria Falls afterwards. Akon said: “I think there have been a lot of misconceptions about a lot of places in Africa. But when you land in these places, you never really see what they are talking about.

“You never get to see the misconceptions that are as far as the place being undeveloped … As far as I can see, Zimbabwe is a beautiful place and I haven’t seen anything that contradicted the positive things that I have heard before.”

Mupfurutsa, a popular local singer and music producer, said: “To us, it’s a dream come true to have such an accomplished musician who is right at the top of his game to visit the country.

“Believe it or not, he is not here for the cash but for the bash; not for the money but for the honey. I am so excited that he accepted our invitation and he came here together with his friends.”

(newzimbabwe)

With the local market facing persistent cash shortages, many companies have failed to raise funds for re-capitalisation via traditional means including bank loans and external lines of credit. Although illiquidity has persisted, there have been signs that it could ease by the close of 2010.

Imara Asset Management, for instance, notes that there has been a slight improvement with regards to interest rates in [...]]]> THE half-year performance by a number of Zimbabwean companies is indicative of a re-bounding economy, despite the persistent liquidity crunch in the market that has constrained enhancement of the local industry’s productive capacities. (Zimbabwe capital Harare pictured)

With the local market facing persistent cash shortages, many companies have failed to raise funds for re-capitalisation via traditional means including bank loans and external lines of credit. Although illiquidity has persisted, there have been signs that it could ease by the close of 2010.

Imara Asset Management, for instance, notes that there has been a slight improvement with regards to interest rates in the country.

“There appears to be a definite easing of liquidity in the market as determined by interest rates. Where interest rates had previously been in the 30 to 45 percent per annum range for certain borrowers these have now fallen to between 10 to 20 percent per annum,” it says.

An improvement in the availability of cheap funds from banks operating in the country is fundamental to the extent that it acts naturally to boot high lending rates, which improves the flow of liquidity in the market.

The economy, however, still remains trapped in various other bottlenecks including power shortages, high tariffs and utility charges, which have somewhat stagnated local industry’s capacity utilisation averaging at between 35 to 40 percent.

Nevertheless, some companies have made significant headway in terms of their operations despite the illiquidity to post impressive performances within the first half of 2010.

Zimbabwe Platinum Holdings, the country’s largest producer of platinum, swung back to profit this year after its production of Platinum Group Metals almost doubled.

The platinum miner said after tax profit for the year-end to June this year soared to US$122 million after posting a US$25 million loss during the same time last year, rendering it one of the most profitable companies in Zimbabwe in the period.

During the same period Dairibord Holdings registered a 93 percent improvement in turnover to US$31,3 million, and an after-tax profit of US$2,8 million.

Agricultural implements concern Zimplow Limited posted US$3,4 million in revenue during the six months to June 2010 and its attributable profit for the period amounted to US$312 464 and proposed to re-capitalise its Strategic Business Units.

Delta Corporation’s turnover rose 54 percent to US$101 million during the second quarter of this year. The company indicated that it was investing US$160 million in new bottling lines, glass packaging and the boosting of its mothballed plant in the upcoming three-year period in anticipation of increased demand of its beverages.

BancABC (Zimbabwe) posted a US$4,2 million profit during the first half of 2010 this year.

Seed Co Limited reported impressive results for its full year to March 2010.

Turnover increased 43 percent to US$77 million with good contribution from all operations. Zambia continued to dominate contributing 34 percent, followed by Zimbabwe with 30 percent, then East Africa and Malawi.

However, prevalent market fundamentals have compelled the businesses to exercise financial prudence as the majority have chosen not to declare dividends, preferring to consolidate on the gains and re-capitalise their operations.

The majority of Zimbabwe Stock Exchange-listed companies are yet to release their financial statements for the first six-month period.

The Zimbabwean economy is picking up, albeit gradually, as the recent slow-down in annual inflation testifies.

“The year-on-year inflation rate (annual percentage change) for the month of July 2010 as measured by the all items Consumer Price Index stood at 4,1 percent, shedding 1,2 percentage points on the June 2010 rate of 5,3 percent,” noted the Zimbabwe National Statistical Agency recently.

There have also been significant transformations with regard to other economic rudiments.

For example, Government revenue figures for 2010 have continued on a growth path. Revenue for the first quarter of the year of US$411,5 million was 29,5 percent ahead of the financial plan.

