The AXiS LXX

Curtains unfold on WestProp Units 7&8 to relieve electricity woes The changing world order NMB digital transactions surge ................................................................................... ................................................................................... ................................................................................... ................................................................................... ................................................................................... #Issue: LXX Reserve Currency Shift Is Zimbabwe prepared? 

The equityaxis.net @equity axis @equity axis zimbabwe @equity axis @equity axis @equity axis 08677 197 791 @ aaronc[at]equityaxis.net EQUITY AXIS Financial Insighs at your finger�ps CONTENTS The AXiS LXX 07 April 2023 In Focus 15 16 17 18 19 8 9 10 11 12 4 5 6 The Search for a New Reserve Currency : The Search for a New Reserve Currency West Proper�es Company: Curtains Unfold on Massive Developer The Changing World Order : How BRICS’s Gold-backed Currency Will Topple the Greenback Economic News and Analysis Markets Guest Column World News Capital Markets 22 25 24 26 13 Hwange Units 7 & 8 : To Relieve Pressure on Electricity Imports As Concerns for Renewable Energy Roar Digital Nomadism : Could Zimbabwe Favour Interna�onal Nomads? Zimbabwe Food Prices Face Rising Local Headwinds : Zimbabwe Food Prices Face Rising Local Headwinds Zim's Growing Poverty Line : Unveiling the Devasta�ng Impact and Urgent Policy Solu�ons Gamifica�on In Finances : Prospect for Gaming in Zimbabwe's Banking Sector TSL Zimbabwe Limited: Diversifica�on Anchors Gains Turnall Holdings Limited : Profitability Sinks in FY’22 Masimba : Posts Solid 2022 Financial Performance NMB Bank Limited: Sees 216% Surge in Digital Transac�ons in 2022 First Mutual Proper�es: Net Property Income Dips by 76% Stanbic Bank : Bo�omline Soars by 180% for FY’22 Bridgefort Capital :A Year Capped by Tremendous Losses Business around the world Poli�cs around the world Regional Economic watch Markets Watch Weekly Commodi�es Pulse ZSE Weekly Financial Markets At a Glance 20 21 27 The Cover Page 7 Page 12 Page 17 Deteriora�ng Economy: What to Expect When Authori�es Are Out of Touch with Reality? ZSE ASI 37,720.92 37,962.05 38,568.48 38,180.00 38,306.84 38,349.31 1.67% VFEX ASI 95.17 92.04 92.04 91.58 91.32 91.27 -4.10% ZSE MEDIUM CAP 76,148.77 75,726.76 75,307.75 76,227.10 76,743.63 77,322.65 1.54% ZSE TOP 10 22,323.61 22,543.87 23,081.98 22,687.54 22,738.07 22,721.02 1.78% ZWL INTERBANK 928.5887 929.1243 929.8618 932.4874 936.1228 944.7133 -1.71% ZSE SMALL CAP 697,921.97 697,921.97 697,921.97 697,715.23 697,715.23 667,752.24 -4.32% Curtains unfold on WestProp Units 7&8 to relieve electricity woes The changing world order NMB digital transactions surge ................................................................................... ................................................................................... ................................................................................... ................................................................................... ................................................................................... #Issue: LXX Reserve Currency Shift Is Zimbabwe prepared? 

4 The AXiS LXIX Friday 30 Mar 2023 The Search for a New Reserve Currency Global Currency Conundrum as US Dollar Hegemony Disintegrates 5% of the world’s reserve currency is US dollar-denominated, making the US dollar 6the primary reserve currency for most of A multipolar forex reserve order Zimbabwe’s growing ties with China favour a bias in reserve currency towards China. It is likely that with increased Chinese investment in the country and the growing reliance on Chinese institutions for funding, a yuan reserve can be built much more quickly. These reserves may help reduce pressure on dollar demand, assuming Zimbabwe retains a dollarized economy into the foreseeable future. If dollarisation is to end before the Yuan becomes a reserve currency, Zimbabwe could still benefit given its increasing exposure to Chinese debt. Further, the shift will likely cause a decline in the value of the US dollar, which would typically deflate foreign debt currently sitting at US$20 billion. The country may not have to wait that long to clear the debt given that most of it is in arrears and hampering new money. However, the portion of Zimbabwe’s exports to China remains lowcompared to Europe and the rest of the world. How currencies achieve reserve status Achieving reserve currency status isn’t a formal process. Instead, it’s like winning a popularity contest. The most popular currency for global trade and cross-border commerce emerges as the de facto reserve currency. The “popularity” of a currency is simply based on the perception of security and resilience of the issuing country. This is the asset or currency that most central banks across the world prefer to hold in reserve, which is why the dominant asset earns the label of “reserve currency.” Since 1450, there have been six major reserve currency periods. Portugal dominated the global reserves until 1530 when Spain became stronger. Currencies issued by the Netherlands and France dominated world trade for much of the 17th and 18th centuries. But the emergence of the British Empire made the pound Sterling the reserve currency until the end of the First World War. The U.S. dollar displaced the pound just as America gained economic superiority over Britain. More than 75% of global transactions have been completed in U.S. dollars since 2008. The dollar also accounts for more than 60% of foreign debt issuance and 59% of global central bank reserves. Although the dollar’s grip on all these markets and instruments has been gradually declining in recent years, no other currency comes close to these levels. The Chinese renminbi certainly isn’t aviable alternative, but geopolitical and macroeconomic trends support its rise to dominance . While these matrices show a lagging China, the sheer size of the Chinese economy, its growth trajectory and its capital market activities suggest its share of global reserves will steadily increase into the foreseeable future. Its GDP at US$18 trillion, is second only to the USA. In 2022, Chinese leaders made it clear that they wanted to boost the Yuan’s profile as a reserve currency. China’s economy and trade flows are large enough to support such a move. However, the country now needs to convince foreign central bankers to start holding the Chinese Yuan in reserve. In July 2022, The People's Bank of China announced a collaboration with five nations and the Bank for International Settlements to achieve this. China, along with Indonesia, Malaysia, Hong Kong, Singapore, and Chile would each contribute 15 billion yuan, about $2.2 billion, to the Renminbi Liquidity Arrangement. Morgan Stanley, a US Investment Bank has predicted that the share of Yuan forex reserves will increase to about 10% by 2030, from the current 3%, while a survey by UBS revealed that 85% of Central Banks are invested or are considering investing in Chinese Yuan. Further, the survey revealed that foreign exchange managers at central banks are on average looking to hold 5.8% of their reserves in the yuan in 10 years time, up from 5.7% last year. That would be a sharp increase from the 2.9% level the International Monetary Fund reported. All these statistics show a movement which at some point in future is likely to see a major shift. This fundamental shift is not likely, until at least 2050. However, what do all these developments mean for a country such as Zimbabwe? Zimbabwe is currently grappling with an economic crisis. While GDP is recovering, the margins are still very narrow and the downside risks of inflation and exchange rate depreciation are very high. The country capped 2022 with an inflation outturn of above 100% while its local currency plummeted by about 86% on the official market. Zimbabwe does not have officially tabulated reserves of forex and this is because of years of economic decline which dried up the coffers. Further, while the Balance of Payments is now positive, trade statistics show sustained deficits, which puts pressure on forex availability in the economy. The country has barely attracted an average of US$200 million per annum worth of foreign direct inflows, over the last 10 years and foreign contribution to total flows on the stock market has diminished to less than 10% from 60% in 2015. The country however has improving FCA balances now running above US$2 billion, with real cash being in the region of US$900 million. the world. The greenback has been a reserve currency since 1944 following the abolishment of the gold reserve system post the 2 nd world war. Foreign exchange reserves are used to protect domestic currencies and to deploy at times of crisis. A depletion of Zimbabwe’s foreign currency reserves resulted in the country’s inability to deal with a decade-long economic crisis (1998-2008). The RBZ said it is slowly rebuiling its foreign currency reserves as well as gold reserves. A recent development in Russia, which is under sanctions from Western countries for its invasion of Ukraine, has however brought to the fore the issue of the sustainability of the US dollar as the world’s primary reserve currency. Essentially, adopting a particular currency as a reserve currency increases demand for the specific currency and its value with it. For the US, the fact that dollar demand has been very high given countries’ need to shore up reserves, currency downside has been minimal. As is common in economics, the value of a currency is determined by the forces of supply and demand. With changing global geopolitics and the economic rise of China, markets are considering the possibility of dethroning the US dollar as a reserve currency and its possible replacement by the Chinese Yuan or an alternative of two competing reserve currencies. The Chinese yuan became the most traded currency in Russia in February 2023, overtaking the US dollar, for the first time. Data from the Moscow Stock Exchange showed that in Febru- ary, most transactions on the stock market were yuan-denominated, with the margin widening in March. Russia’s energy exporters are increasingly getting paid in yuan. Russia’s sovereign-wealth fund, a war chest to support government spending burdened by battlefield costs in Ukraine, is using the Chinese currency to store its oil riches. Russian comp nies have borrowed in yuan and households are stashing savings in it. In isolation, this data suggest a preference for the Yuan ahead of the Dollar, but Russia is not the entire world. A bird’s eye view shows that only 3% of global trade is conducted in Yuan while the Yuan accounts for 2.19% of global payments. On global forex transactions and reserves held by foreign banks, the Yuan accounts for only 3.5% and 2.8% respectively. Comparatively the US dollar and Euro account for 60% and 20% of global forex reserves.

bourse, Victoria Falls Stock Exchange (VFEX) on the 29th of April, 2023, as a fresh listing which seeks to raise US$30 million on its Initial Public Offering (IPO). WPC also intends to be the first real estate company to list on VFEX assuming African Sun delays its listing. However, fresh details have emerged, post the prospectus, that would challenge the success of WPC’s listing. According to its prospectus, WPC seeks to raise US$30 million on IPO through the issuance of 1 million ordinary shares at US$10 per share, which aggregates to US$10 million, along with the issuance of 5.4 million redeemable preference shares at US$5 per share, which sums up to US$27 million. The Company alleges, through the IPO, it seeks to raise capital to finance projects which have been specified as the Pokugara Residential Estate, Millennium Heights, Pomona City, The 1 Mall of Zimbabwe, Millennium Heights Office Park and the Hills Golf Estate. However, while details of how the Company will be able to generate value going forward, which assumes the projections, are based on a qualified going concern, the prospec- tus failed to indicate threats to the operations of the Company, which can be interpreted as a way to mislead potential investors, and against the listing rules in Zimbabwe. According to Bulawayo24, WPC understated the number of active court cases pending against it in its prospectus, which have the potential to wipe out the entire company’s assets. The Com- pany has active litigations which, according to normal standard practice, should have been disclosed in the Notes to Financial Statements as contingent liabilities, or at the very least be indi- cated in the prospectus as they hold enough water to wipe out the anticipated investments. Accord- ing to listing rules, before listing or intending to do so, a company must indicate if there is any pending litigation that may have a bearing on its going concern. Litigation is a legal process that involves a dispute between two parties, and it can be costly and time-consuming. When a company is facing litigation, it means that it is being sued or has been accused of wrongdoing by another party. In its prospectus issued on the 28th of March, 2023, WPC’s lawyers, Scanlen & Holderness, listed four completed cases, three outstanding summons and three pending cases in its legal advisor’s report. The finalised cases listed were HC 4544/20 George Katsimberis vs Ken Sharpe & Others, SC 636/22: REF HC 425/21 & SC 229/22 Allan Markham vs Augur Investments & 7 Others, SC 382/22 REF HC 549/21 Zimbabwe Homeless People’s Federation vs City of Harare & 8 Others and the HC 6212/22 Sunshine Devel- opments vs Warren Hills Golf Club. The outstanding summons were HC 3809/20- b) HC 3810/20- c) and HC 3811/2, while HC 3809/20 George Katsimberis vs Ken Sharpe, Kilimanjaro Trust & 3 Others, HC 3810/20 George Katsim- beris v Ken Sharpe & 7 Others and HC 3811/20 George Katsimberis vs Ken Sharpe & 2 Others and ACC 26/21 Borrowdale Residents & Rate- payers Association & Others vs. City of Harare & Others were listed as pending cases. Mean- while, the case of Giorgios Katsimberis v Prose- cutor General & Others, HC 5623/22 was missing from the list of cases, and all pleadings have been filed and the parties are waiting for a hear- ing date. The missing case could not have been mistakenly omitted given the magnitude of impact it holds against the Company. If anything, it would have been deliberately omitted from the prospectus. The missing case involves Katsimberi who is seeking a declaratory order invalidating the deed of settlement signed between the local government minister (July Moyo), the City of Harare and Augur Investments. Augur Investments is a company owned by Ken Sharpe (CEO of WPC), and it was the beneficiary of the deed of settlement. The deed of settlement gifted all the land that is in WPC’s portfolio to Augur. If the case is settled in favour of Katsimberi, WPC risks losing its entire land portfolio, which is the very basis of seeking funding through the IPO for devel- oping the land. Listing a company that is facing litigation can have significant effects on the company's reputation, finan- cial stability, and overall business operations. One of the most significant effects of listing a company that is facing litigation is on its reputation. A company's reputation is crucial to its success, and any negative publicity can harm its brand image. When a company is facing litigation, it may be perceived as untrustworthy or unethical by customers, investors, and other stakeholders. This negative perception can lead to a loss of busi- ness and revenue for the company. Given the Compa- ny is still battling to gain confidence for the success of the very first IPO on VFEX, as well as having a commonly known controversial CEO, WPC needs to act fast to evade the impact of this new development on its success if it ever succeeds in the listing. In 2021, WPC and Augur Investments were implicat- ed in a court case regarding the Airport Road project entered into with the government and Harare City Council. Despite the outcome of the case, the contin- ued name-dropping of the same companies tends to have a negative bearing on reputation. In 2020, WPC had a court case with Fairclot Investments over allegations of litigation pertain- ing to Pomona City Housing Project. This chain of litigations over the same cases can negatively weigh on investor sentiment before the IPO kicks off. Another effect of listing a company that is facing litigation is on its financial stability. Litigation can be expensive, and companies may have to pay legal fees, settlements, or damages if they lose the case. This can put a strain on the company's finances and affect its ability to invest in growth opportunities or pay dividends to shareholders. Litigation can also disrupt a company's business operations. Legal proceedings can take months or even years to resolve, during which time the company may have to divert resources away from its core busi- ness activities to deal with the lawsuit. This can lead to delays in product development, reduced productivity, and lower profitability. These devel- opments can lead to re-run-on financial perfor- mance projections of WPC from what was high- lighted in its IPO and factor in the potential effect of the contingent liability materializing. In some cases, listing a company that is facing litigation may also affect its ability to raise capital through equity or debt financing. Investors may be hesitant to invest in companies that are embroiled in legal disputes as they perceive them as risky investments. In conclusion, listing a company that is facing litigation can have significant effects on its repu- tation, financial stability, and overall business operations. Companies should take steps to miti- gate these risks by addressing any legal issues promptly and transparently communicating with stakeholders about the situation. Companies need to prioritize their legal compliance and risk man- agement strategies to avoid costly litigation and maintain their reputation in the market. West Properties Company (WPC), a proper- ty development company in Zimbabwe, is set to list on the US$-denominated 5 The AXiS LXX Friday 07 Apr 2023 West Properties Company Curtains Unfold on Massive Developer

BRICS nations — Brazil, Russia, India, China, and South Africa — has resulted in these coun- tries setting themselves up as an alternative to existing international financial and political forums. BRICS just announced plans to unveil a new gold-backed or basket-backed currency at its 15th BRICS summit in August this year in South Africa. In recent years, there has been growing interest in the possibility of a gold-backed curren- cy being introduced as the world's reserve curren- cy. This idea has gained particular traction among the BRICS who are seeking to challenge the dominance of the US dollar in the global finan- cial system. This analysis will make a strong case for a BRICS gold-backed currency displacing the US dollar as the world's reserve currency. The chart below shows the declining purchasing power of the US Dollar since Richard Nixon ended the gold standard, in order to address the country's inflation problem and to discourage foreign governments from redeeming more and more dollars for gold. The current BRICS five now contribute 31.5% of global GDP, while the G7 share has fallen to 30%, with the US following at just over 24%. BRICS is expected to contribute over 50% of global GDP by 2030, with the proposed enlarge- ment almost certainly bringing that forward. Chi- na’s GDP actually overtook that of the United States in 2015 when comparing economies in purchasing parity terms. The BRICS have a com- bined area of (15,346,100 square miles) and an estimated total population of about 3.21 billion. That equates to roughly 27% of the world’s land surface and 42% of the global population. Brazil, Russia, India, and China are among the world’s ten largest countries by population, area, and GDP, and are widely considered to be current or emerging superpowers. All five states are mem- bers of the G20, with a combined nominal GDP of roughly US$27 trillion. However, of the five members, only China has achieved sustained and extensive growth since then. As China's gross domestic product grew from $6 trillion in 2010 to nearly US$18 trillion in 2021, the economies in Brazil, South Africa and Russia stagnated. India's GDP grew from US$1.7 trillion to US$3.1 trillion but was outpaced by China's growth. In 2014, with US$50 billion (around €46 billion) in seed money, the BRICS nations launched the New Development Bank as an alternative to the World Bank and the International Monetary Fund. In addition, they created a liquidity mechanism called the Contingent Reserve Arrangement to support members struggling with payments. These offers were not only attractive to the BRICS nations themselves but also to many other devel- oping and emerging economies that had had pain- ful experiences with the IMF's structural adjust- ment programs and austerity measures. This is why many are desperately interested in joining the BRICS group. Just before the New Year, central banks were accumulating gold at a rate not seen in 55 years. In the third quarter of 2022, analysts estimate that almost 400 tonnes of gold were bought by central banks. That much gold would take around 16 semi-trailer trucks to transport. In November, trad- ers in the gold market noted that there was a huge buyer entering the market and purchasing very large volumes of gold — a so-called ‘whale’, which turned out to be China. But it wasn’t just the Chinese buying gold. Since the start of the Russian war in Ukraine, the BRICS countries have only distanced themselves further from the so-called West. Neither India, Brazil, South Africa nor China is taking part in sanctions against Russia. This has become increasingly clear with near-historic levels of trade between India and Russia, or in Brazil's depen- dence on Russian fertilizer. The Gold-backed BRICS Currency The US dollar has been the world's dominant reserve currency since the end of World War II, with most international transactions and invest- ments being conducted in US dollars. The US dollar's status as the world's reserve currency has allowed the US to finance its trade deficits by issuing US Treasury bonds to foreign countries, which are then held as reserves by central banks around the world. This has given the US a signif- icant advantage in global trade and has allowed it to project its economic and political power around the world. However, in recent years, the BRICS countries have been challenging the dominance of the US dollar by promoting the use of their own curren- cies in international trade and investment. This has been driven in part by a desire to reduce their dependence on the US dollar, which has been subject to volatility and inflationary pres- sures in recent years. The BRICS countries also believe that the US dollar's dominance has given the US an unfair advantage in global trade and has contributed to a global economic system that is heavily skewed in favour of developed coun- tries. One potential solution to these problems is the introduction of a gold-backed currency that is not subject to the same inflationary pressures as fiat currencies. Gold has traditionally been seen as a stable store of value, and a gold-backed currency could provide a reliable basis for international trade and investment. The BRICS countries have significant reserves of gold, which could be used to back their own currencies and provide a viable alternative to the US dollar. There are several advantages to a BRICS gold-backed currency. Firstly, it would provide a stable and reliable basis for international trade and investment. Unlike fiat currencies, which are subject to inflationary pressures and can be deval- ued by central banks, a gold-backed currency would maintain its value over time. This would provide a more stable and predictable environ- ment for international trade and investment, which would benefit both developed and developing countries. Secondly, a BRICS gold-backed currency would provide an alternative to the US dollar, which would reduce the dependence of other countries on the US financial system. This would increase competition in the global financial system, which would be beneficial for both developed and developing countries. It would also reduce the influence of the US in global affairs, which would promote a more balanced and equitable What started off as a somewhat optimistic term describing what were the world's fastest-growing economies at the time, the 6 The AXiS LXX Friday 07 Apr 2023 The Changing World Order How BRICS’s Gold-backed Currency Will Topple the Greenback Other buyers include Turkey, India, Uzbekistan, Egypt, Qatar, and Iraq. It is worth noting that many of these countries have expressed an interest in joining the BRICS+ alliance. Why are central banks all over the world stockpiling gold? The answer is simple, a time is coming when gold will rule over the US dollar. The BRICS were originally identified for the purpose of highlighting investment opportunities, versus a formal intergovernmental organiza- tion. However, since 2009, they have increasingly formed into a more cohe- sive geopolitical bloc, with their governments meeting annually at formal summits and coordi- nating multilateral policies. China hosted the most recent 14th BRICS summit in July of 2022. Bilat- eral relations among the BRICS are conducted mainly on the basis of non-interference, equality, and mutual benefit. Given the aggregate size of the BRICS economies and markets, as well as the risk of sanctions, the BRICS countries should theoretically have the collective motivation to de-dollarize their interna- tional settlements to reduce currency and sanction risks. Historically, all five members have experi- enced US sanctions, with Russia and China still under various levels of US sanctions. Consequently, the shared frustrations of the five members should provide strong incentives for them to mobilize toward de-dollarization. Second, reducing dependence on the US dollar and diver- sifying the global currency and financial system was a publicly declared priority for BRIC when the group first gathered in 2009. When South Africa joined in 2010, BRICS reiterated its shared interest in this issue.

international system. Thirdly, a BRICS gold-backed currency would provide a mechanism for reducing global trade imbalances. Currently, the US dollar's dominance in the global financial system allows the US to finance its trade deficits by issuing US Treasury bonds to foreign countries. This has contributed to global imbalances and has created a situation where the US is heavily dependent on other countries to finance its consumption. A gold-backed currency would provide a more stable and predictable basis for international trade, which would help to reduce these imbalances. Despite these advantages, there are also some potential drawbacks to a BRICS gold-backed currency. Firstly, the transition to a gold-backed currency would be complex and difficult. It would require significant coordination between the BRICS countries, and there would be significant resistance from other countries, particularly the US. It would also require significant investment in new financial infrastructure, which would take time and resources to develop. Secondly, a gold-backed currency would not nec- essarily be immune to economic shocks. While gold is traditionally seen as a stable store of value, its price can still be subject to fluctuations, which could cause instability in the value of a gold-backed currency. Additionally, the supply of gold is limited, which could constrain the growth of a gold-backed currency over time. Finally, there is the question of whether the BRICS countries could effectively manage a gold-backed currency. While these countries have significant reserves of gold, they do not have the same level of financial infrastructure and expertise as developed countries like the US. This could make it more difficult for them to manage a gold-backed currency effectively and respond to economic shocks. Despite these potential drawbacks, we believe that the advantages of a BRICS gold-backed currency outweigh the disadvantages. The US dollar's dominance in the global financial system has created significant imbalances and inequalities in the global economy, which a gold-backed curren- cy could help to address. A gold-backed currency would provide a stable and reliable basis for international trade and investment, which would benefit both developed and developing countries. It would also reduce the dependence of other countries on the US financial system and promote a more balanced and equitable international system. Final Thoughts In order to effectively manage a gold-backed currency, the BRICS countries will need to invest in new financial infrastructure and develop their financial expertise. This will require significant investment and coordination, but the benefits of a gold-backed currency will be worthwhile. Howev- er, it will also require the cooperation and support of other countries, particularly developed countries like the US, who would need to recognize the benefits of a more balanced and equitable global financial system. In conclusion, we believe that a BRICS gold-backed currency could provide a viable alter- native to the US dollar as the world's reserve currency. While there are some potential draw- backs to a gold-backed currency, the advantages of a more stable and predictable global financial system would make this transition worthwhile. The BRICS countries have the potential to devel- op a more balanced and equitable global financial system, and a gold-backed currency could be a critical step towards achieving this goal. Key Economic Statistics 1.1 NDB Cumulative loan approvals by type of currency (as of December 31, 2019). 1.2 Russia’s increasing gold reserves. 1.3 A visualization of BRICS progress along the “Pathways to De-dollarization” 1.4 Declining use of the dollar in Russia’s export transactions since 2013 (percent, 2013–2020). 1.5 Russian holdings of US treasuries (2006–2021, USD billions) Note: Includes both short- and long-term US Treasury obligations. 1.6 Proposed BRICS Expansion 7 The AXiS LXX Friday 07 Apr 2023

8 The AXiS LXX Friday 07 Apr 2023 & Analysis *To Page 7 To Relieve Pressure on Electricity Imports As Concerns for Renewable Energy Roar Hwange Units 7 & 8 Over-dependence on coal imports - Zimba- bweimports coal from South Africa and Mozambique to feed its thermal plants. This expos- es it to supply chain risks and currency volatili- ty. Domestic renewable energy will improve energy security.Environmental impact - Coal-fired plants produce greenhouse gas emis- sions, pollution and toxic waste which harmsto the environment. By shifting to clean energy like solar and wind, Zimbabwe can significantly reduce its carbon footprint. Potential for job creation - The renewable energy industry is more labor-intensive, creating many new jobs in manufacturing, construction and maintenance. This can help address Zimba- bwe's high unemployment. The coal sector plants has exceeded 950Mw. Last week, the Kariba South Power Station continuously pro- duced 350MW against its maximum potential of 1050MW. At 2200Mw peak, ZPC is now generating 49% of the peak demand requirements. The total electricity produced by all power stations was 1071Mw, of which 708Mw came from Hwange's 7 units. Units 1-6 at Hwange would produce, at the very best, between 350Mw and 450Mw before Hwange Unit 7, therefore the impact from the new unit is already being fully incorporated into the grid. With South Africa, the most industrialised country in the continent facing a severe short- age of electricity pressure is mounting on mem- bers of the Southern Africa Power Pool to real- locate the supplies that ZESA had secured due to the debts that ZESA have Zimbabwe, facing perennial power shortages, received the bulk of its electricity imports from South Africa and Zambia in the fourth quarter of last year, the Zimbabwe National Statistics Agency (ZIM- STAT) said Friday. According to ZIMSTAT director-general Taguma Mahonde, the Zambia Electricity Supply Corporation Limited (ZESCO) and South Africa's Eskom each a c - counted for 32.4% and 38.4%, respectively, of the imported electricity during the fourth quar- ter. A total of 2,303.6 gigawatt hours (GWh) of electricity were imported by Zimba- bwe in 2022; of these, 681.1 GWh were imported during the fourth quar- ter, an increase of 4.7% from the third quarter's importation of 650.7 GWh, Mahonde said. ZIMSTAT reports that 1,024.2 GWh, o r 57%, of Zimbabwe's total fourth-quarter output of 1,796.9 GWh, was produced by Kariba Power Station. Due to outdated power-producing equipment and a lack of foreign currency to pay for electricity imports, Zimbabwe is experienc- ing severe power shortages. On the other hand, ZESA has applications of at least 2350 Mw for extra electricity and this is more than the country’s current capacity. Most of these applications are from the mining sector which needs power for operations and expan- sion projects. Among these is the Dinson steel project which alone needs over 500Mw imme- diately for its first phase. Power cuts have affected business operationsand resulted in heavy reliance on generators and other alternative power sources which have increased operating expenses and weakened profits. Firms like Willdale are hoping that Hwange Unit 7 will aid them in strengthening their bottom line in the coming quarter. employs fewer people.Growing energy demand - Zimbabwe's electricity demand is increasing by over 3% per year. Renewable energy pro- vides an opportunity to rapidly scale up genera- tion capacity in a modular and decentralized manner to support economic growth. Fossil fuels are non-renewable - Zimbabwe's coal reserves may only last for 20-30 more years. Renewable energy sources are unlimited and indigenous, ensuring long-term energy sus- tainability. Regional potential - The Southern African region has abundant solar and wind resources. Zimbabwe can position itself as a leader in the region's renewable energy market by building scale and skills. It can also benefit from low-cost manufacturing. Over 60% of Zimba- bwe's electricity is from coal. The country aims to reduce thermal power to 50% by 2030. Zimbabwe could potentially install over 6,000 MW of solar and 2,000 MW of wind capacity according to estimates. The average solar and wind project in Zimbabwe costs $1.2 million per MW to develop compared to $2.5 million per MW for coal. Zimbabwe spends over $400 million per year on coal imports for power generation. In com- parison, fuel sources for solar and wind power are freely available domestically.The global renew- able energy market and jobs in the sector are growing at over 10% per year. Zimba- bwe is well positioned to tap into this trend and create new employment op- portunities.At least 4 of Zimbabwe's major coal-fired plants will reach the end of their 30-40 year lifetimes by 2030, highlighting the need for alternative energy invest- ments. Zimbabwe has an aver- age of over 2,800 hours of sunlight per year and average wind speeds of over 8 m/s in some regions, providing ample re- newable resource. The world is shifting from thermal pro- duction to renewable energy due to a combina- tion of environmental, economic, geopolitical, and social factors. This shift is likely to contin- ue as renewable energy becomes increasingly cost-effective and as more people and business- es demand sustainable and environmentally friendly products and services.In summary, Hwange Units 7 and 8 will definetly reduce power blackouts and positively push peak demand requirements however Zimbabwe has compelling economic, environmental and social reasons to shift away from coal towards renew- able energy like solar and wind power. A diver- sified energy mix with a greater role for renew- able sources is the future for Zimbabwe's sus- tainable growth and prosperity. However, the 300Mw that Unit 7 has added to the grid will help improve the power supply but it will not be the end of power shortages for consumers and businesses facing long hours of load shedding. The fact that Hwange unit 7 reached full capac- ity and has been delivering gives many in the business world hopes that when Hwange Unit 8 also joins the grid electricity woes may be reduced. Howver this development comes as the world is undergoing a significant shift from thermal production to renewable energy, and this shift is driven by several factors. One of the primary reasons is the increasing concern over the impact of fossil fuels on the environ- ment. Why shifting to renewable energy is key for the Zimbabwean Economy? Thermal power generation from coal is costly - Coal-fired electricity costs between US$0.05 to $0.15 per kWh while solar and wind coal cost between $0.05 to $0.10 per kWh. Zimbabwe struggles with budget deficits and debt, so cheaper renewable energy can help reduce costs. Last week Hwange Unit 7 power output achieved a full capacity of 335Mw since then, the combined output of all the power