Government expenditure was also ahead of budget by 13,5 percent at US$386 million.

Re-capitalisation drives by key industry players is set to augment capacity utilisation and boost economic growth in the remaining months of 2010.
(herald.co.zw)

The Zimbabwe Diamond Technology Centre, which is being constructed by Canadile miners, one of the three firms operating in Marange, is set to become operational within six months. Faber Chidarikire, governor for Mashonaland West province said the diamond industry was set to revive the country’s economic woes.

“The ailing country’s economy shall be revived through the proceeds, marketing rates, making life easy for the minister of finance (Tendai Biti),” Chidarikire said. Early this [...]]]> MOUNT HAMPDEN, Zimbabwe (AFP) – A diamond firm operating from Zimbabwe’s Marange diamond fields has begun constructing a multi-million dollar cutting and polishing centre in the country, officials said Tuesday.

The Zimbabwe Diamond Technology Centre, which is being constructed by Canadile miners, one of the three firms operating in Marange, is set to become operational within six months.
Faber Chidarikire, governor for Mashonaland West province said the diamond industry was set to revive the country’s economic woes.

“The ailing country’s economy shall be revived through the proceeds, marketing rates, making life easy for the minister of finance (Tendai Biti),” Chidarikire said. Early this month, Zimbabwe resumed trading of Marange diamond sales since international regulators partially lifted a ban imposed after the military seized control of the mines.

The sale generated about 30 million US dollars, according to government figures. Upon completion, the centre is expected to create 7,000 jobs. Cougan Matanhire, chairman of Canadile miners said the centre would funnel all the rough diamond streams of Zimbabwe into one professional and high security area.

“This is the centre where we will transform rough diamonds into polished diamonds,” Matanhire told delegates who attended the launch. A Belgian, diamond expert, Filip Van Laere said Marange fields could produce 40 million carats annually.

Once fully completed, the 20 million US dollar centre will have among other things banks, a diamond college and insurance firms. In January, diamond watchdog Kimberley Process halted the sale of stones from Zimbabwe’s eastern Marange diamond fields after documenting military abuses against civilians.

The Zimbabwean government reacted by imposing a blanket ban on the export of
diamonds until the Kimberley Process gave its Marange diamonds a clean bill
of health.
(AFP)

In addition the Zimbabwe government will also contribute 20 million dollars to the joint loan facility which will be disbursed through banks to small and medium scale companies.

Prime Minister Morgan Tsvangirai said the loan will help the country revive its [...]]]> ZIMBABWE has secured a 50-million-dollar loan facility from the Africa Export Import Bank to revive help revive the country’s agriculture and manufacturing industries, the bank said Monday.”The purpose of the revival fund is to resuscitate a broad range of firms in the productive sector especially in agriculture and manufacturing by providing medium-term funding,” Gift Simwaka, an official of the bank, said.

In addition the Zimbabwe government will also contribute 20 million dollars to the joint loan facility which will be disbursed through banks to small and medium scale companies.

Prime Minister Morgan Tsvangirai said the loan will help the country revive its economy. “The facility was established to curtail the challenges of high interest rates, unequal distribution of lines of credit … limited lines of credit and lack of financing within the economy,” Tsvangirai said.

“While this facility represents a positive development it alone cannot address economic challenges that face Zimbabwe.”

Zimbabwe’s economy, which has been facing difficulties over the last years, is slowly recovering after the formation of a unity government by President Robert Mugabe and Tsvangirai in February 2009.

The unity government off-loaded the worthless Zimbabwe dollar introducing multiple currencies such as the US dollar into the economy.

The unity government has been battling to secure lines of credit from international banks but no major loans have been secured.

Finance Minister Tendai Biti ( pictured) said the “lack of capital” has been “one of the major structural bottlenecks bedevilling” the country’s economic turn around.

(newzimbabwe.com)

Biti told a meeting of the Institute of Chartered Accountants of Zimbabwe in the resort town of Victoria Falls that it was likely the Zimbabwe dollar would not be brought back into circulation. “We have said the currency regime will only be looked after 2012.

“The debate is then what happens after 2012. It will depend more on regional integration as you know that respective states are [...]]]> Zimbabwe’s finance Minister Tendai Biti says the existing multiple currency regime will stay in place until 2012 when it is likely to be replaced by a single currency for the Southern Africa Development Community (SADC).