Digital Nomadism Could Zimbabwe Favour International Nomads? 9 The AXiS LXX Friday 07 Apr 2023 This week, the Romanian President signed a bill regarding digital nomads’ obligations, which excludes them from contributing to social security, social health insurance or wage taxes. uting to social security, social health insurance or wage taxes. Gov- ernments are going out of their way to give the best conditions for digital nomads for they bring tourist-like benefits. Their stay is even more sweater for they stay longer than tourists. It is important to define what really digital nomads are. Digital nomads can be conceptualized as people who travel whilst working, rather than travelling for business. Digital nomadism can be used by people for geo-arbitrage purposes where a person from a higher-income country like the US, Europe, or Australia chooses to stay in a lower-cost country wielding his wages from there. One will be working for that overseas company and receiving a high salary but staying in a low-cost environment. For some nomads, this is an essential life hack. For others, it rep- resents the polarising reality of globalisation that the entire world should operate as an open, free market. To many, it is unethical. Before COVID, there was a niche phenomenon where most digital nomads were travelling and working illegally on tourist visas. This was viewed as an emerging form of youth travel. The use of digital technologies and infrastructures as a work context is a defining quality of digital nomadism. To manage the w o r k - l e i s u r e balance, the world had seen the emergency of coworking spaces over the years. During and after the pandemic, the traditional 8-to-5 office work was disrupted as people started working from home (WFH). Today here in Zimbabwe, in some organisations workers are no longer required to be in the office every working day. Meetings are now being done virtu- ally unless on special days and o c c a s i o n s . Abroad, because of the virtual and digital nature of jobs, people have found it even more exciting, adventurous and cheaper to relocate and stay in another country for say 6 months or more but still on the same job. The number of such digital nomads has grown significantly over the past three years with the US alone growing digital nomads to 16.9 million, a staggering increase of 131% from the pre-pandemic year of 2019. Popular digital nomad destinations are usually countries where the cost of living is lower than your country of origin. Countries have responded by putting up some legislation and visas to cater for digital nomads coming from better economies. Countries with the most popular digital nomad visas are the Czech Republic, France, Greece, Germany, Iceland, Spain, Estonia, Malta, Portugal and Croatia. In October 2022, Namibia became the first African country to offer a digital nomad visa specifically targeted at remote workers. Digital nomads can now live and work in Namibia for up to six months. To qualify for Namibia’s digital nomad scheme, one needs a mini- mum income of $2,000 per month, plus more if bringing any depen- dents. You also need proof of income, health insurance and the usual travel documents. The visa itself costs just $62. What makes the country attractive is that it is totally spectacular and has a huge range range of stuff to explore, from the salt pans of Etosha (one of the country’s five epic national parks) to the post-colonial seaside town of Swakopmund. Digital nomads have been categorised into five types. Freelance nomads are those workers who have control over their mode of employment. The other group are business owners who run more complex businesses with contrac- tors, employees, or business infrastructures. Salaried digital nomads are those employed by a company, and have a salary and contract. Experimental nomads are those who are aspiring business owners but not yet earning or generating revenue. Armchair digital nomads are those thinking of becoming digital nomads during the next three years. In the US, the number of sala- ried nomads – full-time employees now working fully remotely – is estimat- ed to have gone from 3.2 million in 2019 to 11.1 million in 2022. This exponential growth has prompted governments to start paying attention. Unlike in Europe and those in better economies, people working in Africa are not likely to become digital nomads due to low incomes. The best we can do, just like Namibia, is to attract international digital nomads to visit our countries and offer them great stay. Zimbabwe has the advantage of great climatic conditions, natural resources in the form of game parks, Vic- toria Falls, Great Zimbabwe, adventure activities and a rich cultural heritage. Digital nomads are attracted to countries that offer a good balance of quality of life, affordable cost of living, reliable internet access, vibrant culture, and opportunities for professional development. Besides all the ben- efits Zimbabwe can try and offer being on the sanctions list is a big setback. However, the fact that tourism receipts grew by over 138% in 2022 to over $580 million is a sure sign that we have scope to upgrade tourists to become digital nomads and have an even longer stay in the country. One of the key aspects to work on is infra- structure develop- ment. West Properties is working on an ambitious plan to “Bring Dubai to Zimbabwe”. The property company seeks to develop properties in its lifestyle communi- ties where people can live, work, shop and play. During their analysts’ engagement, the group’s CEO Ken Sharpe highlighted that the company has a vision of put- ting 1 billion bricks into the ground in Zimbabwe. The group has completed premium construction projects such as the Mbudzi People’s Market, Pokuga- ra Townhouses, Pokugara Single & Double Storey, Millenium Heights, HomeLand 263, and GunHill Rise amongst others. One of their biggest future projects is the Mall of Zimbabwe. These kinds of efforts if successful, will make Zimbabwe more attractive to outsiders, in the same manner, as places like Cape Town in South Africa. Other property players like Mashonaland Holdings are engaging the City of Harare so as to come up with a local plan to get the current Harare CBD transformed and upgraded to match regional and international standards. The challenge in Harare CBD has been rigid landlords who have been comfortable with their old family properties. In conclusion, it is possible at some point to get Zimbabwe attractive to regional and international digital nomads. Already the nation is benefiting from locals stationed in Zim but working for outside companies. We can do more if we adopt the Namibian template and put all the necessary condi- tions and favourable legislation in place. It maybe cannot happen tomorrow, but very possible!

10 The AXiS LXX Friday 07 Apr 2023 FAO Global Food Inflation Analysis Zimbabwe Food Prices Face Rising Local Headwinds The improvement in export inventories suggests that wheat prices may remain stable for the fore- seeable future. However, for the foreseeable future, the geopolitical climate and conflict in the Black Sea continue to pose serious risks to the world market for grain and vegetable oil. Although the duration is brief, the extension of the grain agreement is a good development. For market participants to eliminate uncertainty regarding shipments for longer periods of time, a longer time frame is much preferable. Despite this, the agreement's extension is advantageous to all nations that import vegetables and grains, especially Zimbabwe. Locally, the headline blended inflation rate—which measures prices in both US and Zimbabwean dollars—dropped to 87.6% in March, the lowest level in nine months. This month, the statistics agency designated the measure as the official barometer because it is The FAO Global Food Price Index (FFPI), which tracks changes in a basket of food prices on a monthly basis, averaged 129.8 points in February 2023, a 0.6% decrease from January and a continuation of the downward pattern for an additional eleven months. The index has decreased 18.7% since its peak in March 2022 with the most recent drop. The mar- ginal decrease in the FFPI in February was more than offset by a sharp increase in the sugar price index. This was due to significant declines in the price indices for vegetable oils, dairy, and meat. The FAO Food Price Index (FFPI) tracks the monthly shift in a basket of food commodities' international prices. It is made up of the weighted average of five product group price indices aver- aged over the years 2014 to 2016. The Black Sea Grain Initiative, also known as the Initiative on the Safe Transportation of Grain and Foodstuffs from Ukrainian Ports, has been extend- ed for an additional 120 days and will be evaluat- ed again after this time period, which is encourag- ing news for global food inflation. A deal between Russia and Ukraine was reached with Turkey and the UN in July 2022 to permit grain to be transported from Ukraine to interna- tional marketplaces without Russia's military attacking Ukraine. One of the key factors in the decline in world food costs over the previous 11 months has been the export of about 25 million tonnes of grains and vegetable oils by Ukraine since the agreement was first signed. Despite the fact that its production has significant- ly decreased as a result of the war, Ukraine still holds a major position in the world wheat market. The most recent International Grains Council (ICG) estimate for 2022/2023 global wheat exports is at 199 million tonnes - up 1% from the previous season - despite the sharp drop in Ukraine's wheat exports. In addition, it is anticipated that Australia, Canada, the EU, Kazakhstan, and Russia will increase the supply of goods for the global market. thought to provide a more accurate picture of the state of the economy. Inflation was 0.1 percent month over month in March 2023, up 1.7 percentage points from the minus 1.6 percent figure in February. We predict that headline CPI inflation will resume its wide easing trend from March 2023 because it follows the same trajectory as global inflation due to the aspect of the majority USD component, despite the fact that upside risks still exist. However, the inflation of food prices, which has been rising steadily for the majority of the past year, continues to be a significant risk factor for this forecast. According to ZIMSTAT, social services and com- ponents like health and education were the main motivators. In comparison to other important markets, Zimbabwe's most recent decline in inflation followed a similar trajectory to that of China, the US, and Brazil, where food inflation rates have been declining, while Kenya, the EU, and South Africa have seen increases. There are a number of non-Zimbabwean vari- ables that have contributed to local food inflation over the past year. Globally high farming com- modity prices as well as rising energy costs are some of these, and they have an impact on the cost of inputs like fuel fertilizer. The continued drop in the FAO's food price index shows that some of these global variables are easing, but the depreciation in Zimbabwe's exchange rate has more than offset the overall decline. At the same time, the value chain for agriculture and food was significantly impacted by load shedding at consistently high levels. Notably, much of the observed fall in global prices has not been able to shift to Zimbabwe due to the sharp exchange rate depreciation. Unfortunately, it is widely believed that load shedding will continue to be relatively high for the foreseeable future, which will play a signifi- cant role in keeping local food costs higher for longer. The large base effects of March 2022 will probably cause food inflation to slightly slow down in March 2023. However, a rise in administered prices, such as electricity, could further raise cost pressures, which will likely keep food prices high in the months to come.

11 The AXiS LXX Friday 07 Apr 2023 EQUITY AXIS    Financial insights at your fightertips.         

   www.equityaxis.net Equity Axis Head Office 32 Lawson Avenue, Milton Park, Harare, Zimbabwe t: +263 (08677) 197791 c:+263 773 782 392 | 773 037 422 [email protected] Follow us imbabwe has been facing a multitude of economic challenges, making it difficult for Zindividuals and families to access necessities like food and shelter. Recent data released by the Zimbabwe National Statistics Agency (ZimStat) highlights the increasing poverty lines in the country, with the Food Poverty Line (FPL) for an individual in March 2023 increasing by 0.8 per cent to $22,561 in inflation-adjusted terms compared to $22,386 the previous month. Additionally, the Total Consumption Poverty Line (TCPL) rose by 0.76 per cent to $29,788 from $29,563 in February. According to the Food Agricultural Organization (FAO), at least 67 million people in eastern and southern Africa are currently facing acute food insecurity, including Famine, and up to 10 million in Zimbabwe and 15 million people in Ethiopia are facing acute food insecurity (IPC Phase 2; Stressed), trapping a multitude of populations in poverty. This is predicted to continue in the coming months for most affected countries by the recession. These poverty lines by Zimstat reflect the worsening economic conditions in Zimbabwe, which have been exacerbated by several factors including high inflation, low levels of foreign investment, and persisting currency depreciation that have reached unsustainable levels. These issues, combined with the devastating impact of the COVID-19 pandemic, have resulted in an alarming increase in poverty levels in the country. The alarming increase of the poverty lines by a staggering 219.5 per cent in the case of FPL and 206.7 per cent in the case of TCPL compared to the previous year is a cause for major concern. This has pushed over 90% of the productive population into a fleamarket economy, with vendors crowding the nation and leaving no space for formal businesses. This has resulted in a situation where everyone is forced to become an entrepreneur to survive. Extreme poverty is trapping people in a never-ending cycle of insufficient food, inadequate shelter, and lack of access to basic health services. This dire situation must be addressed with urgency to safeguard the future of Zimbabwe. The stark contrast in poverty datum lines between various provinces in Zimbabwe highlights the unequal access to food and other necessities. Midlands province emerged as the most affordable area to live, with the TCPL at $22,942, while Manicaland, Harare, and Bulawayo are the costliest owing to increased business activity in the business centres, with poverty datum lines ranging from $30,865 to $34,572. To address this wide-ranging poverty gap and ensure that Zimbabweans from all provinces can access necessities, concerted efforts must be made to bridge this divide. Immediate actions need to be taken to address the poverty challenges facing Zimbabwe. Providing access to food and other necessities should be the priority. Steps should be put in place to ensure that essential items like food and medicines are affordable and readily available to all citizens. Investing in industries such as agriculture, mining, and manufacturing can create much-needed job opportunities for Zimbabweans, thereby providing a vital source of income and helping to improve the local economy. Additionally, these investments can boost economic development and create more sustainable livelihoods for the Zimbabwean population. There is also an urgent need to invest in social safety nets to support vulnerable groups like the elderly and children. A comprehensive social welfare program can help ensure that no one is left behind in Zimbabwe. As there is a significant gap between the poverty datum lines of different provinces, it is essential to formulate targeted policies that address the specific needs of each region. One of the key policy recommendations is the provision of access to necessities like food and shelter. Zimbabweans need to have affordable and readily available food and essential items like medicines to meet their needs. For this reason, measures should be put in place to ensure that they can access these necessities. Creating job opportunities should be another priority policy recommendation. By investing in industries like agriculture, mining, and manufacturing, Zimbabwe can provide employment opportunities to its citizens. Providing job opportunities is essential to create a sustainable economic system and lifting people out of poverty. The mining sector is one of the major economic centrepieces expected to contribute significantly towards the attainment of high employment levels, Presently, it is contributing about 70 per cent of the country’s foreign currency earnings. Among others, lithium has been the talk of the town with its new deposits making Zimbabwe one of the biggest lithium-bearing countries in the continent. There is also an urgent need to invest in social safety nets to support vulnerable groups like the elderly and children. Zimbabwe needs a comprehensive social welfare program that ensures no one is left behind in accessing necessities. Social safety nets can also help to promote equality and prevent extreme poverty. Targeted policies that address the specific needs of different regions of Zimbabwe are essential. There is a significant gap in poverty levels between the different provinces of Zimbabwe, and to reduce poverty, specific policies are required for each region. Investing in small and medium enterprises (SMEs) can also alleviate poverty levels. SMEs have the potential to create more jobs and increase access to capital, thereby improving the standard of living of Zimbabweans. Furthermore, creating an enabling environment for small and medium enterprises (SMEs) can play a role in alleviating poverty levels. SMEs can create job opportunities and increase access to capital, thereby improving the standard of living of Zimbabweans. In conclusion, as the poverty levels continue to rise in Zimbabwe, the government, private sector, and civil society organizations must work together to address the challenges facing Zimbabweans. Addressing poverty should be a priority for policymakers as poverty has significant human, social, and economic consequences. By implementing comprehensive policy measures, Zim babwe can achieve its poverty reduction targets, ensure that no one is left behind, and unlock the potential of its economy. In conclusion, to address the challenges facing Zimbabweans, there is a need for collaboration between the government, the private sector, and civil society organizations. By implementing policy measures that address the specific needs of each region, promoting job creation, investing in social safety nets, and providing access to necessities, Zimbabwe can reduce its poverty levels and unlock the potential of its economy. Poverty reduction is not only a moral obligation, but it is also critical to achieving sustainable economic growth and social stability in Zimbabwe. Zim's Growing Poverty Line Unveiling the Devastating Impact and Urgent Policy Solutions

12 The AXiS LXX Friday 07 Apr 2023 n the previous ten years, banks have expanded their range of services enormously, but there is I still more to come. After 2021, several banks in Zimbabwe launched a significant digitalization campaign in reaction to the Covid-19-induced economic lockdowns that were occurring. Apart from performing a bank's fundamental duties, management has expanded the scope of its mission to develop new sources of income. In addition to discussing the substantial diversification efforts made by Zimbabwean banks, this article will examine how those institutions might consider investing in the gaming industry, which is currently thought to have greater potential than the $ 100 billion/ year Hollywood itself. For instance, banks in Zimbabwe like NMB have done quite well when it comes to their capacity to collaborate with potential investors to acquire more cash. A total of US$88.4 million in lines of credit have been made available to the bank since 2013, and another US$53 million is anticipated shortly. Moreover, the European Investment Bank has also made significant investments in the local banking sector through NMB, First Capital Bank and Cabs. Zimbabwe now has 14 commercial banks, 4 building societies, and 1 savings bank, making a total of 19 banking institutions. This is inferior to South Africa, which has around 70 banking institutions in total. This piece looks at the advantages banks can gain from investing in the gaming sector. As of December 31, 2022, the assets of Zimbabwean banks totalled ZW$ 3.81 trillion, according to the monetary policy statement. This is virtually at the same level as the market capitalization of the Zimbabwe Stock Exchange, which at the time this piece was published was ZW$3.136 trillion. The purpose of this comparison is to highlight how the banking industry in Zimbabwe has more potential than the stock market and banks, which are the foundations of the nation's financial system. In addition, looking at the sectoral distribution of loans as of December 31, 2022, Zimbabwe's agricultural sector accounted for about 22.94% of total industry loans, compared to only 6.44% for the commercial sector and 12.71% for the financial sector. This article will explain why banks must invest in the gaming sector so that we can see a rise in loan demand, support the economy through other sectors, and lessen reliance on agriculture. Banks have been known to take deposits for a very long time. It's one of a bank's two fundamental roles. Banks look after their customers' money and, in some instances, offer interest. Loan advancement is yet another essential function of banks. The primary source of income for banks is the provision of credit facilities to customers, though they also generate income from several other sources, such as ATM services, remittance and money transfer services, overdraft facilities, and numerous other services, such as counselling and insurance. Although this oversimplifies what banks do, it is fair to say that Zimbabwean banks have performed well in this area. We will now examine how Zimbabwean institutions can use gaming investments to improve their operations. Gamification In Finances The gaming business is expected to be larger than Hollywood in a few years, with a net worth of more than $ 200 billion. For banks in Zimbabwe and globally in general, this is uncharted terrain, but there is potential for unrealized profits. What opportunities exist for financial services are intriguing issues to ponder. How can they support the vibrant gaming community? Do financial services have a place in the so-called Metaverse? Is there anything the banking sector can learn from the gaming sector? Gamification of banking Gamification in finance is not the same as copying famous video games in a banking application to amuse users. To better engage consumers, it should put more of an emphasis on providing value that is wrapped up in gamified experiences. In a nation like Zimbabwe with many young bankers, including paid games on banking apps is imperative, and different banks throughout Zimbabwe have developed numerous apps that can be worked on further to improve the accessibility of gaming to their customers. This is an unrealized business chance to make additional profits. Creating enduring, developing user experiences and catering to various audiences within a single app are the primary obstacles to integrating game mechanics into the banking software. Banking apps can rapidly and naturally adopt gamification, which can then be monetized. Gamification has not received any notice from Zimbabwean banks in a long time. Nowadays, millennials and members of Generation Z make up the bulk of bank customers. It only makes sense for banks to invest in such technology because these video game enthusiasts need an extra stimulus to keep up with something as "dull" as finances. Banks must convert their mobile banking applications into games and monetize them. Popular payment systems like Ecocash, Visa, or Mastercard can be integrated with this. But gamification isn't that easy. Additionally, it means that you must appeal to a range of age groups and figure out how to incorporate game mechanics into user interactions with banking applica Prospect for Gaming in Zimbabwe's Banking Sector tions. To put it another way, it's not about games but rather about using game-like principles in software to improve the user experience of fintech and banking apps. We must determine the main use cases of banking software before we can effectively apply these principles to it. Finding activities in a banking app that need to be strengthened and determining how that will help customers and the company is essential. Conclusion Zimbabwean banks should place themselves in the gaming sector right now to draw in a new clientele. For instance, one of the most well-known banks, Barclays, has a whole page devoted to all of its initiatives for the popular E-Sports community. Additionally, Santander Bank works with an E-Sports squad. With so many banks in Zimbabwe having access to lines of credit, agreements such as Credit Karma's agreement with Valorant from Riot Games can be adopted, as this, this will completely alter the game in Zimbabwe and throughout Africa. Banks can also develop a credit card for the gaming community with Mastercard/Visa for convenience. Banks can add discounts and other game-related features to the card to make it more exciting to use and to increase revenue instead of linking insurance products and other customary services. The Metaverse, which is "a collective virtual shared space including the sum of all virtual worlds and the Internet," is a topic of much discussion today. To evolve their services and payment systems to be ready for the "future," Zimbabwean institutions should consider this metaverse as another factor. The blockchain and the entire NFT industry are upending this simulated world. More online games are allowing players to save objects and virtual resources outside of the game. Real and virtual, as well as virtual and virtual, are no longer entirely distinct realities. All of these dynamics are presently in play, and Zimbabwean bank managers ought to include gaming in their offerings. ,