Biti told a meeting of the Institute of Chartered Accountants of Zimbabwe in the resort town of Victoria Falls that it was likely the Zimbabwe dollar would not be brought back into circulation. “We have said the currency regime will only be looked after 2012.

“The debate is then what happens after 2012. It will depend more on regional integration as you know that respective states are working towards integration and the possibility of using a single currency,” he said. However the regional block says it hopes to achieve monetary union in 2016 and implement a single currency by 2018.

The country abandoned use of the virtually worthless Zimbabwe dollar in 2009 opting for more stable currencies such as the South African Rand, the Botswana Pula and the United States Dollar.

The decision helped end years of hyperinflation and reverse a decade-long economic decline.
Still, the coalition government appears divided over the issue with members of President Robert Mugabe’s Zanu PF insisting on re-introducing the Zimbabwe dollar while the other coalition partners argue that the country’s economy has not recovered sufficiently.

Meanwhile Biti also confirmed that the debt-ridden Reserve Bank of Zimbabwe would sack at least 2000 employees from its bloated workforce as part of efforts to streamline its operations. The bank’s staff complement rose from under 1000 to 2600 over the last few years as the institution printed money for various quasi-fiscal operations that included provision of direct funding to nearly all economic sectors.

Critics claim these activities helped stock inflation while the bank insists they prevented the country’s total economic collapse.

Biti also said the government would not take over the bank’s US$1.1 billion debt until the legal requirements were satisfied adding the matter was being discussed by the coalition principals.

“Legally, the Government cannot just inherit the debt. It will be against the law, and what it means is that there has to be a legal instrument put in place by an Act of Parliament,” he said.

President Mugabe recently invoked the presidential powers temporary measures legislation to bar the seizure of bank assets by companies owed various sums the institution.

(newzimbabwe.com)

“We are going to re-open. We think Zimbabwe is going to be fantastic economy in five years time,” said outgoing CEO Simon Susman. “We are negotiating leases with shopping centres … I want to go up and start trading within the next 18 months.”

The chain used [...]]]> Woolworth Stores (pictured) one of the oldest retail shops plans to re-open its stores in Zimbabwe capital Harare. The clothing and food retailer wants to open up a store within 18 months to take advantage of a recovering economic and political environment in the country which has seen investors eyeing the once breadbasket of Africa.

“We are going to re-open. We think Zimbabwe is going to be fantastic economy in five years time,” said outgoing CEO Simon Susman. “We are negotiating leases with shopping centres … I want to go up and start trading within the next 18 months.”

The chain used to have a branch in Harare’s First Street Mall in the building now occupied by Kingdom Bank. Reports suggest the company among several to have taken up space at the recently completed Joina Centre, Harare’s largest commercial building.

A number of global chains, including McDonalds have indicated interest in moving into Zimbabwe, attracted by the country’s improving economic prospects.

The decision to ditch the Zimbabwe dollar, primarily helped end the hyperinflation experienced over the last decade while political tensions have also eased since the formation of the inclusive government.

Meanwhile, Susman said the group, which also operates in Lesotho, Namibia, Botswana and Swaziland, was looking at opportunities in the east African countries of Kenya, Uganda and Tanzania as part of its Africa expansion plan.

(newzimbabwe.com)

He said most of Zimbabwe’s top hotels, particularly those in Victoria Falls, were fully booked by foreigners up to mid-September. Dr Maunganidze said indications were that the tourism sector would surpass the projected 12 percent contribution [...]]]> As Zimbabwe recovers from the 10 years of economic and political problems it’s tourism sector has raked in over US$350 million in the first half of the year and is projected to surpass the target of three million tourist arrivals before year-end. Tourism and Hospitality Industry Permanent Secretary Dr Sylvester Maunganidze told The Herald yesterday that hotel bookings had vastly improved and surpassed Government projections.

He said most of Zimbabwe’s top hotels, particularly those in Victoria Falls, were fully booked by foreigners up to mid-September. Dr Maunganidze said indications were that the tourism sector would surpass the projected 12 percent contribution to the country’s Gross Domestic Product by 2012.

“Before the end of July, the tourism sector raked in US$360 million and we are expecting to double that by year-end. Despite the vilification of Zimbabwe by the Western media, tourists know that Zimbabwe is endowed with good tourist sites and have defied all odds of travel bans by some Western countries.