13 The AXiS LXX Friday 07 Apr 2023 I n February 2023, authorities took unprece- dented measures by shifting from reporting Zimbabwe dollar (ZWL) inflation to blended inflation statistics for policy guidance. Since the US dollar dominates in the weighting, blended metrics are showing outcomes that are complete- ly detached from people’s lived realities. So, building up from last week, the column suc- cinctly analyses the macroeconomic outlook including at the global and regional level to get the true picture of the obtaining situation. Global Outlook Global economic activity is expected to slow down from an estimated 3.2% in 2022 to about 2.9% in 2023. This is 0.2 percentage points higher than International Monetary Fund’s (IMF) October 2022 forecasts. Constraining global eco- nomic activity is increased financial tightening by major central banks to fight inflation and subdue the impacts of the Russia-Ukraine war. This is expected to exert downward pressure on global inflation to close 2023 at 6.6% from a peak of 8.8% in 2022. All else constant, the declining trend will continue in 2024 to 4.2% which is however still above pre-pandemic levels of 3.5% (2017-19). Global GDP Projections (%) Although adverse risks have moderated since October 2022, the balance of risks remains tilted to the downside. On the upside, a stronger boost from pent-up demand in various economies or a faster decline in inflation is plausible. However, on the downside, the Ukraine war could escalate, geopolitical rifts continue to widen risking a severe trade war, and tighter global financing costs could worsen debt distress and plunge the global economy into a financial crisis. Amid the cost-of-living crisis, the priority remains to achieve sustained disinflation. As such, fiscal support should be better targeted at those most affected by elevated food and energy prices, and broad-based fiscal relief measures should be withdrawn. Regional Outlook Economic growth in Sub-Saharan Africa (SSA) is projected to remain moderate at 3.8% in 2023 amid the prolonged fallout from the COVID-19 pandemic, before picking up to 4.1% in 2024. Even as the cost-of-living pressures are anticipat- ed to moderate, the negative impact of persistent poverty and food insecurity on growth, amplified by other vulnerabilities, such as unfavourable weather, high debt, policy uncertainty, and vio What to Expect When Authorities Are Out of Touch with Reality? the government pursues the completion of ongo- ing projects like housing, roads, and dam con- struction ahead of the general elections. On the downside, power challenges could persist at least through the first half of 2023 despite the expected coming on board of two (2) new Hwange thermal units with a combined installed capacity of 600MW. This is increasing business operating costs and fuelling the cost-of-living crisis. Also, the upcoming harmonized elections will likely subdue economic activity and destabilize the economy as the Treasury is expected to spend beyond its limits due to political pressure. Zimbabwe’s elections are usually characterized by political violence, police brutality, and viola- tion of human rights. All these increase the country’s investment risk premium which could greatly constrain employ- ment creation, output growth, and wealth creation. More so, the ongoing global financial tightening is increasing Zimbabwe’s cost of accessing new borrowing lines as well as the cost of servicing its existing debts. The latest official statistics show that the nation is in debt distress as nearly 45% of US$14.04 billion external debt are arrears and penalties. With a huge debt overhang, the nation is now resorting to token payments - a mere acknowl- edgment of existing financial obligations. The debt conundrum has plunged the majority into poverty, collapsed the fiscal space, and is now fuelling collateralized borrowing (resource-backed loans). The debt-linked economic tightening increases the risk of social unrest as public service deliv- ery is crowded out amid unbearable inflation and high levels of inequality. The foregoing shows that the economy is falter- ing and is facing enormous risks than what authorities are trying to portray. As such, resort- ing to blended metrics will neither strengthen the fragile Zimbabwe dollar (ZWL) which has lost more than 40% in year-to-date terms nor increase domestic production which is facing threats of increased imports as the economy is rapidly re-dollarizing. For stability to occur, authorities must come to terms with reality and implement market-driven policies and reforms to stabilize the ZWL, curb corruption and impunity, thwart illicit dealings, promote fiscal discipline, attract private invest- ment, and improve market competition and inno- vation. Zvikomborero B. Sibanda is an Economic Ana- lyst for Zimbabwe Coalition on Debt and Devel- opment (ZIM- CODD). He writes in his own capacity; his views do not represent those of the organization he works for. Email: bravosiban- [email protected] lence and conflict is anticipated to keep the pace of recoveries subdued in many SSA countries. Sub-Saharan Africa Growth Projections A deeper-than-anticipated slowdown of the global economy could cause sharp declines in global commodity prices dampening growth in SSA exporters of oil and industrial metals. Global financial conditions could tighten more if global inflation pressures persist longer than expected leading to higher borrowing costs and a higher risk of debt distress in many SSA economies. The SSA food systems, already stressed by elevated costs of farming inputs and weather-in- duced production losses, remain particularly vul- nerable to further disruptions that could lead to surging food prices and increased food insecuri- ty. Domestic Outlook The government is projecting GDP growth to moderate to 3.8% in 2023, a slowdown from 4% realized in 2022 and 7.8% realized in 2021. Underlying assumptions for 2023 GDP growth include favorable rainfall patterns across the country, elevated global commodity prices, increased electricity production, a sustainable fiscal deficit of about 1.5% of GDP, a stable ZWL, and low monthly inflation averaging 1-3%. Fig 2: Zimbabwe Real GDP Growth (%) The balance of risk to the domestic economy is tilted to the downside. On the upside, the agri- culture sector is expected to perform better than in 2022 as most parts across the nation have received good rainfall patterns. Although mineral prices are likely to be sub- dued in 2023 due to a likely waning global demand, the mining sector is expected to anchor the economy through export earnings. The mining sector is Zimbabwe’s forex cash cow accounting for 70% of total export receipts on average per year. Furthermore, I expect increased activity in the construction sector as By Zvikomborero B. Sibanda Deteriorating Economy

15 The AXiS LXX Friday 07 Apr 2023 iversified ZSE-listed company, TSL Zimbabwe Limited has achieved a record 520% increase in after-tax profit (PAT) for the full year to 31 December 2022 courtesy of the company’s diversifi- cation strategy. PAT increased to ZWL14 billion from ZWL2 billion recorded in FY2021 in infla- tion-adjusted terms despite incurring high finance costs courtesy of a waning currency, multiple exchange rates and high-income tax charges which increased production costs. Production was also dampened by disruption in global supply chains caused by the Russia-Ukraine War. “The operating environment remained complex char- acterised by significant inflationary pressure, currency instability and prolonged dry spells after some crops had been planted,” said the Company’s chairperson Anthony Mandiwanza in a stamen accompanying the FY2022 financials. Mandiwanza added, “The ongoing conflict in Eastern Europe negatively affected local business sentiment, with supply side disruptions resulting in cost pres- sures across global and local markets.” The Company capitalised on cost-cutting strategies and leaned more on its diversified portfolio to offset losses and increase returns for the shareholders. Cost of sales and finance costs were increasing at a decreasing rate despite a hyperinflationary environ- ment. Losses in the agricultural operations, particularly in tobacco were offset by banana, wheat and commer- cial maize operations while agricultural losses at par were cancelled out by major strides registered in logistics and Avis operations. The Company’s investments in Mvurwi’s new floor helped to narrow losses in the tobacco segment by increasing green tobacco handling volumes by 32%. The tobacco sector suffered a 5% decrease despite having a fair price of US$3.24 against the national average price of US$3.06. The Company reported a 162% spike in total finance costs due to an aggressive 120 percentage points increase in repo rates (currently, repo rates are at 150%) by the financial authorities in 2022 in its battle to tame inflation, speculative borrowing and arbitrage opportunities. The Company further succumbed to record tax income charges of ZWL2.99 billion an increase of 172% from ZWL1.10 billion paid in FY2021. However, the Company navigated through the turmoil operating environment to report improved earnings, revenue and profit after tax as well. Reve- nue increased by 26% to ZWL17.7 billion from ZWL14 billion in the previous year while the Com- pany’s current assets almost doubled from ZWL8.8 billion in 2021 to ZWL15.9 billion during the period under review, bringing total assets to ZWL58 billion from ZWL34 billion in FY2021. Against an aggressive tax system and embattled local currency, the Company moved to extinguish its ZWL-denominated facilities to take advantage of more sustainable financing. Dwan Property Consultants valued the Company’s property portfolio at ZWL39 billion, which is a significant increase on the more conservative direc- tor’s valuation adopted in prior years in the absence of ZWL inputs. The USD value of the Group prop- erties increased by 9% from last year. Operations Performance Agricultural Operations TSF continued to hold the largest market share in the independent auction segment (71%) and achieved the highest seasonal average price of US$3.24 (up from US$2.86 recorded last year) against the national average price of US$3.06. Tobacco Sales Floor handled tobacco decreased by 5% to 23.1 mkg on the back of a smaller crop and a shrinking indepen- dent grown crop against 24.3 mkg in prior year. However, the business successfully opened a new floor in Mvurwi and the volumes therefrom were pleasing. This complements the business’ decen- tralised operations in Karoi and Marondera which were opened in 2021. Propak hessian volumes were 15% below prior year owing to a reduction in the independent auction segment. However, the tobacco paper manufacturing line which was commissioned in prior year produced a high-quality, competitively priced paper that the market responded to positively. Paper volumes conse- quently grew by 24%. Agricura received mixed volumes performance during the period. Whilst some product lines performed better than the previous year on the back of product availability and competitive pricing, other product lines were not available due to inordinately long lead times caused by global supply chain disruptions. There was slow progress in export volumes into Botswana hence the Company explored new markets in Zambia and a sizeable number of products in Zambia and exports are expected to commence in the second quarter of the 2023 financial year. In the farming operations, yields were spared in wheat and commercial maize by improved water and weather conditions. The improved water and weather conditions resulted in banana plantation production growing by 27%. However, tobacco yields were 14% lower than prior year due to a hail strike but improved tobacco quality resulted in very pleasing prices being achieved. Logistics Operations The introduction of a reliable rail service between Harare and Maputo in August 2021 by Bak Logistics in partnership with DP World and Unitrans increased volumes in the Ports division by 117%. General cargo volumes were significantly ahead of prior year due to improved fertilizer volumes. Green tobacco handling volumes increased by 32% due to the new floor opened in Mvurwi coupled with the provision of handling services to new tobacco clients. The FMCG business continued to be affected by global supply chain challenges and hence, volumes were depressed. Transport division volumes were 9% up due to an increase in volumes for tobacco bales transportation from decentralised tobacco floors while Premier Forklift volumes were 4% ahead of prior year due to additional business from new clients. Forklift sales also significantly increased in the year as more clients resumed capital expenditure. Meanwhile, Avis’ rental days were 71% ahead of prior year as lock- down restrictions eased resulting in increased interna- tional arrivals. Real Estate Operations Certain properties were deliberately kept vacant for redevelopment in the later part of the financial year in line with the Group’s strategic initiative to create fit-for-purpose, modern infrastructure that facilitates the movement of agriculture. Mandiwanza added that additional warehousing space is currently under construction in response to existing demand and is expected to be added to the property portfolio in 2023. Against a sublime performance, a final dividend of US$0.0012 per share was declared. The Company expects to continue anchoring its outlook on agricul- ture. Diversification Anchors Gains markets TSL Zimbabwe Limited D they have increasingly formed into a more cohe- sive geopolitical bloc, with their governments meeting annually at formal summits and coordi- nating multilateral policies. China hosted the most recent 14th BRICS summit in July of 2022. Bilat- eral relations among the BRICS are conducted mainly on the basis of non-interference, equality, and mutual benefit. Given the aggregate size of the BRICS economies and markets, as well as the risk of sanctions, the BRICS countries should theoretically have the collective motivation to de-dollarize their interna- tional settlements to reduce currency and sanction risks. Historically, all five members have experi- enced US sanctions, with Russia and China still under various levels of US sanctions. Consequently, the shared frustrations of the five members should provide strong incentives for them to mobilize toward de-dollarization. Second, reducing dependence on the US dollar and diver- sifying the global currency and financial system was a publicly declared priority for BRIC when the group first gathered in 2009. When South Africa joined in 2010, BRICS reiterated its shared interest in this issue.

16 The AXiS LXX Friday 07 Apr 2023 Masimba Posts Solid 2022 Financial Performance Contracting and industrial firm, Masimba Holdings Limited's Compounded Annual Growth Rate (CAGR) for revenue and profit increased by 14% and 58%, respectively, between FY'17 and FY'22, with an order book valued at US$104 million across several industries in both the private and public sectors for the year ended 31 December 2022. According to the company, the public and private sectors are equally represented in the order book, which includes infrastructure for roads and earth- works, water, housing, mining, and electricity. The firm's revenue grew by 83% to ZWL46.33 billion from ZWL25.28 billion in 2021. A solid order book in the segments for roads and earthworks, mining, buildings, and housing infrastructure was primarily responsible for the increase in income. As a percentage of total revenue, revenue generated in US dollars increased from 35% in 2021 to 65% in 2019. Earnings before Interest Taxes Depreciation and Fair Value Adjustment (EBITDFVA) grew from ZWL5.40 billion in 2021 to ZWL13.18 billion. The increase in profits was primarily the result of improved opera- tional efficiencies and exchange gains of ZWL4.8 billion as opposed to ZWL197 million in 2021 which resulted from a net foreign currency asset position. In the end, the company's net profit increased by 241% from ZWL3.4 billion to ZWL11.5 billion. The financial position of the company strengthened to ZWL58.9 billion from ZWL39.2 billion prior year. Total capital expenditure incurred in property, plant and equipment and investment property amounted to ZWL4.4 billion and ZWL166 million respectively, which collectively translated to an equivalent of USD6.7 million against USD11.3 million in 2021. In addition, the increase in the financial position is attributable to the revaluation and fair value measure- ment of property, plant and equipment and investment property. In this regard, revaluation surplus and fair value gains realised in the year amounted to ZWL8.3 billion (2021: ZWL156 million) and ZWL4.3 billion (2021: ZWL1.3 billion), respectively. The current ratio improved to 1.29 from 1.07 in 2021 which means that the business has fallen into the 1.2 to 2 ratio which indicates that the firm has more cur- rent assets than liabilities to cover its debts. This was a result of the increase in volumes and the temporary suspension of Zimbabwe Dollar payments by the Central Treasury as announced in August 2022. This temporary suspension of payments was part of an array of measures put in place by the fiscal authorities to mitigate speculative trading. Total borrowings as of the fiscal year's end were ZWL424 million. (2021: ZWL1.1 billion). An out- standing USD loan amount of USD $500 000 is included in the borrowings. The Group's borrowing levels are manageable given the current lending rates and the prospects for the economy. Cash generated by operating activities declined to ZWL729 million (2021: ZWL8.7 million). The drop in cash generated through operating activities was primarily caused by the slow recovery of trade receivables and contracts in the process following Central Treasury's temporary suspension of payments, as was previously mentioned. Due to the country's current infrastructure develop- ment ambitions and increased tendering operations, the Group has many projects in the pipeline. The stability of the economy is key T urnall's profitability expanded at a compounded annual growth rate (CAGR) of 336% between FY'19 Turnall Holdings Limited Profitability Sinks in FY’22 and FY'21, but the company recorded a loss of 3.84 billion in FY'22. This was largely due to the business experiencing a loss on the net monetary position of $3.1 billion as opposed to a gain of $308 mil- lion in the same period last year, the loss was driven by changes in the Consumer Price Index (CPI), which increased by 244% in comparison with the prior year. The cost of goods sold increased by 35% while revenue increased by 16%, indicat- ing that the business was losing money over time, which reduced the firm's gross profit and margins. The official and alter- native market exchange rate discrepancies are to blame for cost pressures, whose detrimental effects on the cost of doing business could not always be effectively offset through changes in selling prices. The inflation-adjusted expenses to sales ratio was 52%, up from 23% the previ- ous year. This significant rise is due to significant non-recurring employee termi- nal benefits that were paid out during the year and totalled ZWL1 224 702 099. The hyperinflationary environment also showed that prices had increased broadly throughout the industry, but cost contain- ment measures greatly reduced this. Despite a 29% decline in sales volumes, the Group's turnover for the year con- cluded December 31, 2022, was $8.4 billion in inflation-adjusted terms as com- pared to $7.25 billion in the prior year. Focusing on the high-value but low-ton- nage products on purpose has largely been responsible for the sales success. However, the Group's attempts to reach its maximum potential were hampered by the economy's low aggregate demand and liquidity issues. Capital expenditure for the fiscal year 2022 was $622.5 million, up from $60.2 million the previous year, with the prima- ry goal of improving output efficiencies. As part of the company's recapitalization initiative, an AC Plant with a value of ZWL798.9 million was impaired during the year and will be replaced by the newest, state-of-the-art plant in Harare in 2024. During the time period under con- sideration, the business took no loans. Internally generated funds were used to cover all capital needs. Capital expenditure for the fiscal year 2022 was $622.5 million, up from $60.2 million the previous year, with the primary goal of improving output efficiencies. As part of the company's recapitalization initiative, an AC Plant with a value of ZWL798.9 million was impaired during the year and will be replaced by the newest, state-of-the-art plant in Harare in 2024. During the time period under con- sideration, the business took no loans. Inter- nally generated funds were used to cover all capital needs. Cash generated from operating activities was $592.4 million, a 2% decrease from the same time last year. In order to maintain value in this hyperinflationary environment, the busi- ness kept making working capital invest- ments. Despite the challenging business climate, the company has embarked on a major capital expenditure program targeted at restoring fibre cement production in Harare and introducing GRP pipe production in order to capitalize on this rapidly growing local and regional market. IBR sheeting production will be increased, and the roof tile production machine will be updated. The Bulawayo factory is also receiving a sizable investment with the goal of producing New Tech fibre cement sheeting, primarily for the export market.