“We are on the rise and probably by December we will be sitting on the same level we were in 1998 — recording plus or minus three million tourist arrivals.

“At least two British planes are landing in Victoria Falls daily and tourists are now making Zimbabwe their destination of choice,” he said.

Zimbabwe plays host to Victoria Falls, one of the Seven Wonders of the World and a World Heritage Site, over and above other sites such as the Vumba and Nyanga mountains in Manicaland, the Great Zimbabwe Monument in Masvingo and Lake Kariba.

Dr Maunganidze said apart from the traditional European visitors, the country was also receiving an influx of tourists from Brazil, Argentina and Mexico.

He said a combination of factors — including “sterling efforts” by the Zimbabwe Tourism Authority — had contributed to the dramatic upturn in the sector.

Dr Maunganidze said Zimbabwe had taken full advantage of being on the United Nations tourism body to market the country.

“After almost 10 years in the wilderness, Zimbabwe was readmitted in the family of international tourism and we were voted in the United Nations World Tourism Organisation executive council.

“We now have access to tourism meetings in countries that have imposed sanctions on us and we are taking advantage of that to repackage, rebrand and market the country as a safe tourism destination,” he said.

The UNWTO executive council executes the body’s policies and decisions through various programmes and activities.

Zimbabwe sits on the council until 2013.Dr Maunganidze said Zimbabwe won the 2010 Regional Tourism Organisation of Southern Africa chairmanship and was maximising on that opportunity as well.

He, however, expressed concern over the behaviour of some “unscrupulous” operators in the sector who were not remitting the tourism levy to the Government.

He warned all companies that the law would descend heavily on those who breached it.

“ZTA is empowered to sue all those who evade remitting. Hotels are only agents who collect the 2 percent levy on behalf of the ZTA,” he said.

There is, however, a mismatch between head counts and bank accounts, raising suspicion that some firms are under-declaring their revenues to evade paying levies.

Zimbabwe’s tourism industry declined over the past decade due to negative publicity by the Western media.

This was in response to Harare’s revolutionary agrarian reforms that saw nearly 300 000 black families benefiting from land previously held by just 6 000 white farmers.

This saw some Western countries issuing travel warnings to their citizens, advising them against visiting Zimbabwe. However, concerted efforts by the Government have seen the sector rebounding.

Zimbabwe withdrew from Test cricket in 2006 and were subsequently admitted to the Intercontinental Cup on the understanding that Zimbabwe XI’s four home games would be played at neutral venues. But along with the relative political stability in the country, Zimbabwe Cricket has worked [...]]]> Ireland’s trip to Zimbabwe has been confirmed, and in addition to the Intercontinental Cup match against Zimbabwe XI, three one-day internationals between the senior national teams have been arranged. All of the games will take place in Harare, with the four-day fixture starting on Monday September 20. The ODIs follow on September 26, 27 and 30.

Zimbabwe withdrew from Test cricket in 2006 and were subsequently admitted to the Intercontinental Cup on the understanding that Zimbabwe XI’s four home games would be played at neutral venues. But along with the relative political stability in the country, Zimbabwe Cricket has worked hard to improve its structures after divisive squabbling between players and administrators had wrecked cricket in the country.

There had been some speculation as to whether Ireland would make the trip at all, and for a time there had been a possibility that the Intercontinental Cup fixture would take place in South Africa. But both Kenya and Afghanistan recently played their Intercontinental Cup matches in the country, and Zimbabwe also hosted Sri Lanka and India in a one-day tri-series in June this year, so the pressure on Ireland to make the trip was always going to be immense. Now that their tour has been confirmed, it is almost certain that Scotland – who are scheduled to play Zimbabwe XI in the middle of October – will also make the trip.

Zimbabwe XI are currently in third place behind Afghanistan and Scotland in the Intercontinental Cup having drawn against Afghanistan and beaten Kenya, Netherlands and Canada. Ireland are fifth on the points table after draws against Scotland and Kenya and a loss to Afghanistan at Dambulla.

(cricinfo.com)

A local group in Zimbabwe THE Affirmative Action Group has struck a deal with the Zimbabwe Diamond Technology Centre to cut and polish diamonds. Under the agreement, AAG has been offered 10 units from which to operate as part of efforts to involve indigenous entrepreneurs in the lucrative diamond sector.

“AAG being a major player in the advancement [...]]]> HARARE — The Zimbabwe government recently received US$30 million from two diamond operating companies in the country, the companies are Canadile and Mbada diamonds, the two firms currently operating at the diamonds fields of Marange which is few miles from the capital Harare.

A local group in Zimbabwe THE Affirmative Action Group has struck a deal with the Zimbabwe Diamond Technology Centre to cut and polish diamonds. Under the agreement, AAG has been offered 10 units from which to operate as part of efforts to involve indigenous entrepreneurs in the lucrative diamond sector.

“AAG being a major player in the advancement of black economic empowerment, has specifically been invited to identify groups of people to be formed into consortiums for purposes of establishing companies that will occupy some of the units meant for cutting and polishing diamonds.

“AAG has established a firm working relationship with ZDTC. Both parties share a common vision and belief, especially in relation to the empowerment of the indigenous people. said AAG executive director Dr Davison Gomo

ZTDC has reserved room for indigenous people to be active participants in the value addition and beneficiation activities to take place at the centre. Dr Gomo added that AAG could secure more units.

“We are excited that our people have a chance to get into an area that was dominated by foreign companies,” he said, adding that there was limited capacity in terms of units available for cutting and polishing diamonds but opportunities would arise in other areas of precious minerals and more people would be absorbed into the industry.

The construction of the Diamond Park has already started and stakeholders have moved a gear up to avoid bottlenecks and last minute arrangements to value add the mineral.

Dr Gomo said this opportunity must be open to all Zimbabweans — women, the youth, war veterans, Aids orphans, disabled groups and AAG membership.

The Diamond Centre has already committed itself to setting up a Diamond Training School and plans are already at an advanced stage.

This development makes Zimbabwe a special case because no other African country has such a school except for South Africa.

The school is expected to play a major role in creating the skills and knowledge base needed to advance the case for deeper beneficiation and value addition in Zimbabwe.

Government is on record calling for a strong value addition base in the diamond industry to compete with the rest of the countries currently dominating this sector of commercial activity.

Gems from Zimbabwe are expected to contribute about 25 percent of the international diamond market.

(herald.co.zw)

“We still believe that we can meet the target of 15 percent because we are currently at 6.5 percent. Come 2014 we should have reached the 15 percent mark. “We got a lot [...]]]> THE tourism sector is on course to contribute 15 percent towards the national Gross Domestic Product by 2014, the Ministry of Tourism and Hospitality Industry has said. Deputy director of the tourism directorate in the Ministry of Tourism and Hospitality Industry Mr Douglas Mavhembu expressed optimism that Zimbabwe would be able to meet the set target as result of the number of platforms that have been set.

“We still believe that we can meet the target of 15 percent because we are currently at 6.5 percent. Come 2014 we should have reached the 15 percent mark. “We got a lot of benefits from the 2010 World Cup that was held in South Africa.

“A lot of tourists came to Zimbabwe and there are a lot of activities that are going on in Victoria Falls, for instance,” he said. Mr Mavhembu added that of the funds allocated to the ministry in the 2010 national budget, they had only received US$400 000, which was not enough for them to do a total refurbishment of the sector.

The funds are inadequate hence they have started to look for other means that can help sustain the tourism sector until the next budget. Mr Mavhembu appealed to the private sector to contribute to the development of the economy by marketing Zimbabwe as a safe tourist destination.

Currently the tourism sector is facing a number of challenges especially limited financial resources to improve the product that is available. Zimbabwe Tourism Association spokesperson Mr Sugar Chagonda said: “We are promoting Zimbabwe as a MICE (Meeting-Incentives-Conference-Exhibition) destination, which is capable of holding international conference meetings and exhibitions.

“Zimbabwe participates in five major shows that are held throughout the year. “These are the Indaba Expo in South Africa in May, International Tourism Bourse in Germany in November, China International Travel Mart in China in November, Japan Association of Travel Agents in September, and the World Travel Market in London in November.

“All of these are to market Zimbabwe as a safe tourist destination and to attract foreign investors.” Mr Chagonda said that the Celebrity Host Programme was also a marketing tool to change the negative perception of Zimbabwe and an image builder. Zimbabwe is currently chairing the Regional Tourism Organisation of Southern Africa, and is set to host the prestigious 2011 Integrated Resorts Tourism Conference.