the evolving artificial intelligence continuing to cast its shadow on the traditional brick-and-mortar banking system, people's preferences are rapidly shifting towards digital banking, due to its conve- nience, accessibility, and ease of use. In this article, we analyse how NMB Bank Limit- ed's remarkable surge in digital banking transac- tions in 2022 is a testament to the Group's forward-thinking approach and dedication to implementing cutting-edge measures. The expo- nential growth of their digital banking platform reflects the Group's keenness to stay ahead of the curve and remain competitive in the financial sector. Financial summaries NMB Bank Limited reported a total comprehen- sive income of ZWL 12.54 billion, a 62% increase from ZWL 7.7 billion the previous year. The bank's operating costs rose by 57%, its loan book grew by 40% to ZWL 46.3 billion. One of the most noteworthy achievements of the bank is the significant increase in digital banking transactions, which grew by a massive 216% and reached over ZWL 400 billion compared to the previous year, as a result, the profit skyrocketed by almost double as shown by the following bub- bles NMB Bank Limited's CBVAS unit contributed ZWL 9.6 billion towards a diversified income stream. The bank's assets rose to ZWL 135.3 billion, and the shareholders approved an off-mar- ket share buyback worth ZWL 206 million. The bank's financial strength is also indicated by its NPL ratio of 1.09%, liquidity ratio of 50%, and capital adequacy ratio of 25.29%. The bank’s move into digital banking NMB maintained the momentum in its digital banking offerings by registering a phenomenal I n today's rapidly evolving world, the bank- ing sector is undergoing a significant trans- formation through digitalization. With the NMB Bank Limited Sees 216% Surge in Digital Transactions in 2022 central banks have implemented policies to promote digital activities and financial inclusion, making it easier for people to access banking facilities. In turn, this encourages digital innova- tion among financial institutions and induces increased competition in the market. Banks in Africa are increasingly integrating modern digital features such as mobile money, e-wallets, remittance services, and QR codes to offer a comprehensive range of services to their customers. In addition to these features, banks are also using biometric authentication, big data, and artificial intelligence (AI) to enable frictionless experiences for their customers. One of the main implications of this integration is improved access to financial services for indi- viduals who previously lacked access to tradition- al banking services. With digital services, banking has become more convenient and accessible, which could lead to an increase in customer loyalty. Furthermore, by using biometric authentication and AI, banks can enhance security and reduce fraud, providing customers with economic confi- dence. Digital services could also reduce the need for physical branches, which could lead to cost savings for banks. The use of big data and AI could help banks analyze customer behaviour and offer personalized services and products which would ultimately result in a better customer expe- rience. Overall, the integration of digital features could lead to increased financial inclusion, improved customer experience, and better opera- tional efficiency for banks in Africa. In conclusion, the rise of digital banking for NMB in 2022 is a highlight of the significant paradigm shift and higher adoption of digital transaction platforms. As the sector recovers from its past challenges, where up to 2021 the banking sector was the worst performing sector, the group must keep pace with the technological progress to remain relevant and to offer adequate financial services to the various Zimbabwean communities. With initiatives like trotted on digital innovation, NMB Bank Limited has a clear potential of being a market leader, equipping the bank to better serve customers in the region. The bank's success in 2022 further highlights the importance of embracing digital technology, making it worthwhile for other banks in Zimba- bwe to follow in its footsteps. Therefore, it's a crucial lesson for the banking industry that banks can transform and disrupt their operations if they are willing to take bold steps towards digitization. 216% increase in digital transactions in 2022. The change reflected the bank's strategy to target customers in different demographic segments, adapting to their modern-day banking needs. With no physical infrastructure restrictions to hold its customers back, the bank focused on specific products and services to keep up with regional and international counterparts. The NMB Bank Limited's success is due to its willingness to embrace new technologies such as Mobile banking, digital payments, internet bank- ing, social media, and fintech solutions. The bank has positioned itself as a pioneer in digital bank- ing in Zimbabwe, and its recent achievement demonstrates the appetite for digital banking that has been growing in the African market. The notable spike in digital banking transactions for NMB Bank Limited points to the changing business landscape in Zimbabwe. The changes taking place demand financial institutions to be agile and willing to take a bold approach to attain a competitive edge. At the same time, the bank's efforts to innovate are driven by its ability to adapt to evolving customer needs, thus keeping pace with the market dynamics. Globally, banks have been upgrading their digital platforms to offer quick, easy, and seamless trans- actions. According to a report by Capgemini, the global digital banking industry is predicted to achieve an annual compound growth rate (CAGR) of 8.6%, with its size reaching USD 3.3 trillion by 2026. Zimbabwe is no exception to this trend, with the local market expected to grow exponen- tially in the coming years, making it a highly sought-after investment destination. In this context, NMB Bank Limited's digital growth is not only commendable but also reflects the bank's commitment to remaining at the fore- front of innovation. The bank's chief executive, Benefit Washaya, revealed during a press confer- ence that the bank is pursuing efforts to scale up its digital capabilities further. The bank aims to leverage innovative technologies to continue driv- ing growth, improve the customer experience, and enhance the overall quality of banking services. The importance of digital banking is clear in Zimbabwe, especially in a country where 11.3 million people now own mobile phones, this pres- ents an ideal entry point for the bank into the digital market. Additionally, the bank's partnership with various tech firms has enabled it to expand its digital offerings and reach more customers, thus deepening its local and regional footprint. The digital banking surge is not limited to Zimba- bwe alone, as the trend has impacted several other African economies positively. Many African 17 The AXiS LXX Friday 07 Apr 2023 Over-dependence on coal imports - Zimba- bweimports coal from South Africa and Mozambique to feed its thermal plants. This expos- es it to supply chain risks and currency volatili- ty. Domestic renewable energy will improve energy security.Environmental impact - Coal-fired plants produce greenhouse gas emis- sions, pollution and toxic waste which harmsto the environment. By shifting to clean energy like solar and wind, Zimbabwe can significantly reduce its carbon footprint. Potential for job creation - The renewable energy industry is more labor-intensive, creating many new jobs in manufacturing, construction and maintenance. This can help address Zimba- bwe's high unemployment. The coal sector employs fewer people.Growing energy demand - Zimbabwe's electricity demand is increasing by over 3% per year. Renewable energy pro- vides an opportunity to rapidly scale up genera- tion capacity in a modular and decentralized manner to support economic growth. Fossil fuels are non-renewable - Zimbabwe's coal reserves may only last for 20-30 more years. Renewable energy sources are unlimited and indigenous, ensuring long-term energy sus- tainability. Regional potential - The Southern African region has abundant solar and wind resources. Zimbabwe can position itself as a leader in the region's renewable energy market by building scale and skills. It can also benefit from low-cost manufacturing. Over 60% of Zimba- bwe's electricity is from coal. The country aims to reduce thermal power to 50% by 2030. Zimbabwe could potentially install over 6,000 MW of solar and 2,000 MW of wind capacity according to estimates. The average solar and wind project in Zimbabwe costs $1.2 million per MW to develop compared to $2.5 million per MW for coal. Zimbabwe spends over $400 million per year on coal imports for power generation. In com- parison, fuel sources for solar and wind power are freely available domestically.The global renew- able energy market and jobs in the sector are growing at over 10% per year. Zimba- bwe is well positioned to tap into this trend and create new employment op- portunities.At least 4 of Zimbabwe's major coal-fired plants will reach the end of their 30-40 year lifetimes by 2030, highlighting the need for alternative energy invest- ments. Zimbabwe has an aver- age of over 2,800 hours of sunlight per year and average wind speeds of over 8 m/s in some regions, providing ample re- newable resource. The world is shifting from thermal pro- duction to renewable energy due to a combina- tion of environmental, economic, geopolitical, and social factors. This shift is likely to contin- ue as renewable energy becomes increasingly cost-effective and as more people and business- es demand sustainable and environmentally friendly products and services.In summary, Hwange Units 7 and 8 will definetly reduce power blackouts and positively push peak demand requirements however Zimbabwe has compelling economic, environmental and social reasons to shift away from coal towards renew- able energy like solar and wind power. A diver- sified energy mix with a greater role for renew- able sources is the future for Zimbabwe's sus- tainable growth and prosperity.

inflation-adjusted terms, up by 180% from $17.8 billion the prior year. The bank's net interest income increased from $27.9 billion in 2021 to $62.2 billion in infla- tion-adjusted terms. This growth was largely attributable to the boast in the average lending book's boost from $31 billion to $160 billion as a result of the writing of new lending assets and the purchase of new financial investments. Net fee and commission income for the Bank increased from $25 billion in 2021 to $36.1 billion, a 44% jump. This was primarily caused by the addition of new customers and an increase in the number of transactions on our digital plat- forms. The institution closed the year with a qualifying core capital of $83.5 billion, up from the prior year's $11 billion. The amount, which equals USD 124.4 million, exceeds the required regulato- ry minimum. The level of foreign currency transactions had increased as the year concluded, shifting from transactions mostly being handled in local curren- cy to foreign currency, as was the situation with other banks like First Capital Bank. This pattern is anticipated to continue in the financial year 2023, and with First Capital Bank declaring its intention to join the Victoria Falls Stock Exchange, it is unclear whether other banks will be enticed to do the same as the need for foreign capital grows in the banking sector. The impact of the continued depreciation of the Zimbabwean dollar against the US dollar on foreign-denominated expenses, such as franchise fees, IT license fees, cash importation and repatri Despite the challenging economic landscape, Stanbic Bank thrived in the 2022 financial year posting a profit of $49.9 billion in Since the 2019 fiscal year, First Mutual Properties, formerly known as Pearl Prop- erties Limited and a part of First Mutual First Mutual Properties Net Property Income Dips by 76% Stanbic Bank Bottomline Soars by 180% for FY’22 erties to cater for the Small and Medium Enter- prises (SMEs) sector. Further, the retail, industrial and residential sectors enjoyed relatively huge activity during the 2022 financial year. In contrast, commercial property transactions were low due to huge investment requirements. Limited commercial property developments seen during the period under review have largely been self-funded, and are being used as a hedge against currency and inflation risks as well as possible future rental increases. The industry grappled with the “twin evils” of rising defaults on lease obligations and construc- tion cost inflation. Management continues to closely manage these risks given their potentially huge impact on the company’s strategy. The Group’s inflation-adjusted Net Property Income after administration expenses was ZWL140.5 million (FY 2021: ZWL589.4 million) despite a 42% growth in inflation-adjusted reve- nue to ZWL2.9 billion (FY 2021: ZWL2.0 billion). Holdings, has grown at a compound annual growth rate (CAGR) of 11.82%. The firm's infla- tion-adjusted Net Property Income after adminis- tration costs fell to ZWL140.5 million in 2022 from ZWL589.4 million in 2021. This is due to expenses rising by 112% while revenue increased by only 42% to ZWL2.9 billion. Repricing of rentals and a respectably high occu- pancy rate of 85.5% were the main drivers of the increase in income. At the conclusion of the year, the ratio of foreign to local currency rentals was 70% to 30%. As a result, the Company has been able to protect its value from risks associated with foreign exchange and inflation while also develop- ing the capacity to finance its ongoing capital and growth expenditure initiatives with its own resources. The country's contractionary policies were a major factor in the collections declining to 72% from 82% the previous year. A total of ZWL528 million was spent on building maintenance as the company worked to keep its buildings safe and lettable. The total indicative share trading liquidity for First Mutual Properties Limited (FMP.zw) in the past 12 months, as of 4th March 2023, was US$160.73K (ZWL103.65M). An average of US$13.39K (ZWL8.64M) per month. First Mutual Properties has a significant property portfolio, comprising some 117 250 square metres of lettable space made up of office parks, retail shops, and commercial and industrial property. It owns and manages 41 buildings in the major eco- nomic hubs of Zimbabwe, including high-rise commercial buildings, industrial and warehouse properties and retail outlets. First Mutual Proper- ties also has a residential trading stock of twoand three-bedroomed garden flats in Avondale, Harare. The property market fundamentals were mixed during the 2022 financial year. The leasing market for commercial space was the most active segment, with buoyant activity in the retail and industrial sectors. However, the office segment was subdued because of the need by people to re-adjust their newly-formed working habits of “working from home” to “back to the office”. The CBD office experienced the highest vacancy rates forcing most owners to re-model their prop customers must wait before getting new cards. Several initiatives were put into place, such as sector-specific training sessions for clients, which allowed the Bank to respond to the changing needs which came of clients. The impressive results by Stanbic Bank followed an equally impressive performance by the institu- tion's parent company, Standard Bank Group, which reported total assets of R2.9 trillion (rough- ly USD170 billion) during the comparable period to December 2022 while its market capitalization was R284 billion. Standard Bank Group is Africa's largest banking group by assets (USD17 billion). During the financial year that concluded on December 31, 2022. The Standard Bank Group reported headline earnings of R34.2 billion (USD2 billion), an increase of 37% from the previous year. ation charges, and insurance, led to the bank's total operating expenses closing the year at $47.7 billion, up by 57% from $30.5 billion in 2021. The Bank's customer deposit base increased from $315 billion in 2021 to $363.3 billion in real terms, principally due to growth in our local currency deposits by the expansion in the money supply, new client acquisitions, and the effect of the sustained depreciation of the Zimbabwean dollar against the Greenbank on the bank’s depos- its denominated in other currencies. Stanbic launched brand-new, innovative products in 2022 as the bank continued its digitization journey to enhance the client experience in a more difficult operating environment. The innova- tions included the WhatsApp platform, a digital onboarding solution and an instant ATM card ordering system.The Instant VISA Debit FCA Gold card has drastically cut down on the time 18 The AXiS LXX Friday 07 Apr 2023 employs fewer people.Growing energy demand - Zimbabwe's electricity demand is increasing by over 3% per year. Renewable energy pro- vides an opportunity to rapidly scale up genera- tion capacity in a modular and decentralized manner to support economic growth. Fossil fuels are non-renewable - Zimbabwe's coal reserves may only last for 20-30 more years. Renewable energy sources are unlimited and indigenous, ensuring long-term energy sus- tainability. Regional potential - The Southern African region has abundant solar and wind resources. Zimbabwe can position itself as a leader in the region's renewable energy market by building scale and skills. It can also benefit from low-cost manufacturing. Over 60% of Zimba- bwe's electricity is from coal. The country aims to reduce thermal power to 50% by 2030. Zimbabwe could potentially install over 6,000 MW of solar and 2,000 MW of wind capacity according to estimates. The average solar and wind project in Zimbabwe costs $1.2 million per MW to develop compared to $2.5 million per MW for coal. Zimbabwe spends over $400 million per year on coal imports for power generation. In com- parison, fuel sources for solar and wind power are freely available domestically.The global renew- able energy market and jobs in the sector are growing at over 10% per year. Zimba- bwe is well positioned to tap into this trend and create new employment op- portunities.At least 4 of Zimbabwe's major coal-fired plants will reach the end of their 30-40 year lifetimes by 2030, highlighting the need for alternative energy invest- ments. Zimbabwe has an aver- age of over 2,800 hours of sunlight per year and average wind speeds of over 8 m/s in some regions, providing ample re- newable resource. The world is shifting from thermal pro- duction to renewable energy due to a combina- tion of environmental, economic, geopolitical, and social factors. This shift is likely to contin- ue as renewable energy becomes increasingly cost-effective and as more people and business- es demand sustainable and environmentally friendly products and services.In summary, Hwange Units 7 and 8 will definetly reduce power blackouts and positively push peak demand requirements however Zimbabwe has compelling economic, environmental and social reasons to shift away from coal towards renew- able energy like solar and wind power. A diver- sified energy mix with a greater role for renew- able sources is the future for Zimbabwe's sus- tainable growth and prosperity.

E mbattled diversified ZSE-listed Group, Bridgefort Capital Limited has capped the full year ended 31 December 2022 with a A Year Capped by Tremendous Losses capital investments. Diversification is one of the best ways to increase profitability. However, if the capital is strained, there is a need to concentrate the funds available on the limited sectors that are viable. The Group should also capitalise more on its foreign markets. This will aid it to offset exchange losses due to the rapid depreciation of the Zimbabwe dollar. In its latest financial results, Axia Limited offset the exchange losses with its export trade to record a profit. Costs incurred in the export market pay more than costs in local investments where uncertainty is high. De-listing on the Zimbabwe Stock Exchange and listing on the US Dollar denominated bourse, Vic- toria Falls Stock Exchange is another option the Group has to keep and find value for its share- holders. Several benefits may flow from listing as companies will be able to raise capital in hard currency. In addition, potential issuers can use different securities to raise capital, that is, debt, equity, Depository Receipts, ETF and REIT units. VFEX has the merit of keeping value for inves- tors though currently, it is suffering from a liquid- ity crisis. These are the strategies that need to be done at the managerial level. Managers and directors are employed to navigate ways to sail through dire economic environments. Despite woes from the operating environment and management strategies, Bridgefort is further being crippled by legacy debts amounting to ZAR9.8 million. In 2022, the Group received payments from the Reserve Bank for legacy debts of ZAR3 million, which provided some much-needed relief for MedTech and its suppliers. When pending payments are secured too, that will bring relief to the Group. The country further experienced recurrent power supplies throughout the year which dampened performance. High-interest rates curtailed consum- er purchasing behaviour as they soured the appe- tite for borrowing in Zimbabwe dollars. date, the Group’s share price has declined from 1760 cents to 920 cents. The Class A Portfolio, which is the flagship asset of the Group recorded a sales volume decline of 48% for January and February 2023 as compared to 2022, signifying a grounded fiscal year carpeted by pessimism. The Group has a market capitalisation of ZWL110.5 million. The Group rebranded from MedTech Holdings as it repositioned itself to become private equity. By becoming an equity firm, it was seeking to attract additional funding for its operations. The Group lastly tasted the nectar of profits in 2020, courtesy of the COVID-19 pandemic which spiked the demand for pharmaceutical products. However, post the COVID-19 pandemic, the industry has been hostile to the Group recording loss after loss with another full-year loss already looming. The Group paired losses for FY2021 and FY2022 respectively while FY2023 com- menced with a dampened performance. “The operating environment has deteriorated and becomes more unpredictable since the year-end with doing business becoming more difficult,” the Group said in a statement accompanying the FY2022 results. It is cognisant that the Group is operating in a turmoil economic environment where consumer spending is dampened by record interest rates and a tight monetary policy which is reducing ZWL liquidity and recurrent. The Group further grieved the continued reduction of fair value on shares listed on the ZSE. However, the same economic environment in which the Bridgefort is operating in is the same various profit-making small cap and medium cap companies are operating. For the group, there is a need for a strong cost-cutting strategy, especially production and distribution costs. The Group should minimise costs by producing what accommodates the demand. Secondly, the Group should further reconsider offloading a stake to investors so that it concen- trates on core business and reduces strains on a tremendous loss after widening the after-tax loss to ZWL1.4 billion from ZWL2 million in the prior year. The total comprehensive loss was almost entirely made up of fair value losses due to the reduction in the real values of the class A and B shares on the Zimbabwe Stock Exchange (ZSE). The Group’s share price on ZSE, year to date has depreciated by 91% signifying the woes it is facing on the Zimbabwe Stock Exchange includ- ing tough regulations implemented last year and lack of value keeping. The Class A portfolio primarily includes 50.1% of Zvemvura Trading (Private) Limited, trading as MedTech Distribution, and Chicago Cosmetics (Private) Limited, a 51% subsidiary of MedTech Distribution while the Class B portfolio comprises an effective 50.1% of the land registered in the name of MedTech Distribution which was last valued at USD200,000. The Group operates in three market segments: fast-moving consumer goods (FMCG), medical supplies and manufacturing of light industrial products. The FMCG division manufactures and markets personal care products, and the medical division produces pharmaceutical products for wholesale distribution to retail pharmacies. It also supplies products for laboratories and services for education and healthcare institutions. MedTech has local retail outlets with a manufac- turing plant that produces petroleum jelly and glycerin, health, beauty and personal hygiene products and over-the-counter pharmaceutical products for the local Zimbabwe market as well as for export to Mozambique and Zambia through its subsidiary Baines Imaging Group. Besides capping the year with a great loss of over 1000%, the Group further started its new fiscal year in 2023 with dampened demand which is a concerning start to the year. Since April 2022 to Bridgefort Capital 19 The AXiS LXX Friday 07 Apr 2023 ' ' Term of The Week Initial Public Offering Understanding the term An IPO basically marks the point at which a company becomes a publicly-traded en�ty. When a company goes public, it issues new shares, which are sold to the public, and the proceeds of the sale go to the company. In turn, shareholders are given ownership in the company, and can par�cipate in profit-making opportuni- �es. Once a company is publicly traded, its shares can be bought and sold on the stock exchange or over-the-counter market. Going public through an IPO is a significant and usually highly regulated event that marks the transi�on of a company from a private en�ty to a public one. In the Zimbabwean capital markets, the process of IPOs is regulated by the Secu- ri�es and Exchange Commission of Zimbabwe (SECZ), which oversees the lis�ng requirements of companies that want to go public. An IPO is used by companies as a way to raise capital, gain greater exposure, and increase their credibility. For investors, an IPO presents an opportunity to own a small piece of a company that is expected to grow and possibly yield future profits An IPO, or Ini�al Public Offering, is a process by which a private company offers its shares to the public for the first �me. In an IPO, new shares of a company are issued and sold to ins�tu�onal investors, retail investors, and the general public, allowing the company to raise capital while providing investors the opportunity to own shares in the company.

send a satellite into space back in 1998. In 2018, Kenya launched its first experimental nano-satellite from the International Space Station. As of 2022, at least 13 African countries had manufactured 48 satellites, according to Space in Africa, a Nigeria-based firm that tracks African space programmes. Although more than 50 African satellites have been launched as of November 2022, none of them was launched from African soil. Furthermore, the Djibouti government announced a memorandum of understanding with a Hong Kong-based company in January to build a $1 billion commercial spaceport, which is expected to take five years to complete. This move highlights the growing interest of Afri- can nations in scientific innovation and the development of their space programmes.- Kenyan Wallstreet IMF chief calls on central banks to continue inflation fight Central banks around the world should keep battling inflation by hiking interest rates despite ongoing concerns about financial stability, the head of the International Monetary Fund told AFP on Thursday. Since last year, central banks have been raising their benchmark lending rates to tackle inflation, which rose to levels not seen for decades in many countries including the United States. But their fight has been complicated by the recent collapse of Silicon Valley Bank after taking on too much interest-rate risk, setting off a period of turbulence in the banking sector on both sides of the Atlantic. “We don’t envisage, at this point, central banks stepping back from fighting inflation,” IMF man- aging director Kristalina Georgieva said in an interview ahead of the fund’s spring meeting next week. “They have to stay the course in a much more difficult, more complex environment,” she said. The biggest casualty so far has been Swiss bank- ing giant Credit Suisse, which was pushed by reg- ulators to merge with regional rival UBS on con- cerns about its long-term financial health. But Georgieva said: “Central banks still have to prioritize fighting inflation and then supporting, through different instruments, financial stability.” US-China tensions weigh on growth Georgieva added that US-China trade tensions — part of a broader realignment of the global econo- my — was also having a detrimental impact on world growth. While there has been a long period in which decisions on production were guided by costs, “this is no more,” she said. -The Guardian Nigeria Samsung to cut chip production after profits plunge 96% The world's largest chip producer said sales had dropped sharply due to a slow global economy and less demand after the pandemic. Samsung said preliminary numbers showed operating profits fell 600 billion won ($455m; £366m) in Janu- ary-March, from 14 trillion won the previous year. The firm's shares jumped more than 4% on the news it would slow chip-making. "We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured," the South Korean tech giant said. Demand for memory chips ramped up during Covid-induced lockdowns as consumers bought new electronics to use at home. The industry is now recovering from a chip short- age over the past couple of years, but many semi- conductor manufacturers are struggling to find a balance between their inventories and current demand. "When the overall economy slowed down, sud- denly the demand for these end products slowed. So, the makers of these end products stopped ordering chips and focused on selling through the inventory they already had," said analyst Peter Hanbury from management consultancy Bain & Company. World Bank offers Sh52bn for 25,000 free Wi-Fi hotspots Kenya’s plan to set up 25,000 free Wi-Fi hotspots has received a boost after the World Bank Group agreed to offer Sh52 billion ($390 million) for the project in an effort to cut internet costs by 60 per- cent. The disbursement is expected to finance the first phase of the project known as the Kenya Digital Economy Acceleration Project, which seeks to expand access to high-speed internet, improve the quality of education and digitise government services. The 25,000 Wi-Fi hotspots will be set up across the country to provide internet services to innovators, youth and entrepreneurs. Cheap and fast internet can bridge the digital divide, offering more access to jobs, trade, educa- tion, and social inclusion. But few companies lay fibre connections in poor neighbourhoods. Most people in the country connect through their phones using 3G or 4G data bundles, whose prices thwart access to the internet for the poor. The average cost of a megabyte stood at Sh4.59 in December, and the entry of the State could trigger a fall in internet prices offered by firms such as Safaricom and Zuku. Managers of the State project reckon the free Wi-Fi hotspots will slash prices by up to 60 percent and boost access to high-speed internet or availability to 100 per- cent. “Broadening access to digital technologies and services is a cross-cutting pathway to accelerate economic growth and job creation, improve service delivery and build resilience,” said Keith Hansen, World Bank Country Director for Kenya, Rwanda, Somalia and Uganda. Kenya has sought to promote itself as a tech hub for Africa, attract- ing giants like Microsoft, Amazon and GoogleBusinessDaily Toyota to launch 10 new battery EV models by 2026, executive says Toyota Motor Corp aims to introduce 10 new battery electric vehicle models by 2026, a senior executive said on Friday, as the Japanese automak- er looks to catch up in electric vehicles. Toyota will also set up a new, specialised unit to focus on battery EVs and is targeting annual pro- duction of 1.5 million battery-powered cars by 2026, Hiroki Nakajima, the company’s chief tech- nology officer, said at a briefing. The increase would mark a sharp upturn from Toyota’s current levels of electric vehicles. The automaker, the world’s largest by sales, has pushed back against criticism it has been too slow to embrace battery-powered vehicles. Toyota argues that a mix of options - including gaso- line-electric hybrids, makes more sense for its global customer base.- CNBC Kenya Set to Launch its First Operational Satellite on April 10th Kenya is set to launch its inaugural operational satellite on April 10th, a significant milestone in its space program. The launch of Taifa-1, also known as Nation-1, is planned using the SpaceX Falcon 9 rocket, which will take off from the Vandenberg Space Force Base in California. In a joint statement, the defence ministry and Kenya Space Agency emphasized the significance of the observation satellite launch, stating that it is an important milestone and will contribute significantly to the country’s budding space econo- my. The satellite, which was fully designed and devel- oped by Kenyan engineers, will provide valuable data on agriculture and food security, among other areas. The statement also noted that the testing and manufacturing of the parts were done in collaboration with a Bulgarian aerospace manufac- turer. Despite being an East African economic power- house, Kenya is currently facing its worst drought in decades after five failed rain seasons. The launch of the observation satellite is expected to boost the country’s scientific innovation and the development of its space programmes. It is worth noting that Egypt was the first African country to "This led to a strong 'bullwhip' effect for semiconductor makers further back in the supply chain, where sky-high demand during the chip shortage suddenly dried up", he added. Samsung, the world's biggest maker of televi- sions, tablets and smartphones, had resisted the move to cut memory chip production compared to its competitors. Analysts say the company's announcement of a production cut is rare. Last month, it announced plans to invest 300 trillion won over 20 years to develop a mega semiconductor hub in South Korea. "Samsung faces a double whammy of DRAM and NAND [memory chips] losing money and needing to update the process technology their [factories] use due to falling behind over the last couple of years," said Dylan Patel, chief analyst at SemiAnalysis.- BBC Singapore imports of Russian naphtha surge as EU ban shifts flows Singapore's imports of Russian naphtha nearly tripled in the first quarter of 2023, government data showed, after the European Union banned oil products imports from Russia. The Asia oil hub imported 741,000 tonnes of Russian naphtha in the period, accounting for about 23% of Singapore's total imports of the refined product, a Reuters calculation based on Enterprise Singapore data showed. This jumped from about 261,000 tonnes imported in the fourth quarter last year, the data showed. The EU banned imports of Russian oil products from Feb. 5 and the Group of Seven Nations, EU and Australia imposed a $45 cap on Rus- sian naphtha trade using western ships and insurance. The limitations, which have changed global oil trade flows, are aimed at curbing Moscow's revenues, while allowing Russian supplies to stay in the market and keep world oil prices low. The EU banned imports of Russian oil products from Feb. 5 and the Group of Seven Nations, EU and Australia imposed a $45 cap on Rus- sian naphtha trade using western ships and insurance. The limitations, which have changed global oil trade flows, are aimed at curbing Moscow's revenues, while allowing Russian supplies to stay in the market and keep world oil prices low. -Reuters Climate-hit Barbados says it has a plan to overhaul World Bank and IMF While conflict and inflation will dominate World Bank spring meetings next week, cam- paigners are pushing for a redesign of global financial architecture to help countries cope with climate change. Experts say developing nations are struggling to find the funds needed to stop burning plan- et-heating fossil fuels and prepare for tomor- row's climate disasters, as they grapple with rising costs, soaring debts and extreme weather events.The question is what to do about it, amid international tensions driven by Russia's invasion of Ukraine and trade tussles between the US and China. Enter Barbados Prime Minister Mia Mottley. "We believe that we have a plan," the head of the Caribbean island nation, threatened by storms and sea level rise, told world leaders at the COP27 climate summit in Egypt in Novem- ber. Known as the Bridgetown Initiative, the ideas she laid out include using the International Monetary Fund to turn "billions to trillions" in investments to cut carbon pollution, as well as a tax on fossil fuel profits to cushion the eco- nomic blows of climate impacts. While the proposals are still being debated, they have gained traction among the large economies that hold sway over the World Bank and IMF, raising hopes of action in the coming months.The World Bank is under particular pressure, in the wake of the resignation of chief David Malpass amid questions over his stance on climate change.- France24 Business Around The World 20 The AXiS LXX Friday 07 Apr 2023

“The reckless military confrontational hysteria of the US and its followers against the DPRK is driving the situation on the Korean peninsula to an irreversible catastrophe … to the brink of a nuclear war,” the article said. It was using the acronym of North Korea’s official name, the Democratic People’s Republic of Korea. US and South Korean forces have been conduct- ing a series of annual springtime exercises since March, including air and sea drills involving a US aircraft carrier and B-1B and B-52bombers, and their first large-scale amphibious landing drills in five years. The commentary singled out the air carrier’s par- ticipation as aimed at stoking confrontation, saying Pyongyang will respond to the drills by exercising its war deterrence through “offensive action”. “The drills have turned the Korean peninsula into a huge powder magazine which can be detonated any moment,” it added.North Korea has reacted furiously to the exercises, calling them a rehearsal for invasion. It has been ramping up its military activity in recent weeks, unveiling new, smaller nuclear warheads, firing an intercontinental ballis- tic missile capable of striking anywhere in the US and testing what it called a nuclear-capable under- water attack drone. South Korean and US nuclear envoys condemned those tests and warned the North will pay the price for its provocations, Seoul’s foreign ministry said in a statement following their meeting in Seoul on Thursday. The envoys also agreed to step up efforts to stem the North’s illegal cyber activities including theft of virtual currencies and hacking, it added. -Reu- ters Israel bombs Lebanon and Gaza as Netanya- hu promises enemies 'will pay' Israeli military struck targets located in southern Lebanon and the Gaza Strip as its Prime Minister says it will 'extract a heavy price from our ene- mies'. The country blames Hamas militants for rocket attacks on Israel. Israel's military hit sites in Lebanon and Gaza early on Friday, in retaliation for rocket attacks it blamed on the Islamist group Hamas, as tensions following police raids this week on the Al-Aqsa mosque in Jerusalem threatened to spiral out of control. Loud blasts rocked different areas of Gaza, as Israel said its jets hit targets including tunnels and weapons manufacturing sites of Hamas, which controls the blockaded southern coastal strip, as well as a heavy machine gun used for anti-aircraft fire. As daybreak neared, the military said it had also struck Hamas targets in southern Lebanon, where residents around the area of the Rashidiyeh refu- gee camp reported three loud blasts. Two Leba- nese security sources said the strike hit a small structure on farmland near the area from which the rockets had been launched earlier. They had no reports of casualties. The strikes came in response to rocket attacks from Lebanon towards northern Israeli areas, which Israeli officials blamed on Hamas. The mil- itary said 34 rockets were launched from Lebanon, of which 25 were intercepted by air defence sys- tems. It was the biggest such attack since 2006, when Israel fought a war with the heavily armed Hezbollah movement. "Israel's response, tonight and later, will exact a significant price from our enemies," Prime Minis- ter Benjamin Netanyahu said following a security cabinet meeting. As the Israeli jets struck in Gaza, salvoes of rock- ets were fired in response and sirens sounded in Israeli towns and cities in bordering areas, howev- er there were no reports of serious casualties. The crossborder strikes came amid an escalating confrontation over Israeli police raids at the Al-Aqsa mosque compound in Jerusalem during the Muslim holy month of Ramadan, which this year coincides with the Jewish Passover holiday. -France24 Thousands flee into Thailand amid renewed Myanmar fighting Thousands of people have fled across the border to Thailand amid fierce fighting between Myan- mar’s armed rebel groups and the military, accord- ing to Thai officials. Myanmar was plunged into turmoil when the mili- tary seized power from the elected government of Aung San Suu Kyi in February 2021, leading to mass protests and an armed uprising. Thai officials said the fighting near the border was concentrated near the town of Myawaddy in southern Karen state, also known as Kayin, bor- dering Thailand’s Tak province. “Around 3,998 people have fled into Thailand’s temporary shelter” across 10 areas, Tak provincial officials said in a statement, adding that the situa- tion was being closely monitored. Thailand’s Kha- osod English newspaper and BBC Burmese said fighting flared after an attack on a border guard post by armed fighters from the Karen National Liberation Army, an ethnic armed group. “Many people crossed the border since yesterday and some are still also waiting on the Myanmar side to cross. People don’t have enough drinking water or any toilets for now,” a charity worker, who asked not to be named, told the Reuters news agency. Since the coup, some ethnic armed groups such as the KNLA, which have been fighting the armed forces for decades, have joined forces with anti-coup groups to try and force the generals from power. Myanmar’s military has used lethal force against its opponents, killing some 3,212 people according to the Assistance Association for Political Prisoners and jailing more than 17,000.-Aljazeera Top Al-Qaeda figure killed in Yemen air strike: sources A senior Al-Qaeda figure was killed in a suspect- ed US air strike in war-torn Yemen, security and local government sources told AFP on Wednesday. Hamad bin Hamoud al-Tamimi, a top leader of Al-Qaeda in the Arabian Peninsula (AQAP), which Washington regards as among the global jihadist network’s most dangerous branches, died in the strike along with a bodyguard, a security official said, requesting anonymity. The air strike, targeting a house in the northern province of Marib that al-Tamimi had recently rented, was “apparently American”, the official said. A Marib government official, also speaking anon- ymously, confirmed the deaths. Tamimi, a Saudi also known as Abdel Aziz al-Adnani, headed up AQAP’s leadership council and acted as the mili- tant group’s “judge”, the sources said. The “president of the consultative council and judge, known as Abdel Aziz al-Adnani, was killed with a Yemeni bodyguard”, the Marib official said. AQAP, and rival militants loyal to the Islamic State group, have thrived in the chaos of Yemen’s civil war, which pits the Saudi-backed government against Iran-allied Huthi rebels. AQAP has carried out operations against both the Huthis and government forces as well as sporadic attacks abroad. Its leaders have been targeted by a US drone war for more than two decades, although the number of strikes has dropped off in recent years. The attack comes a month after three alleged AQAP militants were killed in a suspected US drone strike on a car in Marib province. Yemen has been wracked by conflict since 2015 when a Saudi-led coalition intervened to back the government after the Huthis seized control of the capital Sanaa. The conflict has since killed tens of thousands of people and triggered what the United Nations terms the world’s worst humanitarian crisis, with millions of people displaced.-France24 China sanctions Taiwan’s de facto US ambas- sador over Tsai trip China has announced sanctions against Taiwan’s de facto ambassador to the United States and sev- eral organisations including the Ronald Reagan Presidential Library following Taiwanese President Tsai Ing-wen’s high-profile visit to the US. Hsiao Bi-khim and her family members will be barred from entering the Chinese mainland, Hong Kong and Macau, and companies connected to Hsiao will not be allowed to work with mainland organisations and individuals, China’s Taiwan Affairs Office said on Friday. Beijing announced the sanctions after Tsai, whose Democratic Progressive Party supports a distinct Taiwanese identity separate from mainland China, met with Speaker of the US House of Representa- tives Kevin McCarthy in California, prompting condemnation from Beijing. China’s Ministry of Foreign Affairs also announced sanctions against the California-based Reagan library and the Washington-based Hudson Institute, barring Chinese institutions from contact- ing or cooperating with either institution. The Reagan library hosted the talks between Tsai and McCarthy, while the Hudson Institute, a con- servative think tank, presented the Taiwanese leader with a leadership award. China claims self-governed Taiwan as part of its territory and has threatened to reunify the island with the mainland by force if necessary. Beijing imposed sanctions on Hsiao and several other Taiwanese officials in August after former US House Speaker Nancy Pelosi visited the island. Taiwan has forged closer ties with the US under Tsai amid growing fears of a Chinese invasion, although Washington, like most governments, does not officially recognise it as a country.- Aljazeera Protests turn ugly in France as striker num- bers dwindle Protesters disrupted car traffic at Paris' main airport and police fired clouds of tear gas in other French cities as people marched in a new round of strikes and nationwide demonstrations on Thursday seeking to get President Emmanuel Macron to scrap pension reforms Macron’s plans to raise the national retirement age from 62 to 64 has sparked a months-long firestorm of public outrage. The Interior Ministry on Thursday deployed some 11,500 police officers nationwide, including 4,200 in Paris, to try to avert more of the clashes and moments of vandalism that have marred previous protests. In Paris, rat catchers hurled rodent cadavers at City Hall on Wednesday in one of the more mem- orable illustrations of how Macron's plans to raise the national retirement age is fuelling anger on the streets. Elsewhere, largely peaceful crowds marched behind unions’ colored flags and banners in Mar- seille on the Mediterranean coast, Bordeaux in the southwest, Lyon in the southeast and other cities. In the western city of Nantes, rumbling tractors joined the parade of marchers and thick clouds of police tear gas were deployed against demonstra- tors. The use of police tear was also reported in Lyon and the Brittany city of Rennes.-Euronews North Korea says US-S Korea drills push tension to ‘brink of nuclear war’ North Korea accused the US and South Korea of escalating tensions to the brink of nuclear war through their joint military drills, vowing to respond with “offensive action,” state media KCNA reported on Thursday. KCNA released a commentary by Choe Ju Hyon, whom it called an international security analyst, criticising the exercises as “a trigger for driving the situation on the Korean peninsula to the point of explosion.” Politics Around The World 21 The AXiS LXX Friday 07 Apr 2023

Markets watch T ZWL1760 against a single greenback, almost dou- bling the formal market rate. On the latest auction market held on the 4th of April 2023, the Zimbabwe dollar traded at ZWL944.7133 from ZWL928.5887 during the prior week, a 2% weekly decline. The latest boom of the Zimbabwe dollar on the parallel market, almost doubling that of the formal market has widened the premium by 46%, eroding the consumers’ hard-earned currency at a faster rate. This reduces consumer purchasing power which ultimately affects corporates through curtailed sales volumes.The rapid depreciation of the local currency and a flourishing black market presents a headache for exporters who relinquish their 25% of the Zimbabwe dollar to the RBZ using the auction market rate yet suppliers quote the parallel market rate when selling raw materials. This inflates production costs and dampens pro- ductivity as corporates are getting almost half of the value, they surrender to RBZ and pay more to suppliers who use the PMR. The Zimbabwe dollar is suffering from a confi- dence crisis. There is a huge confidence deficit in both the embattled currency and the monetary gaffers. Policy inconsistencies from RBZ and the finance ministry are leading the ailing currency to a grave. For example, continued flourishment of the PMR signifies high demand for the US dollar and this is relative to the high liquidity of ZWL currency in the market, despite RBZ vowing to maintain a consistently tight quarterly reserve money target. RBZ is not sleeping and pumping money into the market. Another aggressive policy is taking 25% of exporters’ foreign currency in exchange for worth- less notes. Instead of taking foreign currency to exporters, RBZ should promote export-oriented productivity in the economy, where they can pay incentives to foreign currency earners, especially farmers and entrepreneurs. The failure of the Mosi a Tunya gold coins to resolve the currency crisis was primarily due to half-baked policymaking and a confidence deficit in the Zimbabwe dollar. The gold coins are elitist as they are highly accessed by the business moguls and politicians who earn more than ZWL1 million against the commoners who earn less than ZWL500 thousand. On the 4th of April 2023, the gold coin was valued at ZWL2.1 million and no commoner isearning thus far. To restore currency stability, there is a need to build sound economic funda- mentals that support productivity and exports. he embattled Zimbabwe dollar crossed the 1700 benchmark during the week under review on the parallel market rate to The Zimbabwe dollar has failed and it will continue failing. As the election period nears, more Zimbabwe dollars will be poured into the market to fund government suppliers, thus, causing more traffic on the US dollars. Govern- ment should consider dollarisation to instil stability and confidence in the economy. Regional Markets Rand firms anchored by high repo rates South African Rand firmed to 17.8 against the greenback, its highest in seven weeks after South Africa's central bank raised its main lending rate by a higher-than-expected 50 bps to 7.75% citing upside risks to the inflation outlook. The decision surprised markets that expected a smaller 25 bps increase and pushed borrowing costs to the highest since May 2009. The South African Reserve Bank has now raised rates for the ninth time in a row, adding a total of 425 bps to the repo rate since it began tightening policy in November 2021 to tame inflation. At the same time, the South African rand has been benefiting from a weaker dollar on grow- ing expectations that the US Federal Reserve will pause interest rate hikes in May and follow with rate cuts soon after that due to the finan- cial turmoil. Naira further slips amid disappoint- ing stats from PMI Currency for Africa’s biggest economy, Naira slipped further to 460.1 on the formal market on the 6th of April 2023 amid another disap- pointing performance from Nigeria’s PMI. The Stanbic IBTC Bank Nigeria PMI slipped further to 42.3 in March of 2023, from 44.7 in the prior month, the second consecutive con- traction in private sector business conditions in over two years. Output and new orders fell more quickly than in February, while staffing levels and purchasing activity were scaled back again, amid the ongoing cash crisis. Meanwhile, suppliers' delivery times shortened in March, following the first lengthening in more than five years during February. On the price front, input costs and output prices contin- ued to rise sharply, but rates of inflation soft- ened. Shilling continues record worst per- formances Currency for the East African economic giant, Kenyan Shilling crashed for the 63rd consecutive time on the formal to hit record 133.4 against the greenback amid rapid shortages of the greenback and political unrests. However, the Stanbic Bank Kenya PMI rose to 49.2 in March 2023 from 46.6 in the prior month, indicating a slight deterioration in busi- ness conditions and the second monthly contrac- tion in a row. Output and new orders fell for the second month, but the rates of decline eased from February, as demand remained subdued amid rising prices and cash flow problems. Data shows the latest contractions in output and sales were primarily on wholesale and retail companies, while manufacturing, agriculture, construction and services recorded expansions. Meanwhile, employment and purchases increased slightly. On the price front, overall cost inflation remained among the highest seen since the survey began in January 2014, on weaker cur- rency, leading firms to raise their output prices at the quickest rate in five months. Kwacha appreciates to 19.9 Africa’s one of the largest copper producer, Zambia saw its currency finding a breather after appreciating to 19.9 against the greenback after a possible debt restructuring deal between Lusaka and Washington. In the recently ended Global Democratic Summit, United States President, Joe Biden promised to help Zambia in its debt restructuring process. However, the Stanbic Bank Zambia PMI fell to 46.9 in March 2023 from an over one-year high of 51.3 in the previous month. The latest read- ing pointed to a renewed decline in the coun- try's private sector activity that was the most pronounced since September 2020. Renewed falls in output and new orders were recorded, amid widespread reports of money shortages, price pressures and lower customer numbers. Subsequently, firms scaled back employment and purchasing activity. In terms of prices, purchase costs rose at the joint-fastest pace since November 2015, mainly attributed to the weakness of the kwacha against the US dollar and higher fuel costs. Meanwhile, the rate of output charge inflation was the sec- ond-fastest in 20 months, despite easing from February. Pula settles at 13.1 The Pula settled at 13.1 against the greenback on the 6th of April 2023. The Botswana Pula is expected to trade at 13.38 by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Historically, the Botswana Pula reached an all-time high of 13.59 in October of 2022. Flourishing Black Market Rate Surpasses 1700 Mark The AXiS LXX Friday 07 Apr 2023 22

The AXiS LXX Friday 07 Apr 2023 ZSE WEEKLY COMMENTARY In the 5-days to Thursday 06 April 2023, the ZSE recorded a recovery from a negative trajectory record- ed last week. The negative trajectory was stimulated by profit-taking sell-offs which weighed on demand, and the streak has been halted on the back of speculations of a continued rise in money supply follow- ing the increase in public sector wage bill along with a further relaxation of the contractionary monetary policy measures. These have the effect to drive up inflation and exchange rate depreciation, which has seen a rise in demand for safe-haven asset classes. The mainstream ZSE All Share Index surged by 1.09% in the week to close at 38375.64 points. Gains were driven by improved demand for market heavies, with the ZSE Top 10 index notching 0.2% while medium caps went up by 4.23%, outweighing the -4.32% dip in penny stocks. On the downside, the month of April has opened on a negative note, having succumbed to a nominal loss of -0.5% since the beginning of the month. Overall year-to-date nominal gains were scaled up to 96.86%, which trans- lates to 43% in US$ terms as the ZSE remains the best performing bourse in Africa on a year-to-date return basis. Meanwhile, African Sun has delisted from ZSE as it seeks to list on VFEX. On the US$ denominated bourse, VFEX, the All Share Index dipped by a further -0.85% to close at 91.26 points, extending year-to-date losses to -4%. An aggregate of US$559,792 exchanged hands on VFEX in the week under review, up from US$532,991 traded in the prior week. Meanwhile, West Prop- erties Company is scheduled to list on VFEX this month, becoming the first company to list through a fresh issue of shares on the bourse. Following the announcement of an increase in the public sector wage bill, along with the further relax- ation of the contractionary monetary policy measures, the exchange rate has gone haywire on the parallel market, while maintaining a slow movement on the formal currency market, which has widened the pre- mium between the 2 to over 70%. The ZWL shed off -1.78% of its value against the greenback in the week under review to close at ZWL$945.9365 on the sole legal currency market (interbank). On the Re- uters Auction market, the local unit depreciated by -1.7% against the US$ to settle at ZWL$944.713 at the close of the most recent currency auction trading week. ZSE ASI ZWL INTERBANK ZSE ASI 37,720.92 37,962.05 38,568.48 38,180.00 38,306.84 38,349.31 1.67% VFEX ASI 95.17 92.04 92.04 91.58 91.32 91.27 -4.10% ZSE MEDIUM CAP 76,148.77 75,726.76 75,307.75 76,227.10 76,743.63 77,322.65 1.54% ZSE TOP 10 22,323.61 22,543.87 23,081.98 22,687.54 22,738.07 22,721.02 1.78% ZWL INTERBANK 928.5887 929.1243 929.8618 932.4874 936.1228 944.7133 -1.71% ZSE SMALL CAP 697,921.97 697,921.97 697,921.97 697,715.23 697,715.23 667,752.24 -4.32% 24

expected to remain in a tight range in the coming week. Copper (US$/t) Copper prices saw a slight decrease during the week, albeit with positive economic data from China, the world's largest consumer of the metal. The volatility in copper prices was driven by data showing that China's economy grew by 6.5% in the first quarter of 2023, beating market expectations. The positive data raised hopes for increased demand for copper, which is widely used in infrastructure and construction projects. Looking ahead to the coming week, copper prices are expected to remain stable or see a slight increase, with any positive news regarding the global economic recovery providing support. How- ever, any negative news regarding the ongoing pan- demic or a stronger US dollar could limit price gains. Overall, copper prices are expected to remain volatile in the coming week. Aluminium (US$/t) Aluminium prices remained relatively stable during the week of 31 March 2023 to 06 April 2023. The stabili- ty in aluminium prices was due to a combination of factors, including ongoing supply constraints due to production disruptions in China and concerns over the global economic recovery. Looking ahead to the coming week, aluminium prices are expected to remain stable, with a slight possibility of a moderate increase. Any positive news regarding the global economic recovery and increased demand from the automotive and construction sectors could provide support for aluminium prices. However, any negative news regarding the ongoing pandemic or a stronger US dollar could limit price gains. Nickel (US$/t) Nickel prices experienced a moderate decline during the week of 31 March 2023 to 06 April 2023, due to weaker demand from the stainless steel sector. The decline in nickel prices was driven by a slowdown in demand from the stainless steel sector, which accounts for a significant portion of nickel consumption. The sector has been hit by rising production costs and weaker demand due to the ongoing pandemic. Furthermore, the rise in COVID-19 cases in several countries, particularly in Asia, has raised concerns over the demand for nickel in the short term. China, the world's largest consumer of nickel, has been hit by a surge in cases, leading to restrictions on econom- ic activity. Looking ahead to the coming week, nickel prices are expected to remain under pressure, with any negative news regarding the global economic recovery and the ongoing pandemic providing further downside risk. Brent/Oil (US$/b) Oil prices recovered some ground in choppy trading as investors looked to pocket profits from two straight days of gains, and as markets debated supply tight- ness. Worries of tightness after an unexpected draw in U.S. oil stockpiles and a halt to some Iraqi Kurdistan oil exports were partially offset by a smaller-than-ex- pected output cut in Russia. Brent Crude Oil Spot Price is at a current level of US$84 a surge of 6.52%% from the previous week, but -1.71% YTD. We predict that Brent crude oil prices will rebound in the short term, returning to US$85-US$90 levels as the post-pandemic era moves forward. Weekly Commodity Pulse Gold (US$/oz) Gold prices saw a slight increase during the week under review, buoyed by a weaker US dollar and growing concerns over inflation. Spot gold prices rose to US$2,022 an ounce on Monday and by Thursday the yellow metal was trading at US$2,032. The US dollar index, which measures the value of the US dollar against a basket of major currencies, fell to a three-week low on Tuesday, boosting gold prices. Investors turned to gold as a safe haven asset amid concerns about rising inflation and uncertainty in the global economic landscape. Looking ahead to the coming week, gold prices are expected to remain steady or see a slight increase. We will be keeping a close eye on any announcements from the Federal Reserve regarding interest rates and their stance on inflation. If the Fed indicates that they are considering raising interest rates to combat inflation, this could put downward pressure on gold prices. Platinum (US$/oz) Platinum prices remained relatively stable during the week. On Monday, 31 March, platinum was trading at $996 per ounce and ended the week at $1,015 per ounce. The stability in platinum prices was due to a combination of factors. On one hand, strong demand from the automotive industry, which accounts for nearly half of all platinum consumption, supported prices. On the other hand, concerns over a slowdown in the global economy due to the ongoing conflict limited price gains. Looking ahead to the coming week, platinum prices are expected to remain stable, with a slight possibility of a slight increase. The con- tinued strong demand from the automotive industry, coupled with supply constraints due to ongoing production disruptions in South Africa, could provide- support for platinum prices. However, any negative news regarding the global economy or a stronger US dollar could limit price gains. Overall, platinum is The AXiS LXX Friday 07 Apr 2023 25 380.7 81.67 380.7 81.67 380.7 81.67 380.7 81.35 380.7 81.35 1,826.00 Daily % Change 30-Mar-23 1,980 31-Mar-23 1,969 3-Apr-23 1,984 4-Apr-23 2,022 5-Apr-23 2,021 6-Apr-23 2,032 WoW 2.61% YTD 11.28% 1,700 1,750 1,800 1,850 1,900 1,950 2,000 2,050 6-Mar-23 12-Mar-23 18-Mar-23 24-Mar-23 30-Mar-23 5-Apr-23 1,082.90 Daily % Change 30-Mar-23 1,002 31-Mar-23 1,003 3-Apr-23 996 4-Apr-23 1,029 5-Apr-23 1,007 6-Apr-23 1,015 WoW 1.23% YTD -6.29% 850 875 900 925 950 975 1,000 1,025 1,050 6-Mar-23 12-Mar-23 18-Mar-23 24-Mar-23 30-Mar-23 5-Apr-23 8,372.00 Daily 30-Mar-23 9,001 31-Mar-23 8,993 3-Apr-23 8,917 4-Apr-23 8,751 5-Apr-23 8,782 6-Apr-23 8,843 WoW -1.76% YTD 5.63% 8,300 8,500 8,700 8,900 9,100 9,300 9,500 6-Mar-23 12-Mar-23 18-Mar-23 24-Mar-23 30-Mar-23 5-Apr-23 30,048 Daily % Change 30-Mar-23 23,199 31-Mar-23 23,838 3-Apr-23 23,372 4-Apr-23 23,124 5-Apr-23 22,706 6-Apr-23 22,468 WoW -3.15% YTD -25.23% 20,000 22,000 24,000 26,000 6-Mar-23 12-Mar-23 18-Mar-23 24-Mar-23 30-Mar-23 5-Apr-23 - Daily % Change 30-Mar-23 79 31-Mar-23 80 3-Apr-23 85 4-Apr-23 85 5-Apr-23 85 6-Apr-23 84 WoW 6.52% YTD #DIV/0! 77.0 79.0 81.0 83.0 85.0 87.0 29-Mar-23 21-Mar-23 13-Mar-23 2,378 Daily % Change 30-Mar-23 2,386 31-Mar-23 2,413 3-Apr-23 2,398 4-Apr-23 2,371 5-Apr-23 2,334 6-Apr-23 2,347 WoW -1.63% YTD -1.30% 2,000 2,100 2,200 2,300 2,400 2,500 2,600 6-Mar-23 12-Mar-23 18-Mar-23 24-Mar-23 30-Mar-23 5-Apr-23

FINANCIAL MARKETS AT A GLANCE 2023 ZSE All Share Index ZSE Top 10 Index ZSE Small Cap Index Interbank Market Rate 7960.96 0.04% JSE All Share Index BSE All Share Index LuSE All Share Index NGSE All Share Index TOP 5 WEEKLY RISERS TOP 5 WEEKLY FALLERS AFDIS ARISTON BAT CFI DELTA DAIRIBORD HIPPO Bridgefort MEIKLES OK SEEDCO STAR AFRICA TSL Tanganda 31668.89 992.2 327935.41 58880 83000 10000 63549.36 920.53 32505 6542.53 21690.17 170.33 11142.86 35000 30000 1040 327935.41 58880 83055.17 9800 62588.7 920.53 32500 6695.06 21739.82 151.84 10000 31500 Latest Price ZWL Cents Previous Week ZWL Cents EDGARS NTS RTG TRUWORTHS 2600 1400 1350 246.43 2550 1400 1700 310.5 Ecocash ECONET ZIMPAPERS 6662.18 23545.6 600 7000 26741.91 600 MASHHOLD FMP 1400 1499.17 1500 1632.35 ARTZDR LAFARGE PROPLASTICS TURNALL Willdale RioZim 2960 14375 10000 600 352.89 20531.15 2900 14375 9500 700.69 390.86 20531.15 First Capital Bank CBZ FBCH FIDELITY FML GBFS NMBZ ZBFH ZHL 3342.78 19546.88 12000 3000 2050 2300 6006.97 10652.5 1070.53 3195.82 19100 9846.55 3000 2000 2300 5300 10000 1200 Latest Price ZWL Cents Consumer Consumer Staples Previous Week ZWL Cents Latest Price ZWL Cents Materials Sector Previous Week ZWL Cents Latest Price ZWL Cents Financial Sector Previous Week ZWL Cents TRUWORTHS RTG FBCH NMBZ STAR AFRICA 310.5 1700 12000 6006.97 170.33 64.07 350 2153.45 706.97 17.81 TURNALL ZHL FMP MASHHOLD SEEDCO 600 1070.53 1499.17 1400 21690.17 -100.69 -129.47 -140.83 -100 -1309.83 26% 26% 22% 13% 12% -14% -11% -9% -7% -5.7% COUNTER PRICE CENTS CHANGE Latest Price ZWL Cents ICT Sector Previous Week ZWL Cents Latest Price ZWL Cents Real Estate Sector Previous Week ZWL Cents 945.9365 -1.7% 667752.24 -4.32% 22587.87 0.2% 38375.64 1.1% 76656.44 -0.06% COUNTER PRICE CENTS CHANGE % CHANGE % CHANGE 53018.97 -2.56% 7922.17 1.07% 53018.97 38375.64 NGSEAll Share Index NGSE All Share index WOW -2.6% MOM -3.5% YTD 3.5% 76656.44 38375.64 JSE All Share Index JSE All Share index WOW -0.1% MOM -0.4% YTD 5% 38375.64 23727.28 ZSE MaterialsIndex All Share index ZSE MaterialsIndex WOW 1% MOM 28% YTD 74% 38375.64 51872.67 ZSE Consumer StaplesIndex All Share index ZSE Consumers Staplesindex WOW 1.7% MOM 46% YTD 112% 38375.64 78928.41 ZSE MediumCap Index All Share index Medium Cap index WOW 4.2% MOM 30% YTD 115% 38375.… 667752.24 ZSE Small Cap Index All Share index Small Cap index WOW -4.3% MOM 7% YTD 47.7% 38375.64 77028.81 ZSE Consumer Discre�onary Index All Share index ZSE Consumer Discre�onary index WOW 16.4% MOM 15% YTD 117% 38375.64 37350.32 ZSE ICT Index All Share index ZSE ICT Index WOW -4.7% MOM 20% YTD 113% -6.5% 37% Interbank Market Interbank All Share index 7922.17 38375.64 LUSE All Share Index LUSE All Share index WOW 1.1% MOM 9.3% YTD 8% 7960.96 38375.64 BSE All Share Index BSE All Share index WOW 0.1% MOM 1.5% YTD 3% 38375.64 23251.34 ZSE Real Estate Index All Share index ZSE Real Estate Index WOW -3.7% MOM 14% YTD 31% 38375.64 44223.7 ZSE IndustrialsIndex (New) All Share index ZSE IndustrialsIndex (new) WOW 2.4% MOM 29% YTD 108% 38375.64 43862.91 ZSE Financials Sector All Share index ZSE Financials index WOW 6.7% MOM 39% YTD 53% 38375.64 22587.87 ZSE Top 10 Index All Share index ZSE Top10 index WOW 0.2% MOM 35% YTD

Regional Economic Watch rate which the revenue services said will make it difficult to achieve collection targets for the year ahead. The Treasury is targeting revenue collection of R1.787 trillion for the fiscal year to the end of next March. Mozambique The Monetary Policy Committee of the Bank of Mozambique (CPMO), meeting in Maputo on Wednesday, decided to leave the Bank’s benchmark interest rate, the Monetary Policy Rate (MIMO), unchanged, at 17.25 per cent. A statement from the CPMO said this decision is based on maintaining the prospects for annual inflation of less than ten per cent, despite the worsening of some of the risks associated with projections for inflation, such as natural disasters and increased pressure on public expenditure. The risks and uncertainties that underlie inflation projections have worsened, the CPMO says. “Domestically, there stand out uncertainties with regard to the impact of the recent climate shocks on the prices of goods and services in the short term”, the statement warned. “Externally, there stand out uncertainties about the effects of the volatility on the global financial markets, and the continuation of the conflict between Russia and Ukraine”. The CPMO noted that annual inflation rose from 9.78 per cent in January to 10.3 per cent in February, largely reflecting the increase in food prices due to natural disasters. But underlying inflation (excluding the prices of fruit and vegetables, and administered prices) “remains stable”. The CPMO is thus optimistic that annual inflation will fall to below ten per cent, thanks to the central bank’s policy measures, exchange rate stability, and the trend to reduced commodity prices on the world market. Economic growth is expected to be slower than initially forecast, due to the impact of the recent natural disasters. The one exception to this slowdown is the natural gas projects in the Rovuma Basin in the far north. The CPMO noted that the country’s domestic debt has continued to grow and stood at 301.3 billion meticais (about 4.7 billion US dollars, at the current exchange rate). This was an increase of 26.1 billion meticais in comparison with December 2022. South Africa 1)South African manufacturing activity contracted again in March as rotational power cuts led to a deterioration in local business conditions, a survey showed on Monday. The seasonally-adjusted Absa Purchasing Managers’ Index (PMI) fell to 48.1 points in March from 48.8 points in February, staying below the 50-point mark that separates expansion from contraction for the second consecutive month. “Domestic demand seems to be struggling, with some comments referring to local demand faltering due to load-shedding (power cuts),” Absa said in a statement. State power utility Eskom has implemented power cuts every day this year that sometimes last for up to 10 hours, after a record number of days with outages last year. However, Absa said the respondents in its survey are more optimistic about business conditions going forward. “Following a sharp deterioration in February, the index tracking expected business conditions in six months’ time rose to 55.5 from 46.8 in February. This means that purchasing managers generally expect conditions to look better later this year,” Absa said. 2) South Africa collected R1.686trillion (US$94.79.1bn) in tax revenue for the fiscal year that ended on March 31, falling just shy of the government’s R1.692 trillion (US$100.1bn) estimate in the 2023 budget, data from the revenue services showed on Monday. The South African Revenue Service (Sars) said while mining volumes had decreased in the last year, higher commodity prices contributed significantly to improved tax receipts. The main sources of revenue collection came from personal income tax at 35.7%, value-added tax at 25% and company income tax at 20.6%. The finance sector was by far the biggest contributor to tax revenues at 33.9%. SARS said ongoing power cuts have had a “debilitating” effect on the economy and revenue collection, as it estimated that the outages contribute to potential tax revenue loss of R60 billion (US$3.36bn) per annum at a minimum. The South African Reserve Bank said on Thursday that it expected the domestic economy to grow by just 0.2% this year, a The AXiS LXX Friday 07 Apr 2023 27